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2019 Performance Credit rate for Performax Gold

Performax Gold Performance Credit rate
The Performance Credit (PC) rate for Performax Gold policies is 3.94%, effective March 31, 2019 to March 30, 2020. This rate corresponds to the smoothed yield of the Performax Gold Investment Fund (PGIF) as at December 31, 2018. We will apply this rate on the policy anniversary to determine the policy’s Performance Credit. The Performance Credit helps to increase the policy’s cash value and/or death benefit.

How we set the rate
The PGIF smoothed yield and the PC rate are linked. The smoothed yield of the PGIF as at December 31 becomes the PC rate that we declare on March 31 of the following year. The PC rate stays in effect for 12 months. 

Historical Performance Credit Rate

Performance Credit rate effective date
Performance Credit Rate
March 31, 2019 – March 30, 2020
3.94
March 31, 2018 – March 30, 2019
5.25*
March 31, 2017 – March 30, 2018
5.25*
March 31, 2016 - March 30, 2017
6.00*
March 31, 2015 – March 30, 2016
6.25*
March 31, 2014 – March 30, 2015
6.25*
March 31, 2013 – March 30, 2014
6.50*
March 31, 2012 – March 30, 2013
6.84
March 31, 2011 – March 30, 2012
7.00*
March 31, 2010 – March 30, 2011
7.00*
March 31, 2009 – March 30, 2010
7.60
March 31, 2008 – March 30, 2009
8.50
November 2007 – March 30, 2008
8.20

Why is this year’s PC rate decrease larger than usual?
When Performax Gold was launched in 2007, we put in place a “better of” calculation for the PC rate. This meant that the better of the smoothed yields of PGIF and/or the Canadian Participating Account would be used to determine the PC rate.

March 31, 2019 marks the end of the “better of” calculation, and the PC rate is now solely determined based on the PGIF’s smoothed yield. An uncharacteristically large one-time decrease of the PC rate is a result of the conclusion of the “better of” calculation however, it is not representative of the range of the fluctuations expected for the PC rate in the future. Going forward, changes in the PC rate should be in line with the lower volatility usually associated with smoothed yields.

Performax Gold policies are designed to provide long term value for your clients. They are built to remain stable through decreasing interest rates, and to benefit from rising interest rates. Temporary reductions of the PC rate in the early years of a policy generally have minimal impact on long term values.

How to illustrate Performax Gold
To get an updated inforce illustration on a Performax Gold policy, please submit an inforce illustration request through Repsource.

For new business illustrations, use Diamond View. We will update Diamond View on March 29, 2019 to reflect this year’s PC rate.

More information
Learn more about the Performax Gold Performance Credit rate and see some inforce policy examples showing the impact of the new rate as well as other PC rate scenarios.

If you have any questions, please contact your Manulife representative or back office as appropriate.


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