Manulife Financial Investor Sentiment Index reveals financial concerns and priorities for 2012
- Investor confidence improved by five points in Q4 2011.
- Debt reduction is the top finance-related New Year's resolution for 2012.
- Six out of 10 Canadians are optimistic about their financial future.
WATERLOO- As we begin a new year, results from Manulife Financial's latest quarterly Investor Sentiment Index (ISI) showed an increase of five points - indicating that Canadians' confidence in their investment options began to improve in late 2011.
This increased optimism was driven by enhanced confidence in a number of vehicles including: fixed income products (+10), balanced funds (+7) and investment property (+6). Fixed income investments such as bonds, GIC's and income funds saw the sharpest increase in investor confidence (up 10 points over the last quarter). Out of the six different investment categories reviewed, only confidence in cash investments decreased this quarter (-3).
Canadians are clearly feeling it is a good time to invest in Tax Free Savings Accounts, RRSP's and mutual funds with confidence increasing by 11, eight, and five points respectively.
"As 2011 came to a close, Canadians were clearly finding reasons to be more optimistic about their investment options," noted Paul Rooney, President and CEO of Manulife Canada. "A five point increase in investor confidence will not turn things around overnight, but it is a positive sign we ended the year moving in the right direction."
2012 Financial Concerns and Priorities Focus on
Household Debt
While Canadians are feeling more optimistic
about their investment options, one in five noted they are
most concerned about managing their debt. Another 16%
are worried about saving for retirement. Canadians are
also troubled by the possibility that their investments
will decrease (13%) while others fret that they may not
have enough money if they become disabled
(12%). Another 11% of Canadians listed job security as
their top financial concern for 2012.
To address these concerns, over a quarter of Canadians have made reducing household debt (mortgages, credit cards and other non-mortgage debts) their top finance-related New Year's resolution. A total of 14% made trimming household budgets their goal for 2012 while another 12% resolved to save more for retirement. Only 6% planned to do something big like buy/sell a home.
Canadians Optimistic About their Financial
Futures
Looking longer down the road, the ISI revealed
that six out of 10 Canadians believe they will be in a
better financial position five years from now. The
index noted that this optimism was most felt by 92% of
Canadians between 18 and 29 years old and trended downward
with age.
Key Findings for Q4
- The Manulife Investor Sentiment Index rose five points to +26 from September, 2011 and six points from December of 2010.
- This increase was driven by improved confidence in a number of vehicles including fixed income products, balanced funds, and real estate.
- While confidence in stocks saw some improvement, they still remain in a negative position (-5, up from -9 in Q3 2011).
- Confidence in fixed income saw the sharpest increase for investment vehicles (+23, up from +13 in Q3 2011).
- Canadians showed less confidence in cash investments (+19, down from +22 in Q3 2011).
- Investors' confidence in Tax Free Savings Accounts increased (+66, up from +55 in Q3 2011) and confidence in RRSP's increased (+56, up from +48 in Q3 2011).
For more information on the Manulife Financial Investor Sentiment Index, including further details on the issues of most concern to Canadian investors, visit .
About the Manulife Financial Investor Sentiment
Index
For 12 years Manulife Financial's Investor
Sentiment Index has been measuring Canadian's opinions
about whether it's a good time or bad time to invest in
different asset classes and investment vehicles. This
index is based on a phone survey of 1,000 Canadians aged 18
and older between December 6 and December 11,
2011. Conducted by Research House, an Environics
Company, the survey has a margin of error of +/- 3.1, 19
times out of 20.
About Manulife Financial
Manulife Financial is a leading Canada-based
financial services group operating in 21 countries and
territories worldwide. In 2012, we celebrate 125 years of
providing clients strong, reliable, trustworthy and
forward-thinking solutions for their most 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 provide asset
management services to institutional customers worldwide as
well as reinsurance solutions, specializing in property and
casualty retrocession. Funds under management by Manulife
Financial and its subsidiaries were C$492 billion (US$473
billion) as at September 30, 2011. The Company operates as
Manulife Financial in Canada and Asia and primarily as John
Hancock in the United States.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at .
Media contact:
Tracy Van Kalsbeek
Public Relations Consultant, Manulife
Financial Canadian Division
519-747-7000 ext. 248601
tracy_vankalsbeek@manulife.com
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