Should Manulife Stock Be on Your Buy List?

Manulife Financial Corp. (TSX:MFC)(NYSE:MFC) maintains an exceptional level of bench strength in terms of management leadership and board stewardship.

| More on:
Question marks in a pile

Image source: Getty Images

Manulife (TSX:MFC)(NYSE:MFC) manages assets over $1 trillion and is Canada’s largest life insurance company. As the pandemic unfolded in 2020, Manulife’s board of directors set up frequent briefings with management as well as informal updates with the company’s chief executive officer to ensure that the company’s board had a clear line of sight into the company’s COVID-19 response, an approach for an eventual return to the office, and overall progress on the company’s strategic priorities.

In addition, Manulife also continues to leverage the board’s diverse mix of skills to conduct focused deep dives into topics of key importance to Manulife, such as International Financial Reporting Standards (IFRS) implementation, customer centricity, macroeconomic trends, and strategy. Sessions are conducted and attended by a subset of directors having expertise in the relevant area.

Compelling growth opportunities

Further, the board maintains close oversight of Manulife’s near- and long-term strategy throughout the year — in particular, the large and compelling growth opportunity presented by the company’s business in Asia and global wealth and asset management divisions. The company also holds a number of virtual in-depth sessions focused on leadership succession and talent to help ensure Manulife maintains an exceptional level of bench strength in terms of management leadership and board stewardship alike.

Although Manulife’s shareholder outreach and annual meeting has become virtual due to the COVID-19 pandemic, the company remains very dedicated to discussing important matters with investors. For example, Manulife recently held fulsome and robust conversations with shareholders on the topic of executive compensation and Manulife’s preparations for the adoption of IFRS 17.

Sustainability framework

Also, the company continues to take an active role in Manulife’s environmental, social, and governance (ESG) performance. The board’s corporate governance and nominating committee reviews the progress being made against Manulife’s sustainability framework and stays informed of ESG trends, risks, and opportunities through management reporting. Two new directors have joined Manulife’s board in 2020, each with expertise in areas critical to Manulife’s ongoing growth.

Six of the company’s 13 independent directors are women, effectively reaching Manulife’s aspiration of gender parity in representation among independent directors. Around the world, Manulife’s employees have demonstrated resilience, agility, and passion who continued to serve the company’s customers through the uncertainty and upheaval that unfolded due to COVID-19.

Successfully leveraged technology

Manulife also saw the importance of making a range of mental, physical, and other supports available to the company’s employees. This led to substantially higher employee-engagement scores across the organization. As the fight against racism took on heightened urgency in 2020, Manulife responded with a meaningful financial investment to promote diversity, equity, and inclusion, in addition to establishing concrete leadership and recruitment goals.

Overall, Manulife successfully leveraged technology to continue to interact with customers and the board. The company gathered ongoing director and customer feedback to confirm that meeting effectiveness was not being impacted and that all stakeholders still felt individual concerns were being heard and acted upon. This approach could result in a higher stock price, as the market gains a deeper appreciation for Manulife’s execution capabilities and high-quality management.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Nikhil Kumar has no position in any of the stocks mentioned. 

More on Investing

Nuclear power station cooling tower
Metals and Mining Stocks

If You’d Invested $1,000 in Cameco Stock 5 Years Ago, This Is How Much You’d Have Now

Cameco (TSX:CCO) stock still looks undervalued, despite a 258% rally. Can the uranium miner deliver more capital gains to shareholders?

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

potted green plant grows up in arrow shape
Stocks for Beginners

3 Growth Stocks I’m Buying in April

These three growth stocks are up in the last year, and that is likely to continue on as we keep…

Read more »

clock time
Tech Stocks

Long-Term Investing: 3 Top Canadian Stocks You Can Buy for Under $20 a Share

These three under-$20 stocks offer excellent buying opportunities for long-term investors.

Read more »

Arrowings ascending on a chalkboard
Energy Stocks

Beat the TSX With This Cash-Gushing Dividend Stock

Canadian Natural Resources stock is well set up to beat the TSX as it continues to generate strong cash flows…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »