Presentation on theme: "FOR DEALER/ADVISOR USE ONLY| 1 EMPIRE LIFE INVESTMENTS READY…SET…GO! 2014 RRSP Season."— Presentation transcript:
FOR DEALER/ADVISOR USE ONLY| 1 EMPIRE LIFE INVESTMENTS READY…SET…GO! 2014 RRSP Season
FOR DEALER/ADVISOR USE ONLY| 2 AGENDA READY… Why Partner With Empire Life Investments? Investment Team and Approach …SET… Our Products and Services …GO! RRSP Season Solutions RRSP Season Opportunities
FOR DEALER/ADVISOR USE ONLY| 3 READY… WHY PARTNER WITH EMPIRE LIFE INVESTMENTS?
FOR DEALER/ADVISOR USE ONLY| 4 WHY PARTNER WITH EMPIRE LIFE INVESTMENTS? Our parents* long history Controlling interest held by one family since 1956 The Empire Life Insurance Company Founded 50 Years Managing segregated investments for Canadians *Empire Life Investments Inc. is a wholly owned subsidiary of The Empire Life Insurance Company
FOR DEALER/ADVISOR USE ONLY| 5 WHY PARTNER WITH EMPIRE LIFE INVESTMENTS? A committed parent, with strength and stability 265% Rated A (Excellent) A.M Best Company Rating as of June 2013 MCCSR Ratio as of Sept 30, 2013 Top 10 Life Insurance Companies in Canada* *Source: Office of the Superintendent of Financial Institutions (OFSI), and company annual reports – based on general and segregated fund assets
FOR DEALER/ADVISOR USE ONLY| 6 READY… INVESTMENT TEAM & APPROACH
FOR DEALER/ADVISOR USE ONLY| 7 Philosophy We believe that we can outperform by focusing on high-quality, attractively valued securities over the long term Style Value oriented Approach Bottom-up security selection Fundamental analysis Team oriented Manage downside risks Long term (3 to 5 years) Disciplined INVESTMENT TEAM & APPROACH Our philosophy
FOR DEALER/ADVISOR USE ONLY| 8 Intrinsic Value Screen Fundamental Analysis Portfolio Construction 80 to 100 companies Fundamental and industry analysis Evaluate relative attractiveness 40 to 60 best ideas Analyse portfolio attributes Manage risk 500 companies Seek discounts to intrinsic value (long-term net worth) Focus on margin of safety Key factors return on equity price to earnings dividend yield Investment Team & Approach Equity Investment Process
FOR DEALER/ADVISOR USE ONLY| 9 Data Source: Bloomberg, MSCI (November 1987 – November 2013) INVESTMENT TEAM & APPROACH Value investing at work Growth of $10,000
FOR DEALER/ADVISOR USE ONLY| 10 Data Source: Bloomberg (November 1988 – November 2013), 12 month trailing returns - during positive and negative markets INVESTMENT TEAM & APPROACH Value investing at work MSCI Canada Value Index Vs. MSCI Canada Index Upside Participation Downside Protection 84% 76%
FOR DEALER/ADVISOR USE ONLY| 11 …SET… OUR PRODUCTS & SERVICES
FOR DEALER/ADVISOR USE ONLY| 12 Mutual Funds Annuities Guaranteed Withdrawal Benefit Guaranteed Interest Options Segregated Funds Solutions offered by Empire Life and Empire Life Investments INVESTMENT SOLUTIONS
FOR DEALER/ADVISOR USE ONLY| 13 OUR PRODUCTS & SERVICES Class and Elite: Segregated Funds Choice Full range of asset classes Includes Portfolio Funds, our managed program Funds with up to 100% equity exposure Flexibility Two levels of guarantees: 75%/100% or 100%/100%* Growth 2 client-initiated resets per year take advantage of higher market values* Competitive and inclusive MERs Easy for clients to understand No extra fees for resets *There must be at least 10 years to the Maturity Date of the policy, 15 years if 100% MBG. No resets are permitted after December 31st of the year the Annuitant turns 80 years old.
FOR DEALER/ADVISOR USE ONLY| 14 Consolidated investment program Hold segregated funds and interest investments in one policy Segregated funds Guaranteed Interest Options Treasury Interest Options OUR PRODUCTS & SERVICES Elite and Elite XL Investment Programs
FOR DEALER/ADVISOR USE ONLY| 15 OUR PRODUCTS & SERVICES Our MERs save your clients money Using a 4% rate of return over 20 years that could mean over $7,500 in savings! On average, our funds MERs were more than 7% lower than MERs of their peers* *Source: Empire Life and Morningstar Direct, June MERs are category median and Class A Empire Life segregated funds. For illustration purposes only. Illustration assumes a 4% rate of return.
FOR DEALER/ADVISOR USE ONLY| 16 5% annual Income Base Bonus Builds income potential. 1 Client-friendly Automatic Income Reset increases automatically to next LWA tier. Retirement Income Privileges allow stop and start income payments. Excess Withdrawal Alert safeguards clients guaranteed income. Competitive fees. Potential for higher growth 3 of the 12 investment options offering 80% equity exposure. OUR PRODUCTS & SERVICES Class Plus 2: Guaranteed Retirement Income For Life TM 1 Income Base Bonus is a notional amount added to the Income Base at the end of each calendar year if no withdrawals are made for that year.
FOR DEALER/ADVISOR USE ONLY| 17 OUR PRODUCTS & SERVICES Mutual Funds* Simplicity 10 mutual funds Includes Emblem Portfolios, our managed program Funds with up to 100% equity exposure Flexibility Available in series T, 6% and 8% tax-efficient cash flow options Competitive MERs Competitive management fees and advisor compensation *Mutual funds are offered by Empire Life Investments Inc.
FOR DEALER/ADVISOR USE ONLY| 18 OUR PRODUCTS & SERVICES Empire for Life Loyalty Program Eligibility Empire Life Mutual Funds, Empire Life Class or Class Plus 2 Segregated Funds Loyalty pays A management fee distribution equal to 5% on December 31st of the year in which the investor reaches the 10-year anniversary and every year thereafter.* *Class/Class Plus 2 segregated funds and Elite/Elite XL contracts are issued by The Empire Life Insurance Company. The Empire for Life TM Loyalty Program management fee re-imbursement is distributed in the form of additional units. Investors must own the units on the distribution date in order to receive the management fee re-imbursement.
FOR DEALER/ADVISOR USE ONLY| 19 …GO! RRSP SOLUTIONS
FOR DEALER/ADVISOR USE ONLY| 20 Class Plus 2 offers 5% annual Income Base Bonus 1 every year for life, which builds clients income potential. Income Base Bonus potentially increases the Income Base by 75% in 15 years. WHY CLASS PLUS 2 THIS RRSP SEASON? Build their income potential 1 Income Base Bonus is a notional amount added to the Income Base at the end of each calendar year if no withdrawals are made for that year.
FOR DEALER/ADVISOR USE ONLY| people X 3 meals X 365 days X 20 years $438,000 Investor Needs and Challenges
FOR DEALER/ADVISOR USE ONLY| 22 Why your clients need income The peak of the baby boom is age 50 With the annual 5% Income Base Bonus, a one-time investment would increase by 75% in 15 years. $250,286 deposit is increased to $438,000 for the purpose of guaranteeing income for life. As you age, income is generally preferred relative to growth. Use Empire Class Plus 2 for all your income needs
FOR DEALER/ADVISOR USE ONLY| 23 CLASS PLUS 2 MARKETING SUPPORT
FOR DEALER/ADVISOR USE ONLY| 24 PUT EMBLEM PORTFOLIOS* TO WORK Simplify and diversify in one decision *Empire Life Emblem Portfolio are offered by Empire Life Investments Inc.
FOR DEALER/ADVISOR USE ONLY| 25 Instant Diversification One decision diversifies your clients investment across asset classes based on risk tolerance, time horizon and investment goals. Tactical Asset Allocation Asset mix is monitored and adjusted in response to market conditions. Transparency Portfolios invest directly in underlying securities rather than funds so your clients can see what they are invested in Accessible initial investment requirement of $2500 $50 subsequent deposits Enhanced statements Quarterly client statements with personalized rates of return PUT EMBLEM PORTFOLIOS TO WORK Program highlights
FOR DEALER/ADVISOR USE ONLY| 26 EMBLEM PORTFOLIOS MARKETING SUPPORT Online questionnaire and Investment Policy Statement
27 Empire Life Asset Allocation Fund Who should Invest? You are seeking growth and income by investing in a mix of primarily Canadian equity and fixed income securities Benchmark Asset Mix 65% equities, 35% fixed income RebalancingTactical CIFSC Category Tactical Balanced (5% - 90% equities) FOR ADVISOR USE ONLY
28 Empire Life Asset Allocation Fund Annualized Performance and Positioning (Class A) * Inception Date: May 1994 FOR ADVISOR USE ONLY Benchmark: 35% DEX Universe, 65% S&P/TSX Composite
29 Empire Life Asset Allocation Fund Positioning Fixed Income Increased shorter-term corporate bonds; remaining overweight Reduced provincial bonds Underweight Canada (federal) bonds Equity Added/Increased: Potash Corp, Computer Modelling Group, Rolls Royce Sold/Reduced: Enbridge, Safran FOR ADVISOR USE ONLY
FOR DEALER/ADVISOR USE ONLY| 30 …GO! RRSP SEASON OPPORTUNITIES
FOR DEALER/ADVISOR USE ONLY| 31 RRSP SEASON OPPORTUNITIES RRSP loan programs An RRSP loan is a great way to help clients to contribute the maximum Using a loan can mean the difference between retiring and retiring comfortably If your client is expecting a tax refund, they can defer their first loan payment up to six months 1 The above example is for illustrative purposes only. ¹ Although payments may be deferred, interest is calculated from the date of funding.
FOR DEALER/ADVISOR USE ONLY| 32 TFSARRSP 2014 Annual Maximum$5,500 18% of Previous Years Earned Income (up to $23,820)* Contributions Not tax deductible Tax deductible WithdrawalsTax–freeTaxable Government Income BenefitsEligibility unaffectedAffects eligibility Unused Contribution RoomCarried forward Taxes on Earnings / GrowthTax-freeDeferred *RRSP withdrawals used for the HBP (Home Buyers Program) must be re-contributed within 15 years; the LLP (Lifelong Learning Program) must be re-contributed within 10 years. RRSP SEASON OPPORTUNITIES Add TFSA to the discussion
FOR DEALER/ADVISOR USE ONLY| 33 RRSP SEASON OPPORTUNITIES Add TFSA to the discussion Maximize your meeting time. Discuss the benefits of additional tax sheltering through TFSAs when you discuss RRSPs. Example: A client opens a TFSA, contributing $31,000 (maximum unused 2014 contribution limit) today and $5,500 annually for 10 years. Assuming a growth rate of 6% and 50 clients, you could increase the value of your book by over $5.7 million in 10 years.* *For illustrative purposes only. Assuming all 50 clients never previously contributed to a TFSA
FOR DEALER/ADVISOR USE ONLY| 34 RRSP SEASON OPPORTUNITIES Add TFSA to the discussion *Morningstar Research Inc.,: 10-year rate of returns average ending November 30, 2013; S&P/TSX Composite Total Return (8.27%), 50% S&P/TSX Composite Total Return / 50% DEX Universe Bond (5.37%), 5-Year GIC (2.42%); Canadian Treasury Bill (2.09%). Many TFSAs are currently invested in savings or fixed-term deposits. We evaluate how a 10-year return in those investments compares to an investment in the market: Example: $31,000 initial contribution, $5,500 annual contribution, 10 year period* $155,998. $102,252. $140,449. $99,859.
FOR DEALER/ADVISOR USE ONLY| 35 RRSP SEASON OPPORTUNITIES TFSA Marketing Support Mutual Funds Segregated Funds
FOR DEALER/ADVISOR USE ONLY| 36 RRSP SEASON OPPORTUNITIES DCA never goes out of style Dollar cost averaging is a disciplined approach to investing Buy more units when prices are low and fewer when prices are high Avoids market timing and risk of lump sum investment Discuss a PAD plan for 2014 Assuming a starting price of $10 per unit, the table below shows how dollar cost averaging can help smooth the effects of market fluctuation.
FOR DEALER/ADVISOR USE ONLY| After Reset: Death Benefit increased by $4,693 Maturity Benefit increased by $3,520 For illustration purposes only. Note that resetting the 75/100 series Maturity Guarantee extends the maturity date by 10 years from the date of reset, and by 15 years for the 100/100 series. 1.Two client-initiated resets a year 2.No extra fee Death Benefit Guarantee Maturity Benefit Guarantee RRSP SEASON OPPORTUNITIES Have the reset discussion
FOR DEALER/ADVISOR USE ONLY| 38 RRSP SEASON OPPORTUNITIES New: Lifetime Withdrawal Amounts & Life Income Funds Option to access to full LWA & Life Income Funds Applicable if LWA exceeds legislated LIF maximum, which disallows withdrawal of full LWA. Strict requirements must be met to qualify for this election It is irrevocable Class Plus/Class Plus 2 features remain intact.
FOR DEALER/ADVISOR USE ONLY| 39 RRSP SEASON OPPORTUNITIES New: Annuity Settlement Option Situation Insurance products give peace-of-mind associated with the proceeds Sudden transfer of wealth may not be desirable for some beneficiaries Solution Gradual wealth transfer through innovative combination of payment and annuity Clients have flexibility and control over how death benefit proceeds paid out How it works All Empire Life insurance and investment contracts-inforce and new applications Choice of either a) 100% annuity option OR b) Partial upfront payment with the balance paid via Life or Term Certain annuity Benefits Maintain influence with family and retain assets Estate planning opportunity - include in sales process and annual reviews Client peace of mind
FOR DEALER/ADVISOR USE ONLY| 40 RRSP SEASON OPPORTUNITIES Discussion Points 1.Tax Planning Take advantage of various tax-efficient savings vehicles. VehicleDetails RRSP2013 contribution limit is $23,820 Deadline: March 3, TFSA2014 contribution limit is $5,500; cumulative contribution limit is $31,000
FOR DEALER/ADVISOR USE ONLY| 41 RRSP SEASON OPPORTUNITIES Discussion Points 2.Guaranteed Income Do your clients have a reliable retirement income source? Possible solutions may be GWBs (Class Plus 2) or annuities (Empire Life Immediate Annuities), which provide guaranteed retirement income. Check out Class Plus 2-Guaranteed Retirement Income for Life TM and Empire Life Immediate Annuities
FOR DEALER/ADVISOR USE ONLY| 42 RRSP SEASON OPPORTUNITIES Discussion Points 3.Asset Allocation/Portfolio Rebalancing Asset classes perform differently over time so a portfolio can drift from its target asset mix. Does the current asset allocation reflect your clients time horizon, risk tolerance, and investment goals? A potential solution is a Portfolio program, which rebalances the asset mix to ensure it reflects the investor profile.
FOR DEALER/ADVISOR USE ONLY| 43 Social Media is here! Get the latest perspective from our Portfolio Managers! Join in the conversation! Located at
FOR DEALER/ADVISOR USE ONLY| 44 Thank You! We Appreciate Your Business
FOR DEALER/ADVISOR USE ONLY| 45 Disclaimer Empire Life Investments Inc. is the Manager of the Empire Life Mutual Funds (the Funds) and is the Portfolio Manager of the Empire Life segregated funds. Empire Life Investments is a wholly-owned subsidiary of The Empire Life Insurance Company. The units of the Funds are available only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such units. Nothing contained herein shall constitute, or shall be deemed to constitute, investment advice or a recommendation to buy or sell a specific security, by the Portfolios, Funds or their manager, Empire Life Investments Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. The information in this presentation is for general information purposes only and is not to be construed as providing legal, tax, financial or professional advice. Empire Life Investments assumes no responsibility for any reliance made on or misuse or omissions of the information contained in this presentation. Please seek professional advice before making any decision Past performance is not a guarantee of future performance. Empire Class Segregated Funds, Class Plus 2 and Elite/Elite XL Investment Program contracts are issued by The Empire Life Insurance Company. A description of the key features of the individual variable insurance contract is contained in the Information Folder for the product being considered. Any amount that is allocated to a Segregated Fund is invested at the risk of the contract owner and may increase or decrease in value. ®/ Trademarks of The Empire Life Insurance Company – used under license