Avenue portfolios™A powerful investment solution for members

In recent years the investment marketplace has seen substantial growth in the number of target year (lifecycle) funds, which invest towards an anticipated retirement date, and lifestyle funds, which invest according to investor profile. Avenue portfolios™ combine these two approaches by enabling group plan members to choose investments appropriate to their investor profile and their investment period, while maintaining the desired asset allocation over a long term.

Avenue portfolios empower members to invest with more confidence and keep their investments on track over the long term.

Manulife proposes an overall asset allocation strategy. Plan sponsors and their advisors build portfolios using the investment funds they have chosen; they can select a predesigned portfolio matrix and fund roster, or customize their own matrix and roster using our Portfolio designer software.

PortfoliosArranged in a matrix, each portfolio has investment instructions designed to provide a level of risk appropriate to a particular combination of investor profile and investment period, e.g.: Moderate – 15 to 20 years.

Asset rebalancingThis service automatically rebalances a member’s asset mix on a scheduled basis (once every quarter), in order to keep the member’s assets in line with their investment instructions1.

Asset rebalancing may lead to an increase in the allocation to guaranteed funds, if these are included in a member’s investment instructions. However, it does not lead to a decrease of the assets allocated to guaranteed funds, so as to avoid causing a Market Value Adjustment.

1 Members may activate or deactivate Asset rebalancing and can also provide their own target retirement age, using the enrolment form, the VIP Room website or by calling Manulife. Plan sponsors may choose not to offer their members the Asset rebalancing service.

Choosing one is as simple as clicking a mouse, or checking a box on an enrolment form.

Lifecycle movement

Investor profile

Inve

stm

ent p

erio

d

Conservativemore than 25 years

Conservative20 to 25 years

Conservative15 to 20 years

Aggressive 15 to 20 years

Moderate 15 to 20 years

Aggressive20 to 25 years

Moderate20 to 25 years

Aggressivemore than 25 years

Moderatemore than 25 years

Conservative10 to 15 years

Aggressive 10 to 15 years

Moderate 10 to 15 years

Conservative5 to 10 years

Aggressive 5 to 10 years

Moderate 5 to 10 years

Conservativeless than 5 years

Aggressive less than 5 years

Moderate less than 5 years

Before After

55 %22%

11%

12%

45 %

25%

15%

15%

Aligned with your investment options

Canadian Equity – Manager A

Bond – Manager B

US Equity – Manager C

International Equity – Manager D

Lifecycle movementThis service automatically shifts a member to the appropriate portfolio within the same investor profile as the target date to move from one investment period to the next approaches1. Target dates are determined based on the member’s target age.

Allows members to provide their own target age when they wish to retire or convert their savings into income (the default age is 65)

¬ May include Asset rebalancing to align the member’s asset mix with the new portfolio’s investment instructions2

¬ Provides advance notification by mail to remind members that:

– They have activated Lifecycle movement, and may deactivate it if they wish

– They are nearing a new investment period, and their investment instructions will be changed (and their assets rebalanced, if applicable) approximately 30 days later

Plan sponsor reports on member investment behaviourThe reports, which can be requested through the VIP Room for plan sponsors, provide an overview and a detailed report on member investment behavior for each plan:

¬ Number of members, totals and breakdowns for assets invested, for each of the three approaches – Avenue portfolios, custom (member-designed) mixes and default investment options

¬ Detailed information on each portfolio, including the investment instructions, assets in each fund, total assets, performance, blended Investment Management Fees (IMF), number of members using the portfolio

¬ Illustration of member investment behaviour by age range

Detailed information for membersOn statements

¬ Provides details on the current investment instructions for each account, specifies the investor profile and investment period if an Avenue portfolio has been selected

¬ Indicates the member’s target age

¬ Indicates whether Asset rebalancing and/or Lifecycle movement are active for each account

¬ Shows the Avenue portfolios available to the member

Online in the VIP Room for members ¬ Provides the same information shown on the member statement, in the Manage your plans > Investment instructions section

¬ Enables members to change investment instructions and provide a target age online

¬ Activates Asset rebalancing and Lifecycle movement by default (members may deactivate these services) whenever an Avenue portfolio is clicked

¬ Provides information on the performance and fees of each fund and overall portfolios

1 Members may activate or deactivate Lifecycle movement and can also provide their own target retirement age, using the enrolment form, the VIP Room website or by calling Manulife. Plan sponsors may choose not to offer their members the Lifecycle movement service.

2 The plan sponsor may choose not to include this service as part of Lifecycle movement.

Lifecycle movement

Investor profile

Inve

stm

ent p

erio

d

Conservativemore than 25 years

Conservative20 to 25 years

Conservative15 to 20 years

Aggressive 15 to 20 years

Moderate 15 to 20 years

Aggressive20 to 25 years

Moderate20 to 25 years

Aggressivemore than 25 years

Moderatemore than 25 years

Conservative10 to 15 years

Aggressive 10 to 15 years

Moderate 10 to 15 years

Conservative5 to 10 years

Aggressive 5 to 10 years

Moderate 5 to 10 years

Conservativeless than 5 years

Aggressive less than 5 years

Moderate less than 5 years

Avenue portfolios offer the following key benefits:

Transparencyinvestment fund performance and fees are provided for easy monitoring

Fairnessblended fees for conservative portfolios are typically less than for more aggressive ones

Affordabilityno duplicate fees (e.g.: valuation and audit) – often charged by other providers offering similar “fund of fund” arrangements

Manulife neither suggests nor recommends any investment approach or fund in particular, whether it is an Avenue portfolio™ or a personal investment selection, whether or not it includes the Lifecycle movement and/or Asset rebalancing services. Market‑related funds are not guaranteed and the value of a member’s units will vary according to market conditions and the success of the funds’ manager. We are not responsible for the returns of the selected investments. Furthermore, the selection of an Avenue portfolio, with or without the Lifecycle movement and/or Asset rebalancing services, is no promise or guarantee, explicit or implied, that selected investments will generate a satisfactory retirement income.Manulife, Manulife Insurance, 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.GE11157E SLX GS 08/17

Find out more manulife.ca

Retirement Investments Insurance