WATERLOO, ON, July 23, 2002 – Canadians say they are playing it
safer
with their savings this summer as they shift toward more
conservative
investment vehicles, according to a national poll conducted for
Manulife
Financial, among Canada’s leading insurance and wealth management
companies.
The 14th regular quarterly poll for Manulife, conducted in
mid-June,
recorded a slight increase in investor sentiment with more Canadians
showing
higher interest in fixed income investments, cash and balanced
funds, compared
to three months earlier. Three of 10 categories in the survey gained
ground,
while another four showed marginal declines from the last previous
poll in
mid-March.
“Our latest survey suggests slightly more Canadians are leaning
toward
traditionally ‘safer’ places for their money, particularly in light
of even
more recent market events reflecting corporate governance cases
affecting
equity markets,” said Bruce Gordon, Manulife’s Executive Vice
President of
Canadian Operations. “But the positive gain in the overall Manulife
Investor
Sentiment Index could bode well for investors taking a
‘portfolio-approach’
over the long term.”
Mr. Gordon said the latest survey, initially launched three
years ago,
reflects recent concerns raised by cases such as Enron and WorldCom,
despite
considerable strength in the overall North American economy.
“Manulife offers
a wide range of financial services and products to more than 3.5
million
Canadians and the Index helps us gauge what Canadians are generally
saying
about where they favour investing in the economy.”
Fixed income, cash, balanced funds show gains
The overall Summer 2002 Manulife Investor Sentiment Index, based
on a
mid-June survey of 1,002 Canadians by Thompson Lightstone &
Company, climbed
two points to +23. The quarterly index monitors what Canadians say
they feel
about 10 different investment categories and vehicles. The index
reflects the
percentage of those surveyed who say they believe it is a good or
very good
time to invest — minus the percentage who say it is a bad or very
bad time.
“At times like these, investors need to work closely with their
advisors,
who can help them assess their needs and plan for long-term goals —
including
a review of their guaranteed versus variable products,” Mr. Gordon
said.
Double-digit increase for fixed income, stability to RRSPs,
RESPs,
segregated funds
Among six investment categories in the survey, indices climbed
for fixed
investments, cash and balanced funds. Among investment vehicles,
RESPs, RRSPs
and segregated funds generally held their ground. After soaring near
record
highs earlier this year, investing in real estate (including their
own home
mortgages, renovations and investment properties) eased slightly,
while stocks
and mutual fund indices reflected uncertainties in equity markets.
Highlights
The Manulife Investor Sentiment Index is determined by the
following six
investment categories:
- Investing in their own homes (either renovations or mortgages)
remains
the most popular investment for Canadians. Traditionally the
favourite
of six investment categories, investing in their own home
eased five
points (after climbing 17 points in mid-March) to +53 in June.
The
index reflects 66 per cent of those surveyed who said it’s a
good
or very good time to invest in their homes, minus the 13 per
cent
who believe it’s a bad or very bad time. - Real estate other than their own homes was the next most
popular
investment, but decreased by six points to +37, partly
reflecting
current trends in mortgage interest rates.
- Balanced funds climbed three points to +24 in June. Almost
half
(45 per cent) of those surveyed said balanced funds are a good
or very good place to invest, compared to 21 per cent who felt
the opposite.
- Fixed income investments (including GICs, annuities) rose
sharply
by 15 points to +18 in June, reflecting recent increases in
interest
rates. - Concerns about stock markets after the Sept. 11, 2001
terrorist attacks
drove the index for equity holdings into negative territory
for the
first time last September, but it had rebounded 14 points to
-4 in
December and back into positive territory in March, at +4. It
remained
at +3 in June. A third (33 per cent) of those surveyed in
mid-June
considered it a good time to invest in stocks, either directly
or
via mutual funds, while 30 per cent said they still view
equities
as a bad choice. Some 22 per cent felt it was neither a good
nor bad
time to buy stocks. - Cash (including savings accounts) also jumped sharply by nine
points,
but remained among the weakest destinations for investors. The
index
for cash registered at +3, reflecting 39 per cent who said
it’s a good
or very good time to have money in cash, compared to 36 per
cent
leaning the opposite direction.
Investment Vehicles
As well as evaluating the six investment categories above, the
same
question was asked of four investment vehicles.
- Registered Retirement Savings Plans remained the traditionally
most
popular investment vehicle by easing only one point from the
previous
survey. The index of +53 for RRSPs reflects 67 per cent of
respondents
who feel it’s a good or very good time to put money into RRSPs
while
14 per cent said it was a bad time in mid-June. - Interest climbed slightly in Registered Education Savings
Plans, which
rivalled RRSPs in popularity in December for the first time in
three
years. The index for RESPs rose one point in June, to +45,
from three
months earlier. - Following a strong rebound in March, mutual funds registered
the
largest decline in consumer interest in June, easing seven
points.
While year-over-year mutual fund sales were down sharply in
June,
the index for mutual funds now stands at +23. Some 45 per cent
of
those surveyed said it was a good or very good time to invest
in
mutual funds, while 22 per cent said it was a bad or very bad
time
to invest their money in mutual funds. - Segregated funds registered a marginal decline of one point in
its
index, to +15, with 40 per cent of those surveyed saying it’s
a good
time to invest in segregated funds compared to 25 per cent
stating
the opposite.
The poll by Thompson Lightstone was conducted with 1,002
Canadians aged
18 and older between June 13 and June 20, 2002. The results have a
margin of
error of +/- three per cent, 19 times out of 20.
To view the Manulife Investor Sentiment Index – Summer 2002,
please
visit: http://files.newswire.ca/16/Investor_Sentiment.doc
About Manulife Financial
Manulife Financial is a leading Canadian-based financial
services group
operating in 15 countries and territories worldwide. Through its
extensive
network of employees, agents and distribution partners, Manulife
Financial
offers clients a diverse range of financial protection products and
wealth
management services. Funds under management by Manulife Financial
were
Cdn$146.7 billion as at March 31, 2002.
Manulife Financial Corporation trades as “MFC” on the TSX, NYSE
and PSE,
and under “0945” on the SEHK. Manulife Financial can be found on the
Internet
at www.manulife.com.
