Manulife Participating Account Returns 8.1% in 2025: Navigating Market Volatility Through Diversification and Long-Term Wealth Planning

Navigating Market Volatility: The Power of Diversification and Long-Term Vision

In an ever-changing economic environment, it is easy to become focused on short-term market fluctuations. However, when it comes to family wealth accumulation, retirement planning, and wealth transfer, the key lies in long-term strategy—navigating market cycles through balanced asset allocation and active management.

According to Manulife's Participating Account Overview — 2025 Annual Report, as of December 31, 2025, Manulife's participating account reported:

• Total participating account assets of $18.25 billion CAD.
• Approximately 306,272 in-force participating life insurance policies.
• A 2025 market-value-based investment return of 8.1%.
• A three-year average annualized return of 7.5%.

The core of a participating account is not about chasing the highest return in any single year. It is about supporting long-term insurance obligations and policyholder dividends through long-term, diversified asset allocation.

Diversified Asset Allocation: The Foundation of Long-Term Management

Manulife's participating account is not invested solely in the public equity markets. Instead, its assets are allocated across different asset classes to reduce the impact of any single market or asset class.

Based on the asset allocation Manulife has published, the participating account's assets include:

• Public market bonds
• Publicly listed equities
• Private equity
• Mortgage loans
• Real estate
• Private debt

This asset mix covers both fixed-income assets and long-term growth assets such as equities, real estate, and private assets. Manulife notes that when setting the participating account's investment strategy, it considers expected returns, risk, liquidity, product features, and regulatory and tax factors, managing overall risk through diversification.

More Than Protection: The Multi-Faceted Role of Par Insurance

• Establishing essential, long-term life coverage for your family's financial security.
• Building accessible policy value over time to complement retirement and cash flow strategies.
• Supporting tax-efficient wealth transfer, estate planning, and corporate succession strategies.

Insurance and Investments: Distinct Roles in a Complete Financial Plan

In a comprehensive financial plan, insurance and investments serve complementary—not interchangeable—roles. Investment portfolios typically focus on growth potential and liquidity. In contrast, participating life insurance provides risk protection, stable long-term value, and unique estate planning advantages. Determining whether par insurance fits your situation requires looking beyond single-year returns and evaluating your age, family obligations, asset structure, tax position, and long-term goals.

CGT Financial Services: Comprehensive Guidance Beyond Policy Issuance

Purchasing a policy is only the beginning. As a licensed insurance brokerage, CGT Financial Services helps you objectively evaluate options across leading insurance carriers. More importantly, we focus on ongoing policy management. As your family, business, and life stages evolve, we work with you to review coverage, cash flow needs, and estate goals—ensuring your plan continues to deliver value over the long run.