China Bond Strategies - (CNY Bond and China Total Return Bond) - Manulife Investment Management
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Second Quarter 2021
China Bond Strategies
(CNY Bond and China Total Return Bond)
Quarterly Market & Strategy Review
For a discussion of the risks associated with this strategy, please see the Investment Considerations page at the
end of the presentation.
MSTR.540338CNY Bond Strategy
For Institutional/Investment Professional Use Only. Not for distribution to the public. 2
MSTR. 540338CNY Bond Strategy
The Strategy Returned +3.01% in 2Q
Quarter’s Overview – CNY Bond Strategy
Market Highlights
• China’s 1Q21 GDP growth was marginally below expectations at 18.3% yoy, due to the favorable base effect, following 6.5% yoy
growth in 4Q20. The Caixin manufacturing Purchasing Managers’ index (PMI) remained stable and above 50 for the quarter,
showing expansionary activity, but slipped marginally to 51.3 in June from 52 in May.
• Monetary policy remained stable over the quarter with the PBOC leaving policy rates unchanged. The State Council met in early
July and issued a statement emphasising stable and effective monetary policy implementation and mentioned the possible use of
“RRR (Reserve Requirement Ratio) cuts when appropriate”. There has been a subsequent RRR cut of 0.50bps in early July
which took the market by surprise but is not a signal for broader monetary easing at this stage.
• The PBOC announced during the quarter an increase in the FX reserve requirement ratio for financial institutions from 5% to 7%
against the trend of the appreciating CNY since April. A PBOC statement reiterated their policy target of maintaining CNY stability
around a reasonable equilibrium under market forces.
• China bond yields declined marginally over the period with the 10-year CGB yield closing at 3.09% from 3.19% at the beginning of
the quarter. Chinese yuan (CNY) appreciated +1.48% to 6.46 against the USD over the quarter as UST yields declined and the
yield premium for China bond yields was maintained.
CNY Bond Portfolio
• Maintained o/w duration positioning as we believe yields are attractive for carry while the PBOC has turned slightly more dovish.
• Maintained 30% o/w to corporate bonds for carry opportunities. Added exposure to high quality, Tier 1 property developers.
Performance
• The Strategy returned +3.01% in 2Q (USD, gross of fees) versus +2.83% for its benchmark.
• Main relative contributor for the quarter was from overweight duration positioning as onshore CNY yields declined.
• Main relative detractor was security selection with exposure to a long-dated policy bank among the key detractors.
Performance is shown in USD, gross of fees. As of 30 June 2021.
Past performance is not indicative of future results.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.540338 3China Onshore Bond Market
CNY bond yields maintained their yield advantage against UST yields
China Onshore Bond Market Review
China Onshore Rates Credit Renminbi
• Onshore bond yields declined over the
quarter to 3.09% • Onshore SOE and higher quality corporate • CNY gained +1.48% to 6.4571
bonds benefitted from positive carry while
• UST yields declined to 1.47% and the selective names also saw positive returns against the USD but declined against
premium for CNY rates increased from from spread narrowing the CHF
over 1.4% to 1.6%
3.0%
3.5
2.47%
3.0 2.5% 2.30%
2.5 2.01%
2.0%
2.0
1.5 1.42%
1.5% 1.34% 1.28%
1.0
1.0%
0.5
0.0 0.5%
0.0%
CGBs Policy Banks Corporates
China 10Y CGB Yield
2Q21 return YTD return
US 10Y UST Yield
Source: Bloomberg, Index performance data shown in CNY terms. As of 30 June 2021.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.496778 4CNY Bond Strategy
Maintaining long duration positioning as liquidity expected to remain ample
Key Portfolio Changes
Interest Rates Credit Currencies
• Maintained overweight duration • Added exposure to Tier 1 investment • CNY to remain stable in current range for
positioning as yields are range-bound and now with risk of USD appreciating
grade Chinese property
short-end rates remain stable towards year-end.
• Nominal/Real interest rate advantage over • Credit spreads remain very stable for high • CNY to remain supported by positive
quality issuers in our investable universe
US rates persists inflows to onshore assets.
Duration (Years) Sector Breakdown (%) Currency Positioning (%)
6.6 6.5 100% 100%
6.4 13.3 13.1 13.2 12.9
6.4
6.4 6.3
80% 80%
6.2
60% 56.5 56.4 56.3 56.5 60%
6.0
5.8 5.8 100 100 100 100
5.8 5.7 5.7
40% 40%
5.6
20% 20%
5.4 30.3 30.3 30.3 30.3
5.2 0% 0%
Mar-21 Apr-21 May-21 Jun-21 Mar-21 Apr-21 May-21 Jun-21 Mar-21 Apr-21 May-21 Jun-21
Portfolio Cash Government CNY/CNH
Markit iBoxx ALBI China Onshore Bond Index Government-Related Corporate
As of 30 June 2021.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.496778 5CNY Bond Strategy
RRR cuts signal a more dovish tone
Risk Market Factors Investment Theme Positioning
▪ Potential for more dovish
monetary policy after recent More dovish tone but
50bps RRR cut. official rate cuts are
Interest not expected. ▪ Maintained long duration
Rates ▪ Expect China government bond 2021 supply expected positioning against benchmark.
yields (nominal and real) to to be lower with less
remain attractive relative to other special bond issuance.
markets.
▪ Overall defaults within SOE sector
▪ Yield pick-up from corporate
remain low.
bonds. Maintain 30% o/w
exposure to corporate bonds.
▪ Deleveraging theme can result in a
Continue to favour
more cautious environment overall
sectors and issuers ▪ Added exposure to high quality
Credit and may impact idiosyncratic
that have high Tier 1 IG-rated property names.
names.
strategic importance.
▪ Will look to increase exposure to
▪ Expect crowding out effect with
ESG-related bonds as the market
stronger companies gaining
develops further.
market share over weaker rivals.
Foreign inflows
▪ CNY gained +1.48% against the expected to be
USD over the quarter. ▪ The CNY remains range-bound
maintained after
Currency with potential risk of a stronger
▪ Foreign inflows expected to be confirmation of CGB
USD in 2H21.
above CNY1 trillion in 2021. inclusion in WGBI
index.
Source: Manulife Investment Management as of 30 June 2021
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.540338 6CNY Bond Strategy
The Strategy Returned +3.01% in 2Q 2021
Performance (%) 2Q
CNY Bond Composite +3.01
Markit iBoxx ALBI China Onshore Index +2.83
Excess return (Gross) +0.17
Performance Attribution vs. Benchmark (2Q) Main Relative Contributors Main Relative Detractors
20 ▪ Overweight duration against the ▪ Overweight exposure to
benchmark was the biggest corporate bonds was a positive
contributor over the quarter as contributor but this was offset
15 onshore CNY yields declined. by security selection which
detracted from performance.
Basis Points
10
18 ▪ Exposure to a long-dated policy
18
bank was the biggest detractor.
5
0 2
-2
-5
Excess Interest Credit Currencies
Return Rates
Source: Manulife Investment Management, Bloomberg PORT risk system, as of 30 June 2021. Performance is shown in USD, gross of fee
Returns greater than one year are annualized. Past performance is not indicative of future results. Performance shown of the strategy is gross of fees and does not include advisory
fees and other expenses an investor may incur, which when deducted will reduce returns. Changes in exchange rates may have an adverse effect.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.540338 7CNY Bond Composite
Investment Results as of 30 June 2021
Annualized Gross Returns (%) Cumulative Gross Returns^
14 170
12.56
12.07
12 160
10 150
Rebased to 100
8 140
6 5.62 130
4.87 4.69
4.56 4.49 4.35
4.27 4.10
3.71 3.71 120
4 3.28 3.40
3.012.83
2 110
0 100
Nov 10
Aug 11
May 12
Nov 13
Aug 14
May 15
Nov 16
Aug 17
May 18
Nov 19
Aug 20
May 21
Feb 13
Feb 16
Feb 19
3 Mths YTD 1 Year 3 Years 5 Years 7 Years 10 Years Since
(p.a.) (p.a.) (p.a.) (p.a.) Inception
(p.a., 1
Dec
Portfolio Benchmark* 2010) Portfolio Benchmark*
Returns greater than one year are annualized. Past performance is not indicative of future results. Performance shown of the strategy is gross of fees and does not include advisory fees
and other expenses an investor may incur, which when deducted will reduce returns. Changes in exchange rates may have an adverse effect.
As of 30 June 2021. Performance is shown in USD, gross of fees.
* Benchmark: Markit iBoxx ALBI China Onshore Bond Index.
^ Cumulative gross return presented since inception 1 December 2010.
For Institutional/Investment Professional Use Only. Not for distribution to the public. 8
MSTR. 524495Why Manulife IM CNY Bond Strategy?
Why China Why This
Why Manulife IM?
Bonds? Strategy?
• Fast growing asset • Exposure to high • One of the world’s
class, potential quality onshore largest Asia Fixed
diversification China government Income houses*
benefits and credit bonds and established
track record
• Opening of China’s • Active approach
onshore bond targeting consistent • Established
market to foreign risk-adjusted excess Onshore China
investors (currently returns Bond Strategy’sChina Total Return Bond Strategy
For Institutional/Investment Professional Use Only. Not for distribution to the public. 10
MSTR. 540338China Total Return Bond Strategy
The Strategy Returned +1.31% in 2Q
Quarter’s Overview – China Total Return Bond Strategy
Market Highlights
• China’s 1Q21 GDP growth was marginally below expectations at 18.3% yoy, due to the favorable base effect, following 6.5% yoy
growth in 4Q20. The Caixin manufacturing Purchasing Managers’ index (PMI) remained stable and above 50 for the quarter,
showing expansionary activity, but slipped marginally to 51.3 in June from 52 in May.
• Monetary policy remained stable over the quarter with the PBOC leaving policy rates unchanged. The State Council met in early
July and issued a statement emphasising stable and effective monetary policy implementation and mentioned the possible use of
“RRR (Reserve Requirement Ratio) cuts when appropriate”. There has been a subsequent RRR cut of 0.50bps in early July
which took the market by surprise but is not a signal for broader monetary easing at this stage.
• China USD credit returns have been mixed with China USD credit underperforming on weaker sentiment and investor concerns
around specific names in the Asset Management Company (AMC) and Property sectors. Weaker sentiment led to China
underperforming other regions within Asian credit.
• Chinese yuan (CNY) appreciated +1.48% to 6.46 against the USD over the quarter as UST yields declined and the yield premium
for China bond yields was maintained.
China Total Return Bond Portfolio
• Interest rates: maintain duration around 4 years. UST yields expected to be range-bound for now.
• Credit: reduced exposure to China USD HY to 36%. Returns primarily driven by carry.
• Currency: lifted exposure to CNY onshore bonds to 13% due to relatively stable CNY outlook.
Performance
• The Strategy returned +1.31% in 2Q (USD, gross of fees). The reference benchmark* returned 2.75% over the same period.
• Main contributors to absolute performance was from duration positioning as US yields declined. Income from credit exposure was
a positive contributor while the portfolio also benefitted from its exposure to CNY which gained against the USD.
• No detractors to absolute performance over the quarter.
Performance is shown in USD, gross of fees. As of 30 June 2021.
* Reference benchmark: FTSE Chinese (Onshore CNY) Broad Bond Index. This benchmark is used as a reference of the onshore China bond universe only
Past performance is not indicative of future results.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.540338 11China USD Bond Market
Deterioration in sentiment results in IG outperforming HY
China USD Bonds
• China IG credit outperformed China HY credit in 2Q21 due to deteriorating sentiment among credit investors that has been driven by specific
events related to China Asset Management Companies (AMCs) within the SOE sector; and tighter regulatory pressure applied to the Chinese
property sector.
• Consequently, there has been some flight to quality with IG names preferred over HY and stronger companies preferred and China USD credit
underperforming Asia ex-China over the quarter.
China USD Credit – Returns China USD Credit - Spreads
400
0.4%
380
0.18%
0.2% 360
Spread (basis points)
0.0% 340
320
-0.2%
300
-0.4% -0.32% 280
260
-0.6%
240
-0.8% 220
-0.87% -0.83% 200
Jun-20
Jul-20
Jan-21
Jun-21
Mar-21
Nov-20
Dec-20
Feb-21
Aug-20
Sep-20
Oct-20
Apr-21
May-21
-1.0%
China IG China HY
1Q21 return 2Q21 return
China Credit Spread Asia Credit Spread
Source: Bloomberg, JP Morgan Asia Credit Index. Index performance data shown in US Dollars, as of 30 June 2021.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.496778 12China Total Return Bond Strategy
Reduced high yield exposure on more volatile environment
Key Portfolio Changes
Interest Rates and Currency Credit
• Maintained overall duration around 4 • Slight defensive bias on China USD credit given weaker sentiment.
years.
• Reduced exposure to China USD high yield from 41% to 36%.
• Further increased exposure in CNY for
diversification and stability; currency split • Switched into new issue opportunities with good pricing. Look to selectively add in the China
is 87% USD and 13% in CNY. property space if valuations improve.
Duration (Years) Rating Breakdown (%) Sector Positioning (%)
5 100% 1.4 0.2 2.5 2.8
4.0 4.1 4.1 4.1 100%
5.0 4.9 5.8 5.5 9.2 9.2 9.0
4 11.7
5.5 4.2 5.1
3 80% 5.9
2 80% 33.0
35.9 36.2 33.0
1
60% 47.4 48.9 45.2
0 43.8
Mar-21 Apr-21 May-21 Jun-21 60%
Currency (%) 40%
100% 6.6 8.9 11.1 12.5
40%
80%
20% 36.5 37.5 38.2 35.7
59.1 58.8 61.2 61.5
60%
93.4 91.0 88.8 87.1 20%
40% 0%
Mar-21 Apr-21 May-21 Jun-21
20%
Government-Related Industrials
0% 0%
Mar-21 Apr-21 May-21 Jun-21 Mar-21 Apr-21 May-21 Jun-21 Utilities Financial Institutions
USD CNY IG HY NR Cash and Others
As of 30 June 2021.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.496778 13China Total Return Bond Strategy
Investors more cautious but China USD credit can be attractive for income
Risk Market Factors Investment Theme Positioning
▪ Maintain stable outlook for UST
yields for now.
Stable US rates
Interest ▪ Potential for more dovish ▪ Maintain USD duration ~4 years in
supportive for China
Rates monetary policy for China onshore portfolio.
USD credit
bonds after recent 50bps RRR
cut.
▪ Returns to be primarily driven by
▪ Deleveraging theme can result in a carry. Seeing better value in HY
more cautious environment overall Positive on China USD names vs IG.
and may impact idiosyncratic credit for income
names. ▪ 36% exposure to high yield within
Credit China USD exposure at end of
Continue to be
▪ Expect crowding out effect with selective in credit 2Q21.
stronger companies gaining selection
market share over weaker rivals. ▪ Will look to increase HY exposure
at more attractive entry points.
▪ Increased exposure to CNY from
▪ CNY gained +1.48% against the Stable onshore rates 7% to 13% over the second
USD over the quarter. and CNY outlook quarter.
Currency makes exposure to
▪ Foreign inflows expected to be onshore securities ▪ Invested in policy banks and liquid
above CNY1 trillion in 2021 attractive commercial bank bonds for
onshore exposure.
Source: Manulife Investment Management as of 30 June 2021
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.540338 14China Total Return Bond Strategy
The Strategy Returned +1.31% In 2Q 2021
Performance (%) 2Q
China Total Return Bond Strategy (Gross) +1.31
FTSE Chinese (Onshore CNY) Broad Bond Index
+2.75
(Reference Benchmark*)
Excess Return (Gross) -1.45
Contribution to Return (2Q) Main Contributors Main Detractors
▪ Duration positioning was the ▪ There were no significant
140 biggest contributor as UST yields detractors.
declined over the period.
120 ▪ Exposure to corporate bonds
contributed to returns with returns
100 from income offsetting wider
credit spreads.
Basis Points
80 ▪ Exposure to CNY also
contributed positively as CNY
131 gained against the USD over the
60
period.
40
72
20 45
14
0
Total Interest Rates Credit Currencies
Return
Source: Manulife Investment Management, Bloomberg PORT risk system, as of 30 June 2021. Performance is shown in USD, gross of fees.
* Reference benchmark: FTSE Chinese (Onshore CNY) Broad Bond Index. This benchmark is used as a reference of the onshore China bond universe only.
Returns greater than one year are annualized. Past performance is not indicative of future results. Performance shown of the strategy is gross of fees and does not include advisory
fees and other expenses an investor may incur, which when deducted will reduce returns. Changes in exchange rates may have an adverse effect.
For Institutional/Investment Professional Use Only. Not for distribution to the public. MSTR.496778 15China Total Return Bond Composite
Investment Results as of 30 June 2021
Annualized Gross Returns (%) Cumulative Gross Returns^
14
125
12.33
12
120
10
8.35 115
8
7.11
110
6 5.22
105
4 3.42
2.75
2 1.31 100
0.64
0 95
3 Mths YTD 1 Year Since Inception
(p.a., 1 Oct 2018)
Portfolio Reference benchmark*
Portfolio Reference Benchmark*
Returns greater than one year are annualized. Past performance is not indicative of future results. Performance shown of the strategy is gross of fees and does not include advisory fees
and other expenses an investor may incur, which when deducted will reduce returns. Changes in exchange rates may have an adverse effect.
As of 30 June 2021. Performance is shown in USD, gross of fees.
* Reference benchmark: FTSE Chinese (Onshore CNY) Broad Bond Index. This benchmark is used as a reference of the onshore China bond universe only.
^ Cumulative gross return presented since inception 1 October 2018.
For Institutional/Investment Professional Use Only. Not for distribution to the public. 16
MSTR. 524495Why Manulife IM China Total Return Bond Strategy?
Why China Why This
Why Manulife IM?
Bonds? Strategy?
▪ Fast growing asset ▪ Flexible portfolio ▪ One of the world’s
class, potential dynamically allocating largest Asia Fixed
diversification benefits across the China Fixed Income houses* and
Income universe established track
▪ Opening of China’s (onshore & offshore) to record
onshore bond market maximize total returns
to foreign investors and control risk ▪ Established Onshore
(currentlyManulife Investment Management GIPS® Report
CNY Bond Composite
Creation Date: January 1, 2018 Inception Date: December 1, 2010 Reporting Currency: USD
Schedule of Calendar Year Returns and Assets
Number of Total Assets Firm Assets
Gross of Fees Net of Fees Benchmark Composite 3-Yr Benchmark 3-Yr Portfolios End Composite End of Period End of Period
Year End Return (%) Return (%) Return (%) Std. Dev. (%) Std. Dev. (%) of Period Dispersion (%) (Millions) (Millions)
2020 9.62 9.01 9.39 5.33 5.43Manulife Investment Management GIPS® Report
China Total Return Bond Composite
Creation Date: October 1, 2018 Inception Date: October 1, 2018 Reporting Currency: USD
Schedule of Calendar Year Returns and Assets
Number of Total Assets Firm Assets
Gross of Fees Net of Fees Benchmark Composite 3-Yr Benchmark 3-Yr Portfolios End Composite End of Period End of Period
Year End Return (%) Return (%) Return (%) Std. Dev. (%) Std. Dev. (%) of Period Dispersion (%) (Millions) (Millions)
2020 7.96 7.31 9.65 N/A N/ANotice to Investors
BAHRAIN
The making available of this document is not intended to constitute, and should not be construed as amounting to, the conduct of a regulated investment service (as defined in volume 4 of the Rulebook issued by the
Central Bank of Bahrain) within or from the Kingdom of Bahrain. All services described in this document are to be performed outside of Bahrain. This document has not been filed with or reviewed by the Central Bank of
Bahrain, the Bahrain Bourse or the Ministry of Industry and Commerce of the Kingdom of Bahrain and accordingly those institutions take no responsibility for the accuracy of the statements and information contained in this
document, nor shall they have any liability to any person for any loss or damage resulting from reliance on any statements or information contained herein.
KUWAIT
These confidential materials are not for general circulation to the public in Kuwait. Interests in any investment opportunities detailed are for information purposes only and have not been licensed for offering in Kuwait by the
Capital Markets Authority, the Kuwait Central Bank or any other relevant Kuwaiti governmental agency. The offering of interests in any funds in Kuwait on the basis of a private placement or public offering is, therefore,
restricted in accordance with Law No. 7 of 2010 and the bylaws thereto (as amended). No private or public offering of any investment opportunities detailed is being made in Kuwait, and no agreement relating to the
entering into of any related agreement will be concluded in Kuwait. No marketing or solicitation or inducement activities are being used to offer or market interests in any funds in Kuwait.
OMAN
The information contained in this document neither constitutes a public offer of securities in the Sultanate of Oman as contemplated by the Commercial Companies Law of Oman (Sultani Decree 4/74) or the Capital Market
Law of Oman (Sultani Decree 80/98), nor does it constitute an offer to sell, or the solicitation of any offer to buy Non-Omani securities in the Sultanate of Oman as contemplated by Article 139 of the Executive Regulations
to the Capital Market Law (issued vide CMA Decision 1/2009). Additionally, this document is not intended to lead to the conclusion of any contract of whatsoever nature within the territory of the Sultanate of Oman. The
Investor represents that he/she is a sophisticated investor (as described in Article 139 of the Executive Regulations of the Capital Market Law) and has such experience in business and financial matters that he/ she is
capable of evaluating the merits and risks of an investment in securities. The investor acknowledges that an investment in securities is speculative and involves a high degree of risk.
QATAR
This document is provided on an exclusive basis to the specifically intended recipient thereof, upon that person's request and initiative, and for the recipient's personal use only.
Nothing in this document constitutes, is intended to constitute, shall be treated as constituting or shall be deemed to constitute, any offer or sale of securities in the State of Qatar or in the Qatar Financial Centre or the
inward marketing of securities or an attempt to do business, as a bank, an investment company or otherwise in the State of Qatar or in the Qatar Financial Centre other than in compliance with any laws applicable in the
State of Qatar or in the Qatar Financial Centre governing the issue, offering and sale of securities. This document and the underlying instruments have not been approved, registered or licensed by the Qatar Central Bank,
the Qatar Financial Centres Regulatory Authority, the Qatar Financial Markets Authority or any other regulator in the State of Qatar.
Recourse against Manulife Asset Management and those involved with it, may be limited or difficult and may have to be pursued in a jurisdiction outside Qatar and the Qatar Financial Centre.
This document and any related documents have not been reviewed or approved by the Qatar Financial Centre's Regulatory Authority or the Qatar Central Bank. Any distribution of this document by the recipient to third
parties in Qatar or the Qatar Financial Centre beyond the terms hereof is not authorised and shall be the liability of such recipient.
THE KINGDOM OF SAUDI ARABIA (THE "KINGDOM")
This document is not for general circulation to the public in the Kingdom and may not be distributed except to such persons as would be permitted under the Offers of Securities Regulations issued by the Capital Market
Authority. Interests in any investment opportunities detailed are for information purposes only and have not been licensed for offering in the Kingdom by the Capital Markets Authority or any other relevant agency and the
Capital Market Authority does not make any representation as to the accuracy or completeness of this document, and expressly disclaims any liability whatsoever for any loss arising from, or incurred in reliance upon, any
part of this document. All persons receiving this document should conduct their own due diligence in the accuracy of the information relating to the investment opportunities detailed herein. No private or public offering of
any investment opportunities detailed are being made in the Kingdom by virtue of this document, and no agreement relating to the entering into of any related agreement will be concluded in the Kingdom. No marketing or
solicitation or inducement activities are being used to offer or market interests in any funds in the Kingdom. If you do not understand the contents of this document you should consult an authorised financial advisor.
UNITED ARAB EMIRATES
This presentation has not been approved or licensed by the UAE Central Bank, the UAE Securities and Commodities Authority (SCA), the Dubai Financial Services Authority (DFSA) or any other relevant licensing
authorities in the UAE, and does not constitute a public offer of securities in the UAE in accordance with the commercial companies law, Federal Law No. 8 of 1984 (as amended), SCA Resolution No.(37) of 2012 (as
amended) or otherwise.
This presentation is strictly private and confidential and is being issued to a limited number of institutional and individual investors who qualify as sophisticated investors and must not be provided to any person other than
the original recipient, and may not be reproduced or used for any other purpose.
For Institutional/Investment Professional Use Only. Not for distribution to the public. 20Investment Considerations
A widespread health crisis such as a global pandemic the ending dollar value would be $246,355. Unless interest in the referenced company.
could cause substantial market volatility, exchange- otherwise noted, returns greater than 1 year are
No investment strategy or risk management technique
trading suspensions and closures, and affect portfolio annualized; calendar year returns for each one year
can guarantee returns or eliminate risk in any market
performance. For example, the novel coronavirus period end in December. Discrepancies may occur
environment.
disease (COVID-19) has resulted in significant due to rounding. Past performance does not
disruptions to global business activity. The impact of a guarantee future results. Diversification or asset allocation does not guarantee
health crisis and other epidemics and pandemics that a profit or protect against the risk of a loss in any
Performance information shown is generally for
may arise in the future, could affect the global market. The indices referenced herein are broad-
discretionary strategies/solutions and managed by a
economy in ways that cannot necessarily be foreseen based securities market indices and used for
Manulife entity which is GIPS compliant and falls
at the present time. A health crisis may exacerbate illustrative purposes only. The indices cited are widely
under the definition of a corresponding Manulife GIPS
other pre-existing political, social and economic risks. accepted benchmarks for investment performance
firm. Some investment strategies/solutions may not
Any such impact could adversely affect the portfolio’s within their relevant regions, sectors or asset classes,
be included in a GIPS compliant firm under certain
performance, resulting in losses to your investment. and represent non-managed investment portfolios.
circumstances, such as SMA/UMA business in
Any performance information shown is the investment Canada, If derivatives are employed, note that investing in
strategy composite gross of fees, including advisory derivative instruments involves risks different from, or
Any characteristics, guidelines, constraints, or other
and investment management fees and other expenses possibly greater than, the risks associated with
information provided for this material was selected by
an investor would incur, but net of transaction costs, investing directly in securities and other traditional
the firm as representative of the investment strategy
unless otherwise noted; deduction of such expenses investments and, in a down market, could become
and is provided for illustrative purpose only, may
would reduce returns. Net performance results reflect harder to value or sell at a fair price.
change at any time, and may differ for a specific
the application of the highest incremental rate of the
account. Each client account is individually managed; Information about SFDR
standard investment advisory or management fee
actual holdings will vary for each client and there is no
schedule to gross performance results, unless Unless otherwise noted, any references in this
guarantee that a particular client’s account will have
otherwise indicated. Changes in exchange rates may presentation to ESG or sustainability reflect the
the same characteristics as described herein. Any
have an adverse effect. Actual fees may vary general approach of Manulife Investment
information about the holdings, asset allocation, or
depending on, among other things, the applicable fee Management to integrating sustainability risk
sector diversification is historical and is not an
schedule, portfolio size and/or investment considerations into our investment decision-making
indication of future performance or any future portfolio
management agreement. For example, if $100,000 processes. Further details on Manulife Investment
composition, which will vary. Portfolio holdings are
were invested and experienced a 10% annual return Management’s general approach to sustainability are
representative of the strategy, are subject to change
compounded monthly for 10 years, its ending value, available at
at any time, are not a recommendation to buy or sell a
without giving effect to the deduction of advisory or www.manulifeim.com/institutional/global/en/sustainabil
security, and do not represent all of the securities
investment management fees, would be $270,704 ity
purchased, sold or recommended for the portfolio. It
with an annualized compounded return of 10.47%. If The source for all information shown is Manulife
should not be assumed that an investment in these
an advisory or investment management fee of 0.95% Investment Management, unless otherwise noted.
securities was or will be profitable. Top ten holdings
of the average market value of the account were
information combines share listings from the same
deducted monthly for the 10-year period, the
issuer, and related depositary receipts, into a singular
annualized compounded return would be 9.43% and
holding to accurately present aggregate economic
For Institutional/Investment Professional Use Only. Not for distribution to the public. 21
MSTR. 540338Important Information
© 2021 Manulife Investment Management. All rights reserved. Management (M) Berhad 200801033087 (834424-U) Philippines: management discipline or other expectations, and is only current
Manulife, Manulife Investment Management, Stylized M Design, Manulife Investment Management and Trust Corporation. Singapore: as of the date indicated. The information in this material including
and Manulife Investment Management & Stylized M Design are Manulife Investment Management (Singapore) Pte. Ltd. (Company statements concerning financial market trends, are based on
Registration No. 200709952G) South Korea: Manulife Investment
trademarks of The Manufacturers Life Insurance Company and current market conditions, which will fluctuate and may be
Management (Hong Kong) Limited. Switzerland: Manulife IM
are used by it, and by its affiliates under license. (Switzerland) LLC. Taiwan: Manulife Investment Management superseded by subsequent market events or for other reasons.
(Taiwan) Co. Ltd. United Kingdom: Manulife Investment This material was prepared solely for informational purposes and
This confidential document is for the exclusive use of the
Management (Europe) Ltd. which is authorised and regulated by the does not constitute, and is not intended to constitute, a
intended institutional investors or their agents and may not be
Financial Conduct Authority United States: John Hancock recommendation, professional advice, an offer, solicitation or an
transmitted, reproduced or used in whole or in part for any other Investment Management LLC, Manulife Investment Management invitation by or on behalf of Manulife Investment Management or
purpose, nor may it be disclosed or made available, directly or (US) LLC, Manulife Investment Management Private Markets (US) its affiliates to any person to buy or sell any security or to adopt
indirectly, in whole or in part, to any other person without our LLC and Hancock Natural Resource Group, Inc. Vietnam: Manulife any investment strategy, and shall not form the basis of, nor may
prior written consent. Investment Fund Management (Vietnam) Company Limited.
it accompany nor form part of, any right or contract to buy or sell
About Manulife Investment Management No Manulife entity makes any representation that the contents of any security or to adopt any investment strategy. Nothing in this
this presentation are appropriate for use in all locations, or that material constitutes investment, legal, accounting, tax or other
Manulife Investment Management is the global wealth and asset advice, or a representation that any investment or strategy is
the transactions, securities, products, instruments or services
management segment of Manulife Financial Corporation. We suitable or appropriate to your individual circumstances, or
discussed in this presentation are available or appropriate for
draw on more than a century of financial stewardship to partner otherwise constitutes a personal recommendation to you. Neither
sale or use in all jurisdictions or countries, or by all investors or
with clients across our institutional, retail, and retirement Manulife Investment Management nor its affiliates provide legal
counterparties. All recipients of this presentation are responsible
businesses globally. Our specialist approach to money or tax advice, and you are encouraged to consult your own
for compliance with applicable laws and regulations.
management includes the highly differentiated strategies of our lawyer, accountant, or other advisor before making any financial
fixed-income, specialized equity, multi-asset solutions, and This material is intended for the exclusive use of recipients in decision. Prospective investors should take appropriate
private markets teams—along with access to specialized, jurisdictions who are allowed to receive the material under their professional advice before making any investment decision. In all
unaffiliated asset managers from around the world through our applicable law. The opinions expressed are those of the cases where historical performance is presented, note that past
multimanager model. author(s) and are subject to change without notice. Our performance does not guarantee future results and you should
investment teams may hold different views and make different not rely on it as the basis for making an investment decision.
This material has not been reviewed by, is not registered with
investment decisions. These opinions may not necessarily reflect
any securities or other regulatory authority, and may, where
the views of Manulife Investment Management or its affiliates.
appropriate, be distributed by the following Manulife entities in
There can be no assurance that actual outcomes will match the
their respective jurisdictions. Additional information about
assumptions or that actual returns will match any expected
Manulife Investment Management may be found at
returns. The information and/or analysis contained in this
manulifeim.com/institutional
material has been compiled or arrived at from sources believed
Australia: Hancock Natural Resource Group Australasia Pty to be reliable, but Manulife Investment Management does not
Limited., Manulife Investment Management (Hong Kong) Limited. make any representation as to their accuracy, correctness,
Brazil: Hancock Asset Management Brasil Ltda. Canada: Manulife usefulness or completeness and does not accept liability for any
Investment Management Limited, Manulife Investment Management loss arising from the use of the information and/or analysis
Distributors Inc., Manulife Investment Management (North America)
contained here. Neither Manulife Investment Management or its
Limited, Manulife Investment Management Private Markets (Canada)
Corp. China: Manulife Overseas Investment Fund Management affiliates, nor any of their directors, officers or employees shall
(Shanghai) Limited Company. European Economic Area: Manulife assume any liability or responsibility for any direct or indirect loss
Investment Management (Ireland) Ltd. which is authorised and or damage or any other consequence of any person acting or not
regulated by the Central Bank of Ireland Hong Kong: Manulife acting in reliance on the information contained here
Investment Management (Hong Kong) Limited. Indonesia: PT
Manulife Aset Manajemen Indonesia. Japan: Manulife Investment The information in this material may contain projections or other
Management (Japan) Limited. Malaysia: Manulife Investment forward-looking statements regarding future events, targets,
For Institutional/Investment Professional Use Only. Not for distribution to the public. 22
MSTR. 540338Important Information (continued)
The distribution of the information contained in this Futures Ordinance and the Securities and Futures this material is for information purpose only and does not
presentation may be restricted by law and persons who (Professional Investor) Rules, in Hong Kong only. It is not constitute an offer, a solicitation or a recommendation to
access it are required to comply with any such restrictions. intended for and should not be distributed to, or relied upon, contract a financial instrument or a financial service as
The contents of this presentation are not intended for by members of the public or retail investors. defined under FinSA. This material does not constitute an
distribution to, or use by, any person or entity in any implicit or explicit investment advice. The information
Malaysia: This material was prepared solely for
jurisdiction or country in which such distribution or use would provided herein is general in nature and does not constitute
informational purposes and is not an offer or solicitation by
be contrary to any applicable laws or regulations. By an advertisement of financial products in Switzerland
anyone in any jurisdictions or to any person to whom it is
accepting this material you confirm that you are aware of the pursuant to FinSA and its implementing ordinance.
unlawful to make such an offer or solicitation.
laws in your own jurisdiction relating to the provision and
European Economic Area and United Kingdom: The data
sale of the funds, portfolios or other investments discussed Singapore: This material is intended for Accredited
and information presented is directed solely at persons who
in this presentation and you warrant and represent that you Investors and Institutional Investors as defined in the
are Professional Investors in accordance with the Markets in
will not pass on or use the information contained in this Securities and Futures Act.
Financial Instruments Directive (2004/39/EC) as transposed
presentation in a manner that could constitute a breach of
South Korea: This material is intended for Qualified into the relevant jurisdiction. Further, the information and
such laws by any Manulife entity or any other person.
Professional Investors under the Financial Investment data presented does not constitute, and is not intended to
Australia: Manulife Investment Management (Hong Kong) Services and Capital Market Act ("FSCMA"). Manulife constitute, "marketing" as defined in the Alternative
Limited (Manulife IM (HK)) is exempt from the requirement to Investment Management does not make any representation Investment Fund Managers Directive.
hold an Australian financial services license under the with respect to the eligibility of any recipient of these
United States: Manulife Investment Management (US) LLC
Corporations Act in respect to the financial services being materials to acquire any interest in any security under the
(Manulife IM US) and Manulife Investment Management
offered in this material. Manulife IM (HK) is regulated by the laws of Korea, including, without limitation, the Foreign
(North America) Limited (Manulife IM NA) are indirect wholly
Securities and Futures Commission of Hong Kong ("SFC") Exchange Transaction Act and Regulations thereunder. An
owned subsidiaries of Manulife. John Hancock Investment
under Hong Kong laws, which differ from Australian laws. interest may not be offered, sold or delivered directly or
Management LLC and Manulife Investment Management
This presentation is directed at wholesale investors only. indirectly, or offered, sold or delivered to any person for re-
(US) LLC are affiliated SEC-registered investment advisors
offering or resale, directly or indirectly, in Korea or to any
China: No invitation to offer, or offer for, or sale of any using the brand name John Hancock Investment
resident of Korea, except in compliance with the FSCMA and
security will be made to the public in China (which, for the Management. This material is not intended to be, nor shall it
any other applicable laws and regulations. The term
purposes of this paragraph, does not include the Hong Kong be interpreted or construed as, a recommendation or
“resident of Korea” means any natural person having his
or Macau Special Administrative Regions or Taiwan) or by providing advice, impartial or otherwise.
place of domicile or residence in Korea, or any corporation
any means that would be deemed public under the laws of
or other entity organized under the laws of Korea or having
China. The offering document of the subject fund(s) has not
its main office in Korea.
been submitted to or approved by the China Securities
Regulatory Commission or other relevant governmental Switzerland: This material is intended for Professional
authorities in China. Securities may only be offered or sold to Clients, including Institutional Clients, as defined in the
Chinese investors that are authorized to buy and sell Federal Financial Services Act ("FinSA") and its
securities denominated in foreign exchange. Prospective implementing ordinance, at the exclusion of Professional
investors resident in China are responsible for obtaining all Clients with an opting-out pursuant to Art. 5 (1) FinSA
relevant approvals from the Chinese government authorities, ("Opting-Out Clients"), and/or Qualified Investors pursuant to
including but not limited to the State Administration of the Federal Collective Investment Schemes Act ("CISA") and
Foreign Exchange, before investing. its implementing ordinances, at the exclusion of Opting-Out
Clients and Managed/Advisory Retail Clients pursuant to Art.
Hong Kong: This material is provided to Professional
10 (3ter) CISA where relevant. The information provided in
Investors, as defined in the Hong Kong Securities and
For Institutional/Investment Professional Use Only. Not for distribution to the public. 23
MSTR. 540338You can also read
