Manulife Bank of Canada

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• Manulife Bank of Canada

Investment Forum - CalgaryApril 22, 2009
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Get ahead in any market!

• Agenda
• Debbie Robillard
• Regional AVP Manulife Bank of Canada
• Stacie Joosten, Manulife One Sales
• What If ? Concept

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Facts About Manulife Bank

• Member of Canada Deposit Insurance Corporation
  (CDIC)
• 12.9 billion in high-quality assets,
  primarily Canadian residential mortgages (Dec 31,
  2008)
• No investments in U.S. banks, insurance or
  brokerage firms
• No exposure to asset-backed commercial paper
  and/or the sub-prime mortgage market
• Independently rated by Standard Poors
• Short Term A-1 , Long Term AA

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• Sales Ideas for
• Retirement Planning

Stacie Joosten Manulife One Banking Consultant
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Retirement planning

• The concern of most people heading into
  retirement or those already retired can be
  summarized as
• What if?

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Retirement planning What if?

• The markets drop?
• The roof starts to leak?
• The furnace needs replacing?
• The car doesnt last?
• One of us gets sick?
• We cant qualify for travel insurance?
• We want to keep the recreational property?
• We have an amazing travel opportunity?
• Our assets deplete too quickly?
• The kids (grandkids) need money?

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Introducing

• The What If Account

The solution to lifes what-ifs
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What do you do

• for your clients that wont retire wealthy?
• Government plans
• 300,000 in RRSPs
• A little cash, but
• 400,000 home, free and clear

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1,000/month tax free _at_ 6 (sample)
80 LTV
50 LTV
No accounting for income flow
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Retirement Planning Reverse mortgages?
If legal advice is required, clients need to
cover this cost. If less than 20,000, fees
apply
Rates are as at Apr 21, 2009. Rates are subject
to change and for illustrative purposes only.
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Retirement planning start now

• Q When is the best time to get credit?
• A When you dont need it!
• Every client in their 50s that owns a home
  should consider Manulife ONE now to provide
  greater flexibility in retirement
• If theyre already retired, they could still
  access 50 of their home equity

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Summary

• Manulife ONE is the what if solution for any
  client
• Simple referral to a Banking Consultant
• 400 up front referral fee 10 bps trailer!!
• Visible on BankLink _at_ Repsource
• Great looking client statements!

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Manulife ONE has features flexibility now for
business owners and professionals who might ask
What If in their financing Commercial
Professional Manulife One
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• Banking Retirement

Debbie RobillardRegional AVP Manulife Bank
(Southern Alberta)
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Professional Commercial Manulife One
Main Differences

• PONE
• Converted residential properties
• 300,000 to 2,000,000
• Fees
• Member of a profession

• CONE
• Commercial Real Estate
• 500,000 to 2,000,000
• Fees

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Professional Commercial Manulife One
Similarities

• LTV 65
• Rate P1.5
• Must have an existing relationship with Manulife
• 50 space occupied of property occupied by owner
• 400 referral fee 10BPS trailer

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Eligible Alberta cities

• Calgary
• Edmonton
• Fort McMurray
• Grand Prairie
• Lethbridge
• Medicine Hat
• Red Deer

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Why Professional Commercial M1?

• Manage business finances more efficiently
• Flexibility
• Pay down mortgage faster or access equity
• Save interest costs
• Rental or revenue directly deposited to mortgage
• Easy access (Internet telephone banking,
  cheques)
• Comprehensive monthly statement

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The Fast-Forward Savings Plan
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Canadian savings plans

• Several choices to help investors reach their
  goals
• RRSPs for retirement
• RESPs for education expenses
• RRIFs for retirement income
• But, for some investors, these plans dont go far
  enough.

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The problem

• Some of your clients have these concerns
• RRSP isnt going to be large enough
• Started investing later, making up for lost time
• Doesnt want to keep working 9-to-5 til 65

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The Fast-Forward Savings Plan

• What is the Fast-Forward Savings Plan concept?
• a new way to help people learn about leverage
• not a new product or plan type
• an opportunity to significantly increase
  investment growth

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Fast-Forward Savings Plan example
Time and compounding10 years 100,000 loan
versus traditional investing
Rate sensitivity comparison (low, mid, high
returns)
Assumptions Investment period 10 years,
Investment return 8.0, Loan interest rate
7.0 (Interest only payment) Loan interest tax
deductibility 100, Taxable portion of return
25, Tax rate on investment income 30,
Marginal tax rate 40
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Ideal clients

• Fast-Forward Savings Plans are best suited for
  investors with
• clearly defined investment goals
• long-term investment horizon
• investing experience, higher risk tolerance
• adequate reliable income to service the loan.
• higher marginal tax rate

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Tortoise Leverage
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The tortoise and the hare

• The tortoise wins the race against a much quicker
  hare by holding a consistent pace.
• The moral of the story?
• Slower and steadier can win the race.

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Getting Started

• Obtain a Manulife Bank Investment Loan
• Open a Manulife segregated fund contract
• Select Manulife Dollar-Cost Averaging Advantage
  Fund (1.551 interest)
• OR
• Open a Manulife Mutual Fund account - Complete
  the Dollar-Cost Averaging form (Deposit placed
  in Manulife Money Fund)

1As at Apr 21, 2009, the variable annual interest
rate of 1.55 is applied to all funds in the
account. Interest is calculated daily on the
total daily balance and paid monthly. Rate is
subject to change.
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How does it work?

• Gradually ease into long-term funds through
  dollar-cost averaging
• Mutual funds Choose from 2-52 automatic
  switches over a one-year period
• Segregated funds Choose from 6-12 automatic
  monthly switches, commencing up to 90 days after
  deposit
• At purchase of the Dollar-Cost Averaging
  Advantage Fund, Manulife pays a commission like
  an equity fund.

• Clients can also choose later to accelerate
  their switches (e.g. go "all-in" to their
  long-term funds)

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Make your cash work harder!
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Manulife Bank Deposit Products

• High-Interest Savings Accounts
• Advantage Account
• Business Advantage Account
• Registered Advantage Account
• US Advantage Account
• US Business Advantage Account
• Investment Savings Accounts
• CAN
• US
• Term Deposits
• Short-term deposits
• Guaranteed Investment Certificates

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Advantage Account

• Your chequing account deserves to grow
• Canadas best chequing account
• Premium interest rate on every dollar,
• currently 1.55
• No minimum deposit required
• Easy access to cash
• Internet and telephone banking
• No monthly fee

As at Apr 21,2009, the variable annual interest
rate of 1.55 is applied to all funds in the
account. Interest is calculated daily on the
total daily balance and paid monthly. Rate is
subject to change.
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Advantage Account

• Get more for your money
• Deposit options
• Deposit funds at any ABM displaying THE EXCHANGE
  symbol
• Transfer funds
• Make a deposit at a Royal Bank branch
• Have your income directly deposited
• Withdrawal options
• Withdrawal cash at any ABM (charges apply)
• Direct payment
• Cheques
• Bill payments
• Transfer funds

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Advantage Account

• An account for all uses
• Primary account
• For individuals who embrace technology and have
  minimal need for traditional branch banking
  services
• Secondary account
• For individuals who want to earn a high rate of
  interest on the bulk of their short-term money
  but are not comfortable giving up branch banking
  altogether.
• Investment accounts
• For individuals who want to earn a better rate of
  return or achieve more liquidity for their
  emergency funds

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Advantage Account

• What makes the Advantage Account different from
  other high interest accounts?
• Manulife Bank pays a high rate of interest on
  every dollar in your account
• Easy access to your money
• Internet and telephone banking
• Debit purchases ABM access
• Cheque writing

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Advantage Account

• Access to THE EXCHANGE Network
• No convenience fees
• Deposit capability
• 2,300 ABMs
• ABM locator
• Members
• National Bank
• HSBC
• Citibank
• Credit Unions (60 locations) including VanCity

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Business Advantage Account

• Make your short-term cash work harder
• Canadas best account for business owners
• Designed to provide real growth for business
  excess short-term cash (not a business operating
  account)
• Premium interest rate on every dollar, currently
  1.55
• No minimum deposit required
• Easier, more accessible alternative to money
  market funds or government t-bills
• Internet and telephone banking
• No monthly fee

As at Apr 21,2009, the variable annual interest
rate of 1.55 is applied to all funds in the
account. Interest is calculated daily on the
total daily balance and paid monthly. Rate is
subject to change.
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Business Advantage Account

• Give your business an advantage
• Deposit options
• Funds transfers
• Make a deposit at a Royal Bank branch
• Withdrawal options
• Cheques
• Funds transfers
• Bill payments

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Business Advantage Account

• What makes the Business Advantage Account
• different from other high interest business
• Accounts?
• Manulife Bank pays a high rate of interest on
  every dollar in your account
• Easy access to your money
• Internet and telephone banking
• Cheque writing
• Bill payments

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Registered Advantage Account

• Security and growth for your RRSP
• A no fee alternative to money market funds
• High interest rate, currently 1.55
• Money is never locked-in
• Great place to park your registered funds
• Short-term holding account
• Low risk investment

As at Apr 21,2009, the variable annual interest
rate of 1.55 is applied to all funds in the
account. Interest is calculated daily on the
total daily balance and paid monthly. Rate is
subject to change. Withholding taxes may apply if
funds are moved to a non-registered account.
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US Advantage Account

• Keep your money growing
• High interest savings account, currently .60
• No tiers or minimum balances
• No monthly fee
• Internet and telephone banking
• Withdrawals
• Funds transfers (between your US Advantage
  Account and a US account that you hold in your
  name at another Canadian Financial Institution)
• Deposits
• Funds transfers
• Mail cheque to Manulife Bank

As at Apr 21,2009, variable annual interest rate
of 0.60 is applied to all funds in a US
Advantage Account. Interest is calculated daily
on the total daily balance and paid monthly. Rate
is subject to change.
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US Business Advantage Account

• Enhanced growth for your U.S. cash
• High interest savings account, currently .60
• Available to incorporated and unincorporated
• business, organizations and trusts
• No tiers or minimum balances
• No monthly fee
• Internet and telephone banking
• Withdrawals
• Funds transfers
• Deposits
• Funds transfers
• Mail cheque to Manulife Bank

As at Apr 21,2009, variable annual interest rate
of .60 is applied to all funds in a US Business
Advantage Account. Interest is calculated daily
on the total daily balance and paid monthly. Rate
is subject to change.
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Investment Savings Account

• Who says you have to drive in the slow lane to be
  safe?
• Investment Savings Account provides three key
  benefits you look for in a low-risk investment
• Growth
• Convenience
• Security of a
  bank account

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Investment Savings Account

• Part of your investment account, managed by
  your financial advisor
• Deposits can be held as cash, margin accounts
  and registered accounts
• No fixed terms or interest rate penalties
• Your money is never locked-in and transactions
  settle the following business day

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Guaranteed Investment Certificates

• The many benefits of GICs
• Growth
• Dependability
• Security
• Simplicity

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Short-term deposits

• Terms of 30-364 days
• Registered (RRSP only) or non-registered
• Minimum 25,000 deposit
• Tiered rates for larger investment amounts
• Redeemable prior to maturity (interest penalty
  applies)

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Guaranteed Investment Certificate

• Terms of 1, 2, 3, 4 and 5 years
• Registered (RRSP only) or non-registered
• Minimum 2,500 deposit (10,000 for monthly
  interest)
• Non-redeemable prior to maturity

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• Questions?

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Important notes

• Rates mentioned in this presentation are for
  illustrative purposes only.
• Rates and fees are subject to change.
• The Manulife one Base Rate is a variable annual
  rate equal to Prime (3.25 as of Apr 21, 2009)
  that is not guaranteed and may fluctuate.
  Interest rates are calculated on the daily
  closing balances and charged monthly and are
  applicable to the Main Account and Variable Rate
  Accounts.
• Accounts with positive balances The Manulife One
  Credited rate is 1.55 as at Apr 21, 2009, a
  variable annual interest rate which is calculated
  on the daily closing balance and credited
  monthly. Further to the General Terms, credit
  balances in the Main Account cannot and will not
  be offset against debt balances in a separate
  borrowing account.
• Account fees. The current monthly administration
  fee for a Manulife One account is 14 per month.
  For a complete listing of Service charges and
  fees, visit manulifeone.ca

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Important notes

• Borrowing to invest may be appropriate only for
  investors with higher risk tolerance. Your
  clients should be fully aware of the risks and
  benefits associated with investment loans since
  losses as well as gains may be magnified.
  Preferred candidates are those willing to invest
  for the long term and not averse to increased
  risk. The value of your client's investment will
  vary and is not guaranteed however they must meet
  their loan and income tax obligations and repay
  their loan in full. Please ensure clients read
  the terms of their loan agreement and the
  investment details for important information.
  Manulife Bank of Canada solely acts in the
  capacity of lender and loan administrator and
  does not provide investment advice of any nature
  to individuals or advisors. The dealer and
  advisor are responsible for determining the
  appropriateness of investments for their clients
  and informing them of the risks associated with
  borrowing to invest.

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Important notes

• Bank products are offered by Manulife Bank of
  Canada. Manulife Dollar-Cost Averaging Advantage
  Fund offered by Manulife Mutual funds.
• Manulife, Manulife Financial, Manulife One, the
  One logo and the block design are registered
  trademarks of The Manufacturers Life Insurance
  Company and are used by it and its affiliates
  including Manulife Bank of Canada.