2004 News Releases

Hong Kong– Manulife Hong Kong’s professional Mandatory Provident Fund (MPF) services took pole position again by maintaining the highest overall levels of satisfaction among employees and self-employed MPF scheme members in a recent customer-satisfaction survey of 1,097 MPF members.

The survey, conducted by Marketing Decision Research (Pacific) Ltd., also showed that among the top five MPF service providers in Hong Kong*, Manulife achieved the highest rating in six out of seven key factors that drive customer service satisfaction, including investment performance, enrolment/ termination arrangements, contribution arrangements, MPF intermediaries, orientation and communication channels.

“This was the second in what is intended as an ongoing ‘tracking’ study to measure how we and other providers are faring in terms of customer satisfaction with our MPF services,” said Nick Crouch, Vice President, Employee Benefits Operation, Hong Kong, Manulife (International) Limited. “Even though our overall performance in the 2002 survey was rated as unparalleled in the market, the findings drove us to further improve in certain aspects of our service. It is gratifying to see these improvements reflected in increased satisfaction ratings.”

In addition to ranking highest in six of the seven key customer service-satisfaction drivers, Manulife also took a huge step forward in maintaining customer loyalty among its MPF scheme members who are self-employed professionals. Only two per cent of the respondents said they were likely or somewhat likely to switch providers, down from 14 per cent in 2002.

*According to Watson Wyatt’s Annual MPF Watch Report 2003 in terms of assets under master trusts in MPF as at December 31, 2003.

Company’s scheme members were found to be very satisfied with its services as only four per cent claimed they were dissatisfied, compared to the market average of 12 per cent.

The survey also revealed another interesting phenomenon — as the concept of retirement savings becomes increasing popular, more and more members are starting to realise that mandatory contributions are simply inadequate for retirement lives. But although 65 per cent of the respondents recognised the inadequacy of mandatory contributions, not many of them selected voluntary contributions as a means to bridge the gap. It was found that 75 per cent of the respondents were aware of the voluntary-contribution alternative, but only four per cent chose to make them

Highlights of the findings
(based on comparison among the top five MPF service providers in Hong Kong):

• Overall satisfaction – Manulife continued to lead the market in terms of overall satisfaction with current service provider, with a mean satisfaction rating of 3.61, against a market average of 3.47. Manulife is also found to be the only service provider to have more than half of its customers (52 per cent, against a market average of 39 per cent) claiming they would consider recommending the Company to their friends.


• MPF intermediary – Respondents were most satisfied with Manulife’s insurance advisors as MPF intermediaries – with the highest rating of 3.80 on this factor against a market average of 3.60. Manulife’s intermediaries were given the highest ratings across all seven measuring attributes, and were singled out for their professionalism and after-sale services.


• Investment performance – Respondents found Manulife’s MPF investment performance has made significant improvements since 2002. The high level of satisfaction among respondents was reflected in its rating of 3.55 against a market average of 3.36. The Company led the market in each of the three attributes contributing to overall investment performance — investment choice, investment return in line with risk level, and fund management.


• Enrolment/termination arrangements – The clear procedures and timely arrangement of Manulife’s enrolment and termination arrangements had contributed to its scoring of the highest satisfaction rating in the market. The Company went further beyond its good performance in 2002 to receive an overall rating of 3.75 against a market average of 3.55.


• Preserved accounts – Respondents showed that they were increasingly aware of the need to consolidate and streamline their preserved accounts, with 33 per cent keeping their preserved accounts with either their current employer’s service provider or another service provider, compared to 25 per cent in 2002. Sixty-one per cent of respondents stated they preferred to consolidate all their accounts with one provider, compared to 57 per cent in 2002.

“This survey makes clear the importance of attending to customers with quality service that caters to their needs,” said Mr. Crouch. “That has always been our guiding principle and our aim going forward is to retain our top position in customer satisfaction through continued innovation, flexibility and top-notch performance.”

Manulife’s outstanding MPF service also bagged Next Magazine’s Top Service Award (MPF service category) in 2004, which it has won since the category award began in 2002. The Company also received ISO 9001 accreditation in 2003 for its provident funds operation, further underlining the quality of Manulife’s administrative and customer services.

As at June 30, 2004, Manulife’s pension accounts stand at more than 576,000, with average monthly contributions of HK$350 million. According to the MPF Watch Report 2003 published by Watson Wyatt, Manulife is currently the second-largest MPF provider in Hong Kong in terms of assets under master trusts.

About Manulife
Manulife offers provident funds services in Hong Kong through its three operating companies: Manulife (International) Limited, Manulife Provident Funds Trust Company Limited and Manulife Asset Management (Hong Kong) Limited. All are members of the Manulife Financial

group of companies. 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$360 billion (approximately HK$2,096 billion) as at June 30, 2004.

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 at www.manulife.com.

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For more information, please contact:
Helena Lee / Jeanie Ho
Manulife (International) Limited
Tel: 2202 1050 / 2510 3191
Fax: 2234 6875
Email: helena_lee@manulife.com
jeanie_ho@manulife.com