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Manulife College Savings offers more choice in its multi-managed 529 Plan -- New Features Added to Optimize Client Investments -- BOSTON - The Manufacturers Life Insurance Company (U.S.A.) (Manulife USA) today launched a number of enhancements to Manulife College Savings1 Manulife College Savings is distributed by Manulife Financial Securities LLC through other broker/dealers appointed by Manulife Financial Securities, managed by T. Rowe Price, and sponsored by the Education Trust of Alaska. Manulife Financial Securities is a member of the NASD and is listed with the Municipal Securities Rulemaking Board (MSRB)., its 529 college savings product. The addition of an insurance wrap to the Manulife Stable Principal Portfolio, systematic exchanges among portfolios, and breakpoints and Rights of Accumulation (ROA) within the A-share class is indicative of Manulife College Savings’ efforts to continue to offer a competitive 529 plan that can effectively meet clients’ needs. Manulife Stable Principal Portfolio Clients with more conservative investment needs may opt for the Manulife Stable Principal Portfolio. Manulife College Savings has added an insurance wrap and changed the underlying investment from a money market fund to short and intermediate fixed income funds. This change allows the opportunity for the portfolio to provide higher potential returns than the average money market fund, while helping to preserve the stability of the principal investment. Systematic Exchanges Manulife College Savings now offers systematic exchanges, also known as Dollar Cost Averaging (DCA). Systematic exchanges allow clients the ability to invest identical amounts of money at regular intervals in an effort to reduce the risk of investing at the top of a market cycle. Over time, the client buys more shares when the price is low and fewer shares when the price is high. By offering DCA with, among others, the Manulife Stable Principal Portfolio, the most conservative clients can reengage in the market systematically over a longer time period, helping to provide greater piece of mind in changing markets.2 Breakpoint Pricing and Rights of Accumulation Manulife College Savings is introducing breakpoint pricing within the A-share class. Once a client reaches certain defined asset levels, sales charges will be reduced on additional contributions. The first breakpoint will occur at $50,000, the second at $100,000, and the third at $250,000. Account holders with multiple accounts can enjoy Rights of Accumulation, where assets among different accounts with the same tax identification are pooled to result in a lower sales charge overall. “These product enhancements reflect our desire to offer financial consultants the most comprehensive 529 plan in the multi-managed market,” said Bill Burrow, Senior Vice President and General Manager, Manulife College Savings. “The changes help clients to optimize their investments by reducing expenses from sales charges, while providing a more secure principal portfolio for clients with conservative investment needs.” Manulife College Savings In July of 2001, Manulife entered the college savings market with Manulife College Savings, a national multi-managed Section 529 education savings plan distributed by Manulife Financial Securities LLC, managed by T. Rowe Price and sponsored by the Education Trust of Alaska. The multi-manager approach of Manulife College Savings allows investors to work with their financial consultants to pursue a strategy that helps to maximize their investment opportunities, while effectively managing risk. Expanding upon the inherent advantages of a typical 529 savings plan, Manulife College Savings offers investment choices from some of the nation’s top mutual fund managers. Mutual fund managers available with Manulife College Savings are A I M Investments, Davis Selected Advisors, L.P., Franklin® Templeton®, MFS Investment Management®, OppenheimerFunds, Inc., Pacific Investment Management Company (PIMCO) and T. Rowe Price Associates, Inc. 1Manulife College Savings is distributed by Manulife Financial Securities LLC through other broker/dealers appointed by Manulife Financial Securities, managed by T. Rowe Price, and sponsored by the Education Trust of Alaska. Manulife Financial Securities is a member of the NASD and is listed with the Municipal Securities Rulemaking Board (MSRB). 2 Dollar Cost Averaging (DCA) does not assure a profit or protect against loss in declining markets. Since DCA involves a continuous investment in securities regardless of fluctuating price levels, clients should consider their ability to continue purchases through periods of low price levels. If systematic exchange (DCA) is established at the time the account is opened, it will be considered the investment strategy for that account. The establishment of systematic exchange on existing accounts, or any changes to a systematic exchange program already in place, will be considered the one allowable investment change for that beneficiary for the calendar year. Once selected, systematic exchange must be in effect for a minimum of 12 months. About Manulife Manulife USA is committed to offering the highest quality annuity, life insurance, pension, college savings, and separately managed account products to its clients. Its family of products has been built around a powerful combination of investment options chosen with the goal of providing attractive risk-adjusted returns and broad diversification across asset classes, investment styles, and asset managers. With its extensive product lines, competitive underwriting, excellent ratings, and quality customer service, Manulife USA is dedicated to providing quality products designed to help create and preserve wealth for its clients. Manulife Financial is a leading Canadian-based financial services group operating in 15 countries and territories worldwide. Through its extensive network of employees, agents and distribution partners, Manulife Financial offers clients a diverse range of financial protection products and wealth management services. Funds under management by Manulife Financial were US$92.5 billion (Cdn$146.2 billion) as at December 31, 2002. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com. -30- Media Contact: Wendy W. Smith U.S. Communications 617-854-4348 |
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