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Leading Financial Expert Dr. Anthony M. Criniti IV Discusses Surviving the Pandemic

New article from The American Reporter:

https://www.theamericanreporter.com/leading-financial-expert-dr-anthony-m-criniti-iv-discusses-surviving-the-pandemic/

 

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How to Survive The Great Pandemic

The sky might appear to be falling right now. There are people all across the world who are quarantined in their homes while COVID-19 death rates are climbing exponentially. There are families who are separated from each other because they fear spreading the coronavirus. There are businesses deemed “nonessential” that are closed for weeks. There are bills (including rents and mortgages) that are unpaid. There are food and essentials that are increasingly becoming scarcer. On top of this, you might actually have been infected with the coronavirus and are fighting to stay alive at this very moment.

Bad news seems to be sprouting daily. Recent data has just revealed that millions more have just filed for unemployment, with estimates of about a twenty percent unemployment rate here in the United States. To put this astonishing number into context, consider that the Great Depression had peak unemployment rate estimates of roughly twenty five percent.

What does this mean for us now? As I discussed in my book The Survival of the Richest (2016), without money, entities do not prosper. And without money, entities do not survive. If you take away the ability for businesses to make money, you are essentially killing them and the people who own and work for them. Make no mistake, the removal of wealth may kill more people than the coronavirus.

Considering that so many people are out of work and that so many “nonessential” businesses do not appear to have an opportunity to make money, it appears that the unemployment rate will continue to elevate. The problem is that once we surpass the unemployment rate record set by the Great Depression, there will be no way to numerically deny that we are living in a major historical economic and financial moment. Every economics and finance textbook of the future will use this time as a benchmark to study wealth.

The Great Depression and the Great Recession have rightfully earned their titles in history. Since I have little doubt that we will break our highest unemployment record within the next few weeks, let me be the first to welcome you to the Great Pandemic!

It is important to name this event for economists and financialists for the same reason that it is important for medical scientists to label the disease that has created it. Wealth scientists need to admit that there is a wealth emergency in the same way that the medical scientists have already admitted that there is a medical emergency. Admitting there is a problem is the first part of the solution.

Please do not panic though; we’ll get through this…humanity always does. We are the best survivors life has ever seen. I would like to share with you a free excerpt that I wrote from The Survival of the Richest several years ago that can briefly illustrate how to survive the Great Pandemic. The key point here is this: if humanity unites, then we can conquer the virus and restore prosperity. It is humans who have created our great civilization. We can do anything, especially when we do it together. Don’t be fooled by what you hear though, this road will be long and bumpy…so hold on tight. The problems of the Great Depression were not cured overnight, neither will be ours. On the bright side, this might be the struggle that this world needs to finally bring humanity to full unity.

Enjoy and stay safe!

Dr. Finance

Excerpt from The Survival of the Richest by Dr. Anthony M. Criniti IV

Chapter 23: Surviving an Economic Collapse       

“All nations have a risk of dying at some time. But all of the many ways to destroy a nation have something to do with wealth. If a nation were demoted to the survival step from a once-prosperous position, then it needs to be prepared for tough times. But how do individuals survive when the nation it belongs to is barely alive?

In an economic collapse, wealthy individuals and groups are usually still in the best position to survive. They may have accumulated enough wealth that they can provide themselves the proper amount of survival essentials for a sufficient time period to wait out the catastrophe. The poor may have a more difficult time, as the economic struggle may aggravate their already-challenging individual positions. But there is some good news!

Contrary to what many doomsday preppers may say, the conclusions of this book actually have some positive messages for any potential economic Armageddon. Two major things can help individuals survive a major economic collapse. First, if everyone has an emergency reserve, then it will relieve some pressure until the situation is hopefully rectified. But for how long should your emergency reserve last? In The Most Important Lessons in Economics and Finance, I proposed a twelve-month emergency reserve broken down as follows: “…at least six months of current living expenses in cash equivalents (e.g., a checking account in a bank), three months in actual cash stored somewhere fire-proof and safe, and three months in gold…” (Criniti, 2014, 177). If you want to add even more protection for a major economic emergency, then I would add to the above an additional one-year minimum emergency reserve of the survival essentials listed in chapter 12, for example, a one-year supply of food, water (or at least an alternative plan to obtain more, such as by collecting rainwater), and so forth. You could have more than a one-year supply of survival essentials but having less than this minimum is very risky.

If everyone in a given country were to take these measures, then the whole country would be better prepared to handle an economic catastrophe. Usually in these situations, the nation just needs a little time for the economic managers to reorganize their strategies. They may need to borrow or print more money. They may even need an entire economic facelift with a totally different strategy, for example, to shift from communism to free-market capitalism. The individual just needs to ensure that he or she has enough survival essentials to survive until the political smoke clears.

The second major thing that can help individuals survive a major economic collapse is to recognize the value in human cooperation and unity. Many doomsday preppers plan on isolating themselves and taking care of only their families. This is a short-sighted approach though. It should never be forgotten that what took us to our current state of civilization is our proper management of wealth together. Collectively we have created civilization, and collectively we can destroy it. Thus, in a worst-case scenario, collectively we can recreate it! Humans can fix almost any situation, as long as we keep united. It may take a little time, and thus, the reason for the individual emergency reserves. However, people should not hurt others and steal from one other. This can lead to a downward spiral of other problems.

We are our best assets! If we create animosity among our neighbors, especially for reasons that may be out of our control, then we divide ourselves and lower our collective probability of returning civilization to its former state. None of us, regardless of our occupation, can restore an economy alone. Simply, it would require too much knowledge and labor for any single person or even a small group. The above points could help us keep our focus and our sanity if we ever were to unfortunately experience an economic collapse.”

– Excerpt from The Survival of the Richest (2016) by Dr. Anthony M. Criniti IV, pages 215-217

Survival Final High Resolution Front Cover

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In these challenging times, it is important to recognize the value of companionship; which was listed in The Survival of the Richest book as a secondary physical immediate survival essential (Criniti, 2016, p. 101). So many survivors of great tragedies in history have ranked loneliness as their top issue along with hunger and thirst. To be happy, we need people like we need air. This will also be the great lesson for the world of this current major event.

survival-final-high-resolution-front-cover

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Super cool letter from one of the founding fathers of the science of finance, Harry Markowitz.  Harry’s article called Portfolio Selection in 1952 began the shift from something called economics to a new thing called finance. 

 

Harry Markowitz Letter 1-29-20 Public

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A “financialist” versus an “economist”

According to Dr. Anthony Criniti, a “financialist” and an “economist” are two distinct terms. His definitions are below for your convenience:

“A financialist is a scientist who specializes in the science of finance.” (Criniti, The Necessity of Finance, 25)

Conversely,

“The science of economics has a name for its specialists called economists.” (Criniti, The Necessity of Finance, 25)

For more information, please read Dr. Criniti’s The Necessity of Finance.

Source:

Criniti, Anthony M. IV, The Necessity of Finance: An Overview of the Science of Management of Wealth for an Individual, a Group, or an Organization (Philadelphia: Criniti Publishing, 2013).

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Americans’ Personal Finance Sentiment Strengthens, Housing Optimism Follows Suit

Confidence in Home Selling Environment Hits New Survey High

WASHINGTON, Nov. 7, 2014, Results from Fannie Mae’s October 2014 National Housing Survey show Americans’ optimism about the housing market continued its gradual climb amid greater confidence in household income and personal finances. The share of respondents who say they expect their personal financial situation to improve during the next 12 months climbed to 45 percent – seven points higher compared to one year ago – while the share expecting their financial situation to worsen decreased to 10 percent last month. Although consumer attitudes about the direction of the economy remain subdued, with only 40 percent of survey respondents saying the economy is on the right track, the October results mark a 13 percentage point improvement compared to the same time last year.

“Consumers are growing more optimistic about the housing market in the face of broader improvement in economic sentiment,” said Doug Duncan, senior vice president and chief economist at Fannie Mae. “The share of consumers who expect their personal finances to get better is near its highest level since the survey’s inception, while those expecting their finances to get worse reached a survey low. Home price expectations rose significantly this month, largely reversing the dip witnessed over the past four months, and the share of consumers who think it’s a good time to sell a home reached another survey high. The narrowing gap between home buying and home selling sentiment may foreshadow increased housing inventory levels and a better balance of housing supply and demand. These results may help drive a healthier housing market in 2015.”

SURVEY HIGHLIGHTS

Homeownership and Renting

  • The average 12-month home price change expectation rose to 2.8 percent.
  • The share of respondents who say home prices will go up in the next 12 months fell by one point to 44 percent. The share who say home prices will go down decreased by one point to 7 percent.
  • The share of respondents who say mortgage rates will go up in the next 12 months rose by three percentage points to 48 percent.
  • Those who say it is a good time to buy a house fell to 65 percent. Those who say it is a good time to sell increased to 44 percent—a new all-time survey high.
  • The average 12-month rental price change expectation rose to 3.7 percent.
  • The percentage of respondents who expect home rental prices to go up in the next 12 months decreased by six percentage points to 49 percent.
  • The share of respondents who think it would be difficult to get a home mortgage today increased by two percentage points.
  • The share who say they would buy if they were going to move fell to 65 percent, while the share who would rent increased to 30 percent.

The Economy and Household Finances

  • The share of respondents who say the economy is on the right track held steady at 40 percent.
  • The percentage of respondents who expect their personal financial situation to get better over the next 12 months increased to 45 percent.
  • The share of respondents who say their household income is significantly higher than it was 12 months ago remained at 25 percent.
  • The share of respondents who say their household expenses are significantly higher than they were 12 months ago fell slightly to 36 percent.

The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June 2010). To reflect the growing share of households with a cell phone but no landline, the National Housing Survey has increased its cell phone dialing rate to 60 percent as of October 2014. For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future.

For detailed findings from the October 2014 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey page on fanniemae.com. Also available on the site are in-depth topic analyses, which provide a detailed assessment of combined data results from three monthly studies. The October 2014 Fannie Mae National Housing Survey was conducted between October 1, 2014 and October 25, 2014. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae.

Opinions, analyses, estimates, forecasts, and other views of Fannie Mae’s Economic & Strategic Research (ESR) Group included in these materials should not be construed as indicating Fannie Mae’s business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management.

Fannie Mae enables people to buy, refinance, or rent a home.

Visit us at http://www.fanniemae.com/progress.

Follow us on Twitter: http://twitter.com/FannieMae.

SOURCE:

Fannie Mae http://www.fanniemae.com

 

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The following is a review from Kirkus Reviews of The Most Important Lessons in Economics and Finance Book by Dr. Anthony M. Criniti IV.  Please feel free to add a review of this book also.

“Criniti (The Necessity of Finance, 2013) interprets the key concepts underlying economic and financial behavior, with an emphasis on personal finance.

Criniti makes frequent references to his previous book as he guides the reader through 218 principles of economics and finance that he finds to be both essential and universally applicable. His claim that “around the 1950s it became formally necessary to create finance, the science of managing wealth for an individual, a group, or an organization” may raise the eyebrows of readers familiar with a longer span of history, but it does allow readers to understand what exactly the author means by “finance.” Most of the principles identified in the book relate to matters of personal finance—spending, saving, retirement—and business operations. Some of the principles Criniti explores are reasonable if somewhat simplistic guidelines: “Always keeping your promises can help you to keep your good reputation.” and “Only give gifts that you can afford to give.” Others require greater leaps of logic or adherence to a profit-driven worldview: “Economic cycles are naturally required wealth adjustments by economic entities.”; “Some people will do anything to deprive you of your wealth.” Some principles merit two pages of explanation, while others are dispatched in a paragraph or two; the explanations are derived more from the author’s understanding of his principles than from empirical evidence or analysis. The principle that “Wealth is attracted to cities,” for instance, is supported by no data, merely the claim that “In general, you will find your greatest opportunities to build wealth in cities versus suburbia or the country.” Although the title suggests an introductory economics course, the readers who will find the greatest value here are those in search of a more philosophical companion for their personal finance handbooks.

A guide to the fundamental principles of building and maintaining personal wealth, relying more on the author’s instinct than on quantitative data.”

Kirkus Reviews

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Experienced financial professional shares reader-friendly guide to economics, finance

 In “The Most Important Lessons in Economics and Finance,” Dr. Anthony M. Criniti IV uncovers the time-tested secrets of wealth management

PHILADELPHIA – In “The Necessity of Finance” he laid a foundation, introducing readers to the characteristics of the economic and financial worlds. Now, after multiple requests, Dr. Anthony M. Criniti IV is back with a follow-up book, “The Most Important Lessons in Economics and Finance” (ISBN 0988459523), uncovering the most significant truths of these two important sciences.

Dr. Criniti knows that reading these principles alone is not enough to master them; after many years of experience in the financial field, he knows that you must incorporate the lessons into your life while making the decision to take control of your own wealth—a process that can take a long time. But this helpful guide provides the best place to start, particularly for advanced level students and professionals who have already read “The Necessity of Finance.”

Through incorporating and summarizing the teachings of some of history’s top contributors to these two sciences, Dr. Criniti draws upon a wealth of experience to pass these lessons on to the next generation of practitioners in the worlds of economics and finance.

“I give these lessons to you from the bottom of my heart, with the best intentions, to reveal the secrets of two of the most important sciences….Mastery may take decades, but choosing not to try to master your own wealth can result in harsh consequences, as noted in my previous work,” says author Dr. Criniti.

The Most Important Lessons in Economics and Finance” is available for sale online at Amazon.com and other channels.

About the Author:

DR. ANTHONY M. CRINITI IV is a former financial consultant and a current professor of finance at several universities. He earned a PhD in applied management and decision sciences, with a concentration in finance. A native of Philadelphia, he has also received many financially related designations, including CHFC, CLU, REBC, and RHU. Dr. Criniti is an active investor and has traveled the world studying various aspects of finance. He is also the author of the acclaimed finance book, The Necessity of Finance. Finally, Dr. Criniti has just released his new book, The Most Important Lessons in Economics and Finance.

MEDIA CONTACT:

Dr. Anthony M. Criniti IV

E-mail               info@learn-about-finance.com

Web:                https://learn-about-finance.com/

REVIEW COPIES AND INTERVIEWS MAY BE AVAILABLE UPON REQUEST

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World’s Largest Gathering of Angel Investors to Converge on Washington, DC

On the Docket: How Best to Deploy a Collective $23 Billion and Remain a Vital Source of Capital to Startups

KANSAS CITY, Mo., Feb. 27, 2014, Dramatic change in angel investing means both threats and opportunities for the angel investment community and the tens of thousands of entrepreneurs they support, according to the Angel Capital Association (ACA), the world’s leading professional association for angel investors. The global angel investing community will debate and assess this new environment at the 2014 ACA Summit, “Angel Impact: Entrepreneurial and Economic Success,” March 26-28, 2014, in Washington, D.C.

U.S. angel investors – individuals who support startup companies with passion, experience and funding – in 2012 invested nearly $23 billion in about 67,000 ventures, according to estimates by the Center for Venture Research at the University of New Hampshire. Their impact on the economy is huge, as the kinds of innovative startups angels invest in create all of the net new jobs in the country, according to reports by the Census Bureau and Kauffman Foundation.

“This is the place to be for both experienced and (especially) new angels who want to share great ideas, to learn unique investment practices from each other, and don’t want to be left unaware of how the seed stage investment landscape is changing – particularly from a regulatory perspective,” said David Verrill, ACA’s chairman.  “We are hosting this meeting in Washington, D.C. for a reason – the Securities and Exchange Commission is not only assessing the underlying definition of who can be an accredited investor, but is also reviewing significant rules around the JOBS Act involving general solicitation and online crowdfunding platforms. Now more than ever is the time to join with angel colleagues to learn about, to shape, and to nurture this powerful economic engine.”

This ACA Summit is the world’s largest annual gathering of accredited angel investors. More than 700 angel investors, including those among the most active, sophisticated and successful in the world, will share expert advice and ideas. The Innovation Showcase, a related event at the Summit, will show angels in action when dozens of promising startups will receive invaluable advice and feedback from angels.

Discussions will include:

  • New and proposed federal rule changes, including a potential change to the definition of an “accredited investor,” which could dramatically reduce capital available to startups and eliminate as many as 60 percent of the current accredited investor population, dramatically affecting the economy and job creation.
  • Congressional leaders, including Sen. Chris Murphy (D-Connecticut), will discuss how they support angel investing and its vital role in innovation and the American economy.
  • Insight into tactics angels deploy to identify the best investment opportunities in top industries including life sciences and medical devices, information technology and internet, cleantech and cyber security.
  • 2013 angel group deal trends, collected from more than 200 angel groups, will be shared by Rob Wiltbank, VP of research at the Angel Resource Institute (ARI), with the live release of the 2013 Halo Report, by ARI and Silicon Valley Bank, with data powered by CB Insights.
  • Compelling stories, including from Blackboard co-founder Michael Chasen, who will recount how he took his learning management system company from angel backing to IPO.
  • New accredited online platforms are disrupting the angel investing market. Leading platform companies including premier sponsor FundersClub will lead the discussion.
  • Which are the most angel-friendly countries in the world — and how is angel investing helping spur their economies?

To attend the ACA 2014 Summit, register here. Registration is open to ACA members and accredited individual investors from around the world, as well as accelerator and incubator leaders, university innovation professionals, economic development leaders, and public policy makers.

About Angel Capital Association (ACA)

The Angel Capital Association is the leading professional and trade association focused on fueling the success of accredited angel investors and portfolio companies in high-growth, early-stage ventures. ACA is the voice of the angel industry, providing comprehensive services in support of members working in angel groups, through portals and individually. ACA provides professional development, public policy advocacy and significant benefits and resources to its membership of 220 angel groups and more than 12,000 individual accredited investors. www.angelcapitalassociation.org; @ACAAngelCapital.

Contact:
Cynthia Flash
Media Relations for Angel Capital Association
425-603-9520
Email

Cheryl Isen
Media Relations for Angel Capital Association
425-222-0779
Email

Read more news from Angel Capital Association.

SOURCE:

Angel Capital Association

 

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Younger Canadians not getting ahead financially and can’t count on inheritance, Manulife Investor Sentiment Index shows

WATERLOO, ON, Jan. 8, 2014, Younger Canadians feel that they are not getting ahead financially and they shouldn’t count on an inheritance according to the Manulife Financial’s latest Investor Sentiment Index. The Index also showed that despite robust capital markets at pre-financial crisis levels, Canadians’ overall investor sentiment remains mired in the recession.

Almost half (46 per cent) of Canadians aged 25-34 say they are worse off financially than they were two years ago while 40 per cent of those aged 35-44 say they are worse off financially. Despite that, 62 per cent of Canadians aged 25-34, say they’re optimistic that they will be in a better financial position two years from now, while 60 per cent of those aged 35-44 say they remain optimistic for the future.

The latest survey results also show that it isn’t likely that younger Canadians – part of a generation which has traditionally been challenged by a difficult job market and underemployment – will receive much help in the form of future inheritance. Nearly half of Canadians (43 per cent) report that they haven’t given any thought to how much cash or assets they’ll leave to their heirs. As many as 13 per cent say they plan to leave nothing, while more than one in four (29 per cent) say they will leave less than $100,000. Only two per cent of Canadians report that they will leave an inheritance of $1 million or more.

“The reality is that young Canadians will be the first generation to not be better off than their parents. Many Canadians haven’t even thought about what cash or assets they will leave to their children,” said Paul Lorentz, Executive Vice-President, Retail Markets. “Young Canadians might need some of the financial discipline of their great grandparents, those who lived through the Depression, coupled with modern financial solutions.”

Investor Sentiment Index dips despite continuing market recovery
Overall, investor confidence in Canada was down slightly since May of 2013 as the Investor Sentiment Index dipped by one point, to +21. The Index is up one point from a year ago when it was +20 and it remains substantially higher than it was at the start of the economic downturn in 2008 (+5).

“In these latest results, we saw a marked change to a positive trend we’ve been seeing for some time,” said Mr. Lorentz. “Typically, the Investor Sentiment Index follows the same general pattern as the markets, but despite the gradual recovery there, the Index slipped suggesting that Canadian investors still aren’t finding much comfort in more robust markets. Canadians are still wary.”

Provincially, Alberta residents appear to be Canada’s most confident about investment and savings vehicles, posting an overall Investor Sentiment Index score of +30, while Quebec posted the lowest score at +8.

Maintaining current lifestyle no longer a priority for Canadians
Index results also point out that Canadian investors of all ages have made one significant shift in their financial priorities for 2014. Entering 2013, Canadians were focusing on paying down debt (top priority: 31%) while still maintaining their current lifestyle (second priority: 22%). Today, only 1% of Canadians indicate that maintaining their current lifestyle is a financial priority – a drop of 21 percent.

Regardless of income or age, Canadians’ top financial priority for 2014 is to pay down debt (29 per cent), followed by reducing spending (11 per cent), saving for retirement (9 per cent), saving for a rainy day (8 per cent) and paying down a mortgage (8 per cent.)

“We’re seeing that debt management, reducing spending and saving are, more than ever, top of mind for Canadians but just as importantly, that Canadians are also more aware of the financial choices they’re making. They’re making good financial decisions to put their finances in order for the future even knowing that they may not be able to maintain their current lifestyle because of them,” added Mr. Lorentz.

Advisors make significant impact
Four in ten Canadians report having a financial advisor which proves to be one of the most significant influencers on Index score. The Investor Sentiment Index score for individuals with an advisor is +27, while it is +16 for those without an advisor.

“Clearly, having access to professional financial advice will help you stay on track,” added Mr. Lorentz. “We see time and again that having an advisor is also the single most important positive influence on an individual’s peace of mind with their financial position now and in the future.”

Canadians with an advisor are less likely to cite paying down debt as a priority, but they are more likely to mention saving for retirement. Those who work with an advisor are also significantly more likely to feel that they are on track with their current financial goals (52 per cent vs. 36 per cent) and they are more likely to say that they are in a better financial position than they were two years ago.

About the Manulife Financial Investor Sentiment Index
The Manulife Financial Investor Sentiment Index is a semi-annual measure of investors’ views on a range of asset classes and savings and investment vehicles, as well as their confidence in these areas. The index is based on an online survey of 2,000 Canadians aged 25+ that was conducted November 12-22 by Research House, an Environics Company. A national probability sample of this size would have a margin of error of +/-2.2 percentage points, 19 times out of 20.

About Manulife Financial
Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most 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. Funds under management by Manulife Financial and its subsidiaries were C$575 billion (US$559 billion) as at September 30, 2013. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at manulife.com.

SOURCE:

Manulife Financial Corporation

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