Manulife Asset Management launches Asia Pacific Income and Growth Segregated Portfolio

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1 For Immediate Release May 7, 2014 Important Information: Manulife Advanced Fund SPC - Asia Pacific Income and Growth Segregated Portfolio (the "Fund") invests in equity securities and fixed income securities, real estate investment trusts, money market instruments, debt instruments, non-investment grade instruments and financial derivative instruments in the Asia Pacific ex-japan region, which may involve higher credit/counterparty, currency, downgrade, interest rate, liquidity, political, socioeconomic policy, regulatory and volatility risks. Investments in the emerging markets may be subject to liquidity, volatility, political, regulatory and currency risks and these risks could be substantially higher than risks normally associated with the world s more established markets. The Fund does not guarantee distribution of dividends, the frequency of distribution, and the amount of dividends. The Fund may at its discretion pay dividend out of capital or gross income while charging / paying all or part of its fees and expenses out of its capital. This amounts to a return or withdrawal of part of an investor s original investment or from any capital gains attributable to that original investment, and may result in an immediate reduction of the net asset value per share of the respective share classes after the distribution date. Investment involves risk. The Fund may expose its investors to capital loss. Investors should not base on this material alone to make investment decisions and should read the offering document for details, including the risk factors, charges and features of the Fund and its share classes. Manulife Asset Management launches Asia Pacific Income and Growth Segregated Portfolio Manulife Advanced Fund SPC Asia Pacific Income and Growth Segregated Portfolio provides investors with exposure to equities while aiming to achieve relatively lower volatility 1 through equity/bond asset allocation strategy and capitalizing on the economic growth potential of the Asia Pacific (ex-japan) region over the medium to longer term. Hong Kong Manulife Asset Management (Hong Kong) Limited announced today the launch of the Manulife Advanced Fund SPC Asia Pacific Income and Growth Segregated Portfolio (the Fund ). Through investments across a broad range of equities and fixed income-related securities in the Asia Pacific (ex-japan) region, the Fund aims to provide retail investors in Hong Kong with income and capital appreciation over the medium and longer term. 1 From to , the annualized volatility of the Asia Pacific ex Japan mixed asset portfolio (represented by 50% MSCI AC Asia Pacific ex Japan Index + 50% J.P. Morgan Asia Credit Index) was 12.17%, which is lower than the Asia Pacific ex Japan equities (20.75%, represented by MSCI AC Asia Pacific ex Japan Index). Source: Bloomberg. 1

2 To optimize returns amid volatile market conditions, the Fund applies an active asset allocation strategy that can be flexibly adjusted among a diverse range of carefully selected Asia Pacific (ex-japan) equities, fixed income (including higher-yielding debt securities); real estate investment trusts (REITs) and cash. In the current environment, the Fund is expected to start off with around 60 per cent in equities and 40 per cent in fixed income 2. Steve Chiu, Vice President, Investment Funds, Manulife Asset Management (Hong Kong) Limited, said: Findings of the Manulife Investor Sentiment Index (MISI) 3 showed that though they don t like market volatility, more than half of the investors in Hong Kong say if they were to move out of cash, they would likely opt for investment in equities. The Fund we are launching now is specially designed for these investors so that they can have exposure to equities while market volatility may be mitigated through active asset allocation strategy across bonds and other asset classes. It also provides investors with the opportunity to benefit from the long-term economic growth potential of the Asia Pacific (ex-japan) region. The Fund is managed by Manulife Asset Management (Hong Kong) Limited. Manulife Asset Management s investment expertise is backed by a global network of over 325 investment professionals, with 75 on-the-ground equity investment experts, 54 fixed income experts and four dedicated asset allocation professionals across Asia. Using an active asset allocation strategy, the fund manager weighs the relative merits of investing in equities or fixed income securities, or both when an attractive investment target has been identified. This asset-class-agnostic selection process results in a high degree of flexibility to potentially generate returns on investment ideas across the market cycle. Ronald CC Chan, Head of Equities, Asia, Manulife Asset Management, commented: Global economic expansion has been relatively stable over the past year and emerging Asian economies have reaped the benefits, with many poised to continue showing economic growth higher than that of developed economies. Within this framework we are more positive on 2 Subject to investment restriction set out in the offering document. 3 Findings of 4Q 2013 Manulife Investor Sentiment Index. Manulife s Investor Sentiment Index in Asia is a quarterly, proprietary survey measuring and tracking investors views across eight markets in the region on their attitudes towards key asset classes and related issues. 2

3 North Asia as the region s constituent countries and territories tend to be more export-oriented and should be well positioned to take advantage of the continued growth in global trade. While we cannot rule out periods of volatility going forward, we believe that careful selection of companies with the potential to deliver earnings improvement can generate positive investment returns in this environment, added Chan. The Fund comes with multiple currency classes, including USD Inc, AUD Inc Hedged, CAD Inc Hedged, and HKD Inc. It has an initial charge of up to five per cent and charges a management fee of 1.50 per cent per annum of the net asset value. The Fund is distributed through Manulife Investment Funds Intermediaries and available at Manulife s other investment platforms. More details of the Fund can be found under Further Fund Details. 3

4 Further fund details Fund name Investment manager Manulife Advanced Fund SPC Asia Pacific Income and Growth Segregated Portfolio Manulife Asset Management (Hong Kong) Limited Inception Date April 14, 2014 Classes Base currency Dividend policy Financial year end of the fund Minimum initial investment AA (USD) Inc / AA (AUD) Inc Hedged / AA (CAD) Inc Hedged / AA (HKD) Inc USD Aim to make dividend payment to investors on a monthly basis. The distribution rate is not guaranteed. Distribution may be paid out of capital. Please pay attention to Important Information point 3 30 June Class AA (USD) Inc HKD20,000 a (or the equivalent in any other Major Currencies b ) Class AA (AUD) Inc Hedged AUD2,500 a (or the equivalent in any other Major Currencies b ) Class AA (CAD) Inc Hedged CAD2,500 a (or the equivalent in any other Major Currencies b ) Class AA (HKD) Inc HKD20,000 a (or the equivalent in any other Major Currencies b ) Initial charge c Currently up to 5% of the Net Asset Value (NAV) per Share. The Directors reserve the right to charge up to 6% of the NAV per Share. Redemption charge Management fee Dealing frequency There is currently no redemption charge Currently 1.50% c,d per annum of the NAV Daily (on Dealing Day basis, please refer to the Prospectus for details) Remarks: a. b. c. d. Or such other minimum amount as may be determined by the Directors at their sole discretion Major Currencies means any of USD, Pound Sterling, Swiss Francs, Euro, Japanese Yen, HKD and Canadian Dollars A portion (or all in the case of the initial charge) may be paid to the General Adviser and Distributor for its services. You should note that such fees may be increased up to a specified permitted maximum by giving affected shareholders at least one month s prior notice. For details please refer to Section 7 of Part I of the Prospectus. 4

5 About Manulife Asset Management (Hong Kong) Limited Manulife Asset Management (Hong Kong) Limited was founded in We are a member of Manulife Financial and part of its diversified businesses in Hong Kong. Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. Leveraging the global strength and investment expertise of Manulife Financial and working closely with specially appointed investment experts, Manulife Asset Management (Hong Kong) Limited provides mutual funds, from single-country or sector to multi-asset class, for investors. With our experienced investment professionals, dedicated staff and well-managed products, we are committed to providing a window of investment opportunities to help our clients realize their financial goals. About Manulife Asset Management Manulife Asset Management is the global asset management arm of Manulife Financial, providing comprehensive asset management solutions for institutional investors and investment funds in key markets around the world. This investment expertise extends across a broad range of public and private asset classes, as well as asset allocation solutions. As at March 31, 2014, assets under management for Manulife Asset Management were C$298 billion (US$269 billion). Manulife Asset Management s public markets units have investment expertise across a broad range of asset classes including public equity and fixed income, and asset allocation strategies. Offices with full investment capabilities are located in the United States, Canada, the United Kingdom, Japan, Hong Kong, Singapore, Taiwan, Indonesia, Thailand, Vietnam, Malaysia, and the Philippines. In addition, Manulife Asset Management has a joint venture asset management business in China, Manulife TEDA. The public markets units of Manulife Asset Management also provide investment management services to affiliates' retail clients through product offerings of Manulife and John Hancock. John Hancock Asset Management and Declaration Management and Research are units of Manulife Asset Management. Additional information about Manulife Asset Management may be found at ManulifeAM.com. About Manulife Financial Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife Financial and its subsidiaries were approximately C$635 billion (US$574 billion) as at March 31, The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States. 5

6 Manulife Financial Corporation trades as MFC on the TSX, NYSE and PSE, and under 945 on the SEHK. Manulife Financial can be found on the Internet at manulife.com. end Media contact: Jacqueline Kam / Crystal Tse Tel: (852) / Fax: (852) jacqueline_tm_kam@manulife.com/ crystal_ym_tse@manulife.com Disclaimer: Manulife Asset Management is the asset management division of Manulife Financial. Manulife Asset Management s diversified group of companies and affiliates provide comprehensive asset management solutions for institutional investors, investment funds and individuals in key markets around the world. This investment expertise extends across a full range of asset classes including equity, fixed income and alternative investments such as oil & gas, real estate, timber, farmland, as well as asset allocation strategies. Manulife Asset Management has investment offices in the United States, Canada, the United Kingdom, Japan, Hong Kong, and throughout Asia. Additional information about Manulife Asset Management may be found at Manulife Asset Management, Manulife and the block design are trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation. This material, intended for the exclusive use by the recipients who are allowable to receive this document under the applicable laws and regulations of the relevant jurisdictions, was produced by and the opinions expressed are those of Manulife Asset Management as of the date of writing and are subject to change. The information and/or analysis contained in this material have been compiled or arrived at from sources believed to be reliable but Manulife Asset Management does not make any representation as to their accuracy, correctness, usefulness or completeness and does not accept liability for any loss arising from the use hereof or the information and/or analysis contained herein. Information about the portfolio s holdings, asset allocation, or country diversification is historical and is not an indication of future portfolio composition, which will vary. Neither Manulife Asset Management or its affiliates, nor any of their directors, officers or employees shall assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained herein. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be significantly different than that shown here. The information in this material including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. This material was prepared solely for informational purposes and does not constitute a recommendation, professional advice, an offer, solicitation or an invitation by or on behalf of Manulife Asset Management to any person to buy or sell any security. This material should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any investment products or to adopt any investment strategy. Nothing in this material constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you. Past performance is not an indication of future results. Proprietary and Confidential Information Please note that this material must not be wholly or partially reproduced, distributed, circulated, disseminated, published or disclosed, in any form and for any purpose, to any third party without prior approval from Manulife Asset Management. 6

7 Investment involves risks. Fund prices may go down as well as up. Please refer to the offering documents and product key facts statements for further details including the risk factors, charges, features and investment policies and restrictions of the Fund. The information contained in this material is provided for reference only and does not constitute any investment advice. Investors are advised to seek independent advice before making any investment decision. This material has not been reviewed by the Securities and Futures Commission. Issued by Manulife Asset Management (Hong Kong) Limited (CE No. ACP555). 7