But Expected Investment Return in 2015 is Low
- Manulife Survey -

Tokyo, Japan - Responding to improving market conditions, and frustrated with their returns over the past year, Japanese investors want to invest more, according to the results from Manulife's latest quarterly Manulife Investment Sentiment Index (MISI).* The survey also indicates that Japanese investors who have traditionally kept the majority of their assets in cash seem to be actively considering shifting funds to stock/equities and other financial products, given the dissatisfaction with their investment performance in the past.

However, their expectation for returns in 2015 is the lowest among the eight Asian markets surveyed. Almost half of Japanese investors expect returns of less than 5%. This lack of confidence in the potential for a good return suggests a need for professional advice to help improve their expected investment performance.

"According to past MISI survey results, we understand that most Japanese investors have been making investment decision on their own. In a more complicated economic environment with issues such as a depreciating yen and increasing consumption tax, Japanese investors are discovering the importance of investment to improve their financial situation, and the necessity of professional advice to get the most out of their investment," said Gavin Robinson, President and CEO of Manulife Life Insurance Company.

More Desire to Invest In Stocks/ Equities
Compared with 41% six months ago, 51% of Japanese polled think that the time is right to invest in stocks/equities. The key reason for Japanese investors' optimism toward investing in stocks is they believe that there are signs that the market is improving. Besides stocks/ equities, the percentage of Japanese who think it's a good time to invest in mutual funds/ unit trusts also rose to 38%, versus 33% six months earlier.

Japanese investors' desire to invest more in the financial products can be also seen from their dissatisfaction with their past investment performance. Among those surveyed, 27% stated they were unhappy with the performance of their investments over 2014, while 30% indicated they were dissatisfied with the performance of their investments over the past 5 years - the least satisfied market across Asia. Nearly half of those who are dissatisfied with their investment performance in 2014 think that they didn't invest enough last year and should have shifted more of their cash into investments.

Not confident in financial decisions
While they wish to shift to invest, Japanese surveyed seem not to have a rosy view in their future investment returns. Nearly half of Japanese investors expect returns of less than 5% in 2015 while the average of the surveyed markets in Asia is 10.2%. Even those who were happy with their investment returns in 2014 attributed it to good luck and unexpected market events. Attribution of success to good luck and market events, in addition to a lack of confidence in future investment performance, underlines the growing need in Japan for professional financial advice.

"The survey shows that Japanese investors are looking to shift a portion of their asset allocation away from bank deposits that are yielding little or no return due to still-historically low interest rates. Many plan to increase their exposure to equities, encouraged by the fact that the Nikkei Stock Average is at a more-than-15-year high" explained Naru Ishida, President and CIO of Manulife Asset Management Japan.

"Japanese investors surveyed also indicated that they were dissatisfied with their own financial situation, echoing the dissatisfaction with investment performance. According to the survey, only 32% of Japanese respondents said they were satisfied with their financial situation. This is a stark contrast to the Asian region as a whole where 57% of are happy."


Concerns over maintaining lifestyle and financial security in retirement
Japanese investors cited managing/maintaining their current lifestyle (30%), and running out of money in retirement (15%) as their chief financial concerns right now. Japanese's concern over "managing/maintaining their current lifestyle" is the highest among Asian markets.

"Maintaining their current lifestyle has been identified by investors as their top financial priority since we started the survey in Japan in 2013, especially focusing on lifestyle after retirement. However, health and finance are major concerns that have them questioning whether they can enjoy their retirement. Professional financial advice is one way to help alleviate some of these concerns. Manulife understands people's desire to have comfortable retirement life, and supports those who are looking for a brighter future," said Mr. Robinson.

*About the Manulife Investor Sentiment Index in Asia
Manulife's Investor Sentiment Index in Asia (Manulife ISI) is a quarterly, proprietary survey measuring and tracking investors' views across eight markets in the region on their attitudes towards key asset classes and issues related to personal financial planning. The Index is calculated as a net score (% of "Very good time" and "Good time" minus % of "Bad time" and "Very bad time") for each asset class. The overall index is calculated as an average of the index figures of asset classes. A positive number means a positive sentiment, zero means a neutral sentiment, and a negative number means negative sentiment.

The Manulife ISI is based on 500 online interviews in each market of Hong Kong, China, Taiwan, Japan, and Singapore; in Malaysia, Indonesia and the Philippines it is conducted face-to-face. Respondents are middle class to affluent investors, aged 25 years and above who are the primary decision maker of financial matters in the household and currently have investment products.

The Manulife ISI is a long-established research series in North America. The Manulife ISI has been measuring investor sentiment in Canada for the past 15 years, and extended this to its John Hancock operation in the U.S. in 2011 and Asia in 2013. Asset classes taken into Manulife ISI Asia calculations are stocks/equities, real estate (primary residence and other investment properties), mutual funds/unit trusts, fixed income investment and cash.

This material, intended for the exclusive use by the recipients who are allowable to receive this document under the applicable laws and regulations of the relevant jurisdictions, was produced by and the opinions expressed are those of Manulife or any of its affiliates as of March 2015 and are subject to change based on market and other conditions. The information and/or analysis contained in this material have been compiled or arrived at from sources believed to be reliable but Manulife or any of its affiliates does not make any representation as to their accuracy, correctness, usefulness or completeness and does not accept liability for any loss arising from the use hereof or the information and/or analysis contained herein. The information in this document, including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Manulife or any of its affiliates disclaims any responsibility to update such information. Neither Manulife or any of its affiliates or its affiliates, nor any of their directors, officers or employees shall assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained herein. All overviews and commentary are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, investment or legal advice. Clients should seek professional advice for their particular situation. Neither Manulife or any of its affiliates or representatives is providing tax, investment or legal advice. Past performance does not guarantee future results. This material was prepared solely for informational purposes, does not constitute an offer or an invitation by or on behalf of Manulife or any of its affiliates to any person to buy or sell any security and is no indication of trading intent in any fund or account managed by Manulife. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Unless otherwise specified, all data is sourced from Manulife.

Issued in Tokyo by Manulife and its affiliates.

About Manulife
Manulife Life Insurance Company ("Manulife Japan") is a member of the Manulife Financial Group.

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. Assets under management by Manulife and its subsidiaries were approximately C$691 billion (US$596 billion) as at December 31, 2014.

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About Manulife Asset Management
Manulife Asset Management is the global asset management arm of Manulife, providing comprehensive asset management solutions for institutional investors and investment funds in key markets around the world. This investment expertise extends across a broad range of public and private asset classes, as well as asset allocation solutions. As at 31 December 2014, assets under management for Manulife Asset Management were approximately US$276.7 billion.

Manulife Asset Management's public markets units have investment expertise across a broad range of asset classes including public equity and fixed income, and asset allocation strategies. Offices with full investment capabilities are located in the United States, Canada, the United Kingdom, Japan, Hong Kong, Singapore, Taiwan, Indonesia, Thailand, Vietnam, Malaysia, and the Philippines. In addition, Manulife Asset Management has a joint venture asset management business in China, Manulife TEDA. The public markets units of Manulife Asset Management also provide investment management services to affiliates' retail clients through product offerings of Manulife and John Hancock.

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