China Hong Kong Opportunities Strategy - Quarterly Market and Strategy Review (formerly known as Hong Kong Opportunities strategy)* - Manulife ...

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China Hong Kong Opportunities Strategy - Quarterly Market and Strategy Review (formerly known as Hong Kong Opportunities strategy)* - Manulife ...
Third Quarter 2020

China Hong Kong
Opportunities Strategy
Quarterly Market and Strategy Review
(formerly known as Hong Kong Opportunities strategy)*

*To better align with the manager's strategy, the strategy name was changed effective July 1, 2020.
For a discussion of the risks associated with this strategy, please see the Investment Considerations page at the
end of the presentation.
China Hong Kong Opportunities Strategy - Quarterly Market and Strategy Review (formerly known as Hong Kong Opportunities strategy)* - Manulife ...
3Q20: Broad based rally continued to be driven by growth sectors

                                                                                          Market Review
• Chinese equities moved higher in the quarter on the back of                                                     • A broad-based rally continued in Q3 with healthcare,
  strong economic data despite swings in geopolitical tensions.                                                     technology and communication leading the gains. Consensus
                                                                                                                    earnings growth for Chinese equities in 2021 has been
• Fundamentally, macroeconomic data continued to point to a
                                                                                                                    revised upward from 20.7% to 21.2%, driven by cyclical
  healthy recovery. Caixin manufacturing Purchasing Managers’
                                                                                                                    sectors especially materials and renewable energy.
  Index expanded for all three months in the quarter, while retail
  sales posted positive year-on-year growth for the first time in                                                  Onshore-wise, favorable reforms and measures in China A-
  August and exports rebounded strongly in July and August. The                                                     shares were released to streamline refinancing in Shanghai’s
  result season was also better-than-expected.                                                                      STAR Board1 and accelerate IPOs in Shenzhen’s ChiNext2.
• Investors are becoming more confident about China’s recovery                                                    • Chinese companies going IPOs in Hong Kong or domestic A-
  shown in stronger RMB and higher 10-year China bond yield                                                         shares market continued to be well-bid and performing well
  despite removal of excessive stimulus in May.                                                                     despite local monetary easing measures had already
                                                                                                                    gradually phased out in the quarter.

                         Market Performance – Q3 2020 (%)                                                                                               Sector Performance – Q3 2020 (%)
                                                                             Strategy’s benchmark MSCI
                                                                           Zhong Hua is 85% MSCI China                     31.1
                                                                              & 15% MSCI Hong Kong
                                                                        15.7
                                                                                                                                            17.5                                                                    MSCI Zhong Hua 10.8%
                                                                                    12.6
                                                                                                                                                         12.5               11.9
   8.9                                            9.7        9.6                                                                                                                        6.4
              8.0                                                                                                                                                                                     4.6            2.7
                                                                                                                                                                                                                                     0.0
                          5.0
                                                                                                                                                                                                                                                  -0.9
                                                                                                  1.6                                                                                                                                                           -2.9        -4.5
                                      0.1
                                                                                                                            Consumer Disc

                                                                                                                                                                                                                                     Financials
                                                                                                                                                                            Info Tech

                                                                                                                                                                                                                                                                Utilities

                                                                                                                                                                                                                                                                            Energy
                                                                                                                                            Materials

                                                                                                                                                                                        Industrials
                                                                                                                                                         Consumer Staples

                                                                                                                                                                                                      Health Care

                                                                                                                                                                                                                     Comm Services

                                                                                                                                                                                                                                                  Real Estate
US (S&P      MSCI       Europe       UK   Emerging MSCI China A-                   MSCI         MSCI
 500)        World      (Stoxx     (FTSE) Markets Asia ex shares                   China        Hong
                         600)                      Japan                                        Kong

Source: Manulife Investment Management, 30 September 2020
*Index returns are gross total returns for each country / exchange market. Performance shown in USD
1http://www.xinhuanet.com/english/2020-07/03/c_139186841.htm
2http://english.www.gov.cn/news/photos/202008/25/content_WS5f4468cec6d0f7257693af55.html

                                                                            For Institutional/Investment Professional Use Only. Not for distribution to the public.                                                                                                         MSTR.525014   2
China Hong Kong Opportunities Strategy - Quarterly Market and Strategy Review (formerly known as Hong Kong Opportunities strategy)* - Manulife ...
3Q20: Strategy delivered strong absolute returns with marginal
underperformance

                                   What Helped?                                                             Preliminary Performance (USD)                        3Q20        1Yr        3Yr             5Yr         7Yr            SI

• Asset allocation decisions at sector level contributed to                                                China HK Opportunities (Gross)*                          10.1         39.8    12.4            16.8         12.9          11.2
  positive relative performance. The strategy’s overweight in
                                                                                                           Benchmark: MSCI Zhong Hua NR                             10.8         26.6        6.7         12.4             8.8         9.8
  consumer discretionary and underweight in financials have
  helped relative performance.                                                                             Excess Return over prevailing
                                                                                                                                                                    -0.7         13.2        5.7          4.4             4.1         1.4
                                                                                                           benchmark
 On individual holdings, the key contributor was a
                                                                                                           MSCI China 10/40 NR                                      10.5         27.8        6.2         11.8             8.2       10.6
  biopharmaceutical company focused on cancer treatments.
  The company continued its uptrend on the announcement                                                    Excess Return over China equity
                                                                                                                                                                    -0.4         12.0        6.2          5.0             4.7         0.6
  that it had secured Chinese regulatory approval to proceed                                               market
  with clinical trial for one of its key products. This further
                                                                                                                                          Attribution over prevailing benchmark
  showcased the company’s research capability subsequent to
  a few favorable clinical result updates of several drugs in its                                                                                            Detractors                 Contributors
  pipeline.
                                                                                                                 Selection Effect               -210
                                                                                                                 Allocation Effect                                                                                  181

                                      What Hurt?                                                                          Cash                                                   -4
                                                                                                                    Financials                                                                                144
• Stock selection in consumer discretionary and consumer                                                             Materials                                                                     79
  staples were the main detractors.                                                                            Comm Services                                                                  54
                                                                                                                       Utilities                                                             44
• The strategy’s holding in an e-commerce group buying
                                                                                                                  Health Care                                                           19
  platform focused on lower tier cities detracted from
                                                                                                                        Energy                                                   -8
  performance. The stock retreated on concerns that the                                                            Industrials                                             -25
  quarterly results showed a higher customer acquisition cost,                                                    Real Estate                                            -37
  and competition from key players was getting more keen at                                                          Info Tech                                        -61
  lower tier cities. We remain positive on the company’s                                                     Consumer Staples                                      -84
  growth outlook and believed the platform’s active users                                                      Consumer Discr                            -149
  have reached a critical mass to bring scale effect.
                                                                                                                                                                Total effect (bps)
Source: Manulife Investment Management and FactSet, as of September 30, 2020. Annualized for period over 1 year.
*Note that attribution may not match with official performance figures . Inception Date: 1 January 2006. Current lead portfolio manager: since June 2012.
 MSCI Zhong Hua is comprised of MSCI China (85%) and MSCI Hong Kong (15%)
Past performance is not indicative of future results. Performance is shown in USD, 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.525014   3
Strategy sector positioning and outlook

• As China gradually comes out from the pandemic, we                                                                                        Sector Active weight (%)
  see our investment themes further strengthened by
  riding on a more digitalized and more self-
                                                                                                                                 Materials
  sufficient economy.
                                                                                                                                      Cash
• In Q3, the strategy has
     • taken profits from some of the highflyers YTD in                                                                      Health Care
       the China A-shares and healthcare sector as we
       see limited upside from valuation perspective.                                                                            Info Tech
     • added exposures to cyclical growth including
                                                                                                                        Consumer Disc
       building and construction materials to position for
       the near to medium term recovery.
                                                                                                                               Industrials
     • added exposure in domestic consumption from
       leisure spending to auto and electric vehicles                                                                               Energy
       components, as we see strong pent-up demand
       being released.                                                                                                       Real Estate
     • remain cautious on export-oriented sectors as
       they will need to restructure some of their                                                                 Consumer Staples

       products to better cater for domestic demand and
                                                                                                                                    Utilities
       this transition may be long and difficult.
                                                                                                                       Comm Services
• We continue to focus on under-researched ideas
  emerging winners and disruptors in the above areas,
                                                                                                                               Financials
  especially in the SMID segment in China A-shares.
                                                                                                                                              (6.0)       (4.0)      (2.0)   -   2.0   4.0     6.0

Source: Manulife Investment Management, FactSet, as of 30 September 2020

                                                                           For Institutional/Investment Professional Use Only. Not for distribution to the public.                           MSTR.525014   4
China Hong Kong Opportunities Strategy Positioning
SMID cap tilt and actively managed China A-shares exposure

Portfolio breakdown (%)*:
• Strategy’s focus on under-researched ideas resulted in a small and mid cap tilt.
• Selective in China A-shares for unique opportunities not exist in offshore listings.
• Highly actively managed China A-shares exposure (11.5% portfolio holdings only has 0.2% index weight in aggregate)

Market Cap Breakdown (%)                                                                           Share Type Breakdown (%)
100                95        93                                                                        80

80         77
                                                                                                                                 60
                                                                                                       60        55
                                                                                                                         47                                       Highly active A-shares exposures.
60
                                                                                                                                                                  Mostly in non-consensus stock picks.
                                                                                                       40
40                                                                                                                                                                          29
                                                                                                                                                                                  25

                                                                                                       20                                    17                                                              15
20                                       15                                                                                                         14                14
                                                                                                                                                                                             12     10
                                                           5         7
                                                   4                          1         2                                                                     0
  0                                                                                                     0
                 Large cap                      Mid cap                   Small cap                             China (HK-listed)              Hong Kong                   ADRs                   A-shares
                (> USD 5B)                    (USD 3-5B)                 (
China Equity has always been the primary focus of the strategy
Handpicked outward looking Hong Kong equites as additional alpha source

• The Hong Kong equity holdings in the strategy are mainly outward looking to derive growth from
  China, or as beneficiaries of the opening up of Mainland’s capital and financial market.

                   Historical Allocation by Share Type (%)                                                            %           Total return of Hong Kong Equity holdings (%)
 100
                                                                              China A: 11.5%                             20

  80                                                                                                                                                                          15.1
                                                                                                                         15

  60                                                                                                                                          10.5
                                                                                                                         10

  40
                                                                                                                          5

  20                                                                                                                                                         0.7
                                                                                                                          0
                                                                   Hong Kong : 16.8%
    -
                                                                                                                                                                                           -2.8
        Dec-15

        Dec-16

        Dec-17

        Dec-18

        Dec-19
        Mar-15
        Jun-15
        Sep-15

        Mar-16
        Jun-16
        Sep-16

        Mar-17
        Jun-17
        Sep-17

        Mar-18
        Jun-18
        Sep-18

        Mar-19
        Jun-19
        Sep-19

        Mar-20
        Jun-20
        Sep-20

                                                                                                                         -5
                                                                                                                                                      3M                              1Y

         Hong Kong Equity                  China - ADRs                       China - HK listed                                                   China HK Opps      MSCI Zhong Hua
         China - A shares                  Cash

Allocation shown are on ex-cash basis. Total Return based on holdings-based methodology per FactSet in USD term.
Source: Manulife Investment Management, as of 30 September 2020.
Past performance is not indicative of future results. Performance is shown in USD, 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.525014   6
Focus on under-researched ideas
Conviction ideas in small & mid cap generated significantly higher returns than
the index
• The strategy’s stock selection in the small and mid cap segment delivered a significantly higher
  return than the benchmark constituents.

                                     Historical allocation by market cap                                                                                                                      Total Return by Market Cap Segment (%)
100%
                                                                                                                                                                                   50                                                                        44
                                                                                                                                                                                                                                  42

 80%
                                                                                                                                                                                                                                       29
                                                                                                                                                                                   30
                                                                                                                                                                                                                                               20
 60%
                                                                                                                                                                                         12    11
                                                                                                                                                                                   10                                7
                                                                                                                                                                                                       4     4
                                                                                                                                                                                                                                                     1
 40%

                                                                                                                                                                                   -10
                                                                                                                                                                                                                          -8
 20%

                                                                                                                                                                                   -30                                                                              -24
   0%                                                                                                                                                                                    Large cap   Mid cap (3M)   Small cap Large cap (1Y) Mid cap (1Y) Small cap (1Y)
                                                                                                                                                                                           (3M)                       (3M)
                 May-13
                          Oct-13

                                                     Jan-15
                                                              Jun-15

                                                                                                           Jul-17
                                                                                Apr-16

                                                                                                                             May-18
                                                                                                                                      Oct-18

                                                                                                                                                                 Jan-20
                                                                                                                                                                          Jun-20
        Dec-12

                                   Mar-14
                                            Aug-14

                                                                       Nov-15

                                                                                                                    Dec-17
                                                                                         Sep-16
                                                                                                  Feb-17

                                                                                                                                               Mar-19
                                                                                                                                                        Aug-19

                           LARGE CAP (>USD 5B)                                                             MID CAP (USD 3 - 5B)
                                                                                                                                                                                                       China HK Opps                     MSCI Zhong Hua
                           SMALL CAP (
China Hong Kong Opportunities Composite
Investment Results as of 30 September 2020

Annualized Returns (%)

45
                                                                     39.85
40
35
30                                                                               26.63
25                                    23.14

20                                                                                                                                  16.77
15                                                  11.92                                           12.35                                        12.40             12.88
          10.09      10.82                                                                                                                                                              11.25
                                                                                                                                                                              8.76                9.82
10                                                                                                               6.70
 5
 0
             3 Months                         YTD                           1 Year                       3 Years                         5 Years                      7 Years           Since Inception
                                                                                                                                                                                         (1 Jan 2006)
                                                            Gross Returns                                                         MSCI Zhong Hua Index

Calendar Year Returns (%)
                                                                                     2019            2018               2017              2016              2015           2014       2013        2012

     China Hong Kong Opportunities Composite (Gross)                             23.97%           -14.91%             58.57%            -0.17%            -3.27%           5.98%     21.47%     24.02%

     MSCI Zhong Hua Index                                                        20.71%           -16.25%             49.35%             1.52%            -5.58%           7.27%     6.26%      24.72%

     Excess return (Gross)                                                           3.26%          1.34%               9.22%           -1.69%             2.31%           -1.29%    15.21%     -0.70%

As of 30 September 2020.
Performance shown is the Manulife Investment Management China Hong Kong Opportunities Composite in USD.
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.525014   8
Capturing the Best of China’s Economic Transition

       Why China & Hong
                                                                                  Why This Strategy?                                                                 Why Manulife IM?
        Kong Equities?

  •      Domestic driven structural                                           •      Focus on structural growth                                               •      Proven track record with
         growth themes remain                                                        opportunities from secular                                                      stable investment team
         intact                                                                      trends
                                                                                                                                                              •      Local presence with on-
  •      China’s economic                                                     •      Alpha generation driven by                                                      the-ground teams in HK,
         importance to world’s GDP                                                   stock selection thanks to a                                                     Taiwan and mainland
         growth under-represented                                                    consistent and repeatable                                                       China via M-TEDA*
         by global indices                                                           investment framework
                                                                                                                                                              •      Strong risk management
  •      China A-shares expected to                                           •      Flexible allocation                                                             culture
         see continuous inflows                                                      between Hong Kong and
         driven by index inclusion                                                   China equities
         and diversification benefits

As of September 2020.
*Manulife-TEDA Fund Management Co. Ltd., a 49% joint venture between Manulife Financial and Northern International Trust, part of the Tianjin TEDA Investment Holding Co. Ltd. (TEDA).
Past performance is not indicative of future results. Diversification does not guarantee a profit nor protect against loss in any market.

                                                                           For Institutional/Investment Professional Use Only. Not for distribution to the public.                         MSTR.525014   9
China Hong Kong Opportunities Strategy
eVestment Offshore China Equity Universe

Top tercile:
• 2018, 2017, 2013 Returns

Source: eVestment as of 30 September 2020
Past performance is not indicative of future results. Performance is shown in gross of fees.

                                                             For Institutional/Investment Professional Use Only. Not for distribution to the public.   MSTR.525014   10
China Hong Kong Opportunities Strategy
eVestment Offshore China Equity Universe

Top tercile:

•   1,3,5 years Batting
    Average
•   5 years Upside Market
    Capture

Favorable market capture
(Up > down) over 1, 3,
5 years

Source: eVestment as of 30 September 2020
Past performance is not indicative of future results. Performance is shown in gross of fees.

                                                             For Institutional/Investment Professional Use Only. Not for distribution to the public.   MSTR.525014   11
China Hong Kong Opportunities Strategy
eVestment Offshore China Equity Universe

Top tercile:

•   3, 5 years Information Ratio

Source: eVestment as of 30 September 2020
Past performance is not indicative of future results. Performance is shown in gross of fees.

                                                             For Institutional/Investment Professional Use Only. Not for distribution to the public.   MSTR.525014   12
Manulife Investment Management                                                                                                                                                                                GIPS Presentation
China Hong Kong Opportunities Composite
Creation Date: January 1, 2018                                                                          Inception Date: January 1, 2006                                                                                   Reporting Currency: USD

Schedule of Calendar Year Returns and Assets
                                                                                                                                                    Number of                                        Total Assets End                 Percent of
                     Gross of Fees              Net of Fees              Benchmark              Composite 3-Yr           Benchmark 3-Yr            Portfolios End             Composite                  of Period                 Firm Assets (%)
   Year End           Return (%)                Return (%)               Return (%)              Std. Dev. (%)            Std. Dev. (%)              of Period               Dispersion (%)              (Thousands)                End of Period
      2019                 23.97                     23.28                    20.71                    18.43                    17.84
Index Definitions

Index                Definition

                   The MSCI Australia Index is designed to measure the performance of the large and mid cap segments of the Australia market. With 70 constituents, the index covers
MSCI Australia
                   approximately 85% of the free float-adjusted market capitalization in Australia.

                   The MSCI China Index captures large and mid cap representation across China H shares, B shares, Red chips, P chips and foreign listings (e.g. ADRs). With 150 constituents,
MSCI China
                   the index covers about 85% of this China equity universe.

                   The MSCI Hong Kong Index is designed to measure the performance of the large and mid cap segments of the Hong Kong market. With 45 constituents, the index covers
MSCI Hong Kong
                   approximately 85% of the free float-adjusted market capitalization of the Hong Kong equity universe.
                   The MSCI Zhong Hua Index is a composite index that comprises the MSCI China (75%) and MSCI Hong Kong Index (25%). The index captures large and mid cap
MSCI Zhong Hua     representation across all China securities (B shares, H shares, Red Chips, P Chips and foreign listed shares) as well as Hong Kong securities. Currently, the index also includes
                   A stock connect large cap shares.
                   The MSCI India 10/40 Index (Total Return) is a free float-adjusted market capitalization index. The MSCI 10/40 index is designed to measure the performance of the large and
                   mid cap segments of the India market. It is designed and maintained on a daily basis to take into consideration of the 10% and 40% concentration constraints on funds. A fund
MSCI India 10/40
                   cannot invest more than 5% of its assets in securities issued by a single issuer. This limit can be increased up to 10%, provided that wherever the 5% limit is surpassed, the
                   fund’s exposure to these “larger” assets does not exceed 40% of the funds’ total assets.
                   The MSCI Indonesia Index is designed to measure the performance of the large and mid cap segments of the Indonesian market. With 31 constituents, the index covers about
MSCI Indonesia
                   85% of the Indonesian equity universe.

                   The MSCI Korea Index is designed to measure the performance of the large and mid cap segments of the South Korean market. With 111 constituents, the index covers about
MSCI Korea
                   85% of the Korean equity universe .

                   The MSCI Malaysia Index is designed to measure the performance of the large and mid cap segments of the Malaysian market. With 41 constituents, the index covers about
MSCI Malaysia
                   85% of the Malaysian equity universe .

                   The MSCI New Zealand Index is designed to measure the performance of the large and mid cap segments of the New Zealand market. With 7 constituents, the index covers
MSCI New Zealand
                   approximately 85% of the free float-adjusted market capitalization in New Zealand.

                   MSCI AC World Index captures large and mid cap representation across 23 Developed Markets (DM) and 23 Emerging Markets (EM) countries**. With 2,470 constituents, the
MSCI Philippines
                   index covers approximately 85% of the global investable equity opportunity set.

                   The MSCI Singapore Index is designed to measure the performance of the large and mid cap segments of the Singapore market. With 27 constituents, the index covers
MSCI Singapore
                   approximately 85% of the free float-adjusted market capitalization of the Singapore equity universe.

                   The MSCI Taiwan Index is designed to measure the performance of the large and mid cap segments of the Taiwan market. With89 constituents, the index covers approximately
MSCI Taiwan
                   85% of the free float-adjusted market capitalization in Taiwan.

                   The MSCI Thailand Index is designed to measure the performance of the large and mid cap segments of the Thailand market. With 36 constituents, the index covers about 85%
MSCI Thailand
                   of the Thailand equity universe .

                                                    For Institutional/Investment Professional Use Only. Not for distribution to the public.                                               MSTR.525014   14
Investment Considerations

A widespread health crisis such as a global              annualized compounded return of 10.47%. If an                                  portfolio composition, which will vary. Portfolio
pandemic could cause substantial market volatility,      advisory or investment management fee of 0.95% of                              holdings are representative of the strategy, are
exchange trading suspensions and closures, and           the average market value of the account were                                   subject to change at any time, are not a
affect portfolio performance. For example, the novel     deducted monthly for the 10-year period, the                                   recommendation to buy or sell a security, do not
coronavirus disease (COVID-19) has resulted in           annualized compounded return would be 9.43% and                                represent all of the securities purchased, sold or
significant disruptions to global business activity.     the ending dollar value would be $246,355. Unless                              recommended for the portfolio. It should not be
The impact of a health crisis and other epidemics        otherwise noted, returns greater than one year are                             assumed that an investment in these securities was
and pandemics that may arise in the future, could        annualized; calendar year returns for each one year                            or will be profitable. Top ten holdings information
affect the global economy in ways that cannot            period end in December. Discrepancies may occur                                combines share listings from the same issuer, and
necessarily be foreseen at the present time. A           due to rounding.                                                               related depositary receipts, into a singular holding to
health crisis may exacerbate other pre-existing                                                                                         accurately present aggregate economic interest in
                                                         Performance information shown is generally for
political, social and economic risks. Any such impact                                                                                   the referenced company.
                                                         discretionary strategies/solutions and managed by a
could adversely affect the portfolio’s performance,
                                                         Manulife entity which is GIPS compliant and falls                              No investment strategy or risk management
resulting in losses to your investment.
                                                         under the definition of a corresponding Manulife                               technique can guarantee returns or eliminate risk in
Any performance information shown is the                 GIPS firm. Some investment strategies/solutions                                any market environment.
investment strategy composite gross of fees,             may not be included in a GIPS compliant firm under
                                                                                                                                        Diversification or asset allocation does not
including advisory and investment management fees        certain circumstances, e.g., SMA/UMA business in
                                                                                                                                        guarantee a profit nor protect against loss in any
and other expenses an investor would incur, but net      Canada or UMA models in the US.
                                                                                                                                        market. The indices referenced herein are broad-
of transaction costs, unless otherwise noted;
                                                         Any characteristics, guidelines, constraints or other                          based securities market indices and used for
deduction of such expenses would reduce returns.
                                                         information provided for this material is                                      illustrative purposes only. The indices cited are
Past performance is not indicative of future results.
                                                         representative of the investment strategy and is                               widely accepted benchmarks for investment
Net performance results reflect the application of the
                                                         provided for illustrative purpose only. They may                               performance within their relevant regions, sectors or
highest incremental rate of the standard investment
                                                         change at any time and may differ for a specific                               asset classes, and represent non-managed
advisory or management fee schedule to gross
                                                         account. Such information presented was selected                               investment portfolios.
performance results, unless otherwise indicated.
                                                         by the firm as a representative account that is
Changes in exchange rates may have an adverse                                                                                           If derivatives are employed, note that investing in
                                                         deemed to best represent the investment strategy.
effect. Actual fees may vary depending on, among                                                                                        derivative instruments involves risks different from,
                                                         Each client account is individually managed; actual
other things, the applicable fee schedule, portfolio                                                                                    or possibly greater than, the risks associated with
                                                         holdings will vary for each client and there is no
size and/or investment management agreement. For                                                                                        investing directly in securities and other traditional
                                                         guarantee that a particular client’s account will have
example, if $100,000 were invested and                                                                                                  investments and, in a down market, could become
                                                         the same characteristics as described herein. Any
experienced a 10% annual return compounded                                                                                              harder to value or sell at a fair price.
                                                         information about the holdings, asset allocation, or
monthly for 10 years, its ending value, without giving
                                                         sector diversification is historical and is not an                             Source for information shown is Manulife Investment
effect to the deduction of advisory or investment
                                                         indication of future performance or any future                                 Management, unless otherwise noted.
management fees, would be $270,704 with

                                                          For Institutional/Investment Professional Use Only. Not for distribution to the public.                                      MSTR.513179   15
Important Information

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trademarks of The Manufacturers Life Insurance Company and are            known as Manulife Asset Management Services Berhad)                            as of the date indicated. The information in this material including
used by it, and by its affiliates under license.                          200801033087 (834424-U) Philippines: Manulife Asset                            statements concerning financial market trends, are based on current
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About Manulife Investment Management                                      Management LLC, Manulife Investment Management (US) LLC,                       buy or sell any security or to adopt any investment strategy, and
                                                                          Manulife Investment Management Private Markets (US) LLC, and                   shall not form the basis of, nor may it accompany nor form part of,
Manulife Investment Management is the global wealth and asset             Hancock Natural Resource Group, Inc. Vietnam: Manulife                         any right or contract to buy or sell any security or to adopt any
management segment of Manulife Financial Corporation. We draw             Investment Fund Management (Vietnam) Company Limited.                          investment strategy. Nothing in this material constitutes investment,
on more than a century of financial stewardship to partner with                                                                                          legal, accounting, tax or other advice, or a representation that any
clients across our institutional, retail, and retirement businesses       No Manulife entity makes any representation that the contents of               investment or strategy is suitable or appropriate to your individual
globally. Our specialist approach to money management includes            this presentation are appropriate for use in all locations, or that the        circumstances, or otherwise constitutes a personal recommendation
the highly differentiated strategies of our fixed-income, specialized     transactions, securities, products, instruments or services discussed          to you. Manulife Investment Management or its affiliates does not
equity, multi-asset solutions, and private markets teams—along with       in this presentation are available or appropriate for sale or use in all       provide legal or tax advice, and you are encouraged to consult your
access to specialized, unaffiliated asset managers from around the        jurisdictions or countries, or by all investors or counterparties. All         own lawyer, accountant, or other advisor before making any
world through our multimanager model.                                     recipients of this presentation are responsible for compliance with            financial decision. Prospective investors should take appropriate
                                                                          applicable laws and regulations.                                               professional advice before making any investment decision. In all
These materials have not been reviewed by, are not registered with
                                                                          Any general discussions or opinions contained within this document             cases where historical performance is presented, note that past
any securities or other regulatory authority, and may, where
                                                                          regarding securities or market conditions represent the view of either         performance is not indicative of future results and you should not
appropriate, be distributed by the following Manulife entities in their
                                                                          the source cited or Manulife Investment Management as of the day               rely upon it as the basis for making an investment decision.
respective jurisdictions. Additional information about Manulife
Investment Management may be found at                                     of writing and are subject to change. There can be no assurance
www.manulifeim.com/institutional.                                         that actual outcomes will match the assumptions or that actual
                                                                          returns will match any expected returns. The information and/or
Australia: Hancock Natural Resource Group Australasia Pty                 analysis contained in this material have been compiled or arrived at
Limited., Manulife Investment Management (Hong Kong) Limited.             from sources believed to be reliable, but Manulife Investment
Brazil: Hancock Asset Management Brasil Ltda. Canada: Manulife            Management does not make any representation as to their
Investment Management Limited, Manulife Investment Management             accuracy, correctness, usefulness or completeness and does not
Distributors Inc., Manulife Investment Management (North America)         accept liability for any loss arising from the use hereof or the
Limited, Manulife Investment Management Private Markets                   information and/or analysis contained herein. Information about the
(Canada) Corp. China: Manulife Overseas Investment Fund                   portfolio’s holdings, asset allocation, or country diversification is
Management (Shanghai) Limited Company. European Economic                  historical and will be subject to future change. Neither Manulife
Area and United Kingdom: Manulife Investment Management                   Investment Management or its affiliates, nor any of their directors,
(Europe) Ltd. which is authorised and regulated by the Financial          officers or employees shall assume any liability or responsibility for
Conduct Authority, Manulife Investment Management (Ireland) Ltd.          any direct or indirect loss or damage or any other consequence of
which is authorised and regulated by the Central Bank of Ireland          any person acting or not acting in reliance on the information
Hong Kong: Manulife Investment Management (Hong Kong)                     contained herein.

                                                                           For Institutional/Investment Professional Use Only. Not for distribution to the public.                                                 MSTR.513179   16
Important Information (continued)

The distribution of the information contained in this presentation may      Malaysia: This material was prepared solely for information                    Instruments Directive (2004/39/EC) as transposed into the relevant
be restricted by law and persons who access it are required to              purposes and is not an offer or solicitation by anyone in any                  jurisdiction. Further, the information and data presented does not
comply with any such restrictions. The contents of this presentation        jurisdictions or to any person to whom it is unlawful to make such an          constitute, and is not intended to constitute, "marketing" as defined
are not intended for distribution to, or use by, any person or entity in    offer or solicitation.                                                         in the Alternative Investment Fund Managers Directive.
any jurisdiction or country where such distribution or use would be
contrary to any applicable laws or regulations. By accepting this           Singapore: This material is intended for Accredited Investors and              United States: Manulife Investment Management (US) LLC
material you confirm that you are aware of the laws in your own             Institutional Investors as defined in the Securities and Futures Act.          (“Manulife IM US”) and Manulife Investment Management (North
jurisdiction relating to the provision and sale of the funds, portfolios                                                                                   America) Limited (“Manulife IM NA”) are indirect wholly owned
                                                                            South Korea: This material is intended for Qualified Professional              subsidiaries of Manulife. Manulife IM (US) and certain of our
or other investments discussed in this presentation and you warrant         Investors under the Financial Investment Services and Capital
and represent that you will not pass on or utilize the information                                                                                         affiliates provide investment management and advisory services in
                                                                            Market Act ("FSCMA"). Manulife Investment Management does not                  the United States under the brand name “John Hancock Investment
contained in the presentation in a manner that could constitute a           make any representation with respect to the eligibility of any
breach of such laws by any Manulife entity or any other person.                                                                                            Management”. This material is not intended to be, nor shall it be
                                                                            recipient of these materials to acquire any interest in any security           interpreted or construed as, a recommendation or providing advice,
Australia: Manulife Investment Management (Hong Kong) Limited               under the laws of Korea, including, without limitation, the Foreign            impartial or otherwise.
("Manulife IM (HK)") is exempt from the requirement to hold an              Exchange Transaction Act and Regulations thereunder. An interest
Australian financial services license under the Corporations Act in         may not be offered, sold or delivered directly or indirectly, or offered,
respect of the financial services being offered in this material.           sold or delivered to any person for re-offering or resale, directly or
Manulife IM (HK) is regulated by the Securities and Futures                 indirectly, in Korea or to any resident of Korea, except in compliance
Commission of Hong Kong ("SFC") under Hong Kong laws, which                 with the FSCMA and any other applicable laws and regulations. The
differ from Australian laws. This presentation is directed at               term “resident of Korea” means any natural person having his place
wholesale investors only.                                                   of domicile or residence in Korea, or any corporation or other entity
                                                                            organized under the laws of Korea or having its main office in Korea.
China: No invitation to offer, or offer for, or sale of any security will
be made to the public in China (which, for the purposes of this             Switzerland: This material is intended for Professional Clients,
paragraph, does not include the Hong Kong or Macau Special                  including Institutional Clients, as defined in the Federal Financial
Administrative Regions or Taiwan) or by any means that would be             Services Act ("FinSA") and its implementing ordinance, at the
deemed public under the laws of China. The offering document of             exclusion of Professional Clients with an opting-out pursuant to Art.
the subject fund(s) has not been submitted to or approved by the            5 (1) FinSA ("Opting-Out Clients"), and/or Qualified Investors
China Securities Regulatory Commission or other relevant                    pursuant to the Federal Collective Investment Schemes Act ("CISA")
governmental authorities in China. Securities may only be offered or        and its implementing ordinances, at the exclusion of Opting-Out
sold to Chinese investors that are authorized to buy and sell               Clients and Managed/Advisory Retail Clients pursuant to Art. 10
securities denominated in foreign exchange. Prospective investors           (3ter) CISA where relevant. The information provided in this material
resident in China are responsible for obtaining all relevant approvals      is for information purpose only and does not constitute an offer, a
from the Chinese government authorities, including but not limited to       solicitation or a recommendation to contract a financial instrument or
the State Administration of Foreign Exchange, before investing.             a financial service as defined under FinSA. This material does not
                                                                            constitute an implicit or explicit investment advice. The information
Hong Kong: This material is provided to Professional Investors, as          provided herein is general in nature and does not constitute an
defined in the Hong Kong Securities and Futures Ordinance and the           advertisement of financial products in Switzerland pursuant to FinSA
Securities and Futures (Professional Investor) Rules, in Hong Kong          and its implementing ordinance.
only. It is not intended for and should not be distributed to, or relied
upon, by members of the public or retail investors.                         European Economic Area and United Kingdom: The data and
                                                                            information presented is directed solely at persons who are
                                                                            Professional Investors in accordance with the Markets in Financial

                                                                             For Institutional/Investment Professional Use Only. Not for distribution to the public.                                                  MSTR.513179   17
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