Boomers see need for protection and potential market growth
TSX/NYSE/PSE: MFC; SEHK: 0945
TORONTO, June 3 /CNW/ - In less than 20 months since its launch, deposits
of GIF Select featuring IncomePlus have hit $5 billion as many Canadians move
to save, protect and grow their retirement savings using Canada's first
Guaranteed Minimum Withdrawal Benefit (GMWB) product.
"Canadians are showing that they see a definite need for this type of
product in their financial plans, which mirrors the strong appeal we've seen
for such products in the U.S.," said J. Roy Firth, Executive Vice President,
Manulife Financial. "Popularity of these products with Canadians speaks to the
current mindset of today's boomer - they want protection when markets are
volatile, as we've seen recently, and growth when markets are good. This
product gives them that, and more."
Launched in October 2006 by Manulife Investments, IncomePlus appeals to
Canadian boomers entering the "Retirement Risk Zone" -- the five-to-ten years
before and after they reach retirement -- when their portfolios are most
vulnerable to market downturns and volatility. IncomePlus provides guaranteed
monthly payments independent of when an investor retires in the market cycle,
as well as growth potential, flexibility and control.
"One of Manulife's learnings from our 2004 purchase of John Hancock in
the United States has been that Canadians need access to products popular in
other countries," added Mr. Firth. "Manulife operates in 19 countries, so we
are constantly looking for ways to help Canadians manage their finances.
IncomePlus is one of those success stories, as well as Manulife One, our
mortgage product launched in 1999 based on successful products offered in
Australia and Britain."
In October 2007, Manulife Investments enhanced IncomePlus to provide
investors with guaranteed monthly income for life, to address a growing
financial concern among older Canadians of outliving their savings. With
IncomePlus, investors have downside protection for their principal investment;
upside potential that can increase payments for life; flexibility and control
over investments with complete access to the market value of their funds at
anytime if needed.
In addition, investors now receive a five per cent bonus on their
guaranteed income for each year they don't make a withdrawal, for up to 15
years. That means investors can better plan for retirement knowing that their
guaranteed income for life can increase each year, regardless of market
IncomePlus includes a wide range of funds managed by some of the top fund
managers in Canada. The Canadian Investment Awards has also recently
recognized IncomePlus as a powerful retirement solution awarding IncomePlus
with "best new initiative" in 2007. In addition, Manulife is the only
financial institution in Canada with a "AAA" S&P credit rating to offer a GMWB
For more details, please visit Manulife Investments' website at:
About Manulife Investments
Manulife Investments is the brand name describing certain Canadian
subsidiaries and operating divisions of Manulife Financial Corporation that
offer personal wealth management products and services in Canada. As one of
Canada's leading integrated financial services providers, Manulife Investments
offers a variety of products and services including segregated funds, mutual
funds, annuities and guaranteed investment contracts.
About Manulife Financial
Manulife Financial is a leading Canadian-based financial services group
serving millions of customers in 19 countries and territories worldwide.
Operating as Manulife Financial in Canada and Asia, and primarily through John
Hancock in the United States, the Company offers clients a diverse range of
financial protection products and wealth management services through its
extensive network of employees, agents and distribution partners. Funds under
management by Manulife Financial and its subsidiaries were Cdn$400 billion
(US$389 billion) as at March 31, 2008.
Manulife Financial is one of two publicly traded life insurance companies
in the world whose rated life insurance subsidiaries hold Standard & Poor's
Rating Services' highest "AAA" rating.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE,
and under '0945' on the SEHK. Manulife Financial can be found on the Internet
For further information:
For further information: Media contact: Tom Nunn, Manulife Financial,
(519) 594-8578, firstname.lastname@example.org