Sun Life Financial Inc (SLF.TO)

Likes the lifecos. This has close to a 4% yield. The one thing that has held them back is their MSF, their large American asset manager that has had some net outflows lately. Recently had a dividend increase, and would expect they could have more over the next few years. If we get into an environment where interest rates start to gradually go up, that is generally good for the lifecos. This has big exposure in India.

Its life insurance business is a good quality business. They are going after pension funds to annuitize them. Right now they are getting about 45% of their earnings from MSF, their investment management subsidiary. He likes that business very much as it has good growth and good margins. Their Asian growth is in safer areas such as the Philippines. Dividend yield of 4.06%.

The banks have been the dominant performers in the financial sectors. SLF-T has been under a lot of pressure along with the banks because of fears of exposure to the oil patch. LifeCos tend to do much better in a rising market because of their wealth management business. Insurance companies have been competing longer abroad than the banks.

Sun Life (SLF-T) or Manulife (MFC-T)? Prefers this one. Has a very competitive wealth management operation. Manulife has done very well in the last little while, tidying up their financials and getting themselves out from under the equity problem they had. Likes the fundamentals of the insurance companies, as he is reasonably bullish on equity markets.

Sun Life (SLF-T) or Manulife (MFC-T)? Both are great institutions. Manulife has a slightly bigger presence in Asia, which he likes, as it is a very immature market and will continue to grow. They each have good wealth management franchises. Both are good companies and over time you will see dividend growth from both. Dividend yield of around 4%.

You are dealing in high quality with one of the 2 major life businesses. You are looking at a corporate portfolio holding. Doesn’t think you should ever sell this down here.

Incredibly well positioned. At the current share price, your dividend yield is almost 4%. They should absolutely deliver earnings growth of at least 10% this year. Selling at about 10 or 11 times earnings. They will be a beneficiary when Canadian rates start to rise, and even on the US side.

Good diversification. He likes that they are less oriented towards the Far East where he feels there is more volatility and more potential currency problems. They are really competitive in the wealth management area. Good yield.

Great West Life (GWO-T), Manulife (MFC-T) or Sun Life (SLF-T) for the best upside? That’s a tough question, because he likes all 3. Insurance companies will do well in the economy he sees going forward. Lifecos have a little bit more torque on the upside with rising interest rates. Right now Manulife would be his favourite.

Manulife (MFC-T) or Sun Life (SLF-T)? He likes both businesses. This one didn’t have a great quarter, so he is looking more at Manulife now. They are great income producing stocks to own, just like a bank, that you want to own for the long-term. Valuation is not so cheap right now that you can make a large amount of money in a short period of time. He would choose Manulife because the institutional money managing business of Sun Life has been doing very, very poorly.

(A Top Pick Jan 16/15. Up 23.13%.) In the transition we are having from people saving money to the baby boomers retiring and spending their savings, insurance companies and banks are well positioned to capitalize on that.

(A Top Pick July 4/14. Up 16.09%.) This is one that you own in a environmental rising rate.

(Top Pick Sep 4/14, Up 12.04%) He likes the life companies. They have growing operations in Asia which is the only growth market in the world for insurance.

SLF-T or MFC-T? SLF-T looks better from a chart point of view. You would have to also look at the fundamentals.

He prefers SLF-T for an insurance pick. It looks more attractive because you get a higher return on equity. He looks at price to book and compares to return on equity.