TSX/NYSE/PSE: MFC
SEHK:945
WATERLOO, ON, Feb. 3, 2015 /CNW/ - Over one-third of Canadians polled
say it is a good time to invest in cash according to a recent Manulife
Investor Sentiment Index (ISI). By contrast, investors across the
border don't agree, *six in ten say cash is a bad investment right now
but feel confident about investing in stocks. The ISI is a semi-annual
measure of investors' views on a range of asset classes and savings and
investment vehicles, as well as their confidence in these areas.
"It's really interesting that over one-third of Canadians in both the
affluent (34 per cent) and general population (37 per cent) segments
see cash as a good investment, because consecutive ISI surveys
conducted in the U.S. show cash is viewed as the worst investment - 60
per cent don't think it's a good time to hold on to cash," said Megan
Greene, Chief Economist, Manulife Asset Management. "Before oil prices
dropped, Canadians were getting out of the market and saving cash - a
non-traditional investment product. These numbers show that some
Canadians don't see cash as a high risk investment because they feel
it's more secure and readily available."
A different story in the U.S.
ISI Survey findings show that Canadian and American investors (affluent
segment) have different views on cash and stocks as good investments
right now. Over four in ten Canadian investors polled identified that
it is a good time to invest in stocks, ranking cash just 10 per cent
less than stocks. By contrast, six in ten investors in the U.S. say it
is a good time to invest in stocks but only 13 per cent say it's a good
time to save cash. Both ISI surveys were conducted in the fall of 2014
before oil prices dropped.
**Canada vs. the U.S. - Good time to invest
Canadian investors
|
American investors
|
-
Own home - 72 per cent
-
Balanced Mutual Funds - 55 per cent
-
Real Estate - 48 per cent
-
Stocks - 44 per cent
-
Fixed Income Investments - 35
-
Cash (savings accounts) - 34 per cent
|
-
Own home - 68 per cent
-
Stocks - 60 per cent
-
Balanced Mutual Funds - 58 per cent
-
Real Estate - 56 per cent
-
Bonds - 22 per cent
-
Cash (CDs, MMAs)- 13 per cent
|
Canadian investors think cash is king (general population)
Top priority to invest in over the next 12 months
-
Home - 24 per cent
-
Cash - 23 per cent
-
TFSA - 18 per cent
-
RRSP - 16 per cent
Why Canadians see cash as a top priority
-
20 per cent - funds are readily available
-
19 per cent - habit/my only investment/all I can afford
-
11 per cent - secure/no risk
*fall 2014 John Hancock Investor Sentiment Index
|
**Affluent populations
|
|
Gen population - household financial decision-makers aged 25+
|
|
Affluent population - household financial decision-makers aged 25+, with
a household income of $75,000+ and investable assets of $100,000
|
About the Manulife Investor Sentiment Index
The Manulife Investor Sentiment Index is a semi-annual measure of
investors' views on a range of asset classes and savings and investment
vehicles, as well as their confidence in these areas. This year marks
the sixteenth year that Manulife has conducted the survey. The index is
based on an online survey of 1,000 Canadians aged 25+ that was
conducted between November 15-29, 2014 by Research House, an Environics
Company.
About Manulife
Manulife is a leading Canada-based financial services group with
principal operations in Asia, Canada and the United States. We operate
as John Hancock in the U.S. and as Manulife in other parts of the
world. We provide strong, reliable, trustworthy and forward-thinking
solutions for our customers' significant financial decisions. Our
international network of employees, agents and distribution partners
offers financial protection and wealth management products and services
to millions of clients. We also provide asset management services to
institutional customers. Funds under management by Manulife and its
subsidiaries were approximately C$663 billion (US$591 billion) as at
September 30, 2014.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com
SOURCE Manulife Financial Corporation
Image with caption: "Manulife Investor Sentiment Index: Investor Trends Canada vs. the U.S. (CNW Group/Manulife Financial Corporation)". Image available at: http://photos.newswire.ca/images/download/20150203_C9634_PHOTO_EN_43364.jpg