Target risk management strategy to allow investors choose their own risk levels

Manulife Taiwan has launched two variable annuity (VA) products, which it claims to allow investors to select their level of risk based on their comfort level.

The company said that the annuity, which comes in either A or B category depending on premium payment method, allows customers to select the level of risk under a new core investment strategy called Target Risk Management. The strategy uses three funds with specific risk levels that include stable, moderate and aggressive.

According to Manulife, the three underlying asset classes include onshore/offshore mutual funds covering equities, fixed income, foreign currencies and money markets. The new VA products have two payment choices, VA-A allows monthly regular premium payments as low as NTD5,000, while providing professional VIP service from the investment mandate capability; VA-B is targeted at clients who prefer a large lump sum investment.

In addition, other than investment, VAA/B Variable Annuities also take into account protection needs. At maturity, the accumulated value can be distributed as annuity payments or as a lump sum and upon death the entire accumulation value is returned to the customer’s estate. On VAA, there is also a loyalty bonus feature that awards clients 50% of the monthly planned premium every six policy years.

Manulife Taiwan VAA/B Variable Annuities are the first products jointly designed by Bank SinoPac and Manulife.