Manulife Financial (MFC.TO)

On her watch list. Will benefit from rising interest rates. Likes their positioning in China and the Far East. Good growth avenue for them longer-term. Outperformed the banks last year. She would like to get it a couple of dollars cheaper.

Benefits from higher rates. 11.5 times earnings. He likes it. Would like to buy it under $20. He buys half now for new clients and hopes for a market pull back.

More growth in Manufacturers Life (MFC-T) or Sun Life (SLF-T)? These are both global businesses with large exposure to different parts of Asia. Both are international companies and he likes them both. Still sees upside as well as dividend increases in both companies over the next 2-3 years.

Positive on the sector. This one is still a little more speculative than other names. As interest rates go up and stock markets continue to act well, it will be positive for MFC. See today’s Top Picks for his preferences.

If you are going to own one, prefers MFC-T.

Very strong balance sheet. If you own, you may want to diversify a bit, keeping half of this and consider going into a U.S. Bank. Thinks the US currency is going to rise and feels that the US is going to grow a little faster than Canada. His top US bank holding is J.P. Morgan (JPM-N).

(A Top Pick Jan 30/13. Up 15.3%.)

They have a benefit from higher rates but they have 35% growth in Asia, so you are going to see earnings growth. Buy on weakness at $19. Will raise dividend at the end of 2014.

Inter Pipeline (IPL-T) or Manulife (MFC-T) for a long-term hold? Feels this one is expensive as well. Operating earnings are getting better. This benefits from markets and interest rates, both going up.

(A Top Pick Dec 21/12. Up 50.16%.) Still sees value in this. Right now, the lifecos in particular, are in a cycle where, going forward, there is going to be more operating efficiencies. They are very cost conscious now. Also, expects there will be some operating leverages as the volume of business continues to expand. If interest rates start to rise, that is good for lifecos.

Trading at low multiple. MCCSR is very robust right now. Will be a $25-$26 stock with the global economy doing so well right now.

It was disappointing over the last 5 years. Now they have hedged their guaranteed income product and the stock has gone up. The best performer of the lifecos. He would buy it now. All of the risk is out of the stock now. Power Financial is a way to get into this sector cheaply.

Good, big, solid insurer. After going through a fair amount of indigestion through the last several years, lifecos seem to be off to the races now. Wait for a pullback before buying.

What effect will quantitative easing have on this stock? This stock has had a big run. Their sensitivity in their portfolio to interest rates and the stock market has been substantially reduced. They were hedging out their exposure to the stock market as the stock market was rallying. Now they are hedging out their exposure to interest rates. Doesn’t think there is a much exposure as there used to be. This has an OK yield. Has a lot of capital locked up in the balance sheet that if things ever recover down the road they will be able to start taking some gains back into their income.

Her call is that long term interest rates go up which will benefit them and they will do so the most of all the Lifecos. Capital ratios are excellent. Thinks they can’t increase dividend until end of 2014