Manulife Bank and Manulife Trust Deposit Products Where are your clients savings?
Where are your clients savings? Many advisors look after their clients investment and insurance needs but take a hands-off approach when it comes to their savings and debt. At best, this is a missed opportunity. At worst, it may lead to lost clients. A missed opportunity As an advisor, you have the opportunity to offer your clients premium interest rates and banking and trust products they may not be able to access on their own. If you aren t providing them with these products, you may be missing an opportunity to expand your relationship and increase your compensation. Lost clients If your clients aren t depositing their savings through you, they re doing it somewhere else. A growth strategy common to all major banks and trust companies is cross-selling other financial products to their account holders. Simply stated, they are trying to make your clients, their clients. We re your bank and trust company We see the world from an advisor perspective. This is important because our mission is to provide superior financial products and services to clients through financial advisors. With us, your clients remain your clients. Manulife Bank is a Schedule l bank that is owned by Manulife Financial, one of Canada s largest and most respected financial institutions. Since the Bank was created in 1993, we have been helping advisors provide their clients with leading-edge banking products. Manulife Trust Company is a federally chartered trust company licensed to do business in all Canadian provinces and territories. Established in 2010, it is a wholly-owned subsidiary of Manulife Bank of Canada. Manulife Trust is a member of the Canada Deposit Insurance Corporation (CDIC), as is its parent company, Manulife Bank. 2
Manulife Bank and Manulife Trust are members of Canada Deposit Insurance Corporation (CDIC). For more information on CDIC coverage, visit www.cdic.ca or call 1-800-461-2342 and ask for copies of Manulife Bank s and Manulife Trust's Deposit Registers. U.S. dollar accounts/deposits are not eligible for CDIC coverage. Make our deposit products a part of your business Here are just three ways that providing deposit products to your clients can help you succeed: 1. Eliminate the competition. Don t wait for other companies to try to cross-sell to your clients. Provide your clients with superior banking and trust products and reduce the contact they have with other institutions. 3. Grow your business. Selling Manulife Bank and Manulife Trust deposit products can help you grow your business in three ways: First, since almost everyone needs a chequing account and/or GIC, our great rates and innovative features can help you get a foot in the door with new clients. Second, when you show your existing clients how easy it is to get more for their money with our products, they may refer their friends and family to you. Third, you earn a competitive rate of compensation on all Manulife Bank and Manulife Trust deposit products. 2. Demonstrate the value you provide. Virtually all of your clients have a bank account and/or GIC but, in most cases, they re getting lower interest rates or fewer features than they want. As their financial advisor, you have the ability to offer your clients premium deposit products with higher rates and better features. 3
Advantage Account A high-interest account for all your clients Advantage Account is a high-interest bank account that can help your clients short-term savings grow, whatever their needs. A primary bank account Some of your clients will want to use Advantage Account for their everyday banking. Clients can access their money through chequing, ABM transactions, debit purchases and online transactions. And, because Manulife Bank is a member of THE EXCHANGE 1 network, they can make deposits and withdrawals at more than 2,000 bank machines across Canada. A high-interest savings account Other clients may want to maintain an account at a local bank branch and use Advantage Account to earn a great return on their short-term investment savings. These clients will appreciate how easy it is to transfer money between their existing account and Advantage Account as their needs change. 1 Manulife Bank is an authorized user of the trademark THE EXCHANGE which is owned by EDS/TransAlliance L.P. 4
Business Advantage Account In business, every dollar counts Business Advantage Account is a high-interest investment account that can help organizations maximize the growth on the cash they don t need for day-to-day operations. This account can be used by a broad range of groups such as small businesses, associations, unions, trusts, charities and not-for-profit organizations. Get a foot in the door with affluent clients Business Advantage Account is a simple, powerful tool for improving the effectiveness of organizations and it may help you to win the trust and business of the organizations leaders. Keep your existing clients happy Help your business clients address their banking and short-term investment needs and you ll reduce the chance they ll respond when your competitors come knocking. Tap into a network of potential clients Show business owners and organizational leaders how to make their money work harder with Business Advantage Account and they ll likely share this information with their network of associates and colleagues. 5
Tax-Free Advantage Account Liquidity and tax-free growth for your clients savings Tax-Free Advantage Account allows your clients to earn a high rate of interest on their savings and keep all their earnings for themselves. Saving for short-term goals A Tax-Free Advantage Account is a perfect way to save for short-term goals such as a new car or a downpayment for a home. The money can be accessed at any time for any purpose without incurring fees or taxes. Then, the full amount of the withdrawal is added back to the available contribution room for the following year so the account holder can start saving again for their next goal. Tax Free Savings Accounts became available in 2009 and any unused contribution room is carried forward to future years. Clients become eligible at age 18. A flexible alternative to registered savings Now you have another option to offer your clients for tax-sheltering their money, especially if they ve maximized their registered savings contributions. Clients will earn a great rate of interest on every dollar in the account, tax-free. And the interest will not impact income-tested government benefits such as Old Age Security or Employment Insurance Benefits. Whether it s used for the short-term or long, the Tax-Free Advantage Account provides a flexible, high-interest alternative for your clients savings. It s a great place to build a secure nest egg, tax-free. 6
Registered Advantage Account Security, liquidity and growth for your client s RRSP Registered Advantage Account takes the security, liquidity and growth offered by Advantage Account and makes it available for your client s RRSP. With Registered Advantage Account, your client earns a high rate of interest on the entire balance and their money is not locked in, so they can easily transfer it to other RRSP investments as their needs change. This high-interest RRSP account can be a key component of your client s retirement plan in the short term and the long term. A short-term solution for a busy RRSP season RRSP season can be one of your busiest times of the year. Many of your clients need personalized advice on how to allocate their RRSP contribution but you likely don t have time for detailed discussions with each client before the RRSP deadline. If this problem sounds familiar, Registered Advantage Account may be the solution. Simply park your client s RRSP contribution in Registered Advantage Account. They ll get their tax credit and their money will be safe, growing and liquid. Then, when you have time to make an appropriate long-term allocation recommendation, your client can transfer their money to another RRSP investment. A long-term investment for the secure portion of your client s RRSP For some of your clients, it makes sense to hold a portion of their RRSP in a low-risk investment. If you ve used Money Market funds in the past, you may want to consider moving that money to Registered Advantage Account. Registered Advantage Account offers similar security and liquidity to a Money Market fund but will likely provide the client with a better long-term return. 7
$US Advantage Account and $US Business Advantage Account Growth and liquidity for your clients U.S. cash As the majority of Canadians live within a few hundred kilometres of the U.S. border, it s likely that many of your clients keep some cash in a U.S. bank account. However traditional U.S. bank accounts pay little or no interest. You can help them do better. Snowbirds A small but growing number of Canadians spend several weeks each winter in a southern U.S. state. These clients typically maintain a U.S. account, in Canada. Encourage these clients to keep their money in a $US Advantage Account during the months they re living in Canada to grow their money while still protecting themselves from currency fluctuations. Investors Conservative investors may wish to hold a portion of their money in cash. Depending on the size of their cash holdings, it may be advisable to diversify outside of Canadian-dollar investments. Show these clients how holding a portion of their cash in a $US Advantage Account can provide them with currency diversification while continuing to provide them with security and a good return on their investment. Business owners For many business owners, the United States is a significant source of customers and/or suppliers. Most business owners in this situation protect themselves from the risks of fluctuating exchange rates by holding cash in a U.S. account. With a $US Business Advantage Account these clients can keep their cash working at a great rate, and then transfer it back to their U.S. operating account when it s needed. 8
Investment Savings Account and $US Investment Savings Account A high-interest solution for your on-book clients Investment Savings Account and $US Investment Savings Account are high-interest investment accounts available on your dealer s trading system for your on-book (nominee name) clients. The accounts, which are easily integrated into a broader investment portfolio, provide your clients with liquidity, security, and rates that are typically higher than money market funds. As the cash portion of a diversified portfolio Most advisors recommend that clients hold a portion of their portfolio in a cash investment for proper diversification. As clients approach and enter retirement, the portion allocated to a cash investment typically increases. However, just because your clients need a secure investment doesn t mean they should settle for a sub-par return. Investment Saving Account offers a great rate of return with the security and liquidity your clients need. As a core registered holding Investment Saving Account can be held in a broad range of registered accounts, including RRSPs, RESPs, RRIFs and LIFs. These accounts can provide the growth and security required for the cash component of a registered plan during the accumulation phase and the liquidity needed to support an income stream in retirement. Investment Savings Accounts are available through both Manulife Bank and Manulife Trust. As a holding account during market volatility Occasionally, you may recommend that your clients liquidate a portion of their investments until a more attractive investing opportunity presents itself. While your clients are "out of the market," keep their money working with Investment Saving Account. And, when the time is right to move their money back into the market, it s easy to move out of the account and into another investment. 9
GICs and Short-term Deposits Sometimes the simplest solutions are the most rewarding Compared to sifting through hundreds of mutual funds before making a recommendation to a client, providing a GIC is a relatively simple task for most advisors. But even though a GIC is not a complex product, it s important to find the right combination of security, rate and flexibility for your client. In each case, we can meet your clients investment needs. Security Dominion Bond Rating Service has assigned R-1 (middle) for Manulife Bank s short-term deposits and A (high) for its long-term deposits.* These ratings are similar to the ratings of Canada s major banks. Visit www.dbrs.com for more information on these ratings. *May 11th, 2011 Rate Our GIC and Short-term Deposit rates are consistently among the highest available typically significantly higher than the retail rates posted by Canada s big five banks. Better still, we offer a number of rate guarantees that help you ensure your clients get the best possible rate. Flexibility Clients can choose from cashable Short-term Deposits (30-364 days) and non-cashable Guaranteed Investment Certificates of 1-5 years. With GICs, clients can also decide how they want to receive their interest payments monthly, semi-annually, annually or compounded. When your clients are looking for the guaranteed growth that a GIC can provide, show them how Manulife Bank and Manulife Trust can help them get more for their money. Tax-Free GIC Your clients can enjoy the guaranteed growth of a GIC and they can keep that growth, tax-free. The Tax-Free GIC gives your clients security and competitive rates and they don t need to share any of it with the taxman. In addition, the interest will not impact income-tested government benefits such as Old Age Security or Employment Insurance Benefits. 10
About Manulife Trust Manulife Trust Company (Manulife Trust) is a federally chartered trust company licensed to do business in all Canadian provinces and territories. Established in 2010, it is a wholly-owned subsidiary of Manulife Bank of Canada (Manulife Bank). Manulife Trust is a member of the Canada Deposit Insurance Corporation (CDIC), as is its parent company, Manulife Bank. Certain deposits with Manulife Trust may be eligible for CDIC coverage, including its high-interest savings accounts and GICs which are available in nominee name. Please visit cdic.ca for more information. With Manulife Trust offices in Waterloo, Ontario and Halifax, Nova Scotia, advisors and clients will continue to experience the excellence in service and familiar processes they ve come to expect from working with Manulife Bank. About Manulife Bank Manulife Bank is a Schedule I federally chartered bank and a wholly-owned subsidiary of The Manufacturers Life Insurance Company. Established in 1993, it was the first federally regulated bank opened by an insurance company in Canada and was created to assist financial advisors provide fully-integrated financial plans to their clients in all provinces and territories. To see Manulife Bank s most recent financial statement, visit the OSFI website at www.osfi-bsif.gc.ca. Standard & Poor s and the Dominion Bond Rating Service (DBRS) consistently assign Manulife Bank with some of their highest ratings for financial stability. For details about the ratings, please see the About Us section of manulifebank.ca. 11
For full product details, advisor support, forms and marketing materials, call 1-800-567-9170 or visit www.manulife.ca/repsource Manulife, Manulife Bank, the Manulife Bank For Your Future logo and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license. AB0357E ( 06/2011) FOR MORE INFORMATION, PLEASE VISIT MANULIFEBANK.CA