My Manulife ILP sub-fund portfolio has lost 30% of its value since DCA 2009, i’ve stopped the monthly contribution already. Should I surrender policy and put the funds elsewhere or just wait and hold?

If i am right, this ILP has insurance component. considering that it is more than 20 years, about 50% or premiums could be used for paying for cost of insurance, benefits and fees.

now that you have stop contribution, the insurer will be force selling units to pay for the insurance coverage, fees and benefits. double whammy since you bought at high and now is sell low.

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you could 1) keep the policy if it still covers death and TPD, but you have to be comfortable with the drawdown from your fund value

2) buy another pure coverage plan, then terminate this current ILP (make sure the new plan is incepted first). pure term insurance plan will be cheaper than an ILP.

3) convert to investment plan (if the plan has this option), ie no insurance coverage. so you stop losing money on insurance, yet if the market recovers, you may get recroup some losses (unlikely will go back to breakeven). if the policy allows, you may get to switch funds but usually with a fee.

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hope this helps.

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edit:

don't bother trying to get a manulife adviser or any "independent" advisor to advise you on the funds. 20 years plan, they will not get any commissions, so they will heck care you. if you have advisor friend or trusted advisor can try to seek their advise as well.

• High fee aside.
• China and Asian heavy portfolio (more than ~60%), then 完了，完了，完了，bbq 了.
• Probably just hold 1st, china had been in a bear market for almost 1yr+.
• Should not have such heavy weightage on emerging market, unless you are actively managing your own portfolio.
• The person who design this portfolio never consider properly.

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