John Hancock boosts dollar cost averaging for VAs

FWR Staff

16 August 2006

New approach driven by contemporary market and interest-rate environment. John Hancock has launched an "enhanced dollar cost averaging" program for its Venture Variable annuity. The initiative is meant to appeal to financial advisors whose clients prefer easing into variable-annuity investments rather than barreling straight in.

Alleviating hesitation

"The EDCA approach is an important tool for a segment of the financial-advisor marketplace, and we want to be responsive to their needs in serving their clients," says Bob Cassato, head of product distribution at Boston-based John Hancock.

The new program lets investors move a pre-set amount from an EDCA fixed account into selected variable sub-accounts every month. The account balance earsn interest until the transfer is complete.

This gradualist approach helps investors "take steps toward planning for a secure retirement," says Hugh McHaffie, a senior v.p. at John Hancock Variable Annuities. "We wanted to help alleviate any hesitation some investors may feel about purchasing an annuity in a rising interest rate environment, and putting the funds to work amid a choppy equity market."

John Hancock is a unit of Manulife Financial, a Toronto, Canada-based financial service company. -FWR