Stephen Jarislowsky slams Manulife

Globe and Mail
Thursday, Nov. 19, 2009

Jarislowsky has his reasons, and the Globe and Mail readers have theirs:

Jarislowsky’s reasons:

Manulife Financial Corp. (MFC-T18.95-1.23-6.10%) chief executive officer Donald Guloien is confronting some angry shareholders following the company's $2.5-billion share sale to bolster capital levels to record highs.

“I was terribly disappointed because I was left very much under the impression that the company, if they cut the dividend, would have fortress levels of capital and that the last thing they wanted to see was more share dilution,” said Stephen Jarislowsky of Jarislowsky Fraser Ltd., one of the insurance company's largest shareholders.

“I think it's pretty godawful that there was really no warning about this coming, and all of a sudden this dilution came about,” he said.

Manulife shares fell sharply on the Toronto Stock Exchange Thursday, a day after Canada's biggest insurer announced another stock issue.

Readers’ reasons:

It's not the fault of the current CEO, but the previous one:

"Manulife invests a customer's money and guarantees minimum future payments. Much of the money is invested in stocks, and Mr. D'Alessandro decided years ago to leave the stock portfolio unhedged, exposing its value to the swings of the market."

Guaranteeing payments while investing in stock markets can be hazardous. Just ask any senior who was over-invested in stocks. Depending on how big that piece of business is (relative to the company), Manulife could be the equivalent of a leveraged hedge fund.

Manulife is looking more and more like Nortel. Mismanagement has resulted in my losing thousands of dollars. Lies and deceit of big business and government is really getting to me.

This is the company and its last CEO who lobbied the idiots in Ottawa to tax the Income Trusts so more people would buy their retirement products-NO one should support this company by buying their shares or products -they are going down and good riddance