“It also gives consultants access to this segment of the market – some don’t currently have that access. Ultimately, this gives them more choice and flexibility in supporting their customers. “
With one bond fund and two dividend funds, Manulife is the first Canadian financial institution to offer ETFs in the “single asset” category in a separate fund contract. They are available in the contracts Manulife Private Investment Pools (MPIP) – MPIP Segregated Pools and Manulife GIF Select InvestmentPlus. While the Manulife Smart Corporate Bond ETF segment fund aims to help investors generate income while preserving capital, the Manulife Smart Dividend ETF and Manulife Smart US Dividend ETF segregated funds aim to generate steady income through dividends.
The single asset focus, Pappas added, enables the consultants to tailor their exposure to the unique needs of each client. By focusing on a specific market area, be it dividend-paying companies or corporate bonds, consultants can use these as building blocks for building a customer portfolio. She explained, “Some portfolio solutions may have a 60 to 40 allotment, but depending on the client profile, an advisor may find that 70 to 30 is more appropriate. There is not always a one-size-fits-all portfolio solution. This gives them the opportunity to customize and is supported by the strength of our portfolio management teams. “
ETFs account for around $ 753 million1 of total $ 165 billion in Seg funds in Canada, but it’s an area that is growing rapidly. In addition, Pappas said Manulife was able to “sharpen its pencils for a very compelling price”. The management expense ratios for the MPIP Segregated Pools product range from 1.57% (corporate bond) to 2.14% (US dividend), while the range on the InvestmentPlus side is 1.96% to 2.5%.2.
She added, “We believe that combining Manulife’s high performing ETFs with the benefits of a separate fund contract gives clients more choice and flexibility to meet their financial goals. We are very excited about this new offer and believe that it will be very well received by customers and consultants. “