Manulife Beefs Up Investment Platform

May 1, 2003 (PLANSPONSOR.com) - Manulife USA has enhanced its Venture Series 401(k) and pension products, its Venture Annuities, and its Venture Variable Life Insurance products.

According to an announcement, the enhancements were made to the Manufacturers Investment Trust (MIT), which provides the underlying investment options for the products.

The new additions fall into two categories: strengthening style boxes by adding portfolios offering differing investment styles as well as introducing new asset classes to the Manulife mix. To increase the availability of a variety of investment approaches, Manulife is adding four American Funds Insurance Series portfolios to its Venture Annuities. These variable funds have the same investment manager as the American Funds, which utilize a Multiple Portfolio Counselor System that allows each portfolio counselor to implement his or her best investment ideas and helps to provide diversification for the overall portfolio. The funds include:

  • The American Growth Trust will invest exclusively in the American Funds Growth Fund; which seeks to make shareholders’ investments grow by investing primarily in common stocks of companies that appear to offer superior opportunities for growth of capital.
  • The American International Trust will invest exclusively in the American Funds International Fund, which seeks to make shareholders’ investments grow by investing primarily in common stocks of companies located outside of the United States.
  • The American Growth-Income Trust will invest exclusively in the American Funds Growth-Income Fund, which seeks to make shareholders’ investments grow and to provide the shareholder with income over time by investing primarily in common stocks or other securities that demonstrate the potential for appreciation and/or dividends.
  • The American Blue Chip Income and Growth Trust will invest exclusively in the American Funds Blue Chip Income and Growth Fund, which seeks to produce income exceeding the average yield on US stocks generally (as represented by the average yield on the Standard & Poor’s 500 Composite Index) and to provide an opportunity for growth of principal consistent with sound common stock investing by investing primarily in common stocks of larger, more established companies based in the US with market caps of $4 billion and above.

Other Investment Additions

In addition to the American Funds Insurance Series portfolios, Manulife USA is also tacking on the following new portfolios to its investment platform.

  • The Large Cap Value Trust, subadvised by Mercury Advisors, seeks long-term capital growth by investing at least 80% of its net assets in common stocks of large-cap companies found on the Russell 1000 Value Index.
  • The Emerging Growth Trust, subadvised by MFC Global Investment Management (USA) Limited, seeks superior long-term rates of return through capital appreciation by investing primarily in equity securities of small-cap US companies.
  • The Mid Cap Core Trust, subadvised by AIM Capital Management, Inc., seeks capital appreciation by investing at least 80% of its assets in equity securities, including convertible securities, of mid-cap companies.
  • The Quantitative All Cap Trust, subadvised by MFC Global Investment Management (USA) Limited seeks long-term growth of capital by investing primarily in equity securities of US companies. The trust will generally focus on equity securities of US companies across the three market cap ranges –¬†large, mid, and small.
  • The Special Value Trust, subadvised by Salomon Brothers Asset Management Inc, seeks long-term capital growth by investing at least 80% of the value of its net assets (plus any borrowings for investment purposes) in common stocks and other equity securities of small-cap US companies.
  • The Small Cap Opportunities Trust, subadvised by Munder Capital Management, seeks long-term capital appreciation by investing primarily in equity securities of small-cap companies.

Finally, b y adding the following two portfolios, Manulife said MIT’s asset allocation strategy is enhanced:

  • The Real Return Bond Trust, subadvised by PIMCO, seeks maximum real return, consistent with preservation of real capital and prudent investment management by investing at least 80% of its net assets in inflation-indexed bonds of varying maturities issued by the US and non-US governments, their agencies, or instrumentalities and corporations.
  • The Natural Resources Trust, subadvised by Wellington Management Company, LLP, seeks long-term total return by investing at least 80% of its net assets in equity and equity-related securities of natural resource-related companies worldwide.

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