Playing it Safe

1. Playing it Safe

2. The mature investor • Less time for markets to work on your behalf • Advisors recommend taking less risks

3. Principal Protected Notes (PPNs) may be an option • Growth potential of equity markets • Conservative investments not providing enough after-tax return

4. What are PPNs?

5. Hybrid investments Mutual funds, stocks, market indexes and/or commodities Bond or GIC

6. Primary feature • Earn similar rate of return • Without risking principal invested • Term-to-maturity between 5–10 years • Some cashable sooner

7. Why are PPNs becoming so popular?

8. Demand • Ability to achieve equity-like market returns • Principal not at risk

9. Today’s low interest rate environment • GICs, bonds and Treasury bills may only gain 2-3% per annum • PPNs could gain back some of the wealth erosion

10. Liquidity • Secondary markets exist* • Allow you to redeem PPN before it matures *Manulife cannot be certain there will be a secondary market for these in the future.

11. Tax on PPNS • Capital gain or capital loss • Tax incentive to redeem PPN prior to maturity • Gains at maturity treated as interest income

12. Three reasons why PPNS are popular • Low interest rates • Aging population • Risk-wary investors

13. Making PPNs part of your financial plan

14. Take profits • Reinvest profits into a PPN linked to an equity-type investment • Capture recent market returns • Protect capital • Obtain future equity market returns and minimize undue risk • Avoid making untimely market decisions

15. Alter asset allocation without increasing risk • Substitute for fixed-income investments • Can provide a guarantee of principal at maturity • Can function like guaranteed investments • Guard against loss of capital • Boost return potential

16. Leveraged investing with a safety net • Offer benefits of leverage • Help minimize risk • Incorporate leverage to boost returns • Fully protected against potential losses

17. PPNs take the emotion out of investment decisions

18. Speak to your advisor • PPNs not sold on a continuous basis • Formulate a strategy that makes best use of features and benefits of PPNs

19. Important notes The commentary in this presentation is for general information only and should not be considered investment or tax service to any party. Individuals should seek the advice of professionals to ensure that any action taken with respect to this information is appropriate to their specific situation. Manulife Investments is the brand name identifying the personal wealth management lines of business offered by Manulife Financial and its subsidiaries in Canada. As one of Canada’s largest integrated financial services providers, Manulife Investments offers a variety of products and services including: segregated funds, mutual funds, principal protected notes, annuities and guaranteed interest contracts. Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation. PPNs may not be suitable for all investors and are subject to certain risks, which investors should consider before investing. Some conditions apply. Investors should obtain and read a copy of the Information Statement for all applicable fees, and for an explanation of how the return on the Notes will be determined. Commissions, management fees and expenses all may be associated with this investment. The investor's principal is guaranteed at maturity only for Notes purchased at the issue price and held until the Maturity Date.