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Manulife Investment Management Launches New Enhanced Distribution Series

Innovative “R share class” provides higher yields and added flexibility to retirement planning

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the portfolio’s traditional monthly dividends, and an additional distribution yield of 2.5%3 that is systematically withdrawn from the portfolio’s realized capital gains and/or capital.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: 

  1. Stable dividend payout structure – The systematic withdrawal of capital generates an additional layer of predictable retirement income;
  2. Potentially higher investment returns – Long-term investment strategy helps to navigate the ever-changing market dynamics;
  3. Additional dividend payout – Aimed to generate a higher yield that will help to boost retirement cashflow;
  4. Versatile and flexible - The removal of the ‘accumulation’ period means a higher level of monthly distribution

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. 

About Enhanced Distribution retirement investment series

 

About Manulife

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.

About Manulife Investment Management

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.

Media Contacts:

Willa Lau
Manulife Investment Management
Phone: +852 9081 1976
Email: willa_ps_lau@manulifeam.com

Connie Chan
Hume Brophy Communications
Phone: +852 9626 1414
Email: connie.chan@humebrophy.com

 

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.

 

Important Notes︰

  1. Manulife Global Fund is an umbrella fund comprising a number of sub-funds investing in equity and/or fixed income securities, each of which has a different investment objective and risk profile and may involve equity market, geographical concentration, sovereign debt, liquidity, volatility, credit downgrade, interest rate and counterparty risks.
  2. Inc, MDIST (G) or R MDIST (G) share class(es) of the sub-funds do not guarantee distribution of dividends, the frequency of distribution and the amount/rate of dividends. Dividends may be paid out of income, realized capital gains and/or out of capital of certain sub-funds in respect of Inc share class(es). Dividends may be paid out of realized capital gains, capital and/or gross income while charging all or part of their fees and expenses to capital (i.e. payment of fees and expenses out of capital) in respect of MDIST (G) and R MDIST (G) share class(es). Distribution of R MDIST (G) share class(es) is higher than MDIST (G) share class(es) and supplemented by an additional distribution from realized capital gains and/or capital, where there are insufficient realized capital gains to pay the additional distribution, such shortfall shall be paid out of capital. Dividends paid out of capital of these sub-funds amounts to a return or withdrawal of part of the amount of an investor's original investment or from any capital gains attributable to that original investment and may result in an immediate decrease in the net asset value per share in respect of such class(es) of the sub-funds.
  3. Certain sub-funds invest in emerging economies or markets, where special risks, including liquidity, volatility, government policies, taxation, currency, currency repatriation, political and regulatory risks, may be substantially higher than the risks normally associated with more developed economies or markets.
  4. Certain sub-funds invest in securities of small and medium sized companies in the relevant markets. This can involve greater risk than is customarily associated with investments in larger and more established companies.
  5. Certain sub-funds concentrate their investments in a single country and/or a particular industry sector are subject to greater risks than diversified investments in several countries and/or regions and across sectors.
  6. Certain sub-funds may invest directly in certain China A shares via Stock Connect, which may involve in risk related to Investments via Stock Connect and Mainland China investment.
  7. Investment involves risk. The sub-funds may expose their investors to capital loss. Investors should not invest solely based on this material and should read the offering document for details including the risk factors, charges and features of the sub-funds and their share classes.
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