Deals & People January 7, 2014

Kim Becomes New York Life Vice Chairman

New York Life announced that John Y. Kim has been elected as a vice chairman of the company.
Reported by

Kim, who will now oversee the company’s technology function in addition to his current responsibilities, will also continue as president of New York Life’s Investments Group, which includes the investment management, annuities and retirement plan recordkeeping businesses, as well as chief investment officer of New York Life Insurance Company.

“In recognition of this newly expanded role and the leadership, drive and commitment to our mission John has demonstrated since joining the company in 2008, he has been named vice chairman of the company,” says Ted Mathas, chairman and CEO of the New York-based New York Life. “With John’s broad and deep experience and judgment we know he will continue making important contributions in the position of vice chairman.” Kim will continue to report Mathas.

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Kim became chairman of New York Life Investments in January 2011 (see “KimNamed as Chairman of NY Life Investments”). He joined New York Life in 2008, after 25 years as a successful business executive with deep knowledge of investment management and strong operational skills running numerous businesses.

Prior to joining New York Life, Kim served as president of Prudential Retirement, where he led its defined benefit, defined contribution and guaranteed products businesses. Before that, he was president of CIGNA Retirement and Investment Services. Kim also spent 17 years with Aetna Life & Casualty, where he rose to the position of president and CEO of Aeltus Investment Management, as well as CIO of Aetna Life Insurance and Annuity Company. Kim is a graduate of the University of Michigan and holds an M.B.A. from the University of Connecticut.

New York Life Insurance Company is a mutual life insurance company in the United States. Its companies offer life insurance, retirement income, investments and long-term care insurance services.

Data & Research January 6, 2014

Investor Sentiment Ticks Up

Interest in equities continued to grow through the end of 2013, especially with regard to retirement-based investments, year-end analysis shows.
Reported by

The John Hancock Investor Sentiment Index rose slightly in the final quarter of 2013, reaching +22 from +20 observed in Q3. The index ended 2013 four points higher than in Q4 of 2012, and seven points higher than the same period in 2011.

A bigger jump in enthusiasm was measured for retirement plan investments, index results show. At the end of Q4 2013, more than eight in 10 (83%) investors agreed that now is a good time to invest in 401(k) plans, compared with 73% favoring such investments a year ago.

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Investments made within individual retirement accounts (IRAs) showed a similar uptick. At the end of Q4 2013, 81% of surveyed investors agreed that now is a good time to invest in an IRA, up from 72% a year ago.

Looking generally at stock market investments, positive attitudes rose to 60% in Q4 of 2013, compared with 55% in the third quarter of the year. A majority of investors (56%) also remain positive on stock mutual funds—a level that is significantly higher than the fourth quarter of 2012, when 45% of respondents had favorable views of such funds.

Optimism held steady for investing in lifestyle or target-risk funds, both at 39%. Optimism around target-date funds also remained steady, at 35%.

Investors remain negatively disposed toward bonds, with 39% saying now is a bad time to invest in fixed-income instruments. Sixty-four percent said staying in cash should also be avoided at this time.

The share of investors who believe they are in a better financial position now compared with two years ago rose to 52% in the last quarter, up 10 points from the fourth quarter of 2012.

Other results included in the index report show there are several issues that are consistently worrying investors—especially those engaged in retirement planning.

A top concern, explains Bill Cheney, John Hancock’s chief economist, is being able to afford quality healthcare (66%), even though the share of investors who express healthcare concerns is down about five percentage points from the third quarter of 2013. 

Investors also frequently mention that they are at least somewhat concerned about being able to afford nursing home or long-term care if needed (59%). Others worry about running out of money in retirement (52%), and about experiencing a substantial decline in assets just before retiring (45%).

More on the survey’s results and methodology is available here.

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