Hong Kong, March 9, 2020 – Manulife Investment Management announced the launch of the new Manulife Global Fund1 Enhanced Distribution retirement investment series - R share class2 , an innovative monthly dividend payout offering that can help investors in Hong Kong better manage their investments. The higher income offering by Manulife Investment Management’s R share class is an alternative retirement investment option, aimed at providing investors with a stable source of retirement income.
The new R share class has two distinct income-paying sources: the portfolio’s traditional monthly dividends, and an additional distribution yield of 2.5%3 that is systematically withdrawn from the portfolio’s realized capital gains and/or capital. (The distribution amount is not guaranteed. Distribution may be paid out of capital. Refer to Important Note 2)
The R share class is a higher-yielding investment offering that aims to address current and soon-to-be retirees’ demand for sustainable income, particularly in the current low interest rate environment. It could help optimize investors’ cash flows with potential income as well as from the portfolio’s capital gains. This stable, long-term dividend-paying investment product offers unique features that are suitable for those planning for retirement or looking for a boost in income.
R share class has four features to help investors manage their wealth with more flexibility:
Bruno Lee, Regional Head of Retail Wealth Distribution, Wealth and Asset Management, Asia, Manulife Investment Management, said, “We can expect the low interest rate environment to be prolonged as central banks around the world maintain loose monetary policies amid slowing economic growth and added impact from the coronavirus. As such, investors should look for investment products with relatively higher yields that could provide the stable income needed to cover some of the costs for a long and comfortable retirement. Such products are specifically designed to achieve diverse and sustainable yields and withstand market volatility pressures.”
The Enhanced Distribution retirement investment series includes “Manulife Global Multi-Asset Diversified Income Fund”, “Manulife Preferred Securities Income Fund” and “Manulife Asia Pacific REIT Fund”. The “Manulife Global Multi-Asset Diversified Income Fund” aims to generate income from a range of assets including equities that are relatively more defensive, emerging market debt, high yield bonds, and Asian fixed income securities, all of which could diversify income risk. The “Manulife Preferred Securities Income Fund” possesses the combined benefits of equities and bonds including capital appreciation and yield levels that are close to high yield bonds, coupled with lower default rate and volatility due to its high-quality issuers. The “Manulife Asia Pacific REIT Fund” mainly invests in REITs in Singapore, Hong Kong and Australia, aiming to offer stable dividends to investors from rental income during different market and industry cycles.
Bruno added, “With continued market uncertainty due to social and geopolitical events, investors should adopt a more cautious approach by selecting income-oriented investment strategies. Our Enhanced Distribution retirement investment series is an investment-led offering that combines different investment risk levels to give investors in various stages of life a flexible and adequate way of managing their finances.”
Manulife Investment Management is committed to bringing innovative wealth and investment solutions to investors in Hong Kong by incorporating their needs and desires into our products and services. The launch of the new R share class is in response to the changing global market environment and an enhancement to our existing range of long-term-oriented investment strategies. By offering a series of investment share classes and asset allocation strategies, we strive to equip investors of all ages with the tools they need to plan for retirement or prepare for the next chapter in life.
Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups and institutions. At the end of 2019, we had more than 35,000 employees, over 98,000 agents, and thousands of distribution partners, serving almost 30 million customers. As of December 31, 2019, we had C$1.2 trillion (HK$7.2 trillion) in assets under management and administration, and in the previous 12 months we made C$29.7 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 100 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.
Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than 150 years of financial stewardship to partner with clients across our institutional, retail, and retirement businesses globally. Our specialist approach to money management includes the highly differentiated strategies of our fixed-income, specialized equity, multi-asset solutions, and private markets teams—along with access to specialized, unaffiliated asset managers from around the world through our multimanager model.
Headquartered in Toronto, we operate as Manulife Investment Management throughout the world, with the exception of the United States, where the retail and retirement businesses operate as John Hancock Investment Management and John Hancock, respectively; and in Asia and Canada, where the retirement business operates as Manulife. Manulife Investment Management had CAD$879 billion (US$677 billion) in assets under management and administration as of December 31, 2019*. Not all offerings available in all jurisdictions. For additional information, please visit our website at manulifeinvestmentmgt.com.
* MFC financials. Global Wealth and Asset Management AUMA as of December 31, 2019, was CAD$879 billion and includes CAD$198 billion of assets managed on behalf of other segments and CAD$145 billion of assets under administration.
Manulife Investment Management
Phone: +852 9081 1976
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1. Applicable to part of the sub-funds only. Please refer to the offering document for details.
2. Distribution type of R share class is Enhanced Monthly Distributing (Unhedged).
3. Dividend composition: Distribution Type: Enhanced Monthly Distributing (Unhedged). The distribution applicable to R Classes comprises of (i) a distribution determined by taking into consideration the securities held by the portfolio of the relevant SubFund and the gross investment income that such securities are likely to generate over the coming year; and (ii) an additional distribution from realized capital gains and/or capital at a fixed rate of [2.5%] of NAV per share per annum based on the initial subscription price during the year of inception and the NAV per share on the first business day of each calendar year after that. A positive distribution yield does not imply a positive return.