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Manulife Global Fund – Preferred Securities Income Fund​

Regular income from a unique investment1

What are preferred securities?​

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Attractive yields with high credit quality

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Fund information​

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What are preferred securities?​

 

Preferred securities are a hybrid of bonds and equities with features from both asset classes. Preferred securities rank between senior debt and common equity in the capital structure of a corporate.

AC200931 Manulife Brochure Adaptation_0624_V06

Attractive yields with high credit quality

 

Attractive yields relative to other income-producing securities

Preferred securities are one of the highest yielding sectors of the fixed income market, offering investors​ potentially higher yields than investment grade bonds.​

 

Yield to maturity2 

 

SGD-focused, minimising foreign currency exposure

The Fund is invested in both SGD denominated and non-SGD denominated bonds.

Investments in non-SGD denominated bonds are hedged back to SGD.

Yield to maturity

 

High credit quality with low default rate​

Most preferred securities are issued by well-known corporates such as large banks and insurers, with high credit quality. Historically, default rate in the preferred securities market is low, and comparable to global investment grade corporate bonds.​

 

Averaged long term default rates3 

Averaged long-term default rates

 

Strong historical returns over the past decade​

Preferred securities only saw one negative calendar year return in past decade.​

 

10-year historical returns​4

10-year historical returns

Fund information

Share Class Class AA (SGD Hedged) MDIST (G) Class AA (USD) MDIST (G) Class AA (AUD Hedged) MDIST (G)
Investment objective The Fund aims to provide income generation with potential long term capital appreciation by investing primarily in preferred securities.
Inception date 11/09/2018
ISIN code LU1850216372 LU1813986715 LU1813986806
Bloomberg ticker MLPIASM LX MLPIAUM LX MLPIAAM LX
Base currency USD
Mode of subscription Cash and SRS Cash Cash
Minimum investment HKD 20,000 (or the equivalent in any other major currency) HKD 20,000 (or the equivalent in any other major currency) HKD 20,000 (or the equivalent in any other major currency)
Distribution frequency1 Monthly
Management fee 1.10% p.a.
Initial sales charge Up to 5.0%
Dealing frequency Daily
Investment manager Manulife Investment Management (US) LLC
Fund size USD 301.39 million (as of 31 March 2021)
  Class A-
QDis SGD
Investment objective​ The Fund aims to provide investors with long-term capital appreciation and/or income in SGD terms through investing primarily in Asian investment grade fixed income or debt securities.​
Base currency​ SGD​
Mode of subscription​ Cash and SRS​
Share class currency​ SGD​
Launch price​​ SGD 1.00 per unit​​
Minimum investment​ S$1,000​
Distribution frequency​ Declare quarterly distributions on 15th calendar day of March, June, September and December  (or the next Business Day if that day is not a Business Day)​
Management fee​ 1% p.a.​
Initial sales charge​ Up to 3.0%​
Initial sales charge​ Up to 3.0%​
Dealing frequency​ Daily​
Investment manager​​ Manulife Investment Management (Singapore) Pte. Ltd.​

Investment objective​: The Fund aims to provide income generation with potential long term capital appreciation by investing primarily in preferred securities.​

Base currency​: USD

Mode of subscription​: Cash and SRS​

Share class currency​: SGD​

Launch price​: SGD 1.00 per unit​

Minimum investment​: HKD 20,000​ (or the equivalent in any other major currency)​

Distribution frequency1​: Monthly

Management fee​: 1.1% p.a.​

Initial sales charge​: Up to 5.0%​

Dealing frequency​: Daily​

Investment manager​: Manulife Investment Management (US) LLC​

Investment objective​: The Fund aims to provide income generation with potential long term capital appreciation by investing primarily in preferred securities.​

Base currency​: USD

Mode of subscription​: Cash

Share class currency​: USD

Launch price​: USD 1.00 per unit​

Minimum investment​: HKD 20,000​ (or the equivalent in any other major currency)​

Distribution frequency​1Monthly

Management fee​: 1.1% p.a.​

Initial sales charge​: Up to 5.0%​

Dealing frequency​: Daily​

Investment manager​: Manulife Investment Management (US) LLC​

Investment objective​: The Fund aims to provide income generation with potential long term capital appreciation by investing primarily in preferred securities.​

Base currency​: USD

Mode of subscription​: Cash

Share class currency​: AUD​

Launch price​: AUD 1.00 per unit​

Minimum investment​: HKD 20,000​ (or the equivalent in any other major currency)​

Distribution frequency​1Monthly

Management fee​: 1.1% p.a.​

Initial sales charge​: Up to 5.0%​

Dealing frequency​: Daily​

Investment manager​: Manulife Investment Management (US) LLC​

 

Portfolio managers

Murray Collis

 

Joseph H. Bozoyan, CFA, is a portfolio manager in the Preferred Income Management Team at Manulife Investment Management. He was previously a managing director and senior investment analyst in Manulife’s Intrinsic Value Team, providing dedicated research for all strategies managed by that team. Prior to joining the company, Joe was a senior equity analyst in small, SMID and all cap portfolios at Ironwood Investment Management. Earlier in his career, he held analyst roles at companies such as Evergreen Investments, RCM and Sun Life. He is a CFA charterholder and a member of the CFA Society Boston, Inc.​

Joseph H. Bozoyan, CFA, is a portfolio manager on the Preferred Income Management Team at Manulife Investment Management. He was previously a managing director and senior investment analyst on Manulife’s Intrinsic Value Team, providing dedicated research for all strategies managed by that team. Prior to joining the company, Joe was a senior equity analyst on small, SMID and all cap portfolios at Ironwood Investment Management. Earlier in his career, he held analyst roles at companies such as Evergreen Investments, RCM and Sun Life. He is a CFA charterholder and a member of the CFA Society Boston, Inc.​

Murray Collis

 

Bradley Lutz, CFA, is a managing director and portfolio manager in the Preferred Income Team at Manulife Investment Management. Brad is also a senior investment analyst, supporting the company’s fixed income strategies. He provides expertise in the power & utility, aerospace & defense, and industrial sectors. Most recently, he was responsible for the same duties at Declaration Management & Research, an affiliate of Manulife. Earlier in his career, he worked for Summit Investment Partners in Cincinnati, Ohio, with research, trading and portfolio management responsibilities for high yield and investment grade corporate bonds. Before Summit, Brad was with Pacholder Associates, Inc. as a high yield credit analyst. Brad is a CFA charterholder.​

Bradley Lutz, CFA, is a managing director and portfolio manager on the Preferred Income Team at Manulife Investment Management. Brad is also a senior investment analyst, supporting the company’s fixed income strategies. He provides expertise in the power & utility, aerospace & defense, and industrial sectors. Most recently, he was responsible for the same duties at Declaration Management & Research, an affiliate of Manulife. Earlier in his career, he worked for Summit Investment Partners in Cincinnati, Ohio, with research, trading and portfolio management responsibilities for high yield and investment grade corporate bonds. Before Summit, Brad was with Pacholder Associates, Inc. as a high yield credit analyst. Brad is a CFA charterholder.​

Notes:

1. The intention of Manulife Global Fund to make the monthly distribution and the distribution yield for the Fund is not guaranteed, and Manulife Global Fund may in future review the distribution policy depending on prevailing market conditions. The Fund invests mainly in preferred securities.​

2. Bloomberg, Manulife Investment Management, as of 30 November 2020. Fixed Income yields refer to yield to maturity. Index ratings refer to Bloomberg composite rating US HY bonds – ICE BofAML US High Yield Index; Preferred securities – ICE BofAML US All Capital Securities Index; USD EM bonds – ICE BofAML Emerging Markets Corporate Plus Index; US BBB grade corporate bonds - ICE BofAML US corporate BBB index; US IG Corp bonds - ICE BofAML US Corporate Index, US Treasuries - ICE BofAML US Treasury & Agency Index; Global bonds - ICE BofAML Global Broad Market Index. For illustrative purposes only. Past performance is not an indication of future results. The above yield to maturity does not represent the distribution yield of the Fund and is not an accurate reflection the actual return that an investor will receive in all cases. A positive distribution yield does not imply a positive return.

3. Global high yield bonds and global investment grade bonds default rate are sourced from Moody's Investor Services, as of 31 December 2019. Preferred Securities default rate from 1990-2017 was calculated by Wells Fargo. Beginning in 2018 Manulife Investment Management used the BofAML US All Capital Securities Index to calculate the annual default. As of 31 December 2019. Past performance is not indicative of future performance.

4. Morningstar, as of 31 December 2020. Preferred securities market is represented by 50% ICE BofAML Fixed Interest Preferred Securities Index (P0P1) and 50% ICE BofAML US Capital Securities Index (C0CS) from 2009-2012, and the market is represented by ICE BofAML US All Capital Securities Index (I0CS) since 2013. Past performance is not indicative of future performance.

Important Information

Manulife Global Fund (the “Company”) is an open-ended investment company registered in the Grand Duchy of Luxembourg. The Manulife Global Fund – Preferred Securities Income Fund (the "Fund") is recognised under the Securities and Futures Act of Singapore for retail distribution. The Company has appointed Manulife Investment Management (Singapore) Pte. Ltd. (Company Registration Number: 200709952G) as its Singapore Representative and agent for service of process in Singapore. The information provided herein does not constitute financial advice, an offer or recommendation with respect to the Fund. Opinions, forecasts and estimates on the economy, financial markets or economic trends of the markets mentioned herein are not necessarily indicative of the future or likely performance of the Fund. The Fund may use financial derivative instruments for efficient portfolio management and/or hedging. ​

Investments in the Fund are not deposits in, guaranteed or insured by the Manager and involve risks. Past performance of the manager or sub-manager is not necessarily indicative of its future performance. The value of units in the Fund and any income accruing to them may fall or rise. Past performance of the Fund is not necessarily indicative of future performance. Investors should read the Singapore prospectus, and seek advice from a financial adviser before deciding whether to purchase units in the Fund. A copy of the Singapore prospectus and the product highlights sheet can be obtained from Manulife or its distributors. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is suitable for him. 

Distributions are not guaranteed. Investors should refer to the Singapore prospectus for the distribution policy of the Fund. The Directors of the Company shall have the absolute discretion to determine whether a distribution is to be made in respect of the Fund as well as the rate and frequency of distributions to be made. Distributions may be made out of (a) income, or (b) net capital gains, or (c) capital of the Fund, or (d) gross income while charging all or part of the fees and expenses to capital, or (e) any combination of  (a), (b) , (c) and/or (d). Past distribution yields and payments are not necessarily indicative of future distribution yields and payments. Any payment of distributions by the Fund is expected to result in an immediate decrease in the net asset value per share of the Fund.​

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.​

1. Asian Investment Grade Corporate Bonds = JPMorgan Asian Credit Investment Grade Corporate Index; Asian High Yield Corporate Bonds = JPMorgan Asian Credit Non-Investment Grade Corporate Index; Emerging Market Debt (local) = JPMorgan GBI-EM Broad Index; Euro Government Bonds = BofA Merrill Lynch Euro Government Index; US Treasuries = BofA Merrill Lynch US Treasury Index; Global Aggregate Bonds = Bloomberg Barclays Global-Aggregate Total Return Index; Global Corporate Bonds = BofA Merrill Lynch Global Corporate Index; Global High Yield = BofA Merrill Lynch Global High Yield Index; Global Equities = MSCI World Index; US Equities = S&P 500 Index; Asian Equities (ex-Japan) = MSCI AC Asia Pacific excluding Japan Index; Real Estate = Dow Jones Composite REIT Total Return Index; Money Markets (cash) = BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Average Index. Past performance is not indicative of future results.

2. Bloomberg, as of 30 April 2020. Among the eight major Asian currencies (Singapore dollar, Chinese renminbi, Indonesian rupiah, Indian rupee, South Korean won, Malaysian ringgit, Thai Baht, and Philippine peso), Singapore dollar has the second-lowest volatility (standard deviation) at 5.58% p.a. against US dollar over 20 years to April 2020.

3. Bloomberg, as of 30 April 2020. Among the eight major Asian currencies (Singapore dollar, Chinese renminbi, Indonesian rupiah, Indian rupee, South Korean won, Malaysian ringgit, Thai Baht, and Philippine peso), Singapore dollar was ranked second during the Global Financial Crisis (March 2008–March 2009) and fourth during the market sell-off due to COVID-19 (March 2020), with returns against US dollar of -10.6% and -2.07% respectively. Past performance is not an indication of future results.

4. Moody’s Investors service, S&P, and Fitch, as of 8 May 2020.