Build a tailored solution with Manulife Avenue Portfolios

Transcription

1 Build a tailored solution with Manulife Avenue Portfolios 1

2 Help plan members invest with confidence and stay on track Your plan members are not all the same. They have different savings goals and investment comfort levels. They will retire at different times. When planning their retirement program, choose investment options that can help them make a choice to suit their needs. Manulife Avenue Portfolios let each of your plan members choose a complete, diversified portfolio that takes into account their planned retirement date and risk comfort level. Designed to work for your members from enrolment to retirement, the portfolios stay on track with their investment goals while gradually reducing their risk exposure as retirement gets closer.

3 Avenue Portfolios Combining the features of target date funds, which invest towards an anticipated retirement date, and asset allocation funds, which invest according to investor style, Avenue Portfolios are easy for you to set up and simple for your plan members to use. The Avenue Portfolios grid consists of 18 unique portfolios corresponding to three investor styles and six investment periods based on years to retirement. Each portfolio is aligned to a specific investor style and time horizon using a pre-set asset allocation, and a combination of investment funds that you select. Investor Style Years to retirement Conservative Moderate Aggressive 26 years or more 26 years or more 26 years or more 21 to 25 years 21 to 25 years 21 to 25 years 16 to 20 years 16 to 20 years 16 to 20 years 11 to 15 years 11 to 15 years 11 to 15 years * * Portfolio example 28% Core (Universe) bonds 14% Global Bonds 19% Canadian Large Cap. 15% U.S. Large Cap. 12% International Large Cap. 6% Global Small Cap. 6% Emerging Markets 6 to 10 years 6 to 10 years 6 to 10 years 5 years or less 5 years or less 5 years or less When they enroll, members are placed in the appropriate portfolio based on their investor style and expected retirement age. 3

4 Key benefits They re simple Plan members are guided through a simple process that helps them choose a diversified portfolio in line with their investment style and period. Automated services then keep the portfolio aligned to the chosen investment direction, and gradually reduce its risk exposure over the years as members get closer to retirement. They re flexible Choosing the funds with your advisor allows you to customize the fund selection and fee structure of your portfolios according to your company s unique needs. You have more control over the funds you are offering and the fees that members pay. They re transparent You and your plan members can see the performance and Investment Management Fees (IMFs) for each portfolio and its underlying funds, which helps simplify monitoring. Easy for you to build and manage Building portfolios that are suitable to your plan members investment styles and retirement dates is this simple: Asset allocations are pre-set within the Avenue Portfolios, based on Manulife s strategic asset allocation formula. You and your advisor populate the portfolios with funds from Manulife s i-watch program, which provides a broad selection of high quality investments in addition to rigorous oversight to ensure ongoing quality. 4

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6 The Member Investment Behaviour Review To help you manage your solution and ensure good plan governance, the Member Investment Behaviour Review acts as a report card to see if your plan s Avenue Portfolios and other investment options are being used appropriately by your members, and are performing as expected. This report can be requested through the secure sponsor site. Easy for members to use When they enroll, your plan members are guided through a simple process to determine their Avenue Portfolio. They only need to indicate their investor style Conservative, Moderate or Aggressive and the age at which they plan to retire, which will determine their investment period. They are then placed in the corresponding Avenue Portfolio. Conservative Moderate For plan members who are comfortable with investing, an option is offered alongside Avenue Portfolios that allows them to build their own investments from a menu of funds. Aggressive 6

7 Staying on track Once members are invested, two services keep their chosen portfolio on track: Automatic Asset Rebalancing Day-to-day market fluctuations have an impact on a member s asset mix within their retirement savings. This service automatically rebalances a member s asset mix once every quarter, in order to help keep their assets in line with their investment direction. Investment instructions Asset mix due to market fluctutation Asset mix after rebalancing 18% 41% 21% 30% 18% 41% 41% 49% 41% Fixed income Equities Alternatives Investor Style Lifecycle Movement This service gradually decreases a member s risk exposure as they approach retirement. Lifecycle Movement automatically shifts members from one investment period to the next as retirement approaches, while keeping them within the same investor style. Conservative Moderate Aggressive 26 years or more 26 years or more 26 years or more 21 to 25 years 21 to 25 years 21 to 25 years Your plan members can invest with confidence, knowing that their portfolio will always be in line with their investment direction, and maintain the asset allocation most appropriate to their investment style and expected retirement date over the long term. Years to retirement 16 to 20 years 16 to 20 years 16 to 20 years 11 to 15 years 11 to 15 years 11 to 15 years 6 to 10 years 6 to 10 years 6 to 10 years 5 years or less 5 years or less 5 years or less 7

8 Manulife Avenue Portfolios make it easy for you to build an investment solution that fits your plan objectives and makes investing simple for your plan members. Find out more. Contact your advisor. Manulife, the Block Design, the Four Cube Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under licence. GP5883E 10/16