Manulife Taps BlackRock to Blend Index Funds with Insurance Security

TORONTO, ON – November 26, 2025 – Manulife Canada, the nation's largest insurance company, has announced a significant strategic move by partnering with asset management giant BlackRock to launch a new suite of segregated funds. This initiative introduces four index-based funds, marking the first time Manulife has integrated BlackRock's renowned passive investment strategies into its insurance-protected product lineup. The launch signals a pivotal moment in the evolution of Canadian wealth management, directly addressing a growing investor demand for products that merge the low-cost efficiency of index investing with the robust safety nets of insurance contracts.

A Strategic Alliance for a New Breed of Investor

The collaboration brings together two titans of the financial world: Manulife, a leader in insurance and wealth solutions, and BlackRock, the world's largest asset manager and a dominant force in index funds and Exchange Traded Funds (ETFs). The new offerings, branded as Manulife BlackRock Segregated Index Funds, aim to provide what many see as a hybrid solution for the modern investor.

The four new funds provide broad exposure to key markets:
* Manulife BlackRock Canada Universe Bond Index Fund
* Manulife BlackRock Canadian Equity Index Fund
* Manulife BlackRock U.S. Equity Index Fund
* Manulife BlackRock International Equity Index Fund

These products will be available through Manulife's popular GIF Select – InvestmentPlus platform, which offers guarantees on 75% or 100% of principal at maturity or death, as well as through the Manulife Segregated Fund RESP for education savings.

"At Manulife, we're focused on giving advisors the tools they need to help Canadians protect and grow their wealth," said Paul Savage, Head of Individual Insurance at Manulife Canada, in the company's announcement. "By adding these new funds, we're offering cost-conscious investors simple, broad market exposure to complement actively managed strategies." This statement underscores a deliberate effort to attract investors who have been drawn to the simplicity and lower fees of passive investing but remain hesitant to forgo the security that traditional insurance products provide.

The Hybrid Value Proposition: Blending Growth and Guarantees

The core innovation lies in the product's structure. On one hand, it leverages the core principle of index investing: instead of trying to beat the market with hand-picked stocks, the funds aim to replicate the performance of a broad market index. This passive approach, popularized by ETFs, is known for its transparency and significantly lower management fees compared to traditional actively managed funds.

On the other hand, these are not standard index funds. By packaging them as segregated funds, Manulife embeds a layer of insurance. Segregated funds are technically individual insurance contracts, a structure that provides unique benefits not found in mutual funds or ETFs. These include a maturity guarantee, which protects a significant portion (typically 75% or 100%) of the initial investment if held for a specific term, and a death benefit guarantee that pays out to a named beneficiary, bypassing the often lengthy and costly probate process. This feature also provides potential protection from creditors.

The "cost-conscious" label, however, requires context. The embedded insurance guarantees come at a price, meaning the Management Expense Ratios (MERs) for these segregated funds will inevitably be higher than those of their pure ETF counterparts. While specific MERs for the new BlackRock funds have yet to be detailed, Manulife's existing actively managed segregated funds can carry MERs approaching 3%. Its earlier suite of ETF-based segregated funds, launched in 2021, featured MERs ranging from approximately 1.9% to 2.5% in its InvestmentPlus series. The new BlackRock index funds are expected to be priced competitively within this range, offering a more affordable option than their actively managed peers while still charging a premium over standalone ETFs for the added security.

Reshaping a Competitive Landscape

While the partnership with BlackRock is a headline-grabbing move, Manulife is not the first Canadian insurer to venture into the hybrid space of index-based segregated funds. Competitors like BMO Insurance, with its "BMO ETF GIFs," and Canada Life, with its "Index ETF Portfolios," have already established similar offerings, recognizing the shifting investor appetite. This launch can be seen as a strategic necessity for Manulife to remain competitive and meet the evolving demands of financial advisors and their clients.

What sets Manulife's new offering apart is the direct association with BlackRock. By leveraging BlackRock's globally recognized brand and deep expertise in passive management, Manulife adds a powerful layer of credibility to its index-based products. This could be a key differentiator in a market where trust and brand recognition are paramount.

The timing of this launch is also significant. After a period of decline, segregated fund sales have seen a remarkable resurgence. Total gross sales in Canada grew by over 39% in 2024 and continued their strong upward trajectory into 2025. Analysts attribute this rebound to recent market volatility, which has reminded investors of the value of downside protection. At the same time, the relentless growth of ETFs continues unabated, with Canadian investors pouring record amounts into these low-cost vehicles. Manulife's new product line sits squarely at the intersection of these two powerful trends, attempting to capture investors from both camps.

Simplifying Security for the Modern Investor

For many Canadians, particularly those approaching retirement or planning their estates, the investment landscape can be daunting. The choice often seems to be between high-growth, high-risk equities and low-growth, low-risk fixed-income products. Hybrid solutions like index-based segregated funds aim to offer a compelling middle ground. They provide a straightforward way to participate in the growth of global stock and bond markets while placing a firm floor under potential losses.

This simplification is a key part of the appeal. Rather than constructing a complex portfolio of individual stocks or actively managed funds, an investor can achieve broad diversification through a single product. For cautious investors, this combination of simplicity and security can be a powerful motivator. The inclusion of these funds within a Registered Education Savings Plan (RESP) also extends this peace of mind to families saving for a child's future education, ensuring their principal is largely protected.

Ultimately, Manulife's collaboration with BlackRock reflects a broader transformation within the wealth management industry. The era of one-size-fits-all financial products is fading, replaced by a demand for more tailored, flexible solutions. As investors become more educated and fee-sensitive, financial institutions are being pushed to innovate, breaking down the traditional silos between investment and insurance to create products that better reflect the complex financial realities of modern life. This new suite of funds is a clear example of that evolution in action, offering a packaged solution that seeks to deliver market growth without sacrificing peace of mind.