Manulife Launches Goals-Based Investing

“Game-changer”: Manulife the first financial institution to offer Liability-Driven Investment for Canadian retail market

Waterloo, ON (Sept. 26, 2018) – Manulife is pleased to announce the launch of an innovative goals-based investing tool powered by advanced data analytics and a liability-driven investing strategy aimed at making Canadians’ decisions easier as they look to retirement.

Manulife Goals-Based Investing (GBI) is a unique program that uses variables such as age, income, health factors and postal code to help customers get a clearer picture of the income they may need at retirement. The GBI program also includes a built-in investment solution designed to help clients with their retirement income goals.

“Our exclusive technology and analytics will help customers feel better informed about the income they may need during retirement,” said Cindy Forbes, EVP and Chief Analytics Officer, Manulife. “This program will not be easy to replicate. This is definitely a game changer.”

A key element of Manulife Goals-Based Investing is Dynamic Liability-Driven Investing (LDI), an institutional investment strategy which Manulife is bringing to Canadian retail investors for the first time with the Goals-Based Investing Solutions mutual funds. Dynamic LDI matches an individual’s future income need with a corresponding payment of income. For customers, this means that Manulife Goals-Based Investing will not only help better project the income needed during different phases of retirement, but also tailor an investment strategy designed to provide investors with a higher degree of confidence in the projected minimum income to help meet their retirement income goals.

“We’re passionate about leveraging industry-leading technology to delight our customers, which is why we are introducing this program,” said Bernard Letendre, Head of Wealth and Asset Management, Manulife Canada. “Through simple questions advisors will be able to provide an actionable retirement plan that’s personalized to a client’s unique needs. ”

Manulife Goals-Based Investing will be available through Manulife Securities Advisors starting October 1.

Manulife launches “game-changer“ Goals-Based Investing (Manulife Financial Corporation)

The GBI Program tool is for educational and illustrative purposes only. Projected expenses and income illustrated by the GBI Program tool are estimates and not guaranteed and should not be construed as a contractual undertaking. Projected income levels (cash flows) are based on investments in mutual fund securities and assume there will be cash flows through redemptions. If redemptions exceed the GBI goal suggested payout percentages, an investor will eventually deplete their investment and will no longer receive income. Investors and their advisors are responsible for considering what meets an investor’s investment needs, and for determining their appropriate investment strategy based on their finances and other circumstances.

The GBI Program helps investors meet their projected minimum income with a higher degree of confidence. The term “confidence” refers to the probability that the investment strategy used in the GBI Program will provide at least the total projected minimum income (as shown in the GBI Program tool) over the selected retirement period. It assumes an investor makes the initial and future contribution amounts they selected and uses interest rates current on the date of the illustration. Depending on an investor’s specific circumstances, the projected minimum income may be insufficient to cover projected expenses, which may impact their GBI goal status.

The confidence assessment is based on simulated outcomes, using historical volatility and correlation parameters to forecast returns. Simulations have been developed for sample cases that may or may not be representative of an investor’s particular situation. Outcomes may differ for several reasons, including but not limited to changes in the market value of underlying assets, interest rate movements, credit defaults, changes to the timing or amounts of purchases, switches and redemptions, and other unforeseen circumstances. Investors should consult with their advisor to understand these outcomes and their specific circumstances.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Investors should read the fund facts as well as the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The Goals-Based Investing Solutions are managed by Manulife Investments, a division of Manulife Asset Management Limited. Manulife, Manulife Investments, and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

About Manulife Investments

Manulife Investments, a division of Manulife Asset Management Limited, builds on 125 years of Manulife’s wealth and investment management expertise in managing assets for Canadian investors. As one of Canada’s leading integrated financial services providers, Manulife Investments and its affiliates offer a variety of products and services including exchange traded funds, segregated fund contracts, mutual funds and guaranteed interest contracts.

About Manulife

Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. We operate primarily as John Hancock in the United States and Manulife elsewhere. We provide financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. At the end of 2017, we had about 35,000 employees, 73,000 agents, and thousands of distribution partners, serving more than 26 million customers. As of June 30, 2018, we had over $1.1 trillion (US$849 billion) in assets under management and administration, and in the previous 12 months we made $27.6 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 100 years. With our global headquarters in Toronto, Canada, we trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges and under ‘945’ in Hong Kong.

Source: Manulife Financial Corporation

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