Manulife Investor Sentiment Index shows more Canadians
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FOR IMMEDIATE RELEASE
October 16, 2003
TSX/NYSE/PSE: MFC; SEHK: 0945


Manulife Investor Sentiment Index shows more Canadians
feeling confident in stock markets, mutual funds

Waterloo, Ontario (October 16, 2003) - Renewed stability in equity markets is helping to bolster confidence in stocks and mutual funds, according to a recent national poll for Manulife Financial, among Canada’s leading insurance and wealth management companies.

The 19th quarterly Manulife Investor Sentiment Index, based on a national survey conducted in late September and early October, found more Canadians were regaining optimism about investing in stocks and mutual funds, while real estate remained their favourite investment destination.

It’s the second straight quarter that stocks and mutual funds gained support, reflecting a recent return to stronger sales for the overall fund industry. The latest survey shows slightly more confidence in stocks, mutual funds and balanced funds, among five areas that gained ground among 10 investment categories and vehicles tracked in the regular poll for the Manulife Investor Sentiment Index. The overall index climbed slightly to +16 in the latest survey, up one point from +15 in June.

“The latest survey suggests more Canadians are seeing positive developments in the equity and fund markets and see them as part of their long-term investment goals,” said Bruce Gordon, Manulife Financial’s Executive Vice President and General Manager of Canadian Operations. “Canadians continue to traditionally favour safe places to invest – particularly their homes, RRSPs, RESPs and investment real estate – while other investments are regaining support.”

Recent industry-wide statistics for the mutual fund industry, for example, show rising interest in bond, precious metal, income and real estate-based funds. While equity-based funds had generally shown weaker sales results through most of the spring, Mr. Gordon noted recent North American equity funds sales are strong, while long-term fund sales in total also registered positive results in September for the fifth straight month, according to industrywide statistics released earlier this week.

The overall Fall 2003 Manulife Investor Sentiment Index of +16, based on a survey of 1,004 Canadians by Maritz: Thompson Lightstone, remained slightly above last September’s level of +14. The four-year high for the Index was +35 in mid-2000, while its low of +11 was registered in December 2001, following terrorist attacks in the United States. 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 feel the opposite.

“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 generally are saying about where they favour investing in the prevailing economy,” Mr. Gordon said.

“Investors need to work closely with their advisors to assess their short-term needs and long-term objectives, while closely reviewing their guaranteed versus variable investments,” Mr. Gordon said.

Stocks gain; real estate holds steady
Among six investment categories in the quarterly survey, the largest swing since June appeared in the index for investing in stocks, reflecting renewed strength in equity markets and continuing low interest rates. After a heady Spring housing market, investing in their own homes and investment properties both softened, compared to the previous quarterly poll -- although investing in their own home is still the most popular place for Canadians to put their money.

Highlights
The Manulife Investor Sentiment Index is determined by the following six investment categories:
  • Investing in their own homes (either through renovations or paying down the mortgage) remains the most popular investment for Canadians, despite a decline in the latest quarterly survey. Investing in their own homes held steady at +49. The index reflects 63 per cent of those surveyed who said it’s a good or very good time to invest in their own residence, minus 14 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, at +31, up two points from June.
  • Fixed income investments (including GICs, annuities) fell three points to +13, reflecting strength in other markets relative to recent interest rates.
  • Balanced funds gained some ground by climbing three points. The index for balanced funds reached +11, with 38 per cent of those surveyed stating that balanced funds are a good or very good place to invest, compared to 27 per cent who felt the opposite.
  • Concerns about stock markets eased slightly as the index for investing in equities showed the largest increase in the last quarterly survey, up 12 points, following a six-point increase in June. It remains in negative territory, however, reaching -4 in the latest poll. Some 31 per cent of those surveyed consider it a good or very good time to invest in stocks, either directly or via mutual funds, while 35 per cent said they still view equities as a bad choice. Another 17 per cent felt it was neither a good or bad time to buy stocks.
  • Cash (including savings accounts) registered the largest decline from the June survey, down six points, and remains the least favourite destination for investors. The cash index fell to -5, reflecting 35 per cent who said it’s a good or very good time to have money in cash, compared to 40 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 continues to be the most popular investment vehicle, after being eclipsed by RESPs for the first time last March. The index for RRSPs gained eight points to register +47 in the latest poll. That result reflects 63 per cent of respondents who feel it's a good or very good time to put money into RRSPs, while 16 per cent said it is a bad or very bad time.
  • Registered Education Savings Plans fell by two points to +33. The index for RESPs reflects 52 per cent who favour investing in an RESP, compared to 19 per cent who disagree.
  • The index for mutual funds gained 10 points to reach +10, reflecting a slight increase, and mirroring an industrywide return to net sales through August. The Manulife poll found some 37 per cent of Canadians said now is a good or very good time to invest in mutual funds, while 27 per cent said it was a bad or very bad time. One in five answered that it was neither a good or bad time for funds, or that they didn’t know.
  • Segregated funds remained favourable, holding steady at an index of +4. In a period of market uncertainty, investors see guarantees offered through segregated funds as a relative benefit, compared to mutual funds. About 32 per cent of those surveyed said it’s a good time to invest in segregated funds, compared to 28 per cent stating the opposite.
The poll by Maritz: Thompson Lightstone was conducted with 1,004 Canadians aged 18 and older between September 25 and October 2, 2003. The results have a margin of error of +/- three per cent, 19 times out of 20.

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$144.3 billion as at June 30, 2003.

Manulife Financial established Manulife Bank in 1993 as the first federally regulated bank to be opened by a life insurance company following Canada’s financial reform legislation of 1992. Manulife Bank provides innovative deposit and loan products to help individuals make the most of their financial plan.

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.


Media contact:
Tom Nunn
Director of Media Relations
Manulife Financial
519-594-8578
tom_nunn@manulife.com

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