Your investments should always suit you, no matter your age or your approach to investing. When you enrolled in your group program you chose investment instructions for your contributions that were a good fit with your comfort level for risk and the amount of time you had to grow your savings. What suited you then might not be as appropriate later on, however; the investments you would choose at age 45 probably won’t be the same as those you might have chosen at age 25, even if your comfort level for risk were to remain moderate throughout that period.

As your situation changes over time, so should the way you invest your money. Lifecycle Movement is a service that helps you adjust your investments as you move through your investment lifecycle. It takes into consideration your current age, your target age, your investor profile and your investment period.

Definitions:

• Target Age

  Your target age is the age at which you expect to retire or convert the savings in your group program into income. The assumed target age is 65; if you wish to provide a different target age you can do so at enrolment or at a later date using your enrolment form, the Manage your plans > personal data section of the VIP Room, or by calling Manulife at 1-800-242-1704.

• Investor Profile

  Your investor profile indicates how comfortable you are when it comes to investment risk, i.e. whether you are a conservative, moderate or aggressive investor by nature. You can determine your profile using the Investor profiler questionnaire.

• Investment Period

  Your investment period is the time during which your savings can accumulate.

How does it work?

As you move from one investment period to the next, for example from ‘More than 25 years’ to ‘Between 10 and 25 years’, Lifecycle Movement changes your Avenue portfolio (for future deposits) to a mix that is more age-appropriate within the same investor profile. At the same time it will rebalance your asset mix (your current holdings) to match the new Avenue portfolio.

How will I know if the service is active for my account(s)?

You can view this information on your account statements or in the investment instructions section of the VIP Room.

Can I activate or deactivate Lifecycle Movement at any time?

When you select an Avenue portfolio, the Lifecycle Movement service is automatically activated. If you wish to deactivate the service you can do so when you enroll or at any time afterward using the investment instructions section of the VIP Room (by un-checking the box below the Avenue portfolios), or by calling Manulife at 1-800-242-1704.

How will I know when Lifecycle Movement will take place?

The timing of the Lifecycle Movement is based on your current age and your target age. Approximately 30 days before you are due to move from one investment period to the next, you will receive a letter reminding you that your Avenue portfolio will be changed, and your assets rebalanced to match the new mix.

When you receive this letter you should review your situation. You may be content to let the movement go ahead as described, or you may wish to change your target age, choose a mix with a different investor profile, or deactivate Lifecycle Movement; you can make these changes in the investment instructions and personal data sections of the VIP Room, or by calling Manulife at 1-800-242-1704. If you do not make any changes, the movement will proceed automatically as described in the letter.

Why is it important to know my target age?

The difference between your current age and your target age determines your investment period. For example, if you are 40 years old today and you plan to stop working at age 64, you have an investment period of 24 years. It is important to know your target age so that you can choose an Avenue portfolio that has an appropriate investment period, and so that Lifecycle Movement will be performed at the appropriate times.