Affluent Canadians are staying close to their homeland when it comes to their investment decisions, and could be missing opportunities in emerging markets, a new survey by HSBC Bank Canada shows.

In a recent national study on travel and investment trends, HSBC found that 74 per cent of affluent Canadians, or those with at least C$100,000 ($96,000) in investible assets, concentrate their investments within the country. Meanwhile, 55 per cent listed the US as their second favorite investment market. At the other end of the scale, only 8 per cent of survey respondents’ investments were in emerging markets. This is despite the fact that 62 per cent say they place a premium on having a diversified portfolio. HSBC says that a lack of familiarity may be one of the key hurdles to investing in emerging markets, with 71 per cent indicating they need to feel well-informed about a market before they invest.

"The survey results demonstrate that emerging markets represent an untapped opportunity among this Canadian demographic. By 2050, we predict that the GDP of emerging economies will have increased five-fold, and that 19 of the world's top 30 economies will be found in emerging markets. When you look carefully, you see that some of the world's most attractive investments are found beyond our borders," said Margaret Willis, executive vice president, head of retail banking and wealth management at HSBC Canada.

Meanwhile, affluent Canadians are also staying close to home while on their travels, with 78 per cent saying they most frequently visited the US. In the past three years, 73 per cent of the country's affluent have spent two months or less outside Canada while only one-tenth have spent four months or more abroad. Montrealers were the most traveled of all, averaging 2.4 months over three years outside of Canada, whereas affluent Vancouverites were the least, averaging 1.8 months. The most visited cities were London, 15 per cent; Paris, 12 per cent; New York, 9 per cent; Las Vegas, 8 per cent; and Rome, 7 per cent.

The survey was conducted online in October 2011 alongside Angus Reid Public Opinion among a representative sample of 1,031 affluent Canadians.