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Important Notes:

  1. Manulife Global Fund – Asia Pacific REIT Fund (“Manulife Asia Pacific REIT Fund” or the “Fund”) invests primarily in equities and equity-related securities in the Asia Pacific ex-Japan region, which exposes investors to equity market risk as well as geographic concentration and currency risk.
  2. The Fund invests in real estate investment trusts (“REITs”), which may expose investors to sector concentration and real estate-related risks.
  3. The relevant distributing class of the Fund does not guarantee distribution of dividends, the frequency of distribution and the amount/rate of dividends. Dividends may be paid out of income, realised capital gains and/or out of capital of the Fund in respect of Inc share class(es). Dividends may be paid out of realised 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). Dividends paid out of capital of the Fund 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 Fund.
  4. The extensive use of FDIs does not form part of the investment strategy of the Fund, however the Investment Manager may from time-to-time use FDIs for the purposes of efficient portfolio management and/or hedging. The use of derivatives exposes the Fund to additional risks, including volatility risk, management risk, market risk, credit risk and liquidity risk.
  5. Investment involves risk. The Fund may expose its investors to capital loss. Investors should not make decisions based on this material alone and should read the offering document for details, including the risk factors, charges and features of the Fund and its share classes.
  6. Given RMB is currently not a freely convertible currency, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB. As offshore RMB (CNH) will be used for the valuation of RMB denominated Class(es), CNH rate may be at a premium or discount to the exchange rate for onshore RMB (CNY) and there may be significant bid and offer spreads and thus the value of the RMB denominated Class(es) will be subject to fluctuation. Any devaluation of RMB could adversely affect the value of investors’ investments in the RMB denominated Class(es) of the Fund.
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What are REITs?

REITs, or Real Estate Investment Trusts, are collective investment schemes that are listed as corporate stocks. REITs investors own the property indirectly through share units which they hold and regularly gain income from the property’s portfolio.

 

How do REITs work?

REITs have a simple business model:
Generating income by leasing out properties. The property is managed by a professional team which actively seeks to lift the value of the property and the rent to increase potential income.

 

How do REITs generate income

 

 

Different types of REITs

REITs aim to deliver a source of recurrent income to investors through focused investment in a portfolio of income-generating properties such as shopping malls, offices, hotels and service apartments.

 

REITs by sectors

Why Asia Pacific REITs?

Solid dividend income potential

Measured by FTSE Nareit index, Asia ex-Japan REITs have registered around 13.2%1 annualised return for the period from 2009 to end of 1Q 2020 with dividend income contributing more than 40%.

The average dividend yield of Asia ex-Japan REITs stands at around 6.7%1.

 

Fig 1. Yield comparison vs Equity/Government bond2

Professional management

REITs benefit from Asset Enhancement Initiatives, which can help to further increase property values and maintain sustainable rental income.

 

Active tenancy management can further increase occupancy rates.

 

Long-term development strategies, such as mergers and acquisitions, can further drive potential returns.

Manulife Asia Pacific REIT Fund

Aims to achieve return and income

REITs distribute stable dividends to investors from rental income, while real estate stocks further offer capital appreciation potential during different market and industry cycles.

 

For illustrative purpose only; and does not represent actual investment.

Aims to distribute dividends monthly

This Fund mainly invests in REITs in Singapore, Hong Kong and Australia. The dividend yields in these markets are relatively higher than other investment vehicles (see Fig 1); furthermore, given the relative maturity of these markets, they can provide investors with a relatively stable stream of income.

 

Dividend schedule

( The distribution amount is not guaranteed. Distribution may be paid out of capital. Refer to Important Note 3 )

Manulife’s investment expertise

80+ years

Investment experience property investments, and assets and property management

 

USD 20+ billion4

Assets under management in Asian Equity assets

 

170+

Professionals5 based in Asia

The Fund is authorised by the Securities and Futures Commission of Hong Kong (“SFC”). SFC’s authorisation of the fund is not made under the Code on Real Estate Investment Trust and does not imply official recommendation.

  1. Measured by FTSE EPRA Nareit Asia ex-Japan REITs 10% Capped USD index.
  2. Source: Bloomberg, as of 31 March 2020. REIT Yield: Australia REIT – S&P/ASP 200 A-REIT Index, Hong Kong REIT – Hang Seng REIT Index, Singapore REIT – FTSE Straits Times REIT Index. Equity Dividend Yield: Australia equity – S&P/ASX 200 Index, Hong Kong equity – Hang Seng Index, Singapore equity – Straits Times Index. For illustrative purposes only. Past performance is not an indication of future results.
  3. Source: Manulife Investment Management, as of 1 April 2020, refers only to Class AA (USD) MDIST(G). Annualised yield = [(1+distribution per unit/ex-dividend NAV) ^distribution frequency per annum]–1, the annualised dividend yield is calculated on the basis of the latest relevant dividend distribution and dividend reinvested, and may be higher or lower than the actual annual dividend yield. Please note that dividend is not guaranteed, and a positive dividend yield does not imply a positive return. Dividend yield increases sharply due to the significant drop in NAV. Please refer to http://www.manulifefunds.com.hk for the historical distribution yield records.
  4. Manulife Investment Management. Data as of 31 December 2019. Value of assets under management is rounded up to the nearest USD 1 billion.
  5. Data as of 31 December 2019. Some professionals may support additional asset classes.

 

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