(November 22 – 16:05 ET) – Manulife Financial is introducing the Manulife Insured Portfolio Funds. The seg fund package will allow investors to build customized guaranteed income fund portfolios to fit their own needs and financial goals.

The package, including a new series of guaranteed income funds available January 1, will offer a range of death-benefit guarantee options, a 75% maturity guarantee and reset selections, while also allowing investors to choose from a broader 50-fund lineup that includes 18 new funds.

“Since Manulife broke new ground with this product in 1997, we’ve continually listened to our customers,” said Harold Hugel, vice president, savings and retirement services at Manulife. “Manulife Insured Portfolio Funds will bring together what they’re looking for — a strong blend of quality, choice and security with a new generation of segregated funds.”

Recent changes to government regulations will impact capital requirements for the seg funds and affect underlying costs, particularly for 100% maturity guarantees currently offered by the industry, Hugel said. Effective March 1, existing products with 100% maturity benefit guarantees will face an increase in management expense fees, reflecting increased costs to provide full maturity guarantees.

On a limited basis, existing customers can continue to invest new funds into the 100% maturity guarantee funds offered through their current portfolio until April 1, 2001.

Effective January 1, Manulife’s new series of investment funds will offer a 75% maturity guarantee, full death benefit guarantees and lower management expense costs.

Manulife says a new investor Web site — www.insuredportfoliofunds.com — will be available in January to help educate investors about the benefits of segregated funds. The Web site will offer answers to common questions about segregated funds, timely quotes on unit values and rates of return.
-IE Staff