2009 News Releases

 Manulife encourages MPF members to be prepared and equipped for Member Choice

Hong Kong - Manulife (International) Limited (“Manulife”) today released the results of a survey of its Mandatory Provident Fund (MPF) members. Among the survey findings was the indication by 43 per cent of the survey respondents that they would switch or make changes to their MPF investment portfolios in response to wide market fluctuations or unsatisfactory fund performance. This was particularly pronounced amongst those with lower incomes (32 per cent in the HK$20,000 or below monthly income bracket). Only six per cent said that they switch periodically without timing the market.

With a wider range of opportunities becoming available to MPF members through the upcoming Members Choice, Manulife is encouraging and assisting members to make informed investment decisions for their long-term retirement savings by making use of a wide range of educational and investment information available in the market.    
 

The survey results also reflect that MPF members feel insecure about their retirement savings and investment decisions:   40 per cent survey respondents said they are unsure if they have enough wealth to support their retirement living expenditures with their current pattern of savings, and 45 per cent consider themselves as not having enough wealth.

“Unlike short-term investments such as stocks, the MPF is a long-term investment tool designed for members to save and invest to achieve a stable source of retirement funds over and above cyclical market fluctuations. A short-term ‘punting’ approach does not take into account things such as dollar-cost-averaging, which helps reduce market risk through the systematic purchase of securities at predetermined intervals and set amounts. MPF members are advised to take a balanced long-term view, to review their own portfolio at least once every year, and always manage their MPF portfolio by reviewing against their life cycle needs, risk tolerance level and long-term investment objectives,” suggested Alan Merten, Vice President of Employee Benefits at Manulife.

The findings suggest that MPF members may not have invested enough time in arming themselves with enough knowledge on long-term investment strategies.   Since the MPF system was introduced in 2000, the Hong Kong government and the industry have stepped up numerous educational efforts to help members understand the benefits of MPF and make informed investment decisions.

As one of the leading MPF providers and industry experts, Manulife has also provided the following information and communications channels to help members plan and manage their MPF portfolio and stay abreast of the latest developments.

To ensure that members are better informed about their MPF fund investments, Manulife provides dynamic online fund pricing tools that allow customers to review and download the latest and historical fund prices for analysis, and to draw up their own charts and graphs. It also broadcasts bimonthly webcasts to keep employers and employees informed of the latest market developments and outlook.

Its online retirement calculator – SureSteps Retirement Planner – on its website www.manulife.com.hkhelps customers estimate how much money they will need for retirement, and identify the level of risk for investment.

In addition, through different newsletters, seminars and one-on-one customer meetings, Manulife also keep customers updated and well-informed of market developments.

“Given Hong Kong’s busy lifestyle, people are increasingly turning to online tools. This is proven from the warm reception of the various online tools that Manulife offers.   These tools will be increasingly important as MPF members are allowed more choices to choose their preferred providers for new contributions starting from 2011.  

“At Manulife, we are dedicated to continuously upgrading our services in order to assist employers manage MPF contributions, as well as to help employees manage their MPF portfolio and make informed retirement planning and investment decisions,” noted Doris Chan, Assistant Vice President, Sales & Marketing of Manulife’s Employee Benefits business.

Mr. Merten further underlined Manulife’s strategy to help members equipped for the opportunities brought from Member Choice, “Going forward, Manulife will continue to strengthen member education and information platforms, to help members stay updated and get well-prepared to yield the benefits brought forth by Member Choice.” 

About the Survey
Manulife conducted an online survey between May and July 2009. The results were compiled based on 1,400 respondents. In an effort to show its care for the community, Manulife also donated a total of HK$ 50,000 to the Hong Kong Society for the Protection of Children for the response it received to the survey.

About Manulife (International) Limited
Manulife (International) Limited is a member of the Manulife Financial group of companies. Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 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$421 billion (approximately HK$2,805.7 billion) as at June 30, 2009.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK.

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Media Contact:
Lily Chan
Manulife (International) Limited
Tel: (852) 2202 1284
Fax:(852) 2234 6875
E-mail: lily_wk_chan@manulife.com