Manulife Securities ISSUE 2 2019 HORIZONS The MastersPrivateAccountProgram is strategic, evolvingandrich withoptions 26 Timberland +cranberries = smart investing 30 The nextbigthing:advisorstalk about Goals-BasedInvesting 34 George’s message

This edition of Horizons is filled with information to help you and your clients chart your course, smooth out turbulence, and avoid obstacles along the way. We’ve still covered events, conferences and awards that have already filled 2019, but our focus is forward on what we can achieve together.

Here are just some of the topics we cover in this edition.

Check out the Your Engagement Edge website. This site is filled with content to help you identify what makes you stand out in a competitive financial-planning marketplace, and work with clients who are the best fit for you.

We used your feedback to digitally transform the account opening and maintenance experience. Learn about the new, end-to-end, digital, mobile-friendly, customer-centric solution.

Find out how both Goals Based Investing (GBI) and Private Wealth are designed to help clients manage turbulent times, build a solid investment foundation, and achieve their financial goals.

Discover how methodically planned, strategic changes to the Masters Private Account Program are giving clients more sound, investment options.

Get to know Jeff Hull, the National Leadership and Service Award winner you chose! He talks about his volunteer work with the Canadian military and gives his younger self some career advice about working with the right clients.

And, of course, Horizons would not be possible without your suggestions. Please your content ideas with Advisory Services Communications by emailing [email protected].

George Garner Head of Sales Advisory Services

HOLDING FOR FSC LOGO What’s inside

Your Engagement Edge–stand out Highlights 04 18 from the crowd!

Our new advisors Digitally transforming the account opening 06 22 and maintenance experience IN EVERY ISSUE IN EVERY Training calendar The Masters Private Account Program is 45 26 strategic, evolving and rich with options BUSINESS BUILDING

Trade Desk & head office holiday hours Timberland + cranberries = 46 30 smart investing

The next big thing: advisors talk about 08 2019 Tradition of Excellence 34 Goals-Based Investing EVENTS 2019 Circle of Achievement Summit 12 38 Distributor Relations & Learning

2019 Circle of Excellence Jeff Hull: this year’s recipient of the

14 PROFILES 42 National Leadership and Service Award 16 The Associate Advisor Program

HORIZONS A magazine for Manulife Securities advisors The spirit of partnership is the key factor in our success as the partner of choice for independent, planning-oriented advisors.

Not for use with clients.

ISSUE 2 2019 03 IN EVERY ISSUE

Highlights

Here’s a quick look back at 2019’s growth as of the end of Q2 (June 30, 2019).

We had a total of 33 new advisors register with Manulife Securities. Windows 7 support ends January 2020 – Our total dealer assets under administration (AUA) has increased prepare now! by 11.1 percent year to date and we ended the second quarter at $41 billion. The average AUA per advisor is $35 million. Microsoft is ending support for Windows 7 on January 14, 2020. After that date, your Windows 7 computer will still operate, but Microsoft won’t provide any new security updates or support for issues. Introducing a new Manulife CE Centre series: In case you missed it This means that Windows 7 operating systems will be less secure and more vulnerable to cyber security attacks such as viruses and Based on your feedback, we’ve added another way for you to malicious software—putting your business at risk. That’s a high risk earn CE credits. The Manulife CE Centre now includes a series for your business. of recorded presentations given by Manulife experts at events across the country. You can access these exclusive sessions You should plan to move your office to Windows 10 before whenever you like. You’ll find them on the new Learning Series tab the end of the year on the Manulife CE Centre homepage: Repsource > Training > CE Centre > Learning Series > In Case You Missed It To make the switch to Windows 10, we recommend you use NPC DataGuard-managed computer services, or work with an IT technical support person or IT vendor to ensure a smooth transition.

For more information, log in to Repsource: Recognition & contracting > Business Services > Advisory Services > Advisor Technology Hub

04 HORIZONS Congratulations to Kaspardlov & Associates Congratulations Ellen MacDougall! Earlier this year, Kaspardlov & Associates, a Manulife At 53, Ellen MacDougall completed the Boston Securities office in Windsor, Ontario, won The CI Marathon–her first marathon. While she admits she’s not Award for Advisory Team of the Year at this a long-distance runner, Ellen wanted to be a part of a year’s Wealth Professional Awards. world-class sporting event and jumped at the chance to run this marathon when it was offered by John Hancock. The award recognizes the most outstanding advisory She attributes her accomplishment of this “complete, team or office with fewer than 10 employees, that has absolute, phenomenal experience” to “setting a goal, displayed excellence during the last 12 months. Eligible sticking to the plan to accomplish it, and pushing nominees are IIROC and investment counsellor advisory through to the end.” teams and independent offices or branches. Ellen also raised $8,800 for The Strong Kids Campaign in Sault Ste Marie, ON through the Boston Marathon Non-Profit fundraising program. The Strong Kids Campaign aims to get youths involved in YMCA events.

ISSUE 2 2019 05 IN EVERY ISSUE

Our new advisors

Please join us in welcoming these advisors from across Canada who have recently joined Manulife Securities.

ISHWAR JAGPAL JENNIFER MITCHELL JONATHAN NESBITT DEBORAH SHEEHAN Windsor, ON Surrey, BC Stratford, Ontario Ancaster, ON

CALVIN SMEDING VICKEY ROWE JESSICA TAMBASCO JOHN ZIOLKOWSKI Hamilton, ON London, ON Dorval, QC Mississauga, ON

06 HORIZONS ADAM POULTER JENNIFER HALL Ottawa, ON Edmonton, AB

ADRIAN CHAPMAN JEREMY GARCIA Fort Frances, ON Dorval, QC

ALEXANDRE DANIS JEAN-PHILIPPE LEMIEUX St-Laurent, QC Dorval, QC

BILL YOUNG KIMBERLY WEBER Waterloo, ON Waterloo, ON

BRYAN DALRYMPLE LINDA GALLIVAN Burlington, ON Waterloo, ON DAVID RAU Sarnia, ON DANIEL GREER MADISON AUDETTE London, ON Lethbridge, AB

ERIC VARGAS PHILIPPE BRAULT LANGLOIS Dorval, QC Dorval, QC

FRANÇOIS LAURIN MICHAEL D'ANGELO Dorval, QC Woodbridge, ON

STEVE TROIAN Barrie, ON

ISSUE 2 2019 07 EVENTS

To learn more about our recognition programs and awards, visit Repsource:

Circle of Achievement Recognition & contracting > Recognition > Programs > Circle of Achievement

Ovation Recognition & contracting > Recognition > Programs > Ovation

Tradition of Excellence Recognition & contracting > Conferences and Events > Traditional of Excellence

08 HORIZONS 2019 Tradition of Excellence

Toronto: March 30, 2019 Vancouver: April 6, 2019 Montreal: April 13, 2019 Halifax: April 26, 2019

Hosted in Toronto, Vancouver, Montreal and Halifax, the Tradition of Excellence gala evenings recognize the top advisors from both our Dealer and Managing General Agency (MGA).

These celebrations are an opportunity to reflect on outstanding advisors’ accomplishments from the past year.

In addition to our annual award winners, we also recognized the business excellence and partnership of our Ovation program qualifiers who have consistently achieved the top tiers of our annual recognition program over the long term.

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ISSUE 2 2019 09 2019 Advisory Services Business Forums Our seven Business Forums are happening across the country from September 17 to October 10. The Business Forums deliver a mix of industry updates and enterprise solutions including cybersecurity and technology management, separate business breakout sessions, and a Q&A with our leadership panel. Look for a recap of what took place in the next issue of Horizons.

To learn more about the Advisory Services Business Forums visit Repsource > Recognition & contracting > Conferences & Events > Business Forums

10 HORIZONS 2021 Circle of Excellence | May 16-20, 2021 SANTA BARBARA Discover the allure

How to qualify Qualification period: January 1, 2019 to December 31, 2020

Qualifications Dealer (Manulife Securities): • Top 100 advisors by Manulife Securities’ gross commissions (excluding MSII) • Top 3 business owners by combined Manulife Securities’ gross commissions and AUA

Qualifications MGA (Manulife Securities Insurance Inc.): • Top 100 advisors by gross commissions through Manulife Securities Insurance Inc. • Top 10 advisors by FYC not otherwise qualified • Top 10 advisors not otherwise qualified. These 10 spots will be awarded to advisors who are dually contracted with Manulife Securities and Manulife Securities Insurance Inc. based on the combined gross commission ranking

Manulife, Manulife & Stylized M Design, Stylized M Design and Manulife Securities are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

MP1086476E 07/19 EVENTS

2019 Circle of Achievement Summit

12 HORIZONS May 31 – June 2, 2019 2019 marked the first year that both the Circle of Excellence and the Circle of Achievement Summit took place at the same location—the gorgeous Fairmont Southampton Bermuda hotel. On Friday night, attendees enjoyed a

Tier 1 (the top 25 advisors by commission) MGA and dealer Mediterranean dinner at Elbow Beach qualifiers were able to extend their stay and make the most overlooking the breathtaking South Shore. of the two-and-a-half-day event. In addition to networking and exclusive business sessions, there was an advisor and senior leadership panel and Q&A.

ISSUE 2 2019 13 EVENTS

To learn more on how to qualify for the 2021 Circle of Excellence in Santa Barbara visit Repsource: Recognition & contracting > Conferences & Events > Circle of Excellence > 2021 Santa Barbara

14 HORIZONS 2019 Circle of Excellence

May 27 - 31, 2019

The 2019 Circle of Excellence took our qualifiers to Bermuda’s pink-sand beaches. Some 170 of our top-grossing advisors stayed at the luxurious Fairmont Southampton Bermuda. Upon arrival, attendees were welcomed with a spectacular sunset dinner on the beach featuring local music and cuisine. In addition to valuable business sessions and networking, guests were given time to experience Bermuda Their Way and participate in activities such as a magical walking tour experience of the historical St. George's — the oldest occupied town of English origin in the new world. On the last night guests enjoyed an enchanted garden gala evening that featured a presentation to the very first recipient of the National Leadership and Service Award, Jeff Hull.

While in Bermuda we announced the breathtaking destination of Santa Barbara, California for the upcoming 2021 Circle of Excellence.

ISSUE 2 2019 15 EVENTS

The Associate Advisor Program — bringing together colleagues, not competitors

The Associate Advisor Program (AAP) has been creating successful advisors for more than 14 years.

The program is a valuable resource for Day 2: The second day of the conference began with guest advisors who are: speaker, Julie Littlechild, speaker, writer, and the founder of AbsoluteEngagement.com. Julie delivered a thought-provoking • starting in the industry and building their practice, session on how client engagement today is being disrupted. • seasoned advisors who want to hire an associate or junior advisor Then advisors heard about AAP best practices for managing to assist with managing an established practice or to work with their businesses and clients in an open, peer-to-peer, panel them in succession planning. format. And, the always popular Table Talk session had members The program model is customizable and offers advisors in-house interacting with representatives from Manulife Bank, Manulife coaching sessions, succession planning meetings, and various Investments, fee-based solutions ETFs, Manulife Securities training curriculums and webinars with subject-matter experts. Insurance Inc., and many other subject-matter experts on how Advisors also have access to one-on-one mentorship meetings, they could enhance and grow their practice. study groups, and the annual AAP conference! “ The AAP Conference should be saved in About this year’s AAP Conference every new advisor’s calendar.... It’s an The 2019 Associate Advisor Program (AAP) Conference took opportunity like no other to meet and share place in Toronto from April 24 to April 26. ideas with peers in a welcoming setting. The day before the start of the conference, advisors were invited The conference is focused on growth and ® to take part in an exclusive, well attended, hands-on NaviPlan mentorship, and engages the audience with workshop hosted by the Planning Oriented Advisor Program team. motivational, leading, industry speakers.” Day 1: Neil Ouditt, National Managing Director, Associate Advisor Program, Advisory Services, welcomed everyone at the conference, Frank J. Ryan, Financial Advisor & Certified Employee before turning the conference over to a financial planning panel Benefits Specialist who talked about incorporating goals-based, holistic planning into advisors’ practices to help meet client needs.

16 HORIZONS To close the conference, Rick Annaert, Head of Advisory Services, President & CEO, Manulife Securities, and George Garner, Head of Sales, Advisory Services, provided an Advisory Services leadership update. Neil Ouditt wrapped up the day with an evening of social networking. To learn more about the AAP program, Friday kicked off with more strategic and expert updates, contact Neil Ouditt, National Managing followed by the final, advisor-led panel session where advisors discovered how to integrate insurance into their financial Director, Associate Advisor Program, Advisory planning practice. Services at [email protected]. “ The AAP conference is a must-attend event for anyone involved in the succession plan of an advisor’s practice. It’s a great opportunity to meet with colleagues from around the Visit Repsource: Recognition & country. Each year I come away with valuable contracting > Business Services > Advisory ideas that I can implement into my business. Services > Advisor Programs Neil and his team do an exceptional job bringing together great speakers and sessions each year.” Christopher Simpson, Senior Investment Advisor, Manulife Securities Inc.

ISSUE 2 2019 17 BUSINESS BUILDING

18 HORIZONS Your Engagement Edge– stand out from the crowd!

Your Engagement Edge is designed to help you reveal your unique value proposition for each of your client segments so you can deliver stand-out value to them.

They're experts in client and advisor research and client needs assessment. Julie Littlechild, founder ofAbsoluteEngagement. com, uses her research data to help advisors build their practices.

This spring Manulife introduced Your Engagement Edge to you. Both the program and its suite of web-based resources can help you build a differentiated client experience. Advisor and client assessments within the tool help focus in on client expectations and reveal the unique and profitable value advisors can bring. This is all offered to you at no cost.

Stand out from the crowd Research from Absolute Engagement Investor Research 2019 shows that 81% of clients are loyal to their advisor and 80% of clients are satisfied with their advisor. Do you want to be part of that crowd or do you want to stand out from the crowd?

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ISSUE 2 2019 19 Using Your Engagement Edge Your Engagement Edge is modular and self-guided with step-by-step instructions. You’ll start by doing a self-assessment aimed at revealing your biggest client-engagement opportunities. Based on the results of that assessment, Your Engagement Edge recommends the appropriate next steps and actions based on the tool’s 11 modules, which include:

Define your niche or ideal client. Create client communication plans by 01 Establish the basis for your enhanced 07 segment. Design your 12-month plan that client experience. reflects what’s important for each client segment.

Segment your clients. Structure your business around 02 Based on the value you deliver, your most 08 your ideal client. profitable clients will be those who best fit your Ensure your business is structured to reflect niche and most want your unique offering. the needs of your ideal clients.

Determine your unique value Define core processes. 03 proposition for each of your segments. 09 Ensure the core processes (e.g. client Make sure clients are clear on what they can onboarding) that engage clients and set you expect from you and the value of what you offer. apart are standardized and efficient.

Assess capacity and profitability. Manage client expectations. 04 Ensure you have the time and resources to 10 Clearly set client expectations so they know deliver on your unique value proposition. what they will get from you and what you expect of them.

Co-create the client experience. Gather client feedback. 05 Work with your clients and your team to define 11 Measurement is essential to ongoing success. a client experience that makes the most sense. Create a plan to use client feedback as part of each client segment’s communication plan.

Map out the client journey. 06 Understand what your clients are thinking, feeling and doing at each stage of their journey to build a compelling experience.

20 HORIZONS Additional support – people helping people “ I find it extremely important to work on the Your Engagement Edge provides and facilitates peer-to-peer and foundation of my business. My team has been expert coaching. diligently working through Your Engagement The tool includes forums where advisors can connect with each Edge’s simple, step-by-step process. This other to ask questions and share experiences and successes. The professional team behind Your Engagement Edge also participates program enables us to focus on what really in the forums. matters to clients. This work we’re doing helps For an additional cost, Absolute Engagement also offers one-on- us differentiate ourselves from our competition one coaching to provide you with hands-on guidance throughout and assures us that we’re adding true and the process. meaningful value for our clients. Our satisfied Why not start right now? clients become our advocates and that leads Your Engagement Edge is provided to you at no cost, it’s to more referrals! Your Engagement Edge has straightforward and easy to use, and it’s ready when you are at: given us the platform and steps we needed to www.YourEngagementEdge.com/manulife. create an outstanding experience for our clients.” Stephanie Harmon

For more information contact John Stewart, Field Director, Practice Management, Advisory Services at [email protected]

ISSUE 2 2019 21 BUSINESS BUILDING

22 HORIZONS Digitally transforming the account opening and maintenance experience

Building a streamlined, effective account opening and maintenance solution for both you and your clients

“ We now have a tool that will completely automate the business and compliance- critical process of account opening and maintenance. This new tool will improve your overall experience with features that scale to your needs.” Rick Annaert, Head of Advisory Services, President & CEO, Manulife Securities

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ISSUE 2 2019 23 As we roll out the new account opening and maintenance tool, We couldn’t have done it without you. you’ve been providing feedback every step of the way. You told us In July, we started holding advisor insight sessions where a broad there was room for improvement, you helped us identify gaps, and spectrum of advisors and support staff provided their feedback and some of you participated in insight sessions where you helped us shared their perspectives on our roadmap to maintenance. better understand your day-to-day processes and interactions with your clients. We learned a lot from you. Powering digital transformation: account You helped us understand your business operations and the maintenance is now available challenges you face with account-opening and maintenance workflow. Your feedback has and will continue to shape how we develop the In August we launched a pilot of the account-maintenance portion account opening and account maintenance tool. of the tool. That included: • client addresses Here’s what’s next. • banking updates We'll be having more advisor feedback sessions so we can • Know Your Client information learn what's important to you about the account-opening and maintenance process. Using your insights, we’ll be launching • beneficiaries. a digital, account-opening phase of the tool that scales to your future needs for streamlining and modernizing the What you can look forward to account-opening process. We will be continuing to release more functionality to the tool, such as: The full launch is coming soon. • Power of Attorney(s) updates, You’ll have a streamlined, digital, and mobile-friendly solution that lets you open a new account for a new client, add a new account • formal trust updates, for an existing client, and maintain your client’s account information • limited trading authorities, and from anywhere at any time. • authorized officer updates.

We’ll also be moving from a pilot to a full launch of the tool in the coming months.

The development of full account opening functionality – client onboarding – is also in progress, and you’ll be able to use the tool in French.

Questions or feedback Your perspective is invaluable. If you have questions or feedback, email the account opening and maintenance redesign team at [email protected].

24 HORIZONS Challenge • A time-consuming, frustrating, and costly paper-based, manual process for maintaining client account information and opening new accounts • Poor advisor and customer experience that often involved rework • Not in line with our aspirations to be a digital customer leader and to obsess about the customer

Solution • An end-to-end, digital, mobile-friendly, customer-centric, and scalable solution for account opening and maintenance created with insights provided by advisors

Value • A digital account-opening and maintenance experience, available anywhere the advisor is licensed to do business, any time • Streamlined administrative tasks; no more paper means reduced manual work, reduced errors, and reduced costs • Improved advisor and customer satisfaction • Time savings you can use to build your business

ISSUE 2 2019 25 BUSINESS BUILDING

26 HORIZONS The Masters Private Account Program is strategic, evolving and rich with options

The Masters Private Account Program, which is available to IIROC advisors, is a fee-based, managed account program where clients delegate decisions and trading discretion to an institutional portfolio manager.

The program offers clients a variety of investment strategies and portfolio managers to choose from. The Managed Programs team at Manulife Securities handles all the portfolio trading in a separately managed account (SMA) structure. Purchases, withdrawals and rebalancing are all processed for advisors, according to the investment strategy that's been chosen for the client's account.

We met with Jason LeDrew, Director of Managed Programs for Manulife Securities, to learn about the latest changes to the program’s roster of actively managed investment strategies.

Tell us about the expansion to the actively managed investment strategies line up. We recently added seven investment strategies, which brings the total to 31 strategies. After the successful launch of Exchange-Traded Fund (ETF) Portfolios last year, we targeted expanding our line-up of actively managed investment strategies.

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ISSUE 2 2019 27 New additions and key details

Investment strategy Investment objectives Investment style Asset mix Mandate risk rating

Beutel Goodman Long-term capital growth and income Value 60% Equity; 100% Low-Medium Total Balanced generation investing in equity and securities of Canadian, 40% Fixed Income U.S. and non- North American issuers.

Beutel Goodman Long-term capital growth by investing Value 100% Equity 100% Medium Total Equity primarily in equities and American Depository Receipts (ADRs) issued by global companies.

Foyston, Gordon & Payne Long-term capital Value 100% Equity 100% Medium Canadian Large Cap in Canadian equities. Equity Value

Franklin Bissett Long-term capital growth investing Value 100% Equity 100% Medium Canadian Large Cap in Canadian equities. Equity Growth

Lazard Global Equity Long-term capital growth by investing Value 100% Equity 100% Medium primarily in equities and ADRs issued by global companies.

Walter Scott Global Long-term capital growth by investing GARP 100% Equity 100% Medium Equity Growth primarily in equities and ADRs issued by global companies.

Walter Scott International Long-term capital growth by investing GARP 100% Equity 100% Medium Equity Growth primarily in equities and ADRs issued by companies located outside of North America.

28 HORIZONS What’s got you excited about the latest changes? As the program grows, we methodically add new investment Masters Program new sub-advisors strategies and portfolio managers. We focus on areas that add to our investment-management style, breadth, and asset-class coverage, so clients have more investment choices. Walter Scott • This global equity manager was founded in 1983 and is The seven new investment strategies target investment objectives based in Edinburgh, Scotland. where we didn’t have strong representation, resulting in more options for clients to choose from. We added two new portfolio • They have an investment team of 44 managing ~$90 billion managers to the program: Asset Management and in AUM. Walter Scott. They both have strong, long-term track records • The firm employs a bottom-up, fundamental, research-driven and are considered industry leaders in the separately managed approach to finding companies that are capable of account space. long-term, sustainable, wealth generation.

The Masters Program continues to grow in Lazard Asset Management popularity with IIROC advisors. What’s the draw? • The firm’s history traces back to 1848. The program offers SMA options that have proven results. We don’t make additions to the program lightly, and that’s key. When we do • The firm has served as a trusted advisor to governments, add portfolio managers, we’re sure of them. We work with Manulife’s businesses, and individuals around the world. Investment Management Services team to screen the portfolio • It employs 340 investment professionals located in managers and do our due diligence and analysis on the firm. offices in 16 countries managing $211.5 billion in AUM. I think another big draw is the efficiencies the program creates for • It has a disciplined approach to investing with a advisors. It’s a timesaver. While advisors are still responsible for research-driven investment process that focuses on their client’s KYC information and ensuring the suitability of the financial productivity and valuation. program, the program lets advisors delegate security selection and trading discretion to the institutional portfolio manager. This way, advisors don’t need to spend their time on researching security choices, contacting their clients for trade approvals and all the administrative requirements involved in documenting and processing the transactions.

Advisors work with their clients to choose the solution that best meets their risk tolerance and financial goals. Then, both clients and advisors can leave the monitoring and day-to-day trading decisions to the program and its inherent investment and administration capabilities.

For more information about the Masters Private Account Program, check out resources including advisor and investor guides, and an overview on separately managed accounts on Repsource > Products > Manulife Securities > Masters Program (including ETF Portfolios) or contact the Managed Programs team at [email protected].

ISSUE 2 2019 29 BUSINESS BUILDING

30 HORIZONS Timberland + cranberries = smart investing

Manulife Private Wealth – a focus on real-asset investments for high-net-worth clients

Glen Brown, Vice President, and Managing Director, Head of Manulife Private Wealth discusses private assets, and specifically the trend for real assets: how they have a low correlation to public assets; how they reduce volatility in investment portfolios, and why you should refer your high-net-worth clients to Manulife Private Wealth for a broader scale investment strategy.

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ISSUE 2 2019 31 How can Manulife Private Wealth help advisors What are the benefits of investing in direct real better serve their high-net-worth clients? estate, agriculture, and farmland for clients? We offer clients access to a lower entry-level suite of exclusive private asset classes. These classes are designed to deliver There are several benefits in choosing global direct 1 diversification and growth benefits that complement a high- real estate : net-worth client’s overall investment portfolio. We make assets • Diversification/risk reduction: There is a low correlation to other that were once off limits to all but the wealthiest families and asset classes and exposure to different regional dynamics. Real institutional investors accessible to our high-net-worth clients. estate segments include retail, office, logistics, multi-residential, student, and seniors’ housing. Geographic allocation leads to How are real assets different from traditional greater risk diversification across multiple local markets real estate? • Less volatility: Typically, is less volatile than Real assets go a step beyond traditional, direct real estate. Real public real estate (REITs) and public equity because property assets include additional assets such infrastructure, timberland, valuations are conducted quarterly by independent, third- and farmland. Imagine investing directly in Quebec cranberry farms party appraisers or canola and wheat farms in Alberta. • Stable and compelling income returns: Income yield is a traditionally stable and transparent component of total returns Can you describe the attractiveness of real assets in a high-net-worth client’s portfolio? There are several benefits to investing in agriculture and farmland2: Pension and institutional investors have been investing in real assets for a long time. They’ve increased their asset allocation • As an alternative to bonds with attractive returns, these to include everything from timberland to farmland and gaining investments are typically stable, income-producing assets from additional benefits in terms of diversification, risk-adjusted returns, leasing and operating farmland, which provides attractive risk and and downside protection from the stock market. Under the right returns features compared to traditional asset classes circumstances, investing in timberland and farmland satisfies these • Global agriculture exposure provides diversification investors’ desire for an environmentally sustainable component to benefits across commodity types, geographies, and their investments. management approaches • A low correlation with stock market correction offers capital preservation in volatile markets • An ethical, environmental, social, and corporate-governance focus ensures accountability and socially responsible investing • These investments are an inflation hedge

“ Our fees to clients don’t change with our recommendations or the solutions they choose. We manage high-net-worth investors’ portfolios the same way we manage Manulife’s own balance sheet. We find the best-in-class, tailored solutions for investors by collaborating with investment professionals around the globe.” Glen Brown, Vice President and Managing Director, Head of Manulife Private Wealth

1 Refers to the Manulife Canadian Real Estate 2 Refers to the Manulife Real Asset Fund

32 HORIZONS Why should an advisor refer high-net-worth client to Manulife Private Wealth? We can help advisors grow their business and provide a greater range of wealth solutions to their high-net-worth clients. Our partnership with the Manulife Asset Allocation team means we’re armed with strategies to help clients navigate through volatile times by focusing on diversification and the client’s desired returns and risk tolerance.

How does the referral model work? We pay referral fees on our investment solutions, banking products, and services. We have a referral arrangement with both Manulife Securities dealers, and Manulife Securities Insurance Inc. Advisors are paid per the compensation arrangement they have with Manulife Securities.

Questions? To learn more, contact your Manulife Private Wealth Representative or call 1-855-283-1853 or visit us online at manulifeprivatewealth.com.

Repsource: Recognition & contracting > Business Services > Manulife Private Wealth

ISSUE 2 2019 33 BUSINESS BUILDING

The next big thing: advisors talk about Goals-Based Investing

34 HORIZONS Launched last fall exclusively to Manulife Securities advisors, Goals-Based Investing (GBI) is a unique solution and tool that uses variables such as age, income, health factors, and postal codes to help customers get a clearer picture of the income they may need at retirement. GBI also includes a built-in investment solution designed to help customers with their retirement income goals.

Today, we look at the tool’s adoption When you were introduced to GBI last year, what were through the eyes of a father-son advisor your initial thoughts on this new solution? team: Ron and David Rau. Ron: Initially, it seemed very complicated. I had to watch the videos several times. The more I reviewed the materials, the more it made sense. GBI is actually very simple. It brings predictability to a client’s retirement cashflow. That’s something that’s been missing in the Canadian market.

Following your introduction to GBI, what drove you to familiarize yourself with this solution? Ron: GBI puts us on a different playing field from the competition.It potentially fills the gap created by the decline in guaranteed products and RON RAU DAVID RAU guaranteed minimum withdrawal benefits. I stay up-to-date on what’s going CIP, Senior Investment Investment and on in the Canadian market place, and I believe Canadians are willing to pay Funds Advisor Insurance Advisor for security and guarantees. While GBI can’t give absolute guarantees, it can provide predictable income in a way that traditional investments can’t.

What customers do you think could benefit from the GBI solution? David: I think GBI is a great fit for lientsc who are paying higher management expense ratios or high guarantee fees. I also think GBI is particularly suited for very risk-averse clients who can’t handle a volatile market. It’s a great product, but it’s not for every client. It’s about knowing your clients.

GBI focuses on a goals-based approach to investing, rather than a traditional performance-based approach. What are your impressions of this important distinction? Ron: It takes some of the heat off performance. If you focus too much on performance, you’re simply pushing out a commodity. We’ve always been about the bigger picture and all the extra things we do for our clients. I like the concept of not having to focus just on returns.

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ISSUE 2 2019 35 How have your customers reacted to reframing Once they’ve understood the solution, how have the investment conversation from a traditional your customers generally reacted? performance-based approach to a goals-based David: I would say of all the clients we’ve presented GBI to, about approach? 98 percent of them have been interested. Ron : It’s a different concept for clients to wrap their heads around. Ron: We did make some mistakes positioning GBI. One client When you frame it the right way, it makes it easier for them to looked at the GBI returns versus an investment providing an eight understand. However, you need clients to think outside the box. percent return. He decided the alternative was better because That’s a hurdle we’ve had some success overcoming. he didn’t recognize what GBI offers. Another client viewed the term “liability” negatively when we were discussing the liability- How have you helped your clients overcome this driven investment approach behind GBI. What’s been key to our hurdle and provide clarity? clients understanding GBI is properly positioning the solution. Ron: We begin by talking to our clients about their desire for That’s been a learning curve for us. retirement income. We explain GBI and Manulife’s 20-year institutional history with liability-driven investment (LDI), which is How has GBI helped your business? the underlying investment strategy behind GBI. By doing so, we David: In terms of our business and our clients, it’s given us build up the track record and expertise of the LDI team. more flexibility. GBI is a product that can help us stand apart from our competitors. I think it’s a very marketable concept. GBI David: The GBI introductory video really helps present the is very enticing, especially when you consider the volatility we’ve GBI Solution clearly. Using the video, we’re better able to explain experienced in the last quarter of 2018. GBI to our customers and transition to the GBI tool with its on-screen visualization. For example, we’ve been able to walk Ron: GBI has helped our business by attracting new assets and clients through their projected retirement needs year by year and giving us the ability to implement a fee-for-service model. make adjustments to health or leisure expenses.

Questions?

• For Product and Sales support, contact GBI Specialist, Ian Miller, at [email protected] or 416-577-4844. • For processing and documentation support, contact Advisor Services at [email protected] or 1-800-991-2121. • For technical support, contact the Distribution Technology Support Centre at [email protected] or 1-800-667-4266. • For information visit Repsource > Administration > Manulife Securities > Goals-Based Investing

36 HORIZONS Palais Hansen Kempinski Vienna hotel, Vienna, Austria

Visit Repsource > Recognition & contracting > Conferences & events > President’s Circle > 2020 – Vienna, Austria for more details Qualification period: January 1, 2018 to December 31, 2019

Manulife, Manulife & Stylized M Design, Stylized M Design and Manulife Securities are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license MP1035215E 07/19 ISSUE 2 2019 37 PROFILES

Distributor Relations & Learning

At Manulife, we want to make it as easy as possible for advisors to Here’s an overview of what the team offers you: do business with us. The Distributor Relations & Learning (DR&L) Learn something new in five minutes team plays a big role in making that happen by providing advisor education that focuses on how to process insurance, investment, In five minutes or less, the Take five videos in the Repsource securities, and banking business with us in the most efficient way. Training Corners zero in on the basics covered in a 45-minute self- serve module. Take five videos provide a quick hit of easy-to-digest The team has 13 relationship consultants who provide direct information on a specific Manulife tool, process, or function and support to key accounts, and six learning and development are ideal for advisors and assistants who have a few minutes to fill consultants who design and create Repsource-based training and between appointments. resources for advisors and assistants. “ In their first year, the Take five videos had more “ Sales says, ‘What do you sell?’ We say, ‘How do than 71,000 hits, and the use of our self-serve you sell it?’ ” observes Kathy Schmidtke, Director, training doubled,” says Schmidtke. “Distributors Distributor Relations & Learning. “Our goal is to love the new training format and have told us it’s a understand what advisors and their clients need great way to engage their advisors and assistants to have a great experience with Manulife, and then with short bursts of important and actionable help advisors understand how to use Manulife’s content that they can consume at a time that’s many available tools to deliver that.” convenient for them.”

38 HORIZONS Go digital with insurance applications Throughout 2019, DR&L has been working with other Manulife Electronic insurance applications and electronic delivery of teams on the new eSignature forms, available in the Forms and insurance contracts are reinventing the sales process for Marketing area on Repsource. DR&L made sure the perspectives advisors—and the DR&L team is working hard to stay at the of advisors and distributors were considered and created training forefront of digital innovation. material to help everyone understand the new process. Advisors can complete the general information section of the forms online In June 2016, the DR&L team supported the launch of an and then send the forms to clients, so they can add an electronic eApplication tool for submitting term life and critical illness signature. Most of the 60 inforce forms are available for eSignature insurance applications. In February 2017, the team supported the already and we are moving the remaining forms to eSignature expansion of the tool’s capability to include all insurance products this year. except disability insurance. DR&L has also been supporting the eDelivery of new business insurance contracts since March 2018. eDelivery allows clients to review, sign, and set up pre-authorized payments at their convenience.

“ We’re at a 60% adoption rate for eApplication and a 40% adoption rate for eDelivery for policies that qualify,” says Schmidtke. “That’s huge, in a very short period of time.”

CONTINUED 〉

ISSUE 2 2019 39 Find legacy insurance product support Get to know Manulife Securities Manulife has about 400 products that advisors continue to service DR&L used to host a three-day, in-class Professional Development but that are no longer available for sale. To centralize information Workshop (PDW) geared towards preparing new advisors and about these legacy products, DR&L worked to create a Legacy assistants to accurately process and efficiently administer business Product Portal on Repsource and Manulife.ca. It’s searchable, with Manulife Securities. Now, the team has introduced a series of web-based and mobile-friendly, and there’s no need to log in to Take five videos related to onboarding in the Manulife Securities' Repsource to access the Portal. Training Corner on Repsource. These videos provide foundational knowledge before recruits attend a streamlined, two-day, “ In the first week after the Portal’s launch in March in-class session. 2019, we had more than 1,100 hits to the related Advisors and assistants can quickly get up-to-speed by reviewing Take five video,” notes Schmidtke. “It’s been a online content that covers the basics of the dealer’s technology platform and how to process business, place trades, and open huge success. Advisors are thrilled to know we’ve accounts. This way, in-class time in Manulife’s Oakville, Ontario been listening. They love that the Portal is digital, computer lab can be focused on more complex topics and hands- user-friendly, and solves a common problem.” on practice with fictional accounts. “ Consumers have embraced and now fully expect digital interactions. It’s how they want to do business, and we want to lead the way. Our team continues to look for ways to help advisors comfortably adopt new ways of doing things and be more efficient in their business,” says Schmidtke. “Whatever happens in the industry, we’re there for advisors, committed to providing them with memorable, positive customer experiences.”

Supporting advisors in a rapidly changing industry There’s no question the business is changing and fast. As advisors adapt to new technologies and processes, Schmidtke emphasizes that the DR&L team will continue to develop forward- thinking solutions backed by appropriate training and support.

40 HORIZONS Your little voice knows there’s more to a mortgage than the rate.

Your clients can save thousands in interest with Manulife One. Refer your clients to a Manulife Bank Mortgage Specialist.

Manulife Bank, Manulife One, Manulife Bank & Stylized M Design, and Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by Manulife Bank under license. ISSUE 2 2019 41 PROFILES

Jeff Hull, Senior Financial Advisor and branch co-owner, Manulife Securities Incorporated, is this year’s recipient of the National Leadership and Service Award.

42 HORIZONS This peer-nominated award recognizes an advisor who is an inspirational leader and positive role model and demonstrates exceptional character, integrity, and community leadership qualities.

We chatted with Jeff about what excellence means to him and How did you become involved with the learned about his lifetime of charity work and involvement with the Canadian Armed Forces? Why is it important Canadian Armed Forces. for you to give back to their organization? More than 20 years ago, I was invited to an Executrek program What’s the best part of being a where executives go behind the scenes at the Canadian Armed financial advisor? Forces. I became fascinated with what they do. One of the most The privilege of making a positive impact on a client and their memorable moments was during lunch when I got to sit among family’s future, and potentially even future generations. The best young people who would share why they got into the military and part is helping others reach their goals and objectives faster, better, why they were willing to sacrifice their lives in service. The fact and more safely using your unique abilities and skills. they were willing to die for other Canadians whom they may never have met affected me, and I had enormous respect for what they What career advice would you give your were doing. I wanted to give back to them and help the military to younger self? achieve some of its goals. Early in my career, I would have told my younger self to be pickier I became more and more involved and even started managing accepting clients. Headache clients will distract you from other money for the oldest Canadian regiment. Eventually, I had clients who are far more deserving of your attention and time. the honour of becoming a member of the board for the NATO Association of Canada. I’ve worked to elevate the profile and I’ve met with potential clients where my gut knew we wouldn’t understanding of NATO and helped other countries better be a good fit and, even if they were bringing a lot of money in, it understand each other and appreciate the benefits economically. wouldn’t be worth the disruption to my practice or staff. Best to pass. Sometimes when you’re starting out, it’s tough. You want as many clients as you can to build your business. But being selective upfront will help you immensely in the long run when you get great referrals from great clients who believe in what you do and who are onboard with your methodology.

“ Early in my career, I would have told my younger self to be pickier accepting clients. Headache clients will distract you from other clients who are far more deserving of your attention and time.”

CONTINUED 〉

ISSUE 2 2019 43 We've noticed giving back is a common trait of successful advisors, why do you think that is? I think perhaps successful advisors are never truly satisfied. They’re always reaching for something better. For a lot of successful people, success breeds success. Just like steel sharpens steel.

The work I’ve done with law enforcement and the military has given me new insights and angles on my business. It keeps fresh perspectives flowing.

You received your award at the 2019 Circle of Jeff shared the proud event with his daughter, Brittany Hull. Excellence. What does excellence mean to you? Excellence has a component of wisdom in it that comes from learning from others’ mistakes or learning from others who can share superb ideas, whether they’re mentors or colleagues.

Listening to others, especially from people who exhibit excellence, are in leadership roles, or have contributed uniquely to society is key. Keeping that curiosity as to how and why they achieved what they did is always a great learning experience, and it makes me a better person.

“ Excellence has a component of wisdom in it that comes from learning from others’ mistakes or learning from others who can share superb ideas, whether they’re mentors or colleagues.” Jeff poses with Rick Annaert (left) and George Garner (right).

Jeff thanks his colleagues for his nomination.

44 HORIZONS IN EVERY ISSUE

Training calendar

Are you new to Learn at your Registered Education Navigating the Legacy Manulife Securities? own pace Savings Plan (RESP) Portal | Take five video learning series | CE It’s now a whole lot easier to Introductory Professional accredited self-serve service your legacy business. Development Workshop training Workshop dates* content is available online! Become familiar with We’ve launched an easy-to- | Self-serve training the various policies and use, online tool that helps you October 7- 8 Based on your feedback, procedures surrounding quickly search legacy insurance self-serve material is available RESPs through three modules product information. Watch our November 11-12 on Repsource in the Training that cover investing in, short video to see the Legacy Corner. Now new advisors and administering, and facilitating Portal in action and give it a try! December 9-10 assistants can get foundational withdrawals from RESPs. Repsource > Training > knowledge before they attend *Subject to change Training corner > Insurance > the PDW in its new, two-day, Repsource > Training > CE Take five videos in-class format. The Training Centre > search by title Corner contains a compilation Corporate signing job aid | In-class Professional of short Take five videos and For your Insurance Downloadable PDF Development Workshop applicable reference/support business One of the main reasons for Take advantage of our new, materials to help you become delays processing corporate two-day, in-class workshop held familiar with our core systems Advisor training on policy requests is missing or at our head office in Oakville, and business processes. Visit e-delivery | Take five video incorrect signatures. Review our Ontario. You’ll learn everything our new site to learn more. This video gives a review new job aid, Corporate signing you need to know about of the eligibility criteria for requirements. Learn what Repsource > Training > Training Manulife Securities, including electronic contract delivery signatures Manulife will accept corner > Manulife Securities > how to accurately process (e-delivery), with tips on how to when a policy is corporately Onboarding > New to and efficiently administer assist your clients through the owned, and avoid unnecessary Manulife Securities your business. e-delivery process. processing delays.

The intensive, hands-on Repsource > Training > Repsource > Training > training allows you to Training corner > Insurance > Training corner > Insurance > practise a variety of business Take five videos Job Aids > Inforce processes such as opening accounts and placing trades, all while earning Continuing Education (CE) credits.*

To register for PDW, contact your recruiter.

ISSUE 2 2019 45 IN EVERY ISSUE

Trade desk and head office holiday hours HORIZONS

Regular Trade Desk department hours are 8:30 a.m. to 5 p.m. Regular market trading hours are Horizons is sponsored by 8:30 a.m. to 4 p.m. Regular equity market trading hours are 9:30 a.m. to 4 p.m. Manulife Securities and created by the Advisor Bond Equity GIC Communications team. Trade Desk Hours are shown in market trading market trading trading Email us your comments, Eastern Time (ET). United United United Canadian Canadian Canadian Canadian questions, and story States States States ideas: advisor_ THANKSGIVING / COLUMBUS DAY communications@ manulife.ca Friday, October 11, 2019 Early close: 8:30 a.m. to 1 p.m Monday, October 14, 2019 Holiday hours: Closed Closed Closed (Head office closed) 9 a.m. to 4 p.m. REMEMBRANCE DAY Friday, November 8, 2019 Early close: 8:30 a.m. to 1 p.m. Monday, November 11, 2019 Closed Closed U.S. THANKSGIVING Thursday, November 28, 2019 Closed Closed Friday, November 29, 2019 Early close: Early close: 8:30 a.m. to 8:30 a.m. to 1 p.m. 1 p.m. CHRISTMAS Tuesday, December 24, 2019 Early close: 8:30 a.m. Early close: 8:30 a.m. Early close: 8:30 a.m. to 1 p.m. to 1 p.m. to 1 p.m. Wednesday, December 25, Closed Closed Closed Closed 2019 (Head office closed) BOXING DAY Thursday, December 26, Holiday hours: 9 a.m. Closed Closed Closed 2019 (Head office closed) to 4 p.m NEW YEAR’S EVE Tuesday, December 31, 2019 Early close: 8:30 a.m. to 1 p.m. NEW YEAR’S DAY Wednesday, January 1, 2020 Closed Closed Closed Closed U.S. MARTIN LUTHER KING JR. DAY

Monday, January 20, 2020 Closed Closed

FAMILY DAY / WASHINGTON’S BIRTHDAY Manulife, Manulife & Stylized M Design, Stylized M Design and Friday, February 14, 2020 Early close: 8:30 a.m. Manulife Securities are trademarks to 1 p.m. of The Manufacturers Life Insurance Company and are used by it, and by Monday, February 17, 2020 Closed Closed Closed Closed its affiliates, under license. Manulife GOOD FRIDAY Securities is a name used in asso- ciation with the related companies Thursday, April 9, 2020 Early close: 8:30 a.m. Manulife Securities Incorporated (an investment dealer), Manulife to 1 p.m. Securities Investment Services Inc. Friday, April 10, 2020 Closed Closed Closed Closed (a dealer) and Manulife Securities Insurance Inc. (a life insur- ance agency operating in the national The entire 2019/2020 holiday schedule is available on Repsource > Recognition & contracting > accounts sales channel). Manulife Business Services > Advisory Services > Manulife Securities > Trade Desk > Related Marketing Materials. Securities Insurance Inc. operates as Manulife Securities Insurance Agency Questions? Contact the Trade Desk at [email protected] or 1-800-991-2121 (option 3). in the province of B.C. CS1141E 08/19

46 HORIZONS ISSUE 2 2019 47 Can retirement income be as predictable as your

Manulife Goals-Based Investing aims to serve.

Use the Manulife Goals-Based Investing program to overcome a major challenge facing your business today: helping your clients meet retirement income needs. Visit repsource.ca/GBI

The GBI Tool is for educational and illustrative purposes only. Projected expenses and income illustrated by the GBI Tool are estimates and not you will eventually deplete your investment and you will no longer receive income. You and your advisor are responsible for considering what meets trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts as well as the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated. Goals-Based Investing Solutions are managed by Manulife Investment Management Limited (formerly named Manulife Asset Management Limited). Manulife, Manulife Investment Management, the Stylized M Design, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life

MP1094808E 08/19