Data & Research January 6, 2014

Investor Sentiment Ticks Up

Interest in equities continued to grow through the end of 2013, especially with regard to retirement-based investments, year-end analysis shows.
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The John Hancock Investor Sentiment Index rose slightly in the final quarter of 2013, reaching +22 from +20 observed in Q3. The index ended 2013 four points higher than in Q4 of 2012, and seven points higher than the same period in 2011.

A bigger jump in enthusiasm was measured for retirement plan investments, index results show. At the end of Q4 2013, more than eight in 10 (83%) investors agreed that now is a good time to invest in 401(k) plans, compared with 73% favoring such investments a year ago.

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Investments made within individual retirement accounts (IRAs) showed a similar uptick. At the end of Q4 2013, 81% of surveyed investors agreed that now is a good time to invest in an IRA, up from 72% a year ago.

Looking generally at stock market investments, positive attitudes rose to 60% in Q4 of 2013, compared with 55% in the third quarter of the year. A majority of investors (56%) also remain positive on stock mutual funds—a level that is significantly higher than the fourth quarter of 2012, when 45% of respondents had favorable views of such funds.

Optimism held steady for investing in lifestyle or target-risk funds, both at 39%. Optimism around target-date funds also remained steady, at 35%.

Investors remain negatively disposed toward bonds, with 39% saying now is a bad time to invest in fixed-income instruments. Sixty-four percent said staying in cash should also be avoided at this time.

The share of investors who believe they are in a better financial position now compared with two years ago rose to 52% in the last quarter, up 10 points from the fourth quarter of 2012.

Other results included in the index report show there are several issues that are consistently worrying investors—especially those engaged in retirement planning.

A top concern, explains Bill Cheney, John Hancock’s chief economist, is being able to afford quality healthcare (66%), even though the share of investors who express healthcare concerns is down about five percentage points from the third quarter of 2013. 

Investors also frequently mention that they are at least somewhat concerned about being able to afford nursing home or long-term care if needed (59%). Others worry about running out of money in retirement (52%), and about experiencing a substantial decline in assets just before retiring (45%).

More on the survey’s results and methodology is available here.

Products January 6, 2014

Nuance Launches New Mutual Fund

Nuance Investments, a classic value investment firm, has launched the Nuance Mid Cap Value Fund.
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This is the second mutual fund offered by Nuance, which launched the Nuance Concentrated Value Fund in May 2011.

The Nuance Mid Cap Value Fund mirrors the strategy and approach of the firm’s Nuance Mid Cap Value Separate Accounts and seeks long-term capital appreciation, primarily through investments in equity securities that the investment team believes are high-quality though temporarily out of favor.

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Nuance selects securities for the fund’s investment portfolio by using an extensive quantitative screening and fundamental research process that identifies leading businesses selling at a discount to fair value with the potential to generate above average returns over time.

“A key to our firm’s track record to this point has always been our attention to detail and commitment to understanding as much as possible about each company we consider for inclusion in our portfolios,” says Scott A. Moore, president and chief investment officer of Nuance, based in Kansas City, Missouri. “With this new fund, we will continue to apply our in-depth process with a focus on seeking to provide superior risk-adjusted returns for our investors.”

The fund was launched in collaboration with Montage Investments, Nuance’s parent company, which offers alternative investment solutions across the spectrum of asset classes and strategies that include mutual funds, closed-end funds and separate accounts.

More information is available on the Nuance website or by calling 855-682-6233.

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