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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 Fund intends to use financial derivative instruments (“FDIs”) for investment, efficient portfolio management and/or hedging purposes.  The use of FDIs 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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Fund flash: Manulife Asia Pacific REIT Fund

Increased industrial exposure:

  • Added Singapore and Australia industrial REITs last year, bringing industrial to the second largest sector in terms of exposure*.
  • 30% exposure to “new economy” industries like logistic warehousing and data centres.

Shifted from Hong Kong landlord holdings to Singapore retail:

  • To ride the potential recovery of the Singapore retail sector, particularly in neighborhood malls.
  • Exposure to Singapore: 59% of total holdings*.

Added to China property management companies:

  • Added selected China property management companies to the portfolio to capture visible and structural growth prospects.

Tapping into new and old economies

*Source: Manulife Investment Management, as of 31 December 2020. Information about asset allocation is historical and is not an indication of the future composition.

  • Key markets like Singapore, Hong Kong, and Australia should avoid national lockdowns, given the past experiences.
  • Vaccination campaign launched globally could restore confidence in consumer and corporate spending. 
  • Retail landlords likely to enjoy recovery in cashflows, given the low base in 2020 (from high rental reliefs); industrial REITs expect to remain stable, growth to be boosted from accretive acquisitions.
  • Pronounced market volatility in 1H2020 opened opportunities for bargain hunting; invested in quality REITs which we believe should rebound strongly as growth resumes in 2021.
  • Fund captures opportunities in the “new normal”; exposure to industrial REITs with high cashflows visibility, as well as selective recovery plays in retail and hospitality sectors.

Portfolio sector allocation

Source: Manulife Investment Management, as of 31 December 2020. Information about asset allocation is historical and is not an indication of the future composition.

  • AP REITs market increased slightly even there were some profit-taking after the rally in recent months. Singapore REITs market continued to outperform the region, as businesses welcomed phase 3 of the reopening late last year.
  • Singapore office REITs expect positive office rental reversions, as expiring leases are still lower than spot market rental rates.
  • Suburban malls continued to recover well; tenant sales in December 2020 back to around pre-COVID levels. 

Asia Pacific REITs performance

Sources: Bloomberg, as of 31 January 2021. Asia Pacific REITs are represented by FTSE EPRA Nareit Asia ex Japan Index (capped), Singapore REITs by FTSE Strait Times Real Estate Investment Trust Index, Hong Kong REITs by Hang Seng REIT Index and Australia REITs by S&P/ASX200 A-REIT Index. Performance is in local currency terms. Past performance is not a guarantee of future results.

  • Accommodative monetary policies are here to stay, given the fragile global economy.
  • AP REITs still offer more attractive yields, compared to broader equity markets and government bonds.
  • The sector should continue benefitting from global search for yields.

Yield comparison vs Equity/ Government bond

Sources: Bloomberg, as of 31 December 2020. REIT Yield: Asia ex-Japan REITs are represented by FTSE EPRA Nareit Asia ex-Japan REITs 10% Capped USD Index, Australia REITs by S&P/ASP 200 A-REIT Index, Hong Kong REITs by Hang Seng REIT Index, Singapore REITs by FTSE Straits Times REIT Index. Equity Dividend Yield: Australia equities are represented by S&P/ASX 200 Index, Hong Kong equities by Hang Seng Index, Singapore equities by Straits Times Index. For illustrative purposes only. The above yields do not represent the distribution yield of the Fund and are not an accurate reflection of the actual return that an investor will receive in all cases. A positive distribution yield does not imply a positive return. Past performance is not an indication of future results.

Unless otherwise stated, all information sources are from Manulife Investment Management, as of 30 November 2020. A widespread health crisis such as a global pandemic could cause substantial market volatility, exchange trading suspensions and closures, and affect fund performance. For example, the novel coronavirus disease (COVID-19) has resulted in significant disruptions to global business activity. The impact of a health crisis and other epidemics and pandemics that may arise in the future, could affect the global economy in ways that cannot necessarily be foreseen at the present time. A health crisis may exacerbate other pre-existing political, social and economic risks. Any such impact could adversely affect the fund’s performance, resulting in losses to your investment. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be significantly different than that shown here. Past performance is not indicative of future performance. Information about the asset allocation is historical and is not an indication of the future composition.

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