MANULIFE GLOBAL FUND

Transcription

1 MANULIFE GLOBAL FUND Société d'investissement à Capital Variable Audited Annual Report for the year ended 30 June 2017 No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus, accompanied by the latest annual report and semi-annual report if published thereafter. SICAV R.C.S Luxembourg B

2 CONTENTS Directors and Conducting Persons... 1 Management and Administration... 2 Directors Report... 4 Audit Report... 6 Statement of Net Assets... 9 Statement of Changes in Net Assets Statement of Changes in Shares Statement of Operations Statistical Information Industrial Composition of Portfolios as a Percentage of Net Asset Value (Unaudited) Statement of Movements in Portfolio Holdings (Unaudited) Portfolio of Investments American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation-Protected Securities Fund Notes to the Financial Statements Information for Shareholders Unaudited Supplementary Information

3 DIRECTORS AND CONDUCTING PERSONS DIRECTORS Paul Smith (Chairman) CFA Institute 23rd Floor, Man Yee Building 68 Des Voeux Road Central Hong Kong SAR Yeo Hui Chin 10th Floor Lee Gardens One 33 Hysan Avenue Causeway Bay Hong Kong SAR Christakis Partassides GFM Holdings (Cyprus) Limited 2nd Floor, Elenion Building, 5 Themistocles Dervis Str. CY Nicosia Cyprus CONDUCTING PERSONS John Li 19, rue de Bitbourg L Luxembourg Grand Duchy of Luxembourg Yves Wagner 19, rue de Bitbourg L Luxembourg Grand Duchy of Luxembourg Gianni Fiacco 16th Floor Lee Gardens Ones 33 Hysan Avenue Causeway Bay Hong Kong SAR Yves Wagner 19, rue de Bitbourg L Luxembourg Grand Duchy of Luxembourg Philip Witherington 10th Floor Lee Gardens One 33 Hysan Avenue Causeway Bay Hong Kong SAR Gianni Fiacco 16th Floor Lee Gardens One 33 Hysan Avenue Causeway Bay Hong Kong SAR 1 MANULIFE GLOBAL FUND

4 MANAGEMENT AND ADMINISTRATION Registered Office 31, Z.A. Bourmicht L Bertrange Grand Duchy of Luxembourg R.C.S. Luxembourg B26141 General Adviser and Distributor Manulife Asset Management International Holdings Limited The Goddard Building Haggat Hall St. Michael Barbados Depositary, Administrator, Registrar and Paying Agent Citibank Europe plc, Luxembourg Branch 31, Z.A. Bourmicht L Bertrange Grand Duchy of Luxembourg Tel: (352) Fax: (352) Legal Advisers Luxembourg Linklaters LLP Avenue J.F. Kennedy 35 L Luxembourg Grand Duchy of Luxembourg Hong Kong Dechert LLP 27th Floor, Henley Building 5 Queen s Road Central Hong Kong SAR Hong Kong Distributor Manulife Asset Management (Hong Kong) Limited 16th Floor Lee Gardens One 33 Hysan Avenue Causeway Bay Hong Kong SAR Tel: (852) Fax: (852) Investment Managers Charlemagne Capital (UK) Limited 39, St. James Street London SW1A 1JD United Kingdom (Investment Manager of the Emerging Eastern Europe Fund, Latin America Equity Fund, Russia Equity Fund and Turkey Equity Fund) Manulife Asset Management (Hong Kong) Limited 16th Floor The Lee Gardens 33 Hysan Avenue Causeway Bay Hong Kong SAR (Investment Manager of the ASEAN Equity Fund, Asia Total Return Fund, Asian Equity Fund, Asian Small Cap Equity Fund, Dragon Growth Fund, Greater China Opportunities Fund, India Equity Fund, Japanese Growth Fund and Taiwan Equity Fund) Manulife Asset Management (Europe) Limited 18 St Swithin s Lane London EC4N 8AD United Kingdom (Investment Manager of the European Growth Fund) MANULIFE GLOBAL FUND 2

5 MANAGEMENT AND ADMINISTRATION Manulife Asset Management (US) LLC 197 Clarendon Street, 4th Floor, Boston, MA United States of America (Investment Manager of the American Growth Fund, Global Contrarian Fund, Global Equity Fund, Global Property Fund, Global Resources Fund, Healthcare Fund, Strategic Income Fund, U.S. Bond Fund, U.S. Small Cap Equity Fund, U.S. Special Opportunities Fund and U.S. Treasury Inflation-Protected Securities Fund) Sensible Asset Management Limited 9th Floor, Nexxus Building 41 Connaught Road Central Hong Kong SAR (Investment Manager of the Asia Value Dividend Equity Fund) Value Partners Limited 9th Floor, Nexxus Building 41 Connaught Road Central Hong Kong SAR (Investment Manager of the China Value Fund) Sub-Investment Managers Value Partners Limited 9th Floor, Nexxus Building 41 Connaught Road Central Hong Kong SAR (Sub-Investment Manager of the Asia Value Dividend Equity Fund) Investment Advisers Manulife Asset Management (Japan) Limited 15th Floor Marunouchi Trust Tower North Building Marunouchi Chiyoda-ku Tokyo (Investment Adviser to the Investment Manager of the Japanese Growth Fund until 31 July 2016) Manulife Asset Management (Europe) Limited 18 St Swithin s Lane London EC4N 8AD United Kingdom (Investment Adviser to the Investment Manager of the Japanese Growth Fund since 1 August 2016) Manulife Asset Management (Taiwan) Co., Ltd. 9/F, No.89 Sungren Road Taipei Taiwan Republic of China Auditor PricewaterhouseCoopers, Société coopérative 2 Rue Gerhard Mercator B.P. 1443, L Luxembourg Grand Duchy of Luxembourg Hong Kong Representative Citibank N.A. Hong Kong Branch 50th Floor, Citibank Tower Citibank Plaza 3, Garden Road Central Hong Kong SAR To the Shareholders of Manulife Global Fund 3 MANULIFE GLOBAL FUND

6 DIRECTORS REPORT Performance and growth of assets During the year under review, Global equity markets significantly advanced over the period due to investor optimism about the outcome of the US elections and an improving global economic backdrop. Emerging markets was the best-performing region as earnings expectations were raised and the economic backdrop improved. Energy was one of the worst-performing sectors due to the volatility in the price of oil, stemming from increased global supply. Financials was the best-performing sector, specifically in the fourth quarter of 2016, as the prospects for earnings improvement increased. During the year, equity markets performed relatively better compared to bond markets. In terms of subfunds performance, the Dragon Growth Fund posted returns over 29%, while Asian Equity Fund and Greater China Opportunities Fund recorded over 18% and 25% respectively. Year in review In US, the Fed increased its federal funds target rate three times, by 25 basis points (bps) each time. During the fourth quarter of 2016, US Treasury yields were volatile and spiked sharply in a short amount of time after the US elections. This occurred due to expectation of expansive fiscal spending and higher inflation under the new presidential administration. 10-year Treasury yields rose from 1.47% to 2.30% over the period. Asian corporate credit markets saw gains, predominately driven by the positive carry. The JP Morgan Asian Investment Grade Corporate Bond Index returned 2.26% and the JP Morgan Asian High Yield Corporate Bond Index returned 6.48% in US dollar terms. The majority of sub-funds recorded positive returns over the year. In US, the stock market hit record highs shortly before period end, aided by the following factors: Promised production cuts by the Organization of the Petroleum Exporting Countries (OPEC), positive economic data, and the Fed s decision to inch its target short-term interest rate higher last December (and again in March and June). In Europe, markets performed strongly over the past 12 months, driven by a narrowing of the deep valuation discount to US equities and moderating political risk. The UK was the worst-performing major European market over the 12 months following the country s surprise vote to exit the EU (known as Brexit ). The British pound fell sharply in response to the UK s vote in late June 2016, with currency moves accounting for much of the underperformance of UK equities. The Greater China equity markets had a strong start during the period in review due to companies reporting mostly better-than-expected earnings during the third quarter reporting season, and as China s Producer Price Index (PPI) rose from a 55-month deflation in September and continued through May This was supportive of pricing power returning to corporates, as well as an improvement of the banking industry s asset quality. MANULIFE GLOBAL FUND 4

7 DIRECTORS REPORT Outlook Global markets should continue to fare well in Key indices continued to rise in the second quarter, with international markets outperforming the US. The US has struggled on a relative basis as the market questions the new administration s ability to implement its economic agenda. In Europe, investor sentiment remains reasonably positive and markets welcomed the outcome of France s presidential elections. However, most price-earnings ratios for global equities remain higher than historical averages. Comparable price-earnings ratios have not been seen since the early 2000s. The biggest potential market risks stem from high global valuations and high debt levels. Despite significant efforts by central banks to kickstart economies with an injection of liquidity, inflation remains subdued. Some measures of inflation expectations have even declined to levels below those experienced during previous periods of quantitative easing. Despite this, the Fed raised rates for the second time in three months. The PMs (Portfolio Managers) believe deflation risks remain and are not being priced-in by the market this contributes to concerns about higher debt levels. The PMs maintain a negative view of the utilities sector due to high valuations, which are a result of low interest rates, though the PMs note the sector is relatively no more expensive than the broader market. The Annual General Meeting will be held on 20 October The Board of Directors 25 September MANULIFE GLOBAL FUND

8 AUDIT REPORT To the Shareholders of Manulife Global Fund Our opinion In our opinion, the accompanying financial statements give a true and fair view of the financial position of Manulife Global Fund and of each of its sub-funds (the Fund ) as at 30 June 2017, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements. What we have audited The Fund s financial statements comprise: the statement of net assets as at 30 June 2017; the portfolio of investment as at 30 June 2017; the statement of operations for the year then ended; the statement of changes in net assets for the year then ended; and the notes to the financial statements, which include a summary of significant accounting policies. Basis for opinion We conducted our audit in accordance with the Law of 23 July 2016 on the audit profession (Law of 23 July 2016) and with International Standards on Auditing (ISAs) as adopted for Luxembourg by the Commission de Surveillance du Secteur Financier (CSSF). Our responsibilities under those Law and standards are further described in the Responsibilities of the Réviseur d entreprises agréé for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Independence We are independent of the Fund in accordance with the International Ethics Standards Board for Accountants Code of Ethics for Professional Accountants (IESBA Code) as adopted for Luxembourg by the CSSF together with the ethical requirements that are relevant to our audit of the financial statements. We have fulfilled our other ethical responsibilities under those ethical requirements. PricewaterhouseCoopers, Société coopérative, 2 rue Gerhard Mercator, B.P. 1443, L-1014 Luxembourg T: , F: , Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n ) R.C.S. Luxembourg B TVA LU MANULIFE GLOBAL FUND 6

9 AUDIT REPORT Other information The Board of Directors of the Fund is responsible for the other information. The other information comprises the information included in the annual report but does not include the financial statements and our audit report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Directors of the Fund and those charged with governance for the financial statements The Board of Directors of the Fund is responsible for the preparation and fair presentation of the financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation and presentation of the financial statements, and for such internal control as the Board of Directors of the Fund determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Directors of the Fund is responsible for assessing the Fund s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Directors of the Fund either intends to liquidate the Fund or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Fund s financial reporting process. Responsibilities of the Réviseur d entreprises agréé for the audit of the financial statements The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an audit report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with the Law of 23 July 2016 and with ISAs as adopted for Luxembourg by the CSSF, we exercise professional judgment and maintain professional scepticism throughout the audit. 7 MANULIFE GLOBAL FUND

10 AUDIT REPORT We also: identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control; obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund s internal control; evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Board of Directors of the Fund; conclude on the appropriateness of the Board of Directors of the Fund s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Fund s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our audit report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audit report. However, future events or conditions may cause the Fund to cease to continue as a going concern; evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. PricewaterhouseCoopers, Société coopérative Luxembourg, 25 September 2017 Represented by Christelle Crépin MANULIFE GLOBAL FUND 8

11 9 MANULIFE GLOBAL FUND STATEMENT OF NET ASSETS as at 30 June 2017 (expressed in United States Dollars) American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund Securities portfolio at cost 229,258,739 5,550,245 91,614,450 14,150, ,143, ,529,979 Unrealised appreciation/(depreciation) 80,140, ,196 18,976 1,495,136 24,789,461 31,211,370 Securities portfolio at market value (Note 2.2) 309,399,122 6,421,441 91,633,426 15,645, ,933, ,741,349 Options purchased at market value (Note 2.7, 7) Cash at bank 18,123, ,508 4,887,700 1,136,648 2,109,371 7,811,456 Interest and dividends receivable, net 114,123 5,922 1,052, , , ,733 Unrealised appreciation on future contracts (Note 2.5, 7) 1,719 Amounts receivable on sales of securities 50,918 39,149 15,183,774 Amounts receivable on subscriptions 1,571, , , , ,026 Tax reclaim Other assets Formation Expenses (Note 2.9) 69 Total Assets 329,208,866 6,680,789 97,983,225 17,165, ,957, ,692,338 Bank overdrafts (1) (18) (226,391) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (45,076) Unrealised depreciation on future contracts (Note 2.5, 7) Amounts payable on purchases of securities (5,239,797) (56,353) (1,000,000) (223,004) (198,797) (11,828,669) Amounts payable on redemptions (2,299,368) (268,068) (155,984) (565,144) (1,201,908) Management fees (Note 3.1) (319,053) (5,467) (62,335) (23,066) (154,443) (334,897) Other liabilities (65,338) (2,238) (17,262) (5,106) (33,862) (55,343) Total Liabilities (7,923,557) (64,058) (1,392,741) (407,178) (1,178,637) (13,420,817) Net Assets 321,285,309 6,616,731 96,590,484 16,758, ,778, ,271,521 Number of shares outstanding: Class A 6,733,473 36,555,649 Class AA 6,623, ,621 8,657,507 4,258,761 67,476,529 Class AA (HKD) 85,626 35, ,020 Class AA (HKD) Inc 1,942,840 Class AA Inc 16,219,117 1,076,592 Class HA Class HC Class HI Class I 9,097,612 5,039,812 26,571, ,473 95,338,105 Class I2 Class I3 39,421, ,435 2,160,373 Class J 47,831,836 Class S Class S Hedged Class T Net asset value per share: Class A Class AA Class AA (HKD) * * * Class AA (HKD) Inc * Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I Class J Class S Class S Hedged Class T * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

12 STATEMENT OF NET ASSETS (continued) as at 30 June 2017 (expressed in United States Dollars) China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Securities portfolio at cost 745,474, ,862, ,061,106 94,451,142 15,806, ,616,365 Unrealised appreciation/(depreciation) 93,838,253 50,530,014 4,319,607 9,682,473 1,805,788 17,409,558 Securities portfolio at market value (Note 2.2) 839,312, ,392, ,380, ,133,615 17,611, ,025,923 Options purchased at market value (Note 2.7, 7) Cash at bank 9,833,269 1,159,743 1,113,838 2,263, ,128 2,456,556 Interest and dividends receivable, net 5,394,375 1,119, , ,437 42, ,487 Unrealised appreciation on future contracts (Note 2.5, 7) Amounts receivable on sales of securities 9,099, , ,954 45,585 1,132,987 Amounts receivable on subscriptions 888,272 1,448, , ,323 12,668 86,706 Tax reclaim 10,567 87, ,525 Other assets Formation Expenses (Note 2.9) Total Assets 864,528, ,962, ,950, ,395,015 18,004, ,024,184 Bank overdrafts (475,816) (44) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (8,770) (73,842) Unrealised depreciation on future contracts (Note 2.5, 7) Amounts payable on purchases of securities (6,808,798) (1,506,781) (172,507) (1,728,503) Amounts payable on redemptions (2,349,264) (1,005,608) (224,210) (306,888) (101,918) (243,270) Management fees (Note 3.1) (1,026,255) (282,331) (128,828) (122,785) (24,978) (157,199) Other liabilities (204,493) (52,672) (38,115) (25,238) (6,620) (30,283) Total Liabilities (10,388,810) (2,847,392) (391,153) (930,727) (314,793) (2,233,141) Net Assets 854,139, ,115, ,559, ,464,288 17,689, ,791,043 MANULIFE GLOBAL FUND 10 Number of shares outstanding: Class A 93,898,954 81,875,216 28,513,414 8,992,623 24,398,369 Class AA 6,429,623 7,152,409 3,769,710 4,126,106 16,883,713 3,068,017 Class AA (HKD) 28,380,968 Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I 895,809 Class I2 51,937 Class I3 3,223,119 Class J Class S 9,372 Class S Hedged Class T Net asset value per share: Class A Class AA Class AA (HKD) * Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I Class I Class J Class S ** Class S Hedged Class T * Expressed in Hong Kong Dollars ** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

13 11 MANULIFE GLOBAL FUND STATEMENT OF NET ASSETS (continued) as at 30 June 2017 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Securities portfolio at cost 10,989,161 40,814,825 13,455, ,175, ,226,404 52,124,746 Unrealised appreciation/(depreciation) 4,066,765 (2,593,823) 3,355,123 27,189,972 35,983,278 7,605,827 Securities portfolio at market value (Note 2.2) 15,055,926 38,221,002 16,810, ,365, ,209,682 59,730,573 Options purchased at market value (Note 2.7, 7) Cash at bank 176, , ,167 1,365,178 9,661, ,562 Interest and dividends receivable, net 39,907 27,792 92, , ,297 58,333 Unrealised appreciation on future contracts (Note 2.5, 7) Amounts receivable on sales of securities 73, ,271 3,012,449 Amounts receivable on subscriptions 196, , , ,592 6,702,828 5,214,567 Tax reclaim 261 3,455 18,940 Other assets 12,764 Formation Expenses (Note 2.9) 13,438 Total Assets 15,468,800 38,705,676 17,726, ,725, ,999,940 65,487,035 Bank overdrafts (7) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) Unrealised depreciation on future contracts (Note 2.5, 7) Amounts payable on purchases of securities (396,202) (7,073,528) (1,244,827) Amounts payable on redemptions (26,518) (132,505) (21,581) (1,689,939) (690,129) (525,101) Management fees (Note 3.1) (21,298) (54,315) (17,038) (415,303) (330,306) (55,004) Other liabilities (4,829) (9,956) (3,601) (66,946) (74,034) (14,213) Total Liabilities (52,645) (196,783) (438,422) (2,172,188) (8,167,997) (1,839,145) Net Assets 15,416,155 38,508,893 17,288, ,553, ,831,943 63,647,890 Number of shares outstanding: Class A 11,051,250 Class AA 14,649,559 49,726,212 3,209, ,932, ,438,573 6,874,069 Class AA (HKD) 8,312 Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I 5,577,119 Class I2 2,887,362 Class I3 169, ,995 12,616,139 Class J Class S Class S Hedged Class T Net asset value per share: Class A Class AA Class AA (HKD) * Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I Class I Class J Class S Class S Hedged Class T * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

14 STATEMENT OF NET ASSETS (continued) as at 30 June 2017 (expressed in United States Dollars) Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund Securities portfolio at cost 44,644,541 93,323,745 41,023,879 22,583,773 34,652, ,200,756 Unrealised appreciation/(depreciation) 7,367,410 (1,182,187) (1,132,368) 7,832,074 1,038,976 1,189,242 Securities portfolio at market value (Note 2.2) 52,011,951 92,141,558 39,891,511 30,415,847 35,691, ,389,998 Options purchased at market value (Note 2.7, 7) 712 Cash at bank 555,945 1,306,263 2,399, ,147 93,045 2,980,629 Interest and dividends receivable, net 35, , , ,745 1,166,521 Unrealised appreciation on future contracts (Note 2.5, 7) Amounts receivable on sales of securities 155, ,008 3,747 36,655 Amounts receivable on subscriptions 36, ,509 35, , , ,683 Tax reclaim 8,485 Other assets 41 Formation Expenses (Note 2.9) 385 Total Assets 52,795,933 94,852,790 42,885,340 31,893,561 36,205, ,095,527 Bank overdrafts (162,903) (377,173) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (59,068) Unrealised depreciation on future contracts (Note 2.5, 7) (9,131) Amounts payable on purchases of securities (805,736) (758,498) Amounts payable on redemptions (167,366) (504,328) (93,403) (1,008,407) (455,291) (542,750) Management fees (Note 3.1) (73,650) (132,206) (40,681) (42,512) (49,200) (137,811) Other liabilities (14,206) (27,701) (20,489) (9,268) (10,788) (32,001) Total Liabilities (418,125) (664,235) (1,028,508) (1,437,360) (515,279) (1,471,060) Net Assets 52,377,808 94,188,555 41,856,832 30,456,201 35,689, ,624,467 MANULIFE GLOBAL FUND 12 Number of shares outstanding: Class A Class AA 60,350, ,486,238 28,144,976 15,177,004 47,786, ,725,749 Class AA (HKD) 19,805 Class AA (HKD) Inc 194,069 Class AA Inc 414,431 Class HA Class HC Class HI Class I 15,972,650 Class I2 1,800,904 Class I3 5,793,771 Class J Class S Class S Hedged 15,549,262 Class T Net asset value per share: Class A Class AA Class AA (HKD) * Class AA (HKD) Inc * Class AA Inc Class HA Class HC Class HI Class I Class I Class I Class J Class S Class S Hedged ** Class T * Expressed in Hong Kong Dollars ** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

15 13 MANULIFE GLOBAL FUND STATEMENT OF NET ASSETS (continued) as at 30 June 2017 (expressed in United States Dollars) U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation-Protected Securities Fund Combined for the year ended 30 June 2017 Securities portfolio at cost 26,794,764 63,528,772 8,184,040 2,999,241,328 Unrealised appreciation/(depreciation) 6,039,026 1,406, , ,389,617 Securities portfolio at market value (Note 2.2) 32,833,790 64,935,053 8,295,846 3,413,630,945 Options purchased at market value (Note 2.7, 7) 712 Cash at bank 1,550,158 2,388, ,826 75,488,108 Interest and dividends receivable, net 21, ,804 34,087 14,254,835 Unrealised appreciation on future contracts (Note 2.5, 7) 1,719 Amounts receivable on sales of securities ,426,680 Amounts receivable on subscriptions 111, , ,164,472 Tax reclaim 137,414 Other assets 12,805 Formation Expenses (Note 2.9) 13,892 Total Assets 34,517,657 68,752,997 8,465,331 3,556,131,582 Bank overdrafts (1,242,353) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (186,756) Unrealised depreciation on future contracts (Note 2.5, 7) (9,131) Amounts payable on purchases of securities (47,223) (39,089,223) Amounts payable on redemptions (207,710) (47,619) (117,306) (14,951,583) Management fees (Note 3.1) (48,015) (67,965) (8,052) (4,134,993) Other liabilities (9,755) (16,600) (3,302) (854,259) Total Liabilities (312,703) (132,184) (128,660) (60,468,298) Net Assets 34,204,954 68,620,813 8,336,671 3,495,663,284 Number of shares outstanding: Class A Class AA 23,414,479 63,490,226 5,875,471 Class AA (HKD) Class AA (HKD) Inc Class AA Inc 12,006, ,426 Class HA Class HC Class HI Class I Class I2 Class I3 400,680 Class J Class S Class S Hedged Class T 368,386 Net asset value per share: Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I Class J Class S Class S Hedged Class T The Notes to the Financial Statements form an integral part of these financial statements.

16 STATEMENT OF NET ASSETS as at 30 June 2016 (expressed in United States Dollars) American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund Securities portfolio at cost 183,315,297 4,963,839 89,806,359 16,295, ,362, ,632,451 Unrealised appreciation/(depreciation) 44,007, ,805 (1,373,014) (1,306,514) 7,792,316 21,734,959 Securities portfolio at market value (Note 2.2) 227,322,720 5,928,644 88,433,345 14,988, ,154, ,367,410 Cash at bank 8,636, ,474 4,561, ,561 2,772,375 12,151,025 Interest and dividends receivable, net 165,953 6,726 1,140, , , ,110 Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) 14,099 Amounts receivable on sales of securities 24, ,224 33,102 1,110,999 3,775,417 Amounts receivable on subscriptions 1,140, ,823 27,283 78, ,108 Tax reclaim Other assets Formation Expenses (Note 2.9) Total Assets 237,266,307 6,168,727 95,218,417 15,383, ,434, ,422,505 Bank overdrafts (259) (630,380) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (200,455) Unrealised depreciation on future contracts (Note 2.5, 7) (306,339) Amounts payable on purchases of securities (18,322) (1,083,750) (57,823) (1,368,099) (17,345,884) Amounts payable on redemptions (2,722,197) (15,512) (141,809) (187,705) (1,140,123) Management fees (Note 3.1) (297,957) (4,919) (57,994) (21,916) (142,649) (357,620) Other liabilities (72,348) (2,362) (22,215) (6,308) (38,405) (89,419) Total Liabilities (3,092,761) (25,603) (1,686,265) (227,856) (2,367,238) (18,933,046) Net Assets 234,173,546 6,143,124 93,532,152 15,155, ,067, ,489,459 MANULIFE GLOBAL FUND Number of shares outstanding: Class A 7,316,629 37,563,406 Class AA 6,642,109 73,527 9,556,625 3,778,917 77,523,066 Class AA (HKD) 29,580 4, ,595 Class AA (HKD) Inc 6,967 Class AA Inc 11,728, ,012 Class I 5,856,714 5,000,000 29,501,724 5,559, ,771,419 Class I2 Class I3 1,467, ,552 Class J 49,167,079 Class S Class S Hedged Class T Net asset value per share: Class A Class AA Class AA (HKD) ** ** ** Class AA (HKD) Inc ** Class AA Inc Class I Class I2 Class I Class J Class S Class S Hedged Class T ** Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements. 14

17 15 MANULIFE GLOBAL FUND STATEMENT OF NET ASSETS (continued) as at 30 June 2016 (expressed in United States Dollars) China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Securities portfolio at cost 777,098, ,727, ,333, ,523,496 19,394, ,503,450 Unrealised appreciation/(depreciation) (68,639,446) 4,491,235 (13,761,120) (4,281,867) (1,273,047) 5,189,605 Securities portfolio at market value (Note 2.2) 708,459, ,219,162 96,571,934 99,241,629 18,121, ,693,055 Cash at bank 60,975,787 38,795 2,028,884 3,714, ,589 1,906,765 Interest and dividends receivable, net 8,172,462 1,668, , ,098 45, ,606 Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) 6,256 32,776 Amounts receivable on sales of securities 3,259,608 1,200, ,561 1,374,880 Amounts receivable on subscriptions 846,847 1,321, , ,351 47,634 84,843 Tax reclaim 9, ,693 6,120 36,897 Other assets 18,735 Formation Expenses (Note 2.9) 3,099 Total Assets 781,732, ,448,542 99,158, ,079,263 18,803, ,409,822 Bank overdrafts (1,107,717) (476,897) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) Unrealised depreciation on future contracts (Note 2.5, 7) Amounts payable on purchases of securities (13,893,091) (68,516) (7,576) (242,366) (1,810,691) Amounts payable on redemptions (1,410,516) (1,195,189) (532,890) (897,033) (48,201) (204,863) Management fees (Note 3.1) (943,553) (244,792) (123,209) (129,531) (26,534) (143,803) Other liabilities (257,411) (52,532) (50,613) (32,713) (8,535) (27,746) Total Liabilities (16,504,571) (2,668,746) (706,712) (1,543,750) (325,636) (2,187,103) Net Assets 765,228, ,779,796 98,451, ,535,513 18,478, ,222,719 Number of shares outstanding: Class A 104,581,391 87,803,222 31,127,597 10,019,570 24,770,314 Class AA 7,614,528 3,048,860 6,432,922 20,194,396 2,920,385 Class AA (HKD) 36,578,532 Class AA (HKD) Inc Class AA Inc Class I 3,572,835 Class I2 51,342 Class I3 1,181, ,981 Class J Class S 1,196 Class S Hedged Class T Net asset value per share: Class A Class AA Class AA (HKD) ** Class AA (HKD) Inc Class AA Inc Class I Class I Class I Class J Class S *** Class S Hedged Class T ** Expressed in Hong Kong Dollars *** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

18 STATEMENT OF NET ASSETS (continued) as at 30 June 2016 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Securities portfolio at cost 10,723,691 43,005,160 11,669, ,449, ,239,647 40,398,927 Unrealised appreciation/(depreciation) 4,440,961 (3,338,960) 419,293 16,132,090 16,954,748 (119,576) Securities portfolio at market value (Note 2.2) 15,164,652 39,666,200 12,089, ,581, ,194,395 40,279,351 Cash at bank 486,458 2,956, ,414 3,790,656 4,380, ,321 Interest and dividends receivable, net 47,430 30, , , , ,308 Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Amounts receivable on sales of securities 248,017 3,057,669 Amounts receivable on subscriptions 156, ,526 30,920 1,571, ,591 1,041,471 Tax reclaim 4,092 3,249 98,368 Other assets 12,419 Formation Expenses (Note 2.9) 21,075 Total Assets 15,858,943 43,061,948 12,417, ,386, ,291,037 42,075,451 Bank overdrafts (14) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (182) Unrealised depreciation on future contracts (Note 2.5, 7) Amounts payable on purchases of securities (658,480) (984,751) (2,732,050) Amounts payable on redemptions (2,550) (523,407) (57,749) (2,703,193) (731,227) (749,506) Management fees (Note 3.1) (22,455) (59,847) (11,985) (456,855) (261,651) (51,146) Other liabilities (6,305) (12,560) (4,288) (95,764) (74,374) (14,127) Total Liabilities (31,310) (1,254,490) (74,022) (4,240,563) (3,799,302) (814,779) Net Assets 15,827,633 41,807,458 12,343, ,145, ,491,735 41,260,672 MANULIFE GLOBAL FUND Number of shares outstanding: Class A 12,054,744 Class AA 15,040,567 52,865,876 1,855, ,697, ,014,724 2,697,596 Class AA (HKD) 32,347 Class AA (HKD) Inc Class AA Inc Class I 5,520,136 Class I2 10,931,666 Class I3 166, , ,227 Class J Class S Class S Hedged Class T Net asset value per share: Class A Class AA Class AA (HKD) ** Class AA (HKD) Inc Class AA Inc Class I Class I Class I Class J Class S Class S Hedged Class T ** Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements. 16

19 17 MANULIFE GLOBAL FUND STATEMENT OF NET ASSETS (continued) as at 30 June 2016 (expressed in United States Dollars) Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund Securities portfolio at cost 49,557, ,087,249 47,517,045 23,591,387 39,272, ,525,238 Unrealised appreciation/(depreciation) 2,380,128 (10,995,228) (1,186,760) 4,990,248 (6,740,070) 2,784,846 Securities portfolio at market value (Note 2.2) 51,937,244 90,092,021 46,330,285 28,581,635 32,532, ,310,084 Cash at bank 173,388 1,594,564 1,132,141 12, ,401 2,394,929 Interest and dividends receivable, net 42, , , ,699 1,405,636 Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Amounts receivable on sales of securities 290, ,295 Amounts receivable on subscriptions 119, ,903 40, , ,391 1,968,005 Tax reclaim 10,933 Other assets Formation Expenses (Note 2.9) 1,284 Total Assets 52,272,632 92,542,487 47,932,709 29,413,396 33,561, ,342,949 Bank overdrafts (296,642) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (52,975) Unrealised depreciation on future contracts (Note 2.5, 7) Amounts payable on purchases of securities (149,419) (394,509) Amounts payable on redemptions (142,086) (872,804) (90,014) (212,872) (143,256) (215,714) Management fees (Note 3.1) (71,884) (132,170) (48,273) (41,257) (47,942) (186,601) Other liabilities (17,879) (42,412) (22,797) (11,151) (13,363) (52,314) Total Liabilities (231,849) (1,047,386) (363,478) (561,922) (204,561) (849,138) Net Assets 52,040,783 91,495,101 47,569,231 28,851,474 33,356, ,493,811 Number of shares outstanding: Class A Class AA 65,349, ,496,411 29,016,502 17,414,956 48,722, ,439,037 Class AA (HKD) 43,239 Class AA (HKD) Inc 149,629 Class AA Inc 483,312 Class I 54,010,360 Class I2 1,446,748 Class I3 4,928,955 Class J Class S Class S Hedged 21,954,109 Class T Net asset value per share: Class A Class AA Class AA (HKD) ** Class AA (HKD) Inc ** Class AA Inc Class I Class I Class I Class J Class S Class S Hedged *** Class T ** Expressed in Hong Kong Dollars *** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

20 STATEMENT OF NET ASSETS (continued) as at 30 June 2016 (expressed in United States Dollars) U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Combined for the year ended 30 June 2016 Securities portfolio at cost 22,218,794 70,048,271 7,957,416 3,109,218,698 Unrealised appreciation/(depreciation) 1,900,126 (4,151,222) 198,033 17,213,992 Securities portfolio at market value (Note 2.2) 24,118,920 65,897,049 8,155,449 3,126,432,690 Cash at bank 1,012,144 2,756,074 75, ,842,815 Interest and dividends receivable, net 12,313 1,116,765 33,836 17,574,042 Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) 53,131 Amounts receivable on sales of securities 40,574 1,102,883 16,781,825 Amounts receivable on subscriptions 108, ,268 89,974 12,599,050 Tax reclaim 297,247 Other assets 31,154 Formation Expenses (Note 2.9) ,827 Total Assets 25,292,108 71,309,708 8,354,794 3,293,638,781 Bank overdrafts (2,511,909) Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) (253,612) Unrealised depreciation on future contracts (Note 2.5, 7) (306,339) Amounts payable on purchases of securities (132) (146,096) (40,961,555) Amounts payable on redemptions (86,427) (102,398) (23,697) (15,152,938) Management fees (Note 3.1) (37,238) (73,089) (8,120) (4,004,990) Other liabilities (9,923) (22,834) (4,069) (1,064,767) Total Liabilities (133,720) (344,417) (35,886) (64,256,110) Net Assets 25,158,388 70,965,291 8,318,908 3,229,382,671 MANULIFE GLOBAL FUND 18 Number of shares outstanding: Class A Class AA 22,041,489 69,899,251 5,891,009 Class AA (HKD) Class AA (HKD) Inc Class AA Inc 11,151, ,914 Class I 1,001,710 Class I2 Class I3 192, ,000 Class J Class S Class S Hedged Class T 545,805 Net asset value per share: Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class I Class I2 Class I Class J Class S Class S Hedged Class T The Notes to the Financial Statements form an integral part of these financial statements.

21 19 MANULIFE GLOBAL FUND STATEMENT OF CHANGES IN NET ASSETS for the year ended 30 June 2017 (expressed in United States Dollars) American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund Net assets at the beginning of the year 234,173,546 6,143,124 93,532,152 15,155, ,067, ,489,459 Net investment income/(deficit) (721,554) 67,500 3,152, , ,713 1,046,000 Net profits/(losses) realised on: sale of investments and options (Note 2.2) 27,372, ,640 (1,431,502) 306,560 3,604,567 32,483,304 foreign currency (Note 2.4) (21,380) (14,209) 27, (100,497) (2,306,326) forward foreign exchange contracts (Note 2.6) (715) 154,339 (525) 1,617 (659,093) futures contracts (Note 2.5) (59,527) Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) 36,132,960 (93,609) 1,391,990 2,801,650 16,997,145 9,476,411 forward foreign exchange contracts (Note 2.6) 155,379 (14,099) futures contracts (Note 2.5) 308,058 62,762, ,607 3,698,708 3,268,799 20,983,545 40,026,197 Amounts received on subscription of shares 117,574,744 47,922 25,188,169 6,047,136 32,138,316 44,008,432 Amounts paid on redemption of shares (93,215,807) (22,265,769) (7,339,537) (37,864,482) (103,325,072) Dividends paid during the year (Note 5) (9,949) (47,922) (3,562,776) (372,849) (546,534) (927,495) Net assets at the end of the year 321,285,309 6,616,731 96,590,484 16,758, ,778, ,271,521 The Notes to the Financial Statements form an integral part of these financial statements.

22 STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Net assets at the beginning of the year 765,228, ,779,796 98,451, ,535,513 18,478, ,222,719 Net investment income/(deficit) 2,487,366 89,984 1,313,724 1,148,009 46, ,342 Net profits/(losses) realised on: sale of investments and options (Note 2.2) 19,052,883 8,387,350 (400,148) 3,390,844 (308,151) 6,078,879 foreign currency (Note 2.4) 367,199 (19,097) (6,320) 4,229 (765) 26,067 forward foreign exchange contracts (Note 2.6) ,571 46, ,498 futures contracts (Note 2.5) Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) 162,477,699 46,038,779 18,080,727 13,964,340 3,078,835 12,219,953 forward foreign exchange contracts (Note 2.6) (15,026) (106,618) futures contracts (Note 2.5) 184,385,983 54,497,016 18,988,263 18,526,993 2,848,091 19,144,121 Amounts received on subscription of shares 97,877,391 85,737,916 14,231,592 21,727,383 2,538,271 21,977,377 Amounts paid on redemption of shares (188,318,084) (100,209,347) (22,050,038) (34,548,046) (6,114,381) (23,797,064) Dividends paid during the year (Note 5) (5,033,894) (1,690,168) (2,062,270) (1,777,555) (60,268) (756,110) Net assets at the end of the year 854,139, ,115, ,559, ,464,288 17,689, ,791,043 The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 20

23 21 MANULIFE GLOBAL FUND STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Net assets at the beginning of the year 15,827,633 41,807,458 12,343, ,145, ,491,735 41,260,672 Net investment income/(deficit) 97,147 (165,473) 12,213 (1,046,381) (4,936,108) 208,829 Net profits/(losses) realised on: sale of investments and options (Note 2.2) 369,730 (1,587,671) 438,793 12,571,964 29,462,716 2,528,690 foreign currency (Note 2.4) (640) 160 2,346 (16,382) 159,574 (79,213) forward foreign exchange contracts (Note 2.6) 1, (758) futures contracts (Note 2.5) Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) (374,196) 745,137 2,935,830 11,057,882 19,028,530 7,725,403 forward foreign exchange contracts (Note 2.6) 182 futures contracts (Note 2.5) 93,640 (1,007,580) 3,389,182 22,567,083 43,714,712 10,382,951 Amounts received on subscription of shares 3,770,333 22,479,031 6,078,898 88,106,194 89,276,604 49,667,961 Amounts paid on redemption of shares (4,208,633) (24,743,598) (4,471,995) (124,265,412) (76,651,108) (37,540,227) Dividends paid during the year (Note 5) (66,818) (26,418) (50,635) (123,467) Net assets at the end of the year 15,416,155 38,508,893 17,288, ,553, ,831,943 63,647,890 The Notes to the Financial Statements form an integral part of these financial statements.

24 STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund Net assets at the beginning of the year 52,040,783 91,495,101 47,569,231 28,851,474 33,356, ,493,811 Net investment income/(deficit) 272,836 1,860,988 1,203, ,656 12,864 4,421,618 Net profits/(losses) realised on: sale of investments and options (Note 2.2) (650,248) 3,606,886 (532,933) 2,995,087 (3,771,525) 456,904 foreign currency (Note 2.4) (27,804) (70,006) 14,307 5,871 (61,841) (1,484) forward foreign exchange contracts (Note 2.6) (1,165) (586,010) 704 (41) futures contracts (Note 2.5) 151,186 Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) 4,987,282 9,813,041 44,012 2,841,826 7,779,046 (1,595,604) forward foreign exchange contracts (Note 2.6) (6,093) futures contracts (Note 2.5) (9,131) 4,580,901 15,210, ,510 6,015,440 3,959,248 3,281,393 Amounts received on subscription of shares 15,925,990 48,773,112 4,111,851 30,959,582 26,558,593 40,307,392 Amounts paid on redemption of shares (20,117,189) (59,181,602) (8,843,484) (35,115,608) (27,955,944) (89,718,415) Dividends paid during the year (Note 5) (52,677) (2,108,965) (1,259,276) (254,687) (228,626) (4,739,714) Net assets at the end of the year 52,377,808 94,188,555 41,856,832 30,456,201 35,689, ,624,467 The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 22

25 86,074,888 8,379,924 3,579,384, MANULIFE GLOBAL FUND STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Combined for the year ended 30 June ,074,888 8,379,924 3,579,384,889 Net assets at the beginning of the year 25,158,388 70,965,291 8,318,908 3,229,382,671 Net investment income/(deficit) (272,522) 86,074,888 3,203,598 (70,705) 3,579,384,889 14,969,247 Net profits/(losses) realised on: sale of investments and options (Note 2.2) 3,426,310 (1,475,219) (25,377) 146,866,082 foreign currency (Note 2.4) (469) (603) (95) (2,120,053) forward foreign exchange contracts (Note 2.6) (819,251) futures contracts (Note 2.5) 91,659 Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) 4,138,900 5,557,503 (86,227) 397,165,245 forward foreign exchange contracts (Note 2.6) 13,725 futures contracts (Note 2.5) 298,927 86,074,888 8,379,924 3,579,384,889 7,292,219 7,285,279 (182,404) 556,465,581 Amounts received on subscription of shares 17,515,439 86,074,888 24,708,916 2,494,412 3,579,384, ,828,957 Amounts paid on redemption of shares (15,761,092) (30,817,592) (2,292,793) (1,200,732,319) Dividends paid during the year (Note 5) (3,521,081) (1,452) (29,281,606) 86,074,888 8,379,924 3,579,384,889 Net assets at the end of the year 34,204,954 68,620,813 8,336,671 3,495,663,284 The Notes to the Financial Statements form an integral part of these financial statements.

26 STATEMENT OF CHANGES IN NET ASSETS for the year ended 30 June 2016 (expressed in United States Dollars) American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund Net assets at the beginning of the year 224,906,656 92,329,556 19,190, ,064, ,388,275 Net investment income/(deficit) (1,303,457) 42,847 3,149, , , ,093 Net profits/(losses) realised on: sale of investments and options (Note 2.2) 8,106, ,836 (840,095) 674,924 (10,573,091) (62,658,311) foreign currency (Note 2.4) 4,244 (93,443) (176,856) (11,973) (1,005,809) (3,126,443) forward foreign exchange contracts (Note 2.6) , (1,008,905) (3,068,181) futures contracts (Note 2.5) 154,521 Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) (11,253,555) 964,805 2,276,711 (4,663,902) (1,839,400) (22,163,763) forward foreign exchange contracts (Note 2.6) (243,025) 22,872 futures contracts (Note 2.5) (328,527) (4,446,716) 1,143,124 4,193,160 (3,684,983) (14,089,232) (90,397,733) Amounts received on subscription of shares 106,611,159 5,000,000 18,150,202 4,655,292 61,124,676 61,523,161 Amounts paid on redemption of shares (92,896,833) (17,638,382) (4,973,699) (41,477,948) (92,266,688) Dividends paid during the year (Note 5) (720) (3,502,384) (31,678) (554,789) (4,757,556) Net assets at the end of the year 234,173,546 6,143,124 93,532,152 15,155, ,067, ,489,459 The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 24

27 25 MANULIFE GLOBAL FUND STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Net assets at the beginning of the year 1,130,218, ,927, ,665,571 97,738,458 22,162,014 18,030,246 Net investment income/(deficit) 4,737,924 1,685,792 2,135,770 1,731,816 54,073 1,035,936 Net profits/(losses) realised on: sale of investments and options (Note 2.2) (1,996,316) (15,649,346) (3,880,078) (8,085,204) (389,437) 1,767,716 foreign currency (Note 2.4) (103,195) 5,928 (291,867) (53,839) 4,521 (65,020) forward foreign exchange contracts (Note 2.6) (1,276) (106) (71,557) (166,908) futures contracts (Note 2.5) Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) (301,798,480) (19,155,014) (5,763,068) (6,825,162) (755,872) 2,244,738 forward foreign exchange contracts (Note 2.6) 6,256 32,776 futures contracts (Note 2.5) (299,161,343) (33,112,746) (7,799,243) (13,232,389) (1,152,016) 4,849,238 Amounts received on subscription of shares 120,828, ,815,388 17,116,964 67,399,838 2,998, ,622,973 Amounts paid on redemption of shares (179,928,997) (69,573,559) (18,300,259) (48,613,985) (5,494,596) (12,274,941) Dividends paid during the year (Note 5) (6,728,383) (1,276,354) (2,231,480) (756,409) (35,622) (4,797) Net assets at the end of the year 765,228, ,779,796 98,451, ,535,513 18,478, ,222,719 The Notes to the Financial Statements form an integral part of these financial statements.

28 STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Net assets at the beginning of the year 16,782,087 33,715,806 18,708, ,710, ,832,959 38,784,532 Net investment income/(deficit) 65,449 24,980 26,117 (1,046,103) (3,111,553) 100,067 Net profits/(losses) realised on: sale of investments and options (Note 2.2) 709,178 (1,131,651) (1,467,888) 8,818,118 4,225,101 (2,306,377) foreign currency (Note 2.4) (3,184) (1,934) (7,981) 17,150 (423,095) 15,550 forward foreign exchange contracts (Note 2.6) (30) 286 (26) 14 futures contracts (Note 2.5) Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) (177,422) 3,140,138 (1,966,785) (35,989,129) (6,396,343) (1,491,155) forward foreign exchange contracts (Note 2.6) (182) futures contracts (Note 2.5) 593,991 2,031,637 (3,416,537) (28,199,990) (5,705,890) (3,681,901) Amounts received on subscription of shares 2,803,757 20,114,006 2,228, ,340,156 55,431,889 40,235,579 Amounts paid on redemption of shares (4,338,519) (14,053,991) (4,988,186) (98,704,393) (60,059,519) (33,994,935) Dividends paid during the year (Note 5) (13,683) (189,017) (378) (7,704) (82,603) Net assets at the end of the year 15,827,633 41,807,458 12,343, ,145, ,491,735 41,260,672 The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 26

29 27 MANULIFE GLOBAL FUND STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund Net assets at the beginning of the year 59,999, ,753,093 57,497,856 32,315,901 40,801, ,976,549 Net investment income/(deficit) 28,145 2,015,284 1,422, , ,878 4,567,275 Net profits/(losses) realised on: sale of investments and options (Note 2.2) (10,584,450) (6,923,211) (1,398,891) (1,176,148) (4,208,541) (1,597,251) foreign currency (Note 2.4) (41,502) (160,086) (11,374) (87,773) 500 (727) forward foreign exchange contracts (Note 2.6) (948) 734,033 futures contracts (Note 2.5) (109,876) Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) 5,172,843 4,733,018 1,252,367 (141,857) (1,301,717) 3,479,564 forward foreign exchange contracts (Note 2.6) (811,710) futures contracts (Note 2.5) (5,425,912) (334,995) 1,077,014 (1,162,906) (5,374,880) 6,448,861 Amounts received on subscription of shares 16,396,585 29,222,415 6,163,315 19,893,734 15,315, ,462,309 Amounts paid on redemption of shares (18,901,444) (36,870,491) (15,444,935) (22,057,765) (17,385,317) (71,824,182) Dividends paid during the year (Note 5) (27,776) (2,274,921) (1,724,019) (137,490) (4,569,726) Net assets at the end of the year 52,040,783 91,495,101 47,569,231 28,851,474 33,356, ,493,811 The Notes to the Financial Statements form an integral part of these financial statements.

30 86,074,888 8,379,924 3,579,384,889 STATEMENT OF CHANGES IN NET ASSETS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Combined for the year ended 30 June ,074,888 8,379,924 3,579,384,889 Net assets at the beginning of the year 28,430,619 86,074,888 8,379,924 3,579,384,889 Net investment income/(deficit) (210,916) 86,074,888 3,601,256 (55,702) 3,579,384,889 22,324,579 Net profits/(losses) realised on: sale of investments and options (Note 2.2) 284,973 (5,823,313) (64,823) (115,939,524) foreign currency (Note 2.4) 244 (244) (19) (5,618,227) forward foreign exchange contracts (Note 2.6) (3,382,424) futures contracts (Note 2.5) 44,645 Net change in unrealised appreciation/(depreciation) on: investments and options (Note 2.2) (1,201,463) 1,315, ,322 (398,012,747) forward foreign exchange contracts (Note 2.6) (993,013) futures contracts (Note 2.5) (328,527) 86,074,888 8,379,924 3,579,384,889 (1,127,162) (906,467) 170,778 (501,905,238) Amounts received on subscription of shares 4,961,684 86,074,888 28,856,423 1,995,196 3,579,384,889 1,215,267,369 Amounts paid on redemption of shares (7,105,218) (38,629,278) (2,226,990) (1,030,025,050) Dividends paid during the year (Note 5) (1,535) (4,430,275) (33,339,299) 86,074,888 8,379,924 3,579,384,889 Net assets at the end of the year 25,158,388 70,965,291 8,318,908 3,229,382,671 The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 28

31 29 MANULIFE GLOBAL FUND American Growth Fund STATEMENT OF CHANGES IN SHARES for the year ended 30 June 2017 ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund China Value Fund Shares outstanding as at 30 June 2016 Class A 7,316,629 37,563, ,581,391 Class AA 6,642,109 73,527 9,556,625 3,778,917 77,523,066 7,614,528 Class AA (HKD) 29,580 4, ,595 Class AA (HKD) Inc 6,967 Class AA Inc 11,728, ,012 Class I 5,856,714 5,000,000 29,501,724 5,559, ,771,419 Class I2 Class I3 1,467, ,552 Class J 49,167,079 Class S Class S Hedged Class T Total subscriptions Class A 1,378,516 6,104,010 12,069,076 Class AA 12,424,796 1,466,934 3,200,319 1,575,084 14,693, ,796 Class AA (HKD) 294, , ,928 Class AA (HKD) Inc 2,413,615 Class AA Inc 12,583, ,354 Class I 5,788,386 39,812 2,058,011 7,399,410 9,933,549 Class I2 Class I3 38,843, ,201 4,496,983 Class J 5,563,761 Class S Class S Hedged Class T Total redemptions Class A 1,961,672 7,111,767 22,751,513 Class AA 12,443, ,840 4,099,437 1,095,240 24,740,322 1,593,701 Class AA (HKD) 238, , ,503 Class AA (HKD) Inc 477,742 Class AA Inc 8,092, ,774 Class I 2,547,488 4,988,673 12,185,606 37,366,863 Class I2 Class I3 890, ,318 2,336,610 Class J 6,899,004 Class S Class S Hedged Class T Shares outstanding as at 30 June 2017 Class A 6,733,473 36,555,649 93,898,954 Class AA 6,623, ,621 8,657,507 4,258,761 67,476,529 6,429,623 Class AA (HKD) 85,626 35, ,020 Class AA (HKD) Inc 1,942,840 Class AA Inc 16,219,117 1,076,592 Class I 9,097,612 5,039,812 26,571, ,473 95,338,105 Class I2 Class I3 39,421, ,435 2,160,373 Class J 47,831,836 Class S Class S Hedged Class T The Notes to the Financial Statements form an integral part of these financial statements.

32 STATEMENT OF CHANGES IN SHARES (continued) for the year ended 30 June 2017 MANULIFE GLOBAL FUND 30 Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Global Property Fund Global Resources Fund Shares outstanding as at 30 June 2016 Class A 87,803,222 31,127,597 10,019,570 24,770,314 Class AA 3,048,860 6,432,922 20,194,396 2,920,385 15,040,567 52,865,876 Class AA (HKD) 36,578,532 32,347 Class AA (HKD) Inc Class AA Inc Class I 3,572,835 Class I2 51,342 Class I3 1,181, , , ,400 Class J Class S 1,196 Class S Hedged Class T Total subscriptions Class A 33,171,992 3,603,840 1,710,697 3,565,908 Class AA 7,405,488 1,615, ,718 2,279,922 4,282,019 3,642,365 27,804,721 Class AA (HKD) 10,428,790 7,429 14,921 Class AA (HKD) Inc Class AA Inc Class I 165,800 Class I2 595 Class I3 4,046, ,719 2,915 2,060 Class J Class S 13,103 Class S Hedged Class T Total redemptions Class A 39,099,998 6,218,023 2,737,644 3,937,853 Class AA 253, ,935 3,197,534 5,590,605 4,134,387 4,033,373 30,944,385 Class AA (HKD) 18,626,354 7,429 38,956 Class AA (HKD) Inc Class AA Inc Class I 2,842,826 Class I2 Class I3 2,004, , ,465 Class J Class S 4,927 Class S Hedged Class T Shares outstanding as at 30 June 2017 Class A 81,875,216 28,513,414 8,992,623 24,398,369 Class AA 7,152,409 3,769,710 4,126,106 16,883,713 3,068,017 14,649,559 49,726,212 Class AA (HKD) 28,380,968 8,312 Class AA (HKD) Inc Class AA Inc Class I 895,809 Class I2 51,937 Class I3 3,223, , ,995 Class J Class S 9,372 Class S Hedged Class T The Notes to the Financial Statements form an integral part of these financial statements.

33 31 MANULIFE GLOBAL FUND STATEMENT OF CHANGES IN SHARES (continued) for the year ended 30 June 2017 Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Strategic Income Fund Shares outstanding as at 30 June 2016 Class A 12,054,744 Class AA 1,855, ,697, ,014,724 2,697,596 65,349, ,496,411 29,016,502 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class I 5,520,136 Class I2 10,931,666 1,446,748 Class I3 982,227 Class J Class S Class S Hedged 21,954,109 Class T Total subscriptions Class A 7,215,170 Class AA 5,691,217 47,690,111 54,982,683 6,126,454 19,056,252 97,604,667 2,704,498 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class I 122,587 Class I2 5,571, ,728 Class I3 18,005,372 Class J Class S Class S Hedged 913,198 Class T Total redemptions Class A 8,218,664 Class AA 4,337,418 67,454,779 41,558,834 1,949,981 24,055, ,614,840 3,576,024 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class I 65,604 Class I2 13,615, ,572 Class I3 6,371,460 Class J Class S Class S Hedged 7,318,045 Class T Shares outstanding as at 30 June 2017 Class A 11,051,250 Class AA 3,209, ,932, ,438,573 6,874,069 60,350, ,486,238 28,144,976 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class I 5,577,119 Class I2 2,887,362 1,800,904 Class I3 12,616,139 Class J Class S Class S Hedged 15,549,262 Class T The Notes to the Financial Statements form an integral part of these financial statements.

34 MANULIFE GLOBAL FUND 32 STATEMENT OF CHANGES IN SHARES (continued) for the year ended 30 June 2017 Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Shares outstanding as at 30 June 2016 Class A Class AA 17,414,956 48,722, ,439,037 22,041,489 69,899,251 5,891,009 Class AA (HKD) 43,239 Class AA (HKD) Inc 149,629 Class AA Inc 483,312 11,151, ,914 Class I 54,010,360 1,001,710 Class I2 Class I3 4,928, , ,000 Class J Class S Class S Hedged Class T 545,805 Total subscriptions Class A Class AA 16,670,115 42,413,755 27,997,533 12,873,101 23,800,902 1,681,834 Class AA (HKD) 303,586 7,441 Class AA (HKD) Inc 312,092 28,910 Class AA Inc 63,941 1,349, ,083 Class I 1,440,251 2,274,689 Class I2 Class I3 4,414, ,055 9,990 Class J Class S Class S Hedged Class T 12,632 Total redemptions Class A Class AA 18,908,067 43,349,522 36,710,821 11,500,111 30,209,927 1,697,372 Class AA (HKD) 327,020 7,441 Class AA (HKD) Inc 267,652 28,910 Class AA Inc 132, ,617 72,571 Class I 39,477,961 3,276,399 Class I2 Class I3 3,550, ,090 25,310 Class J Class S Class S Hedged Class T 190,051 Shares outstanding as at 30 June 2017 Class A Class AA 15,177,004 47,786, ,725,749 23,414,479 63,490,226 5,875,471 Class AA (HKD) 19,805 Class AA (HKD) Inc 194,069 Class AA Inc 414,431 12,006, ,426 Class I 15,972,650 Class I2 Class I3 5,793, ,680 Class J Class S Class S Hedged Class T 368,386 The Notes to the Financial Statements form an integral part of these financial statements.

35 33 MANULIFE GLOBAL FUND American Growth Fund STATEMENT OF CHANGES IN SHARES for the year ended 30 June 2016 ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund China Value Fund Shares outstanding as at 30 June 2015 Class A 6,888,537 24,451, ,168,827 Class AA 3,171, ,500 9,952,857 7,125,242 80,376,809 8,640,678 Class AA (HKD) 1, ,705 Class AA (HKD) Inc 55,363 Class AA Inc 11,986, ,958 Class HA 50,000 53,366 50,027 50,123 Class HC 50,000 52,660 50,000 50,000 Class HI 50,000 53,992 50, ,714 Class I 8,068,798 35,052,756 16,027, ,253,663 Class I2 Class I3 619, ,900 Class J 42,414,799 Class S Class S Hedged Class T Total subscriptions Class A 2,074,892 18,314,010 15,222,934 Class AA 17,097,032 25,995 2,826,423 1,896,618 19,526, ,510 Class AA (HKD) 34,596 4, ,520 Class AA (HKD) Inc 272 Class AA Inc 3,234, ,130 Class HA 1, Class HC 910 Class HI 1, Class I 11,533,572 5,000,000 5,172,502 9,784,912 15,984,923 Class I2 Class I3 2,175, , ,885 Class J 9,406,393 Class S Class S Hedged Class T Total redemptions Class A 1,646,800 5,202,316 22,810,370 Class AA 13,626,248 80,968 3,222,655 5,242,943 22,380,401 1,762,660 Class AA (HKD) 6,886 84,630 Class AA (HKD) Inc 48,668 Class AA Inc 3,492,644 16,076 Class HA 50,000 54,447 50,153 50,215 Class HC 50,000 53,570 50,000 50,000 Class HI 50,000 55,229 50, ,714 Class I 13,745,656 10,723,534 20,252,877 36,467,167 Class I2 Class I3 1,326, ,785 Class J 2,654,113 Class S Class S Hedged Class T Shares outstanding as at 30 June 2016 Class A 7,316,629 37,563, ,581,391 Class AA 6,642,109 73,527 9,556,625 3,778,917 77,523,066 7,614,528 Class AA (HKD) 29,580 4, ,595 Class AA (HKD) Inc 6,967 Class AA Inc 11,728, ,012 Class HA Class HC Class HI Class I 5,856,714 5,000,000 29,501,724 5,559, ,771,419 Class I2 Class I3 1,467, ,552 Class J 49,167,079 Class S Class S Hedged Class T The Notes to the Financial Statements form an integral part of these financial statements.

36 STATEMENT OF CHANGES IN SHARES (continued) for the year ended 30 June 2016 MANULIFE GLOBAL FUND 34 Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Global Property Fund Global Resources Fund Shares outstanding as at 30 June 2015 Class A 45,553,691 31,554,087 7,841,983 2,728,294 Class AA 3,175,020 7,731,749 22,466,028 4,450,975 16,789,166 43,700,128 Class AA (HKD) 35,793,624 24,155 Class AA (HKD) Inc Class AA Inc Class HA 50,000 Class HC 50,000 Class HI 50,057 Class I 4,718,603 Class I2 50,000 Class I3 415, ,790 Class J Class S 1,149 Class S Hedged Class T Total subscriptions Class A 72,028,098 3,897,733 4,260,147 23,870,506 Class AA 4,057,723 12,784,685 2,736,031 2,472,877 2,674,241 29,555,929 Class AA (HKD) 14,354,931 8,192 Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI 175 Class I 15,855,849 Class I2 1,342 Class I3 2,656, , , ,400 Class J Class S 47 Class S Hedged Class T Total redemptions Class A 29,778,567 4,324,223 2,082,560 1,828,486 Class AA 4,183,883 14,083,512 5,007,663 4,003,467 4,422,840 20,390,181 Class AA (HKD) 13,570,023 Class AA (HKD) Inc Class AA Inc Class HA 50,000 Class HC 50,000 Class HI 50,232 Class I 17,001,617 Class I2 Class I3 1,890, ,790 Class J Class S Class S Hedged Class T Shares outstanding as at 30 June 2016 Class A 87,803,222 31,127,597 10,019,570 24,770,314 Class AA 3,048,860 6,432,922 20,194,396 2,920,385 15,040,567 52,865,876 Class AA (HKD) 36,578,532 32,347 Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I 3,572,835 Class I2 51,342 Class I3 1,181, , , ,400 Class J Class S 1,196 Class S Hedged Class T The Notes to the Financial Statements form an integral part of these financial statements.

37 35 MANULIFE GLOBAL FUND STATEMENT OF CHANGES IN SHARES (continued) for the year ended 30 June 2016 Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Strategic Income Fund Shares outstanding as at 30 June 2015 Class A 9,790,905 Class AA 2,496, ,944, ,163,881 4,131,004 69,129, ,397,713 29,295,254 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA 53,753 Class HC 53,042 Class HI 54,394 Class I 6,351,712 Class I2 11,893,449 1,020,129 Class I3 700, , ,039 Class J Class S Class S Hedged 35,991,913 Class T Total subscriptions Class A 9,229,102 Class AA 1,822,182 76,821,688 35,805,495 10,547,089 22,304,636 71,640,901 3,632,979 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA 1,135 Class HC 961 Class HI 1,285 Class I 205,837 Class I2 8,211, ,851 Class I3 134, ,400 1,369,311 Class J Class S Class S Hedged 2,552,028 Class T Total redemptions Class A 6,965,263 Class AA 2,463,177 53,068,890 38,954,652 11,980,497 26,085,175 89,542,203 3,911,731 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA 54,888 Class HC 54,003 Class HI 55,679 Class I 1,037,413 Class I2 9,173, ,232 Class I3 834, , ,123 Class J Class S Class S Hedged 16,589,832 Class T Shares outstanding as at 30 June 2016 Class A 12,054,744 Class AA 1,855, ,697, ,014,724 2,697,596 65,349, ,496,411 29,016,502 Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I 5,520,136 Class I2 10,931,666 1,446,748 Class I3 982,227 Class J Class S Class S Hedged 21,954,109 Class T The Notes to the Financial Statements form an integral part of these financial statements.

38 STATEMENT OF CHANGES IN SHARES (continued) for the year ended 30 June 2016 MANULIFE GLOBAL FUND 36 Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Shares outstanding as at 30 June 2015 Class A Class AA 18,809,293 51,547, ,027,842 23,304,506 76,064,369 6,530,561 Class AA (HKD) 9,779 Class AA (HKD) Inc 93,651 Class AA Inc 1,934,170 11,816,677 Class HA 54,711 50,000 Class HC 53,985 50,000 Class HI 55,357 50,000 Class I 13,581,746 5,451,939 Class I2 Class I3 1,550, ,340 Class J Class S Class S Hedged Class T 546,639 Total subscriptions Class A Class AA 12,810,376 22,057,042 46,412,519 4,133,835 24,799,059 1,114,918 Class AA (HKD) 72,911 Class AA (HKD) Inc 55,978 Class AA Inc 1,146,056 1,317, ,914 Class HA 905 Class HC 732 Class HI 1,058 Class I 57,227,618 6,870,229 Class I2 Class I3 3,378, , , ,000 Class J Class S Class S Hedged Class T 65,512 Total redemptions Class A Class AA 14,204,713 24,882,157 44,001,324 5,396,852 30,964,177 1,754,470 Class AA (HKD) 39,451 Class AA (HKD) Inc Class AA Inc 2,596,914 1,982,575 Class HA 55,616 50,000 Class HC 54,717 50,000 Class HI 56,415 50,000 Class I 16,799,004 11,320,458 Class I2 Class I3 1,052,887 Class J Class S Class S Hedged Class T 66,346 Shares outstanding as at 30 June 2016 Class A Class AA 17,414,956 48,722, ,439,037 22,041,489 69,899,251 5,891,009 Class AA (HKD) 43,239 Class AA (HKD) Inc 149,629 Class AA Inc 483,312 11,151, ,914 Class HA Class HC Class HI Class I 54,010,360 1,001,710 Class I2 Class I3 4,928, , ,000 Class J Class S Class S Hedged Class T 545,805 The Notes to the Financial Statements form an integral part of these financial statements.

39 37 MANULIFE GLOBAL FUND Income STATEMENT OF OPERATIONS for the year ended 30 June 2017 (expressed in United States Dollars) American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund Dividends (Note 2.3) 3,633, , ,911 2,528,538 6,028,992 Bond interest (Note 2.3) 4,112,990 Deposit interest (Note 2.3) 21 1, Other income 129,136 Expenses 3,633, ,777 4,114, ,911 2,658,198 6,029,722 Management fees (Note 3.1) 3,836,594 62, , ,802 1,829,490 4,279,589 Administration fees (Note 3.3) 238,033 23, ,133 41, , ,874 Depositary fees (Note 3.3) 49,526 16,626 38,282 43,958 73, ,785 Taxation (Note 4) 130, ,186 7,935 60,377 88,802 Printing and publishing expenses 14, ,606 1,026 5,225 12,170 Legal and other professional fees 37, ,885 8,856 39,985 89,323 Audit fees 37, ,223 1,965 14,901 27,606 Directors fees and expenses 1 4, , ,954 5,048 Amortisation of formation expenses (Note 2.9) Bank charges ,041 9,884 Other expenses 7,631 2,082 2,741 2,353 5,113 17,305 4,355, , , ,106 2,177,485 4,983,722 Net investment income/(deficit) (721,554) 67,500 3,152, , ,713 1,046,000 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

40 STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Income Dividends (Note 2.3) 16,468,826 3,770,036 3,386,954 2,946, ,624 2,806,889 Bond interest (Note 2.3) Deposit interest (Note 2.3) Other income ,012 1,809 12,450 Expenses 16,468,828 3,770,036 3,387,839 2,956, ,435 2,819,369 MANULIFE GLOBAL FUND 38 Management fees (Note 3.1) 12,335,043 3,262,624 1,569,541 1,522, ,682 1,856,708 Administration fees (Note 3.3) 689, , , ,953 55, ,978 Depositary fees (Note 3.3) 271,095 36, ,458 33,729 18,716 19,538 Taxation (Note 4) 413, ,432 52,539 50,483 8,990 62,698 Printing and publishing expenses 32,986 8,779 4,549 4,520 1,117 10,706 Legal and other professional fees 121,198 26,369 21,526 26,863 7,715 15,596 Audit fees 65,877 29,974 26,111 25,707 5,936 21,086 Directors fees and expenses 1 13,370 3,255 1,666 1, ,819 Amortisation of formation expenses (Note 2.9) 3,099 Bank charges 2, ,912 10, ,188 Other expenses 36,307 18,065 24,903 5,434 2,226 3,710 13,981,462 3,680,052 2,074,115 1,808, ,764 2,097,027 Net investment income/(deficit) 2,487,366 89,984 1,313,724 1,148,009 46, ,342 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

41 39 MANULIFE GLOBAL FUND Income STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Dividends (Note 2.3) 449, , ,729 4,812,383 2,513,245 1,013,859 Bond interest (Note 2.3) Deposit interest (Note 2.3) 4 9 Other income 1,525 4,468 30,058 Expenses 451, , ,729 4,842,441 2,513,245 1,013,859 Management fees (Note 3.1) 268, , ,736 5,357,505 3,433, ,463 Administration fees (Note 3.3) 54,392 66,606 37, , ,012 90,897 Depositary fees (Note 3.3) 11,859 9,789 17,276 28, ,980 22,345 Taxation (Note 4) 7,661 21,252 2, ,750 3,355,351 23,160 Printing and publishing expenses 1,006 2, ,390 8,515 2,848 Legal and other professional fees 6,186 6,223 8,032 71, ,886 6,463 Audit fees 3,697 6,721 1,916 46,460 19,432 7,552 Directors fees and expenses ,018 3, Amortisation of formation expenses (Note 2.9) 7,637 Bank charges , Other expenses 562 1,352 1,028 8,200 4,938 1, , , ,516 5,888,822 7,449, ,030 Net investment income/(deficit) 97,147 (165,473) 12,213 (1,046,381) (4,936,108) 208,829 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

42 STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund Income Dividends (Note 2.3) 1,339,052 4,209, , , ,388 66,505 Bond interest (Note 2.3) 1,741,966 6,513,119 Deposit interest (Note 2.3) Other income Expenses 1,339,052 4,209,287 1,877, , ,388 6,579,628 MANULIFE GLOBAL FUND 40 Management fees (Note 3.1) 903,055 1,822, , , ,822 1,816,716 Administration fees (Note 3.3) 65, ,295 65,928 44, , ,972 Depositary fees (Note 3.3) 52, ,685 21,755 32,095 37,313 35,543 Taxation (Note 4) 25,424 52,314 22,219 15,435 16,603 66,466 Printing and publishing expenses 2,435 4,543 2,119 1,594 1,712 7,437 Legal and other professional fees 7,367 21,177 7,600 10,408 4,952 22,187 Audit fees 5,065 22,011 4,314 3,140 6,199 17,522 Directors fees and expenses , ,587 Amortisation of formation expenses (Note 2.9) 899 Bank charges 55 1, Other expenses 4,419 98,194 5, ,428 4,337 1,066,216 2,348, , , ,524 2,158,010 Net investment income/(deficit) 272,836 1,860,988 1,203, ,656 12,864 4,421,618 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

43 41 MANULIFE GLOBAL FUND Income STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2017 (expressed in United States Dollars) U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Combined for the year ended 30 June 2017 Dividends (Note 2.3) 363, ,832 60,330,350 Bond interest (Note 2.3) 4,210,920 89,258 16,668,253 Deposit interest (Note 2.3) 3,126 Other income 190,343 Expenses 363,786 4,321,752 89,258 77,192,072 Management fees (Note 3.1) 554, ,032 97,923 50,286,379 Administration fees (Note 3.3) 41, ,989 46,331 3,672,724 Depositary fees (Note 3.3) 12,999 15,810 7,334 1,722,077 Taxation (Note 4) 16,548 37,265 3,886 4,859,101 Printing and publishing expenses 1,713 3, ,865 Legal and other professional fees 4,236 10,341 1, ,925 Audit fees 3,412 11,439 1, ,845 Directors fees and expenses , ,500 Amortisation of formation expenses (Note 2.9) ,023 Bank charges 34 33,946 Other expenses 782 2, , ,308 1,118, ,963 62,222,825 Net investment income/(deficit) (272,522) 3,203,598 (70,705) 14,969,247 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

44 STATEMENT OF OPERATIONS for the year ended 30 June 2016 (expressed in United States Dollars) American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund Income Dividends (Note 2.3) 2,589, , ,569 2,228,048 6,193,605 Bond interest (Note 2.3) 4,037,656 Deposit interest (Note 2.3) 1, Other income Expenses 2,589, ,308 4,039, ,911 2,228,583 6,194,515 MANULIFE GLOBAL FUND 42 Management fees (Note 3.1) 3,435,659 40, , ,840 1,487,966 4,767,248 Administration fees (Note 3.3) 203,486 16, ,094 40, , ,812 Depositary fees (Note 3.3) 31,643 9,221 31,989 42, , ,088 Taxation (Note 4) 109, ,037 7,972 57,104 27,877 Printing and publishing expenses 22, ,421 2,130 9,921 38,239 Legal and other professional fees 41, ,545 9,335 66, ,753 Audit fees 35, ,929 2,682 16,242 48,932 Directors fees and expenses 1 3, , ,564 5,409 Amortisation of formation expenses (Note 2.9) 1, , ,833 Bank charges , ,512 6,631 Other expenses 7, ,068 5,059 13,597 54,600 3,893,082 69, , ,365 1,890,610 5,598,422 Net investment income/(deficit) (1,303,457) 42,847 3,149, , , ,093 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

45 43 MANULIFE GLOBAL FUND Income STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Dividends (Note 2.3) 19,462,215 4,406,330 4,118,161 3,508, ,253 2,055,809 Bond interest (Note 2.3) Deposit interest (Note 2.3) Other income , ,059 Expenses 19,462,458 4,406,561 4,118,392 3,510, ,137 2,058,999 Management fees (Note 3.1) 12,919,357 2,395,052 1,471,654 1,471, , ,067 Administration fees (Note 3.3) 658, , , ,207 62,647 68,082 Depositary fees (Note 3.3) 225,366 27, ,485 30,992 21,260 15,976 Taxation (Note 4) 419,256 79,795 48,293 46,881 9,378 33,017 Printing and publishing expenses 98,702 11,577 9,637 9, Legal and other professional fees 198,464 25,341 31,094 18,456 8,844 8,002 Audit fees 110,681 28,691 32,664 74,116 14,074 16,759 Directors fees and expenses 1 13,792 2,272 1,523 1, Amortisation of formation expenses (Note 2.9) 1,370 1,879 Bank charges , Other expenses 78,716 8,951 20,594 4,457 6,000 2,195 14,724,534 2,720,769 1,982,622 1,778, ,064 1,023,063 Net investment income/(deficit) 4,737,924 1,685,792 2,135,770 1,731,816 54,073 1,035,936 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

46 STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Income Dividends (Note 2.3) 421, , ,224 4,851,932 2,012, ,569 Bond interest (Note 2.3) Deposit interest (Note 2.3) Other income , ,949 Expenses 422, , ,455 4,852,170 2,012, ,518 MANULIFE GLOBAL FUND 44 Management fees (Note 3.1) 273, , ,571 5,389,231 3,139, ,706 Administration fees (Note 3.3) 53,143 54,545 38, , ,853 79,447 Depositary fees (Note 3.3) 7,297 7,395 16,999 25, ,738 44,615 Taxation (Note 4) 7,760 16,343 2, ,234 1,361,367 19,693 Printing and publishing expenses 2,862 2,955 1,726 23,594 18, Legal and other professional fees 6,736 6,359 8,359 52, ,783 7,878 Audit fees 4,133 11,238 2,517 43,541 25,906 8,347 Directors fees and expenses ,667 2, Amortisation of formation expenses (Note 2.9) 12,491 Bank charges ,903 Other expenses 1,247 1,954 1,676 12,262 10,185 1, , , ,338 5,898,273 5,123, ,451 Net investment income/(deficit) 65,449 24,980 26,117 (1,046,103) (3,111,553) 100,067 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

47 45 MANULIFE GLOBAL FUND Income STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund Dividends (Note 2.3) 1,055,841 4,071, , , ,355 83,683 Bond interest (Note 2.3) 2,042,163 6,927,872 Deposit interest (Note 2.3) Other income Expenses 1,056,072 4,071,813 2,202, , ,586 7,011,811 Management fees (Note 3.1) 856,762 1,549, , , ,155 2,067,571 Administration fees (Note 3.3) 65, ,276 82,534 40, , ,369 Depositary fees (Note 3.3) 48, ,790 22,077 35,054 34,895 34,304 Taxation (Note 4) 23,884 43,975 24,104 14,007 16,909 68,836 Printing and publishing expenses 4,550 9,747 9,638 14,536 18,449 14,795 Legal and other professional fees 11,412 28,642 11,738 11,398 7,900 29,934 Audit fees 10,480 28,532 7,783 6,439 4,773 23,532 Directors fees and expenses , ,405 Amortisation of formation expenses (Note 2.9) 2, Bank charges , Other expenses 5,524 43,171 6,336 1,557 4,419 5,654 1,027,927 2,056, , , ,708 2,444,536 Net investment income/(deficit) 28,145 2,015,284 1,422, , ,878 4,567,275 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

48 STATEMENT OF OPERATIONS (continued) for the year ended 30 June 2016 (expressed in United States Dollars) U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Combined for the year ended 30 June 2016 Income Dividends (Note 2.3) 323, ,555 62,592,202 Bond interest (Note 2.3) 4,515,863 96,124 17,619,678 Deposit interest (Note 2.3) 1 3,617 Other income 231 4, ,205 Expenses 323,325 4,723,468 96,355 80,337,702 MANULIFE GLOBAL FUND 46 Management fees (Note 3.1) 441, ,533 96,669 47,925,247 Administration fees (Note 3.3) 47, ,473 41,133 3,459,054 Depositary fees (Note 3.3) 16,552 16,913 4,499 1,700,268 Taxation (Note 4) 12,363 34,589 3,921 2,655,276 Printing and publishing expenses 2,887 1, ,535 Legal and other professional fees 5,906 16,109 2, ,038 Audit fees 4,594 16,090 1, ,510 Directors fees and expenses , ,449 Amortisation of formation expenses (Note 2.9) 1, ,870 Bank charges 27,201 Other expenses 1,350 3,342 1, , ,241 1,122, ,057 58,013,123 Net investment income/(deficit) (210,916) 3,601,256 (55,702) 22,324,579 1 Refer to note 3 of the unaudited supplementary information The Notes to the Financial Statements form an integral part of these financial statements.

49 47 MANULIFE GLOBAL FUND Class A Class AA STATISTICAL INFORMATION for the year ended 30 June 2017 (expressed in United States Dollars) American Growth Fund ASEAN Equity Fund Class AA (HKD) Class HA Class HC Class HI Class I Class I3 Class I 2017 Total Net Assets 242,628,872 13,491, ,201 16,299,755 48,724,325 6,616,731 Number of Shares in Issue 6,733,473 6,623,734 85,626 9,097,612 39,421,725 5,039,812 Net Asset Value per share * Total Net Assets 213,265,950 10,971,226 39,815 8,450,967 1,445,589 6,143,124 Number of Shares in Issue 7,316,629 6,642,109 29,580 5,856,714 1,467,845 5,000,000 Net Asset Value per share * Total Net Assets 206,729,561 5,406,817 2,556 71,254 70,665 72,126 11,934, ,858 Number of Shares in Issue 6,888,537 3,171,325 1,870 50,000 50,000 50,000 8,068, ,199 Net Asset Value per share * * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

50 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Class AA Class AA (HKD) Asia Total Return Fund Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I3 Class J 2017 Total Net Assets 628,388 48,262 2,482,496 15,313,279 29,691, ,404 47,861,096 Number of Shares in Issue 602,621 35,909 1,942,840 16,219,117 26,571, ,435 47,831,836 Net Asset Value per share * * Total Net Assets 74,172 6,167 9,002 11,230,076 32,802, ,983 48,819,844 Number of Shares in Issue 73,527 4,762 6,967 11,728,405 29,501, ,552 49,167,079 Net Asset Value per share * * Total Net Assets 127,687 70,956 11,334,974 50,108 49,417 50,723 38,984,697 41,660,995 Number of Shares in Issue 128,500 55,363 11,986,972 53,366 52,660 53,992 35,052,756 42,414,799 Net Asset Value per share * * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 48

51 49 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Asia Value Dividend Equity Fund Asian Equity Fund Class AA Class AA Inc Class A Class AA Class I Class I Total Net Assets 15,644,338 1,114, ,206,718 4,661, ,109 1,931,353 Number of Shares in Issue 8,657,507 1,076,592 36,555,649 4,258, ,473 2,160,373 Net Asset Value per share Total Net Assets 14,409, , ,679,274 3,482,689 5,905,678 Number of Shares in Issue 9,556, ,012 37,563,406 3,778,917 5,559,669 Net Asset Value per share Total Net Assets 18,456, ,815 83,537,158 7,833,086 20,306, ,572 Number of Shares in Issue 9,952, ,958 24,451,712 7,125,242 16,027, ,900 Net Asset Value per share The Notes to the Financial Statements form an integral part of these financial statements.

52 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Class AA Asian Small Cap Equity Fund Class AA (HKD) Class HA Class HC Class HI Class I 2017 Total Net Assets 144,194, , ,706,147 Number of Shares in Issue 67,476, ,020 95,338,105 Net Asset Value per share * Total Net Assets 145,620, , ,370,545 Number of Shares in Issue 77,523, , ,771,419 Net Asset Value per share * Total Net Assets 192,322, ,529 70,044 69,464 71, ,279,079 Number of Shares in Issue 80,376, ,705 50,027 50,000 50, ,253,663 Net Asset Value per share * * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 50

53 51 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) China Value Fund Class A Class AA Class HA Class HC Class HI 2017 Total Net Assets 836,204,290 17,935,180 Number of Shares in Issue 93,898,954 6,429,623 Net Asset Value per share Total Net Assets 748,163,198 17,064,876 Number of Shares in Issue 104,581,391 7,614,528 Net Asset Value per share Total Net Assets 1,102,769,712 26,606,731 75,419 74, ,007 Number of Shares in Issue 112,168,827 8,640,678 50,123 50, ,714 Net Asset Value per share The Notes to the Financial Statements form an integral part of these financial statements.

54 Class A STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Dragon Growth Fund Class AA Emerging Eastern Europe Fund European Growth Fund Class AA (HKD) Class A Class AA Class A Class AA Class I Class I Total Net Assets 182,047,552 8,570,077 39,497, ,711,832 5,847,268 99,009,663 3,273, ,519 3,282,179 Number of Shares in Issue 81,875,216 7,152,409 28,380,968 28,513,414 3,769,710 8,992,623 4,126, ,809 3,223,119 Net Asset Value per share * Total Net Assets 152,182,167 39,597,630 94,429,374 4,022,179 94,028,692 4,379,818 3,124,914 1,002,089 Number of Shares in Issue 87,803,222 36,578,532 31,127,597 3,048,860 10,019,570 6,432,922 3,572,835 1,181,018 Net Asset Value per share * Total Net Assets 103,945,990 50,981, ,121,041 4,544,530 86,354,842 6,159,168 4,818, ,503 Number of Shares in Issue 45,553,691 35,793,624 31,554,087 3,175,020 7,841,983 7,731,749 4,718, ,114 Net Asset Value per share * * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 52

55 53 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Global Contrarian Fund Class AA Class HA Class HC Class HI Class I2 Class I3 Class S 2017 Total Net Assets 17,618,964 63,198 7,646 Number of Shares in Issue 16,883,713 51,937 9,372 Net Asset Value per share ** 2016 Total Net Assets 18,115,898 53, , Number of Shares in Issue 20,194,396 51, ,981 1,196 Net Asset Value per share ** 2015 Total Net Assets 21,334,410 51,834 51,404 52,480 57, , Number of Shares in Issue 22,466,028 50,000 50,000 50,057 50, ,790 1,149 Net Asset Value per share ** ** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

56 Global Equity Fund Class A Class AA Class AA STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Class AA (HKD) Class I3 Class AA Class I3 Class AA Class I Class I Total Net Assets 127,125,578 3,665,465 15,229,163 10, ,659 38,367, ,067 3,655,034 13,633,437 Number of Shares in Issue 24,398,369 3,068,017 14,649,559 8, ,265 49,726, ,995 3,209,630 5,577,119 Net Asset Value per share * Total Net Assets 111,218,718 3,004,001 15,614,431 40, ,505 41,613, ,834 1,679,048 10,663,973 Number of Shares in Issue 24,770,314 2,920,385 15,040,567 32, ,400 52,865, ,400 1,855,831 5,520,136 Net Asset Value per share * Total Net Assets 13,117,249 4,912,996 16,752,887 29,200 33,715,806 2,817,049 15,204, ,073 Number of Shares in Issue 2,728,294 4,450,975 16,789,166 24,155 43,700,128 2,496,826 6,351, ,060 Net Asset Value per share * * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 54

57 55 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Healthcare Fund India Equity Fund Class AA Class I3 Class AA Class I Total Net Assets 299,553, ,367,850 3,464,093 Number of Shares in Issue 151,932, ,438,573 2,887,362 Net Asset Value per share Total Net Assets 313,145, ,931,013 10,560,722 Number of Shares in Issue 171,697, ,014,724 10,931,666 Net Asset Value per share Total Net Assets 294,997, , ,124,829 11,708,129 Number of Shares in Issue 147,944, , ,163,881 11,893,449 Net Asset Value per share The Notes to the Financial Statements form an integral part of these financial statements.

58 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Class A Class AA Class I3 Class AA Class AA 2017 Total Net Assets 42,509,229 6,723,568 14,415,093 52,377,808 94,188,555 Number of Shares in Issue 11,051,250 6,874,069 12,616,139 60,350, ,486,238 Net Asset Value per share Total Net Assets 38,154,132 2,195, ,329 52,040,783 91,495,101 Number of Shares in Issue 12,054,744 2,697, ,227 65,349, ,496,411 Net Asset Value per share Total Net Assets 34,568,619 3,751, ,807 59,999, ,753,093 Number of Shares in Issue 9,790,905 4,131, ,039 69,129, ,397,713 Net Asset Value per share The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 56

59 57 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Strategic Income Fund Class AA Class HA Class HC Class HI Class I2 Class S Hedged 2017 Total Net Assets 29,841,139 1,828,179 10,187,514 Number of Shares in Issue 28,144,976 1,800,904 15,549,262 Net Asset Value per share ** 2016 Total Net Assets 31,104,710 1,473,018 14,991,503 Number of Shares in Issue 29,016,502 1,446,748 21,954,109 Net Asset Value per share ** 2015 Total Net Assets 31,604,331 50,895 50,195 51,517 1,036,689 24,704,230 Number of Shares in Issue 29,295,254 53,753 53,042 54,394 1,020,129 35,991,913 Net Asset Value per share ** ** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

60 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Taiwan Equity Fund Class AA Turkey Equity Fund Class AA 2017 Total Net Assets 30,456,201 35,689,922 Number of Shares in Issue 15,177,004 47,786,551 Net Asset Value per share Total Net Assets 28,851,474 33,356,651 Number of Shares in Issue 17,414,956 48,722,318 Net Asset Value per share Total Net Assets 32,315,901 40,801,352 Number of Shares in Issue 18,809,293 51,547,433 Net Asset Value per share The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 58

61 59 MANULIFE GLOBAL FUND Class AA STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Class AA (HKD) U.S. Bond Fund Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I Total Net Assets 122,284,445 26, , ,864 15,538,090 6,124,589 Number of Shares in Issue 101,725,749 19, , ,431 15,972,650 5,793,771 Net Asset Value per share * * Total Net Assets 133,616,157 56, , ,637 56,042,208 5,110,561 Number of Shares in Issue 110,439,037 43, , ,312 54,010,360 4,928,955 Net Asset Value per share * * Total Net Assets 130,515,588 12, ,392 1,906,962 51,744 51,031 52,378 13,728,665 1,539,310 Number of Shares in Issue 108,027,842 9,779 93,651 1,934,170 54,711 53,985 55,357 13,581,746 1,550,545 Net Asset Value per share * * * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

62 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) U.S. Small Cap Equity Fund Class AA Class HA Class HC Class HI Class I Total Net Assets 34,204,954 Number of Shares in Issue 23,414,479 Net Asset Value per share Total Net Assets 25,158,388 Number of Shares in Issue 22,041,489 Net Asset Value per share Total Net Assets 27,607,859 59,942 59,446 60, ,692 Number of Shares in Issue 23,304,506 50,000 50,000 50, ,340 Net Asset Value per share The Notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 60

63 61 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) U.S. Treasury U.S. Special Opportunities Fund Inflation- Protected Securities Fund Class AA Class AA Inc Class I Class I3 Class T Class AA Class AA Inc Class I Total Net Assets 57,310,508 10,929, ,061 7,531, , ,399 Number of Shares in Issue 63,490,226 12,006, ,386 5,875, , ,680 Net Asset Value per share Total Net Assets 59,720,093 9,607, , , ,594 7,722, , ,711 Number of Shares in Issue 69,899,251 11,151,779 1,001, , ,805 5,891, , ,000 Net Asset Value per share Total Net Assets 69,607,012 10,750,026 5,146, ,771 8,379,924 Number of Shares in Issue 76,064,369 11,816,677 5,451, ,639 6,530,561 Net Asset Value per share The Notes to the Financial Statements form an integral part of these financial statements.

64 Class A STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Class AA American Growth Fund ASEAN Equity Fund Class AA (HKD) Class HA Class HC Class HI Class I Class I3 Class I 2017 Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price MANULIFE GLOBAL FUND Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

65 63 MANULIFE GLOBAL FUND Class AA Class AA (HKD) STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Class AA (HKD) Inc Asia Total Return Fund Class AA Inc*** Class HA Class HC Class HI Class I Class 13 Class J 2017 Highest Subscription Price * * Lowest Redemption Price * * Highest Subscription Price * * Lowest Redemption Price * Highest Subscription Price * Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price 2009 Highest Subscription Price Lowest Redemption Price 2008 Highest Subscription Price Lowest Redemption Price * Expressed in Hong Kong Dollars *** Previously Class AA until 15 June 2014 The Notes to the Financial Statements form an integral part of these financial statements.

66 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Asia Value Dividend Equity Fund Asian Equity Fund Asian Opportunities Fund a Class AA Class AA Inc Class A Class AA Class I Class I3 Class I 2017 Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price MANULIFE GLOBAL FUND Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price a Liquidated on 16 September 2011 The Notes to the Financial Statements form an integral part of these financial statements.

67 65 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Class AA Asian Small Cap Equity Fund Class AA (HKD) Class HA Class HC Class HI Class I Class I Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

68 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) China Value Fund Dragon Growth Fund Class A Class AA Class HA Class HC Class HI Class A Class AA Class AA (HKD)*** 2017 Highest Subscription Price * Lowest Redemption Price * 2016 Highest Subscription Price * Lowest Redemption Price * 2015 Highest Subscription Price * Lowest Redemption Price * 2014 Highest Subscription Price * Lowest Redemption Price * 2013 Highest Subscription Price * Lowest Redemption Price * 2012 Highest Subscription Price * Lowest Redemption Price * MANULIFE GLOBAL FUND Highest Subscription Price * Lowest Redemption Price * 2010 Highest Subscription Price * Lowest Redemption Price * 2009 Highest Subscription Price * Lowest Redemption Price * 2008 Highest Subscription Price * Lowest Redemption Price * * Expressed in Hong Kong Dollars *** Previously Class AA until 15 June 2014 The Notes to the Financial Statements form an integral part of these financial statements.

69 67 MANULIFE GLOBAL FUND Emerging Eastern Europe Fund STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Emerging Markets Infrastructure Fund b European Growth Fund Class A Class AA Class AA Class A Class AA Class I Class I3 Class J 2017 Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price b Liquidated on 28 June 2013 The Notes to the Financial Statements form an integral part of these financial statements.

70 Class AA STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Global Contrarian Fund Global Equity Fund Class AA (HKD) Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class A Class AA 2017 Highest Subscription Price * ** Lowest Redemption Price * ** Highest Subscription Price ** Lowest Redemption Price Highest Subscription Price ** Lowest Redemption Price ** Highest Subscription Price ** Lowest Redemption Price ** Highest Subscription Price ** Lowest Redemption Price Highest Subscription Price Lowest Redemption Price MANULIFE GLOBAL FUND Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price * Expressed in Hong Kong Dollars ** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

71 69 MANULIFE GLOBAL FUND Class AA STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund Class AA (HKD) Class I3 Class J Class AA Class I3 Class AA Class I Class I3 Class AA Class I Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price * Lowest Redemption Price Highest Subscription Price * Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

72 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) India Equity Fund Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Class AA Class I2 Class A Class AA Class I3 Class AA Class AA 2017 Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price MANULIFE GLOBAL FUND Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price The Notes to the Financial Statements form an integral part of these financial statements.

73 71 MANULIFE GLOBAL FUND STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Strategic Income Fund Class AA Class HA Class HC Class HI Class I Class I2 Class J Class S Hedged 2017 Highest Subscription Price ** Lowest Redemption Price ** 2016 Highest Subscription Price ** Lowest Redemption Price ** 2015 Highest Subscription Price ** Lowest Redemption Price ** 2014 Highest Subscription Price ** Lowest Redemption Price ** 2013 Highest Subscription Price ** Lowest Redemption Price ** 2012 Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price 2008 Highest Subscription Price Lowest Redemption Price ** Expressed in Singapore Dollars The Notes to the Financial Statements form an integral part of these financial statements.

74 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Taiwan Equity Fund Class AA Turkey Equity Fund Class AA 2017 Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price MANULIFE GLOBAL FUND Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price The Notes to the Financial Statements form an integral part of these financial statements.

75 73 MANULIFE GLOBAL FUND Class AA STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) Class AA (HKD) U.S. Bond Fund Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I Highest Subscription Price * * Lowest Redemption Price * * Highest Subscription Price * * Lowest Redemption Price * Highest Subscription Price * * Lowest Redemption Price * * Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price * Expressed in Hong Kong Dollars The Notes to the Financial Statements form an integral part of these financial statements.

76 STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) U.S. Small Cap Equity Fund Class AA Class HA Class HC Class HI Class I Class I Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price MANULIFE GLOBAL FUND Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price The Notes to the Financial Statements form an integral part of these financial statements.

77 75 MANULIFE GLOBAL FUND Class AA Class AA (HKD) Class AA (HKD) Inc STATISTICAL INFORMATION (continued) for the year ended 30 June 2017 (expressed in United States Dollars) U.S. Special Opportunities Fund Class AA Inc Class I Class I3 Class J Class T Class AA U.S. Treasury Inflation- Protected Securities Fund U.S.Value Fund C Class AA Inc Class I3 Class J 2017 Highest Subscription Price * * Lowest Redemption Price * * Highest Subscription Price Lowest Redemption Price Highest Subscription Price * Lowest Redemption Price * Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price Highest Subscription Price Lowest Redemption Price * Expressed in Hong Kong Dollars C Liquidated on 24 October 2012 The Notes to the Financial Statements form an integral part of these financial statements.

78 INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE OF NET ASSET VALUE (UNAUDITED) as at 30 June 2017 and 30 June 2016 American Growth Fund 30 June June 2016 ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asset backed and mortgage backed securities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Basic materials 0.00% 0.00% 0.00% 2.11% 6.65% 3.59% 0.00% 0.00% Communications 16.76% 15.73% 7.73% 13.79% 1.52% 5.34% 3.09% 1.15% Consumer, cyclical 11.95% 13.40% 9.71% 5.02% 2.92% 4.15% 10.23% 15.88% Consumer, Non-cyclical 5.00% 5.02% 7.11% 11.51% 3.55% 4.88% 1.13% 2.89% Education 0.00% 0.00% 0.00% 0.00% 0.76% 0.00% 0.00% 0.00% Energy 3.52% 6.66% 3.79% 2.19% 8.38% 6.10% 3.37% 8.93% Financials 25.38% 24.66% 41.99% 28.67% 33.53% 28.36% 30.75% 33.23% Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Healthcare 13.04% 9.57% 0.94% 2.19% 0.00% 0.00% 0.00% 0.00% Industrials 9.64% 8.57% 25.78% 17.60% 7.95% 6.69% 20.69% 21.55% Real Estate 1.77% 1.91% 0.00% 7.13% 0.00% 0.00% 3.28% 4.35% Supranationals, governments and local public authorities 0.00% 0.00% 0.00% 0.00% 25.52% 31.05% 0.00% 0.00% Technology 9.24% 11.55% 0.00% 0.00% 2.62% 2.13% 15.38% 4.44% Utilities 0.00% 0.00% 0.00% 6.30% 1.47% 2.26% 5.44% 6.48% Total Securities 96.30% 97.07% 97.05% 96.51% 94.87% 94.55% 93.36% 98.90% 30 June June June June June June 2016 MANULIFE GLOBAL FUND 76

79 77 MANULIFE GLOBAL FUND INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE OF NET ASSET VALUE (UNAUDITED) (continued) as at 30 June 2017 and 30 June June 2017 Asian Equity Fund 30 June June 2017 Asian Small Cap Equity Fund 30 June June 2017 China Value Fund 30 June 2016 Dragon Growth Fund Asset backed and mortgage backed securities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Basic materials 2.65% 1.90% 8.38% 9.87% 1.19% 1.09% 2.33% 1.76% Communications 12.33% 14.11% 4.76% 5.99% 20.80% 13.95% 30.69% 25.79% Consumer, cyclical 20.86% 15.80% 16.07% 23.10% 8.48% 6.82% 9.95% 8.67% Consumer, Non-cyclical 5.31% 5.15% 2.25% 3.45% 4.02% 1.55% 1.93% 2.93% Education 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Energy 2.75% 0.00% 2.62% 0.77% 3.92% 5.88% 7.17% 6.73% Financials 23.64% 9.70% 13.57% 6.77% 29.84% 30.83% 28.21% 27.96% Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Healthcare 0.95% 12.34% 7.92% 5.22% 2.71% 3.72% 2.79% 3.25% Industrials 12.30% 19.22% 24.77% 26.82% 14.29% 13.27% 11.09% 15.63% Real Estate 0.00% 0.00% 0.00% 3.26% 0.00% 0.38% 1.21% 2.33% Supranationals, governments and local public authorities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Technology 16.40% 17.50% 15.45% 11.42% 11.25% 9.59% 1.54% 2.05% Utilities 1.41% 2.65% 0.54% 3.94% 1.76% 5.50% 2.34% 2.09% Total Securities 98.60% 98.37% 96.33% % 98.26% 92.58% 99.25% 99.19% 30 June June 2016

80 INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE OF NET ASSET VALUE (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 Emerging Eastern Europe Fund 30 June June 2016 European Growth Fund Global Contrarian Fund Global Equity Fund Asset backed and mortgage backed securities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Basic materials 7.70% 8.97% 7.43% 6.53% 1.05% 0.89% 1.01% 0.96% Communications 3.21% 1.81% 7.80% 5.67% 7.99% 7.97% 7.96% 8.13% Consumer, cyclical 11.90% 7.28% 7.36% 5.73% 6.94% 8.12% 7.05% 8.07% Consumer, Non-cyclical 6.80% 11.94% 12.58% 17.24% 15.52% 20.16% 15.37% 20.40% Education 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Energy 27.71% 24.33% 12.51% 7.19% 4.95% 2.54% 4.60% 2.54% Financials 31.77% 32.61% 26.02% 16.03% 26.26% 20.88% 25.77% 20.99% Funds 2.04% 1.91% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Healthcare 0.00% 0.00% 12.44% 19.59% 9.32% 12.98% 9.34% 12.90% Industrials 3.91% 5.22% 8.03% 14.40% 16.01% 14.87% 15.85% 14.89% Real Estate 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Supranationals, governments and local public authorities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Technology 2.20% 1.94% 3.64% 4.41% 11.52% 9.66% 11.70% 9.78% Utilities 1.66% 2.08% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Total Securities 98.90% 98.09% 97.81% 96.79% 99.56% 98.07% 98.65% 98.66% 30 June June June June June June 2016 MANULIFE GLOBAL FUND 78

81 79 MANULIFE GLOBAL FUND INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE OF NET ASSET VALUE (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 Global Property Fund 30 June June 2016 Global Resources Fund 30 June June 2016 Greater China Opportunities Fund 30 June June June 2017 Healthcare Fund Asset backed and mortgage backed securities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Basic materials 0.00% 0.00% 60.04% 58.17% 2.38% 2.35% 0.00% 0.00% Communications 0.00% 0.00% 0.00% 0.00% 24.74% 20.44% 0.00% 0.00% Consumer, cyclical 2.12% 2.86% 0.00% 0.00% 10.95% 8.46% 1.49% 2.47% Consumer, Non-cyclical 0.00% 0.00% 0.00% 0.00% 1.42% 1.99% 0.00% 0.00% Education 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Energy 0.00% 0.00% 36.93% 36.71% 6.53% 4.04% 0.00% 0.00% Financials 20.98% 17.02% 0.00% 0.00% 22.55% 25.81% 0.00% 0.00% Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Healthcare 0.00% 0.00% 0.00% 0.00% 2.91% 5.43% 98.45% 97.03% Industrials 0.00% 0.00% 2.28% 0.00% 11.51% 14.79% 0.00% 0.00% Real Estate 74.56% 75.93% 0.00% 0.00% 0.84% 1.94% 0.00% 0.00% Supranationals, governments and local public authorities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Technology 0.00% 0.00% 0.00% 0.00% 12.06% 11.88% 0.00% 0.00% Utilities 0.00% 0.00% 0.00% 0.00% 1.34% 0.81% 0.00% 0.00% Total Securities 97.66% 95.81% 99.25% 94.88% 97.23% 97.94% 99.94% 99.50% 30 June 2016

82 INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE OF NET ASSET VALUE (UNAUDITED) (continued) as at 30 June 2017 and 30 June June 2017 India Equity Fund 30 June 2016 Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Asset backed and mortgage backed securities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Basic materials 5.87% 1.40% 2.08% 7.60% 5.18% 4.79% 17.16% 20.39% Communications 2.06% 2.79% 10.88% 14.19% 1.23% 3.08% 8.08% 7.16% Consumer, cyclical 16.76% 14.43% 21.49% 11.20% 12.68% 13.80% 6.76% 4.30% Consumer, Non-cyclical 11.62% 11.00% 7.55% 10.90% 12.59% 11.56% 9.27% 11.32% Education 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Energy 4.82% 8.11% 0.00% 0.12% 2.14% 0.00% 41.46% 34.67% Financials 30.54% 25.77% 20.42% 22.77% 38.29% 37.37% 10.85% 16.11% Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Healthcare 2.96% 8.33% 5.04% 6.60% 1.61% 1.06% 0.00% 0.00% Industrials 13.97% 9.54% 23.63% 18.72% 13.23% 18.43% 0.00% 0.00% Real Estate 0.00% 0.00% 0.00% 0.00% 3.03% 3.49% 0.00% 0.00% Supranationals, governments and local public authorities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Technology 6.63% 13.57% 2.76% 4.10% 2.08% 2.73% 0.00% 0.00% Utilities 0.00% 2.77% 0.00% 1.42% 7.24% 3.49% 4.25% 4.52% Total Securities 95.23% 97.71% 93.85% 97.62% 99.30% 99.80% 97.83% 98.47% 30 June June June June June June 2016 MANULIFE GLOBAL FUND 80

83 81 MANULIFE GLOBAL FUND INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE OF NET ASSET VALUE (UNAUDITED) (continued) as at 30 June 2017 and 30 June June 2017 Strategic Income Fund 30 June June 2017 Taiwan Equity Fund 30 June June 2017 Turkey Equity Fund 30 June June 2017 U.S. Bond Fund Asset backed and mortgage backed securities 11.28% 11.68% 0.00% 0.00% 0.00% 0.00% 32.93% 34.26% Basic materials 0.05% 0.70% 6.13% 6.51% 12.89% 0.00% 1.20% 0.75% Communications 5.31% 5.29% 1.01% 4.47% 0.00% 3.40% 4.26% 3.79% Consumer, cyclical 5.90% 5.86% 9.35% 7.93% 13.40% 12.11% 7.12% 5.87% Consumer, Non-cyclical 5.75% 4.20% 2.06% 1.81% 8.84% 10.74% 1.84% 2.60% Education 0.00% 1.05% 0.00% 0.00% 0.00% 0.00% 0.07% 0.00% Energy 2.86% 0.79% 0.00% 1.98% 6.72% 6.65% 3.55% 2.20% Financials 15.89% 16.10% 13.78% 5.62% 36.18% 36.23% 18.23% 16.60% Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Healthcare 7.63% 10.73% 7.95% 9.45% 0.00% 0.00% 4.01% 2.90% Industrials 7.03% 4.66% 34.88% 35.58% 18.11% 20.71% 3.19% 2.76% Real Estate 0.00% 0.00% 0.00% 0.00% 3.86% 7.69% 0.19% 0.23% Supranationals, governments and local public authorities 24.81% 31.36% 0.00% 0.00% 0.00% 0.00% 13.07% 21.08% Technology 5.76% 1.98% 24.71% 25.71% 0.00% 0.00% 6.07% 3.06% Utilities 3.03% 3.00% 0.00% 0.00% 0.00% 0.00% 2.03% 1.25% Total Securities 95.30% 97.40% 99.87% 99.06% % 97.53% 97.76% 97.35% 30 June 2016

84 INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE OF NET ASSET VALUE (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation- Protected Securities Fund Asset backed and mortgage backed securities 0.00% 0.00% 0.00% 0.00% 0.11% 0.73% Basic materials 4.55% 2.26% 5.48% 5.34% 0.00% 0.00% Communications 1.19% 1.58% 18.03% 16.75% 0.00% 0.00% Consumer, cyclical 16.34% 16.88% 9.27% 14.46% 0.00% 0.00% Consumer, Non-cyclical 6.80% 6.35% 2.50% 5.29% 0.00% 0.00% Education 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Energy 1.81% 1.36% 10.00% 6.86% 0.00% 0.00% Financials 16.53% 10.95% 16.42% 16.14% 0.00% 0.00% Funds 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% Healthcare 13.84% 15.48% 11.38% 8.71% 0.00% 0.00% Industrials 13.99% 13.03% 9.24% 9.15% 0.00% 0.00% Real Estate 6.03% 11.72% 0.00% 0.49% 0.00% 0.00% Supranationals, governments and local public authorities 0.00% 0.00% 0.00% 0.00% 99.40% 97.31% Technology 13.77% 13.53% 8.00% 5.88% 0.00% 0.00% Utilities 1.14% 2.73% 4.31% 3.79% 0.00% 0.00% Total Securities 95.99% 95.87% 94.63% 92.86% 99.51% 98.04% 30 June June June June June June 2016 MANULIFE GLOBAL FUND 82

85 83 MANULIFE GLOBAL FUND STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) as at 30 June 2017 and 30 June 2016 American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund 30 June June June June June June June June 2016 USD USD USD USD USD USD USD USD Bonds 66,164,760 60,129,518 Bonds convertibles 818,244 Equities 309,399, ,322,720 6,421,441 5,928,644 15,643,107 14,979,809 Funds Mortgage and Asset Backed Securities Rights Supranationals, Governments and Local Public Authorities, Debt Instruments 24,650,422 28,303,827 Warrants Equity 2,596 8,714 3,188 8,714 Total Portfolio of Investments 309,399, ,322,720 6,421,441 5,928,644 91,633,426 88,433,345 15,645,703 14,988,523

86 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 Asian Equity Fund Asian Small Cap Equity Fund China Value Fund Dragon Growth Fund 30 June June June June June June June June 2016 USD USD USD USD USD USD USD USD Bonds Bonds convertibles Equities 129,933, ,154, ,741, ,367, ,312, ,459, ,392, ,219,162 Funds Mortgage and Asset Backed Securities Rights Supranationals, Governments and Local Public Authorities, Debt Instruments Warrants Equity 3,188 8,714 Total Portfolio of Investments 129,933, ,154, ,741, ,367, ,312, ,459, ,392, ,219,162 MANULIFE GLOBAL FUND 84

87 85 MANULIFE GLOBAL FUND STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund 30 June June June June June June June June 2016 USD USD USD USD USD USD USD USD Bonds Bonds convertibles Equities 104,185,133 96,571, ,024,005 99,176,286 17,611,801 18,121, ,025, ,693,055 Funds 2,195,580 Mortgage and Asset Backed Securities Rights 109,610 65,343 Supranationals, Governments and Local Public Authorities, Debt Instruments Warrants Equity 3,188 8,714 Total Portfolio of Investments 106,380,713 96,571, ,133,615 99,241,629 17,611,801 18,121, ,025, ,693,055

88 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund 30 June June June June June June June June 2016 USD USD USD USD USD USD USD USD Bonds Bonds convertibles Equities 15,055,926 15,164,652 38,221,002 39,666,200 16,810,324 12,089, ,365, ,581,887 Funds Mortgage and Asset Backed Securities Rights Supranationals, Governments and Local Public Authorities, Debt Instruments Warrants Equity 3,188 8,714 Total Portfolio of Investments 15,055,926 15,164,652 38,221,002 39,666,200 16,810,324 12,089, ,365, ,581,887 MANULIFE GLOBAL FUND 86

89 87 MANULIFE GLOBAL FUND STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 India Equity Fund Japanese Growth Fund Latin America Equity Fund Russia Equity Fund 30 June June June June June June June June 2016 USD USD USD USD USD USD USD USD Bonds Bonds convertibles Equities 232,209, ,194,395 59,730,573 40,279,351 52,011,951 51,937,244 92,141,558 90,092,021 Funds Mortgage and Asset Backed Securities Rights Supranationals, Governments and Local Public Authorities, Debt Instruments Warrants Equity 3,188 8,714 Total Portfolio of Investments 232,209, ,194,395 59,730,573 40,279,351 52,011,951 51,937,244 92,141,558 90,092,021

90 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund 30 June June June June June June June June 2016 USD USD USD USD USD USD USD USD Bonds 21,763,531 22,514,019 71,927,552 76,793,297 Bonds convertibles 423, , , ,431 Equities 2,684,254 2,974,988 30,415,847 28,581,635 35,691,057 32,532, ,457 1,280,805 Funds Mortgage and Asset Backed Securities 4,823,428 6,077,997 49,380,231 71,246,217 Rights Supranationals, Governments and Local Public Authorities, Debt Instruments 10,196,351 14,532,445 18,903,712 40,725,334 Warrants Equity 3,188 8,714 Total Portfolio of Investments 39,891,511 46,330,285 30,415,847 28,581,635 35,691,057 32,532, ,389, ,310,084 MANULIFE GLOBAL FUND 88

91 89 MANULIFE GLOBAL FUND STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) as at 30 June 2017 and 30 June 2016 U.S. Treasury U.S. Small Cap Equity Fund U.S. Special Opportunities Fund Inflation- Protected Securities Fund 30 June June June June June June 2016 USD USD USD USD USD USD Bonds 62,339,906 63,154,045 Bonds convertibles 508, ,640 Equities 32,833,790 24,118,920 2,084,679 2,374,364 Funds Mortgage and Asset Backed Securities 9,172 60,518 Rights Supranationals, Governments and Local Public Authorities, Debt Instruments 8,286,674 8,094,931 Warrants Equity 1,505 3,188 8,714 Total Portfolio of Investments 32,833,790 24,118,920 64,935,053 65,897,049 8,295,846 8,155,449

92 AMERICAN GROWTH FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Belgium 63,243 Anheuser-Busch InBev ADR 7,329,313 7,011, ,329,313 7,011, Bermuda 139,371 IHS Markit Limited 4,446,262 6,160, ,446,262 6,160, Curacao 83,954 Schlumberger Limited 6,478,810 5,511, ,478,810 5,511, France 45,285 Danone 3,202,850 3,433, ,202,850 3,433, Ireland 47,066 Allergan plc 10,456,848 11,480, ,535 Medtronic Inc. 4,511,669 7,161, ,968,517 18,642, Switzerland 59,640 Novartis AG ADR 4,114,145 5,018, ,114,145 5,018, United Kingdom 79,272 Nielsen Holdings plc 3,207,623 3,067, ,207,623 3,067, United States 49,944 Affiliated Managers Group 7,613,299 8,334, ,945 Alphabet Inc. A 4,258,345 9,316, ,980 Alphabet Inc. C 2,078,172 4,560, ,094 Amazon.Com Inc. 8,136,358 19,649, ,127 American Express Company 2,433,440 3,526, ,853 American Tower Corp. 4,167,089 5,694, ,368 Amgen Inc. 4,684,266 6,985, ,010 Apple Computer Company 11,349,912 18,200, ,798 Bank of America Corp. 9,005,150 13,151, ,355 Blackrock Inc. 2,623,604 3,545, ,209 Carmax Inc. P.P. 144A 2,677,275 3,263, ,539 Caterpillar Inc. 997,810 1,236, ,424 Chevron Corp. 2,049,681 2,343, ,755 Cisco Systems Inc. 3,491,197 4,024, ,164 Citigroup Inc. 11,683,577 14,206, ,729 Coca Cola Company 75,439 77, ,880 Danaher Corp. 1,625,668 1,590, ,454 Exxon Mobil Corp. 3,571,660 3,440, ,259 Facebook Inc. A 6,404,630 12,534, ,804 Factset Research Systems Inc. 1,493,198 1,497, ,444 General Electric Company 3,403,777 4,128, MANULIFE GLOBAL FUND 90

93 AMERICAN GROWTH FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 70,095 Gilead Sciences Inc. 4,567,192 4,973, ,358 Goldman Sachs Group Inc. 10,581,696 13,348, ,540 Group 1 Automotive Inc. 1,085,388 1,167, ,305 JP Morgan Chase 5,576,215 12,299, ,667 Kinder Morgan Inc. 4,744,117 4,055, ,120 Lennar Corp. 5,036,775 7,183, ,813 Louisiana-Pacific Corp. 2,512,319 3,251, ,281 Lowe s Companies Inc. 1,213,806 2,331, ,969 Merck & Company Inc. 3,048,901 4,685, ,171 Morgan Stanley 5,107,781 8,044, ,816 Nike Inc. 816, , ,627 NVR Inc. 2,965,514 6,186, ,073 PepsiCo Inc. 1,880,543 2,908, ,801 Polaris Industries Inc. 9,102,877 9,483, ,393 Procter & Gamble Company 2,244,147 2,649, ,778 Qualcomm Inc. 3,309,241 3,412, ,259 Tempur-Pedic International Inc. 7,600,760 7,917, ,837 Twenty-First Century Fox Inc. ADR 3,208,186 3,180, ,403 Union Pacific Corp. 5,001,249 6,096, ,192 United Parcel Service Inc. 2,675,711 3,659, ,694 United Technologies Corp. 5,364,053 6,441, ,606 Visa Inc. A 4,044,267 5,051, ,511, ,553, Equities Total 229,258, ,399, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 229,258, ,399, Portfolio of Investments 229,258, ,399, Other Net Assets 11,886, Net Assets 321,285, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 91 MANULIFE GLOBAL FUND

94 AMERICAN GROWTH FUND Investment Objective: The sub-fund aims to achieve capital growth from a portfolio of North American equities, with the main emphasis on the U.S. While the portfolio consists predominantly of securities of a carefully selected list of larger companies, smaller and medium-sized quoted companies are also included. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* American Growth Fund Class A % American Growth Fund Class AA % American Growth Fund Class I % American Growth Fund Class I % S&P 500 Index % PERFORMANCE FROM 25 OCTOBER 2016 TO 30 JUNE 2017* American Growth Fund Class AA (HKD) % PORTFOLIO REVIEW Both sector allocations, which are driven by bottom-up stock picks, and security selection had a sizable positive impact on the sub-fund s performance. The sub-fund s portfolio manager (PM) stuck with the long-time strategy of focusing on financially sound companies with competitive advantages; the ability to generate substantial cash flow over sustained periods; and attractive stock prices compared to estimates of intrinsic value. This approach resulted in a sizable boost from stock selection and a sizable overweight in the financials sector. The sub-fund favoured several big banks that saw significant stock returns this past year. Prospects of deregulation, higher interest rates, and a better economic backdrop benefited the stocks. Furthermore, annual stress test results meant the banks could gain approval to increase their dividends and share buybacks. In the consumer discretionary sector, the sub-fund s largest position was a top contributor to performance. Strength in the company s core e-commerce business and cloud-computing operation drove first-quarter sales and earnings growth that topped estimates, driving the stock at one point through the US$1,000 per share mark. Expansion overseas and late-period plans to purchase another retailer (not in the sub-fund) also bolstered the company s prospects. Another top holding and standout was a consumer technology leader whose stock rose sharply, benefiting from a solid franchise and growth in the services side of the business. By contrast, stock picks in the energy sector and a small cash position in a rising market hampered performance. Among the sub-fund s biggest detractors this past year were a Netherlands-based energy services company, whose stock slid as continued low energy prices dampened demand for the services it provides to exploration and production (e&p) companies. Another detractor was a US-based e&p company whose stock was similarly pressured by weak energy prices. The risk of a dividend cut, given the company s relatively high debt level, worried investors, further hindering the stock. The holding was no longer in the portfolio at period end. Elsewhere, in consumer staples, a small stake in an infant formula company and a non-benchmark position in a global brewer hurt relative performance. Stock in the infant formula company fell due to its sizable exposure to China, where competition in the market has increased dramatically and regulations have made it more difficult for foreign competitors. Lower-than-expected sales in Asia, currency challenges, and price competition in the US hampered the company s earnings growth, causing a pullback in the stock. The PM sold the sub-fund s stake mid-way through the period. Shares of the brewer initially declined because of concern over whether the company would hit its synergy targets following last year s acquisition of a competitor. Weak economic growth in Brazil, one of the company s key end markets, and currency challenges further pressured the stock. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 92

95 AMERICAN GROWTH FUND MARKET REVIEW The US stock market had a strong run for the year ended 30 June Central bank support, low bond yields globally, and better-than-expected US corporate earnings reports helped stocks climb to new records last summer and early autumn. Stocks took off again after the results of the November US presidential election spurred expectations of better economic growth, higher interest rates, lower corporate tax rates, looser government regulations, and increased infrastructure spending. The stock market hit record highs shortly before period end, aided by the following factors: Promised production cuts by the Organization of the Petroleum Exporting Countries (OPEC), positive economic data, and the Fed s decision to inch its target short-term interest rate higher last December (and again in March and June). Investors, however, faced some challenges as 2017 unfolded. Concern mounted over whether the Trump administration would be able to push forward its pro-growth agenda, given delays passing new healthcare legislation and accusations about its ties to Russia. Weak oil prices and concern about North Korea were added challenges. However, late-period news that all the big US banks had passed their annual stress tests helped lift the broad-based S&P 500 Index to a strong finish. Within the S&P 500, returns in the financials and information technology sectors were especially strong, while the moredefensive telecommunication services and real estate sectors and the energy sector ended the period with declines. OUTLOOK Although the rally in US stocks is one of the longest on record having begun in March 2009 the PM remains optimistic about the market s prospects. Expectations are that US and global economies will continue the path to recovery. In fact, US economic growth could accelerate in the second half of 2017, especially if some of the Trump administration s pro-growth plans gain traction. Furthermore, consumer balance sheets and the US financial system remain healthy, US housing supply is below average, and unemployment is at a 16-year low. If US economic growth stays on track, the Fed will likely move ahead with unwinding some of the monetary stimulus measures that have been in place for years now, with further interest rate hikes and the sale of some of the assets in its US$4.5 trillion portfolio. The PM is also encouraged because first-quarter earnings in the S&P 500 Index exceeded consensus estimates by a wide margin. The PM thinks the market is at the beginning of a handoff, with a shift toward earnings rather than monetary policy driving gains going forward. Lastly, the PM continues to find good quality companies at stock valuations that look attractive relative to improving earnings growth prospects. The PM found some of the best opportunities in the economically sensitive financials and consumer discretionary sectors, each a sizable overweight, and in the information technology sector. These three sectors together accounted for over 60% of the sub-fund s assets at period end. 93 MANULIFE GLOBAL FUND

96 ASEAN EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Indonesia 98,000 Astra International Tbk PT 57,305 65, ,000 Bank Central Asia Tbk Pt 186, , ,000 Bank Rakyat Indonesia Persero Tbk Pt 187, , ,148,958 Ciputra Development Tbk PT 121, , ,300 Indofood Cbp Sukses Makmur Tbk PT 61,184 89, ,200 Perusahaan Perkebunan London 74,693 63, Sumatra Indonesia Tbk 5,316,700 Puradelta Lestari Tbk Pt 81,861 86, ,244,400 Ramayana Lestari Sentosa Tbk PT 118, , ,000 Telekomunikasi Indonesia Tbk Pt 167, , ,898,000 Total Bangun Persada Tbk PT 87, , ,000 United Tractors Tbk PT 98, , ,015,000 Wijaya Karya PT 112,644 93, ,616 Wijaya Karya PT 110, , ,466,116 1,712, Malaysia 130,000 Gamuda Bhd 149, , ,100 Genting Malaysia Bhd 122, , ,400 Hup Seng Industries Bhd 65,004 64, ,000 Kuala Lumpur Kepong Bhd 64,199 63, ,000 Lpi Capital Bhd 75,596 79, ,000 Malayan Banking Bhd 123, , ,000 Public Bank Bhd 195, , ,000 Sime Darby Bhd 182, , ,500 Top Glove Corp. Bhd 68,229 78, ,150 Uchi Technologies Bhd 57,024 74, ,103,421 1,225, Philippines 61,000 Bank of The Philippine Islands 114, , ,000 Bloomberry Resorts Corp. 32,468 32, ,500 Melco Resorts and Entertainment 39,146 71, Philippines Corp. 71,960 Robinsons Retail Holdings Inc. 111, , ,400 Sm Prime Holdings Inc. 97, , ,800 Vista Land & Lifescapes Inc. 95, , , , MANULIFE GLOBAL FUND 94

97 ASEAN EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Singapore Thailand Vietnam 78,000 Capitaland Limited 168, , ,000 First Resources Limited 66,800 74, ,000 Keppel Corp. Limited 162, , ,300 Oversea-Chinese Banking Corp. Limited 281, , ,000 Raffles Medical Group Limited 66,262 62, ,400 Singapore Technologies Engineering Limited 131, , ,000 Singapore Telecommunications 104, , ,000 United Overseas Bank Limited 328, , ,000 Uol Group Limited 160, , ,900 Venture Corp. Limited 91, , ,561,978 1,817, ,000 Advanced Info Service pcl NVDR 116, , ,000 Airports of Thailand pcl NVDR 98, , ,000 CH. Karnchang pcl 80,433 92, ,700 Eastern Polymer Group NVDR 55,136 62, ,500 Kasikornbank pcl NVDR 161, , ,000 PTT pcl nvdr NVDR 229, , ,200 Somboon Advance Technology pcl NVDR 88,503 93, , , ,560 Vietnam Dairy Products JSC 98, , , , Equities Total 5,550,245 6,421, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 5,550,245 6,421, Portfolio of Investments 5,550,245 6,421, Other Net Assets 195, Net Assets 6,616, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 95 MANULIFE GLOBAL FUND

98 ASEAN EQUITY FUND The investment objective of the sub-fund is to generate long-term capital growth through investing primarily in equity and equity-related securities of companeis listed or incorporated in countries which are members of ASEAN as well as companies incorporated outside ASEAN but which have significant economic exposure to, or derive a significant proportion of their income from the ASEAN region. The ASEAN region is defined as members of the Association of South East Asian Nations, which currently comprise Singapore, Malaysia, Thailand, Indonesia, Brunei, the Philippines, Vietnam, Cambodia, Laos and Myanmar. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* ASEAN Equity Fund Class I +6.86% MSCI South East Asia Index % PORTFOLIO REVIEW Stock selection in Indonesia and Thailand negatively impacted performance. However, this was partly offset by stock selection in the Philippines and Singapore, and the underweight in the Philippines. The top contributor was a Singaporean electronics contract manufacturing services provider, which reported strong first quarter earnings results on the back of broad-based growth in demand especially in the medical and technology fields. A Philippine casino operator contributed positively to performance due to better-than-expected first quarter earnings. This was driven by a surge in gross gaming revenue across all business segments. Furthermore, the number of foreign players has increased (especially from China). Some of the sub-fund s holdings in Indonesia were the key detractors. The main detractor was a construction materials supplier as investors lost patience over the delivery of earnings from the implementation of government projects. The sub-fund s portfolio manager (PM) continues to like the company the PM expects new contracts to ramp-up by the second half of 2017, and the company s cash flows to improve accordingly. Another detractor was a property developer given the weak sentiment on the real estate sector due to slow pre-sales. Good prospects for the company remain as its pre-sales gain momentum for the rest of the year with the launch of its new projects. From a sector perspective, the key detractors were stock selection in materials and consumer staples, and the underweight in financials. Stock selection in industrials and telecommunication services, and the overweight in information technology contributed positively to performance. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 96

99 ASEAN EQUITY FUND MARKET REVIEW Southeast Asian equity markets had a strong start during the period in review due to companies reporting mostly better-than-expected earnings during the third quarter reporting season. During the first half of 2017, strong positive sentiment buoyed the Southeast Asian markets due to the notable improvement in economic data across the region as well as on improved earnings outlook. Despite the Fed hiking policy rates thrice by 25 basis points (bps) each in December, March, and June to 1.25%, the central bank maintained a dovish outlook on the tightening cycle. Oil prices were volatile as Organization of the Petroleum Exporting Countries (OPEC) and non-opec members decision to extend their production cut was offset by mounting concerns on weak demand and a supply glut. Singapore s first quarter GDP rose by 2.7% year-on-year on the back of the manufacturing sector s strong growth. Non-oil domestic exports decline in May was better than expected as robust electronics sector growth was offset by non-electronic exports. Industrial production in May rose given the growth in all segments except for the biomedical cluster. The government surprised the property market by relaxing the seller s stamp duty. This marked the first easing after years of maintaining a tight stance in the real estate sector. Indonesia s sovereign credit rating was upgraded by S&P in May by one notch (to BBB-), achieving full investment grade status among the major credit rating agencies. First quarter GDP growth registered at 5.0% year-on-year, supported by strong exports, steady private consumption, and fixed investments. Consumer confidence index in May of was the highest in nearly 17 years due to expectations of better economic conditions and job availability. The tax amnesty programme, which was launched last July, has concluded by the end of March, with total government revenue amounting to IDR411 trillion (around US$31 billion) and accounting for around 35% of the estimated budget deficit for the 2017 fiscal year. Thailand s first quarter GDP expanded by 3.3% year-on-year, the fastest in three quarters, driven by the agricultural sector, exports, and household consumption. The Thai Cabinet approved the budget to alleviate the financial situation of farmers and improve rice production. The central bank kept policy rates unchanged as it expressed optimism on the improving growth outlook and on the bigger role of fiscal spending. In relation to this, the central bank raised the 2017 GDP growth forecast from 3.2% year-onyear to 3.4%. The Thai King passed away after 70 years of rule in October. Malaysia s first quarter GDP growth was faster than expected at 5.6% year-on-year (relative to consensus forecast of 4.8%) due to strong private consumption and investments. Exports in April surged 20.6% year-on-year due to strong demand for its manufactured goods. Industrial production in April rose slower than expected as it was dragged down by mining and electricity output. Malaysia s budget for 2017 was announced and will focus on private consumption and fiscal consolidation. The Philippines was the worst performing benchmark constituent market as concerns over political noise intensified. First quarter GDP grew by a slower-than-expected 6.4% year-on-year (compared to 6.7% market estimates), though it remains among the fastest in the region on the back of robust domestic demand and softer government spending. The government unveiled its 3-year infrastructure program amounting to PHP3.6 trillion (around US$72.0 billion). 97 MANULIFE GLOBAL FUND

100 ASEAN EQUITY FUND OUTLOOK The move by S&P in upgrading Indonesia to investment grade is an endorsement to the country s improving economic fundamentals. That said, the upside potential of most stocks and companies in the market remain under-appreciated as investors focus on short-term earnings weakness. The PM still believes that this market has a strong upside potential once the impact from the improvement in the economy trickles down to corporate earnings. Companies in Singapore, Thailand, and Malaysia, despite strong share price performance in the first quarter of 2017, had generally delivered weaker-than-expected earnings growth. This implies valuations have run ahead of fundamentals in most cases. The sub-fund deliberately stayed away from the unjustified stock rally during the period and focused on investing in good quality companies trading on reasonable valuations. The strategy has paid off in the recent month, and contributed to the strong outperformance of the portfolio relative to benchmark year to date. The longer-term outlook of South East Asia markets remain positive as governments continue to spend on infrastructure projects. This is amplified by investments from China under its Belt and Road initiatives. Philippines and Thailand are benefiting from a strong influx of Chinese visitors, while Malaysia and Indonesia receive funding for various infrastructure projects. The multiplier effect from these economic activities is expected to contribute positively to domestic consumption and asset prices in due course. MANULIFE GLOBAL FUND 98

101 ASIA TOTAL RETURN FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Supranationals, Governments and Local Public Authorities, Debt Instruments Canada 26,000,000 British Columbia (Province of) 6.600% 388, , /Jan/ , , India 100,000,000 India (Govt of) 7.590% 11/Jan/2026 1,586,957 1,620, ,000,000 India (Govt of) 7.680% 15/Dec/ , , ,000,000 India (Govt of) 8.120% 10/Dec/2020 1,421,276 1,458, ,000,000 India (Govt of) 8.270% 9/Jun/2020 1,863,232 1,942, ,729,037 5,912, Indonesia 5,000,000,000 Indonesia (Govt of) 7.000% 15/May/ , , ,000,000,000 Indonesia (Govt of) 8.375% 15/Mar/2024 1,641,310 1,546, ,000,000,000 Indonesia (Govt of) 8.375% 15/Sep/ , , ,000,000,000 Indonesia (Govt of) 8.750% 15/May/ , , ,500,000,000 Indonesia (Govt of) 9.000% 15/Mar/2029 1,105,198 1,413, ,187,378 5,267, New Zealand 750,000 New Zealand (Govt of) 4.500% 15/Apr/ , , ,000 New Zealand (Govt of) 5.500% 15/Apr/ , , ,061,288 1,083, Philippines 800,000 Philippine (Govt of) 3.700% 2/Feb/ , , , , Republic of Korea (South) 19,000,000,000 Export-Import Bank of Korea 8.000% 1,529,585 1,440, /May/2018 1,500,000,000 Korea (Govt of) 2.750% 10/Mar/2018 1,448,789 1,323, ,000,000,000 Korea (Govt of) Treasury Bond 2.750% 917, , /Sep/ ,000,000 Korea (Govt of) Treasury Bond 5.000% 680, , /Jun/ ,000,000 Korea (Govt of) Treasury Bond 5.750% 404, , /Sep/2018 4,981,470 4,723, Supranational 58,000,000 Inter-American Development Bank 6.000% 857, , /Sep/ ,000,000 International Finance Corp % 472, , /Oct/2018 1,329,421 1,367, Thailand 30,000,000 Thailand (Govt of) 1.200% 14/Jul/ , , , , MANULIFE GLOBAL FUND

102 ASIA TOTAL RETURN FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States 970,000 United States Treasury N/B 2.875% 15/Nov/ , , , , Supranationals, Governments and Local Public Authorities, Debt Instruments Total 21,408,871 21,479, Bonds Australia 1,000,000 Australia & New Zealand Banking Group 1,115,000 1,108, Limited FRN 29/Dec/2049 1,000,000 Commonwealth Bank of Australia 5.125% 819, , /Aug/ ,000 FMG Resources August 2006 Pty Limited 650, , % 15/May/ ,000 Incitec Pivot Limited 5.750% 21/Feb/ , , ,151,549 3,006, Bermuda 200,000 Rkp Overseas Finance 7.950% 29/Dec/ , , , , Canada 900,000 Nexen Energy Ulc 5.875% 10/Mar/ ,721 1,079, ,000 PTTEP Canada International Finance Limited 250, , % 12/Jun/2042 1,249,721 1,401, Cayman Islands 300,000 Agile Property Holdings Limited 8.375% 310, , /Feb/ ,000 Biostime International Holdings Limited 661, , % 21/Jun/ ,000 China Overseas Finance Cayman V Limited 398, , % 15/Nov/ ,000 China Overseas Finance Cayman V Limited 354, , % 15/Nov/ ,000 Future Land Develo 6.250% 12/Nov/ , , ,000 Future Land Development Holdings Limited 799, , % 16/Feb/ ,000 Hengdeli Holdings Limited 6.250% 263, , /Jan/ ,000 Hilong Holding Limited 7.250% 22/Jun/ , , ,000 Lenovo Perpetual Securities Limited FRN 900, , FRN 29/Dec/ ,000 Parkson Retail Group Limited 4.500% 871, , /May/2018 1,000,000 Tencent Holdings Limited 3.800% 1,023,280 1,043, /Feb/ ,000 Times Property Holdings Limited % 449, , /Mar/2020 7,327,070 7,468, MANULIFE GLOBAL FUND 100

103 ASIA TOTAL RETURN FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets China 650,000 CCB Life Insurance Company Limited FRN 650, , /Apr/2077 1,100,000 China Construction Bank Corp. FRN 1,122,577 1,120, /May/2025 1,600,000 China Construction Bank Corp. FRN 261, , /Nov/2024 ** 1,000,000 Industrial & Commercial Bank of China H 1,032,720 1,068, % 21/Sep/2025 3,066,636 3,089, Hong Kong 1,200,000 Bank of East Asia Limited FRN 3/Nov/2026 1,198,056 1,202, ,000 Bank of East Asia Limited FRN 13/Sep/ , , ,000 Chalco Hong Kong Investment Company FRN 522, , /Oct/ ,000 Chalieco Hong Kong Corp. Limited FRN 200, , /Dec/ ,000 Far East Horizon 4.350% 14/Jun/ , , ,000 FPT Finance Limited 6.375% 28/Sep/ , , ,000 Hesteel Hong Kong Company Limited 797, , % 7/Apr/ ,000 Icici Prudential Life Insurance Company 348, , % 5/Apr/ ,000 Mcc Holding Hk Corp % 31/May/ , , ,000,000 Wheelock Finance Limited 4.500% 821, , /Sep/ ,000 Yancoal International Resources Development 402, , Company Limited FRN 29/Dec/2049 6,757,550 6,721, India 400,000 Adani Ports and Special 4.000% 30/Jul/ , , ,000 HPCL Mittal Energy Limited 5.250% 720, , /Apr/ ,000 Idbi Bank Limited 4.125% 23/Apr/ , , ,000 Reliance Industries Limited 4.125% 247, , /Jan/ ,000 Reliance Industries Limited 4.875% 593, , /Feb/2045 2,562,897 2,634, MANULIFE GLOBAL FUND

104 ASIA TOTAL RETURN FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Indonesia 800,000 MPM Global Pte Limited 6.750% 796, , /Sep/ ,000 Pelabuhan Indonesia II Pt 4.250% 544, , /May/ ,000 Pertamina Persero PT 6.450% 30/May/ , , ,000 Perusahaan Gas Negara Persero Tbk PT 876, , % 16/May/ ,000 Perusahaan Listrik Negara Pt 5.500% 408, , /Nov/ ,000 PT Bukit Makmur Mandiri Utama 7.750% 704, , /Feb/ ,000 PT Perusahaan Listrik Negara 4.125% 742, , /May/ ,000 Saka Energi Indonesia Pt 4.450% 5/May/ , , ,988,895 5,068, Isle of Man 800,000 Gohl Capital Limited 4.250% 24/Jan/ , , , , Jersey Channel Islands 600,000 West China Cement Limited 6.500% 608, , /Sep/ , , Malaysia 6,750,000 Cagamas Global 3.700% 22/Sep/2017 ** 1,098, , ,300,000 Cimb Bank Bhd 4.375% 25/Sep/2019 1,177,917 1,004, ,000,000 IOI Investment Bhd 4.375% 27/Jun/ ,840 1,044, ,000 Malayan Banking Bhd FRN 29/Oct/ , , ,000,000 SSG Resources Limited 4.250% 4/Oct/2022 1,002,422 1,052, ,524,083 4,351, Mauritius 650,000 HT Global It Solutions Holdings Limited 665, , % 14/Jul/ , , Netherlands 400,000 Bharti Airtel International Netherlands BV 391, , % 11/Mar/ , , MANULIFE GLOBAL FUND 102

105 ASIA TOTAL RETURN FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets New Zealand 5,000,000 Fonterra Cooperative Group Limited 3.600% 811, , /Jan/2019 ** 811, , Philippines 14,000,000 Petron Corp % 10/Nov/ , , , , Republic of Korea (South) 1,200,000 Busan Bank 3.625% 25/Jul/2026 1,198,699 1,162, ,000,000,000 Dongbu Insurance 3.865% 25/May/2027 1,788,020 1,765, ,000 Shinhan Bank FRN 7/Dec/ , , ,000 Woori Bank FRN 16/Nov/ , , ,335,691 4,307, Singapore 600,000 Alam Synergy Pte Limited 6.625% 596, , /Apr/2022 1,600,000 Boc Aviation Limited 3.000% 23/May/2022 1,591,535 1,593, ,200,000 Dbs Group Holdings FRN 29/Dec/2049 1,200,000 1,200, ,000 Modernland Overseas Pte Limited 6.950% 650, , /Apr/ ,000 Ongc Videsh Vankornef 3.750% 27/Jul/ , , ,750,000 Singapore Post Limited 4.250% 29/Sep/2049 1,398,071 1,343, ,000 Tbg Global Pte Limited 5.250% 10/Feb/ , , ,000 Theta Capital Pte Limited 6.750% 297, , /Oct/2026 1,000,000 United Overseas Bank Limited FRN 995,740 1,020, /Sep/2026 1,250,000 United Overseas Bank Limited FRN 881, , /Feb/2029 8,703,577 8,752, Thailand 800,000 PTT Global Chemical pcl 4.250% 19/Sep/ , , ,000 Thai Oil pcl 3.625% 23/Jan/ , , ,000 Thai Oil pcl 4.875% 23/Jan/ , , ,703,533 1,807, MANULIFE GLOBAL FUND

106 ASIA TOTAL RETURN FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United Kingdom 300,000 Vedanta Resources plc 7.125% 31/May/ , , ,000 Vedanta Resources plc 8.250% 7/Jun/ , , , , United States 250,000 Reliance Holdings USA Inc % 248, , /Feb/ , , Virgin Islands (British) 1,000,000 Beijing Gas Singapore Capital Corp % 990, , /May/2022 1,250,000 Bestgain Real Estate Limited 3.275% 1,002, , /Nov/ ,000 Bluestar Fin Holdings 3.500% 30/Sep/ , , ,000,000 Bluestar Finance Holdings FRN 17/Dec/2049 1,022,500 1,017, ,000 Ccci Treasure Limited FRN 29/Dec/ , , ,000 China Cinda Finance 4.250% 23/Apr/ , , ,000 China Reinsurance Finance Corp % 795, , /Mar/2022 1,300,000 China Southern Power 3.500% 8/May/2027 1,289,379 1,295, ,000 Chinalco Capital Holdings Limited 4.250% 505, , /Apr/ ,000 Dianjian Haiyu Limited 3.500% 14/Dec/ , , ,000,000 Franshion Brilliant Limited 4.000% 3/Jan/2066 1,000, , ,000 Huarong Finance II Company Limited 4.875% 605, , /Nov/ ,000 Proven Honour Capital Limited 4.125% 910, , /May/ ,000 Road King Infrastructure 5.000% 9/Aug/ , , ,100,000 State Grid Overseas 4.000% 4/May/2047 1,100,000 1,111, ,000,000 Yongda Investment Limited 3.750% 1,042,020 1,025, /Jul/ ,767,805 12,651, Bonds Total 65,995,731 66,164, MANULIFE GLOBAL FUND 104

107 ASIA TOTAL RETURN FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Bonds convertibles Hong Kong 800,000 Dah Sing Bank Limited FRN 30/Nov/ , , , , Bonds convertibles Total 797, , Total Transferable securities and money market instruments admitted to an official exchange listing (1) 88,202,002 88,462, Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Supranationals, Governments and Local Public Authorities, Debt Instruments Malaysia 3,500,000 Malaysia (Govt of) 4.181% 15/Jul/ , , ,000 Malaysia (Govt of) 4.254% 31/May/ ,202 67, ,500,000 Malaysia (Govt of) 4.392% 15/Apr/ , , ,414,921 1,254, Philippines 101,000,000 Philippine (Govt of) 3.500% 21/Apr/2023 1,997,527 1,916, ,997,527 1,916, Supranationals, Governments and Local Public Authorities, Debt Instruments Total 3,412,448 3,171, Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities 3,412,448 3,171, Portfolio of Investments 91,614,450 91,633, Other Net Assets 4,957, Net Assets 96,590, ** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 254) (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 105 MANULIFE GLOBAL FUND

108 ASIA TOTAL RETURN FUND Investment Objective: The sub-fund aims to maximize total returns from a combination of capital appreciation and income generation. The sub-fund primarily invests in a diversified portfolio of fixed income securities, issued by governments, agencies, supra-nationals and corporate issuers in Asia. The sub-fund may also invest (up to 30 per cent of its net assets) in cash and fixed income securities of other issuers outside Asia if the Investment Manager considers that such securities will achieve the goal of maximizing capital appreciation and income generation. The sub-fund invests in securities denominated in Asian currencies or other currencies. It may invest in local currency bonds with unhedged currency exposure to achieve currency gains. The sub-fund may also hedge for efficient portfolio management purposes. The sub-fund may invest in higher-yielding debt securities rated lower than investment grade, or if unrated, their equivalent. As such, an investment in this sub-fund is accompanied by a higher degree of credit risk. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Asia Total Return Fund Class AA +3.77% Asia Total Return Fund Class AA Inc +3.78% Asia Total Return Fund Class AA (HKD) +3.77% Asia Total Return Fund Class AA (HKD) Inc +3.77% Asia Total Return Fund Class I +4.07% Asia Total Return Fund Class I % Asia Total Return Fund Class J +4.60% MGF Asia Total Return Custom Index +2.91% PORTFOLIO REVIEW The portfolio s overall security selection in corporate bonds was the main contributor to relative performance. The portfolio s exposure to Indonesian and Indian local currency also contributed positively amid lower bond yields. Furthermore, the portfolio s underweight US dollar interest rate positioning was also a contributor, amid a rising US interest rate environment. On the other hand, the portfolio s zero exposure to Taiwanese dollars slightly detracted from performance, with the currency strengthening against the US dollar over the period. MARKET REVIEW In US, the Fed increased its federal funds target rate three times, by 25 basis points (bps) each time. During the fourth quarter of 2016, US Treasury yields were volatile and spiked sharply in a short amount of time after the US elections. This occurred due to expectation of expansive fiscal spending and higher inflation under the new presidential administration. 10-year Treasury yields rose from 1.47% to 2.30% over the period. Moody s Investors Service downgraded China s sovereign credit rating from Aa3 to A1. The rating agency cited several factors, such as rising debt levels and slowing potential growth, which could erode the country s financial strength. The announcement had minimal impact on Chinese bond and currency markets, as it had been largely expected by most market participants. Standard & Poor s upgraded Indonesia s sovereign credit rating from BB+ to BBB-, as the government was successful in reducing its budget deficit. With this upgrade, the country was rated investment-grade by all three major credit rating agencies. Indonesian government bond yields fell over the period amid expectations of further capital inflows from foreign investors. Indian government bond yields fell over the period as the government announced the demonetisation of large-denomination notes. This move led to a surge of liquidity in the banking system and a subsequent increase in bond investments from banks. Asian corporate credit markets saw gains, predominately driven by the positive carry. The JP Morgan Asian Investment Grade Corporate Bond Index returned 2.26% and the JP Morgan Asian High Yield Corporate Bond Index returned 6.48% in US dollar terms. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 106

109 ASIA TOTAL RETURN FUND The performance of Asian currencies was mixed against the US dollar. The Indian rupee was one of the better performing currencies, as the Reserve Bank of India (RBI) raised the reverse repo rate by 25bps to 6% in April. The Philippine peso was one of weaker-performing currencies, as the country s trade deficit widened to US$2.8 billion in May. OUTLOOK The sub-fund s portfolio manager (PM) believes volatility in global and Asian bond markets may pick up in the coming months. Some developed central banks may be on the inflection point to normalise monetary policy, and there could be rising geopolitical risks regionally. Nevertheless, the PM believes overall fundamentals are supportive for Asian bond markets. Indonesia s full-fledged investment grade status may spur further capital inflow into the region. Asian credit spreads have continued to tighten amid capital inflows into the region. The PM is mindful of the relatively stretched valuations, but recognises that the abundant regional liquidity can continue mitigating refinancing risks and keeping credit spreads at relatively tight levels, especially in the corporate space. Meanwhile for currencies, the PM believes the strong US dollar environment could resume should there be any meaningful protectionism activities from the US. The PM is therefore watchful for opportunities to selectively take an underweight position in relatively export-reliant Asian currencies like the South Korean won and Taiwan dollar. 107 MANULIFE GLOBAL FUND

110 ASIA VALUE DIVIDEND EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Bermuda 3,030,000 CSI Properties Limited 136, , ,216 Skyworth Digital Holdings Limited 339, , , , Cayman Islands 104,000 Belle International Holdings Limited 91,649 82, ,680 Cheung Kong Property Holdings Limited 169, , ,900 China Jinjiang Environment Holding 51,999 48, Company Limited 246,000 China Lilang Limited 164, , ,000 China State Construction International 294, , Holdings Limited 156,000 China Tian Lun Gas Holdings 85,958 83, ,000 Cifi Holdings Group Company Limited 115, , ,180 CK Hutchison Holdings Limited 193, , ,000 EGL Holdings Company Limited 34,435 23, ,000 FSE Engineering 82, , ,000 Haitian International Holdings Limited 57, , ,000 HKBN Limited 66,391 63, ,000 Hopefluent Group Holdings Limited 94, , ,000 Jiangnan Group Limited 183,511 66, ,000 Lee & Man Holding Limited 69,950 73, ,500 Longfor Properties Company Limited 490, , ,000 Nameson Holdings Limited 66,696 65, ,381 Oi Wah Pawnshop Credit Holding 28,344 23, ,000 Parade Technologies Limited 50,354 49, ,500 Shimao Property Holdings Limited 108, , ,000 Sitc International Company Limited 168, , ,000 Springland International Holdings Limited 102,633 41, ,000 Tk Group Holdings Limited 97, , ,000 Wasion Meters Group Limited 10,590 9, ,000 WH Group Limited 54,474 71, ,000 Wonderful Sky Financial Group 66,709 82, Holdings Limited 3,000,819 3,494, MANULIFE GLOBAL FUND 108

111 ASIA VALUE DIVIDEND EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets China 132,000 China Cinda Asset Management H 51,106 49, ,000 China Communications Construction 70,862 65, Company Limited H 1,007,000 China Construction Bank Corp. 728, , ,000 China Life Insurance Company Limited H 123, , ,000 China Machinery Engineering Corp. H 92,155 86, ,627 Chongqing Changan Automobile 369, , Company Limited 121,000 Chongqing Rural Commercial Bank H 82,004 81, ,700 Huayu Automotive Systems Company 57,889 84, Limited A ** 778,000 Petrochina Company Limited 568, , ,000 Ping An Insurance Group Company 269, , of China Limited 425,000 Qingdao Port International H 228, , ,800 Xinjiang Goldwind Science & Technology 261, , Company Limited 147,500 Yangtze Optical Fibre & Cable Joint Stock 183, , Limited H 3,086,923 3,102, Hong Kong 41,500 BOC Hong Kong Holdings Limited 129, , ,000 China Overseas Land & Investment Limited 256, , ,000 China Power International 77,073 65, Development Limited 170,834 China Resources Power Holdings 396, , Company Limited 6,000 Chow Sang Sang Holding 13,825 14, ,000 Convenience Retail Asia Limited 44,134 49, ,110 Far East Consortium 209, , ,000 Far East Horizon Limited 296, , ,000 Goldpac Group Limited 25,595 24, ,280 Hui Xian Real Estate Investment Trust ** 30,494 27, ,000 Hutchison Telecommunications Hong Kong 78,234 80, Holdings Limited 97,000 Jinmao Investments and Jinmao (China) 50,556 52, Investments Holdings Limited 49,500 Smartone Telecommunications 78,798 64, Holding Limited 106,500 XTEP International Holdings 45,728 41, ,733,743 1,767, MANULIFE GLOBAL FUND

112 ASIA VALUE DIVIDEND EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Indonesia 862,700 Bank Pan Indonesia Tbk PT 49,519 63, ,451,800 Bekasi Fajar Industrial Estate Tbk PT 55,899 59, ,000 Indosat TBK PT 106, , ,500 Link Net Tbk PT 112, , ,400 Media Nusantara Citra Tbk PT 70,682 67, ,600 Metropolitan Land TBK PT 10,150 10, ,600 Nusa Raya Cipta Tbk Pt 43,620 17, ,748,000 Panin Life Tbk PT 100, , ,600 Perusahaan Gas Negara Pt 101,402 88, ,300 Total Bangun Persada Tbk PT 31,360 29, ,600 United Tractors Tbk PT 58,763 65, ,300 Waskita Karya Persero Tbk PT 84,198 81, ,500 Xl Axiata Tbk PT 80,887 90, Malaysia 905, , ,400 CB Industrial Product Holding Bhd 31,687 31, ,216 Cimb Group Holdings Bhd 35,892 47, ,050 Mah Sing Group Bhd 109,151 95, ,100 Padini Holdings Bhd 10,073 10, ,000 Tenaga Nasional Bhd 115, , ,800 UOA Development Bhd 66,949 61, , , Philippines 51,200 EEI Corp. 10,017 10, ,000 Megaworld Corp. 50,901 50, ,420 Metropolitan Bank & Trust 103, , ,900 Pryce Corp. 20,052 22, , , Republic of Korea (South) 2,241 Amotech Company Limited 51,647 54, E-Mart Company Limited 45,611 48, Fila Korea Limited 70,866 67, Hyundai Robotics Company Limited 61,111 56, ,374 KB Financial Group Inc. 161, , ,119 Korea Electric Power Corp. 333, , ,003 Maeil Dairies Company Limited 7,201 65, S1 Corp. 85,274 83, Samsung Electronics Company Limited 199, , Samsung Electronics Company 640, , Limited Pfd 1 Samsung Fire & Marine Insurance Company Limited 2,142 Samsung Fire & Marine Insurance Company 168, , Limited 3,381 Sekonix Company Limited 48,169 53, ,521 SK hynix Inc. 44,164 89, ,242 V One Tech Company Limited 174, , ,091,946 2,857, MANULIFE GLOBAL FUND 110

113 ASIA VALUE DIVIDEND EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Singapore 83,700 AIMS AMP Capital Industrial REIT 82,809 89, ,200 Asian Pay Television Trust 99,314 72, ,741 Capitaretail China Trust 78,103 85, ,073 Croesus Retail Trust 65,578 98, ,566 DBS Group Holdings Limited 154, , ,900 Ezion Holdings Limited 32,044 6, ,100 Ips Securex Holdings Limited 78,740 37, ,300 Viva Industrial Trust 79,981 91, ,900 Yangzijiang Shipbuilding Holdings Limited 61,657 59, , , Taiwan 28,655 Advanced Semiconductor Engineering Inc. 31,914 36, ,000 Basso Industry Corp. 126, , ,000 Chilisin Electronics Corp. 60,550 59, ,000 Chipmos Technologies Inc. 52,069 48, ,000 CTBC Financial Holding Company Limited 83, , ,000 FLEXium Interconnect Inc. 38,162 48, ,000 Inventec Company Limited 84,409 86, ,000 Kerry TJ Logistics Company Limited 56,994 52, ,000 King Yuan Electronics Company Limited 194, , Largan Precision Company Limited 71, , ,000 Pegatron Corp. 126, , ,000 Quanta Computer Inc. 83,516 89, ,000 Superalloy Industrial Company Limited 12,127 9, ,000 Taiwan Sakura Corp. 69,393 72, ,000 Taiwan Semiconductor Manufacturing 265, , Company Limited 1,357,267 1,527, Thailand 311,200 AP (Thailand) pcl 60,722 74, ,000 Asia Plus Group Holdings Public Company Limited 2,300 Kang Yong Electric pcl 35,330 36, ,500 Supalai pcl 116, , , , Equities Total 14,150,567 15,643, MANULIFE GLOBAL FUND

114 ASIA VALUE DIVIDEND EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Warrants Equity Malaysia Singapore 53,250 Mah Sing Group Bhd Wts 21/Feb/2020 Str ,860 Ezion Holdings Limited Wts 24/Apr/2020 Str , , Warrants Equity Total 0 2, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 14,150,567 15,645, Portfolio of Investments 14,150,567 15,645, Other Net Assets 1,113, Net Assets 16,758, ** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 254) (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 112

115 ASIA VALUE DIVIDEND EQUITY FUND Investment Objective: The sub-fund aims to achieve capital appreciation through investing primarily in a portfolio of equities and equity-related securities of companies that distribute dividends, and are domiciled in, or derive significant income from, or have significant operations in the Far East ex-japan region ( FarEast in this context bears the same meaning as MSCI Barra ascribes to its index universe under the MSCI AC Far East ex-japan Index it comprises countries or markets including Thailand, Taiwan, South Korea, Singapore, Philippines, Malaysia, Indonesia, Hong Kong and China). These companies are listed or traded on the stock exchanges of the Far East ex-japan region. The underlying investment philosophy for the Sub-Fund is based on the belief that, while markets are inefficient and discrepancies exist in the short-run, prices in the longrun ultimately reflect fundamental values. The Sub-Fund seeks to identify under-valued securities comprising the MSCI AC Far East ex- Japan Index that will benefit from the upside correction between the market s short-term inefficiency and long-term efficiency. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Asia Value Dividend Equity Fund Class AA % Asia Value Dividend Equity Fund Class AA Inc % MSCI AC Far East Free ex-japan Index % PORTFOLIO REVIEW The sub-fund rose 22.7% in the year ended 30 June For reference, the MSCI Far East (ex-japan) Index returned 28.2% over the corresponding period. On a long-term basis, the portfolio delivered an annualized return of 8.9% since inception, compared with 8.1% of the MSCI AC Far East (ex-japan) Index in the same period (both returns are net of fees and are in USD term). During the year, the position in a Korean leading technology hardware company continued to be one of the key contributors supported by significant earnings upward revision in The sub-fund s portfolio manager continues to hold the position on the belief that its leading position in dynamic randomaccess memory (DRAM), negative-and (NAND) and organic light-emitting diode (OLED) products offer strong growth drivers for the company s revenue. Meanwhile, the holding in a leading Chinese property developer was also among the top performance contributors. Despite continued tightening measures in the property space, the company exhibited strong sales (200% year-on-year sales growth for the month of May 2017) and balance sheet management with a below-industry average net gearing of 54% as of end The company also lifted payout ratio from 25% to 30% which supported the sub-fund s dividend thesis. On the flip side, our underweight in the technology sector (average portfolio weight: 14.17%; average index weight: 29.13%), in particular internet stocks, weighed on portfolio performance during the year. The sector has surged remarkably in the period on strong earnings growth and was the key performance contributor for the benchmark Index. However, since internet stocks generally trade at high multiples and pay almost zero dividend, they do not align with the sub-fund s high-dividend theme. Therefore, the portfolio manager assigned a lower-than-index weighting to internet stocks to maintain a stable stream of dividend income. Meanwhile, as the market targeted their attention on internet stocks, many sectors were left underappreciated, creating compelling investment opportunities for value investors. A good example was the consumer sector: in the first half of 2017, three of the sub-fund s holdings in the consumer sector were privatized, which showed that private equities funds were also out looking for undervalued opportunities. It is expected that these companies might be re-listed in a few years at a much higher valuation. MARKET REVIEW In the Chinese market, signs of confidence are returning in the year under review. The first-quarter macro data of 2017 continued to show that the world s second-largest economy is gaining momentum with benign inflation pressure. Activity in China s manufacturing sector picked up further in March 2017 with the official Purchasing Managers Index ( PMI ) rose for the second consecutive month to 51.8, the highest since April 2012, supported by China s increased efforts in providing fiscal stimulus which started in 2016, as well as improving domestic and export demand. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 113 MANULIFE GLOBAL FUND

116 ASIA VALUE DIVIDEND EQUITY FUND In the second quarter of 2017, a series of encouraging macro data signalled further stabilization in China s economy. The official manufacturing PMI stayed in expansionary territory in June for the 11th consecutive month while export surprised on the upside on the back of global trade recovery, rising 8.7% in May in USD terms. Meanwhile, China s retail sales grew 10.7% from a year earlier in May 2017, reflecting the continuous progress in China s shift towards a consumption-driven economy. At the policy front, the Beijing government has made steady progress in pushing ahead supply-side reforms, while stability was once again highlighted as a top policy priority for 2017 at the Politburo meeting. Positive messages were also delivered at the National People s Congress ( NPC ) in March Presenting the government work report at the NPC, Premier Li Keqiang noted that growth stability and currency stability are the top priorities for the year. Amid the transition from a pro-growth stance in 2016 to growth stability in 2017, China set its growth target for 2017 at a more reasonable level at 6.5% and the sub-fund s portfolio manager believes this is achievable. With the recent macro improvement, this has also created more room for policymakers to tackle financial excesses and overcapacity. Against this backdrop, China is expected to maintain a more prudent monetary policy and will focus on risk control measures, such as financial regulation strengthening and the speed up of supply-side reform. While deleveraging will constrain liquidity in the market, it is believed that these initiatives are positive to China over the long run. In the Asia ex-japan market, dividend pay-outs have been on the rise underpinned by Asian companies stronger financial position and returning earnings growth. The market extended its strength in the second quarter of 2017 with an 8.3% return in the MSCI Asia ex Japan Index ( the Index ) while in the high dividend space, the MSCI Asia ex Japan High Dividend Yield Index was up 5.6%. Year-to-date as at 30 June 2017, the two indices gained 22.8% and 17.6%, respectively. The strong performance was underpinned by broad-based earnings upward revisions and external demand recovery within the region. In South Korea, stockmarket bounced to fresh record highs in the second quarter of 2017 amid a recovering economic cycle, robust exports and better sentiment at households and businesses. On the macro front, the Nikkei South Korea Manufacturing Purchasing Managers Index (PMI) entered expansionary territory for the first time in 11 months in June while export extended an uptrend for the eighth month in a row by expanding 13.7% year-on-year. During the quarter, Samsung Electronics has announced a positive shareholder return policy, which further supported its rerating potential in addition to its strong fundamentals. In the medium term, other Korean corporations may follow this positive exemplary change and potentially narrow the valuation discount in the Korea market within the region. In ASEAN where market performance is lagging within the Asia region, there are positive signs of economic recovery with gross domestic product (GDP) accelerating in the first quarter of 2017 (4.7% year-on-year growth versus 4.5% in the fourth quarter of 2016). Both Malaysia and Thailand s firstquarter 2017 GDP growth beat consensus expectation in the second quarter of Despite the relatively rich valuations, the sub-fund s portfolio manager turned more positive on the financial sector in selective ASEAN markets, such as banks in Indonesian and the Philippines, as these two markets offer secular strong loan growth of over 10% and valuations are attractive with a price-to-book ratio of 1.5 times. OUTLOOK Looking forward to the second half of the year, the portfolio manager remains constructive on Asia ex Japan equities despite their strong market performance in the first half. With the latest consensus 2017 estimated earnings growth of 18.1% for the MSCI Asia ex Japan Index (versus 13.2% in January), the portfolio manager expects the region s earnings growth will continue to be the fundamental driver. This, together with improvement in cashflow generation, is supportive for dividend growth within the region. Although the 12-month forward price-to-earnings (P/E) ratio of the MSCI Asia ex Japan index has normalized to 12.9 times, it is still trading at an attractive level relative to developed markets and most emerging countries. MANULIFE GLOBAL FUND 114

117 ASIAN EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Australia 181,410 QBE Insurance Group Limited 1,531,756 1,647, ,531,756 1,647, Bermuda 1,220,000 Brilliance China Automotive Holdings Limited 2,185,148 2,222, ,185,148 2,222, Cayman Islands 61,456 Alibaba Group Holding Limited 5,835,430 8,631, ,800 Gourmet Master Company Limited 1,695,828 1,992, ,000 Longfor Properties Company Limited 1,493,958 1,865, ,000 Tencent Holdings Limited 2,876,306 5,507, ,901,522 17,997, China 7,181,000 Bank of China Limited H 3,593,408 3,523, ,740,000 China Petroleum & Chemical Corp. 2,230,464 2,137, ,447,000 China Railway Construction Corp. Limited 1,625,726 1,887, ,402,000 China South Locomotive and 2,311,111 2,160, Rolling Stock Corp. 298,976 Hangzhou Hikvision Digital Technology 1,063,335 1,423, Company Limited ** 632,000 Ping An Insurance Group Company of 3,374,373 4,165, China Limited 394,651 Saic Motor Corp. A ** 1,761,907 1,806, ,960,324 17,103, Hong Kong 387,800 AIA Group Limited 2,132,621 2,834, ,200 Asm Pacific Technology Limited 1,291,849 1,786, ,000 BOC Hong Kong Holdings Limited 2,327,720 2,913, ,000 Galaxy Entertainment Group Limited 2,094,361 3,230, ,344,000 Guangdong Investment Limited 2,020,357 1,852, ,000 Techtronic Industries Company 2,811,398 3,292, ,678,306 15,910, India 80,014 Grasim Industries Limited 1,405,216 1,537, ,515 Hdfc Bank Limited 1,514,901 1,827, ,126 Hindustan Lever Limited 2,246,738 2,774, ,808 Icici Prudential Life Insurance Company 1,833,895 2,318, ,848 Maruti Suzuki India Limited 1,882,431 3,332, ,477 Sobha Developers Limited 1,144,566 1,057, ,027,747 12,848, MANULIFE GLOBAL FUND

118 ASIAN EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Indonesia 19,881,000 Ciputra Development Tbk PT 1,937,116 1,745, ,033,000 Indofood Sukses Makmur Tbk Pt 2,176,387 2,602, ,081,000 Perusahaan Perkebunan London Sumatra 984, , Indonesia Tbk 6,208,100 Telekomunikasi Indonesia Tbk Pt 1,757,851 2,105, ,102,200 Total Bangun Persada Tbk PT 1,930,412 1,948, ,786,505 9,232, Malaysia 1,413,000 Genting Malaysia Bhd 1,602,911 1,810, ,602,911 1,810, Philippines 10,096,000 Bloomberry Resorts Corp. 1,853,026 1,850, ,853,026 1,850, Republic of Korea (South) 2,975 Amorepacific Corp. 987, , ,668 E-Mart Company Limited 1,783,099 1,981, ,280 Hyundai Motor Company Limited 2,445,249 2,687, ,466 KB Financial Group Inc. 1,740,770 2,192, ,510 Mando Corp. 1,716,081 1,690, ,560 Medy-Tox Inc. 1,130,742 1,252, ,790 Posco Company Limited 1,800,051 1,954, ,385 Samsung Electronics Company Limited 5,785,665 11,187, ,388,820 23,736, Singapore 603,000 Capitaland Limited 1,585,618 1,533, ,200 Venture Corp. Limited 1,223,027 1,761, ,808,645 3,294, Taiwan 1,828,000 China Life Insurance Company Limited 1,724,719 1,820, FLEXium Interconnect Inc ,000 Hon Hai Precision Industry Company Limited 3,235,832 3,726, ,000 President Chain Store Corp. 1,420,620 1,447, ,000 Taiwan Paiho Limited 1,978,955 2,378, ,262,000 Taiwan Semiconductor Manufacturing 5,829,207 8,649, Company Limited 14,189,336 18,023, Thailand 136,000 PTT pcl nvdr NVDR 1,390,638 1,481, ,390,638 1,481, United Kingdom 298,000 HSBC Holdings plc 2,468,092 2,773, ,468,092 2,773, Equities Total 104,772, ,933, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 104,772, ,933, MANULIFE GLOBAL FUND 116

119 ASIAN EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Other transferable securities and money market instruments (2) Equities Cayman Islands 351,600 China Metal Recycling Holdings Limited a 370, , Equities Total 370, Total Other transferable securities and money market instruments (2) 370, Portfolio of Investments 105,143, ,933, Other Net Assets 1,845, Net Assets 131,778, ** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 254) a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. 117 MANULIFE GLOBAL FUND

120 ASIAN EQUITY FUND Investment Objective: The sub-fund aims to achieve capital growth by investing in a diversified portfolio of securities of companies listed on stock markets throughout Asia, including those in Australia, Hong Kong, Indonesia, Malaysia, New Zealand, the People s Republic of China, the Philippines, Singapore, South Korea, Taiwan and Thailand, but not any of the stock exchanges in Japan. A proportion of the subfund may be invested in warrants and convertible bonds issued by, or in respect of, such companies. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Asian Equity Fund Class A % Asian Equity Fund Class AA % Asian Equity Fund Class I % Asian Equity Custom Benchmark % PERFORMANCE FROM 13 SEPTEMBER 2016 TO 30 JUNE 2017 Asian Equity Fund Class I % PORTFOLIO REVIEW Stock selection in South Korea, Taiwan, and China negatively impacted performance. However, this was partly offset by stock selection in India, Malaysia, and the underweight in Malaysia. The top contributor was a South Korean semiconductor and smartphone maker which consistently reported better-than-expected quarterly earnings driven by the semiconductor business. Furthermore, the unveiling of its highly anticipated new smartphone models and its announcement to cancel treasury shares were well-received by the market. Another contributor was an Indian automobile manufacturer which consistently exhibited strong volume growth throughout the period in review. The sub-fund s portfolio manager (PM) expects the company to maintain its dominant position driven by its improving product mix and the country s strong domestic consumption. The main detractor was a South Korean cosmetics and skincare producer on the back of China s travel ban of South Korea considering geopolitical tensions. The PM expects South Korea-China relations to improve, and its global expansion plans to push through for the remainder of the year. A Hong Konglisted Chinese utilities operator negatively impacted performance due to a general lack of interest on the defensive high yield sector and its plans of an acquisition which was considered expensive by investors. The company s good fundamentals remain intact as it generates a steady cash flow and income stream, and consistently delivers a decent dividend yield to shareholders. From a sector perspective, the key detractors were stock selection in financials, industrials, and real estate. However, stock selection in information technology and consumer discretionary, the overweight in information technology, and underweight in utilities contributed positively to performance. MARKET REVIEW Asia ex Japan equities had a strong start during the period in review due to companies reporting mostly better-than-expected earnings during the third quarter reporting season. By the latter part of 2016, Asian markets reacted negatively to the strengthening dollar and higher bond yields post Donald Trump s victory, which raised several concerns on the impact of his campaign platforms to inflation and the future path of the Fed hiking cycle, as well on the future trade relations between the US and Asian economies. During the first half of 2017, strong positive sentiment buoyed the Asian markets due to the notable improvement in economic data across the region as well as on improved earnings outlook. Despite the Fed hiking policy rates thrice by 25 basis points (bps) each in December, March, and June to 1.25%, the central bank maintained a dovish outlook on the tightening cycle. Oil prices were volatile as Organization of the Petroleum Exporting Countries (OPEC) and non-opec members decision to extend their production cut was offset by mounting concerns on weak demand and a supply glut. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 118

121 ASIAN EQUITY FUND China s first quarter GDP grew faster than expected at 6.9% year-on-year (relative to consensus estimates of 6.8%) due to robust infrastructure spending and the rising property market. In June, MSCI announced the inclusion of the country s A-shares in their global equity indices in two phases starting May 2018; it is a vote of confidence for China to further financial reforms and develop capital markets. The country s sovereign credit rating was downgraded by Moody s in May by one notch (to A1) due to expectations of a worsening debt situation along with slowing growth. However, its rating outlook was upgraded to stable from negative; investors reaction was muted despite the downgrade. Producer price index (PPI) finally rose from a 55-month deflation in September and recorded eight consecutive months of growth by May; this is supportive of pricing power returning to corporates, as well as an improvement of the banking industry s asset quality. Hong Kong s central bank raised its policy rates thrice by 25bps each in line with the Fed s policy rate move. Moody s also downgraded the state s sovereign credit rating by one notch (to Aa2) given its close economic linkages with China. Retail sales rose from a 2-year long decline in March and remained in positive territory for three consecutive months in May driven by resilient local demand and improving inbound tourism. Taiwan s first quarter GDP growth registered at 2.6% year-on-year due to resilient domestic consumption and robust exports. Exports in May posted its eighth consecutive month of growth on the back of solid demand for machinery, integrated circuits, and base metals. South Korea was the best performing market due to solid first quarter earnings results. First quarter GDP growth was higher than expected at 2.7% year-on-year (relative to consensus estimate of 2.6%) due to better construction investment. Political noise abated with the successful conclusion of the presidential election. Exports in May jumped 13.4% year-on-year, growing for a seventh consecutive month, driven by solid demand for electronics components. Southeast Asian economies posted some of the fastest growth rates in 2016 and during the first quarter of 2017, with a strong recovery in both manufacturing and exports. Indonesia s sovereign credit rating was upgraded by S&P in May by one notch (to BBB-), achieving full investment grade status among the major credit rating agencies. The tax amnesty programme, which was launched last July, has concluded by the end of March, with total government revenue amounting to IDR411 trillion (around US$31 billion) and accounting for around 35% of the estimated budget deficit for the 2017 fiscal year. In October, the Thai King passed away after 70 years of rule. In India, the dominant victory of the ruling party in the most recent state elections was deemed a positive development due to strengthened policy continuity, as well as a bigger scope to push for more reforms and government spending. In May, goods and services tax (GST) rates were announced for most goods, where rates for several sectors were higher than expected; however, consumer staples were kept at the lowest tax bracket. In November, the government demonetised high-value currency notes (INR500 and INR1,000) to address black money and corruption. Australia s GDP in the first quarter grew 1.7% year-on-year, which was slower than the previous quarter s growth at 2.4% but better than market estimate of 1.6% given soft household spending and the drag in net trade. The Reserve Bank of Australia (RBA) cut its benchmark rate by 25bps to 1.5% in August, as inflation remains well below its target range. OUTLOOK Following a long rally streak across markets, the PM expects stock selection to take centre stage going forward. Companies with clear and sustainable earnings trends that are trading on reasonable valuations are expected to outperform value cyclical stocks. In China, the PM managed to find compelling opportunities through the Shanghai and Shenzhen connect platform. The PM s focus is to invest in companies with a strong brand presence and that possess a dominant market share both locally and internationally. These companies also generate strong cash flow and deliver consistent dividend growth over the years. More importantly, valuations remain reasonable relative to their growth profile. The PM has also identified the mobilisation of China s Belt and Road Initiatives as an opportunity. The PM believes that key leading state-owned enterprises will benefit from China s initiative to spread economic development across developing nations. 119 MANULIFE GLOBAL FUND

122 ASIAN EQUITY FUND South Korea is gaining more attention from the investment community as the country concluded its presidential election. The market widely expects the new administration to implement wider economic reforms and improve corporate governance of South Korean companies. Corporate earnings are also expected to improve on the back of strong exports as well as recovery in domestic consumption. Valuations remain attractive and the market has the potential to rerate as companies embark on investor friendly capital management initiatives. For India, the PM believes that future earnings growth momentum will be driven by increased formalisation of the domestic economy; and greater government spending and enhanced rural productivity due to targeted government spending. Furthermore, household s financial savings are expected to grow due to the formalisation of the economy. The PM expects these savings will largely be allocated to equities over the next few years due to current underinvestment in equities and prospects of better tax-adjusted returns relative to other asset classes. The projected inflow of funds should be supportive of the equity market. Standard & Poor s finally assigned an investment grade to Indonesia s sovereign credit rating. This should enable the inflows of pent up foreign investments into the country in due course. The PM sees this as a positive development for the country. The economy is gradually feeling the positive impact from past economic reforms. The current account balance and foreign currency reserves continue to improve, and the Finance Minister has fortified the country s fiscal position by planning a reasonable budget and strictly enforced tax reform initiatives. The PM believes the potential of the country and economy remain under-appreciated, and believes this market has a strong upside potential once the impact from the improvement in the economy trickles down to corporate earnings. MANULIFE GLOBAL FUND 120

123 ASIAN SMALL CAP EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Australia 244,749 Altium Limited 1,361,787 1,612, ,000 Aristocrat Leisure Limited 1,449,259 2,185, ,804,695 Ausdrill Limited 2,264,035 2,545, ,000,000 Aveo Group 2,160,370 2,137, ,624 Brickworks Limited 2,384,016 2,360, ,150,000 Cleanaway Waste Management Limited 1,811,419 2,272, ,000 Corporate Travel Management Limited 2,726,885 2,892, ,000 Costa Group Holdings Limited 2,149,858 2,475, ,000 Futuris Corp. Limited 2,253,566 2,467, ,000 Iluka Resources Limited 2,582,187 2,976, ,000 Link Administration Holdings Limited 2,030,054 2,034, ,209,376 Mesoblast Limited 3,264,198 3,533, ,000 Mineral Resources Limited 2,824,261 2,836, ,401 Nanosonics Limited 1,132, , ,942 Nextdc Limited 1,605,926 1,910, ,000,000 Nine Entertainment Company 2,137,592 2,121, Holdings Limited 434,233 Pepper Group Limited 1,072,231 1,135, ,247 Smartgroup Corp. Limited 1,209,106 1,285, ,000 Speedcast International Limited 2,513,940 2,555, ,000 Steadfast Group Limited 1,769,266 2,008, ,450,000 Westgold Resources Limited 2,507,300 2,051, ,209,841 46,386, Bermuda 681,500 Johnson Electric Holdings Limited 2,124,385 2,370, ,124,385 2,370, Cayman Islands 260,000 Airtac International Group 2,945,430 3,072, ,794,000 Av Concept Holdings Limited 823,551 1,009, ,000 Baozun Inc. ADR 1,544,684 2,323, ,000 Beigene Limited ADR 2,267,594 2,513, ,134,000 China Lilang Limited 2,179,375 2,087, ,126,000 CIMC Enric Holdings Limited 3,365,611 3,204, ,798,000 Fufeng Group Limited 3,442,435 3,657, ,110 Gourmet Master Company Limited 2,270,345 3,063, ,953,000 Grand Baoxin Auto Group Limited 1,775,164 1,898, ,000 Haitian International Holdings Limited 1,891,570 2,791, ,706 Hutchison China Meditech Limited 1,554,685 2,397, ,000 Momo Inc. 2,622,705 2,501, ,000 Noah Holdings Limited 2,512,820 2,509, ,330,000 Shimao Property Holdings Limited 2,338,964 2,276, ,000 Silergy Corp. 1,984,733 2,773, ,000 Silicon Motion Technology Corp. ADR 2,216,135 2,173, ,016,000 Ten Pao Group Holdings Limited 1,550,892 2,765, ,690,000 Tk Group Holdings Limited 1,061,579 1,910, ,000 Vhq Media Holdings Limited 2,440,097 2,095, ,797,000 Zhongsheng Group Holdings Limited 1,746,280 3,351, ,534,649 50,378, MANULIFE GLOBAL FUND

124 ASIAN SMALL CAP EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets China 419,927 Guangzhou Holike Creative A ** 2,122,122 2,163, ,668,000 Yangtze Optical Fibre & Cable Joint 3,370,104 3,542, Stock Limited H 5,492,226 5,706, Hong Kong 3,424,000 K Wah International Holdings Limited 1,906,756 2,079, ,500 Kingboard Chemical Holdings Limited 2,886,221 3,730, ,051,000 Kingboard Laminates Holdings Limited 2,232,052 2,474, ,400,000 Lee & Man Paper Manufacturing Limited 2,245,129 2,228, ,000 Luk Fook Holdings International Limited 2,900,246 3,389, ,100,000 Man Wah Holdings Limited 3,589,601 3,681, ,612,000 Road King Infrastructure Limited 2,228,097 1,990, ,158,000 Xinyi Glass Holdings Limited 3,365,912 4,117, ,354,014 23,693, India 66,000 Aditya Birla Nuvo Limited 1,751,043 1,898, ,000 Arvind Mills Limited 1,831,980 1,809, ,708 Bata India Limited 1,245,612 1,560, ,405 Brigade Enterprises Limited 1,541,985 1,644, ,090,000 Chambal Fertilizers & Chemicals Limited 2,154,415 1,978, ,000 Dewan Housing Finance Corp. Limited 1,074,798 1,623, ,000 Escorts Limited 1,358,597 1,676, ,000 Indiabulls Housing Finance 1,866,784 1,798, ,000 JM Financial Limited 1,185,802 1,090, ,000 Kajaria Ceramics Limited 2,205,645 1,955, ,000 Lakshmi Vilas Bank Limited 2,337,156 2,333, ,170,000 Manappuram Gen Finance & Leasing 1,708,870 1,773, ,987 Mangalore Refinery & Petrochemicals Limited 1,282,996 1,650, ,992 PI Industries Limited 1,458,752 1,839, ,000 Pvr Limited 777,413 1,133, ,597,777 Trident Limited 1,393,104 1,818, ,725 VA Tech Wabag Limited 2,248,423 2,905, ,500,000 Welspun India Limited 2,052,334 1,919, ,475,709 32,408, Indonesia 8,800,000 Bank Tabungan Negara Persero Tbk Pt 1,785,394 1,716, ,558,600 Bekasi Fajar Industrial Estate Tbk PT 2,701,668 2,704, ,000,000 Ciputra Development Tbk PT 82,905 87, ,396,600 Indo Tambangraya Megah PT 1,878,774 1,812, ,525,900 Medco Energi International Tbk PT 575, , ,751,300 Mitra Adiperkasa Tbk PT 1,754,336 1,913, ,933,200 Panin Life Tbk PT 1,500,973 1,631, ,279,071 10,816, Malaysia 3,080,000 Airasia Bhd 1,756,175 2,331, ,001,000 Inari Amertron Bhd 2,330,915 2,949, ,044,850 My Eg Services Bhd 1,383,924 2,063, ,471,014 7,345, MANULIFE GLOBAL FUND 122

125 ASIAN SMALL CAP EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets New Zealand 254,825 Fisher & Paykel Healthcare Corp. 1,642,937 2,137, ,000 Tourism Holdings Limited 2,340,529 2,676, ,983,466 4,814, Philippines 7,400,000 Bloomberry Resorts Corp. 1,478,479 1,356, ,169,900 Metro Pacific Investments Corp. 1,512,523 1,541, ,991,002 2,897, Republic of Korea (South) 98,432 Amotech Company Limited 2,494,638 2,413, ,442 Autech Corp. 1,621,044 1,968, ,200 Dongbu Hitek Company Limited 2,265,609 2,442, ,081 F&F Company Limited 596, , ,600 Hugel Inc. 2,068,294 2,738, ,552 ISC Company Limited 1,378,398 2,293, ,000 Jusung Engineering Company Limited 1,432,676 1,901, ,000 Koh Young Technology Inc. 2,851,671 2,989, ,000 LS Industrial Systems Company Limited 1,609,882 1,853, ,500 Medy-Tox Inc. 2,405,731 3,670, ,000 Meritz Securities Company Limited 2,349,483 2,432, ,854 Philoptics Company Limited 988,705 1,025, ,000 Posco 2,179,575 2,146, ,000 Samjin Pharmaceutical Company Limited 2,371,907 2,365, ,830 SFA Engineering Corp. 2,068,097 2,075, ,000 Shinsegae Company Limited 2,781,182 2,607, ,200 Soulbrain Company Limited 2,756,893 3,199, ,000 Tes Company Limited 1,840,396 1,975, ,589 Vitzrocell Company Limited 3,517,340 5,570, ,300 Yuhan Corp. 2,365,473 2,429, ,943,431 48,655, Singapore 294,000 Venture Corp. Limited 2,045,955 2,573, Taiwan 2,045,955 2,573, ,000 Accton Technology Corp. 1,987,000 2,147, ,410,000 Alpha Networks Inc. 2,640,566 3,116, ,000 Chroma ATE Inc. 2,165,098 2,267, ,000 Ctci Corp. 646, , Cub Elecparts Inc ,000,000 FDC International Hotels Corporation 2,419,036 2,238, ,000 Materials Analysis Technology Inc. 1,793,924 1,890, ,148,304 Mitac Holdings Corp. 1,919,771 2,743, ,000 Nanya Technology Corp. 1,001,969 1,120, ,029,000 Sunonwealth Electric Machine 2,689,699 2,621, ,808,000 Tyntek Corp. 2,402,438 2,331, ,000 Wistron NeWeb Corp. 2,258,351 2,272, ,000 Yageo Corp. 1,236,964 2,003, ,161,015 25,402, MANULIFE GLOBAL FUND

126 ASIAN SMALL CAP EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Thailand 1,190,000 Hana Microelectronics pcl 1,543,248 1,760, ,543,750 Siam Global House pcl 1,437,535 1,512, ,000,000 Star Petroleum Refining pcl 1,712,456 1,719, ,660,000 Tipco Asphalt pcl NVDR 2,616,045 2,434, ,309,284 7,427, United States 603,092 Magnachip Semiconductor Corp. 3,026,995 5,865, ,026,995 5,865, Equities Total 244,402, ,741, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 244,402, ,741, Other transferable securities and money market instruments (2) Equities Cayman Islands 1,065,600 China Metal Recycling Holdings Limited a 1,127, ,127, Equities Total 1,127, Total Other transferable securities and money market instruments (2) 1,127, Portfolio of Investments 245,529, ,741, Other Net Assets 10,530, Net Assets 287,271, ** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 254) a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 124

127 ASIAN SMALL CAP EQUITY FUND Investment Objective: The sub-fund aims to provide long-term capital growth for those investors who hold a long term investment view and are prepared to accept significant fluctuations in the value of their investments.the sub-fund s investment portfolio will be made on a diversified basis, for which its underlying securities will consist mainly of equity related investments and equities of smaller capitalization companies in the Asian and/or Pacific region. A proportion of the sub-fund may be invested in warrants, bonds and convertible bonds issued by, or in respect of, such companies. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Asian Small Cap Equity Fund Class AA % Asian Small Cap Equity Fund Class AA (HKD) % Asian Small Cap Equity Fund Class I % MSCI Asia Pacific ex-japan Small Cap Index % PORTFOLIO REVIEW As experienced historically, one of the main catalysts for the sub-fund has been strong earnings results and positive earnings revisions. Thus far in 2017, the sub-fund s portfolio manager (PM) has seen robust performance of growth and earnings momentum, which underlies factors that characterise the subfund and is reflective of the improving Asian economic environment. Conversely, the latter half of 2016 witnessed the outperformance of value and underperformance of growth and small cap equities. During significant market declines, less liquid small cap equities typically underperform as occurred in Asia following the US presidential election in November, as investors particularly feared the potential adoption of trade policies that would be negative for Asia. Throughout the 12-month period, the subfund s performance benefitted from strong corporate earnings results, and positive earnings revisions from analysts. Stock selection was the largest positive contributor to outperformance, led by China, Indonesia, and South Korea. Although Malaysia was a small part of the portfolio, stock selection there contributed strongly. Overall, the sub-fund s overweight and stock selection in technology and consumer discretionary in 2017 was a significant positive contributor for the period under review. The sub-fund s Hong Kong-listed Chinese holdings generated very strong performance from the consumer discretionary, industrials, and information technology sectors. Several of the sub-fund s technology holdings have benefitted from various earnings drivers, including technology migration, dual cameras on smartphones, new customer additions, and improved product pricing. Near the end of 2016, the PM made a tactical change and increased the sub-fund s South Korean weighting. South Korea was the worst performing small cap market in Asia in 2016 due to some forced selling on the part of domestic institutions and higher valuations than the large cap companies. However, valuations at that time reached levels not seen in over a year. In the PM s meetings with companies, the PM identified an inflection point in earnings for Since then, flows have returned to the small cap Kosdaq names and earnings have continued to strengthen. The technology companies in that market are seeing a pull-in in orders from their local industry-leading companies, as demand for products including 3D NAND, DRAM, and AMOLED has surpassed expectations. The largest contributor to performance is one of the sub-fund s larger positions, a US-listed South Korean semiconductor manufacturer. Global capacity for its semiconductor foundry capacity is extremely tight, and gross margin and cash flow are markedly improving. Its advanced technology component supplied to the world s largest manufacturer of Organic Light-Emitting Diode (OLED) displays for smartphone brands will be a key driver for earnings in the second half of The leading botox producers in the market also performed strongly on the back of better-than-expected industry demand. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 125 MANULIFE GLOBAL FUND

128 ASIAN SMALL CAP EQUITY FUND This is the first year in seven where the sub-fund underperformed in Taiwan, primarily due to technology performance in the second half of In the latter part of 2016, investors took profit on several outperforming small cap equities in this market. However, a turnaround took place in the first half of 2017 with strong outperformance coming from both the materials and technology sectors, as well as certain non-technology sectors. The underweight and stock selection in Australia detracted from performance in the latter half of During this period, several small cap equities in that market experienced sharp price declines due to redemptions from domestic small cap funds as well as some manager changes at these funds. The subfund s holdings were not spared from these technical selling pressures. The sub-fund s performance in India also lagged the market. Several holdings were hit hard by demonetisation, particularly in consumer discretionary and financials, and trailed the market in the upturn. MARKET REVIEW Asia Pacific ex Japan small equities had a strong start during the period in review due to companies reporting mostly better-than-expected earnings during the third quarter reporting season. By the latter part of 2016, Asian markets reacted negatively to the strengthening dollar and higher bond yields post Donald Trump s victory. Investors became concerned that Trump s campaign promises would lead to inflation and a higher trajectory of Fed interest rate increases. There was also uncertainty regarding trade relations between US and the Asian economies. During the first half of 2017, strong positive sentiment buoyed the Asian markets due to the notable improvement in economic data across the region as well as on improved first quarter earnings. Foreign investor flows to regional equities picked up markedly. Despite the Fed hiking policy rates by 25bps each in December 2016, March 2017, and June 2017, the central bank maintained a dovish outlook on the tightening cycle. China s growth remained strong over the reported period, meeting or beating consensus estimates for the past six quarters. China s first and second quarter GDP grew by a faster-than-expected 6.9% yearon-year due to robust infrastructure spending and the rising property market. In June, MSCI announced the inclusion of the country s A-shares in their global equity indices starting in June 2018; it is a vote of confidence for China to further financial reforms and develop capital markets. Producer price index (PPI) rose from a 55-month deflation in September 2016 and recorded eight consecutive months of growth by May; this is supportive of pricing power returning to corporates, as experienced by a number of the Chinese industrial and material companies in the subfund. Hong Kong s central bank raised its policy rates thrice by 25bps each in line with the Fed s policy rate move. Retail sales rose from a 2-year long decline in March and remained in positive territory for three consecutive months in May driven by resilient local demand and improving inbound tourism. Taiwan s first quarter GDP growth registered at 2.6% year-on-year due to resilient domestic consumption and robust exports. Exports in May posted its eighth consecutive month of growth on the back of solid demand for machinery, integrated circuits, and base metals. South Korea first quarter GDP growth was higher than expected at 2.7% year-on-year (relative to consensus estimate of 2.6%) due to better construction investment. Political noise abated with the successful conclusion of the presidential election. Exports in May jumped 13.4% year-on-year, growing for a seventh consecutive month, driven by solid demand for electronics components. Southeast Asian economies posted some of the fastest growth rates in 2016 and during the first quarter of 2017, with a strong recovery in both manufacturing and exports. Indonesia s sovereign credit rating was upgraded by S&P in May by one notch (to BBB-), achieving full investment grade status among the major credit rating agencies. MANULIFE GLOBAL FUND 126

129 ASIAN SMALL CAP EQUITY FUND In India, the dominant victory of the ruling party in the most recent state elections was deemed a positive development due to strengthened policy continuity, as well as a bigger scope to push for more reforms and government spending. In May, goods and services tax (GST) rates were announced for most goods, where rates for several sectors were higher than expected; however, consumer staples were kept at the lowest tax bracket. In November, the government demonetised high-value currency notes (INR500 and INR1,000) to address black money and corruption. Australia s GDP in the first quarter grew 1.7% year-on-year, which was slower than the previous quarter s growth at 2.4% but better than market estimate of 1.6% given soft household spending and the drag in net trade. The Reserve Bank of Australia (RBA) cut its benchmark rate by 25bps to 1.5% in August, as inflation remains well below its target range. OUTLOOK Following the strong performance of the Asian markets year to date, the PM expects some consolidation in the short-term. Nevertheless, the PM remains positive because several companies are reporting better-than-expected earnings, and flows continue returning to the region. The Asian region has seen improved earnings revisions every month for the past ten months, a situation not seen in the previous five years of earnings downgrades. The weaker US dollar provides a positive backdrop for the region, as does the export recovery and improvement in purchasing manager indices (PMIs) throughout the region. The PM s company visits in many cases indicate that this positive growth will sustain well into As a result, the PM will remain highly constructive on the region. 127 MANULIFE GLOBAL FUND

130 CHINA VALUE FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Bermuda 2,652,000 Brilliance China Automotive Holdings Limited 4,496,775 4,830, ,698,000 CGN Meiya Power Holdings 4,344,272 2,699, Company Limited 571,000 Ck Infrastructure Holdings 5,059,618 4,798, ,764,000 Haitong International Securities 3,673,362 3,994, Group Limited 6,107,500 Luye Pharma Group Limited 5,785,112 3,348, ,900 Vtech Holdings Limited 833,098 1,044, ,192,237 20,716, Cayman Islands 395,000 3SBio Inc. 436, , ,894 Alibaba Group Holding Limited 30,878,473 41,698, ,033,440 Cheung Kong Property Holdings Limited 9,493,934 15,928, ,298,000 China Mengniu Dairy Company Limited 2,587,728 2,544, ,849,555 China Resources Land Limited 7,033,547 8,304, ,940 CK Hutchison Holdings Limited 7,238,355 10,054, ,179 Fanhua Inc. 1,346,144 1,388, ,432,500 HKBN Limited 1,814,056 1,433, ,166,000 HKT Limited 2,833,260 2,841, ,500 Lifestyle International Holdings Limited 681, , ,600,400 Mgm China Holdings Limited 5,254,008 5,782, ,432 New Oriental Education & Technology 4,238,945 4,753, Group ADR 16,916,500 Real Gold Mining Limited a 27,921, , ,227,200 Sands China Limited 4,844,975 5,620, ,471,000 Shimao Property Holdings Limited 9,557,588 7,651, ,127,400 Tencent Holdings Limited 37,530,018 76,088, ,000 Vipshop Holdings Limited 3,921,600 3,153, ,639,500 WH Group Limited 2,792,351 3,673, ,403, ,911, China 881,715 Anhui Gujing Distillery Company B 3,032,838 3,807, ,756,000 Bank of China Limited H 21,431,285 22,939, ,568,000 BBMG Corp. 4,354,367 4,829, ,162 Changyou.com Limited ADR 3,539,151 4,723, ,822,000 China Communications Services 5,419,110 6,238, Corp. Limited H 29,959,000 China Construction Bank Corp. 22,735,122 23,218, ,200,000 China Eastern Airlines Corp. Limited 1,911,523 1,975, ,521,000 China Life Insurance Company Limited H 11,243,015 10,757, ,172,000 China Longyuan Power Group Corp. 5,605,002 3,763, ,021,500 China Merchants Bank Company Limited H 7,234,234 9,115, MANULIFE GLOBAL FUND 128

131 CHINA VALUE FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets China (continued) 1,475,577 China National Accord Medicines 3,961,785 8,593, Corp. Limited 8,856,000 China Petroleum & Chemical Corp. 7,254,555 6,908, ,900,900 China South Locomotive and Rolling 2,365,061 3,507, Stock Corp. 1,137,223 Chongqing Changan Automobile Company 1,117,486 1,500, Limited 2,661,076 Daqin Railway Company Limited A ** 2,954,398 3,291, ,212,000 Fuyao Glass Industry Group H 2,664,880 4,642, ,107,857 Fuyao Glass Industry Group 11,903,260 19,607, Company Limited A ** 3,152,000 Guangshen Railway Company Limited H 1,879,153 1,562, ,000 Guangzhou Pharmaceutical Company Limited 2,880,899 2,731, ,200 Guangzhou R&f Properties Company Limited 1,340,235 1,273, ,306,000 Guodian Technology & Environment Group 4,591,174 1,289, Corp. Limited H 24,856,000 Huaneng Renewables Corp. H 8,712,533 7,673, ,988,200 Huatai Securities Company Limited H 6,360,502 3,820, ,907,160 Industrial & Commercial Bank of China 12,155,886 12,764, ,436,804 Inner Mongolia Yili Industrial Group Company 3,557,274 4,572, Limited A ** 162,282 Kweichow Moutai Company Limited A ** 7,399,823 11,287, ,545,200 New China Life Insurance Company H 15,478,559 23,115, ,304,000 Petrochina Company Limited 39,141,151 22,842, ,131,500 Ping An Insurance Group Company of 5,668,070 7,457, China Limited 3,970,007 Qingdao Haier Company Limited A ** 8,466,856 8,807, ,800 Red Star Macalline Group H 1,011, , ,469 Shanghai Mechanical & Electrical Industry 1,893,558 1,371, Company B 957,100 Shanghai Pharmaceuticals Holding 2,613,509 2,850, Company Limited 3,559,000 Sinotrans Limited 1,720,616 1,823, ,598, ,536, MANULIFE GLOBAL FUND

132 CHINA VALUE FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Hong Kong 308,400 Asm Pacific Technology Limited 4,442,996 4,167, ,589,000 BOC Hong Kong Holdings Limited 11,316,727 17,171, ,966,000 China Everbright Limited 11,956,952 12,992, ,246,500 China Mobile Hong Kong Limited 25,063,250 23,842, ,000 China Resources Enterprise Limited 1,761,045 1,660, ,716,647 China Taiping Insurance Holdings 11,157,962 9,417, Company Limited 6,734,000 China Unicom Hong Kong Limited 9,734,886 10,006, ,434,000 CSPC Pharmaceutical Group Limited 3,217,453 7,935, ,120,000 Galaxy Entertainment Group Limited 4,215,966 6,800, ,262 Hong Kong Exchanges and Clearing Limited 5,019,899 5,280, ,644,000 Hutchison Telecommunications Hong Kong 919, , Holdings Limited 39,500 Jardine Matheson Holdings Limited 2,396,786 2,535, ,400 Jardine Strategic Holdings Limited 2,832,272 3,310, ,000 Kerry Properties Limited 988, , ,480,000 Lee & Man Paper Manufacturing Limited 4,832,802 5,089, ,000 Luk Fook Holdings International Limited 2,869,418 2,989, ,698,800 Man Wah Holdings Limited 3,207,709 3,321, ,275,000 New World Development Limited 4,193,938 4,157, ,987,350 Pccw Limited 2,286,958 2,267, ,922,500 Sino-Ocean Land Holdings Limited 7,200,389 4,855, ,500 Smartone Telecommunications 745, , Holding Limited 484,000 Sun Hung Kai Properties Limited 6,258,036 7,111, ,172,400 Swire Properties Limited 3,608,485 3,867, ,433,000 Tao Heung Holdings Limited 3,437,704 2,606, ,590,500 Techtronic Industries Company 6,751,302 7,314, ,415, ,266, Luxembourg 566,700 Samsonite International SA 1,929,025 2,366, ,929,025 2,366, Singapore 12,447,760 SIIC Environment Holding Limited 8,014,868 4,702, ,014,868 4,702, Switzerland 117,566 China South Publishing A ** 305, , , , Taiwan 6,878,600 Cathay Financial Holding Company Limited 10,993,544 11,328, ,000 Chunghwa Telecom Company Limited 2,693,685 2,627, ,000 Ctci Corp. 1,071,434 1,265, ,513,578 Delta Electronics Inc. 9,722,931 8,284, ,730,000 Far Eastone Telecommunications 6,248,743 6,955, Company Limited 332,000 FLEXium Interconnect Inc. 1,233,110 1,249, ,855,000 Formosa Chemicals & Fibre Corp. 4,774,713 5,823, ,151,000 Formosa Plastics Corp. 2,916,466 3,507, ,863,000 Fubon Financial Holding Company Limited 7,887,678 7,745, ,186,644 Hon Hai Precision Industry Company Limited 19,643,699 27,640, MANULIFE GLOBAL FUND 130

133 CHINA VALUE FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Taiwan (continued) 7,155,000 Inventec Company Limited 5,686,541 5,833, ,800,000 Kinpo Electronics 2,620,017 2,154, ,000 Largan Precision Company Limited 13,237,497 21,683, ,000 MediaTek Inc. 2,719,756 2,877, ,000 Novatek Microelectronics Corp. Limited 894,912 1,067, ,374,000 Pegatron Corp. 4,080,679 4,304, ,475,000 Quanta Computer Inc. 7,314,568 8,224, ,071,000 Taishin Financial Holding Company Limited 858, , ,417,000 Taiwan Semiconductor Manufacturing 38,338,162 64,544, Company Limited 3,012,000 Uni-President Enterprises Corp. 5,646,571 6,039, ,583, ,098, United Kingdom 1,607,600 HSBC Holdings plc 13,745,214 14,961, ,300 Standard Chartered Bank 2,434,403 2,429, ,179,617 17,390, Equities Total 743,621, ,312, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 743,621, ,312, Other transferable securities and money market instruments (2) Equities 1,191, Bermuda 7,146,000 Euro-Asia Agricultural Holdings Company Limited a 1,191, Hong Kong 8,304,000 Peace Mark Holdings Limited a 661, , Equities Total 1,852, Total Other transferable securities and money market instruments (2) 1,852, Portfolio of Investments 745,474, ,312, Other Net Assets 14,826, Net Assets 854,139, ** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 254) a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. 131 MANULIFE GLOBAL FUND

134 CHINA VALUE FUND Investment Objective: The sub-fund aims to achieve long-term capital growth through investments primarily in companies with substantial business interests in the Greater China Region (which includes the PRC, Hong Kong and Taiwan), which are listed or traded on the stock exchanges of Shanghai, Shenzhen, Hong Kong, Taipei or other overseas exchanges, and which are currently undervalued but which may have long-term growth potential. The Sub-Fund s investments will generally be in equity securities of its target companies, although it may also invest in convertible bonds and depository receipts issued by such companies, in all cases, within the limits of the investment and borrowing powers and restrictions contained in the Prospectus. Investments of the Sub-Fund may also include A-Shares and/or B-Shares listed on the Shanghai Securities Exchange and the Shenzhen Stock Exchange in Mainland China. The Sub-Fund is not investing at the A-Share market for the time being, but may invest in it with a maximum of 30% of its net asset value at a time that the Directors and Investment Manager determine. Prior notice will be given to the relevant investors and the name of the QFII will be disclosed should the Sub-Fund determine in the future to invest in the A-Share market. The Sub-Fund may also invest in fixed-income securities and hold cash on an ancillary basis, if determined to be appropriate by the Investment Manager. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* China Value Fund Class A % China Value Fund Class AA % FTSE All World Greater China Index % Hang Seng Index % Hang Seng Red Chips Index +9.81% Hang Seng H Shares Index % MSCI China Free Index % PORTFOLIO REVIEW During the year, the sub-fund has gained 25.3% while the FTSE Greater China Index increased by 27.9%, both in USD terms. Since its inception, the portfolio delivered a cumulative return of 988.8% as of end-june 2017, while the FTSE Greater China Index posted a cumulative return of 272.9% over the same period. The sub-fund s holdings in the financial, technology and consumer discretionary sectors were major performance contributors in the period. One of the top holdings in a giant Chinese internet company recorded strong performance, while the core position in a leading e-commerce company also contributed positively as the company announced a better-than-market revenue growth guidance for 2018 (45-49% year-on-year growth versus consensus 35%). On the flip side, the holding in the energy sector was the major detractor during the year. As oil prices retreated, the energy holding dragged performance amid concerns on its earnings recovery. The subfund s portfolio manager has maintained exposure in the company as its valuations are attractive. During the year, the sub-fund has trimmed positions in the industrial and financial sectors. Contrarily, the portfolio manager, seeing more values, switched to add positions in technology stocks in Taiwan and consumptions stocks, particularly in A shares, in light of the sustained good sales numbers. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 132

135 CHINA VALUE FUND MARKET REVIEW Signs of confidence are returning to China in the year under review. The first-quarter macro data of 2017 continued to show that the world s second-largest economy is gaining momentum with benign inflation pressure. Activity in China s manufacturing sector picked up further in March 2017 with the official Purchasing Managers Index ( PMI ) rose for the second consecutive month to 51.8, the highest since April 2012, supported by China s increased efforts in providing fiscal stimulus which started in 2016, as well as improving domestic and export demand. A series of encouraging macro data signalled further stabilization in China s economy in the second quarter of The official manufacturing PMI stayed in expansionary territory in June for the 11th consecutive month while export surprised on the upside on the back of global trade recovery, rising 8.7% in May in USD terms. Meanwhile, China s retail sales grew 10.7% from a year earlier in May 2017, reflecting the continuous progress in China s shift towards a consumption-driven economy. At the policy front, the Beijing government has made steady progress in pushing ahead supply-side reforms, while stability was once again highlighted as a top policy priority for 2017 at the Politburo meeting. Positive messages were also delivered at the National People s Congress ( NPC ) in March Presenting the government work report at the NPC, Premier Li Keqiang noted that growth stability and currency stability are the top priorities for the year. Amid the transition from a pro-growth stance in 2016 to growth stability in 2017, China set its growth target for 2017 at a more reasonable level at 6.5% and the sub-fund s portfolio manager believes this is achievable. With the recent macro improvement, this has also created more room for policymakers to tackle financial excesses and overcapacity. Against this backdrop, China is expected to maintain a more prudent monetary policy and will focus on risk control measures, such as financial regulation strengthening and the speed up of supply-side reform. While deleveraging will constrain liquidity in the market, it is believed that these initiatives are positive to China over the long run. Robust fundamentals in the first half of 2017 highlighted the strength in China s economy, providing a window of opportunity for the policy makers to tackle deep-seated structural issues. In fact, such structural issues, including climbing debt levels and shadow banking, were cited as major reasons in Moody s downgrade of China and Hong Kong s sovereign credit ratings in late May In light of the government s policy bias tilts towards tightening to rein in leverage and financial risks, a modest moderation in growth is expected later this year. However, a sharp deceleration in growth is unlikely given a managed pace of tightening and the government s policy priority to maintain growth at 6.5% this year. MARKET OUTLOOK The Hong Kong and China markets turned in a strong rally year-to-date in 2017 on the back of recovering corporate earnings results. The recovery trend in earnings is evident as compared to an earning contraction of 13% in the fourth quarter of 2016, earnings growth of MSCI China Index companies picked up to 7% year-on-year during the first quarter of Meanwhile, with recovering profitability and margin expansion, consensus earnings-per-share (EPS) growth of the MSCI China Index 2 is estimated to reach 15% for the whole year of 2017, providing impetus for market performance during the year. From the perspective of capital flow, southbound investment s share in the daily turnover of Hong Kong s stockmarket has been increasing steadily since the fourth quarter last year. Now southbound turnover has exceeded 10% of the average daily turnover in Hong Kong. With increasing demand for overseas asset allocation from China s insurance companies, social security funds and mutual funds, southbound capitals are expected to play a larger role in Hong Kong s stockmarket going forward. Over the long haul, this will not only benefit H-share investors as China continues to open up its capital market, but the heightened liquidity will also reinforce Hong Kong s position as an Asian financial centre. 133 MANULIFE GLOBAL FUND

136 CHINA VALUE FUND Looking forward to the second half of the year, the sub-fund s portfolio manager remains constructive in Chinese equities despite the strong market performance in the first half and the possibility that economic data may soften after rounds of solid growth data since the start of the year. With that said, bottom-up stock selection is crucial to identify value companies with sustainable earnings. Among various sectors, the portfolio manager favours companies that will benefit from the consumption upgrade momentum in China, such as consumer discretionary and technology leaders. In light of the fast advancement in technology, the portfolio manager also favours leading technology companies which exhibit abilities to command more market share in the future. Although the 12-month forward price-to-earnings (P/E) ratio of the MSCI China Index has normalized to 13.2 times (above 10-year average of 12.1 times), it is still trading at an attractive level relative to most emerging and developed markets. 1 Source: Bloomberg, CICC Research, Factset, MSCI. Data as of May Source: Bloomberg, Deutsche Bank Research. Data as of May MANULIFE GLOBAL FUND 134

137 DRAGON GROWTH FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Bermuda 3,484,000 Beijing Enterprises Water Group Limited 2,248,657 2,704, ,764,000 China Animal Healthcare Limited a 1,811, ,812,000 China Gas Holdings Limited 2,778,126 3,658, ,838,149 6,362, Cayman Islands 283,000 AAC Acoustic Technologies Holdings Inc. 2,547,533 3,538, ,438 Alibaba Group Holding Limited 12,330,163 21,269, ,721 Baidu.com ADR 4,395,337 4,420, ,633 Beigene Limited ADR 921,371 1,644, ,532 Cheung Kong Property Holdings Limited 2,326,066 3,317, ,092,000 China Everbright Greentech Limited 2,145,722 2,099, ,103,000 China Medical System Holdings Limited 1,390,463 1,907, ,674,000 China Resources Cement Holdings Limited 1,925,668 2,820, ,244,444 China Resources Land Limited 3,006,007 3,626, ,032 CK Hutchison Holdings Limited 4,662,945 4,959, ,187,500 Grand Baoxin Auto Group Limited 2,970,398 2,972, ,500,000 JNBY Design Limited 1,237,469 1,247, ,000 Minth Group Limited 1,943,903 3,035, ,608,000 Modern Dental Group Limited 1,420,592 1,039, ,470 New Oriental Education & Technology 1,467,120 2,641, Group ADR 411,600 Sands China Limited 1,829,816 1,884, ,080,000 Sino Biopharmaceutical 1,864,016 1,838, ,300 Tencent Holdings Limited 8,292,618 22,757, ,326,000 Vinda International Holdings 2,140,488 2,683, ,229 Weibo Corp. ADR 2,403,718 6,058, ,221,413 95,763, China 1,267,000 China Communications Construction 1,262,230 1,632, Company Limited H 13,925,000 China Construction Bank Corp. 9,909,206 10,792, ,102,000 China Life Insurance Company Limited H 3,139,890 3,366, ,225,000 China Molybdenum Company Limited 1,204,288 1,235, ,081,000 China National Materials Company 2,244,580 2,367, ,326,000 China Oilfield Services Limited 3,663,436 3,469, ,678,000 China Petroleum & Chemical Corp. 2,815,993 2,869, ,310 Ctrip.com International Limited ADR 3,475,732 4,357, ,100 Huayu Automotive Systems Company 1,803,782 1,929, Limited A ** 15,729,000 Industrial & Commercial Bank of China 10,787,176 10,618, ,326,000 Maanshan Iron & Steel 3,463,986 4,127, ,046,500 Ping An Insurance Group Company of 5,322,790 6,897, China Limited 5,045,000 Weichai Power Company Limited 3,075,943 4,420, ,000 Zhengzhou Yutong Bus Company 1,162,598 1,204, Limited A ** 53,331,630 59,288, MANULIFE GLOBAL FUND

138 DRAGON GROWTH FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Hong Kong 1,671,200 AIA Group Limited 8,231,276 12,213, ,900 Asm Pacific Technology Limited 2,082,280 3,539, ,500 BOC Hong Kong Holdings Limited 2,869,296 4,121, ,138,000 China Foods Limited 1,875,496 1,754, ,500 China Mobile Hong Kong Limited 9,247,580 8,676, ,000 China Overseas Land & Investment Limited 1,310,012 1,223, ,096,000 China Unicom Hong Kong Limited 2,731,480 3,114, ,025,000 Cnooc Limited 4,214,291 4,408, ,000 Galaxy Entertainment Group Limited 2,767,538 3,139, ,100 Hong Kong Exchanges and Clearing Limited 2,152,529 2,846, ,051,000 Kingboard Laminates Holdings Limited 2,492,737 2,474, ,000 Link Real Estate Investment Trust 2,174,696 2,784, ,000 Power Assets Holdings Limited 2,674,791 2,676, ,034,200 Swire Properties Limited 3,114,305 3,411, ,000 Techtronic Industries Company 2,527,379 3,127, ,000 Wharf Holdings Limited 1,695,480 1,922, ,161,166 61,435, United Kingdom 265,200 HSBC Holdings plc 2,164,693 2,468, ,164,693 2,468, United States 79,224 Yum China Holdings Inc. 2,145,533 3,073, ,145,533 3,073, Equities Total 177,862, ,392, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 177,862, ,392, Portfolio of Investments 177,862, ,392, Other Net Assets 1,722, Net Assets 230,115, ** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 254) a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 136

139 DRAGON GROWTH FUND Investment Objective: The sub-fund aims to achieve capital growth by investing in a diversified portfolio of public companies which are listed on the Stock Exchange of Hong Kong Limited and/or the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited and/or, although not incorporated or listed on either stock exchange in Hong Kong, are incorporated or listed on a stock exchange in any other jurisdiction and have substantial business interests in Hong Kong and/or derive a substantial portion of their revenue from their business carried in Hong Kong. A proportion of the sub-fund may also be invested in equity warrants and convertible bonds issued by, or in respect of, such companies. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Dragon Growth Fund Class A % Dragon Growth Fund Class AA (HKD) % MSCI Zhong Hua Index % PERFORMANCE FROM 14 DECEMBER 2016 TO 30 JUNE 2017 Dragon Growth Fund Class AA % PORTFOLIO REVIEW Strong stock selection in the Chinese information technology sector was a major performance contributor. One of the leading micro blogging platforms in China was the top contributor, after it reported stronger-than-expected earnings due to revenue growth on all business segments and a continuously expanding user base. Revenue guidance for the second quarter also came above consensus forecasts. The Chinese utilities sector contributed positively to performance, especially gas distribution companies, as the Government continues to push its environmental protection initiatives. The sub-fund s exposure to the Chinese materials space, especially those in the cement and steel businesses, contributed positively to performance given the Government s push and producers initiative to rationalise supply. Consolidation has been one of the sub-fund s key investment themes. The main detractors were stock selection in consumer discretionary, real estate, and energy. The subfund s exposure to the energy sector negatively impacted performance; oil prices were volatile as Organization of the Petroleum Exporting Countries (OPEC) and non-opec members decision to extend their production cut was offset by mounting concerns on weak demand and a supply glut. MARKET REVIEW The China and Hong Kong equity markets (the markets) had a strong start during the period in review. This was due to companies reporting mostly better-than-expected earnings during the third quarter reporting season, and as China s Producer Price Index (PPI) rose from a 55-month deflation in September and continued through May This was supportive of pricing power returning to corporates, as well as an improvement of the banking industry s asset quality. By the latter part of 2016, the markets reacted negatively to the strengthening dollar and higher bond yields post US President Donald Trump s victory, which raised concerns on the impact of his campaign platforms to inflation and the future path of the Fed hiking cycle, as well on future trade relations between the US and Asian economies. During the first half of 2017, the markets rallied on the back of notable improvements in economic data in China as well as on better-than-expected first quarter earnings and positive guidance, especially from the technology and internet related sectors. Market participants reaction was muted when Moody s downgraded China and Hong Kong s sovereign credit rating in May. By June, MSCI announced the inclusion of the country s A-shares in their global equity indices in two phases starting May 2018; it is a vote of confidence for China to further financial reforms and develop capital markets. Despite the Fed hiking policy rates thrice by 25 basis points (bps) each in December, March, and June to 1.25%, the markets remained resilient as the Fed maintained a dovish outlook on the tightening cycle. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 137 MANULIFE GLOBAL FUND

140 DRAGON GROWTH FUND OUTLOOK The sub-fund s portfolio manager (PM) remains constructive on China and Hong Kong equities despite the good year-to-date performance, as upward revisions on earnings are still stronger than expected. US and European macroeconomic data show resilience, while China continued to surprise investors with higher Purchasing Manager Index (PMI) figures and corporate earnings. The PM added exposure to the healthcare sector given expectations of a sales pickup driven by the potential new drugs from the tendering process. MANULIFE GLOBAL FUND 138

141 EMERGING EASTERN EUROPE FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Austria 83,979 Erste Group Bank AG 2,197,772 3,239, ,197,772 3,239, Czech Republic 1,140,662 Moneta Money Bank AS 3,409,440 3,803, ,409,440 3,803, Kazakhstan 343,629 KazMunaiGas Exploration Production GDR 3,195,750 3,240, ,195,750 3,240, Netherlands 132,091 Yandex NV A 2,794,807 3,455, ,794,807 3,455, Poland 30,505 Bank Zachodni WBK SA 2,690,883 2,831, ,533 Dino Polska SA 2,159,932 3,085, ,365 Powszechna Kasa Oszczednosci Bank 5,082,278 4,111, Polski SA 9,933,093 10,029, Russian Federation 63,713 Lukoil PJSC ADR 3,727,106 3,099, ,802 Lukoil PJSC ADR 4,791,572 4,077, ,075 NovaTek OAO GDR 4,878,600 5,479, ,955 Phosagro OAO GDR 2,027,090 2,557, ,535 Phosagro OAO 892, , ,200 Rosneft Oil Company GDR 3,151,440 3,021, ,679 Tatneft ADR 3,006,331 3,375, ,038 X5 Retail Group NV GDR Reg 3,272,918 5,904, ,747,513 28,389, Turkey 830,918 Akbank TAS 2,366,251 2,324, ,774 Arcelik AS 2,481,576 2,884, ,802 Coca-Cola Icecek AS 2,942,679 1,410, ,201,705 Global Yatirim Holding AS 1,083, , ,649 Koc Holding AS 1,819,106 1,920, ,448 Mavi Jeans B 1,873,307 1,867, ,364,836 Petkim Petrokimya Holding 1,911,229 2,347, ,420 Tofas Turk Otomobil Fabrik 1,600,323 2,730, ,489 Tupras-Turkiye Petrol Rafinerileri 2,941,493 3,735, ,330 Turk Traktor ve Ziraat Makineleri AS 911,746 1,301, ,770,987 Turkiye Garanti Bankasi AS 6,279,306 4,943, ,454,900 Turkiye Sinai Kalkinma Bankasi AS 3,755,170 3,399, ,965,469 29,843, MANULIFE GLOBAL FUND

142 EMERGING EASTERN EUROPE FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United Kingdom 508,167 International Personal Finance plc 2,028,822 1,112, ,941 Kaz Minerals plc 2,096,960 2,505, ,204 Nostrum Oil & Gas plc 4,281,491 2,392, ,407,273 6,010, Virgin Islands (British) 39,000 Luxoft Holding Inc. 2,166,877 2,367, ,166,877 2,367, Equities Total 87,817,994 90,377, Funds Romania 10,564,206 Fondul Proprietatea SA 1,587,429 2,195, ,587,429 2,195, Funds Total 1,587,429 2,195, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 89,405,423 92,573, Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Equities Russian Federation 1,408,722 Detsky Mir Pjsc Dsky Rm 2,027,669 2,228, ,223,410 Moscow Exchange Micex 4,256,123 3,923, ,821,141 Sberbank RF 1,784,718 4,481, ,877,625 Surgutneftegaz Pfd 1,638,926 1,392, ,252,806 Unipro Pjsc Upro Rm 2,948,247 1,781, ,655,683 13,807, Equities Total 12,655,683 13,807, Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities 12,655,683 13,807, Portfolio of Investments 102,061, ,380, Other Net Assets 1,178, Net Assets 107,559, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 140

143 EMERGING EASTERN EUROPE FUND Investment Objective: The sub-fund aims to achieve capital growth through investment primarily in securities which are listed or traded on the stock exchanges of Central and Eastern European countries. It is intended that the sub-fund will initially be concentrating (although not necessarily exclusively) on securities listed or traded on stock exchanges in the Czech Republic, Hungary, Poland, Slovakia and Russia whilst such securities may also be listed in other exchanges as depository receipts or certificates, or in other forms of instruments. However, the sub-fund will seek to broaden its participation in other markets within the region as they develop. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Emerging Eastern Europe Fund Class A % Emerging Eastern Europe Fund Class AA % MSCI Emerging Europe 10/40 Index % PORTFOLIO REVIEW The sub-fund generated a strong return over the 12-month period ending 30 June 2017, slightly ahead of underlying markets. This outperformance could be attributed to the sub-fund s exposure to Kazakhstan, not represented in its MSCI EM Europe 10/40 Index benchmark, as well as its stock selection in Russia. By contrast, an underweight exposure to Poland was a drag on performance. Over the period under review, the sub fund s exposure to Russia was reduced significantly in favour of a higher exposure to Kazakhstan and Poland. On a sector analysis, exposure to consumer staples and industrials fell as exposure to consumer discretionary and energy rose. Currently, the sub-fund s largest overweight exposure is in Turkey, closely followed by Kazakhstan, with exposure to Russia, Hungary and Greece significantly underweight. The consumer sectors are well represented within the portfolio, whilst exposure to energy and telecommunication services is underweight. MARKET REVIEW Share prices moved broadly and consistently higher across the stockmarkets of emerging eastern Europe over the 12-month period ending 30 June Gains were most pronounced in central Europe, with Poland and Hungary both performing strongly despite widely-held concerns over political developments. Frontier markets, such as Romania and Kazakhstan also performed well. The two major markets of Russia and Turkey generated more subdued net gains. There were few developments of note in Russia, by contrast Turkey endured a frenetic 12 months with share prices first falling sharply and then recovering even more strongly. The marked share price movements seen in Turkey came as a result of two significant events. First, an attempted coup by a section of the military that initially only narrowly failed to overthrow President Erdogan but which was then brutally crushed and followed by a prolonged purge of those thought by the government to be in sympathy with the insurgents; and second, a constitutional referendum that saw the country voting to make the office of president an executive, rather than a largely ceremonial, one. Both developments however served to underline the extent to which Recep Tayyip Erdogan, the president of Turkey, has centralised power around himself in an increasingly autocratic fashion. July s coup came as something of a shock and financial markets reacted negatively to both the coup itself and the subsequent crackdown; although by no means unusual in an historical context, markets had supposed that Turkey had outgrown its past and could now be considered alongside more normal western democracies. This view was however superseded by the realization that with President Erdogan now in firm control, and with no elections on the horizon, political uncertainty had all but disappeared and that the government could now get on with the job of running the country and promoting economic growth. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 141 MANULIFE GLOBAL FUND

144 EMERGING EASTERN EUROPE FUND Russian share prices were supported by a gradual improvement in economic activity with GDP returning to growth after a prolonged recession. The strength of the rouble was a further positive, with high real interest rates attracting inflows into the currency; the central bank of Russia has maintained interest rates at comparatively high levels whilst inflation has fallen back. Movements in the oil price had little impact on the rouble though they did provide a boost to share prices around the turn of the year, with Russia joining OPEC members in agreeing to limit production in order to help clear inventories and thus support the oil price. The high value of the rouble relative to oil tended to benefit consumer-related stocks, especially those with an import focus, though it was a negative for commodity companies whose revenues are largely in US dollars but costs predominantly in roubles. OUTLOOK Looking forward, the current stable market conditions can be expected to continue. The increase in capital markets activity seen recently is evidence of this. Against this backdrop, the bottom-up stockpicking approach of the sub-fund s managers is well-placed to identify the best opportunities available as and when they appear. The outlook for Russia remains positive, although possibly not quite to the same extent as in The arrival of Trump in the White House appears to be heralding a far more pro-russia stance in US politics, oil prices are unlikely to weaken given production cuts and newly found discipline amongst OPEC and some non-opec producers and valuations for the market overall continue to be at a discount to most other emerging markets. Prospects for Turkey are now more encouraging, as political considerations fade from view and become less important, the government can concentrate its energy on reinvigorating the economy. And there are already early signs that this is beginning to happen. Elsewhere in the region, political developments in both Poland and Hungary continue to raise concerns with both seen as increasingly out of step with the more liberal-minded democracies of western Europe. This did not however prevent the very strong stockmarket performance of the last 12 months, and further gains may be possible. MANULIFE GLOBAL FUND 142

145 EUROPEAN GROWTH FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Austria Denmark France Germany Ireland Israel Italy Transferable securities and money market instruments admitted to an official exchange listing (1) Equities 23,207 Andritz AG 1,103,534 1,399, ,927 Wienerberger AG 809,278 1,098, ,912,812 2,498, ,606 Novo Nordisk A/S 1,874,208 2,131, ,778 Vestas Wind Systems A/S 1,373,950 1,728, ,248,158 3,859, ,898 Amundi SA 843, , ,470 Danone 2,873,419 3,295, ,491 Groupe Eurotunnel SA 832, , ,461 Publicis Groupe 1,249,311 1,459, ,025 Schneider Electric SA 1,402,629 1,550, ,201,489 8,018, ,267 Continental AG 699, , ,581 Fresenius Medical Care AG & Company KGaA 2,257,172 2,566, ,851 Henkel AG & Company KGaA 724,120 1,195, ,449 Hugo Boss AG 1,362,865 1,513, ,772 Infineon Technologies AG 321, , ,232 SAP SE 818,211 1,072, ,544 Volkswagen AG Pfd 1,904,328 2,068, ,088,005 9,950, ,314 Allied Irish Bank 1,537,773 1,685, ,275,412 Bank of Ireland 1,146,163 1,123, ,554 Greencore Group plc 1,601,132 1,677, ,285,068 4,486, ,255 Check Point Software Technologies 1,139,964 1,122, ,139,964 1,122, ,899 ENI SpA 1,465,778 1,340, ,231 Intesa Sanpaolo SpA 2,608,299 3,060, ,074,077 4,400, Jersey Channel Islands 25,831 Shire plc 1,538,441 1,419, ,538,441 1,419, MANULIFE GLOBAL FUND

146 EUROPEAN GROWTH FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Netherlands 24,680 Akzo Nobel NV 1,801,775 2,157, ,201 Euronext NV 1,025,997 1,205, ,495 Koninklijke Ahold Delhaize NV 3,106,443 2,816, ,901 Koninklijke Philips Electronics NV 1,341,828 1,818, ,172 Royal KPN NV 1,619,953 1,765, ,816 Unilever NV 1,101,386 1,542, Norway Spain Sweden 1,034,728 1,301,074 9,997,382 11,305, Statoilhydro ASA 3,489 3, ,489 3, ,803 Banco Bilbao Vizcaya Argentaria 2,816,197 3,339, ,749 Banco Santander Central Hispano SA 1,034,834 1,049, ,670 Repsol YPF SA 2,601,524 3,730, ,954 Telefonica SA 1,130, , ,583,305 9,076, ,623 Essity B 298, , , , Switzerland 73,684 ABB Limited Reg 1,738,142 1,826, ,701 Credit Suisse Group AG Reg 512, , ,183 Nestle SA Reg 1,183,393 1,413, ,915 Novartis AG Reg 2,510,907 2,842, ,581 Swatch Group AG B 1,313,034 1,707, ,412 Zurich Financial Services AG Reg 2,219,710 2,757, ,477,202 11,088, United Kingdom 59,560 Admiral Group plc 1,291,995 1,548, ,381 Astrazeneca plc 1,836,420 2,175, ,823 Bhp Billiton plc 2,364,713 2,428, ,088 BP plc 2,025,015 2,005, ,657 BT Group plc 950, , ,370 Carphone Warehouse Group plc 1,556,916 1,387, ,080 Dialog Semiconductor plc 1,002,091 1,074, ,575 Ds Smith plc 731, , ,861 Equiniti Group plc 1,289,683 1,709, ,452 GKN plc 269, , ,506 Glaxosmithkline plc 569, , ,539 HSBC Holdings plc 2,765,095 3,146, ,132 Imperial Tobacco Group plc 1,524,257 1,451, ,691 Informa plc 512, , ,221 Liberty Global Inc. 2,741,264 2,799, ,627 Prudential plc 428, , ,395 Rio Tinto plc 1,808,773 1,963, ,233 Royal Dutch Shell plc B 4,463,180 4,289, ,539 RSA Insurance Group 1,379,755 1,665, ,090 Smith & Nephew plc 1,426,786 1,589, ,930 Standard Chartered Bank plc 3,669,481 3,413, ,995 Tullow Oil plc 420, , ,028,723 36,359, Equities Total 93,876, ,023, MANULIFE GLOBAL FUND 144

147 EUROPEAN GROWTH FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Rights Spain 241,670 Repsol SA Right 76, , , , Rights Total 76, , Total Transferable securities and money market instruments admitted to an official exchange listing (1) 93,952, ,133, Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Rights France 15,112 Publicis Groupe SA Right Rights Total Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Other transferable securities and money market instruments (2) Equities Finland 640,479 Talvivaara Mining Company plc a 498, , Equities Total 498, Total Other transferable securities and money market instruments (2) 498, Portfolio of Investments 94,451, ,133, Other Net Assets 2,330, Net Assets 106,464, a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. 145 MANULIFE GLOBAL FUND

148 EUROPEAN GROWTH FUND Investment Objective: The objective of this sub-fund is to achieve capital growth from a diversified portfolio of equities in mainly larger companies quoted on stock markets in Europe (including in the United Kingdom), or companies that have substantial business interests in Europe. The main emphasis of the investment strategy of the sub-fund is on the assessment and selection of individual stocks within the European markets. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* European Growth Fund Class A % European Growth Fund Class AA % European Growth Fund Class I % European Growth Fund Class I % MSCI Europe Index % PORTFOLIO REVIEW From an individual securities perspective, an information technology holding contributed to the sub-fund s performance. The UK company s shares increased in response to an acquisition offer from a Japanese firm. A UK engineering consulting services company also contributed to the sub-fund s performance after it received a takeover bid from a Canadian competitor at a premium to the undisturbed share price (i.e. the last share price before takeover talks began). Most of the sub-fund s significant detractors from performance, including telecommunications services and industrials companies, had considerable exposure to the UK. One firm in the aerospace industry suffered from various management errors that eliminated significant shareholder value, while a telecommunications services holding company lost some profitable public contracts and uncovered accounting irregularities in its Italian division. The sub-fund s portfolio manager (PM) increased the sub-fund s positions in two materials holdings after stress-testing the free cash flow (FCF) generation of the mining companies iron ore assets. The PM s financial models indicated that under depressed long-term commodity price assumptions, these miners still trade on very attractive FCF yields. Following significant unproductive capital investment over the past decade and the subsequent related decline in commodity prices, the PM believes there has been a significant change in the way the companies current management teams view capital allocation and maximising shareholder value. The PM believes these businesses, if run prudently, should be capable of sustaining large and growing dividends. MARKET REVIEW European markets performed strongly over the past 12 months, driven by a narrowing of the deep valuation discount to US equities and moderating political risk. The euro increased by 7% and the British pound increased by 3% in the first half of 2017, driven by the improving performance of the European economy relative to North America and the change in expectations over central bank policy. The euro also benefited after the pro-european candidate Emmanuel Macron won by a wide margin in the second round of the French presidential election. Currency strength accounted for most of the equity gains over the year. The UK was the worst-performing major European market over the 12 months following the country s surprise vote to exit the EU (known as Brexit ). The British pound fell sharply in response to the UK s vote in late June 2016, with currency moves accounting for much of the underperformance of UK equities. The best-performing sector was financials, which recovered as investors no longer priced in a deflationary environment. The materials sector was strong as the iron ore price rebounded, driven by buoyant emerging market demand and the closure of unprofitable Chinese mines. This also helped the industrials sector perform well, as companies in this sector derive a large part of their revenue from selling equipment to the mining industries and emerging markets. The energy sector lagged on data showing US oil inventories were nearing record levels and on the resumption of North American shale oil production, which has created a glut of supply. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 146

149 EUROPEAN GROWTH FUND OUTLOOK The last 12 months have seen two distinct rotations in European equities brought about by changes in the inflationary outlook. The first six months was characterised by rising inflation expectations and rising interest rates, while the second six months saw a distinct lapse back into deflationary expectations. The latter rotation was less positive for the sub-fund as the rotation into stocks with high valuation and low FCF yield did not suit the PM s investment style. The outlook is for interest rates to rise as global quantitative easing fades and central banks allow rates and yield curves to normalise. The PM believes the subdued growth outlook, low FCF yields, and negative exposure to tightening monetary policy pose major risks to the continued outperformance of large-capitalisation quality stocks. The PM believes that oil majors, miners, and financials sector stocks offer more attractive returns given their positive correlation to a reflationary environment and high-single-digit FCF yields. UK equities also appear to offer interesting investment opportunities, as they are trading on valuations that factor in a prolonged recession. While such an eventuality cannot be ruled out, UK GDP has held up surprisingly well, and many UK-listed names have globally diversified businesses that the PM believes can succeed regardless of fluctuations in the UK economy. The PM remains committed to buying good companies with enduring cash flows that trade at a marked discount to their long-term FCF generation. Many of the companies that did well this year have failed the PM s investment criteria based on cash flow valuation grounds. Provided the PM s cash flow projections are suitably cautious, the deeply discounted businesses owned in the sub-fund should exceed market returns for value-conscious, patient investors. 147 MANULIFE GLOBAL FUND

150 GLOBAL CONTRARIAN FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Australia 46,560 Amcor Limited 462, , , , Cayman Islands 21,307 CK Hutchison Holdings Limited 277, , , , France 1,867 Sanofi-Aventis SA 177, , ,863 Total SA 490, , , , Germany 3,101 Deutsche Boerse AG 251, , , , Hong Kong 33,000 China Mobile Hong Kong Limited 360, , , , Ireland 8,630 Johnson Controls International plc 364, , , , Japan 4,200 Bridgestone Corp. 155, , ,100 Canon Inc. 153, , ,100 Honda Motor Company Limited 282, , ,900 Japan Tobacco Inc. 350, , ,100 KDDI Corp. 216, , ,000 Mitsubishi Estate Company Limited 371, , ,530,237 1,494, Jersey Channel Islands 17,302 Experian plc 308, , , , Luxembourg 45,354 Samsonite International SA 130, , ,476 SES SA 245, , , , Netherlands 2,128 Akzo Nobel NV 155, , ,162 Heineken NV 319, , ,905 Koninklijke Ahold Delhaize NV 194, , ,877 Koninklijke Philips Electronics NV 449, , ,177 Wolters Kluwer NV 285, , ,405,144 1,662, MANULIFE GLOBAL FUND 148

151 GLOBAL CONTRARIAN FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Switzerland 3,424 Chubb Limited 427, , ,154 Nestle SA Reg 464, , ,215 Novartis AG Reg 426, , ,240 Roche Holding AG 607, , ,926,408 2,047, Taiwan 8,700 Taiwan Semiconductor Manufacturing 253, , Company Limited ADR 253, , United Kingdom 1,408 Aon Corp. 120, , ,578 British American Tobacco plc 138, , ,704 HSBC Holdings plc 392, , , , United States 3,840 Advance Auto Parts Inc. 534, , ,414 Affiliated Managers Group 558, , ,688 Apple Computer Company 399, , ,067 Arthur J Gallagher & Company 136, , ,522 Baxter International Inc. 56,690 91, ,351 Exxon Mobil Corp. 435, , ,437 Honeywell International Inc. 236, , ,683 Huntington Bancshares Inc. 240, , ,750 Johnson & Johnson 264, , ,188 JP Morgan Chase 275, , ,532 Microsoft Corp. 287, , ,222 Mondelez International Inc. 205, , ,456 Oracle Corp. 459, , ,682 Philip Morris International Inc. 229, , ,788 PNC Financial Services Group 359, , ,061 Procter & Gamble Company 335, , ,290 United Technologies Corp. 361, , ,314 Verizon Communications Inc. 359, , ,210 Wells Fargo & Company 897, , ,974 Whirlpool Corp. 335, , ,969,511 8,110, Equities Total 15,806,013 17,611, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 15,806,013 17,611, Portfolio of Investments 15,806,013 17,611, Other Net Assets 78, Net Assets 17,689, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 149 MANULIFE GLOBAL FUND

152 GLOBAL CONTRARIAN FUND Investment Objective: The sub-fund aims to generate long-term returns which exceed those of broad market indexes, such as the MSCI World Index and the S&P 500 Index, by investing in overlooked and misunderstood companies through investing primarily in securities of U.S. issuers, and those of issuers in countries around the world including, but not limited to, common stocks, REITs and similar liquid equity equivalents. The expression overlooked and misunderstood companies as used herein may refer generally to specific companies which may be temporarily out-of-favour with or unattractive to investors (for whatever reason) and could, therefore, present value opportunities to be exploited. These companies may also include companies going through corporate restructuring, bankruptcy, spin-outs or industry consolidation. It may also include taking advantage of opportunities which present themselves in the markets arising from short-term irrationality in prices or psychological biases of market participants as demonstrated by some of the principles of behavioural finance. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Global Contrarian Fund Class AA % Global Contrarian Fund Class I % Global Contrarian Fund Class S % MSCI All Country World Index % PERFORMANCE FROM 1 JULY 2016 TO 3 JANUARY 2017 Global Contrarian Fund Class I % PORTFOLIO REVIEW Underweight positions in the energy and utilities sectors contributed to the sub-fund s performance. Individual contributors included two financials companies, whose share prices rose as the sector responded favourably to the US election results and the Fed raising interest rates. A healthcare sector holding also contributed after reporting earnings ahead of consensus expectations, with a strong contribution from its personal health segment. Stock selection in the consumer discretionary sector and an overweight position in the consumer staples sector detracted from performance. Individual detractors included a retailer that reported earnings below analyst estimates, as deflation had a negative impact on the company s US grocery stores, and as investors reacted negatively to various other incidents. These include the acquisition of Whole Foods by Amazon.com; a tobacco company whose shares suffered after reported earnings showed weaker sales momentum while a stronger local currency negatively affected overseas earnings; and an automotive parts retailer that reported earnings and comparable-store sales below expectations (though management expects higher productivity savings). MARKET REVIEW Global equity markets significantly advanced over the period due to investor optimism about the outcome of the US elections and an improving global economic backdrop. Emerging markets was the best-performing region as earnings expectations were raised and the economic backdrop improved. The Fed raised interest rates in multiple meetings, while the European Central Bank (ECB) kept its monetary policy steady. Energy was one of the worst-performing sectors due to volatility in the price of oil, stemming from increased global supply. Financials was the best-performing sector, specifically in the fourth quarter of 2016, as the prospects for earnings improvement increased. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 150

153 GLOBAL CONTRARIAN FUND OUTLOOK The sub-fund s portfolio manager (PM) believes global markets should continue to fare well in Key indices continued to rise in the second quarter, with international markets outperforming the US. The US has struggled on a relative basis as the market questions the new administration s ability to implement its economic agenda. In Europe, investor sentiment remains reasonably positive and markets welcomed the outcome of France s presidential elections. However, most price-earnings ratios for global equities remain higher than historical averages. Comparable price-earnings ratios have not been seen since the early 2000s. Furthermore, debt levels have risen, even as profit margins appear to be near peak levels. This is cause for concern because current valuations have priced-in strong earnings growth a perspective that the PM believes might be somewhat optimistic. Valuation concerns aside, the PM believes there are additional macroeconomic issues that investors should focus on. Deflation continues to be a risk, as does continued political uncertainty not just in the US, but also in relation to upcoming German and Italian elections and to Brexit negotiations. That said, political risks in the eurozone appear to have subsided. This means the PM sees it as less likely for the euro to fall sharply from concerns over cohesion of euro-area states. Against this background of renewed stability, the PM has removed the sub-fund s currency hedges. A sense of unease remains, however, over North Korea s nuclear situation. Markets appear to currently be in a valuation-rich environment. Against this backdrop, the PM will focus on companies that have enduring businesses; strong management teams with solid track records of effective capital allocation; strong balance sheets; and sustainable free cash flow. The PM continues to view the US financials sector positively, while remaining cautious of European firms within the sector. The PM also continues to favour sustainable, quality franchises within the consumer staples sector. In the PM s view, the biggest potential market risks stem from high global valuations and high debt levels. Despite significant efforts by central banks to kickstart economies with an injection of liquidity, inflation remains subdued. Some measures of inflation expectations have even declined to levels below those experienced during previous periods of quantitative easing. Despite this, the Fed raised rates for the second time in three months. The PM believes deflation risks remain and are not being priced-in by the market this contributes to concerns about higher debt levels. The PM maintains a negative view of the utilities sector due to high valuations, which are a result of low interest rates, though the PM also notes the sector is, relatively speaking, no more expensive than the broader market. 151 MANULIFE GLOBAL FUND

154 GLOBAL EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Australia 357,732 Amcor Limited 3,486,454 4,458, ,486,454 4,458, Cayman Islands 154,656 CK Hutchison Holdings Limited 1,857,162 1,941, ,857,162 1,941, France 14,304 Sanofi-Aventis SA 1,172,250 1,381, ,927 Total SA 2,887,388 3,033, ,059,638 4,414, Germany 23,227 Deutsche Boerse AG 1,977,222 2,450, ,977,222 2,450, Hong Kong 243,000 China Mobile Hong Kong Limited 2,654,091 2,579, ,654,091 2,579, Ireland 62,755 Johnson Controls International plc 2,653,071 2,704, ,653,071 2,704, Japan 33,700 Bridgestone Corp. 1,160,358 1,454, ,800 Canon Inc. 1,116,914 1,354, ,900 Honda Motor Company Limited 1,640,304 1,609, ,800 Japan Tobacco Inc. 2,634,267 2,527, ,300 KDDI Corp. 1,583,090 1,573, ,000 Mitsubishi Estate Company Limited 2,725,402 2,613, ,860,335 11,132, Jersey Channel Islands 125,652 Experian plc 2,232,581 2,585, ,232,581 2,585, Luxembourg 316,500 Samsonite International SA 863,946 1,321, ,490 SES SA 1,447,795 1,300, ,311,741 2,621, Netherlands 15,158 Akzo Nobel NV 977,442 1,325, ,091 Heineken NV 2,472,522 2,943, ,978 Koninklijke Ahold Delhaize NV 1,525,027 1,393, ,060 Koninklijke Philips Electronics NV 3,135,813 3,967, ,483 Wolters Kluwer NV 2,218,087 2,641, ,328,891 12,271, MANULIFE GLOBAL FUND 152

155 GLOBAL EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Switzerland 25,098 Chubb Limited 3,141,965 3,654, ,568 Nestle SA Reg 3,382,962 4,067, ,710 Novartis AG Reg 3,017,907 3,243, ,412 Roche Holding AG 4,194,756 4,205, ,737,590 15,172, Taiwan 70,682 Taiwan Semiconductor Manufacturing 2,061,094 2,468, Company Limited ADR 2,061,094 2,468, United Kingdom 10,632 Aon Corp. 919,740 1,413, ,337 British American Tobacco plc 1,050,918 1,322, ,187 HSBC Holdings plc 2,146,022 2,892, ,116,680 5,628, United States 28,141 Advance Auto Parts Inc. 3,910,465 3,310, ,616 Affiliated Managers Group 4,188,163 4,274, ,026 Apple Computer Company 2,971,464 3,903, ,729 Arthur J Gallagher & Company 848,773 1,301, ,003 Baxter International Inc. 391, , ,786 Exxon Mobil Corp. 2,990,883 2,981, ,346 Honeywell International Inc. 1,765,536 2,310, ,823 Huntington Bancshares Inc. 1,656,095 2,354, ,416 Johnson & Johnson 2,047,033 2,713, ,837 JP Morgan Chase 1,881,229 2,732, ,613 Microsoft Corp. 2,481,901 3,358, ,693 Mondelez International Inc. 1,559,142 1,593, ,933 Oracle Corp. 3,359,444 4,218, ,243 Philip Morris International Inc. 1,850,171 2,493, ,985 PNC Financial Services Group 2,321,838 3,373, ,911 Procter & Gamble Company 2,192,480 2,433, ,609 United Technologies Corp. 1,997,479 2,763, ,072 Verizon Communications Inc. 2,486,481 2,310, ,158 Wells Fargo & Company 6,148,426 6,661, ,997 Whirlpool Corp. 2,230,918 2,845, ,279,815 58,597, Equities Total 111,616, ,025, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 111,616, ,025, Portfolio of Investments 111,616, ,025, Other Net Assets 1,765, Net Assets 130,791, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 153 MANULIFE GLOBAL FUND

156 GLOBAL EQUITY FUND Investment Objective: The sub-fund aims to achieve capital growth from a balanced portfolio of international securities. The sub-fund is designed as a relatively lower risk way of participating in world stockmarkets and offers an alternative to the other, more aggressive, regional sub-funds. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Global Equity Fund Class A % Global Equity Fund Class AA % MSCI World Index % PORTFOLIO REVIEW Underweight positions in the energy and utilities sectors contributed to the sub-fund s performance. Individual contributors included two financials companies, whose share prices rose as the sector responded favourably to the US election results and the Fed raising interest rates. A healthcare sector holding also contributed after reporting earnings ahead of consensus expectations, with a strong contribution from its personal health segment. Stock selection in the consumer discretionary sector and an overweight position in the consumer staples sector detracted from performance. Individual detractors included a retailer that reported earnings below analyst estimates as deflation negatively impacted the company s US grocery stores, and as investors reacted negatively to various occurrences. These include the acquisition of Whole Foods by Amazon.com; a tobacco company whose shares suffered after reported earnings showed weaker sales momentum while a stronger local currency negatively affected overseas earnings; and an automotive parts retailer that reported earnings and comparable-store sales below expectations (though management expects higher productivity savings). MARKET REVIEW Global equity markets significantly advanced over the period due to investor optimism about the outcome of the US elections and an improving global economic backdrop. Emerging markets was the best-performing region as earnings expectations were raised and the economic backdrop improved. The Fed raised interest rates in multiple meetings, while the European Central Bank (ECB) kept its monetary policy steady. Energy was one of the worst-performing sectors due to the volatility in the price of oil, stemming from increased global supply. Financials was the best-performing sector, specifically in the fourth quarter of 2016, as the prospects for earnings improvement increased. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 154

157 GLOBAL EQUITY FUND OUTLOOK The sub-fund s portfolio manager (PM) believes global markets should continue to fare well in Key indices continued to rise in the second quarter, with international markets outperforming the US. The US has struggled on a relative basis as the market questions the new administration s ability to implement its economic agenda. In Europe, investor sentiment remains reasonably positive and markets welcomed the outcome of France s presidential elections. However, most price-earnings ratios for global equities remain higher than historical averages. Comparable price-earnings ratios have not been seen since the early 2000s. Furthermore, debt levels have risen, even as profit margins appear to be near peak levels. This is cause for concern because current valuations have priced-in strong earnings growth a perspective that the PM believes might be somewhat optimistic. Valuation concerns aside, there appear to be more macroeconomic issues that investors should focus on. Deflation continues to be a risk, as does continued political uncertainty not just in the US, but also in relation to upcoming German and Italian elections and to Brexit negotiations. That said, the PM believes political risks in the eurozone have subsided. This means the PM sees it as less likely for the euro to fall sharply from concerns over cohesion of euro-area states. Against this background of renewed stability, the sub-fund s currency hedges have been removed. A sense of unease remains, however, over North Korea s nuclear situation. The PM believes markets are currently in a valuation-rich environment. Against this backdrop, the PM will focus on companies that have enduring businesses; strong management teams with solid track records of effective capital allocation; strong balance sheets; and sustainable free cash flow. The PM continues to view the US financials sector positively, although the PM remains cautious of European firms within the sector. The PM also continues to favour sustainable, quality franchises within the consumer staples sector. In the PM s view, the biggest potential market risks stem from high global valuations and high debt levels. Despite significant efforts by central banks to kickstart economies with an injection of liquidity, inflation remains subdued. Some measures of inflation expectations have even declined to levels below those experienced during previous periods of quantitative easing. Despite this, the Fed raised rates for the second time in three months. The PM believes deflation risks remain and are not being priced-in by the market this contributes to concerns about higher debt levels. The PM maintains a negative view of the utilities sector due to high valuations, which are a result of low interest rates, though the PM notes the sector is relatively no more expensive than the broader market. 155 MANULIFE GLOBAL FUND

158 GLOBAL PROPERTY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Australia 19,893 Dexus Property Group 131, , ,875 Mirvac Group 96, , ,846 Scentre Group 190, , ,500 Stockland 95, , ,000 Vicinity Centres 113, , ,569 Westfield Group 154, , , , Canada 7,757 H&r Real Estate Investment Trust 80, , ,330 Riocan Real Estate Investment Trust 174, , ,412 Temple Hotels Inc. 187, , , , Cayman Islands 36,500 Cheung Kong Property Holdings Limited 194, , ,000 Cheung Kong Property Holdings Limited 32,944 31, , , France 4,441 Klepierre 174, , ,200 Unibail-Rodamco SE 203, , , , Germany 5,896 Deutsche Wohnen AG 74, , ,000 Tlg Immobilien AG 109, , , , Hong Kong 51,000 Hang Lung Properties Limited 183, , ,452 Henderson Land Development Company 98, , Limited ADR 24,500 Hongkong Land Holdings Limited 106, , ,000 Sino Land Company Limited 110, , ,000 Sun Hung Kai Properties Limited 297, , , , Ireland 70,500 Green Reit plc 104, , ,375 Irish Residential Properties REIT plc 160, , , , MANULIFE GLOBAL FUND 156

159 GLOBAL PROPERTY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Japan 2,000 Daito Trust Construction Company Limited 80, , Japan Real Estate Investment Corp. 79,224 79, Japan Retail Fund Investment Corp. 77,068 74, ,000 Mitsubishi Estate Company Limited 410, , ,500 Mitsui Fudosan Company Limited 282, , Nippon Building Fund Inc. 194, , ,000 Sumitomo Realty & Development 178, , Company Limited 1,301,803 1,699, Norway 17,000 Entra ASA 168, , ,000 Norwegian Property ASA 136, , , , Singapore 145,000 Capitacommercial Trust 159, , ,000 Capitaland Limited 179, , , , United Kingdom 22,521 British Land Company plc 255, , ,500 Hammerson plc 198, , ,500 Land Securities Group plc 182, , ,000 Shaftesbury plc 125, , , , United States 1,650 Alexandria Real Estate Equities Inc. 99, , ,500 American Tower Corp. 62, , ,271 Boston Properties Inc. 137, , ,750 Brixmor Property Group Inc. 177, , ,418 Coresite Realty Corp. 24, , ,350 Corporate Office Properties Trust 82, , ,283 Cyrusone Inc. 63, , ,800 DDR Corp. 148, , ,722 Diamondrock Hospitality Company 115, , ,789 Digital Realty Trust Inc. 169, , ,350 Douglas Emmett Inc. 59, , ,335 Essex Property Trust Inc. 173, , ,450 Federal Realty Investment Trust 121, , ,730 Felcor Lodging Trust Inc. 88, , ,200 Forest City Realty Trust Inc. A 113, , ,621 GGP Inc. 196, , ,000 Hersha Hospitality Trust 98, , ,333 Hilton Worldwide Holdings Inc. 138, , ,000 Independence Realty Trust Inc. 180, , ,300 Invitation Homes Inc. 226, , ,450 Kilroy Realty Corp. 122, , ,552 Kimco Realty Corp. 142, , ,401 Macerich Company 98, , ,775 Mid-America Apartment Communities Inc. 112, , ,687 Monogram Residential Trust Inc. 147, , MANULIFE GLOBAL FUND

160 GLOBAL PROPERTY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States (continued) 18,500 Paramount Group Inc. 323, , ,419 Park Hotels & Resorts Inc. 164, , ,000 Physicians Realty Trust 126, , ,258 Prologis Inc. 268, , ,050 QTS Realty Trust Inc. A 64, , ,775 Retail Properties of America Inc. 113,649 95, ,856 Rexford Industrial Realty 123, , ,805 Simon Property Group Inc. 357, , ,072 Sl Green Realty Corp. 64, , ,600 Udr Inc. 140, , ,118 Urban Edge Properties 73,593 98, ,700 Ventas Inc. 119, , ,887 Vornado Realty Trust 169, , ,207,927 8,321, Equities Total 10,989,161 15,049, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 10,989,161 15,049, Other transferable securities and money market instruments (2) Equities Malta 570,000 BGP Holdings plc a 0 6, , Equities Total 0 6, Total Other transferable securities and money market instruments (2) 0 6, Portfolio of Investments 10,989,161 15,055, Other Net Assets 360, Net Assets 15,416, a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 158

161 GLOBAL PROPERTY FUND Investment Objective: The sub-fund is an equity fund which is primarily designed to provide medium to long term capital growth with the secondary goal of generating income. The sub-fund is suitable for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of real estate securities, primarily REITs of U.S. and non-u.s. companies. The sub-fund may invest in companies which derive a significant portion of their earnings from the development or management of real estate situated in the U.S. and non-u.s. countries. The investment instruments of the portfolio include, but not limited to, North American REITs (in the U.S. and Canada), non-u.s. REITs, real estate company equities, bonds (graded as low as BB), short-term securities, equity securities of non-real estate securities and deposits. The underlying REITs may not necessarily be authorized by the SFC in Hong Kong and the dividend policy/payout policy of the sub-fund is not representative of the dividend policy/payout policy of the underlying REITs. The Sub-Fund may also invest in bonds of any maturity rated at BB grades and unrated bond equivalents. If the Investment Manager so determines, it may also temporarily invest in investment grade shortterm securities and/or cash, and non-u.s. securities including sponsored and unsponsored American Depository Receipts. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Global Property Fund Class AA +0.56% Global Property Fund Class AA (HKD) +0.55% Global Property Fund Class I % S&P Developed Property Total Return Index +2.59% PORTFOLIO REVIEW Stock selection in the US, Japan, and Ireland contributed positively to the sub-fund s performance. In the US, the sub-fund s overweight positions in the industrials sector and the data centre and lodging sub-sectors, as well as its underweight positions in the healthcare sector and self-storage sub-sector, contributed to performance. The sub-fund s underweight exposure to Japan, particularly to Japanese real estate investment trusts (REIT), also contributed, as did its overweight exposure to Ireland and Norway. Individual contributors included an Ireland-based residential REIT, a Norway-based real estate company, and a US industrial REIT. The Irish REIT reported strong financial results as a lack of supply in the Irish residential market led to strong operating metrics occupancy rates remained high and rents continued to increase. The market has struggled to increase supply to meet increasing demand as the Irish economy has been relatively strong. The Norwegian firm reported solid financial results, driven by an improved leasing environment throughout the year. The recovery in energy prices later in the period also supported the company as the energy sector is a significant part of Norway s economy. Furthermore, the company benefited from a lack of new supply in Oslo, where it has significant exposure. The US REIT generated strong financial results driven by strong demand for industrial assets in Southern California, and a lack of new supply led to strong rents and high occupancy rates. The company benefited from significant accretive acquisitions and continued to optimise its current portfolio of assets. The sub-fund s underweight exposure to Singapore and Europe, particularly to Spain, Sweden and Switzerland, detracted from performance. Stock selection in Australia, Canada, and Hong Kong also detracted. Individual detractors included various US retail REITs. Sluggish retail sales resulted in an increase in store closures and raised concerns that rental growth may be less likely, and that vacancy rates may begin to rise. This also increased concerns that anchor tenants, such as Sears and Macy s, may need to close more stores to remain profitable and that the retail landscape in the US is changing. This may hamper industry fundamentals in the near term. Another US retail REIT detracted from performance, as disappointing financial results highlighted weakening operating metrics that resulted * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 159 MANULIFE GLOBAL FUND

162 GLOBAL PROPERTY FUND in management being replaced. A Canadian hotel REIT also detracted, as it was negatively affected by concerns about lodging fundamentals in its major markets, which may remain weak as energy prices remain low. The company raised equity through a right offering, which also affected the stock s performance. The sub-fund maintained underweight exposure to Europe and Japan and overweight exposure to the US. The sub-fund s underweight exposure to European property companies stems from an overall weaker economic growth outlook and less attractive valuations compared with other regions. Within Europe, the sub-fund s portfolio manager favours the Nordic, Irish and German real estate markets. The sub-fund s overweight exposure to the US is the result of stronger property fundamentals and a more positive outlook on economic growth. MARKET REVIEW The global real estate sector posted positive returns during the period but underperformed broader global equity markets. Interest rates in the US rose significantly, with most of the increase occurring after the US presidential elections, as the outcome took markets by surprise. Due to the rapid increase in global interest rates, other yield-oriented investments such as real estate declined, leading to their underperformance of broader global equities markets. During the first half of the period, economic growth globally and in the US remained slow, with signs of gradual improvement in the US. In attempts to stimulate the economy, major central banks maintained their monetary easing biases as inflation remained low. In the US, economic data prompted the Fed to continue increasing its benchmark rate, which it did three times during the period. Sentiment in the US improved amid optimism that the administration s pro-growth policies will be enacted. However, expectations declined as it appeared that the administration s ability to enact such policies could take longer than anticipated given recent challenges in passing major legislation. In the latter half of the period, economic data in Europe showed signs of improvement, which led to discussion from the European Central Bank (ECB) about reducing its easing measures. The process of the UK s exit from the EU (known as Brexit ) officially started with the UK invoking Article 50, which was widely anticipated by the markets. European election results in France and the Netherlands also reduced concerns about rising populism in Europe. OUTLOOK The sub-fund s portfolio managers (PM) outlook for the real estate sector remains positive, as economic growth should encourage major central banks to maintain a balanced approach toward interest rates. Recent improvements in Europe have shifted some discussion toward a possible withdrawal of easing measures. However, inflation remains relatively low, and the PM expects interest rates to remain lower over the near term to ensure that the improvement in economic conditions is sustainable. In the US, optimism about economic growth remains high as many of the US administration s potential policies are supportive of growth. However, the pace of further interest rate hikes in the US has raised concerns that may weigh on the real estate sector over the short term. The PM expects that the sector will benefit from an improved economic outlook as companies begin to adjust to newly implemented policies. In Europe, the PM believes ongoing negotiations between the UK and the EU will keep both the Bank of England and the ECB on alert, as final agreements between the two parties have not been reached. The sector s valuation remains attractive as property companies in many regions continue to trade at discounts to their respective net asset values. Despite recent increases, interest rates remain near historically low levels. In the current environment, the PM believes the sector represents an attractive opportunity for investors who are income-oriented or risk-averse. The PM also believes interest from institutional investors may help provide a floor on valuations. Real estate fundamentals remain stable or are improving in most markets as supply remains relatively low. The PM believes expectations for improving economic conditions will continue to support the sector given the supply picture, which should lead to higher occupancy rates and rents. Higher interest rates should not be considered negative for real estate, in the PM s view, if rates are moving higher because of stronger economic growth. The PM believes increased demand for properties and higher rents should alleviate the impact of higher rates. It is also likely that property values could be driven by the lack of supply while demand for quality assets remains strong. The sector continues to offer an attractive dividend yield relative to other yield securities. MANULIFE GLOBAL FUND 160

163 GLOBAL RESOURCES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Australia Canada Transferable securities and money market instruments admitted to an official exchange listing (1) Equities 123,965 Aguia Resourses Limited 44,865 40, ,226 BHP Billiton Limited ADR 995, , ,313 South32 Limited 106, , ,006 South32 Limited 62,776 81, ,952 Western Areas NL 834, , ,043,729 1,337, ,731 Agnico-Eagle Mines Limited 1,190,686 1,559, ,789 Agrium Inc. 561, , ,201 Arc Energy Trust 185, , ,973 Arizona Mining Inc. 479, , ,694 Barrick Gold Corp. 1,192,159 1,110, ,905 Cameco Corp. 551, , ,139 Canadian Natural Resources Limited 930, , ,807 Detour Gold Corp. 296, , ,456 Dominion Diamond Corp. 205, , ,182 Eldorado Gold Corp. 501, , ,767 Enbridge Inc. 384, , ,013 First Quantum Minerals Limited 187, , ,320 Franco-Nevada Corp. 1,366,938 2,050, ,990 Goldcorp Inc. 1,654, , ,877 Lucara Diamond Corp. 139, , ,428 Lundin Mining Corp. 548, , ,615 Methanex Corp. 379, , ,767 Nexgen Energy Limited 118, , ,395 Oceanagold Corp. 430, , ,078 Paramount Resources Limited A 379, , ,150 Potash Corp of Saskatchewan Inc. 268, , ,986 Seven Generations Energy A 485, , ,250 Suncor Energy Inc. 891, , ,344 Tahoe Resources Inc. 251, , ,838 Teck Cominco Limited 447, , ,374 Turquoise Hill Resources Limited 230, , ,787 Vermilion Energy Trust 245, , ,585 West Fraser Timber Company Limited 694, , ,009 Wheaton Precious Metals Corp. 784, , ,986,968 15,031, MANULIFE GLOBAL FUND

164 GLOBAL RESOURCES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Curacao Germany 10,264 Schlumberger Limited 878, , , , ,861 BASF SE 782, , , , Jersey Channel Islands 13,817 Randgold Resources Limited ADR 851,071 1,223, Mexico 851,071 1,223, ,961 Fresnillo plc 404, , , , Netherlands 11,432 Lyondellbasell Industries NV A 1,004, , Sweden 1,004, , ,771 Boliden AB 693,032 1,255, ,032 1,255, Switzerland 25,530 Weatherford International Limited 407,626 97, ,626 97, United Kingdom 2,107 Rio Tinto plc ADR 84,360 89, ,680 Royal Dutch Shell plc A ADR 1,341,600 1,099, ,425,960 1,188, United States 2,759 Alcoa Corp. 70,093 91, ,476 Amerada Hess Corp. 652, , ,067 Anadarko Petroleum Corp. 1,215, , California Resources Corp ,991 Chevron Corp. 1,144,099 1,044, ,960 Concho Resources Inc. 739, , ,293 Devon Energy Corp. 1,244, , ,171 Dow Chemical Company 743,197 1,329, ,892 Eog Resources Inc. 1,129,647 1,165, ,494 Exxon Mobil Corp. 1,130, , ,190 Freeport-McMoRan Copper & Gold 787, , ,644 Halliburton Company 965, , ,926 Helmerich & Payne Inc. 289, , ,521 International Paper Company 446, , ,212 Marathon Oil Corp. 510, , ,753 Monsanto Company 654, , ,216 Newmont Mining Corp. 575, , ,186 Nucor Corp. 355, , ,129 Phillips , , ,983 Pioneer Natural Resources Company 724, , MANULIFE GLOBAL FUND 162

165 GLOBAL RESOURCES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States (continued) 15,642 Range Resources Corp. 931, , ,030 Sherwin-Williams Company 272, , ,804 Southern Copper Corp. 1,079,390 1,281, ,131 Valero Energy Corp. 348, , ,336,421 14,920, Equities Total 40,814,825 38,221, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 40,814,825 38,221, Portfolio of Investments 40,814,825 38,221, Other Net Assets 287, Net Assets 38,508, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 163 MANULIFE GLOBAL FUND

166 GLOBAL RESOURCES FUND Investment Objective: The sub-fund has, as its primary objective, the provision of long term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and equities of companies involved in global resources such as gas, oil, coffee, sugar and related industries throughout the world and which are listed on any stock exchange. The sub-fund may invest in companies which derive a significant portion of their earnings from business activities in global resources sectors. The remaining assets of the sub-fund may include bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Global Resources Fund Class AA -1.92% Global Resources Fund Class l3-0.16% Global Resources Customized Index** +0.00% PORTFOLIO REVIEW Security selection within the metals and mining sub-industry contributed to the sub-fund s performance. Higher exploration and production exposure in the energy component of the portfolio detracted from performance due to the sub-industry s declines. MARKET REVIEW The last 12 months proved to be a volatile period in resource markets, as recovery from the cyclical lows of early 2016 met renewed challenges near the end of the year. Softness in precious metals and energy markets both contributed to declines within the sub-fund and resource markets overall. After experiencing strong returns during the first half of 2016, energy and materials markets parted ways during the latter half of the year, with higher oil and natural gas prices pushing the former higher while softer prices for gold and other precious metals caused difficulties for the latter. In energy, oil prices experienced strong and steady gains as investors took stock of the Organization of the Petroleum Exporting Countries (OPEC) agreement in November to cut production starting in After more than two years of low prices that overstretched many budgets and spurred unrest in some countries, OPEC and non-opec producers finally reached their first deal since 2001 to curtail oil output jointly and ease a global supply glut. In gold and precious metals, results were less favourable during the first half of the period. After reaching a 2-year high of US$1,366 per ounce by July, gold prices retreated to a recent low of US$1,125 per ounce by mid-december. The more bearish investor sentiment towards gold was also evident in exchange traded fund (ETF) holdings, which investors continued to liquidate. Gold producers posted very strong, double-digit returns during the first and second quarters of 2016 as the gold price rose and recovery ensued. However, returns were negative during the last two quarters of the year, with the stronger US dollar and rising equity markets following the US elections creating even greater challenges for the metal s price. Elsewhere in mining, investments in the diversified metals and mining sub-industry contributed as higher prices for copper, nickel, zinc and other materials helped support higher valuations. The commodity price response to China s recent stimulus spending and potential infrastructure spending in the US was swift and strong and, in some cases, not fully supported by underlying fundamentals, as evidenced by softness in December. The second half of the period proved challenging for resource markets, however. North American and global oil prices tested lows close to US$40 per barrel near the end of the period, and base and precious metals prices (other than copper) experienced rollovers following their strong increases in late * The performance return of the fund is calculated in US dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in US dollar terms and on total return basis. ** Customized by Amundi S.A., the new provider of the benchmark following a company restructuring detailed in Shareholder Notice dated 17 December The benchmark comprises of 1/3 MSCI World Energy, 1/3 MSCI World Materials and 1/3 FTSE Gold Mines. MANULIFE GLOBAL FUND 164

167 GLOBAL RESOURCES FUND In the energy sector, the MSCI World Energy Index experienced a second consecutive quarter of declines, mirroring the drop in crude oil prices, where global (Brent) and North American (West Texas Intermediate) declined 9% during the most recent quarter and by roughly 14% year-to-date. The primary driver of the negative drift in oil prices was the deterioration in the commercial crude oil inventory trend, which damaged sentiment and contributed to the declines experienced during the most recent quarter. Oil prices tested year-to-date lows of US$42 per barrel by the third week of June before recovering to the US$46 per barrel level by month-end following a more optimistic view of North American and global demand. Elevated inventory levels continued to be a concern, as the market expected production cuts by OPEC to have had a more material impact in the first half of In the materials sector, strong gains made in the paper and forest products as well as containers and packaging industries were overshadowed by contributions from metals & mining, given the latter s larger weight inside the portfolio. Gold prices recovered from one-year lows of US$1,125 per ounce in December and helped provide a much-needed boost to investments in the precious metals sub-sector during the latter half of the period, rising 15% on a peak-to-trough basis, aided by a softening US dollar that had rolled over during most of However, after reaching a year-to-date high close to US$1,300 per ounce in June, prices retreated 2% in the final month to finish the period slightly lower (down 6%) as investors began discounting the likelihood of major central banks (the Fed, European Central Bank, Bank of England) attempting to navigate a careful reduction in their stimulus policies soon. Outside precious metals, investments in the diversified metals and mining sub-sector were relatively flat during the latter half of the period, with investments in the copper sector rising in response to a late recovery. While prices for economic bellwether copper recovered from short-term softness, others experienced net year-to-date declines. Nickel prices declined 11% following softening demand for stainless steel and relaxation of export rules in Indonesia. Iron ore prices were also under pressure, declining from a recent high of US$89 per tonne to a US$50-55 per tonne range as Chinese steel restocking rolled over. Relatedly, metallurgical coal prices also softened. After two short-term price increases above US$300 per tonne over the last 12 months due to supply disruptions during a period of strong Chinese demand for steel fabrication, prices settled close to the US$145 per tonne range following a normalisation of supply, primarily from Australia. While various supply and demand fundamentals came together to affect various metals prices, the overall sentiment was not as favorable as it was going into 2017 as investors became increasingly cautious about a possible slowdown in China and reduced expectations of the US administration s ability to deliver on promises for increased infrastructure spending and reduced corporate tax rates. OUTLOOK The sub-fund s portfolio manager (PM) believes the global oil supply/demand balance should move into a stronger position through the summer, lessening the overhang of elevated inventory levels. OPEC s decision to extend its output cut into 2018 should support the overall balance. However, at oil prices above US$45 barrel, the US shale producers will likely attempt to increase production, providing a cap on oil prices until balance sheets limit their growth. Outside of the energy sector, declining inventory levels for zinc, aluminium, and others continue to support an improving story for diversified miners the sector has benefited from an increase in commodity prices brought on by a potentially resurgent US and policy actions in China; a broadening out of the global industry recovery; and constrained supply. In precious metals, uncertainty on the geopolitical front in the US and possibly Europe could provide some short-term support for gold prices, benefiting as confidence in the US dollar and other currencies wanes. However, investment demand could be dampened due to two key factors: at least one more interest rate increase is expected in the US before the end of the year, and other central banks could be looking to reduce unconventional monetary stimulus levels soon. Although share prices in the resource sector may experience continued volatility, supply (production) has responded to the lower price environment. As investments in future production initiatives are curtailed across most commodities, there is a risk of insufficient investment for future supply needs. In the short term, the PM continues to find opportunities to invest in quality companies at attractive valuations. Over the longer term, the PM believes that demand for commodities may increase as emerging markets and developed economies continue to grow. 165 MANULIFE GLOBAL FUND

168 GREATER CHINA OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Bermuda 298,000 Beijing Enterprises Water Group Limited 187, , ,000 China Animal Healthcare Limited a 136, ,000 China Gas Holdings Limited 167, , , , Cayman Islands 8,500 AAC Acoustic Technologies Holdings Inc. 91, , ,404 Alibaba Group Holding Limited 706,147 1,180, ,535 Baidu.com ADR 272, , ,000 Bizlink Holding Inc. 81,222 84, ,968 Cheung Kong Property Holdings Limited 243, , ,000 China Everbright Greentech Limited 157, , ,000 China Medical System Holdings Limited 84, , ,000 China Resources Cement Holdings Limited 131, , ,555 China Resources Land Limited 147, , ,968 CK Hutchison Holdings Limited 299, , ,000 Grand Baoxin Auto Group Limited 183, , ,000 JNBY Design Limited 88,273 88, ,000 Minth Group Limited 132, , ,000 Parade Technologies Limited 134, , ,800 Sands China Limited 144, , ,000 Sino Biopharmaceutical 136, , ,300 Tencent Holdings Limited 618,404 1,477, ,000 Vinda International Holdings 133, , ,529 Weibo Corp. ADR 148, , ,934,731 5,819, China 111,000 China Communications Construction 110, , Company Limited H 726,000 China Construction Bank Corp. 562, , ,000 China Life Insurance Company Limited H 192, , ,000 China Molybdenum Company Limited 143, , ,000 China National Materials Company 149, , ,000 China Oilfield Services Limited 247, , ,000 China Petroleum & Chemical Corp. 248, , ,514 Ctrip.com International Limited ADR 243, , ,900 Huayu Automotive Systems Company 133, , Limited A ** 786,000 Industrial & Commercial Bank of China 543, , ,000 Maanshan Iron & Steel 224, , ,000 Ping An Insurance Group Company of 341, , China Limited 28,000 Zhengzhou Yutong Bus Company 87,507 90, Limited A ** 3,226,687 3,444, MANULIFE GLOBAL FUND 166

169 GREATER CHINA OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Hong Kong 83,800 AIA Group Limited 439, , ,200 Asm Pacific Technology Limited 147, , ,500 BOC Hong Kong Holdings Limited 180, , ,000 China Foods Limited 85,781 80, ,500 China Mobile Hong Kong Limited 526, , ,000 China Unicom Hong Kong Limited 190, , ,000 Cnooc Limited 327, , ,000 Galaxy Entertainment Group Limited 203, , ,700 Hong Kong Exchanges and Clearing Limited 210, , ,500 Kingboard Laminates Holdings Limited 184, , ,000 Link Real Estate Investment Trust 113, , ,400 Swire Properties Limited 166, , ,500 Techtronic Industries Company 148, , ,924,732 3,263, Taiwan 11,000 Asmedia Technology Inc. 114, , ,336 China Life Insurance Company Limited 123, , ,000 Compeq Manufacturing Company 128, , ,000 Delta Electronics Inc. 153, , ,000 Foxsemicon Integrated Technology Inc. 140, , ,064 Hota Industrial Manufacturing 248, , Company Limited 1,000 Largan Precision Company Limited 74, , ,000 MediaTek Inc. 127, , ,000 Quang Viet Enterprise Company Limited 138, , ,000 St Shine Optical Company Limited 126, , ,000 Taiwan Paiho Limited 173, , ,838 Taiwan Semiconductor Manufacturing 665,554 1,164, Company Limited 21,096 Tci Company Limited 74, , ,000 Tong Hsing Electronic Industries Limited 115, , ,000 Yageo Corp. 140, , ,545,186 3,411, United Kingdom 22,800 HSBC Holdings plc 186, , , , United States 5,400 Yum China Holdings Inc. 145, , , , Equities Total 13,455,201 16,810, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 13,455,201 16,810, Portfolio of Investments 13,455,201 16,810, Other Net Assets 478, Net Assets 17,288, ** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 254) a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 167 MANULIFE GLOBAL FUND

170 GREATER CHINA OPPORTUNITIES FUND Investment Objective: The sub-fund aims to achieve long-term capital growth. The sub-fund will invest in companies in the Greater China Region including, but not exclusively in, listed equities of companies in Hong Kong, Taiwan, Shanghai and Shenzhen markets or which derive, or which are expected to derive, a significant proportion of their revenue from goods produced or sold, or investments made or services performed, in Mainland China. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Greater China Opportunities Fund Class AA % Greater China Opportunities Fund Class I % MSCI AC Golden Dragon Index % PORTFOLIO REVIEW Stock selection and the underweight in Hong Kong contributed positively to performance. One stock that performed well was a Macau casino operator that rallied on the back of the Macau gaming sector s healthy gross gaming revenue growth. Several of the sub-fund s holdings in Chinese information technology companies were also key contributors to performance. The top contributor was one of the leading micro blogging platforms in China that reported stronger-than-expected earnings due to revenue growth on all business segments, and a continuously expanding user base. Revenue guidance for the second quarter also came above consensus forecasts. The Chinese utilities sector contributed positively to performance, especially gas distribution companies, as the Government continues to push its environmental protection initiatives. Stock selection in Taiwan negatively impacted performance. The main detractor was a Taiwanese automotive components manufacturer holding that specialises in sensors and electronic car parts after it reported weak October sales. The sub-fund s exposure to the energy sector negatively impacted performance; oil prices were volatile as Organization of the Petroleum Exporting Countries (OPEC) and non-opec members decision to extend their production cut was offset by mounting concerns on weak demand and a supply glut. However, this was partly offset by stock selection in Taiwanese consumer staples and the underweight in Taiwanese telecoms. MARKET REVIEW The Greater China equity markets (the markets) had a strong start during the period in review due to companies reporting mostly better-than-expected earnings during the third quarter reporting season, and as China s Producer Price Index (PPI) rose from a 55-month deflation in September and continued through May This was supportive of pricing power returning to corporates, as well as an improvement of the banking industry s asset quality. By the latter part of 2016, the markets reacted negatively to the strengthening dollar and higher bond yields post US President Donald Trump s victory. This raised concerns on the impact of his campaign platforms to inflation and the future path of the Fed s hiking cycle, as well on the future trade relations between the US and the Asian economies. During the first half of 2017, the markets rallied on the back of notable improvements in economic data in China as well as on better-than-expected first quarter earnings and positive guidance (especially from technology and internet related sectors). Taiwan s exports expanded for eight consecutive months in May given solid demand for high tech gadgets and components, which is supportive of the exportoriented economy. Market participants reaction was muted when Moody s downgraded China and Hong Kong s sovereign credit rating in May. By June, MSCI announced the inclusion of the country s A-shares in their global equity indices in two phases starting May 2018; it is a vote of confidence for China to further financial reforms and develop capital markets. Despite the Fed hiking policy rates thrice by 25 basis points (bps) each in December, March, and June to 1.25%, the markets remained resilient as the Fed maintained a dovish outlook on the tightening cycle. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 168

171 GREATER CHINA OPPORTUNITIES FUND OUTLOOK The sub-fund s portfolio manager (PM) remains constructive on the Greater China equity markets despite the good year-to-date performance, as upward revisions on earnings are still stronger than expected. In China, the PM added exposure to the healthcare sector given expectations of a sales pickup driven by the potential new drugs from the tendering process. In Taiwan, the PM expects a super product cycle to stem from the production of the Organic Light- Emitting Diode-based (OLED-based) iphone 8, with the launch date in September. The PM remains positive on electronic component companies that will benefit from new features in smartphones such as dual cameras and 3D sensing for facial recognition. The PM also likes auto parts companies that are seeing stronger orders from Tesla for its upcoming new car model. 169 MANULIFE GLOBAL FUND

172 HEALTHCARE FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Cayman Islands 875,280 3SBio Inc. 1,027,316 1,161, ,027,316 1,161, Denmark 267,220 Novo-Nordisk A/S 12,448,449 11,471, ,448,449 11,471, France 84,558 Sanofi-Aventis SA 8,454,613 8,165, ,454,613 8,165, Germany 24,386 Fresenius Medical Care AG & Company KGaA 2,274,875 2,354, ,563 Fresenius SE 3,320,540 5,123, ,368 Merck KGaA 6,430,474 8,959, ,025,889 16,436, Ireland 53,645 Allergan plc 15,687,479 13,085, ,002 Icon plc 2,445,186 3,359, ,210 Medtronic Inc. 6,509,031 8,467, ,777 Perrigo Company 5,861,239 4,603, ,502,935 29,516, Japan 68,465 Shionogi & Company Limited 3,409,822 3,821, ,409,822 3,821, Jersey Channel Islands 60,753 Shire plc ADR 9,299,873 10,015, ,299,873 10,015, Switzerland 117,437 Novartis AG ADR 9,363,021 9,881, ,358 Roche Holding AG 12,203,793 11,879, ,566,814 21,760, United Kingdom 195,219 Astrazeneca plc 12,304,635 13,115, ,090 Glaxosmithkline plc 8,122,797 7,749, ,372 Smith & Nephew plc 5,225,251 5,355, ,652,683 26,220, United States 128,885 Abbott Laboratories 4,795,817 6,314, ,977 AbbVie Inc. 6,821,446 9,130, ,248 Amgen Inc. 8,012,130 10,944, ,041 Becton Dickinson & Company 4,466,707 8,231, ,325 Biogen Idec Inc. 14,847,680 14,244, ,560 Bio-Rad Laboratories Inc. A 2,626,128 4,626, ,162 Bioverativ Inc. 1,282,371 1,566, ,220 Bristol-Myers Squibb Company 3,381,772 3,479, MANULIFE GLOBAL FUND 170

173 HEALTHCARE FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States (continued) 40,478 Celgene Corp. 4,879,888 5,271, ,327 Cooper Companies Inc. 3,285,248 4,607, ,740 CVS Health Corp. 3,817,719 4,468, ,982 Eli Lilly & Company 3,629,203 4,782, ,829 Emergent Biosolutions Inc. 1,970,769 2,158, ,611 Express Scripts Inc. 10,611,281 9,563, ,825 Gilead Sciences Inc. 14,940,083 10,913, ,118 Globus Medical Inc. A 1,840,105 2,911, ,420 Halozyme Therapeutics Inc. 1,248,386 1,276, ,304 Integer Holdings Corp. 1,120,402 1,666, ,600 Johnson & Johnson 17,008,656 20,280, ,866 Merck & Company Inc. 11,626,465 13,603, ,955 Mimedx Group Inc. 915,829 1,535, ,335 Parexel International Corp. 1,613,621 2,377, ,050 Pfizer Inc. 11,034,065 11,126, ,990 Stryker Corp. 2,476,510 4,312, ,293 United Health Group Inc. 6,062,511 6,559, ,746 Zimmer Holdings Inc. 3,472,290 4,842, ,787, ,795, Equities Total 272,175, ,365, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 272,175, ,365, Portfolio of Investments 272,175, ,365, Other Net Assets 188, Net Assets 299,553, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 171 MANULIFE GLOBAL FUND

174 HEALTHCARE FUND Investment Objective: The sub-fund aims to provide medium to long term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and equities of companies in healthcare and related industries globally and which are listed on any stock exchange. The sub-fund may invest in companies which derive a significant portion of their earnings from medical and pharmaceutical products and services. The remaining assets of the sub-fund may include bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Healthcare Fund Class AA +8.10% MSCI World/Health Care Index +9.83% PORTFOLIO REVIEW Contributors to the sub-fund s performance include a research and laboratory products manufacturer that has been executing well. However, the sub-fund s portfolio manager (PM) believes that most of the outperformance was a result of the company approaching an inflection point in margins beginning in The company s management has been vocal about this, which has attracted new investors. The PM still thinks the stock is inexpensive compared to its competitors. Furthermore, 2018 is only the first year of the company s multi-year margin expansion ramp. A biopharmaceutical company contributed due to its previously depressed valuation and the successful launch of its new drug. The PM believes the company s stock is at such an attractive valuation that the sub-fund is not paying much for the company s product pipeline at this point. A drug manufacturer holding detracted from performance due to the company s inability to turn around the business. The PM believes the stock is attractive at the current level with solid core business franchises. The company is actively seeking new management. A pharmacy healthcare services holding detracted given its loss of market share to its competitors in both the pharmacy benefit management and retail pharmacy businesses. The PM has since trimmed the sub-fund s position in the company. MARKET REVIEW The healthcare sector underperformed the broader equity market due to political uncertainty. The MSCI World (Net) Total Return Index returned 18.20%, while the MSCI World Health Care Total Return Index returned 10.40%. The medical device and equipment sub-sector had the strongest return, while the pharmaceutical sub-sector had the weakest. OUTLOOK The market previously had been volatile due to political pressure. The PM had stated that the political pressure was more noise than actual policy direction, and the market has since proved that. With the latest version of the US health bill favourable to the industry, the sector continues to recover. Increased pricing pressure from private payers on biotechnology and pharmaceutical industries, however, can still be observed. In response to this trend, the PM has picked companies that focus on research and development and have truly meaningful pipelines. Also, many truly innovative companies stocks suffered along with the broader sector. The PM believes the current environment represents an attractive entry point for many high-quality companies. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 172

175 INDIA EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities India 183,219 Apollo Hospitals Enterprise Limited 3,755,826 3,612, ,557 Bajaj Finserv Limited 3,988,593 3,986, ,367 Britannia Industries Limited 3,243,443 3,275, ,384 Cadila Healtcare Limited 3,291,993 3,602, ,287,299 Crompton Greaves Consumer 4,546,818 4,509, Electricals Limited 193,847 Dalmia Bharat Limited 6,271,319 7,406, ,111,765 Federal Bank Limited 3,168,950 3,686, ,899 Godrej Consumer Products Limited 2,428,766 1,900, ,921 Grasim Industries Limited 7,301,680 7,761, ,605 Hcl Technologies Limited 6,607,809 7,300, ,334 Hdfc Bank Limited 7,330,186 11,816, ,748 Hindustan Lever Limited 3,936,154 4,956, ,309 Housing Development Finance Corp. 9,709,649 12,575, ,406,499 Icici Bank Limited 10,095,149 10,802, ,758 Icici Prudential Life Insurance Company 4,587,594 6,192, ,749 India Infoline Limited 2,226,669 3,478, ,401 Indian Oil Corp. Limited 3,082,500 4,471, ,434 IndusInd Bank Limited 3,883,092 5,684, ,592 Infosys Technologies Limited 9,099,775 8,881, ,159,699 ITC Limited 7,984,483 10,814, ,674 Kotak Mahindra Bank Limited 3,572,663 3,824, ,395 Larsen & Toubro Limited 6,253,405 6,641, ,114 Mahindra & Mahindra Financial Services 3,665,930 3,789, ,441 Maruti Suzuki India Limited 6,275,987 9,987, ,255 Motherson Sumi Systems Limited 2,705,609 3,618, ,653 Page Industries Limited 3,037,715 3,535, ,105 Pidilite Industries Limited 4,142,575 4,463, ,520 Reliance Industries Limited 5,562,048 7,270, ,732 Repco Home Finance Limited 2,167,313 2,715, ,486 Sadbhav Engineering Limited 1,334,025 1,730, ,853 Sh Kelkar & Company Limited 2,855,183 2,545, ,542 Sobha Developers Limited 3,880,042 3,935, ,866 Supreme Industries Limited 3,889,765 4,480, MANULIFE GLOBAL FUND

176 INDIA EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets India (continued) 885,323 Tata Motors Limited 5,052,305 5,924, ,553 Tata Steel Limited 3,914,957 3,989, ,090 Tci Express Limited 1,441,140 1,723, ,313 Titan Industries Limited 5,107,719 5,909, ,304 Trent Limited 1,691,747 1,640, ,734 United Spirits Limited 3,869,295 3,849, ,344 Vrl Logistics Limited 3,141,271 3,102, ,465 Whirlpool of India Limited 4,427,199 4,182, ,608 Yes Bank Limited 7,200,501 8,708, ,395 Zee Telefilms 4,497,562 5,027, ,226, ,312, Equities Total 196,226, ,312, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 196,226, ,312, Other transferable securities and money market instruments (2) Equities India 126,899 Godrej Consumer Product 0 1,900, ,037 Icici Bank Limited 0 996, ,897, Equities Total 0 2,897, Total Other transferable securities and money market instruments (2) 0 2,897, Portfolio of Investments 196,226, ,209, Other Net Assets 11,622, Net Assets 243,831, (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 174

177 INDIA EQUITY FUND Investment Objective: The sub-fund aims to provide long-term capital growth for those investors who hold a long-term investment view and are prepared to accept significant fluctuations in the value of their investments. The sub-fund s investment portfolio will consist mainly of equity-related investments and equities of companies covering the different sectors of the Indian economy and which are listed on a stock exchange either in India or overseas. The remaining assets of the sub-fund may include convertible bonds, bonds, deposits and other investments. Investments in the Indian market shall be made through a Foreign Institutional Investor ( FII ) registered with the India regulator. Such an FII can be either the Company or the Investment Manager. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* India Equity Fund Class AA % India Equity Fund Class I % MSCI India 10/40 Index % PORTFOLIO REVIEW During the period under review, volatility was high in India and domestic factors were the main drivers of the markets. Indian markets initially saw a rally, but during the latter part of the first half, markets corrected after the Indian government took the surprise step to demonetize high denomination notes, affecting money supply and economic activities. The markets also saw the surprise victory of Donald Trump in the US presidential elections in November, creating a lot of uncertainty for US-focused businesses in India like IT services and pharmaceuticals. During the second half of the period, Indian markets saw a sustained rally along with currency appreciation due to two key factors which contributed to performance. Firstly, the Indian Union Budget was presented in the beginning of February, which focused on fiscal prudence and sharper spending focus. Secondly, the ruling party of the Central Government Bharatiya Janata Party (BJP) emerged victorious in the state assembly polls in March, and this augured well for political and policy stability. On the domestic front, India saw a better country balance sheet as current account deficit came down, forex reserves went to all-time highs, and inflation went to an all-time low, pushing up real rates. High real rates attracted strong foreign institutional investor (FII) inflows, and as a result, the Indian rupee also appreciated during the period. Inflation has fallen to historic lows, driven by lower food prices and stable oil prices. Despite a relatively good macro backdrop, aggregate demand has yet to show a decisive bounce-back, keeping capacity utilization low and industrial output weak. This is mainly caused by the stress in the rural economy, which was reeling under the pressures of lower global prices in agro-commodities, as well as back to back years of below normal rainfall in 2014 and With normal rainfalls in CY2016, and projection of normal monsoons in CY2017 by the Indian Meteorological Department some alleviation of stress in rural India is expected going forward. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 175 MANULIFE GLOBAL FUND

178 INDIA EQUITY FUND There were three important policy developments during the period which could have a far reaching impact going forward: 1) GST bill The long-awaited GST bill saw continued legislative progress after becoming law in September 2016, and is now set to be implemented from 1 July GST will unify India into a single market and is expected to raise productivity and ease of doing business over the coming years. This is also likely to reduce tax avoidance and expand the tax base in India. 2) Demonetization The government demonetized existing INR500 and INR1000 notes in November The primary motive was to eliminate unaccounted stashes of cash to help fight corruption, as well as reduce tax avoidance, money laundering and terrorist financing. 3) Push on affordable housing The government has identified affordable housing as a key area in its infrastructure development plan, providing various incentives which will lower borrowing cost and improve affordability for a large section of home buyers The PM believes this scheme can potentially kick-start housing demand in India and start the household capex cycle again. The sub-fund was overweight in financials, consumer staples, real estate, and consumer discretionary. The focus of the sub-fund was to play on domestic consumption, increase in domestic savings, and increasing formalization of the economy. With that perspective, within financials, the sub-fund was primarily overweight on retail lending-focused names, as well as wealth management and insurance companies which are beneficiaries of rising financial savings. During the period, the portfolio was underweight in cyclical and capital intensive sectors like energy, telecom and capital goods names within the industrial basket. The portfolio was underweight in healthcare as the sector is facing pricing pressure in the US market and increased regulatory scrutiny. The portfolio was also underweight in information technology owing to the sector facing disruption-led challenges and weak earnings outlook. Stock selection in energy, financials, consumer discretionary, and healthcare were big contributors to performance. From an allocation point of view, an underweight in information technology, healthcare, telecommunication, as well as an overweight allocation in financials were the major positive contributors. On the other hand, stock selection in utilities and industrials were the main detractors. MANULIFE GLOBAL FUND 176

179 INDIA EQUITY FUND MARKET REVIEW During the first three months of the period (1 July 2016 to 30 September 2016), Indian markets rallied along with other emerging markets. July saw a sharp rally due to overall emerging markets rallying and attracting passive inflows, as well as expectation of the GST bill passing in the legislature fueling risk-on sentiments. August saw a marginal rally as the GST bill got passed in the upper house and the earnings season was in-line with expectations. The new RBI governor was announced; since he was already the deputy governor of the RBI, it meant relief on policy continuity for the market. September saw correction in India despite emerging markets doing well, as cautious commentary from technology and banking sectors dampened investor sentiment. During the following quarter (1 October 2016 to 31 December 2016), markets were driven down by the shock of demonetization and underperformed. October saw markets consolidating in line with broader emerging markets with the US presidential elections looming on the horizon. On the other hand, the new RBI governor cut rates in line with market expectations by 25bps amid falling inflation and weak industrial growth. November saw a sharp correction in India, underperforming broader emerging markets as demonetization got announced. During December, the markets consolidated even as other emerging markets rallied, as the Indian markets tried to process how the after effects of demonetization will play out going forward on the Indian economy. During the third quarter of the period under review (1 January 2017 to 31 March 2017), Indian markets rallied on a sustained basis every month, outperforming other emerging markets. The rally in January was fuelled by better than expected earnings vs. muted expectations after demonetization. February saw a rally after the budget was presented. It aimed at reducing fiscal deficit and improved quality of spending and steered clear of excessive populist measures. In March, the market continued to rally after the surprising strength of the BJP in state assembly polls; it cemented Prime Minister Modi s authority within the BJP and the government. This should be positive for implementation of the Central Government s agenda, which is centered around anti-corruption, indirect tax reform, and state spending on infrastructure, housing and rural development. During the fourth quarter under review (1 April 2017 to 30 June 2017), Indian markets gave positive returns but underperformed other regional markets (and the broad emerging market basket), as the market took a breather from the strong performance in the previous three months and considered the uncertainties emerging from the upcoming GST implementation on 1 July Overall, Indian markets gave strong positive returns. Materials, energy, industrials, financials, consumer staples, and consumer discretionary performed the best and outperformed the markets. Healthcare, information technology, telecommunication, and utilities underperformed. 177 MANULIFE GLOBAL FUND

180 INDIA EQUITY FUND OUTLOOK The PM remains optimistic on the domestically driven India story in times of global uncertainty. Due to prudent policy-making both by the government and RBI, and with help from falling crude prices, India s macro has continued to remain stable with lower current account deficit and all time high foreign currency reserves. Despite lower nominal rates, real rates are at a high due to falling inflation. This has led to more financial savings joining formal avenues like bank deposits, equities, bonds, insurance (as opposed to real estate and gold earlier), and cost of funds has come off. The PM is bullish on financials like mid-sized private banks, wealth managers, and insurance. The PM also likes autos as affordability improves with lower financing costs. The PM is also optimistic that the Indian economy will formalize driven by GST implementation and become more efficient and tax compliant. This also opens opportunity for the organized sector to gain market share for companies in organized retail, apparels, jewellery and light electrical companies and the PM is bullish on them. Keeping these themes in mind, the PM is overweight in financials, consumer discretionary, real estate, cement stocks within materials, and consumer staples. The PM has recently increased weight in consumer staples as it has emerged as a key beneficiary of lower tax rates under GST. The PM is underweight in technology owing to the sector facing disruption-led challenges and a weak earnings outlook. The PM also remains negative and underweight on telecom, which is capital-intensive and seeing disruptive competition. The PM is underweight in healthcare, where large players are seeing generic drugs price erosion in US and regulatory challenges. The PM is also underweight on global cyclicals like energy. MANULIFE GLOBAL FUND 178

181 JAPANESE GROWTH FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Japan 70,500 Acom Company Limited 323, , ,000 Chiyoda Corp. 831, , ,500 Chugai Pharmaceutical Company Limited 894, , ,100 Concordia Financial Group Limited 256, , ,400 Dai-ichi Mutual Life Insurance Company 1,706,901 2,157, ,700 Daito Trust Construction Company Limited 891, , ,000 Eisai Company Limited 458, , ,800 Fanuc Limited 1,159,609 1,313, ,600 Fujitec Company Limited 219, , ,100 Glory Limited 1,548,827 1,676, ,400 H2O Retailing Corp. 573, , ,100 Hakuhodo Dy Holdings Inc. 1,032,250 1,131, ,800 Hoshizaki Electric Company Limited 613, , ,600 Hoya Corp. 1,557,281 2,059, ,500 Isuzu Motors Limited 1,185,891 1,229, ,600 Itochu Corp. 929,571 1,154, ,900 Japan Tobacco Inc. 2,095,327 2,002, ,900 Kao Corp. 412, , ,800 KDDI Corp. 2,581,956 2,302, ,600 Lasertec Corp. 98, , ,500 Matsushita Electric Industrial 2,006,654 2,901, Company Limited 82,900 Mazda Motor Corp. 1,223,226 1,159, ,000 Meitec Corp. 859,904 1,024, ,900 Mitsubishi Ufj Financial Group Inc. 1,514,466 1,924, ,600 Mitsui & Company Limited 865, , ,000 Mitsui Fudosan Company Limited 2,801,169 3,035, ,600 Nikkiso Company Limited 584, , ,700 Nippon Telegraph & Telephone Corp. 297, , ,900 Nishio Rent All Company Limited 756, , ,600 Nissan Motor Company Limited 1,631,456 1,690, ,300 Optex Company Limited 0 570, , ,500 Pola Orbis Holdings Inc. 578, , ,500 Recruit Holdings Company Limited 1,704,109 2,247, ,300 Sankyo Tateyama Inc. 169, , ,100 Santen Pharmaceutical Company Limited 717, , ,700 Sanwa Holdings Corp. 1,529,647 1,686, ,100 Sato Holdings Corp. 404, , ,600 Secom Company Limited 584, , ,400 Sekisui Chemical Company Limited 979,057 1,208, ,900 Seven Bank Limited 1,179,800 1,433, ,600 Shin-Etsu Chemical Company Limited 1,020,020 1,326, MANULIFE GLOBAL FUND

182 JAPANESE GROWTH FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Japan (continued) 18,000 Shionogi & Company Limited 914,193 1,004, ,900 Softbank Corp. 1,459,217 2,101, ,100 Sumisho Computer Systems 1,178,843 1,307, ,300 Sumitomo Mitsui Financial Group Inc. 2,413,711 2,940, ,000 Sumitomo Osaka Cement Company Limited 1,257,996 1,368, ,700 Sushiro Global Holdings Limited 718, , ,100 Toyota Industries Corp. 1,038,897 1,112, ,100 Toyota Motor Corp. 898, , ,600 Yahoo! Japan Corp. 896, , ,124,746 59,730, Equities Total 52,124,746 59,730, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 52,124,746 59,730, Portfolio of Investments 52,124,746 59,730, Other Net Assets 3,917, Net Assets 63,647, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 180

183 JAPANESE GROWTH FUND Investment Objective: The sub-fund aims to achieve capital growth principally from a portfolio of Japanese stocks, with the emphasis on larger companies. Scope exists for a proportion of the sub-fund to be invested in warrants. It should be noted that the value of assets invested in warrants is subject to greater fluctuations, warrants being more volatile than ordinary shares. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Japanese Growth Fund Class A % Japanese Growth Fund Class AA % Japanese Growth Fund Class I % TOPIX Index % PORTFOLIO REVIEW The strongest performances in the sub-fund came from a Japanese multinational electronics corporation, a Japanese multinational banking and financial services company and a top-tier Japanese life insurance company. The mentioned electronics corporation is performing well partly due to the positive news about the smooth operation of their electric vehicle (EV) battery production. The most negative contributors (as compared to the benchmark) were a Japanese telecommunications operator and a Japanese multinational consumer electronics and video game company which we do not own in the portfolio. MARKET REVIEW The market rose continuously over the 12 months. In the first six months, this was driven by yen weakness as the currency declined from 100 to under 115 versus the US dollar. Since January, the currency stabilised, fluctuating between 110 and 115. The market, however, continued to rally on the back of stronger global trade and an improving domestic economy. The Japanese unemployment rate fell below 3%, despite an increase in the number of people joining the workforce. The jobs-to-applicants ratio hit a new high of 1.49 in May. The labour market tightened, but core consumer price index (CPI) remains weak. However, towards the end of the 12 months, the markets began to talk about the possibility of rising inflation later in 2017 as the Bank of Japan and other central banks indicated a more hawkish outlook for monetary policy. Over the 12 months, the best performing sectors were other products (mainly Nintendo), insurance, and brokers. The worst performing sector was pharmaceuticals. The pharmaceutical sector was hit by concerns both before and after the US elections about the US government acting on drug prices. The best performing stocks over the 12 months included Showa Denko, which benefited from improving profit margins in some of its core petrochemicals. The worst performer was Ono Pharmaceutical which suffered from an unexpected 50% price cut in its cancer drug Opdivo. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 181 MANULIFE GLOBAL FUND

184 JAPANESE GROWTH FUND OUTLOOK Up until recently, Japan was the lone outsider of political certainty in a world of political uncertainty, and chaotic election and referendum outcomes. Now, things aren t looking so rosy for Mr Abe in Japan either after the fallout from various scandals related to Mr Abe and his family. The election outcome of the Tokyo Metropolitan Government elections was a landslide for Ms Koike s new Tomin First Party and a disappointment for the Liberal Democratic Party (LDP). It should be noted that these are only local and national elections. Outside of Brexit, unexpected political outcomes have had a limited impact on equity markets. All the earnings announcements for the March fiscal year end are now complete. It is now clear that earnings growth stagnated in 2016 as the yen strengthened and companies struggled to grow sales, both at home and overseas. Despite this, earnings growth remained positive with several strong performers, including construction and machinery companies. Japanese companies are also expecting earnings growth in However, most companies are showing restraint in their optimism, using currency forecasts of 100 or 105 yen/us dollar. This implies that upward earnings revisions should be possible over the course of the year, which would be supportive for a further rise in the equity market. There were notable strong earnings growth forecasts for next year from Sony, Tokyo Electron, and Fujitsu among others. Japan remains the cheapest developed market on both price to earnings and price to book. Japan s return on equity (ROE) has also been steadily improving and currently stands at 8%. The sub-fund s portfolio manager (PM) believes this could reach 10% by Although this is still below the US (13%), it is on a faster growth path. One of the drivers for higher ROE is the record level of share buybacks. Most Japanese corporates have a net cash position giving them ample opportunity to make further buybacks in MANULIFE GLOBAL FUND 182

185 LATIN AMERICA EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Argentina 8,245 Banco Macro Bansud SA ADR 607, , ,764 Empresa Distribuidora Y Comercializadora 455, , Norte 20,444 Grupo Supervielle 334, , ,215 Pampa Energia Sa ADR 565,281 1,070, ,962,592 2,745, Bermuda 10,951 Credicorp Limited 1,102,344 1,973, ,102,344 1,973, Brazil 290,301 Ambev SA ADR 1,609,413 1,595, ,107 Banco Bradesco SA ADR 2,738,389 3,313, ,580 Banco Itau Holding Financeira SA 1,295,361 1,227, ,600 BB Seguridade Participacoes SA 1,531,427 1,564, ,300 BM&F Bovespa SA 995,027 1,527, ,422 BR Malls Participacoes SA 1,282,745 1,350, ,811 BRF Brasil Foods SA ADR 1,779,029 1,615, ,400 Companhia de Concessoes Rodoviarias 468, , ,662 Companhia de Transmissao de Energia 639, , Eletrica Paulista 99,700 Hypermarcas SA 637, , ,694 Itau Unibanco Holding SA ADR 2,655,254 2,954, ,000 Klabin SA 712, , ,400 Kroton Educacional SA 1,547,514 1,809, ,636 Linx SA 802,274 1,091, ,920 Lojas Renner SA 901,090 1,356, ,750 Movida Participacoes SA 502, , ,548 Petroleo Brasileiro SA ADR 1,649,318 1,119, ,800 Raia Drogasil SA 1,019,955 1,696, ,700 Smiles SA 390, , ,300 Ultrapar Participacoes SA 2,064,597 2,134, ,600 Weg SA 661, , ,884,146 29,103, Chile 333,346 Parque Arauco SA 766, , ,935 Saci Falabella 1,646,620 1,482, ,412,981 2,323, Luxembourg 79,950 Adecoagro SA 877, , , , MANULIFE GLOBAL FUND

186 LATIN AMERICA EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Mexico Peru 479,400 Alpek SA de CV 562, , ,700 Alsea SAB de CV 880, , ,100 Banco del Bajio SA 869, , ,019 Becle SA de CV 456, , ,670 Bolsa Mexicana de Valores SAB de CV 827, , ,005 Corporacion Inmobiliaria Vesta SAB de CV 905, , ,554 Fomento Economico Mexicano 1,350,613 2,106, SA de CV ADR 235,000 Grupo Aeroportuario del Centro Norte 665,070 1,408, SAB de CV 383,283 Grupo Financiero Banorte SAB de CV 1,743,373 2,445, ,415 Grupo Hotelero Santa Fe SAB de CV 507, , ,300 Infraestructura Energetica Nova SAB de CV 1,420,079 1,618, ,045 Promotora y Operadora de Infraestructura 210, , SAB de CV 124,072 Promotora y Operadora de Infraestructura 1,281,820 1,503, SAB de CV 500,031 Qualitas Controladora SAB de CV 723, , ,404,635 15,077, Grana y Montero SA Equities Total 44,644,541 52,011, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 44,644,541 52,011, Portfolio of Investments 44,644,541 52,011, Other Net Assets 365, Net Assets 52,377, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 184

187 LATIN AMERICA EQUITY FUND Investment Objective: The sub-fund aims to make investments on a diversified basis to achieve long term capital growth for those investors who are prepared to accept significant fluctuations in the value of their investments. The sub-fund s underlying investment portfolio will consist mainly of equity-related investments and equities of companies covering different sectors of the Latin American economy, including, but not limited to Brazil, Chile, Colombia, Mexico and Argentina and which are listed on any stock exchange. The remaining assets of the sub-fund may include convertible bonds, bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Latin America Equity Fund Class AA +9.08% MSCI Latin America 10/40 Index % PORTFOLIO REVIEW The sub-fund generated a positive return over the 12-month period under review, albeit one that lagged underlying markets. This underperformance was primarily the result of stock selection in Brazil and Mexico. The value-focused commodities rally in Brazil dominated for much of the period under review. While portfolio holdings continued to post strong gains and delivered on their investment expectations, they failed to keep pace. This optimism over commodity prices may prove short-lived and will over time be outstripped by the high quality, strong cashflow generation of the companies in the portfolio. The managers decision to keep raising Argentina exposure over the last 12-months has been rewarded as utilities have benefited from dramatic tariff revisions and banks are beginning to position themselves for a multi-year growth phase. Fundamentals remain supportive. Over the period under review, the sub fund s exposure to Mexico was reduced in favour of a higher exposure to Argentina. On a sector analysis, exposure to real estate, energy and utilities rose as exposure to financials and consumer discretionary fell. The sub-fund currently has a substantial overweight exposure to Argentina, counterbalanced by an underweight exposure to both Chile and Colombia. Exposure to Brazil is marginally overweight, with Mexico marginally underweight. Exposure to the materials sector remains significantly underweight, whilst the sub-fund has an overweight exposure to both consumer discretionary and financials. MARKET REVIEW Latin American stockmarkets were generally firmer across the 12-month period ending 31 June 2017, though underperforming emerging markets more widely. Share prices were however unusually volatile, with all markets in thrall to the US presidential election process, and Brazil dominated by political developments. The frontier market of Argentina secured the strongest gains after it removed capital controls and made further progress along the path to reform under the Macri administration, though it failed to secure reclassification as an MSCI emerging market at the very end of the period under review. Colombia made the smallest gains despite signing an historic peace deal with the FARC leftist rebel group. All eyes were however on the US presidential elections given candidate Donald Trump s threat to tear up trade agreements and pursue an overtly nationalistic agenda if elected. When Trump somewhat surprisingly won the election in November to become the 45th president of the United States, stockmarkets and currencies therefore reacted negatively with sharp falls across the region in anticipation of the hit to GDP that would inevitably follow a reduction in exports to the US. This however proved to be a low point with markets soon beginning to recover as it became apparent that President Trump was back-pedalling on some of his more extreme pre-election rhetoric and indeed having difficulty in getting any of his campaign promises enacted. Mexico, given its close proximity to, and close dependency upon, the US was most impacted by these developments. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 185 MANULIFE GLOBAL FUND

188 LATIN AMERICA EQUITY FUND In Brazil, the region s largest market, share prices also reacted sharply to Trump s election having shown marked strength beforehand as the removal of Dilma Rousseff from office had seemed to draw a line under recent political scandals and herald a period of relative sobriety in which to pursue much needed economic and social reform under the more centrist Michel Temer as president. And indeed this appeared to be happening with the economy improving and some reforms enacted, until any renewed confidence was sorely dashed in May when Temer was alleged to have been party to a bribery scandal, prompting sharp falls in share prices. These developments have now thrown doubt over the process of pension reform, without which the nation s finances cannot be fixed, and threaten to stop the economy s nascent recovery in its tracks. Nevertheless, Brazilian shares still generated a strong return over the period as a whole, supported in part by commodity prices, which were also heavily influenced by hopes for accelerating world economic growth led by the US under President Trump. OUTLOOK Politics will be an increasing focus over the next 18 months with presidential elections in Chile, Mexico, Brazil and Colombia as well as key mid-terms in Argentina, the sub-fund s managers are optimistic that the trend is towards more market-friendly policies across the region. The economic backdrop is also improving with GDP growth gathering pace and inflation falling in most countries. This should drive operating leverage and earnings growth, thus supporting share prices. Brazil remains under a cloud with President Temer by no means secure in office. Pension reform is now at risk and may have to be tackled after the 2018 presidential election. However, the economy is in a much better position than at the time of Dilma Rousseff s impeachment in Inflation is now below 4.0%, the central bank cut rates 1.0% to 10.25% in May and should have additional room to cut to around 8.5% to 9.0% by year end, unemployment is now falling for the first time in two years and GDP growth is beginning to strengthen. Consequently, while political uncertainty could extend until new presidential elections in 2018, there is still room for Brazil to deliver meaningful earnings growth over the next two years and while the sub-fund s exposure to Brazil has fallen, the managers still see an attractive risk-reward in Brazil and remain overweight. Political uncertainty in Mexico, compounded by risks associated with the Trump-inspired NAFTA renegotiation, as well as a relatively poor economic position, continue to support an underweight exposure. This is compounded by risks associated with the Trump-inspired NAFTA renegotiation and with inflation now eroding real wages, with interest rates expected to rise further in order to anchor inflation expectations, and with the strength of the consumer likely to come under pressure the managers retain an underweight position. The opportunity set remains attractive. Despite the political uncertainty, the sharp fall in Brazil after the infamous tape recording of Temer was released has reduced several names that may have been missed in 2016 to more appealing valuations. Increasing comfort that Trump is unlikely to deliver on his more extreme plans for US-Mexico relations similarly leaves the country offering several investment options. MANULIFE GLOBAL FUND 186

189 RUSSIA EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Kazakhstan 435,087 KazMunaiGas Exploration Production GDR 4,822,474 4,102, ,822,474 4,102, Netherlands 147,347 Yandex NV A 3,119,189 3,854, ,119,189 3,854, Russian Federation 699,034 Gazprom OAO ADR 3,100,068 2,760, ,278 Lenta Limited Reg 6,016,598 3,187, ,730 Lukoil PJSC ADR 11,050,422 9,134, ,511 Megafon OAO GDR Reg 4,031,772 3,754, ,278 NovaTek OAO GDR 4,405,202 5,613, ,795 Phosagro OAO GDR 3,168,568 3,168, ,752 Phosagro OAO 1,021,878 1,009, ,308 Rosneft Oil Company GDR 3,071,199 2,946, ,828 Rosneft OJSC 5,053,284 4,753, ,292 Severstal GDR 3,437,016 4,249, ,506 Tatneft ADR 112, , ,750 Tatneft ADR 3,281,590 4,017, ,397 Tmk PJSC GDR 4,698,753 2,892, ,729 X5 Retail Group NV GDR Reg 3,160,883 5,893, ,610,137 53,513, United Kingdom 365,116 Kaz Minerals plc 2,080,734 2,485, ,246 Nostrum Oil & Gas plc 2,076,939 1,343, ,157,673 3,829, Equities Total 67,709,473 65,300, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 67,709,473 65,300, MANULIFE GLOBAL FUND

190 RUSSIA EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Equities Russian Federation 1,603,018 Alrosa Company Limited 1,834,212 2,350, ,006,953 Detsky Mir Pjsc Dsky Rm 2,888,744 3,175, ,467 Magnit Ojsc 3,074,668 2,851, ,411,679 Moscow Exchange Micex 5,488,162 6,019, ,702,232 Sberbank RF 1,914,883 4,188, ,903 Surgutneftegas Ojsc Pfd 227, , ,315,618 Surgutneftegaz Pfd 4,812,493 4,024, ,879,356 Unipro Pjsc Upro Rm 5,373,485 4,000, ,614,272 26,841, Equities Total 25,614,272 26,841, Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities 25,614,272 26,841, Portfolio of Investments 93,323,745 92,141, Other Net Assets 2,046, Net Assets 94,188, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 188

191 RUSSIA EQUITY FUND Investment Objective: The sub-fund aims to provide long-term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and securities of companies located in Russia and other companies located outside Russia whose income is predominantly derived from Russia, all of which in accordance with the regulations, are listed or traded on Regulated Markets as referred to in the Prospectus. The sub-fund may also invest in other countries in the Commonwealth of Independent States. The remaining assets of the sub-fund may include bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Russia Equity Fund Class AA % MSCI Russia 10/40 Index % PORTFOLIO REVIEW The sub-fund generated a strong return over the 12-month period ending 30 June 2017, significantly ahead of the underlying market. This outperformance could be ascribed to its off-benchmark positions in Kazakhstan as well as its stock selection in Russia itself. Over the period under review, the sub fund s exposure to the materials and financials sectors was reduced significantly in favour of a higher exposure to energy. MARKET REVIEW Russian shares moved broadly higher over the 12-month period ending 30 June In the absence of any significant domestic developments, this appreciation most probably reflects an improvement in underlying activity as the economy gradually emerges from a prolonged recession. GDP is now expected to grow by between 1% and 2% in At the same time inflation, which was running as high as 13% as recently as 2015, looks set to end 2017 below its official 4% target as the central bank has kept interest rates comparatively high. Although interest rates are now coming down, with the central bank s key rate falling from 10.5% to 9.0% over the period under review, these cuts have not kept pace with the fall in inflation with real interest rates therefore remaining stubbornly high. This in turn has helped to support the value of the rouble, which has managed to avoid many of the gyrations seen in other emerging market currencies as the US dollar has first risen, and then fallen, in reaction to the election of President Trump. The oil price is another factor that can have a marked impact on the value of Russian assets, be it shares prices or the currency. Oil, as measured by Brent Crude, both started and finished the 12-month period at a price of just under USD50 per barrel having been above USD55 per barrel over the early months of 2017 following a rare agreement amongst OPEC members, subsequently joined by other countries including Russia, to limit production in order to help support prices. These developments, although seeming to have little impact on the value of the rouble, where high real interest rates tended to dominate, did have some influence over share prices. This was evident from the spike in share prices seen around the end of the year. At their best, Russian share prices were some 30% above the levels prevailing at the beginning of the period under review, in US dollar terms, though they ended the period up little more than 10%. The high value of the rouble relative to oil tended to benefit consumer-related stocks, especially those with an import focus, though it was a negative for commodity companies whose revenues are largely in US dollars but costs predominantly in roubles. Separately, there was persistent speculation over much of the period under review that the government would force state-owned enterprises to increase their dividend payouts to 50% of IFRS earnings. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 189 MANULIFE GLOBAL FUND

192 RUSSIA EQUITY FUND OUTLOOK The approach of the sub-fund s managers has always been more suited to markets that care about company-specific factors rather than being driven by top-down factors and momentum. During such phases the sub-fund is well positioned to produce a strong performance relative to underlying markets. Against a stable macroeconomic and political environment in Russia at present the managers are looking forward to markets being driven by fundamentals over the coming months. Following a period of underperformance relative to emerging markets, recent weakness may prove an excellent entry point for long term investors in Russia. MANULIFE GLOBAL FUND 190

193 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Supranationals, Governments and Local Public Authorities, Debt Instruments Australia Brazil Canada Germany 355,000 New South Wales Treasury Corp % 1/May/ ,000 Queensland Treasury Corp % 21/Jun/ ,000 Queensland Treasury Corp % 21/Jun/ ,000 Queensland Treasury Corp % 21/Jul/ ,000 Queensland Treasury Corp % 21/Feb/ , , , , ,438 60, ,283 94, , , ,012, , Brazil (Govt of) % 1/Jan/ ,214 92, ,214 92, ,000 Canada (Govt of) 1.750% 1/Sep/ , , ,000 Canada Housing Trust 1.700% 15/Dec/ , , ,000 Canada Housing Trust No % 41,565 42, /Dec/ ,000 Export Developement Canada 3.250% 131, , /Aug/ ,000 Export Developement Canada 3.500% 244, , /Feb/ ,000 Ontario Canada (Province of) 4.200% 66,344 66, /Jun/2020 1,051,720 1,000, ,000 Kreditanstalt fuer Wiederaufbau 3.750% 29/May/ ,578 60, ,578 60, MANULIFE GLOBAL FUND

194 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Indonesia 2,324,000,000 Indonesia (Govt of) 7.000% 15/May/ , , ,307,000,000 Indonesia (Govt of) 7.000% 15/May/ ,490 99, ,000,000 Indonesia (Govt of) 7.500% 15/Aug/ ,377 70, ,291,000,000 Indonesia (Govt of) 8.250% 15/Jul/ , , ,280,000,000 Indonesia (Govt of) 8.375% 15/Mar/ , , ,088,000,000 Indonesia (Govt of) 8.375% 15/Sep/ , , ,318,000,000 Indonesia (Govt of) 8.750% 15/May/ , , ,000,000 Indonesia (Govt of) 9.000% 15/Mar/ ,352 52, Mexico 966, , ,000 Banco Nacional 4.375% 14/Oct/ , , ,660 Mexico (Govt of) Bonos 4.750% 14/Jun/ , , ,125 Mexico (Govt of) Bonos 6.500% 10/Jun/ , , ,885 Mexico (Govt of) Bonos 7.750% 29/May/ , , ,885 Mexico (Govt of) Bonos 8.000% 11/Jun/ , , ,200 Mexico (Govt of) Bonos 8.000% 7/Dec/ , , ,915 Mexico (Govt of) Bonos 8.500% 13/Dec/ , , ,295 Mexico (Govt of) Bonos % 5/Dec/ , , ,475,779 1,276, New Zealand 90,000 New Zealand (Govt of) 3.000% 15/Apr/ ,242 67, ,000 New Zealand (Govt of) 5.000% 15/Mar/ , , ,000 New Zealand (Govt of) 5.000% 15/Mar/ , , ,000 New Zealand (Govt of) 6.000% 15/Dec/ ,021 81, ,000 New Zealand (Govt of) 6.000% 15/Dec/ , , ,000 New Zealand (Govt of) 6.000% 15/May/ , , ,000 New Zealand (Govt of) 6.000% 15/May/ ,016 45, Norway 1,165,908 1,066, ,323,000 Norway (Govt of) 4.500% 22/May/ , , , , Philippines 3,075,000 Philippine (Govt of) 4.950% 15/Jan/ ,239 63, ,000,000 Philippine (Govt of) 6.250% 14/Jan/ , , Portugal 657, , ,000 Portugal (Govt of) 5.125% 15/Oct/ ,505 86, ,505 86, Republic of Korea (South) 24,610,000 Korea (Govt of) 0.000% 10/Sep/ ,333 21, ,610,000 Korea (Govt of) 0.000% 10/Mar/ ,998 21, ,610,000 Korea (Govt of) 0.000% 10/Sep/ ,650 21, ,981 63, Singapore 520,000 Singapore (Govt of) 3.250% 1/Sep/ , , , , MANULIFE GLOBAL FUND 192

195 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Supranational 175,000 Asian Development Bank 4.625% 6/Mar/ , , ,000 Asian Development Bank 5.000% 9/Mar/ , , ,590,000 Asian Development Bank 5.900% 102, , /Dec/2022 7,080,000 Asian Development Bank 6.450% 8/Aug/ , , ,040,000 Asian Development Bank 6.950% 31,329 32, /Jan/ ,000 Inter-American Development Bank 6.500% 207, , /Aug/ ,000 International Bank for Reconstruction & 134, , Development 2.800% 13/Jan/2021 1,110,000 International Bank for Reconstruction & 166, , Development 3.625% 22/Jun/ ,000 International Bank for Reconstruction & 168, , Development 4.625% 26/Feb/ ,000 International Bank for Reconstruction & 234, , Development 4.625% 6/Oct/2021 6,800,000 International Bank for Reconstruction & 103, , Development 5.750% 28/Oct/ ,000 International Finance Corp % 236, , /Jul/ ,000 Nordic Investment Bank 1.375% 15/Jul/ ,520 98, ,837,096 1,740, Sweden 430,000 Sweden (Govt of) 5.000% 1/Dec/ ,075 60, ,075 60, Supranationals, Governments and Local Public Authorities, Debt Instruments Total 9,629,285 8,672, Mortgage and Asset Backed Securities United States 61,845 Connecticut Avenue Securities FRN 25/Oct/ ,845 63, ,845 63, Mortgage and Asset Backed Securities Total 61,845 63, Australia Canada Bonds 55,000 Westpac Banking Corp % 21/Oct/ ,499 77, ,000 Westpac Banking Corp % 11/Feb/ ,053 85, , , ,000 Enbridge Inc % 1/Dec/ , , ,000 Transcanada Pipelines Limited 3.750% 62,327 63, /Oct/ ,000 TransCanada PipeLines Limited 4.875% 22,191 22, /Jan/ , , MANULIFE GLOBAL FUND

196 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Denmark 1,595,000 Realkredit Danmark A/S 1.000% 1/Apr/ , , , , Germany 300,000 Kreditanstalt fuer Wiederaufbau 6.000% 344, , /Aug/ ,000 Landeskreditbank Baden-Wuerttemberg 69,854 71, Foerderbank 3.875% 29/May/ , , Ireland 115,000 Shire Acquisitions Investments Ireland 114, , Limited 3.200% 23/Sep/ , , Luxembourg 140,000 Actavis Funding SCS 3.450% 15/Mar/ , , ,000 Actavis Funding SCS 3.800% 15/Mar/ , , , , Mexico 1,690,000 America Movil SAB de CV 7.125% 111,360 90, /Dec/ ,000 Cemex SAB de CV 6.125% 5/May/ , , ,000 Mexico City Airport Trust 4.250% 221, , /Oct/ ,000 Mexico City Airport Trust 5.500% 116, , /Oct/ ,000 Petroleos Mexicanos 6.000% 5/Mar/ ,273 64, ,885 Petroleos Mexicanos 7.650% 24/Nov/ , , , , Netherlands 50,000 E.ON International Finance BV 6.000% 97,342 72, /Oct/ ,342 72, Singapore 250,000 CapitaMalls Asia Treasury Limited 3.950% 183, , /Aug/ ,000 Temasek Financial 3.265% 19/Feb/ , , , , United Kingdom 45,000 Astrazeneca plc 1.750% 16/Nov/ ,603 45, ,603 45, MANULIFE GLOBAL FUND 194

197 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States 160,000 3M Company 3.000% 7/Aug/ , , ,000 Abbott Laboratories 2.950% 15/Mar/ , , ,000 AbbVie Inc % 14/May/ , , ,000 AbbVie Inc % 14/May/ , , ,000 American International Group Inc. FRN 397, , /May/ ,000 American Tower Corp % 15/Mar/ , , ,000 American Water Capital Corp % 185, , /Mar/ ,000 Anheuser-Busch InBev 1.250% 17/Jan/ ,922 99, ,000 Anheuser-Busch InBev Finance Inc % 146, , /Feb/ ,000 Anheuser-Busch InBev Finance Inc % 167, , /Feb/ ,000 Antero Resources Corp % 1/Jun/ , , ,000 Anthem Inc % 15/Aug/ ,396 66, ,000 Apple Inc % 13/May/ , , ,000 Aramark Services Inc % 15/Jan/ , , ,000 Bac Capital Trust XIV FRN 29/Sep/ , , ,000 Ball Corp % 15/Nov/ , , ,000 Ball Corp % 1/Jul/ , , ,000 Bankunited Inc % 17/Nov/ , , ,000 CA Inc % 15/Mar/ , , ,000 CCO Holdings LLC 5.750% 15/Jan/ , , ,000 Chubb INA Holdings Inc % 3/May/ , , ,000 Citigroup Inc. FRN 29/Dec/ , , ,000 Comcast Corp % 15/Jan/ ,886 89, ,000 Concho Resources Inc % 15/Jan/ ,000 97, ,000 Constellation Brands 3.750% 1/May/ , , ,000 Constellation Brands 4.250% 1/May/ , , ,000 Costco Wholesale Corp % 15/Dec/ ,952 99, ,000 Crown Americas LLC 4.500% 15/Jan/ , , ,000 Crown Cork & Seal Company 7.375% 130, , /Dec/ ,000 CVS Health Corp % 20/Jul/ , , ,000 Delta Air Lines Inc % 15/Mar/ , , ,000 Discover Financial Services 5.200% 86,713 86, /Apr/ ,000 Electronic Arts Inc % 1/Mar/ ,404 15, ,000 Eli Lilly & Company 2.750% 1/Jun/ , , ,000 Enterprise Products Operating LLC 3.350% 101, , /Mar/ ,000 Enterprise Products Operating LLC 5.200% 32,798 32, /Sep/ ,000 Exxon Mobil Corporation 2.709% 6/Mar/ , , ,000 First Niagara Financial Group Inc % 133, , /Dec/ ,000 Ford Motor Company 6.625% 1/Oct/ , , ,000 Ford Motor Company 6.625% 1/Oct/ , , MANULIFE GLOBAL FUND

198 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 130,000 General Electric Capital Corp % 109,230 96, /Jan/ ,000 General Electric Capital Corp % 90,505 68, /Sep/ ,000 General Electric Company FRN 29/Dec/ , , ,000 General Motors Financial Company Inc. 120, , % 25/Sep/ ,000 Goodyear Tire & Rubber Company 8.750% 48,825 53, /Aug/ ,000 Great Plains Energy 3.150% 1/Apr/ ,951 65, ,000 HCA Inc % 15/Mar/ , , ,000 HCA Inc % 15/Feb/ , , ,000 HCA Inc % 1/Oct/ ,296 37, ,000 Home Depot Inc % 1/Apr/ , , ,000 Host Hotels & Resorts LP 4.750% 160, , /Mar/ ,000 Humana Inc % 15/Mar/ ,895 88, ,000 IBM Corp % 12/Feb/ ,188 22, ,000 IBM Corp % 21/Dec/ , , ,000 JPMorgan Chase & Company 3.200% 156, , /Jun/ ,000 JPMorgan Chase & Company 3.300% 113, , /Apr/ ,000 Kraft Foods Group 6.125% 23/Aug/ , , ,000 Kraft Heinz Foods Company 3.950% 300, , /Jul/ ,000 Lowe s Companys Inc % 15/Apr/ , , ,000 Magellan Midstream Partners LP 5.000% 38,585 38, /Mar/ ,000 Merck & Company Inc % 10/Feb/ , , ,000 Mgic Investment Corp % 15/Aug/ , , ,000 Micron Technology Inc % 15/Sep/ , , ,000 Microsoft Corp % 12/Feb/ , , ,000 Microsoft Corp % 3/Nov/ ,977 92, ,000 Microsoft Corp % 6/Feb/ , , ,000 Molson Coors Brewing Company 3.000% 157, , /Jul/ ,000 Mplx LP 4.125% 1/Mar/ ,421 65, ,000 Mplx LP 5.500% 15/Feb/ , , ,000 Newfield Exploration Company 5.375% 51,861 51, /Jan/ ,000 Newfield Exploration Company 5.625% 152, , /Jul/ ,000 Outfront Media Cap LLC 5.625% 15/Feb/ , , ,000 Pfizer Inc % 15/Jun/ , , ,000 Philip Morris International Inc % 117, , /Aug/ ,000 Praxair Inc % 30/Jan/ ,266 20, ,000 Pvh Corp % 15/Dec/ , , ,000 Scripps Networks Interactive Inc % 109, , /Jun/ ,000 Spectrum Brands Inc % 15/Jul/ , , ,000 Suntrust Banks Inc. FRN 15/Jun/ ,000 91, MANULIFE GLOBAL FUND 196

199 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 90,000 Time Warner Inc % 15/Feb/ ,654 90, ,000 T-Mobile USA Inc % 15/Jan/ , , ,000 T-Mobile USA Inc % 15/Jan/ ,225 73, ,000 T-Mobile USA Inc % 15/Jan/ ,488 77, ,000 T-Mobile USA Inc % 1/Apr/ , , ,000 Transcontinental Gas Pipe Line Company LLC 142, , % 1/Feb/ ,000 Tribune Media Company 5.875% 15/Jul/ ,999 89, ,000 United Rentals North America Inc % 190, , /Jul/ ,000 United Rentals North America Inc % 90,525 92, /May/ ,000 UnitedHealth Group Inc % 15/Jul/ , , ,000 USB Capital IX FRN 29/Oct/ , , ,000 Verisk Analytics Inc % 15/Jun/ ,397 67, ,000 Wachovia Capital Trust III FRN 29/Aug/ , , ,000 Walgreens Boots Alliance Inc % 232, , /Nov/ ,000 Wells Fargo & Company FRN 27/Jul/ ,988 58, ,000 Wells Fargo & Company 3.250% 27/Apr/ ,078 61, ,000 Williams Companys Inc % 24/Jun/ ,700 61, ,000 Williams Partners LP 3.750% 15/Jun/ , , ,000 Williams Partners LP 4.875% 15/May/ , , ,966,255 14,343, Bonds Total 16,882,657 17,049, Bonds convertibles Netherlands 100,000 Bayer Capital Corp. BV 5.625% 22/Nov/ , , , , United States 5 Wells Fargo & Company 7.500% 31/Dec/2049 6,400 6, ,400 6, Bonds convertibles Total 113, , Equities Ireland 75 Allergan plc 1/Mar/ ,052 65, ,052 65, MANULIFE GLOBAL FUND

200 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States 3,125 Dominion Resources Inc. 15/Aug/ , , ,925 Hartford Financial Services Group Inc. 214, , /Apr/2042 1,901 Kinder Morgan Inc. 26/Oct/ ,193 83, M&T Bank Corp. 320, , ,755 Nextera Energy Inc. 1/Sep/ , , ,850 Nextera Energy Inc. 1/Sep/ , , ,135 Regions Financial Corp. 126, , Stanley Black Conv Prefered 15/May/ ,500 24, ,090 Synovus Financial Corp. 164, , ,425 Tyson Foods Inc. 15/Jul/ , , US Bancorp 122, , ,405 US Bancorp 131, , ,170 Wells Fargo & Company 128, , ,711 Wells Fargo & Company Preferred 180, , ,175 Zions Bancorporation 15/Sep/ , , ,341,343 2,543, Equities Total 2,402,395 2,608, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 29,089,597 28,544, Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Supranationals, Governments and Local Public Authorities, Debt Instruments Australia 140,000 Western Australian Treasury Corporation 103, , % 23/Jul/ , , Canada 245,000 Canada (Govt of) 1.250% 1/Mar/ , , ,000 Export Developement Canada 4.875% 182, , /Jan/ ,000 Ontario Canada (Province of) 1.900% 356, , /Sep/ , , Philippines 1,450,000 Philippine (Govt of) 3.500% 20/Mar/ ,162 28, ,160,000 Philippine (Govt of) 3.500% 21/Apr/ ,474 97, ,000 Philippine (Govt of) 4.625% 9/Sep/2040 7,663 7, ,186,416 Philippine (Govt of) 5.875% 16/Dec/ , , ,000 Philippine (Govt of) 6.500% 28/Apr/2021 2,462 2, ,000 Philippine (Govt of) 8.000% 19/Jul/ ,247 11, , , MANULIFE GLOBAL FUND 198

201 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Supranational 215,000 Asian Development Bank 3.250% 20/Jul/ , , ,000 International Finance Corp % 15/Aug/ , , ,000 International Finance Corp % 20/May/ , , , , Supranationals, Governments and Local Public Authorities, Debt Instruments Total 1,561,354 1,523, Mortgage and Asset Backed Securities United States 125,000 American Express Credit Account Master 124, , Trust 1.164% 15/Nov/ ,703 Bear Stearns Alt-A Trust FRN 25/Aug/ ,850 35, ,063 Bear Stearns Alt-A Trust FRN 25/Sep/ ,148 55, ,228 Bear Stearns Alt-A Trust FRN 25/Sep/ ,963 15, ,986 Bear Stearns Alt-A Trust FRN 25/Jan/ ,924 19, ,643 CAS FRN 25/Apr/ ,643 91, ,000 Chase Issuance Trust 1.370% 15/Jun/ , , ,000 Citibank Credit Card Issuance Trust 1.920% 209, , /Apr/ ,980 Connecticut Avenue Securities FRN 44,029 44, /May/ ,904 Connecticut Avenue Securities FRN 83,904 84, /Jan/ ,511 Connecticut Avenue Securities FRN 16,511 16, /Apr/ ,230 Connecticut Avenue Securities FRN 11,230 11, /Apr/ ,000 Dcent 1.390% 15/Mar/ ,266 59, ,000 Dcent 1.670% 18/Jan/ , , ,475 EMLT FRN 25/Apr/ ,872 75, ,199 Fannie Mae 4.500% 25/Nov/ ,220 10, ,219 Fannie Mae Interest Strip 4.000% 84,703 9, /Oct/ ,106 Fannie Mae Interest Strip 4.000% 48,232 6, /Nov/ ,649 Fannie Mae Interest Strip 4.000% 107,608 15, /Jan/ ,160 Fannie Mae Interest Strip 4.500% 151,920 22, /Mar/ ,926 Fannie Mae Interest Strip 5.000% 48,391 10, /Mar/ ,703 Fannie Mae Interest Strip 5.000% 87,223 18, /Mar/ ,002 Fannie Mae Remics 3.500% 25/May/ , , ,310 Freddie Mac Structured Agency Credit Risk 52,310 52, Debt Notes FRN 25/Oct/ ,306 Gsaa FRN 25/Oct/ , , ,210 GSR Mortgage Loan Trust FRN 25/May/ ,837 64, ,000 Home Mortgage Alliance Corporation FRN 100,313 99, /Jan/2035 4,999 JPMorgan Chase Commercial Mortgage Securities Corp. FRN 15/Apr/2045 4,603 5, MANULIFE GLOBAL FUND

202 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 46,470 MLCC Mortgage Investors FRN 25/Oct/ ,959 45, ,366 Opteum Mortgage Acceptance Corp. FRN 38,606 41, /Nov/ ,000 Stacr FRN 25/Oct/ , , ,712 Washington Mutual FRN 25/Apr/ , , ,663 Washington Mutual FRN 25/Oct/ ,033 90, ,020,888 2,399, Mortgage and Asset Backed Securities Total 3,020,888 2,399, Bonds United States 105,000 Activision Blizzard 2.300% 15/Sep/ , , ,000 Aecom 5.125% 15/Mar/ , , ,000 Apple Inc. FRN 9/Feb/ , , ,000 Autodesk Inc % 15/Jun/ ,410 92, ,000 CCO Holdings LCC 5.125% 1/May/ , , ,000 Cintas Corp % 1/Apr/ , , ,000 Emera USA Finance LP 3.550% 15/Jun/ , , ,000 Expedia Inc % 15/Feb/ , , ,000 Fifth Third Bancorp FRN 31/Dec/ , , ,000 Fortis Inc % 4/Oct/ , , ,000 Lamar Media Corp % 1/May/ , , ,000 Lin Television 5.875% 15/Nov/ , , ,000 Lowe s Companys Inc. FRN 14/Sep/ ,532 55, ,000 Merrill Lynch & Company FRN 1/Dec/ ,850 95, ,000 QVC Inc % 15/Feb/ , , ,000 QVC Inc % 15/Mar/ ,869 81, ,000 Sirius XM Radio Inc. P.P. 144A 5.250% 65,695 67, /Aug/ ,000 Zebra Technologies Company 7.250% 380, , /Oct/ ,000 Zions Bancorporation FRN 29/Dec/ , , ,929,249 2,987, Bonds Total 2,929,249 2,987, Bonds convertibles United States 90,000 Anthem Inc % 15/Oct/ , , , , Bonds convertibles Total 128, , MANULIFE GLOBAL FUND 200

203 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Equities United States 1,260 AMG Capital Trust II 15/Oct/ ,379 75, ,379 75, Equities Total 71,379 75, Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities 7,711,400 7,216, Other transferable securities and money market instruments (2) Mortgage and Asset Backed Securities United States 42,551 Adjustable Rate Mortgage Trust FRN 39,029 42, /Apr/ ,000 Americold LLC Trust FRN 14/Jan/ , , ,000 AOA FRN 13/Dec/ ,733 55, ,000 Applebees Funding LLC 4.277% 5/Sep/ , , ,975 Bear Stearns Adjustable Rate Mortgage Trust 66,305 65, FRN 25/Aug/ ,000 Bway FRN 10/Mar/ ,603 39, ,000 BXP 3.379% 13/Jun/ , , ,145 Chase FRN 25/Feb/ ,133 20, ,000 CLNS Trust FRN 11/Jun/ ,000 55, ,000 Cold FRN 15/Apr/ ,000 75, ,250 Commercial Mortgage Trust FRN 10/Jul/ ,755 85, ,000 Gahr Commercial Mortgage Trust 3.495% 146, , /Dec/ ,474 GSR Mortgage Loan Trust FRN 25/Sep/ ,223 55, ,885 Harborview Mortgage Loan Trust FRN 144,773 50, /May/ ,328 Harborview Mortgage Loan Trust FRN 60,003 63, /Jun/ ,627 Harborview Mortgage Loan Trust FRN 39,350 41, /Jun/ ,319 Harborview Mortgage Loan Trust FRN 45,866 51, /Jun/ ,702 Harborview Mortgage Loan Trust FRN 67,864 70, /Nov/ ,200 Hardees Funding LLC Carls Jr Funding LLC 319, , % 20/Mar/ ,984 Home Equity Asset Trust 2.716% 25/ 33,825 35, Jun/ ,669 Indymac Index Mortgage Loan Trust FRN 45,993 31, /Oct/ ,419 Indymac Index Mortgage Loan Trust FRN 48,606 52, /Oct/ ,000 JPMorgan Chase Commercial Mortgage Securities Corp. FRN 15/Jul/ , , MANULIFE GLOBAL FUND

204 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 45,460 Merrill Lynch Mortgage Investors Inc. FRN 45,835 46, /Feb/ ,071 MLCC Mortgage Investors FRN 25/Dec/ ,681 27, ,808 MLCC Mortgage Investors FRN 25/Oct/ ,285 34, ,000 Morgan Stanley Capital Barclays Bank Trust 115, , FRN 13/Sep/ ,800 Morgan Stanley Mortgage Loan Trust FRN 23,932 25, /Oct/ ,621 Sonic Capital LLC 4.472% 20/May/ ,621 64, ,214 Structured Asset Securities Corp. FRN 44,342 44, /Dec/ ,000 Verizon Owner Trust 1.420% 20/Jan/ ,096 99, ,439,300 2,361, Mortgage and Asset Backed Securities Total 2,439,300 2,361, Bonds Canada 44,000 Burger King 6.000% 1/Apr/ ,568 45, ,568 45, Singapore 250,000 Hongkong Land Treasury Services Singapore 181, , Pte Limited 3.860% 29/Dec/ , , United States 105,000 Activision Blizzard Inc. P.P. 144A 6.125% 114, , /Sep/ ,000 Aramark Services Inc % 1/Apr/ , , ,000 Bae Systems Holdings Inc % 135, , /Dec/ ,000 CIT Group Inc % 15/Feb/ , , ,000 First Data Corp. P.P. 144A 5.375% 145, , /Aug/ ,000 Forest Laboratories Inc. P.P. 144A 5.000% 216, , /Dec/ ,000 Gartner Inc % 1/Apr/ , , ,000 Post Holdings Inc % 1/Mar/ , , ,000 Sealed Air Corp. P.P. 144A 4.875% 170, , /Dec/ ,000 Sealed Air Corp. P.P. 144A 6.500% 157, , /Dec/ ,000 Stone + Webster 0.000% 1/Jul/2017 a ,000 Stone Company 0.000% 31/Dec/2049 a ,000 Time Inc % 15/Apr/ ,025 10, ,456,632 1,496, Bonds Total 1,683,526 1,726, MANULIFE GLOBAL FUND 202

205 STRATEGIC INCOME FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Bonds convertibles United States 40,000 Liberty Expedia 5.157% 30/Jun/ ,138 42, ,138 42, Bonds convertibles Total 40,138 42, Equities United States 2,048 Vertis Holdings Inc. a 59, , Equities Total 59, Total Other transferable securities and money market instruments (2) 4,222,882 4,130, Portfolio of Investments 41,023,879 39,891, Other Net Assets 1,965, Net Assets 41,856, a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. 203 MANULIFE GLOBAL FUND

206 STRATEGIC INCOME FUND Investment Objective: The sub-fund seeks a high level of current income. In pursuing this goal, the subfund invests primarily in the following types of securities: (i) foreign government and corporate debt securities from developed and emerging markets (ii) U.S. government and agency securities (iii) U.S. high yield bonds The sub-fund may also invest in preferred stock and other types of debt securities. Although the sub-fund may invest up to 10% of its total assets in securities rated in default by Standard & Poor s or Moody s rating agencies (the expression in default in this context refers to securities that have missed one or more scheduled payments of interest or principal or have a rating of D by the rating agencies), it generally intends to keep its average credit quality in the investment grade range (AAA to BBB). There is no limit on the sub-fund s average maturity. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Strategic Income Fund Class AA +1.81% Strategic Income Fund Class I % Strategic Income Fund Class S Hedged -1.53% Barclays Capital U.S. Aggregate Bond Index -0.31% PORTFOLIO REVIEW The sub-fund s sector allocation was the largest contributor to its performance during the period, primarily due to an overweight exposure to investment-grade and high-yield corporate bonds and convertible bonds, and an underweight exposure to US Treasury bills. Currency management also contributed to performance, primarily owing to an overweight exposure to the Mexican peso. Duration management was relatively neutral. The sub-fund s security selection within the corporate sector detracted from its performance. MARKET REVIEW There was no shortage of central bank, economic, political and industry-specific news over the past year, which kept markets on edge. The general dovish tone from most developed central banks helped risk assets outperform. In November, after an upset victory by Donald Trump in the US presidential election, the market reaction felt very similar to the reaction after Brexit, with expectations for elevated short-term volatility and uncertainty as it relates to longer-term market implications. Risk assets gained, however, due to potential pro-growth policies from the new administration. Eurozone politics and European Central Bank (ECB) policy change were at the forefront as well. With growth continuing to improve, on 14 December, the Fed increased the federal funds rate (as widely anticipated) by 0.25%. However, comments from Chair Janet Yellen and an upward revision in the forward rate projections to three expected increases in 2017 (from two previously), fuelled a market perception that the Fed was more hawkish than expected. Later in the period, House Republicans could not round up enough votes to repeal and replace the Affordable Care Act, raising questions about their ability to tackle other tough issues, such as tax reform, and the market took a breather as a result. Further clouding the economic environment was the UK hitting its target of triggering Article 50 by the end of March. Late in the period, several central bankers comments during the month suggested a shift to a more hawkish sentiment on a global basis. Despite this backdrop, risk-based assets performed well during the period and global interest rates generally moved higher. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 204

207 STRATEGIC INCOME FUND OUTLOOK The sub-fund s portfolio manager s (PM) view is that volatility will continue in 2017 across all asset classes (fixed income, equities, commodities, and foreign exchange) driven by changing central bank policies, country-specific events (like Brexit negotiations and elections in Europe), as well as the Trump administration s ability to implement its proposed policies. As a result, the PM continues to maintain a relatively defensive posture in the portfolio from a credit and quality perspective, while also focusing on managing portfolio liquidity to minimise the impact of volatility in the short term. The PM continues to pay special attention to global economic data releases and the subsequent policy response from central banks worldwide. The PM has become more constructive on several global macroeconomic factors, and believe there is more upside surprise risk to the global economy than downside. The PM believes this environment is positive for global fixed-income markets. However, given that valuations are at fair value in most fixed-income sectors, the PM will look to increase risk within the portfolio on a selective basis. The PM anticipates that the US economy will continue to grow at a moderate pace in the year ahead, outperforming most of its developed-market peers. While relative yield levels across developed markets may keep a ceiling on long-term US rates in the near term, the PM believes the Trump administration s policies could potentially extend the economic cycle and lead to higher rates over the long term. The PM believes the risk of a higher global interest rate environment has increased, and, as a result, sub-fund is maintaining a bias to shorten duration and will tactically adjust interest rate exposures around specific economic data and central bank comments and policies. The PM continues to embrace and add to credit risk in the portfolio selectively, recognising that sector, quality, and issuer selection are more important factors today than they were earlier in the credit cycle. The PM also holds core positions in global governments, and commercial mortgage-backed and assetbacked securities, which provide diversification away from pure corporate risk. The PM is targeting specific countries for adding to the sub-fund s emerging markets position, with a view that there will likely be wider performance deviations across countries, qualities, and currencies moving forward. With respect to currencies, as global central bank policies potentially become more in sync, the PM believes the stronger US dollar trend may peak. As a result, the PM will look for opportunities to strategically un-hedge some of the sub-fund s foreign bonds. The PM will continue to add risk in both fixed-income and currency markets, albeit on the margin, in the coming weeks and months, but will be selective and patient in doing so. 205 MANULIFE GLOBAL FUND

208 TAIWAN EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Cayman Islands 98,000 Airtac International Group 746,125 1,158, ,000 Bizlink Holding Inc. 714, , ,000 Chailease Holding Company Limited 306, , ,600 Gourmet Master Company Limited 442, , ,000 Grand Ocean Retail Group Limited 339, , ,000 Parade Technologies Limited 308, , ,856,931 3,483, Taiwan 248,000 Accton Technology Corp. 530, , ,197 Advantech Company Limited 589, , ,000 Asmedia Technology Inc. 381, , ,000 Cathay Financial Holding Company Limited 1,155,966 1,554, ,000 Chilisin Electronics Corp. 342, , ,240 China Life Insurance Company Limited 696, , ,000 Compeq Manufacturing Company 253, , ,062 CTBC Financial Holding Company Limited 459, , ,000 Ctci Corp. 349, , ,000 Delta Electronics Inc. 935, , ,000 Dr Wu Skincare Company Limited 302, , ,000 Eclat Textile Company Limited 288, , ,898 Ennoconn Corp. 398, , ,000 Formosa Chemicals & Fibre Corp. 637, , ,348 Formosa Plastics Corp. 799, , ,000 Foxsemicon Integrated Technology Inc. 432, , ,000 Hiwin Technologies Corp. 290, , ,000 Hon Hai Precision Industry Company Limited 1,392,906 1,896, ,511 Hota Industrial Manufacturing 615, , Company Limited 81,000 Kinik Company 209, , ,000 LandMark Optoelectronics Corp 310, , ,000 Largan Precision Company Limited 895,772 1,753, ,000 Mega Financial Holding Company Limited 697, , ,000 Powertech Technology Inc. 393, , ,610 Poya Company Limited 530, , MANULIFE GLOBAL FUND 206

209 TAIWAN EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Taiwan (continued) 41,000 Quang Viet Enterprise Company Limited 212, , ,000 Rafael Microelectronics Inc. 208, , ,919 Sporton International Inc. 274, , ,000 St Shine Optical Company Limited 289, , ,334 Taiwan Semiconductor Manufacturing 1,206,850 2,839, Company Limited 184,340 Tci Company Limited 662,021 1,172, ,000 Tong Hsing Electronic Industries Limited 460, , ,000 TTY Biopharm Company Limited 868, , ,075 Walsin Technology Corp. 346,653 1,003, ,000 Winbond Electronics Corp. 368, , ,000 Wowprime Corp. 388, , ,000 Yageo Corp. 551, , ,726,842 26,932, Equities Total 22,583,773 30,415, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 22,583,773 30,415, Portfolio of Investments 22,583,773 30,415, Other Net Assets 40, Net Assets 30,456, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. 207 MANULIFE GLOBAL FUND

210 TAIWAN EQUITY FUND Investment Objective: The sub-fund aims to provide long-term capital growth for those who hold a long-term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long-term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and equities of companies that are listed on any stock exchange in Taiwan; or companies covering the different sectors of the economy in Taiwan and which are listed on any stock exchange; or companies that derive a significant portion of their earnings from Taiwan. The sub-fund may also invest in convertible bonds and depositary receipts issued by such companies, debt obligations of the Government of Taiwan, collective investment schemes and closed-end funds. The remaining assets of the sub-fund may include bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Taiwan Equity Fund Class AA % Taiwan TAIEX Index % PORTFOLIO REVIEW Stock selection in consumer discretionary and information technology, and the overweight in healthcare negatively impacted performance. On the other hand, stock selection in financials and consumer staples, and the underweight in telecommunications services positively impacted performance. Some of the sub-fund s holdings in the information technology sector were among the largest contributors to performance. The top contributor was a Taiwanese passive component manufacturer as pricing continues to improve for one of its key products, multilayer ceramic capacitors (MLCC), given a supply shortage. A camera lens maker contributed positively to performance due to better-than-expected penetration and sales of its dual-lens camera. The main detractor was an automotive components manufacturer holding that specialises in sensors and electronic car parts after it reported weak October sales. The sub-fund no longer owns this company. Another detractor was one of the largest biotechnology conglomerates in the country that specialises in oncology drugs its September sales were affected by a drop in shipments to some clients in the US and Europe. Its first quarter earnings were also weighed down by higher research and development expenses and foreign exchange loss. However, the strong fundamentals of the company remain unchanged due to stable cash flows, large export potential, and high barriers to entry of its liposome products. MARKET REVIEW The Taiwan equity market performed strongly over the period despite the sell-down post the US elections due to the strong performance of the technology sector and robust foreign inflows. First quarter GDP growth registered at 2.6% year-on-year due to resilient domestic consumption and robust exports. Exports in May posted its eighth consecutive month of growth on the back of solid demand for machinery, integrated circuits, and base metals. The central bank kept its policy rates unchanged for four consecutive quarterly meetings as the domestic economy steadily gains momentum and inflation remains subdued. The government is considering a tax reform that may increase corporate tax and reduce personal income tax. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 208

211 TAIWAN EQUITY FUND OUTLOOK The government revised up 2017 GDP growth by 5 basis points (bps) to 1.92% year-on-year due to better-than-expected export orders driven by the technology and automation segments. Exports for the first five months of the year were up 12.5% year-on-year, and grew for eight consecutive months in May. With Taiwan being an export-oriented and tech-heavy economy, the recent reversal of the local currency s strength against the US dollar will benefit corporate earnings. The sub-fund s portfolio manager (PM) expects the US dollar to strengthen in the following quarters, and the upcoming iphone 8 products to support good export numbers ahead and GDP growth. That said, the technology industry, especially parts of it linked to the iphone 8 supply chain, will be the key driver of exports and the economy by the latter half of the year. For 2017, as the global economy sees a slight recovery, the PM expects export-oriented countries such as Taiwan to benefit. The PM believes the second half of the year will be better due to several catalysts. First, a super product cycle should stem from the production of the Organic Light-Emitting Diode (OLED)-based iphone 8, with the launch date in September. Second, the excess supply issue in China s smartphone market should abate by July. Third, the demand for automation remains strong. Lastly, Tesla s Model 3 will be in maximum production by the third quarter. The PM started to add more weighting on non-tech sectors that are exposed to China and Tesla consumption. The PM also added some positions in a coffee chain store, industrial computer servers, and optical fibre as these look likely to have more upside for the rest of the year. The PM believes that market risk is rising gradually, but remains manageable. 209 MANULIFE GLOBAL FUND

212 TURKEY EQUITY FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Turkey 952,669 Akbank TAS 2,777,690 2,664, ,899 Alkim Alkali Kimya AS 321, , ,190 Arcelik AS 1,086,206 1,382, ,044 Aselsan Elektronik Sanayi Ve Ticaret AS 200, , ,521 Bim Birlesik Magazalar AS 953,272 1,084, ,332 Coca-Cola Icecek AS 1,138, , ,676 Emlak Konut Gayrimenkul Yatirim Ortakligi AS 954, , ,343 Eregli Demir Ve Celik Fabrikalari Tas 1,357,558 1,779, ,827 Global Yatirim Holding AS 521, , ,896 Haci Omer Sabanci Holding AS 1,541,385 1,179, ,640,527 Is Gayrimenkul Yatirim Ortakligi AS 769, , ,554 Koc Holding AS 1,416,782 1,532, ,724 Mavi Jeans B 1,085,885 1,067, ,946 Migros Ticaret AS 957,451 1,312, ,434,514 Petkim Petrokimya Holding 2,008,519 2,467, ,413 Tav Havalimanlari Holding AS 1,479,136 1,464, ,108 Tofas Turk Otomobil Fabrik 1,175,407 1,545, ,758 Tupras-Turkiye Petrol Rafinerileri 2,002,091 2,397, ,939 Turk Traktor ve Ziraat Makineleri AS 1,042, , ,204,927 Turkiye Garanti Bankasi AS 4,032,462 3,363, ,332,391 Turkiye Is Bankasi 2,584,723 2,806, ,013,891 Turkiye Sinai Kalkinma Bankasi AS 1,364,526 1,211, ,330 Turkiye Vakiflar Bankasi Tao 1,522,148 1,593, ,440 Yapi ve Kredi Bankasi AS 1,829,375 1,274, ,292 Yatas Yatak ve Yorgan Sanayi Ve Ticaret AS 267, , ,887 Yazicilar Holding AS 260, , ,652,081 35,691, Equities Total 34,652,081 35,691, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 34,652,081 35,691, Portfolio of Investments 34,652,081 35,691, Other Net Liabilities (1,135) 0.00 Net Assets 35,689, (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 210

213 TURKEY EQUITY FUND Investment Objective: The sub-fund aims to provide long term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and securities of companies located in Turkey and other companies located outside Turkey whose income is predominantly derived from Turkey, all of which in accordance with the regulations, will be listed or traded on Regulated Markets as referred to in the Prospectus. The remaining assets of the subfund may include bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* Turkey Equity Fund Class AA +9.86% MSCI Turkey 10/40 Index +8.44% PORTFOLIO REVIEW The sub-fund generated a positive return over the 12-month period ending 30 June 2017, slightly ahead of the underlying market. This outperformance was entirely due to its stock selection. Over the period under review, the sub fund s exposure to the financials and telecommunication services sectors was reduced in favour of a significantly higher exposure to materials. Currently, the sub-fund s largest overweight exposure is in the financials and consumer discretionary sectors, reflecting the opportunities available to companies operating in the domestic economy as activity here continues to improve as the tumultuous events of the last 12 months fade into memory. The sub-fund now has no exposure to the telecommunication services sector. MARKET REVIEW Share prices on the Borsa Istanbul finished the 12-month period ending 30 June 2017 with a net gain of around 8% in US dollar terms. However, this relatively subdued number masks a substantial early fall, which saw share prices down around 25% by the end of the year, followed by an even more marked rise of close to 50% over the remainder of the period. Two significant events were responsible for this volatility: first, an attempted coup by a section of the military that initially only narrowly failed to overthrow President Erdogan but which was then brutally crushed and followed by a prolonged purge of those thought by the government to be in sympathy with the insurgents; and second, a constitutional referendum that saw the country voting to make the office of president an executive, rather than a largely ceremonial, one. Both developments however served to underline the extent to which Recep Tayyip Erdogan, the president of Turkey, has centralised power around himself in an increasingly autocratic fashion. Indeed, Turkey has been under a, repeatedly renewed, state of emergency ever since the coup and this placed ultimate power in Erdogan s hands even before the constitutional referendum was held. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 211 MANULIFE GLOBAL FUND

214 TURKEY EQUITY FUND July s coup came as something of a shock and financial markets reacted negatively to both the coup itself and the subsequent crackdown; although by no means unusual in an historical context, markets had supposed that Turkey had outgrown its past and could now be considered alongside more normal western democracies. This view was however superseded by the realization that with President Erdogan now in firm control, and with no elections on the horizon, political uncertainty had all but disappeared and that the government could now get on with the job of running the country and promoting economic growth. The economy itself suffered in the immediate aftermath of the coup but has since recovered, with GDP growing by 1.4% over the first quarter of 2017 to stand 4.7% higher than a year earlier. In part this reflected a near 20% fall in the value of the Turkish lira, which served to boost exports. It also reflected a continuing rapprochement with Russia, which lifted its ban on travel to Turkey during the period under review. Inflation rose to around 12% in the wake of the lira s fall but has since fallen back a little with the central bank, whose independence continues to be the subject of some speculation, tightening monetary policy somewhat with the most recent rate hike occurring in April. OUTLOOK Looking forward, as political newsflow diminishes in importance and as evidence of improving economic growth becomes ever more evident, the market can be expected to keep its focus on fundamentals. Fiscal measures taken earlier in the year look like they are paying dividends and should continue to support the outlook. With tight monetary policy in place supporting the currency, the global rate outlook supportive of emerging market assets, increasing consumer and business confidence post the election cycle, Turkish assets should continue to perform well. We expect such tailwinds to continue to support the Turkish market for the time being. As ever, the sub-fund s managers will be sticking to their bottomup approach and continuing to looking for the best opportunities across the entire market. MANULIFE GLOBAL FUND 212

215 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Supranationals, Governments and Local Public Authorities, Debt Instruments Argentina 85,000 Argentina (Govt of) 6.875% 26/Jan/ ,245 88, ,000 Argentina (Govt of) 7.500% 22/Apr/ , , ,204 Argentina (Govt of) 8.280% 31/Dec/ , , ,000 Buenos Aires (Provincia de) 7.875% 125, , /Jun/ , , United States 3,720,000 United States Treasury N/B 2.750% 3,525,231 3,681, /Nov/2042 5,792,000 United States Treasury N/B 3.000% 5,805,710 5,985, /Feb/2047 9,330,941 9,667, Supranationals, Governments and Local Public Authorities, Debt Instruments Total 9,899,627 10,305, Bonds Argentina 205,000 Ypf SA 8.500% 28/Jul/ , , , , Australia 255,000 Australia & New Zealand Banking Group 254, , Limited 2.125% 19/Aug/ , , Bermuda 135,000 Aircastle Limited 5.500% 15/Feb/ , , ,000 Aircastle Limited 6.250% 1/Dec/ , , ,000 Aircastle Limited 7.625% 15/Apr/ ,000 84, , , Canada 260,000 Cenovus Energy Inc % 15/Sep/ , , ,000 Enbridge Inc % 1/Dec/ , , ,000 Open Text Corp % 1/Jun/ ,000 80, , , Cayman Islands 55,000 Park Aerospace Holdings Limited 5.500% 55,000 57, /Feb/ ,000 Vale Overseas 6.250% 10/Aug/ , , , , MANULIFE GLOBAL FUND

216 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Finland 80,000 Nokia Oyj 4.375% 12/Jun/ ,673 81, ,673 81, France 150,000 AXA SA 8.600% 15/Dec/ , , ,000 Credit Agricole FRN 23/Mar/ , , ,000 Electricite de France FRN 29/Dec/ , , ,000 Societe Generale SA FRN 29/Sep/ , , ,000 Societe Generale SA FRN 29/Nov/ , , ,374 1,053, Ireland 230,000 Aercap Ireland Capital Limited 4.625% 244, , /Oct/ ,000 Aercap Ireland Capital Limited 5.000% 218, , /Oct/ ,000 Shire Acquisitions Investments Ireland 279, , Limited 1.900% 23/Sep/ ,000 Shire Acquisitions Investments Ireland 279, , Limited 3.200% 23/Sep/2026 1,021,735 1,015, Luxembourg 50,000 Actavis Funding SCS 3.800% 15/Mar/ ,572 51, ,000 Actavis Funding SCS 3.800% 15/Mar/ , , ,000 Millicom International Cellular SA 6.625% 219, , /Oct/ ,000 Telecom Italia Capital SA 7.200% 18/Jul/ ,800 46, ,000 Telecom Italia Capital SA 7.200% 18/Jul/ , , , , Marshall Islands 270,000 Teekay Offshore Partners LP 6.000% 198, , /Jul/ , , Mexico 200,000 Nemak SAB de CV 5.500% 28/Feb/ , , ,000 Petroleos Mexicanos 4.875% 24/Jan/ , , ,000 Petroleos Mexicanos 5.375% 13/Mar/ ,751 47, , , Netherlands 250,000 Lukoil International Finance BV 3.416% 250, , /Apr/ ,000 Myriad International Holdings 5.500% 244, , /Jul/ ,000 Petrobras Global Finance BV 5.625% 189, , /May/ ,000 Petrobras Global Finance BV 7.375% 140, , /Jan/ ,000 Petrobras Global Finance BV 7.375% 164, , /Jan/ ,000 Rabobank P.P. 144A FRN 30/Jun/ , , ,000 Shell International Finance BV 4.375% 328, , /May/2045 1,502,289 1,544, MANULIFE GLOBAL FUND 214

217 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Peru 129,506 Abengoa Transmision sur SA 6.875% 133, , /Apr/ , , Puerto Rico 150,000 Popular Inc % 1/Jul/ , , , , Sweden 290,000 Ericsson LM 4.125% 15/May/ , , , , United Kingdom 230,000 Barclays plc 4.375% 12/Jan/ , , ,088 British Airways 4.625% 20/Jun/ , , ,000 HBOS plc 6.750% 21/May/ , , ,000 HSBC Holdings plc FRN 29/Dec/ , , ,000 Lloyds Banking Group plc 4.650% 438, , /Mar/ ,000 Lloyds Banking Group plc FRN 30/Apr/ , , ,000 Royal Bank of Scotland Group plc 3.875% 208, , /Sep/ ,000 Santander UK Group 4.750% 15/Sep/ , , ,000 Vedanta Resources plc 6.375% 30/Jul/ , , ,084,028 2,160, United States 240,000 AbbVie Inc % 14/May/ , , ,000 Aercap Ireland Capital Limited FRN 193, , /Jun/ ,000 Air Lease Corp % 15/Jan/ , , ,000 Air Lease Corp % 1/Apr/ , , ,000 Alcoa Inc % 1/Oct/ , , ,000 Ally Financial Inc % 5/Nov/ , , ,000 Ally Financial Inc % 30/Sep/ , , ,000 American Airlines 3.650% 15/Feb/ , , ,000 American Honda Finance 1.700% 204, , /Feb/ ,000 American Tower Corp % 15/Feb/ , , ,000 American Tower Corp % 15/Jul/ , , ,000 American Tower Corp % 15/Mar/ , , ,000 AmeriGas Partners LP 5.500% 20/May/ , , ,000 Amgen Inc % 1/May/ , , ,000 Anheuser-Busch InBev Finance Inc % 492, , /Feb/ ,000 Arrow Electronics Inc % 12/Jan/ , , ,000 AT&T Inc % 15/May/ , , ,000 AT&T Inc % 1/Mar/ , , ,000 Bac Capital Trust XIV FRN 29/Sep/ , , ,000 Bank of America Corp % 21/Apr/ , , MANULIFE GLOBAL FUND

218 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 75,000 Bank of America Corp % 26/Aug/ ,945 77, ,000 Bank of America Corp % 26/Aug/ ,184 31, ,000 Bank of America Corp % 22/Oct/ , , ,000 Bank of America Corp % 3/Mar/ , , ,000 Bank of America Corp. FRN 29/Dec/ , , ,000 Bank of America Corp % 25/Apr/ , , ,000 Bank of America Corp % 25/Apr/ ,964 20, ,000 Bankunited Inc % 17/Nov/ , , ,000 Bear Stearns Companies Inc % 202, , /Feb/ ,000 Becton Dickinson & Company 2.133% 225, , /Jun/ ,000 Boardwalk Pipelines LP 4.450% 15/Jul/ ,744 76, ,000 Bunge Limited Finance Corp % 132, , /Jun/ ,000 CA Inc % 15/Aug/ , , ,000 CA Inc % 15/Mar/ , , ,000 Capital One Financial 2.450% 24/Apr/ , , ,000 Capital One Financial 3.750% 28/Jul/ , , ,000 Capital One Financial 4.200% 29/Oct/ , , ,000 Capital One NA 2.350% 17/Aug/ , , ,000 Cardinal Health Inc % 14/Jun/ , , ,000 CC Holdings GS V 3.849% 15/Apr/ , , ,000 Chemours Company 5.375% 15/May/ ,658 37, ,000 Chemours Company 6.625% 15/May/ , , ,000 Cimarex Energy Company 4.375% 1/Jun/ , , ,000 Citigroup Inc % 2/Aug/ , , ,000 Citigroup Inc % 9/Mar/ , , ,000 Citigroup Inc. FRN 29/Dec/ , , ,000 Citigroup Inc. FRN 29/Dec/ , , ,000 Cno Financial Group Inc % 240, , /May/ ,000 Columbia Pipeline Group Inc % 265, , /Jun/ ,000 Commercial Metals Company 7.350% 124, , /Aug/ ,000 Community Health Systems (CHS) 5.125% 147, , /Aug/ ,000 Community Health Systems Inc % 117, , /Nov/ ,000 Continental Resources Inc % 323, , /Sep/ ,000 Credit Acceptance Corp % 15/Feb/ , , ,000 CVS Health Corp % 1/Jun/ , , ,000 CVS Health Corp % 20/Jul/ , , ,000 Davita Healthcare Partners Inc % 1/May/ , , MANULIFE GLOBAL FUND 216

219 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 185,000 Dcp Midstream Operating LP 2.700% 173, , /Apr/ ,000 Delta Air Lines Inc % 15/Mar/ , , ,000 Discover Financial Services 3.950% 382, , /Nov/ ,000 Discover Financial Services 5.200% 48,599 48, /Apr/ ,000 Dominion Energy Step 2.579% 1/Jul/ , , ,000 Ebay Inc % 5/Jun/ , , ,000 Electronic Arts Inc % 1/Mar/ , , ,000 Enbridge Energy Partners 4.375% 213, , /Oct/ ,000 Energy Transfer Partners LP 4.200% 72,844 73, /Apr/ ,000 Energy Transfer Partners LP 5.150% 214, , /Mar/ ,000 Energy Transfer Partners LP 9.700% 104, , /Mar/ ,000 Engilty Corp % 1/Sep/ ,469 44, ,000 EnLink Midstream Partners LP 4.850% 177, , /Jul/ ,000 Enova International Inc % 1/Jun/ , , ,000 Equinix Inc % 15/May/ , , ,000 Firstenergy Corp % 15/Jul/ , , ,000 Flagstar Bancorp Inc % 15/Jul/ , , ,000 Ford Motor Company 4.750% 15/Jan/ , , ,000 Ford Motor Company 5.875% 2/Aug/ , , ,000 Ford Motor Credit Company 2.375% 145, , /Mar/ ,000 Ford Motor Credit Company 2.551% 90,000 90, /Oct/ ,000 Fresenius US Finance P.P. 144A 4.500% 100, , /Jan/ ,000 FS Investment Corp % 15/Jul/ , , ,000 FS Investment Corp % 15/Jan/ , , ,000 General Electric Company FRN 29/Dec/ , , ,000 General Motors Company 4.875% 2/Oct/ , , ,000 General Motors Company 6.250% 2/Oct/ , , ,000 General Motors Financial Company Inc. 276, , % 15/Jan/ ,000 General Motors Financial Company Inc. 243, , % 13/Jul/ ,000 Goldman Sachs Group Inc % 174, , /Apr/ ,000 Goldman Sachs Group Inc % 399, , /Dec/ ,000 Goldman Sachs Group Inc % 26/Jan/ , , MANULIFE GLOBAL FUND

220 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 140,000 Great Plains Energy 3.900% 1/Apr/ , , ,000 Gulfport Energy Corp % 15/Oct/ ,000 29, ,000 Hartford FRN 15/Jun/ , , ,000 HCA Inc % 15/Apr/ , , ,000 HCA Inc % 15/Apr/2025 5,189 5, ,000 HCA Inc % 15/Jun/ , , ,000 HCA Inc % 15/Feb/ , , ,000 Ingram Micro Inc % 15/Dec/ , , ,000 International Lease Finance Corp % 157, , /Apr/ ,000 Iron Mountain Inc % 15/Aug/ , , ,000 Iron Mountain Inc % 15/Aug/ , , ,000 Jabil Circuit 4.700% 15/Sep/ , , ,000 Jefferies Group Inc % 15/Jul/ , , ,000 Jefferies Group LLC 4.850% 15/Jan/ , , ,000 JPMorgan Chase & Company 3.200% 224, , /Jun/ ,000 JPMorgan Chase & Company 4.625% 71,193 70, /May/ ,000 JPMorgan Chase & Company 4.625% 268, , /May/ ,000 JPMorgan Chase & Company FRN 210, , /Dec/ ,000 JPMorgan Chase & Company FRN 249, , /Aug/ ,000 Kerr-Mcgee Corp % 1/Jul/ , , ,000 Keysight Technologies 4.600% 6/Apr/ , , ,000 Kinder Morgan Energy Partners LP 7.750% 170, , /Mar/ ,000 Kinder Morgan Inc % 1/Jun/ , , ,000 Kinder Morgan Inc % 1/Jun/ , , ,000 Kraft Heinz Foods Company 5.200% 223, , /Jul/ ,000 L Brands Inc % 1/Nov/ , , ,000 Lear Corp % 15/Jan/ , , ,000 Leucadia National Corp % 18/Oct/ , , ,000 LTD Brands Inc % 1/Apr/ , , ,000 Masco Corp % 1/Apr/ , , ,000 Masco Corp % 1/Apr/ , , ,000 Match Group Inc % 1/Jun/ , , ,000 Medtronic Inc % 15/Mar/ , , ,000 Medtronic Inc % 15/Mar/ ,824 16, ,000 MetLife Inc. FRN 15/Dec/ , , ,000 Mgic Investment Corp % 15/Aug/ ,546 56, ,000 Micron Technology Inc % 15/Sep/ , , ,000 Microsoft Corp % 3/Nov/ , , ,000 Molson Coors Brewing Company 1.450% 159, , /Jul/ ,000 Molson Coors Brewing Company 3.000% 279, , /Jul/ ,000 Morgan Stanley 2.450% 1/Feb/ , , ,000 Morgan Stanley 3.875% 27/Jan/ , , MANULIFE GLOBAL FUND 218

221 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 155,000 Morgan Stanley 5.500% 26/Jan/ , , ,000 Morgan Stanley 5.500% 26/Jan/ ,211 64, ,000 Morgan Stanley 7.300% 13/May/ ,441 32, ,000 Morgan Stanley 7.300% 13/May/ , , ,000 MPT Operating Partnership LP 6.375% 146, , /Feb/ ,000 Nationstar Mortgage LLC 6.500% 1/Jul/ , , ,000 Nationstar Mortgage LLC 7.875% 1/Oct/ , , ,000 Nationstar Mortgage LLC 9.625% 1/May/ , , ,000 NCR Corp % 15/Dec/ ,300 52, ,000 Newell Rubbermaid 2.150% 15/Oct/ , , ,000 Newfield Exploration Company 5.625% 76,393 76, /Jul/ ,000 Newfield Exploration Company 5.750% 63,675 63, /Jan/ ,000 Nextera Energy Capital 1.649% 1/Sep/ , , ,000 Nextera Energy Capital Holdings Inc % 180, , /Apr/ ,000 Nextera Energy Capital Holdings Inc % 264, , /May/ ,000 Nrg Energy Inc % 1/May/ , , ,000 NRG Energy Inc % 15/Jan/ , , ,000 NRG Yield Operating LLC 5.375% 307, , /Aug/ ,000 Occidental Petroleum Corp % 129, , /Apr/ ,000 Omega Healthcare Investors Inc % 138, , /Jan/ ,000 Omega Healthcare Investors Inc % 192, , /Apr/ ,000 Omega Healthcare Investors Inc % 109, , /Jan/ ,000 Omnicom Group Inc % 15/Apr/ , , ,000 Oneok Partners LP 5.000% 15/Sep/ ,584 97, ,000 Owens Corning 4.200% 15/Dec/ , , ,000 Prudential Financial Inc. FRN 15/Mar/ , , ,000 Prudential Financial Inc % 15/Sep/ , , ,000 Radian Group Inc % 15/Jun/ , , ,000 Radian Group Inc % 15/Mar/ , , ,000 Regency Energy Partners LP 5.000% 49,579 53, /Oct/ ,000 Regency Energy Partners LP 5.500% 316, , /Apr/ ,000 Regency Energy Partners LP 5.875% 44,290 49, /Mar/ ,000 Resolute Energy Corp % 1/May/ ,588 99, ,000 Revlon Consumer Products Corp % 155, , /Feb/ ,000 Revlon Consumer Products Corp % 134, , /Aug/ ,000 S&P Global Inc % 15/Jun/ , , MANULIFE GLOBAL FUND

222 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 130,000 S&P Global Inc % 15/Feb/ , , ,000 Sabine Pass Liquefaction LLC 5.000% 139, , /Mar/ ,000 Santander Holdings USA Inc % 314, , /May/ ,000 Select Medical Corp % 1/Jun/ , , ,000 Service Corp. International 5.375% 137, , /May/ ,000 Sherwin-Williams Company 2.250% 164, , /May/ ,000 Southern Power Company 1.950% 269, , /Dec/ ,000 Sovereign Capital Trust VI 7.908% 56,989 53, /Jun/ ,000 Sprint Capital Corp % 15/Nov/ , , ,000 Stifel Financial Corp % 18/Jul/ , , ,000 Stifel Financial Corp % 18/Jul/ ,114 51, ,000 Summit Midstream Holdings LLC 5.750% 140, , /Apr/ ,000 Sunoco Logistics Partners Operations LP 271, , % 15/Jul/ ,000 Sunocologistics Partner 4.400% 1/Apr/ , , ,000 Supervalu Inc % 15/Nov/ ,006 92, ,000 Synovus Financial Corp % 15/Feb/ , , ,000 Tesoro Logistics LP 5.250% 15/Jan/ ,113 84, ,000 Tesoro Logistics LP 6.125% 15/Oct/ , , ,000 Tesoro Logistics LP 6.375% 1/May/ , , ,000 Time Warner Cable Inc % 1/Apr/ ,497 66, ,000 Time Warner Cable Inc % 1/Apr/ , , ,000 Time Warner Inc % 15/Feb/ , , ,000 T-Mobile USA Inc % 15/Jan/ , , ,000 United Rentals North America Inc % 140, , /Jul/ ,000 United Rentals North America Inc % 24,973 26, /Jul/ ,000 United Rentals North America Inc % 100, , /Nov/ ,000 Ventas Realty 3.500% 1/Feb/ , , ,000 Ventas Realty LP 3.750% 1/May/ ,498 56, ,000 Vereit Operating Partnership LP 4.600% 169, , /Feb/ ,000 Verisign Inc % 1/Apr/ , , ,000 Verisk Analytics Inc % 15/Jun/ , , ,000 Verizon Communications Inc % 186, , /Nov/ ,000 Verizon Communications Inc % 15/Mar/ , , MANULIFE GLOBAL FUND 220

223 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 460,000 Verizon Communications Inc % 438, , /Aug/ ,000 Verizon Communications Inc % 148, , /Aug/ ,000 Vista Outdoor 5.875% 1/Oct/ , , ,000 Wells Fargo & Company 4.650% 4/Nov/ , , ,000 Wells Fargo & Company FRN 29/Dec/ , , ,000 Wells Fargo & Company FRN 29/Mar/ , , ,000 Welltower Inc % 15/Mar/ ,134 83, ,000 Williams Companies 5.750% 24/Jun/ , , ,000 Williams Companys Inc % 24/Jun/ , , ,000 Williams Partners LP 3.750% 15/Jun/ , , ,000 Williams Partners LP 4.875% 15/May/ , , ,000 Williams Partners LP 4.875% 15/Mar/ , , ,000 Zimmer Biomet Holdings 3.550% 1/Apr/ , , ,034,242 40,217, Bonds Total 47,987,844 49,526, Bonds convertibles United States 108 Wells Fargo & Company 7.500% 31/Dec/ , , , , Bonds convertibles Total 139, , Equities United States 5,608 Dominion Resources Inc. 15/Aug/ , , ,670 DTE Energy Company 1/Oct/ , , ,950 GMAC Capital Trust I 15/Feb/ , , ,375 Goldman Sachs Group Inc. 159, , ,412 Regions Financial Corp. 85,300 87, , , Equities Total 875, , Total Transferable securities and money market instruments admitted to an official exchange listing (1) 58,902,829 60,874, MANULIFE GLOBAL FUND

224 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Supranationals, Governments and Local Public Authorities, Debt Instruments United States 775,000 United States Treasury Inflation Indexed Bonds 0.375% 15/Jan/2027 1,605,000 United States Treasury Inflation Indexed N/B 0.377% 15/Jul/2025 3,595,000 United States Treasury N/B 1.625% 15/Mar/2020 2,548,000 United States Treasury N/B 2.375% 15/May/ , , ,556,349 1,646, ,606,283 3,608, ,562,045 2,569, ,493,007 8,598, Supranationals, Governments and Local Public Authorities, Debt Instruments Total 8,493,007 8,598, Mortgage and Asset Backed Securities United States 255,000 Ally Auto Receivables Trust 1.740% 254, , /Sep/ ,000 Allya 1.750% 15/May/ , , ,646 American Airlines Pass Through Trust 4.100% 126, , /Jan/ ,000 American Express Credit Account Master 539, , Trust 1.950% 15/Sep/ ,000 BA Credit Card Trust 1.950% 15/Aug/ , , ,000 BMW Vehicle Owner Trust 1.370% 219, , /Dec/ ,000 Cabela s Credit Card Master Note Trust FRN 479, , /Jun/ ,000 California Republic Auto Receivables Trust 374, , % 16/Sep/ ,000 California Republic Auto Receivables Trust 174, , % 15/Dec/ ,000 Capital One Multi-asset Execution Trust 454, , % 15/Apr/ ,000 CarMax Auto Owner Trust 1.680% 234, , /Sep/ ,000 CarMax Auto Owner Trust 1.800% 159, , /Mar/ ,000 CarMax Auto Owner Trust 1.880% 194, , /Jun/ ,000 CD FRN 11/Feb/ , , ,000 CHAIT 1.270% 15/Jul/ , , ,000 Chase Issuance Trust 1.370% 15/Jun/ , , MANULIFE GLOBAL FUND 222

225 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 585,000 Citibank Credit Card Issuance Trust 1.750% 584, , /Nov/ ,000 CNH Equipment Trust 1.630% 16/Aug/ , , ,000 CNH Equipment Trust 1.660% 16/Nov/ , , ,000 Comet 2.000% 17/Jan/ , , ,438,556 Commercial Mortgage Pass Through 639, , Certificate FRN 10/Jun/2046 2,923,829 Commercial Mortgage Pass Through 237, , Certificate FRN 10/Feb/2047 1,736,892 Commercial Mortgage Pass Through 123, , Certificate 2.219% 15/Oct/ ,000 Commercial Mortgage Pass Through 165, , Certificate FRN 10/Oct/ ,000 Commercial Mortgage Pass Through 155, , Certificate 4.934% 10/Feb/ ,000 Commercial Mortgage Pass Through 296, , Certificate FRN 10/Apr/ ,000 Commercial Mortgage Pass Through 496, , Certificate FRN 10/Sep/ ,000 Dbjpm FRN 10/Sep/ ,913 76, ,000 Dbjpm 4.174% 10/Jun/ , , ,000 Discover Card Execution Note Trust 1.640% 660, , /Jul/2021 2,394,794 Fannie Mae 3.500% 1/Apr/2045 2,526,133 2,475, ,916 Fannie Mae Pool 3.000% 1/Jul/ , , ,312,872 Fannie Mae Pool 3.000% 1/Oct/2042 1,320,462 1,321, ,359 Fannie Mae Pool 3.000% 1/Dec/ , , ,143 Fannie Mae Pool 3.000% 1/Mar/ , , ,943 Fannie Mae Pool 3.000% 1/May/ , , ,671 Fannie Mae Pool 3.500% 1/Feb/ ,168 58, ,730 Fannie Mae Pool 3.500% 1/Mar/ , , ,296,195 Fannie Mae Pool 3.500% 1/May/2042 1,360,194 1,342, ,517 Fannie Mae Pool 3.500% 1/Nov/ , , ,828 Fannie Mae Pool 3.500% 1/Apr/ , , ,811 Fannie Mae Pool 3.500% 1/Jul/2043 1,014,285 1,008, ,668 Fannie Mae Pool 4.000% 1/Dec/ ,806 72, ,416 Fannie Mae Pool 4.000% 1/Sep/ , , ,620 Fannie Mae Pool 4.000% 1/Sep/ , , ,343 Fannie Mae Pool 4.000% 1/Oct/ , , ,215 Fannie Mae Pool 4.000% 1/Oct/ , , ,029 Fannie Mae Pool 4.000% 1/Jan/ , , ,696 Fannie Mae Pool 4.000% 1/Mar/ , , ,385 Fannie Mae Pool 4.000% 1/Nov/ , , ,642,429 Fannie Mae Pool 4.000% 1/Oct/2046 1,771,257 1,730, ,214,477 Fannie Mae Pool 4.500% 1/May/2041 1,323,210 1,310, ,287 Fannie Mae Pool 4.500% 1/Jun/ ,259 1,012, ,961 Fannie Mae Pool 4.500% 1/Nov/ , , ,003,492 Fannie Mae Pool 4.500% 1/May/2042 1,096,080 1,088, ,877 Fannie Mae Pool 5.000% 1/Apr/ , , ,596 Fannie Mae Pool 5.500% 1/Feb/ , , ,233 Fannie Mae Pool 5.500% 1/Aug/ ,139 60, ,483 Fannie Mae Pool 6.000% 1/Aug/ , , ,430 Fannie Mae Pool 6.500% 1/Jan/ , , MANULIFE GLOBAL FUND

226 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 227,000 Ford Credit Auto Owner Trust 1.400% 226, , /Feb/ ,000 Ford Credit Auto Owner Trust 1.520% 129, , /Aug/ ,000 Ford Credit Auto Owner Trust 1.580% 204, , /Aug/ ,000 Ford Credit Auto Owner Trust 1.640% 210, , /Jun/ ,000 Fordo 1.870% 15/Sep/ ,988 67, ,850,402 Freddie Mac FRN 25/Jan/ , , ,443,834 Freddie Mac FRN 25/Jul/ , , ,402,488 Freddie Mac FRN 25/Dec/ ,966 69, ,665,988 Freddie Mac FRN 25/Jan/ ,072 84, ,220,649 Freddie Mac FRN 25/Nov/ ,287 35, ,949 Freddie Mac FRN 25/Jun/ ,499 24, ,551,683 Freddie Mac FRN 25/Mar/ ,385 32, ,299,710 Freddie Mac FRN 25/Jul/ , , ,836,745 Freddie Mac FRN 25/May/ ,065 49, ,420 Freddie Mac Gold Pool 3.000% 1/Mar/ , , ,206 Freddie Mac Gold Pool 3.500% 1/Apr/ , , ,902,099 Freddie Mac Gold Pool 3.500% 1/Oct/2046 2,017,711 1,970, ,212 Freddie Mac Gold Pool 4.000% 1/Nov/ , , ,380 Freddie Mac Gold Pool 5.000% 1/Mar/ , , ,687,730 Ginnie Mae FRN 16/Apr/ , , ,257,787 Ginnie Mae FRN 16/Sep/ , , ,345 Ginnie Mae FRN 16/May/ ,953 85, ,374 Ginnie Mae FRN 16/Jan/ ,759 43, ,213,372 Ginnie Mae FRN 16/Nov/ , , ,126,682 Ginnie Mae FRN 16/Sep/ , , ,879,964 Ginnie Mae FRN 16/Sep/ , , ,614 Ginnie Mae FRN 16/Sep/ ,200 73, ,370,801 Ginnie Mae FRN 16/Aug/ , , ,928 Ginnie Mae FRN 16/Dec/ ,918 80, ,000 GS Mortgage Securities Corp % 108, , /Mar/ ,000 GS Mortgage Securities Corp. FRN 87,548 87, /May/2050 3,838,547 GS Mortgage Securities Trust FRN 405, , /May/ ,000 Harot 1.720% 21/Jul/ , , ,000 Harot 1.870% 15/Sep/ ,994 75, ,000 Hart 1.760% 16/Aug/ , , ,000 Honda Auto Receivables Owner Trust 1.330% 489, , /Nov/ ,000 Honda Auto Receivables Owner Trust 1.360% 294, , /Jan/ ,000 Honda Auto Receivables Owner Trust 1.470% 289, , /Jun/ ,000 Honda Auto Receivables Owner Trust 1.560% 404, , /Oct/ ,000 Honda Auto Receivables Owner Trust 1.620% 15/Aug/ , , MANULIFE GLOBAL FUND 224

227 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 505,000 Huntington Auto Trust 1.930% 15/Apr/ , , ,000 Imsa FRN 25/Feb/ , , ,000 John Deere Owner Trust 1.500% 334, , /Dec/ ,000 John Deere Owner Trust 1.650% 160, , /May/ ,000 JPMBB Commercial Mortgage Securities 339, , Trust FRN 15/Apr/ ,000 JPMorgan Chase Commercial Mortgage 102, , Securities Corp. FRN 15/Aug/ ,000 MSBAM FRN 15/Jan/ , , ,000 Nissan Auto Receivables Owner Trust 1.540% 180, , /Oct/ ,000 Nissan Auto Receivables Owner Trust 1.740% 179, , /Aug/ ,000 Nissan Master Owner Trust Receivables 469, , % 15/Jan/ ,842 Opmac FRN 25/Jul/ , , ,000 Synchrony Credit Card Master Note Trust 269, , % 15/Mar/ ,000 TAOT 1.730% 16/Feb/ , , ,000 TAOT 1.760% 15/Jul/ , , ,000 Toyota Auto Receivables Owner Trust 1.320% 174, , /Nov/ ,000 Toyota Auto Receivables Owner Trust 1.520% 214, , /Aug/ ,000 Toyota Auto Receivables Owner Trust 1.740% 300, , /Sep/ ,000 Wells Fargo Commercial Mortgage Trust FRN 66,949 66, /Dec/ ,000 Wells Fargo Commercial Mortgage Trust 128, , % 15/Mar/ ,000 Wells Fargo Commercial Mortgage Trust FRN 190, , /Sep/ ,257 Wells Fargo Home Equity Trust FRN 697, , /Dec/ ,000 WFRBS Commercial Mortgage Trust FRN 84,995 90, /Aug/ ,000 WFRBS Commercial Mortgage Trust FRN 148, , /Sep/ ,000 World Omni Auto Receivables Trust 1.770% 414, , /Sep/ ,026,216 46,348, Mortgage and Asset Backed Securities Total 48,026,216 46,348, MANULIFE GLOBAL FUND

228 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Bonds Netherlands 175,000 Mylan NV 2.500% 7/Jun/ , , ,000 Mylan NV 3.950% 15/Jun/ , , , , United States 465,000 Activision Blizzard 3.400% 15/Sep/ , , ,000 Aecom 5.125% 15/Mar/ , , ,401 America West Airlines 8.057% 2/Jul/ ,436 34, ,177 American Airlines 3.700% 1/May/ , , ,000 American Airlines 4.000% 15/Feb/ ,000 81, ,100 American Airlines Pass Through Trust 4.950% 197, , /Jan/ ,000 American Honda Finance Corp % 304, , /Feb/ ,000 Amgen Inc % 10/May/ , , ,000 Antero Midstream Partners 5.375% 150, , /Sep/ ,000 Ares Capital Corporation 3.875% 15/Jan/ , , ,000 Autodesk Inc % 15/Jun/ , , ,000 Branch Banking & Trust Company 2.100% 399, , /Jan/ ,000 Brighthouse Financial Inc % 319, , /Jun/ ,000 Broadcom Corp % 15/Jan/ , , ,000 Broadcom Corp % 15/Jan/ , , ,000 CDW 5.000% 1/Sep/ ,000 26, ,000 Charter Communications Operating LLC 357, , % 23/Oct/ ,000 Cheniere Corp % 30/Jun/ ,550 76, ,000 Cheniere Corp % 31/Mar/ ,000 96, ,000 Clear Channel Worldwide Holdings Inc. 167, , % 15/Nov/ ,000 Commercial Metals Company 5.375% 44,000 44, /Jul/ ,794 Continental Airlines Inc % 19/Apr/ , , ,405 Continental Airlines Inc % 11/Apr/ ,405 69, ,052 Continental Airlines Inc % 2/Feb/ ,559 43, ,675 Continental Airlines Inc % 15/Sep/2017 3,561 3, ,722 Continental Airlines Inc % 2/Jan/2018 9,225 8, ,005 Continental Airlines Inc % 2/Apr/2018 2,105 2, ,813 Delta Air Lines Inc % 15/Apr/ ,680 78, ,765 Delta Air Lines Inc % 2/Jul/ ,541 47, ,526 Delta Air Lines Inc % 2/Jan/ , , ,000 Eldorado Resorts Inc % 1/Aug/ ,338 86, ,000 Emera USA Finance LP 3.550% 15/Jun/ , , ,000 Enbridge Energy Partners FRN 1/Oct/ , , ,000 Enterprise Products Operating LLC FRN 1/Aug/ , , MANULIFE GLOBAL FUND 226

229 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 380,000 Expedia Inc % 15/Feb/ , , ,000 Fifth Third Bancorp FRN 31/Dec/ , , ,000 Gci Inc % 15/Apr/ , , ,000 General Electric Capital Corp. FRN 66,140 77, /Aug/ ,000 GLP Capital LP 5.375% 15/Apr/ , , ,000 Hilton Grand Vacations Borrower LLC 6.125% 70,000 76, /Dec/ ,000 International Lease Finance Corp. P.P. 144A 92,873 95, % 1/Sep/ ,000 Kraft Heinz Foods Company 2.000% 206, , /Jul/ ,000 Liberty Mutual Group P.P. 144A 7.800% 267, , /Mar/ ,000 Lifepoint Health Inc % 1/May/ , , ,000 M&T Bank Corp. FRN 29/Dec/ , , ,000 Manufacturers & Traders Trust Company FRN 136, , /Dec/ ,000 Medco Health Solutions Inc % 100,373 88, /Mar/ ,000 Micron Technology Inc % 15/Feb/ , , ,000 Newstar Financial Inc % 1/May/ , , ,000 Newstar Financial Inc % 1/May/ ,734 56, ,390 Northwest Airlines 7.027% 1/Nov/ , , ,000 PNC Financial Services FRN 29/May/ , , ,000 PNC Financial Services FRN 31/Dec/ , , ,000 QVC Inc % 15/Mar/ , , ,000 QVC Inc % 2/Jul/ , , ,000 QVC Inc % 15/Aug/ , , ,000 Resolute Energy Corp % 1/May/ ,406 24, ,000 Sabine Pass Liquefaction 5.750% 104, , /May/ ,000 Sabine Pass Liquefaction LLC 4.200% 140, , /Mar/ ,000 Sirius XM Radio Inc. P.P. 144A 5.250% 128, , /Aug/ ,000 Southern California Edison Company FRN 81,441 89, /Aug/ ,000 State Street Corp. FRN 15/Jun/ , , ,000 Teachers Insurance & Annuity Association of 231, , America P.P. 144A 6.850% 16/Dec/ ,000 Tech Data Corp % 15/Feb/ , , ,000 United Airlines 3.450% 7/Jul/ , , ,567 United Airlines 3.750% 3/Sep/ , , ,356 United Airlines 4.625% 3/Sep/ , , ,348 US Airways Group Inc % 1/Oct/ , , ,581 US Airways Group Inc % 22/Apr/ ,512 85, ,000 US Bank Na/cincinnati Oh 2.000% 229, , /Jan/ ,000 US Concrete Inc % 1/Jun/ ,600 84, ,000 Verisign Inc % 15/Jul/ ,000 75, ,000 Voya Financial Inc. FRN 15/May/ , , MANULIFE GLOBAL FUND

230 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets 15, United States (continued) 15,919 Waterford Gaming P.P. 144A 8.625% 15/Sep/2049 a 175,000 Whole Foods Market Inc % 3/Dec/ , , ,000 Zebra Technologies Company 7.250% 153, , /Oct/ ,182,385 12,703, Bonds Total 12,610,228 13,138, Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities 69,129,451 68,085, Other transferable securities and money market instruments (2) Mortgage and Asset Backed Securities United States 335,000 Americold LLC Trust FRN 14/Jan/ , , ,000 Bbcms FRN 15/Feb/ , , ,000 CD FRN 10/Feb/ , , ,000 Coinstar Funding LLC 5.216% 25/Apr/ , , ,000 DPABS 4.118% 25/Jul/ , , ,000 IMIT 3.614% 15/Jun/ , , ,000 New Century Home Equity Loan Trust FRN 219, , /Mar/ ,096 Sonic Capital LLC 4.472% 20/May/ , , ,000 TMSQ 3.963% 10/Oct/ , , ,455 Tpmt A1 FRN 25/Oct/ , , ,000 Verizon Owner Trust 2.060% 20/Sep/ , , ,775 Wendys Funding LLC 3.371% 15/Jun/ , , ,001,868 3,031, Mortgage and Asset Backed Securities Total 3,001,868 3,031, Bonds Bermuda 115,000 Digicel Group Limited 8.250% 30/Sep/ , , ,000 Digicel Limited 6.750% 1/Mar/ , , ,000 IHS Markit Limited 4.750% 15/Feb/ ,000 64, ,000 IHS Markit Limited 5.000% 1/Nov/ ,545 91, , , MANULIFE GLOBAL FUND 228

231 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets Canada 180,000 Air Canada Pass Through Trust 6.625% 185, , /May/ ,000 Cascades Inc % 15/Jul/ , , ,000 Gateway Casinos & Entertainment Limited 90,000 94, % 1/Mar/ ,000 Lions Gate Entertainment Corp % 81,750 84, /Nov/ ,000 MDC Partners Inc % 1/May/ , , ,000 Norbord Inc % 15/Apr/ , , ,000 Nova Chemicals Corp % 1/May/ , , ,000 Valeant Pharmaceuticals International P.P. 159, , A 6.125% 15/Apr/2025 1,120,133 1,149, France 125,000 AXA SA FRN 14/Dec/ , , , , Germany 235,000 Commerzbank AG 8.125% 19/Sep/ , , , , Guernsey Channel Islands 91,121 Doric Nimrod Air Two Limited 6.125% 91,690 94, /Nov/ ,690 94, Netherlands 250,000 ING Bank NV 5.800% 25/Sep/ , , , , United Kingdom 68,334 British Airways 5.625% 20/Jun/ ,280 71, ,000 International Game Tech P.P. 144A 6.500% 130, , /Feb/ , , United States 150,000 Activision Blizzard Inc. P.P. 144A 6.125% 163, , /Sep/ ,000 Ahern Rentals Inc. P.P. 144A 7.375% 227, , /May/ ,653 American Airlines 7.000% 31/Jan/ , , ,000 ASP AMC Merger Sub 8.000% 15/May/ , , ,000 Boise Cascade Company 5.625% 1/Sep/ ,325 51, ,000 CCM Merger Inc % 15/Mar/ , , ,000 Cengage Learning Inc % 15/Jun/ , , ,000 Chester Downs & Marina LLC 9.250% 160, , /Feb/ ,000 Cincinnati Bell Inc % 15/Jul/ , , ,000 Covenant Surgical 8.750% 1/Aug/ ,163 64, ,000 Crown Castle Towers LLC 6.113% 174, , /Jan/ ,000 DCP Midstream LLC P.P. 144A FRN 220, , /May/ ,000 DCP Midstream LLC P.P. 144A 9.750% 15/Mar/ , , MANULIFE GLOBAL FUND

232 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 465,000 Diamond 1 Finance Corp % 465, , /Jun/ ,000 Diamond 1 Finance Corp % 50,000 55, /Jun/ ,000 Enersys P.P. 144A 5.000% 30/Apr/ ,146 51, ,000 Exela Intermediate % 15/Jul/ ,403 69, ,000 Florida East Coast Holdings Corp. P.P. 144A 135, , % 1/May/ ,000 Gartner Inc % 1/Apr/ ,000 39, ,000 Huntington Ingalls Industries 5.000% 40,000 43, /Nov/ ,000 Huntington Ingalls Industries Inc. P.P. 144A 196, , % 15/Dec/ ,000 J2 Cloud LLC 6.000% 15/Jul/ ,180 66, ,000 Jacobs Entertainment 7.875% 1/Feb/ ,220 71, ,000 Kronos Acquisition Holdings 9.000% 121, , /Aug/ ,000 Ladder Capital Finance Holdings 5.250% 53,000 54, /Mar/ ,000 Laureate Education Inc % 1/May/ ,000 97, ,000 LSC Communications 8.750% 15/Oct/ , , ,000 McGraw-Hill Global Education Holdings LLC 50,000 48, % 15/May/ ,000 Mednax Inc % 1/Dec/ ,000 41, ,000 Metlife Capital Trust IV P.P. 144A 7.875% 82,063 87, /Dec/ ,000 Metlife Inc % 8/Apr/ , , ,000 Midcontinent Communications 6.875% 90,000 97, /Aug/ ,000 Platform Specialty Products Corp. P.P. 144A 273, , % 1/Feb/ ,000 Post Holdings Inc % 1/Mar/ ,000 98, ,000 Prime Security Services Borrower LLC 90,000 98, % 15/May/ ,000 Quicken Loans Inc. P.P. 144A 5.750% 195, , /May/ ,000 Quintiles Transnational Corp. P.P. 144A 71,750 72, % 15/May/ ,000 Radiate Holdco LLC 6.625% 15/Feb/ , , ,000 Sinclair Television Group Inc. P.P. 144A 122, , % 1/Aug/ ,000 Sirius Xm Radio Inc % 1/Aug/ ,000 55, ,000 Sirius Xm Radio Inc % 1/Aug/ , , ,000 Sirius XM Radio Inc. P.P. 144A 5.375% 123, , /Apr/ ,000 Sirius XM Radio Inc % 15/Jul/ , , ,000 Spl Logistics Escrow LLC P.P. 144A 8.875% 109,485 85, /Aug/ ,000 Stearns Holdings Inc % 15/Aug/ ,788 87, ,000 Symantec Corp % 15/Apr/ ,000 58, MANULIFE GLOBAL FUND 230

233 U.S. BOND FUND Portfolio of Investments as at 30 June 2017 Quantity/ Par Value Description Cost USD Market Value USD % of Net Assets United States (continued) 70,000 Tallgrass Energy Partners 5.500% 70,075 71, /Sep/ ,000 Tempo Acquisition LLC 6.750% 1/Jun/ ,000 30, ,000 Tennessee Merger Sub Inc % 35,000 34, /Feb/ ,000 Tutor Perini Corp % 1/May/ ,000 47, ,000 Universal Health Services Inc % 131, , /Aug/ ,000 Universal Health Services Inc % 162, , /Jun/ ,000 Vector Group Limited 6.125% 1/Feb/ ,000 78, ,000 XPO Logistics Inc. P.P. 144A 6.500% 224, , /Jun/ ,000 Zayo Group LLC 5.750% 15/Jan/ ,680 70, ,574,116 6,690, Bonds Total 9,031,608 9,262, Bonds convertibles United States 135,000 NRG Yield Inc % 1/Jun/ , , , , Bonds convertibles Total 135, , Total Other transferable securities and money market instruments (2) 12,168,476 12,429, Portfolio of Investments 140,200, ,389, Other Net Assets 3,234, Net Assets 144,624, a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. 231 MANULIFE GLOBAL FUND

234 U.S. BOND FUND Investment Objective: The primary objective of this sub-fund is to maximize total returns from a combination of current income and capital appreciation. To pursue this objective, the sub-fund will normally invest its assets in U.S. dollars-denominated fixed-income securities with an intended average credit rating of A and above. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* U.S. Bond Fund Class AA +1.92% U.S. Bond Fund Class AA (HKD) +1.89% U.S. Bond Fund Class AA (HKD) Inc +1.90% U.S. Bond Fund Class AA Inc +1.91% U.S. Bond Fund Class I +2.12% U.S. Bond Fund Class I % Barclays Capital U.S. Aggregate Bond Index -0.31% PORTFOLIO REVIEW The sub-fund s performance for the period was driven primarily by sector allocation. A non-benchmark position in high-yield corporate bonds and an overweight position in investment-grade corporate securities aided performance. Underweight positions in residential mortgage-backed securities and US Treasury bonds, both of which declined for the period, also added value. Individual security selection also contributed meaningfully to relative performance. Leading contributors among the sub-fund s corporate bond holdings included an electric utility, a chemicals producer, and a calcine petroleum coke producer. Notable detractors included a technology products distributor, a cosmetics maker, and an energy producer. The sub-fund s duration (a measure of interest-rate sensitivity) was slightly shorter than that of the benchmark throughout the period, which meant that the sub-fund had less sensitivity to yield fluctuations than the benchmark did. This positioning helped overall performance as bond yields rose and bond prices declined. MARKET REVIEW The US bond market produced mixed results for the 12 months ended 30 June 2017, but declined slightly overall as bond yields rose across the board. The bulk of the bond market decline occurred in late 2016, when bond yields increased sharply in response to the surprising outcome of the US presidential election. Expectations that the new administration s fiscal policies would result in stronger economic growth and higher inflation pushed bond yields broadly higher. However, yields fell back somewhat in the first half of 2017 amid a lack of progress on the administration s pro-growth policy agenda. US economic growth slowed during the period. After growing at a 3.5% annual rate in the third quarter of 2016 (the fastest quarterly growth rate in more than two years), the US economy decelerated to a 2.1% annual growth rate in the fourth quarter of 2016 and 1.4% in the first quarter of Employment growth remained robust, but the unemployment rate dipped from 4.9% to 4.3% (its lowest level in a decade) and other segments of the economy showed signs of slowing. For example, manufacturing activity remained muted and consumer spending waned amid a decline in vehicle sales. On the inflation front, the year-over-year inflation rate (as measured by the consumer price index, or CPI) rose to a five-year high of 2.8% in early 2017, reflecting a rebound in energy prices, but trended back down to 1.9% as of 31 May 2017 (the most recent data available). Core CPI, which excludes food and energy prices, rose by 1.7% over the same one-year period. Despite weaker economic data and a lack of inflationary pressure, the Fed raised its short-term interest rate target three times during the period. All three rate hikes were well telegraphed by the Fed and lifted the federal funds rate target to a range of 1.00% to 1.25%. Late in the reporting period, the Fed also released a plan for unwinding its balance sheet of US Treasury and mortgage-backed securities, though the timing of the balance sheet reduction remains unclear. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 232

235 U.S. BOND FUND From a sector perspective, corporate bonds generated the best returns for the period, benefiting from improving corporate earnings and strong demand for yield in a low interest rate environment. Notably, high-yield corporate bonds posted double-digit returns for the period. On the downside, US Treasury bonds declined the most, reflecting the broad increase in bond yields. OUTLOOK After eight years of moderate but steady expansion and four Fed rate hikes in the past 18 months, the recent slowing in the US economy is not surprising at this stage of the economic cycle. With no policy initiatives apparently forthcoming from the federal government to stimulate economic activity, the Fed is facing the challenge of continuing to normalise interest rates in an environment of modest economic growth and low inflation. The sub-fund s portfolio manager intends to maintain the sub-fund s current positioning, with an emphasis on the credit-related sectors of the bond market. Healthy earnings and global demand for yield should continue to provide support for corporate bonds going forward. 233 MANULIFE GLOBAL FUND

236 U.S. SMALL CAP EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Equities Israel 7,196 Nice Systems Limited ADR 340, , , , United Kingdom 13,212 Luxfer Holdings plc ADR 213, , , , United States 10,645 ABM Industries Inc. 365, , ,724 Access National Corp. 207, , ,739 American Assets Trust Inc. 515, , ,594 American Woodmark Corp. 185, , ,141 AVX Corp. 412, , ,770 Banner Corp. 443, , ,117 Barracuda Networks 409, , ,277 Bio-Rad Laboratories Inc. A 622, , ,267 Brookline Bancorp Inc. 360, , ,721 Build-A-Bear Workshop Inc. 377, , ,841 Cadence Design Systems Inc. 203, , ,716 Central Garden & Pet Company 339, , ,702 Chuy s Holdings Inc. 153, , ,606 Cinemark Holdings Inc. 491, , ,663 Columbia Banking System Inc. 517, , ,251 Connectone Bancorp Inc. 666, , ,726 Cooper Companies Inc. 393, , ,365 Copart Inc. 278, , ,901 Del Frisco s Restaurant Group Inc. 204, , ,620 Deluxe Corp. 415, , ,360 Emcor Group Inc. 448, , ,410 Emergent Biosolutions Inc. 341, , ,743 Epr Properties 514, , ,570 Esterline Technologies Corp. 283, , ,804 Evercore Partners Inc. 191, , ,965 Finisar Corp. 351, , ,028 Five9 Inc. 157, , ,224 Globus Medical Inc. A 227, , ,199 Golub Capital Bdc Inc. 430, , ,712 Hain Celestial Group Inc. 269, , ,869 Halozyme Therapeutics Inc. 176, , ,705 Hb Fuller Company 374, , ,370 Hope Bancorp Inc. 530, , ,763 Integer Holdings Corp. 210, , ,325 Integra Lifesciences Holdings Corp. 233, , ,859 Integrated Device Technology Inc. 327, , ,827 Interface Inc. 691, , ,431 Lithia Motors Inc. 396, , MANULIFE GLOBAL FUND 234

237 U.S. SMALL CAP EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States (continued) 3,903 Logmein Inc. 222, , ,936 Malibu Boats Inc. A 227, , ,104 Merit Medical Systems Inc. 230, , ,875 Mimedx Group Inc. 195, , ,315 Mks Instruments Inc. 221, , ,813 Moelis & Company A 290, , ,369 Monotype Imaging Holdings Inc. 260, , ,095 Mueller Water Products Inc. A 447, , ,247 NVE Corp. 269, , ,398 On Semiconductor Corp. 282, , ,065 Park Sterling Corp. 368, , ,776 Patterson-Uti Energy Inc. 616, , ,238 Pennantpark 74,270 88, ,488 Portland General Electric Company 320, , ,870 Regal-Beloit Corp. 381, , ,114 Retail Opportunity Investments Company 450, , ,005 Seaspine Holdings Corp. 276, , ,935 Simpson Manufacturing Company Inc. 475, , ,884 Smart Sand Inc. 252, , ,937 Ss&c Technologies Holdings Inc. 320, , ,559 Tenneco Inc. 481, , ,483 Timken Company 429, , ,640 Treehouse Foods Inc. 466, , ,760 Tupperware Brands Corp. 272, , ,715 Unifirst Corp. 418, , ,313 United Natural Foods Inc. 304, , ,031 Univest Corp. of Pennsylvania 595, , ,915 Urban Edge Properties 395, , ,693 Vail Resorts Inc. 383, , ,923 Valvoline Inc. 449, , ,978 Verint Systems Inc. 489, , ,145 Watsco Inc. 335, , ,447 Williams-Sonoma Inc. 292, , ,972 Workiva Inc. 294, , ,511,948 31,369, Virgin Islands (British) 69,110 Amira Nature Foods Limited 460, , , , Equities Total 26,526,319 32,475, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 26,526,319 32,475, MANULIFE GLOBAL FUND

238 U.S. SMALL CAP EQUITY FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Other transferable securities and money market instruments (2) Equities United States 57,853 Osiris Therapeutics Inc. 268, , , , Equities Total 268, , Total Other transferable securities and money market instruments (2) 268, , Portfolio of Investments 26,794,764 32,833, Other Net Assets 1,371, Net Assets 34,204, (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 236

239 U.S. SMALL CAP EQUITY FUND Investment Objective: The sub-fund aims to make diversified investments mainly in equity-related investments and equities of smaller capitalization companies covering different sectors of the economy in the U.S. and which are listed on any stock exchange. The remaining assets of the sub-fund may include convertible bonds, bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* U.S. Small Cap Equity Fund Class AA % Russell 2000 Index % PORTFOLIO REVIEW The sub-fund s stock selection contributed to performance over the period. Individual contributors included a designer and manufacturer of single-use medical products for cardiovascular and endoscopy procedures; a manufacturer of recreational boats that has executed well on its plans; and a company that processes regenerative materials for wound care and other medical applications. The company has been performing very well recently and the cloud created by a whistle-blower lawsuit has diminished. The sub-fund s cash position detracted from performance over the period. Individual detractors included a producer of low-priced bathroom tissues that reported disappointing sales and pricing; a seller of software for connected devices that recently announced a large earnings miss and senior management departures; and a real estate investment trust (REIT) whose holdings include shopping centres, which are currently out of favour as internet sales increase. The sub-fund s portfolio manager (PM) added numerous new positions during the year, taking a bottomup approach, with individual stocks competing for capital in the portfolio. The PM also eliminated numerous positions during the year. Most stocks were sold because they appreciated and reached their fair value. MARKET REVIEW The period was eventful for financial markets. The Fed raised short-term interest rates three times during the year, marking the first changes to short-term rates since the financial crisis. The 10-year Treasury yield, which was at a record-low level 12 months ago, increased in line with the change in short-term yields. Donald Trump was elected as US president and the equity market favoured cyclical stocks during the fourth quarter of However, market leadership reversed as his economic agenda was delayed. Oil prices declined, and energy was the only sector in the benchmark that declined. OUTLOOK The PM has positioned the sub-fund for modest, continued economic expansion. The PM does not foresee a recession in the near term, and will continue to watch indicators with caution. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 237 MANULIFE GLOBAL FUND

240 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Bonds Bermuda 250,000 Aircastle Limited 5.125% 15/Mar/ , , , , Canada 400,000 First Quantum Minerals Limited 7.250% 416, , /May/ ,000 Teck Resources Limited 6.250% 15/Jul/ , , , , Cayman Islands 530,000 Vale Overseas Limited 5.875% 10/Jun/ , , , , France 285,000 Credit Agricole FRN 23/Mar/ , , ,000 Credit Agricole FRN 29/Dec/ , , ,000 SFR Group SA 6.250% 15/May/ , , ,390 1,021, Luxembourg 400,000 Altice Financing SA 7.500% 15/May/ , , ,000 Arcelormittal 7.250% 25/Feb/ , , ,000 Intelsat Jackson Holdings SA 5.500% 511, , /Aug/ ,000 Wind Acquisition 7.375% 23/Apr/ , , ,676,956 1,934, Marshall Islands 415,000 Teekay Offshore Partners LP 6.000% 415, , /Jul/ , , Netherlands 735,000 ING Groep NV FRN 31/Dec/ , , ,000 Myriad International Holdings 5.500% 285, , /Jul/2025 1,018,888 1,094, United Kingdom 580,000 Lloyds Banking Group plc FRN 30/Apr/ , , , , MANULIFE GLOBAL FUND 238

241 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States 140,000 Advanced Micro Devices Inc % 149, , /Jul/ ,000 Aecom 5.875% 15/Oct/ , , ,000 AMC Entertainment Inc % 15/Jun/ , , ,000 Amc Networks Inc % 1/Apr/ , , ,000 American Express Company FRN 400, , /Dec/ ,000 Amerigas Partners LP 5.625% 20/May/ , , ,000 Amerigas Partners LP 5.750% 20/May/ , , ,000 AmeriGas Partners LP 5.500% 20/May/ , , ,000 Antero Resources Corp % 1/Dec/ , , ,000 Ashland Inc % 15/May/ , , ,000 Ball Corp % 15/Dec/ , , ,000 Ball Corp % 15/Mar/ , , ,000 Cablevision Systems 5.875% 15/Sep/ , , ,000 Cablevision Systems Corp % 156, , /Apr/ ,000 Cablevision Systems Corp % 371, , /Apr/ ,000 Centene Corp % 15/Feb/ , , ,000 Centurylink Inc % 1/Apr/ , , ,000 Chemours Company 6.625% 15/May/ , , ,000 Chemtura Corp % 15/Jul/ , , ,000 Citigroup Inc. FRN 29/Dec/ , , ,000 Citigroup Inc. FRN 29/Dec/ , , ,000 Citigroup Inc. FRN 15/Nov/ , , ,000 Community Health Systems (CHS) 5.125% 468, , /Aug/ ,000 Community Health Systems (CHS) 6.250% 170, , /Mar/ ,000 Community Health Systems (CHS) 6.875% 680, , /Feb/ ,000 Community Health Systems Inc % 296, , /Nov/ ,000 Cooper Tire & Rubber Company 7.625% 310, , /Mar/ ,000 Davita Healthcare Partners Inc % 368, , /May/ ,000 Davita Healthcare Partners Inc % 693, , /Jul/ ,000 Denbury Resources Inc % 15/Jul/ , , ,000 Dynegy Inc % 1/Jun/ , , ,000 Enova International Inc % 1/Jun/ , , ,000 Freeport-McMoran Inc % 15/Mar/ , , ,000 Frontier Communications Corp % 339, , /Sep/ ,000 Frontier Communications Corp % 563, , /Sep/ ,000 Goldman Sachs Group Inc. FRN 29/Dec/ , , MANULIFE GLOBAL FUND

242 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States (continued) 245,000 Graphic Packaging Holding Company 4.875% 245, , /Nov/ ,000 HCA Inc % 15/Jun/ , , ,000 HCA Inc % 1/Feb/ , , ,000 HCA Inc % 1/Feb/ , , ,000 HCA Inc % 15/Feb/ , , ,000 Healthsouth Corp 5.750% 1/Nov/ , , ,000 Healthsouth Corp % 15/Mar/ , , ,000 Ingram Micro Inc % 15/Dec/ , , ,000 Iron Mountain Inc % 15/Aug/ , , ,000 JPMorgan Chase & Company FRN 258, , /Dec/ ,000 JPMorgan Chase & Company FRN 722, , /Aug/ ,000 Laredo Petroleum Inc % 15/Mar/ , , ,000 Lear Corp % 15/Jan/ , , ,000 Leucadia National Corp % 18/Oct/ , , ,000 Lifepoint Health Inc % 1/Dec/ , , ,000 Mgic Investment Corp % 15/Aug/ , , ,000 Morgan Stanley FRN 29/Dec/ , , ,000 Murphy Oil Corp % 15/Aug/ , , ,000 Nationstar Mortgage LLC 6.500% 1/Jun/ , , ,000 Nationstar Mortgage LLC 7.875% 1/Oct/ , , ,000 NCR Corp % 15/Dec/ , , ,000 NCR Corp % 15/Dec/ , , ,000 Newfield Exploration Company 5.750% 519, , /Jan/ ,000 NRG Energy Inc % 15/Jul/ , , ,000 NRG Energy Inc % 15/Jan/ , , ,000 NRG Yield Operating LLC 5.375% 809, , /Aug/ ,000 Oasis Petroleum Inc % 15/Mar/ , , ,000 Outfront Media Cap LLC 5.625% 15/Feb/ , , ,000 Outfront Media Cap LLC 5.875% 387, , /Mar/ ,000 Pvh Corp % 15/Dec/ , , ,000 Radian Group Inc % 15/Mar/ , , ,000 Resolute Energy Corp % 1/May/ , , ,000 Revlon Consumer Products Corp % 329, , /Aug/ ,000 Reynolds Group Issuer Inc % 437, , /Oct/ ,000 Rice Energy Inc % 1/May/ , , ,000 Sabine Pass Liquefaction LLC 5.625% 536, , /Mar/ ,000 Sanchez Energy Corp % 15/Jan/ , , ,000 Select Medical Corp % 1/Jun/ , , ,000 Sirius Xm Radio Inc % 15/Jul/ , , ,000 SM Energy Company 5.625% 1/Jun/ , , ,000 SM Energy Company 6.750% 15/Sep/ , , MANULIFE GLOBAL FUND 240

243 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States (continued) 405,000 Spectrum Brands Inc % 15/Jul/ , , ,000 Springleaf Finance C 6.125% 15/May/ , , ,000 Sprint Communications Inc % 274, , /Nov/ ,000 Sprint Communications Inc % 209, , /Nov/ ,000 Sprint Corp % 15/Jun/ , , ,000 Sprint Corp % 15/Sep/ , , ,000 Sprint Nextel Corp % 15/Aug/ , , ,000 Summit Midstream Holdings LLC 5.500% 396, , /Aug/ ,000 Summit Midstream Holdings LLC 5.750% 300, , /Apr/ ,000 Tempur Sealy International Inc % 600, , /Jun/ ,000 Tenet Healthcare Corp % 1/Oct/ , , ,000 Tesoro Corp % 1/Apr/ , , ,000 Tesoro Logistics LP 5.250% 15/Jan/ , , ,000 Tesoro Logistics LP 6.250% 15/Oct/ , , ,000 Tesoro Logistics LP 6.375% 1/May/ , , ,000 T-Mobile USA Inc % 15/Jan/ , , ,000 T-Mobile USA Inc % 1/Apr/ , , ,000 Tronox Finance LLC 6.375% 15/Aug/ , , ,000 United Rentals North America Inc % 375, , /Jul/ ,000 United Rentals North America Inc % 230, , /Jun/ ,000 Uniti Group Inc % 15/Oct/ , , ,000 Wells Fargo & Company FRN 29/Dec/ , , ,000 Whiting Petroleum Corp % 445, , /Mar/ ,000 Whiting Petroleum Corp % 1/Apr/ , , ,000 Williams Companys Inc % 24/Jun/ , , ,000 Williams Partners LP 4.875% 15/Mar/ , , ,000 WPX Energy Inc % 15/Sep/ , , ,320,640 41,648, Bonds Total 46,502,719 48,335, Bonds convertibles United States 288 Wells Fargo & Company 7.500% 31/Dec/ , , , , Bonds convertibles Total 362, , MANULIFE GLOBAL FUND

244 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Ireland Equities 236 Allergan plc 1/Mar/ , , , , United States 6,500 Dominion Resources Inc. 15/Aug/ , , ,675 DTE Energy Company 1/Oct/ , , ,708 Energy XXI Gulf Coast Inc. 185,763 68, ,040 GMAC Capital Trust I 15/Feb/ , , ,445 Halcon Resources Corp. 207,880 28, ,655 Nextera Energy Inc. 1/Sep/ , , Resolute Forest Products Inc 0 4, ,040 Stanley Black Conv Prefered 15/May/ , , ,125,356 1,879, Equities Total 2,301,215 2,084, Warrants Equity United States 1,750 Halcon Resources Corp. Wts 9/Sep/2020 Str , , Warrants Equity Total 0 1, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 49,166,400 50,798, Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Bonds Canada 500,000 Nova Chemicals Corp % 1/Aug/ , , , , Luxembourg 77,000 Intelsat Jackson Holding 8.000% 15/Feb/ ,013 82, ,013 82, United States 300,000 Aecom 5.125% 15/Mar/ , , ,000 CCO Holdings LCC 5.125% 1/May/ , , ,000 CCO Holdings LLC 5.125% 15/Feb/ , , ,000 Cheniere Corp % 31/Mar/ , , ,000 Chesapeake Energy Corp % 255, , /Jun/ ,000 Clear Channel Worldwide Holdings Inc. 474, , % 15/Nov/ ,000 Csi Compressco 7.250% 15/Aug/ , , MANULIFE GLOBAL FUND 242

245 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets United States (continued) 250,000 Dish Dbs Corp % 1/Sep/ , , ,000 DISH DBS Corp % 1/Jul/ , , ,000 Eldorado Resorts Inc % 1/Aug/ , , ,000 Freeport-Mcmoran Inc % 15/Feb/ , , ,000 Gci Inc % 15/Apr/ , , ,000 Hilton Grand Vacations Borrower LLC 6.125% 235, , /Dec/ ,000 Iheartcommunication % 15/Mar/ , , ,000 Micron Technology Inc % 1/Feb/ , , ,000 Pbf Holding Company LLC 7.250% 125, , /Jun/ ,000 Platform Specialty Products Corp % 517, , /May/ ,000 SBA Communications 4.875% 15/Jul/ , , ,000 Starwood Property Trust Inc % 310, , /Dec/ ,000 Windstream Corp % 1/Jun/ , , ,710,936 8,026, Bonds Total 8,298,699 8,624, Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities 8,298,699 8,624, Other transferable securities and money market instruments (2) Mortgage and Asset Backed Securities Cayman Islands 30,818 Lehman XS Net Interest Margin Notes 9.000% 28/Jan/2047 a 29, , , Mortgage and Asset Backed Securities Total 29, Bonds Canada 440,000 MDC Partners Inc % 1/May/ , , ,000 Valeant Pharmaceuticals International P.P. 411, , A 5.875% 15/May/ , , MANULIFE GLOBAL FUND

246 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Luxembourg 130,000 Fage International 5.625% 15/Aug/ , , ,000 Mallinckrodt International Finance 5.500% 484, , /Apr/ , , United Kingdom 470,000 International Game Tech P.P. 144A 6.500% 454, , /Feb/ , , United States 400,000 Cengage Learning Inc % 15/Jun/ , , ,000 Huntington Ingalls Industries 5.000% 202, , /Nov/ ,000 Kronos Acquisition Holdings 9.000% 219, , /Aug/ ,000 Mohegan Tribal Gaming Authority 7.875% 416, , /Oct/ ,000 OPE KAG Finance Sub P.P. 144A 7.875% 400, , /Jul/ ,000 Permian Resources LLC 7.125% 1/Nov/ , , ,000 Platform Specialty Products % 180, , /May/ ,000 Radiate Holdco LLC 6.625% 15/Feb/ , , ,440,000 Stone Company 0.000% 31/Dec/2049 a ,000 Uniti Group 7.125% 15/Dec/ , , ,000 Wmg Acquisition Corp % 15/Apr/ , , ,000 Zf North America Capital Inc. P.P. 144A 475, , % 29/Apr/2025 3,356,503 3,373, Bonds Total 5,279,356 5,379, Bonds convertibles United States 125,000 Liberty Expedia 5.157% 30/Jun/ , , , , Bonds convertibles Total 125, , MANULIFE GLOBAL FUND 244

247 U.S. SPECIAL OPPORTUNITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Equities United States 7,769 Muzak Holdings Escrow ,462 Vertis Holdings Inc. a 461, , Equities Total 461, Warrants Equity Canada 8,881 Warrant On Mood Media Corp. Wts 1/Jan/2049 a 169, , Warrants Equity Total 169, Total Other transferable securities and money market instruments (2) 6,063,673 5,512, Portfolio of Investments 63,528,772 64,935, Other Net Assets 3,685, Net Assets 68,620, a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. 245 MANULIFE GLOBAL FUND

248 U.S. SPECIAL OPPORTUNITIES FUND Investment Objective: The sub fund aims to maximize total returns from a combination of current income and capital appreciation. To pursue this objective, the sub-fund will primarily invest in U.S. and foreign fixed-income securities rated BB/Ba or lower and their unrated equivalents. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* U.S. Special Opportunities Fund Class AA % U.S. Special Opportunities Fund Class AA Inc % U.S. Special Opportunities Fund Class T % BofA Merrill US High Yield Master II Index % PERFORMANCE FROM 1 JULY 2016 TO 15 DECEMBER 2016 U.S. Special Opportunities Fund Class I +5.66% PERFORMANCE FROM 25 JANUARY 2017 TO 4 MAY 2017 U.S. Special Opportunities Fund Class I % PORTFOLIO REVIEW Security selection in most sectors especially consumer cyclicals, consumer non-cyclicals, and finance companies contributed to the sub-fund s performance. Individual contributors included a semiconductor producer on optimism toward the firm s improved trajectory, an online financial services company on its solid operating results, and a communications satellite services provider on favourable sentiment. Security selection in the energy sector and among transportation and capital goods companies detracted from performance. Individual detractors included two oil and natural gas companies on their mixed outlooks, and a cosmetics company on pressures in the retail industry. MARKET REVIEW The period began with high-yield bonds and loans providing solid gains against a backdrop of diminished global macroeconomic concerns and accommodative central bank policies. Continued recovery in the commodities sectors remained a key theme for high-yield markets since bottoming in early Furthermore, expectations for a lower-for-longer interest rate environment contributed to investor demand for higher-risk/higher-yield market sectors. Volatility increased at the end of 2016 as investors digested fluctuating oil prices and the likelihood of the Organization of the Petroleum Exporting Countries (OPEC) agreeing on supply cuts. The results of the US elections in November, the potential impact of a new administration, and expectations for Fed action in 2017 also contributed to volatility. Despite negative performance in November, which was accompanied by the biggest increase in treasury rates since 2013, high-yield markets performed well over the first half of the period. They continued to perform well in 2017 as optimism surrounding the new US administration; solid economic data and earnings reports; and stabilising US Treasury yields provided a supportive backdrop for risk assets. All industry sectors performed strongly. In recent months, the market dynamics surrounding the price of crude oil has put pressure on the energy sector, and concerns about the impact of e-commerce on consumer behaviour has negatively affected the retail industry. Despite these pockets of concern, highyield markets rose as default expectations have diminished and the global search for yield continues to bring investor interest to the asset class. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. MANULIFE GLOBAL FUND 246

249 U.S. SPECIAL OPPORTUNITIES FUND OUTLOOK The sub-fund s portfolio manager (PM) believes corporate fundamentals remain solid across a variety of sectors. Initial optimism surrounding the US administration s agenda which included tax cuts, increased fiscal spending, and other pro-business policies has begun to wane as the timing and magnitude of policy implementation remains uncertain. The difficulties of putting these measures in place highlights the level of uncertainty surrounding policy implementation, as was demonstrated by the lack of resolution on a repeal and replacement for the Affordable Care Act. Given an upward bias for interest rates in the US, the PM remains diligent in managing portfolio duration (interest-rate sensitivity). The PM believes the flexibility to allocate across the broader credit universe, including across capital structures and the quality spectrum, is important when seeking to maximise riskadjusted returns. In an environment of relatively lower yields, protecting against deteriorating credits remains a critical component of portfolio construction and a key feature of the PM s credit selection process. The outlook for high-yield market returns appears favourable from both a fundamental and technical perspective at least relative to other fixed-income sectors with lower income potentials. Default expectations have diminished considerably, as commodity-related sectors have stabilised with improved economics for natural resource extraction. Furthermore, credit market dynamics are supportive of companies wanting to extend their financing needs. Investor sentiment also remains supportive as the global search for yield continues. However, given the stage and length of the credit cycle, the PM believes that security selection and fundamental analysis remain essential to success in the leveraged credit markets. Given the possibility for broader market volatility (as is often caused by central banks policy visibility, major elections, or other event risks), the PM believes there is reason to remain cautious and mindful of investor complacency in the months ahead. 247 MANULIFE GLOBAL FUND

250 U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments admitted to an official exchange listing (1) Supranationals, Governments and Local Public Authorities, Debt Instruments United States 315,000 United States Treasury Inflation Indexed Bonds 0.125% 15/Apr/ ,000 United States Treasury Inflation Indexed Bonds 0.126% 15/Jul/ ,000 United States Treasury Inflation Indexed Bonds 0.129% 15/Jul/ ,000 United States Treasury Inflation Indexed Bonds 0.669% 15/Jul/ ,000 United States Treasury Inflation Indexed Bonds 1.000% 15/Feb/ ,000 United States Treasury Inflation Indexed Bonds 1.230% 15/Jan/ ,000 United States Treasury Inflation Indexed Bonds 1.521% 15/Jan/ ,000 United States Treasury Inflation Indexed Bonds 2.368% 15/Jan/ ,000 United States Treasury Inflation Indexed Bonds 2.786% 15/Jan/ ,000 United States Treasury Inflation Indexed Bonds 2.817% 15/Jan/ ,000 United States Treasury Inflation Indexed Bonds 4.645% 15/Apr/ ,000 United States Treasury Inflation Indexed Bonds 5.479% 15/Apr/ ,000 United States Treasury Inflation Indexed N/B 0.129% 15/Jul/ ,000 United States Treasury Inflation Indexed N/B 0.135% 15/Jan/ ,000 United States Treasury Inflation Indexed N/B 0.678% 15/Jul/ ,000 United States Treasury Inflation Indexed N/B FRN 15/Feb/ ,000 United States Treasury Inflation Indexed N/B 2.402% 15/Feb/ ,000 United States Treasury Inflation Indexed N/B 2.462% 15/Jan/ ,000 United States Treasury Inflation Indexed N/B 3.080% 15/Jan/ ,000 United States Treasury Inflation Indexed N/B 5.758% 15/Apr/ , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,915 70, , , , , , , ,573,213 4,596, Supranationals, Governments and Local Public Authorities, Debt Instruments Total 4,573,213 4,596, Total Transferable securities and money market instruments admitted to an official exchange listing (1) 4,573,213 4,596, MANULIFE GLOBAL FUND 248

251 U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities Supranationals, Governments and Local Public Authorities, Debt Instruments United States 235,000 United States Treasury Inflation Indexed Bonds 0.623% 15/Jan/ ,000 United States Treasury Inflation Indexed Bonds 0.875% 15/Feb/ ,000 United States Treasury Inflation Indexed N/B 0.130% 15/Apr/ ,000 United States Treasury Inflation Indexed N/B 0.132% 15/Jan/ ,000 United States Treasury Inflation Indexed N/B 0.133% 15/Jul/ ,000 United States Treasury Inflation Indexed N/B 0.376% 15/Jul/ ,000 United States Treasury Inflation Indexed N/B 0.377% 15/Jul/ ,000 United States Treasury Inflation Indexed N/B 0.629% 15/Jan/ ,000 United States Treasury Inflation Indexed N/B 0.665% 15/Feb/ ,000 United States Treasury Inflation Indexed N/B 0.778% 15/Feb/ ,000 United States Treasury Inflation Indexed N/B 0.811% 15/Feb/ ,000 United States Treasury Inflation Indexed N/B 1.401% 15/Jul/ ,000 United States Treasury Inflation Indexed N/B 1.441% 15/Feb/ ,000 United States Treasury Inflation Indexed N/B 2.042% 15/Jan/ , , , , , , , , , , , , , , , , , , ,884 98, , , , , , , , , ,594,137 3,690, Supranationals, Governments and Local Public Authorities, Debt Instruments Total 3,594,137 3,690, Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities 3,594,137 3,690, MANULIFE GLOBAL FUND

252 U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND Portfolio of Investments as at 30 June 2017 Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets Other transferable securities and money market instruments (2) Mortgage and Asset Backed Securities United States 243,769 Indymac Index Mortgage Loan Trust FRN 25/Oct/ ,690 9, ,690 9, Mortgage and Asset Backed Securities Total 16,690 9, Total Other transferable securities and money market instruments (2) 16,690 9, Portfolio of Investments 8,184,040 8,295, Other Net Assets 40, Net Assets 8,336, (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements. MANULIFE GLOBAL FUND 250

253 U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND Investment Objective: The primary objective of this sub-fund is to maximize total returns, consistent with capital preservation, by investing in U.S. Treasury Inflation Protected Securities. In addition, the subfund may also invest in other types of inflation-indexed and non-inflation-indexed debt securities issued or guaranteed by the U.S. government, its agencies, instrumentalities and political sub-divisions. PERFORMANCE FROM 1 JULY 2016 TO 30 JUNE 2017* U.S. Treasury Inflation-Protected Securities Fund Class AA -2.22% U.S. Treasury Inflation-Protected Securities Fund Class AA Inc -2.22% U.S. Treasury Inflation-Protected Securities Fund Class l3-0.96% Barclays Capital U.S. Treasury inflation-protected securities Index -0.63% PORTFOLIO REVIEW The sub-fund s duration positioning aided performance. For most of the period, the sub-fund s duration (a measure of interest-rate sensitivity) was slightly shorter than that of the benchmark, which meant that the sub-fund had less sensitivity to yield fluctuations than the benchmark did. As a result, the sub-fund held up better than the benchmark as US Treasury inflation-protected securities (TIPS) yields rose and TIPS prices declined. The sub-fund was also positioned to benefit from a flatter yield curve (a narrower gap between shortand long-term TIPS yields). This positioning added value as short-term TIPS yields rose more than longerterm TIPS yields during the reporting period. The sub-fund s non-tips holdings detracted from performance. The sub-fund held a small position in residential mortgage-backed securities, and these holdings underperformed the TIPS market during the 12-month period. MARKET REVIEW US Treasury inflation-protected securities (TIPS) declined for the 12 months ended 30 June 2017, as slowing economic growth and decelerating inflation led to reduced demand for inflation protection. After growing at a 3.5% annual rate in the third quarter of 2016 (the fastest quarterly growth rate in more than two years), the US economy decelerated to a 2.1% annual growth rate in the fourth quarter of 2016 and 1.4% in the first quarter of Although employment growth remained robust the unemployment rate dipped from 4.9% to 4.3%, its lowest level in a decade other segments of the economy showed signs of slowing. For example, manufacturing activity remained muted, and consumer spending waned amid a decline in vehicle sales. On the inflation front, the year-over-year inflation rate (as measured by the consumer price index, or CPI) rose from 1.0% at the beginning of the reporting period to a five-year high of 2.8% in early 2017, reflecting a rebound in energy prices. However, the year-over-year inflation rate trended back down to 1.9% as of 31 May 2017 (the most recent data available). Core CPI, which excludes food and energy prices, rose by 1.7% over the same one-year period. Despite weaker economic data and a lack of inflationary pressure, the Fed raised its short-term interest rate target three times during the period. All three rate hikes were well telegraphed by the Fed and lifted the federal funds rate target to a range of 1.00% to 1.25%. Late in the reporting period, the Fed also released a plan for unwinding its balance sheet of US Treasury and mortgage-backed securities, though the timing of the balance sheet reduction remains unclear. In this environment, TIPS yields moved higher across the board. Shorter-term TIPS yields rose the most, reflecting the three Fed rate hikes the two-year TIPS yield increased from -0.72% to 0.10%, while the five-year TIPS yield rose from -0.40% to 0.19%. Longer-term TIPS yields increased to a lesser extent, with the 10-year TIPS yield rising from 0.05% to 0.53% and the 30-year TIPS yield increasing from 0.69% to 0.96%. The 10-year breakeven inflation rate, which reflects the market s inflation expectations for the next 10 years, widened from 1.42% to 1.75% during the 12-month period. * The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. 251 MANULIFE GLOBAL FUND

254 U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND OUTLOOK The sub-fund s portfolio manager (PM) expects the Fed to raise short-term interest rates once more before the end of The PM also expects the Fed to start reducing its balance sheet during the latter half of the year. On the economic front, the PM believes the US economy will continue to grow at a moderate pace while inflation pressures remain largely contained. The recent weakness in the TIPS market has made valuations more attractive compared with nominal US Treasury securities. All TIPS yields are now in positive territory, and the breakeven inflation rate is lower than the current inflation rate. The sub-fund has a slightly shorter duration than the benchmark and is positioned to benefit from continued flattening in the TIPS yield curve. MANULIFE GLOBAL FUND 252

255 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June General Manulife Global Fund (the Company ) was incorporated on 7 July 1987 as an open-ended investment company and is organised as a Société d Investissement à Capital Variable ( SICAV ) under Part I of the Law of 10 May 2016 of the Grand Duchy of Luxembourg. The Company maintains separate accounts for each sub-fund to which the proceeds of issue of shares and the income arising from the investment of those proceeds are credited and against which expenses are allocated and charged, as appropriate, on an equitable basis. Upon redemption, shareholders are entitled only to their proportion of the net assets, as reflected in the relevant Net Asset Value, held in the account relating to the sub-fund in which their class of shares is designated. Separate Statements of Operations, Net Assets and Changes in Net Assets have accordingly been prepared for each sub-fund. As of 30 June 2017, the Company is comprised of 27 sub-funds: American Growth Fund ASEAN Equity Fund Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation-Protected Securities Fund Please refer to the prospectus of the Company for details on the availability of respective share classes in the relevant jurisdictions. 253 MANULIFE GLOBAL FUND

256 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Accounting policies 2.1 Presentation of Financial Statements The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investments. 2.2 Investments Listed securities and securities dealt in on another regulated market are valued on the basis of their last available market price at the Valuation Point on the period end date. The prospectus defines the Valuation Point as 4:00 p.m. (Luxembourg time) on each Business Day (or such other time as may be otherwise determined by the Directors). Non-listed securities and money market instruments listed or dealt on a regulated market but in respect of which the last sales price is not representative of the fair value, are valued on the basis of their probable sales prices as determined with prudence and in good faith by the Board of Directors upon the advice of the Investment Managers. Liquid assets are valued at their face value with interest accrued; in the case of short-term instruments (especially discount instruments) that have a maturity of less than 90 days, the value of the instrument based on the net acquisition cost, is gradually adjusted to the repurchase price thereof while the investment return calculated on the net acquisition cost is kept constant. In the event of material changes in market conditions, the valuation basis of the investment is adjusted to the new market yields. In the event of it being impossible or incorrect to carry out a valuation in accordance with the above rules owing to particular circumstances, the Board of Directors is entitled to use other generally recognized valuation principles upon the advice of the Investment Managers, in order to reach a proper valuation of the Company s total assets. Units of underlying UCI and UCITS (target funds) are valued on the basis of their last available Net Asset Value per unit or share reduced by any applicable charges. Realised gains and losses on sales of investments in securities are determined on the basis of average cost. Any resulting gains or losses are recognized in the Statement of Changes in Net Assets under the heading Net profits/(losses) realised on sale of investments and options. The net change in unrealised appreciation/(depreciation) on investments and options is included in the Statement of Changes in Net Assets under the heading Net change in unrealised appreciation/(depreciation) on investments and options. Brokerage charges are taken into account in calculating the cost of investments. As approved by the pricing committee, the valuation of Renminbi ( RMB ) Bonds, denominated in Chinese Renminbi ( CNY ) and traded through Hong Kong or Singapore, is done at the Hong Kong delivered Chinese Renminbi ( CNH ) foreign exchange rate. All securities subject to this specific pricing process are indicated in the portfolios with a **. 2.3 Investment Income Dividends are credited to income on the date upon which the relevant securities are first listed as ex-dividend, net of any irrecoverable withholding tax. Bond and deposit interest income is accrued on a daily basis. 2.4 Foreign currency transaction Amounts included in the Statement of Operations in foreign currency are translated into the accounting currency of the respective sub-funds at rates of exchange prevailing on the date of the transaction. Resulting translation gains and losses are recognized in the Statement of Operations in the period in which they occur. MANULIFE GLOBAL FUND 254

257 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Accounting policies (continued) 2.4 Foreign currency transaction (continued) The financial statements and accounting records of each sub-fund are expressed in the reference currency of the relevant sub-fund. Transactions in currencies other than the subfunds currency are translated into the sub-funds currency based on the exchange rates in effect at the date of the transaction. Assets and liabilities denominated in other currencies are translated at the rate of exchange prevailing at the balance sheet date. Any resulting gains or losses are recognized in the Statement of Changes in Net Assets under the heading Net profits/(losses) realised on foreign currency. The main exchange rates used as of 30 June 2017 are: 1 USD = ARS 1 USD = MXN AUD MYR BRL NOK CAD NZD CHF PEN CLP PHP CNH PLN CZK RON DKK RUB EUR SEK GBP SGD HKD THB HUF TRY 13, IDR TWD INR 22, VND JPY ZAR 1, KRW 2.5 Futures contracts Outstanding futures contracts are valued at the reporting date at the last available market price of the instruments. The net change in unrealised appreciation/(depreciation) on futures is included in the Statement of Changes in Net Assets under the heading Net change in unrealised appreciation/(depreciation) on futures contracts. All margin amounts are included in Cash at bank. The realised gain/(loss) on futures contracts is disclosed in the Statement of Changes in Net Assets under the heading Net profits/(losses) realised on futures contracts. 2.6 Forward foreign exchange contracts Outstanding forward foreign exchange contracts are valued at the reporting date at the last available market price of the contract. The unrealised appreciation/(depreciation) on forward foreign exchange contracts is included in the Statement of Net Assets under the headings Unrealised appreciation on forward foreign exchange contracts and Unrealised depreciation on forward foreign exchange contracts. Any resulting gains or losses are recognized in the Statement of Changes in Net Assets under the heading Net profits/(losses) realised on forward foreign exchange contracts. The net change in unrealised appreciation/(depreciation) on forward foreign exchange contracts is included in the Statement of Changes in Net Assets under the heading Net change in unrealised appreciation/(depreciation) on forward foreign exchange contracts. 255 MANULIFE GLOBAL FUND

258 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Accounting policies (continued) 2.7 Options The Company may purchase and write (sell) options. The risk associated with purchasing an option is that the Company pays a premium whether or not the option is exercised. Additionally, the Company bears the risk of loss of the premium and any change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options are decreased by the premiums paid. When the sub-fund writes an option, the premium received by the sub-fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. In writing covered options, the sub-fund bears market risk of an unfavourable change in the price of the security underlying the written option. Exercise of an option written by the sub-fund could result in the sub-fund selling or buying a security at a price different from the current market value. Losses from written market index call options may be unlimited. Premiums received from writing options which expire unexercised are recorded by the sub-fund on the expiration date as realised gains from options transactions. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realised gain, or if the premium is less than the amount paid for the closing purchase transaction, as a realised loss. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the sub-fund has realised a gain or a loss. If a written put option is exercised, the premium reduces the cost basis of the security purchased by the sub-fund. 2.8 Consolidation The Company incorporated a Cypriot subsidiary, GFM Holdings (Cyprus) Limited, on 30 August 1996 (on behalf of the Emerging Eastern Europe Fund and the Russia Equity Fund). The Cypriot subsidiary is wholly owned and makes investments according to the Company s investment policy. The Company invests through the Cypriot subsidiary in order to minimize the tax costs of investing in Russia. The consolidated statements of the Emerging Eastern Europe Fund and the Russia Equity Fund include the assets and liabilities and the gains and losses of the respective subsidiaries. 2.9 Formation expenses Formation expenses are amortized over five years commencing from the inception date of the relevant share classes of the relevant sub-funds Combined figures The combined Statement of Net Assets, the combined Statement of Operations and the Combined Statement of Changes in Net Assets are expressed in United States Dollars. For this purpose, the corresponding statements of each sub-fund have been translated into United States Dollars at the exchange rate prevailing at the balance sheet date. MANULIFE GLOBAL FUND 256

259 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Expenses 3.1 Management Fees The General Adviser is entitled to receive management fees at the percentage specified below per annum on the net asset value of the relevant class of shares in the relevant sub-fund, accrued and calculated on each Business Day and payable monthly in arrears: Sub-Fund Class A Class AA Class AA Class AA (HKD) (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedge Class T Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a maximum % p.a. of the net asset value of the relevant Class) (as a maximum % p.a. of the net asset value of the relevant Class) (as a maximum % p.a. of the net asset value of the relevant Class) (as a maximum % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) (as a % p.a. of the net asset value of the relevant Class) Equity Funds: American Growth Fund 1.50% 1.75% 1.75% N/A N/A 2.00% 2.30% 1.60% 1.10% 0.90% * N/A N/A N/A N/A ASEAN Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A 1.00% N/A * N/A N/A N/A N/A Asia Value Dividend Equity Fund N/A 1.75% N/A N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Asian Equity Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A * N/A N/A N/A N/A Asian Small Cap Equity Fund N/A 1.75% 1.75% N/A N/A 2.20% 2.50% 1.70% 1.10% 0.90% N/A N/A N/A N/A N/A China Value Fund 1.50% 1.75% N/A N/A N/A 2.00% 2.30% 1.60% N/A N/A N/A N/A N/A N/A N/A Dragon Growth Fund 1.50% 1.75% 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Emerging Eastern Europe Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A European Growth Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A * N/A N/A N/A N/A Global Contrarian Fund N/A 1.75% 1.75% N/A N/A 2.00% 2.30% 1.60% 1.10% 0.90% * N/A 1.50% N/A N/A Global Equity Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A N/A N/A * N/A 1.50% N/A N/A Global Property Fund N/A 1.75% 1.75% N/A N/A N/A N/A N/A 1.10% N/A * N/A N/A N/A N/A Global Resources Fund N/A 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A * N/A N/A N/A N/A Greater China Opportunities Fund N/A 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A * N/A N/A N/A N/A Healthcare Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A * N/A N/A N/A N/A India Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A 0.90% * N/A N/A N/A N/A Japanese Growth Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A N/A N/A * N/A N/A N/A N/A Latin America Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Russia Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Taiwan Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A * N/A N/A N/A N/A Turkey Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A U.S. Small Cap Equity Fund N/A 1.75% N/A N/A N/A 2.00% 2.30% 1.60% 1.10% N/A * N/A N/A N/A N/A Bond Funds: Asia Total Return Fund N/A 1.25% 1.25% 1.25% 1.25% 1.50% 2.00% 1.10% 1.00%* 0.60% * 0.50% N/A 1.25% N/A Strategic Income Fund N/A 1.25% 1.25% 1.25% 1.25% 1.60% 2.10% 1.20% 1.10% 0.60% * 1.75% N/A 1.25% N/A U.S. Bond Fund N/A 1.25% 1.25% 1.25% 1.25% 1.50% 2.00% 1.10% 1.10% N/A * N/A N/A N/A N/A U.S. Special Opportunities Fund N/A 1.25% 1.25% 1.25% 1.25% N/A N/A N/A 1.10% 0.60% * N/A N/A N/A 1.25% U.S. Treasury Inflation-Protected Securities Fund N/A 1.25% N/A N/A 1.25% N/A N/A N/A 1.10% 0.60% * N/A N/A N/A N/A * Separately agreed with the relevant Manulife entity 257 MANULIFE GLOBAL FUND

260 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Expenses (continued) 3.2 Performance Fee In addition to the management fee, an annual performance fee may be paid in respect of each of the Classes A, AA and AA Inc Shares if the Net Asset Value per Share of the relevant Class at the end of any particular performance period (after taking into account the performance fee accrued but unpaid for the performance period) is in excess of the target Net Asset Value per Share for that Class (the Excess Return ). Performance fees can be levied in respect of each of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares. Currently, no performance fees are levied in respect of each of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares. However, the right to do so in respect of each of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares on such fee rate and calculation methodology to be determined is reserved, if the Directors so determine in the future. In the event of the imposition of such performance fees on any of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares, at least one month s notice (or such shorter notice as agreed with the relevant Shareholders of the relevant Class(es)) would be given. No performance fees are payable in respect of Class J Shares. Performance fees in respect of the Class A, Class AA and Class AA Inc Shares may be payable, equivalent to a maximum of 20% of such Excess Return multiplied by the average number of Shares in the relevant Class in issue during the performance period by reference to which the fee is payable. The target Net Asset Value per Share in each Class for the end of any particular performance period will be either: (a) (applicable to Asia Value Dividend Equity Fund only) the higher of (i) the target Net Asset Value per Share for the immediately preceding performance period; and (ii) the Net Asset Value per Share as at the close of business on the last Business Day in the immediately preceding performance period (after taking into account the performance fee paid for that performance period) (the Low Tide Mark ); or (b) (applicable to all other sub-funds) 110% (adjusted proportionally for any period of more or less than 12 months) of such Low Tide Mark (the 10% Hurdle Return ) (the Target Net Asset Value per Share ). The initial Target Net Asset Value per Share for a Class will be 110% (adjusted proportionally for any period of less than 12 months) of its initial offering price per Share. A performance fee rate of up to the maximum rate of 20% may be imposed. In the event of any increase of performance fee from the current rate up to the maximum rate of 20%, at least one month s prior notice would be given to affected Shareholders. The actual performance fee payable by, and the Target Net Asset Value Per Share applicable to, each sub-fund is set out in the table below: Performance Fee (as a % of the Excess Return) Target Net Asset Class A Class AA Class AA Inc Class T Value per Share Asia Value Dividend Equity Fund N/A 15% 15% N/A Low Tide Mark All other Sub-Funds* 8% 8% N/A 8% 10% Hurdle Return * Starting 17 June 2014 only applicable to China Value Fund, Emerging Eastern Europe Fund, Latin America Equity Fund, Russia Equity Fund and Turkey Equity Fund. MANULIFE GLOBAL FUND 258

261 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Expenses (continued) 3.2 Performance Fee (continued) The performance fee payable by each sub-fund is accrued on each Business Day throughout the relevant performance period and is payable as soon as reasonably practicable after the end of such performance period. The accrual is made based on the Net Asset Value per Share on each Business Day. If it exceeds the Target Net Asset Value per Share for that Class, a performance fee accrual will be made. If not, no performance fee accrual will be made. On each Business Day, the accrual made on the previous Business Day will continue to be reversed and a new performance fee accrual will be calculated and made in accordance with the above. The standing policy of the Company is that a relevant sub-fund which is entitled to levy a performance fee does not perform equalisation or issue different series of shares for the purposes of determining the performance fee payable. The Company s methodology for calculating the performance fee involves adjusting the issue and redemption price per share to make provision for accrual for the performance fee upon the issue and redemption of shares during the relevant performance period. 3.3 Administration and Depositary fees From 1 July 2016 to 30 June 2017, Citibank Europe plc, Luxembourg Branch received fees as Administrator and Depositary at annual rates as follows: Administration fee: The Company pays the fees of the Administrator, Registrar, Listing Agent, Paying Agent and Transfer Agent at commercial rates agreed between these parties and the Company, in addition to reasonable out-of-pocket expenses properly incurred in the course of carrying out their duties. The maximum fee paid for these services by the Company will be 0.5% p.a. of its Net Asset Value (excluding reasonable out-of-pocket expenses). The actual fees charged are 4 basis points p.a. on Net Asset Value per sub-fund below first USD 250 million and 3 basis points p.a. on Net Asset Value per sub-fund above USD 250 million, with a minimum of USD 10,000 per sub-fund p.a. Depositary fee: The fee paid by the Company for this service varies depending upon the markets in which the assets of the Company are invested and custodied. It typically ranges from 0.003% p.a. of the value of the assets of a sub-fund of the Company which are held in developed markets to 0.40% p.a. of the value of the assets of such sub-funds which are held in emerging markets (excluding transaction charges and reasonable disbursements and out-of-pocket expenses). Settlement charges are on a per transaction basis, which vary depending on the countries of which the securities are settled. It ranges from USD 6 per transaction for developed markets to USD 130 per transaction in emerging markets. Reasonable expenses properly incurred by the Depositary or by other banks and financial institutions to which safekeeping of assets of the Company is entrusted are additional to the Depositary s fee and will be borne by the Company. The Depositary s fee normally includes the custody fees and certain transaction charges of the other banks and financial institutions. 3.4 Initial, Redemption and Switching Charges Although an initial charge of up to 6% may be deducted from any subscription monies received from investors, no such initial charge is presently levied on Shareholders in respect of Class A, Class HC, Class HI, Class I, I3 and Class J Shares. An initial charge of up to 3.5% of the subscription amount is levied in respect of all applications for class S Hedged Shares. An initial charge of up to 5% of the subscription amount is levied in respect of all applications for Class AA, Class AA (AUD Hedged), Class AA (CAD Hedged), Class AA (CAD), Class AA (HKD), Class AA Inc, Class AA (AUD Hedged) Inc, Class AA (CAD Hedged) Inc, Class AA (HKD) Inc, Class HA, Class I2, Class I2 SGD Hedged, Class S and Class T Shares. 259 MANULIFE GLOBAL FUND

262 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Expenses (continued) 3.4 Initial, Redemption and Switching Charges (continued) Applicants are charged a redemption charge of a maximum of 1% of the Redemption Price if they redeem their Class A Shares within the first two years of subscribing for the relevant Shares. However, the Company may (by giving not less than three months notice to the Shareholders and the Depositary) increase or (without having to give any prior notice) decrease or waive the redemption charge. In any case, the redemption charge does not exceed a maximum of 1% of the Redemption Price. No redemption charge is presently levied in respect of Class AA, Class AA (AUD Hedged), Class AA (CAD Hedged), Class AA (CAD), Class A (HKD), Class AA Inc, Class AA (AUD Hedged) Inc, Class AA (CAD Hedged) Inc, Class AA (HKD) Inc, Class I, Class I2, Class I2 SGD Hedged, Class I3, Class J, Class S, Class S Hedged, or Class T Shares. A switching charge of up to 1% of the total Redemption Price payable on the Shares being redeemed shall apply in respect of all conversion requests received by the Company or the Distributor unless otherwise agreed with the relevant Shareholders. The Distributor is entitled to retain initial, switching and redemption charges (if any) payable by Shareholders as described in the latest prospectus. 3.5 Brokerage No transactions were entered into by the Company that were effected through Manulife and no commissions were paid to Manulife for any transactions. 3.6 Cash commissions All cash commissions received by the Investment Managers, Sub-Investment Managers or investment advisers or any of their associated persons arising out of the sale and purchase of investments for the Company are credited to the account of the relevant sub-fund managed or advised by such Investment Manager, Sub-Investment Manager or investment advisers. The prospectus allows the Investment Managers, Sub-Investment Managers or investment advisers or any of their associated persons to receive and retain goods and services and other soft dollar benefits which are of demonstrable benefit to the Shareholders as may be permitted under relevant regulations from brokers and other persons through whom such investment transactions are carried out. These goods and services include, but are not limited to, qualifying research services, computer hardware and software obtained to enhance investment decision making and appropriate order execution services. In all cases where such goods and services and other soft dollar benefits are retained by any of the Investment Managers, Sub-Investment Managers or investment advisers or any of their associated persons, such person shall ensure that transaction execution is consistent with best execution standards and that any brokerage fee borne by the relevant sub-fund does not exceed customary institutional full service brokerage rates for such transactions. No soft commission arrangements were entered into in respect of the Company s transactions with brokers, except that of Manulife Asset Management (US) LLC. Details of soft commission are: Investment Manager(s)/ Sub-Investment Manager(s)/ Investment Adviser(s) Name of the sub-funds For the year ended 30-Jun-17 USD For the year ended 30-Jun-16 USD Manulife Asset Management American Growth Fund 25,224 7,827 (US) LLC Global Contrarian Fund Healthcare Fund 15,087 14,560 U.S. Small Cap Equity Fund 1,173 2,068 MANULIFE GLOBAL FUND 260

263 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Expenses (continued) 3.7 Transaction costs For the year ended 30 June 2017 and year ended 30 June 2016, the Company incurred transaction costs related to purchase or sale of financial instruments (securities and derivatives) as follows. These charges consist of broker fees and stamp duty tax and are included in the cost of investments. Sub-Fund Transaction costs in USD For the For the year ended year ended 30 June June 2016 Equity Funds: American Growth Fund 174,620 66,554 ASEAN Equity Fund 24,235 12,669 Asia Value Dividend Equity Fund 63,574 63,393 Asian Equity Fund 781,122 2,069,060 Asian Small Cap Equity Fund 4,827,409 6,399,239 China Value Fund 1,737,268 1,319,700 Dragon Growth Fund 485, ,014 Emerging Eastern Europe Fund 150, ,056 European Growth Fund 391, ,852 Global Contrarian Fund 15,202 13,997 Global Equity Fund 97, ,282 Global Property Fund 4,581 8,158 Global Resources Fund 9,831 9,316 Greater China Opportunities Fund 56,631 48,738 Healthcare Fund 118, ,753 India Equity Fund 1,390,311 1,468,174 Japanese Growth Fund 31,462 28,126 Latin America Equity Fund 89,588 99,266 Russia Equity Fund 180, ,295 Taiwan Equity Fund 127, ,541 Turkey Equity Fund 55,277 33,670 U.S. Small Cap Equity Fund 54,563 61,599 Bond Funds: Asia Total Return Fund 15,588 1,304 Strategic Income Fund 7,444 12,464 U.S. Bond Fund 20 5 U.S. Special Opportunities Fund U.S. Treasury Inflation-Protected Securities Fund 261 MANULIFE GLOBAL FUND

264 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Taxation 4.1 Luxembourg The Company is not liable for any Luxembourg tax on profits or income, and dividends paid by the Company are not liable to any withholding tax, subject to certain conditions. The Company is liable in Luxembourg to a tax of 0.05% per annum in respect of the aggregate Net Asset Value of the Class A, Class AA, Class AA (AUD Hedged), Class AA (CAD Hedged), Class AA (CAD), Class AA (HKD), Class AA Inc, Class AA (AUD Hedged) Inc, Class AA (CAD Hedged) Inc, Class AA (HKD) Inc, Class HA, Class HC, Class I2, Class I2 SGD Hedged, Class T, Class S and Class S Hedged Shares of all the sub-funds, such tax being payable quarterly on the basis of the value of the net assets of the Company at the end of the relevant calendar quarter. The Company is liable in Luxembourg to a tax of 0.01% per annum in respect of the aggregate Net Asset Value of the Class HI, Class I, Class I3 and Class J Shares of all the sub-funds, such tax being payable quarterly on the basis of the value of the net assets of the Company at the end of the relevant calendar quarter. No stamp duty or other tax is payable in Luxembourg on the issue of Shares. No Luxembourg capital gains tax is payable on the realised or unrealised capital appreciation of the assets of the Company. Foreign income, capital gains, dividends and interest may be subject to withholding taxes or other taxes imposed by the country of origin concerned and such taxes may not be recoverable by the Company or its Shareholders. Where there is a reasonable likelihood that a tax liability will be incurred, such tax payable is provided for in the Net Asset Value. 4.2 United Kingdom The Directors have sought and gained approval for various Classes of the Company as reporting funds for UK taxation purposes for periods from 1 July 2011 onwards and to manage the affairs of the Company such that the relevant ongoing obligations which registration carries continue to be met. The full list of Classes which have sought and gained reporting funds status is detailed below: Reporting Fund, Sub-Fund Class with effect from American Growth Fund A 1-Jul-11 American Growth Fund AA 1-Jul-11 American Growth Fund I 16-Oct-12 Asia Total Return Fund AA Inc 1-Jul-11 Asia Total Return Fund I 1-Jul-11 Asia Value Dividend Equity Fund AA 1-Jul-11 Asian Equity Fund A 1-Jul-11 Asian Equity Fund AA 1-Jul-11 Asian Equity Fund I 1-Jul-11 Asian Small Cap Equity Fund AA 1-Jul-11 Asian Small Cap Equity Fund I 1-Jul-11 China Value Fund A 1-Jul-11 China Value Fund AA 1-Jul-11 Dragon Growth Fund A 1-Jul-11 Dragon Growth Fund AA (HKD) 1-Jul-11 Emerging Eastern Europe Fund A 1-Jul-11 Emerging Eastern Europe Fund AA 1-Jul-11 European Growth Fund A 1-Jul-11 European Growth Fund AA 1-Jul-11 European Growth Fund I 6-Feb-14 Global Contrarian Fund AA 1-Jul-11 Global Contrarian Fund I2 1-Jul-12 Global Property Fund AA 1-Jul-11 Global Resources Fund AA 1-Jul-11 Greater China Opportunities Fund I 1-Jul-11 MANULIFE GLOBAL FUND 262

265 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Taxation (continued) 4.2 United Kingdom (continued) Reporting Fund, Sub-Fund Class with effect from Healthcare Fund AA 1-Jul-11 India Equity Fund AA 1-Jul-11 Global Equity Fund A 1-Jul-11 Global Equity Fund AA 1-Jul-11 Japanese Growth Fund A 1-Jul-11 Japanese Growth Fund AA 1-Jul-11 Latin America Equity Fund AA 1-Jul-11 Russia Equity Fund AA 1-Jul-11 Strategic Income Fund AA 1-Jul-11 Strategic Income Fund I2 1-Jul-12 Taiwan Equity Fund AA 1-Jul-11 Turkey Equity Fund AA 1-Jul-11 U.S. Bond Fund AA 1-Jul-11 U.S. Bond Fund I 2-Jun-14 U.S. Small Cap Equity Fund AA 1-Jul-11 U.S. Special Opportunities Fund AA 1-Jul-11 U.S. Special Opportunities Fund I 2-Jun-14 U.S. Treasury Inflation Protected Securities Fund AA 1-Jul India Section 2(14)(b) of the Income-tax Act, 1961 ( the Act ) of India Income Tax provides any security held by foreign institutional investor which has invested in such security in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 would be treated as capital asset. Hence, any income arising from transfer of such security by a Foreign Portfolio Investor (FPI) would be in the nature of capital gain and subject to capital gain tax. For the year ended 30 June 2017 and year ended 30 June 2016, the total capital gain tax paid by the following sub funds are as follows: Sub-Fund Capital Gain Tax in USD For the year ended 30 June 2017 For the year ended 30 June 2016 Asian Equity Fund 10,188 Asia Total Return Fund 42,372 India Equity Fund 3,252,028 1,268, United States A new US tax regulation came into force on 1st January 2017: IRS 871(m). The US Internal Revenue Code (IRS) issued a new tax rule, which will come in different phases, starting from 01 January IRS 871 (m) imposes US withholding tax (WHT) on non-us persons holding certain derivatives on US Equity securities. The dividend element is currently part of those derivatives prices, and will be the basis for the new US withholding tax. That information will be available on broker statement. 263 MANULIFE GLOBAL FUND

266 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Dividend policy The Company s policy is to distribute annually at least 85% of the available net investment income of each sub-fund, to its Shareholders. The following dividends were distributed to Shareholders during the year ended 30 June 2017 and year ended 30 June 2016: For the year ended 30 June 2017 For the year ended 30 June 2016 Name of Sub-Funds Class Currency Dividend Per Share Distribution Date Dividend Per Share Distribution Date Annual Dividend American Growth Fund I3 USD Nov Nov-15 ASEAN Equity Fund I USD Nov-16 Asia Total Return Fund AA USD Nov Nov-15 Asia Total Return Fund AA Inc USD Nov Nov-15 Asia Total Return Fund AA (HKD) HKD Nov-16 Asia Total Return Fund AA (HKD) Inc HKD Nov Nov-15 Asia Total Return Fund HA USD Nov-15 Asia Total Return Fund HC USD Nov-15 Asia Total Return Fund HI USD Nov-15 Asia Total Return Fund I USD Nov Nov-15 Asia Total Return Fund I3 USD Nov-16 Asia Total Return Fund J USD Nov Nov-15 Asia Value Dividend Equity Fund AA USD Nov-16 Asian Equity Fund A USD Nov Nov-15 Asian Equity Fund AA USD Nov-15 Asian Equity Fund I USD Nov Nov-15 Asian Equity Fund I3 USD Nov Nov-15 Asian Small Cap Equity Fund AA USD Nov-15 Asian Small Cap Equity Fund AA (HKD) HKD Nov-15 Asian Small Cap Equity Fund HA USD Nov-15 Asian Small Cap Equity Fund HI USD Nov-15 Asian Small Cap Equity Fund I USD Nov Nov-15 China Value Fund A USD Nov Nov-15 China Value Fund AA USD Nov Nov-15 China Value Fund HA USD Nov-15 Dragon Growth Fund A USD Nov Nov-15 Dragon Growth Fund AA (HKD) HKD Nov Nov-15 Emerging Eastern Europe Fund A USD Nov Nov-15 Emerging Eastern Europe Fund AA USD Nov Nov-15 European Growth Fund A USD Nov Nov-15 European Growth Fund AA USD Nov Nov-15 European Growth Fund I USD Nov Nov-15 European Growth Fund I3 USD Nov Nov-15 Global Contrarian Fund AA USD Nov Nov-15 Global Contrarian Fund HI USD Nov-15 Global Contrarian Fund I2 USD Nov Nov-15 Global Contrarian Fund I3 USD Nov Nov-15 Global Contrarian Fund S SGD Nov Nov-15 Global Equity Fund A USD Nov Nov-15 Global Equity Fund AA USD Nov-16 Global Property Fund AA USD Nov Nov-15 Global Property Fund AA (HKD) HKD Nov Nov-15 Global Property Fund I3 USD Nov-16 Global Resources Fund AA USD Nov-16 Global Resources Fund I3 USD Nov-16 Greater China Opportunities Fund AA USD Nov-15 Greater China Opportunities Fund I USD Nov Nov-15 Greater China Opportunities Fund I3 USD Nov-15 Healthcare Fund I3 USD Nov-15 India Equity Fund I2 USD Nov-15 Japanese Growth Fund A USD Nov Nov-15 Japanese Growth Fund AA USD Nov Nov-15 Japanese Growth Fund I3 USD Nov Nov-15 Latin America Equity Fund AA USD Nov Nov-15 MANULIFE GLOBAL FUND 264

267 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Dividend policy (continued) Name of Sub-Funds Class Currency For the year ended 30 June 2017 Dividend Distribution Per Share Date For the year ended 30 June 2016 Dividend Distribution Per Share Date Russia Equity Fund AA USD Nov Nov-15 Strategic Income Fund AA USD Nov Nov-15 Strategic Income Fund HA USD Nov-15 Strategic Income Fund HC USD Nov-15 Strategic Income Fund HI USD Nov-15 Strategic Income Fund I2 USD Nov Nov-15 Strategic Income Fund S Hedged SGD Nov Nov-15 Taiwan Equity Fund AA USD Nov Nov-15 Turkey Equity Fund AA USD Nov-16 U.S. Bond Fund AA USD Nov Nov-15 U.S. Bond Fund AA Inc USD Nov Nov-15 U.S. Bond Fund AA (HKD) HKD Nov Nov-15 U.S. Bond Fund AA (HKD) Inc HKD Nov-15 U.S. Bond Fund HA USD Nov-15 U.S. Bond Fund HC USD Nov-15 U.S. Bond Fund HI USD Nov-15 U.S. Bond Fund I USD Nov Nov-15 U.S. Bond Fund I3 USD Nov Nov-15 U.S. Small Cap Equity Fund I3 USD Nov-15 U.S. Special Opportunities Fund AA USD Nov Nov-15 U.S. Special Opportunities Fund AA Inc USD Nov-15 U.S. Special Opportunities Fund I USD Nov Nov-15 U.S. Special Opportunities Fund I3 USD Nov-16 U.S. Special Opportunities Fund T USD Nov Nov-15 U.S. Treasury Inflation-Protected Securities Fund I3 USD Nov-16 Monthly Dividend Asia Total Return Fund AA Inc USD Jul Jul-15 Asia Total Return Fund AA (HKD) Inc HKD Jul Jul-15 Asia Total Return Fund HA USD Jul-15 Asia Total Return Fund HC USD Jul-15 Asia Total Return Fund HI USD Jul-15 Asia Total Return Fund AA Inc USD Aug Aug-15 Asia Total Return Fund AA (HKD) Inc HKD Aug Aug-15 Asia Total Return Fund HA USD Aug-15 Asia Total Return Fund HC USD Aug-15 Asia Total Return Fund HI USD Aug-15 Asia Total Return Fund AA Inc USD Sep Sep-15 Asia Total Return Fund AA (HKD) Inc HKD Sep Sep-15 Asia Total Return Fund HA USD Sep-15 Asia Total Return Fund HC USD Sep-15 Asia Total Return Fund HI USD Sep-15 Asia Total Return Fund AA Inc USD Oct Oct-15 Asia Total Return Fund AA (HKD) Inc HKD Oct Oct-15 Asia Total Return Fund HA USD Oct-15 Asia Total Return Fund HC USD Oct-15 Asia Total Return Fund HI USD Oct-15 Asia Total Return Fund AA Inc USD Nov Nov-15 Asia Total Return Fund AA (HKD) Inc HKD Nov Nov-15 Asia Total Return Fund HA USD Nov-15 Asia Total Return Fund HC USD Nov-15 Asia Total Return Fund HI USD Nov-15 Asia Total Return Fund AA Inc USD Dec Dec-15 Asia Total Return Fund AA (HKD) Inc HKD Dec Dec-15 Asia Total Return Fund HA USD Dec-15 Asia Total Return Fund HC USD Dec-15 Asia Total Return Fund HI USD Dec MANULIFE GLOBAL FUND

268 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Dividend policy (continued) Name of Sub-Funds Class Currency For the year ended 30 June 2017 Dividend Distribution Per Share Date For the year ended 30 June 2016 Dividend Distribution Per Share Date Asia Total Return Fund AA Inc USD Jan Jan-16 Asia Total Return Fund AA (HKD) Inc HKD Jan Jan-16 Asia Total Return Fund HA USD Jan-16 Asia Total Return Fund HC USD Jan-16 Asia Total Return Fund HI USD Jan-16 Asia Total Return Fund AA Inc USD Feb Feb-16 Asia Total Return Fund AA (HKD) Inc HKD Feb Feb-16 Asia Total Return Fund AA Inc USD Mar Mar-16 Asia Total Return Fund AA (HKD) Inc HKD Mar Mar-16 Asia Total Return Fund AA Inc USD Apr Apr-16 Asia Total Return Fund AA (HKD) Inc HKD Apr Apr-16 Asia Total Return Fund AA Inc USD May May-16 Asia Total Return Fund AA (HKD) Inc HKD May May-16 Asia Total Return Fund AA Inc USD Jun Jun-16 Asia Total Return Fund AA (HKD) Inc HKD Jun Jun-16 Asia Value Dividend Equity Fund AA Inc USD Jul Jul-15 Asia Value Dividend Equity Fund AA Inc USD Aug Aug-15 Asia Value Dividend Equity Fund AA Inc USD Sep Sep-15 Asia Value Dividend Equity Fund AA Inc USD Oct Oct-15 Asia Value Dividend Equity Fund AA Inc USD Nov Nov-15 Asia Value Dividend Equity Fund AA Inc USD Dec Dec-15 Asia Value Dividend Equity Fund AA Inc USD Jan Jan-16 Asia Value Dividend Equity Fund AA Inc USD Feb Feb-16 Asia Value Dividend Equity Fund AA Inc USD Mar Mar-16 Asia Value Dividend Equity Fund AA Inc USD Apr Apr-16 Asia Value Dividend Equity Fund AA Inc USD May May-16 Asia Value Dividend Equity Fund AA Inc USD Jun Jun-16 Strategic Income Fund HA USD Jul-15 Strategic Income Fund HC USD Jul-15 Strategic Income Fund HI USD Jul-15 Strategic Income Fund S Hedged SGD Jul Jul-15 Strategic Income Fund HA USD Aug-15 Strategic Income Fund HC USD Aug-15 Strategic Income Fund HI USD Aug-15 Strategic Income Fund S Hedged SGD Aug Aug-15 Strategic Income Fund HA USD Sep-15 Strategic Income Fund HC USD Sep-15 Strategic Income Fund HI USD Sep-15 Strategic Income Fund S Hedged SGD Sep Sep-15 Strategic Income Fund HA USD Oct-15 Strategic Income Fund HC USD Oct-15 Strategic Income Fund HI USD Oct-15 Strategic Income Fund S Hedged SGD Oct Oct-15 Strategic Income Fund HA USD Nov-15 Strategic Income Fund HC USD Nov-15 Strategic Income Fund HI USD Nov-15 Strategic Income Fund S Hedged SGD Nov Nov-15 Strategic Income Fund HA USD Dec-15 Strategic Income Fund HC USD Dec-15 Strategic Income Fund HI USD Dec-15 Strategic Income Fund S Hedged SGD Dec Dec-15 Strategic Income Fund HA USD Jan-16 Strategic Income Fund HC USD Jan-16 Strategic Income Fund HI USD Jan-16 Strategic Income Fund S Hedged SGD Jan Jan-16 Strategic Income Fund S Hedged SGD Feb Feb-16 Strategic Income Fund S Hedged SGD Mar Mar-16 Strategic Income Fund S Hedged SGD Apr Apr-16 Strategic Income Fund S Hedged SGD May May-16 Strategic Income Fund S Hedged SGD Jun Jun-16 MANULIFE GLOBAL FUND 266

269 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Dividend policy (continued) Name of Sub-Funds Class Currency For the year ended 30 June 2017 Dividend Distribution Per Share Date For the year ended 30 June 2016 Dividend Distribution Per Share Date U.S. Bond Fund AA Inc USD Jul Jul-15 U.S. Bond Fund AA (HKD) Inc HKD Jul Jul-15 U.S. Bond Fund HA USD Jul-15 U.S. Bond Fund HC USD Jul-15 U.S. Bond Fund HI USD Jul-15 U.S. Bond Fund AA Inc USD Aug Aug-15 U.S. Bond Fund AA (HKD) Inc HKD Aug Aug-15 U.S. Bond Fund HA USD Aug-15 U.S. Bond Fund HC USD Aug-15 U.S. Bond Fund HI USD Aug-15 U.S. Bond Fund AA Inc USD Sep Sep-15 U.S. Bond Fund AA (HKD) Inc HKD Sep Sep-15 U.S. Bond Fund HA USD Sep-15 U.S. Bond Fund HC USD Sep-15 U.S. Bond Fund HI USD Sep-15 U.S. Bond Fund AA Inc USD Oct Oct-15 U.S. Bond Fund AA (HKD) Inc HKD Oct Oct-15 U.S. Bond Fund HA USD Oct-15 U.S. Bond Fund HC USD Oct-15 U.S. Bond Fund HI USD Oct-15 U.S. Bond Fund AA Inc USD Nov Nov-15 U.S. Bond Fund AA (HKD) Inc HKD Nov Nov-15 U.S. Bond Fund HA USD Nov-15 U.S. Bond Fund HC USD Nov-15 U.S. Bond Fund HI USD Nov-15 U.S. Bond Fund AA Inc USD Dec Dec-15 U.S. Bond Fund AA (HKD) Inc HKD Dec Dec-15 U.S. Bond Fund HA USD Dec-15 U.S. Bond Fund HC USD Dec-15 U.S. Bond Fund HI USD Dec-15 U.S. Bond Fund AA Inc USD Jan Jan-16 U.S. Bond Fund AA (HKD) Inc HKD Jan Jan-16 U.S. Bond Fund HA USD Jan-16 U.S. Bond Fund HC USD Jan-16 U.S. Bond Fund HI USD Jan-16 U.S. Bond Fund AA Inc USD Feb Feb-16 U.S. Bond Fund AA (HKD) Inc HKD Feb Feb-16 U.S. Bond Fund AA Inc USD Mar Mar-16 U.S. Bond Fund AA (HKD) Inc HKD Mar Mar-16 U.S. Bond Fund AA Inc USD Apr Apr-16 U.S. Bond Fund AA (HKD) Inc HKD Apr Apr-16 U.S. Bond Fund AA Inc USD May May-16 U.S. Bond Fund AA (HKD) Inc HKD May May-16 U.S. Bond Fund AA Inc USD Jun Jun-16 U.S. Bond Fund AA (HKD) Inc HKD Jun Jun-16 U.S. Special Opportunities Fund AA Inc USD Jul Jul-15 U.S. Special Opportunities Fund T USD Jul Jul-15 U.S. Special Opportunities Fund AA Inc USD Aug Aug-15 U.S. Special Opportunities Fund T USD Aug Aug-15 U.S. Special Opportunities Fund AA Inc USD Sep Sep-15 U.S. Special Opportunities Fund T USD Sep Sep-15 U.S. Special Opportunities Fund AA Inc USD Oct Oct-15 U.S. Special Opportunities Fund T USD Oct Oct-15 U.S. Special Opportunities Fund AA Inc USD Nov Nov-15 U.S. Special Opportunities Fund T USD Nov Nov-15 U.S. Special Opportunities Fund AA Inc USD Dec Dec-15 U.S. Special Opportunities Fund T USD Dec Dec-15 U.S. Special Opportunities Fund AA Inc USD Jan Jan-16 U.S. Special Opportunities Fund T USD Jan Jan-16 U.S. Special Opportunities Fund AA Inc USD Feb Feb MANULIFE GLOBAL FUND

270 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Dividend policy (continued) Name of Sub-Funds Class Currency For the year ended 30 June 2017 Dividend Distribution Per Share Date For the year ended 30 June 2016 Dividend Distribution Per Share Date U.S. Special Opportunities Fund T USD Feb Feb-16 U.S. Special Opportunities Fund AA Inc USD Mar Mar-16 U.S. Special Opportunities Fund T USD Mar Mar-16 U.S. Special Opportunities Fund AA (HKD) Inc HKD Mar-17 U.S. Special Opportunities Fund AA Inc USD Apr Apr-16 U.S. Special Opportunities Fund T USD Apr Apr-16 U.S. Special Opportunities Fund AA Inc USD May May-16 U.S. Special Opportunities Fund T USD May May-16 U.S. Special Opportunities Fund AA (HKD) Inc HKD May-17 U.S. Special Opportunities Fund AA Inc USD Jun Jun-16 U.S. Special Opportunities Fund T USD Jun Jun-16 Quarterly Dividend Asia Total Return Fund J USD Jul Jul-15 Asia Total Return Fund J USD Oct Oct-15 Asia Total Return Fund J USD Jan Jan-16 Asia Total Return Fund J USD Apr Apr-16 6 Changes in the Portfolio of Investments The detail of all transactions on portfolio of investments over the period is available from Citibank Europe plc, Luxembourg Branch, the Company s administrative agent, upon request. 7 Financial instruments Forward foreign exchange contracts The Company has entered into forward foreign exchange contracts as hedges against fluctuations in foreign exchange rates. As at 30 June 2017, the Company has outstanding forward foreign exchange contracts as follows: Asia Total Return Fund Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date Appreciation/ (Depreciation) (USD) 1,000,000,000 KRW 876,040 USD Australia New Zealand Bank 25-Jul-17 (1,770) 983,428 USD 1,300,000 AUD Australia New Zealand Bank 25-Jul-17 (15,672) 1,329,829 USD 1,840,000 NZD Australia New Zealand Bank 25-Jul-17 (17,431) 1,916,884 USD 2,662,360 SGD Australia New Zealand Bank 25-Jul-17 (18,136) 4,160,700 USD 4,749,980,000 KRW Australia New Zealand Bank 25-Jul-17 7,933 Total net unrealised depreciation on forward foreign exchange contract (45,076) Global Contrarian Fund Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date Appreciation/ (Depreciation) (USD) 1,185,000 EUR 1,356,493 USD HSBC New York 20-Sep-17 3,292 52,224,960 JPY 464,456 USD Goldman Sachs 20-Sep-17 2,971 1,335,957 USD 1,185,000 EUR HSBC New York 20-Sep-17 (23,723) 476,149 USD 52,224,960 JPY Goldman Sachs 20-Sep-17 8,690 Total net unrealised depreciation on forward foreign exchange contract (8,770) MANULIFE GLOBAL FUND 268

271 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Financial instruments (continued) Forward foreign exchange contracts (continued) Global Equity Fund Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date Appreciation/ (Depreciation) (USD) 326,406,000 JPY 2,902,847 USD Goldman Sachs 20-Sep-17 18,571 8,510,000 EUR 9,741,567 USD HSBC New York 20-Sep-17 23,641 2,975,930 USD 326,406,000 JPY Goldman Sachs 20-Sep-17 54,312 9,594,089 USD 8,510,000 EUR HSBC New York 20-Sep-17 (170,366) Total net unrealised depreciation on forward foreign exchange contract (73,842) Strategic Income Fund Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date Appreciation/ (Depreciation) (USD) 695 USD 960 SGD Citibank London 31-Jul-17 (3) 180,000 USD 248,433 SGD HSBC New York 20-Sep-17 (722) 361,763 USD 278,575 GBP HSBC New York 20-Sep-17 (612) 2,637,929 USD 3,666,693 NZD State Street Corp 20-Sep-17 (44,100) 145,433 USD 129,000 EUR HSBC New York 20-Sep-17 (2,583) 245,421 USD 1,618,685 DKK Citibank New York 20-Sep-17 (4,415) 3,190,643 USD 4,237,242 AUD Australia New Zealand Bank 20-Sep-17 (63,612) 58,652 USD 508,687 SEK Citibank New York 20-Sep-17 (1,979) 2,143,661 USD 2,960,396 SGD Standard Chartered Bank 20-Sep-17 (9,869) New York 12,251 USD 16,991 SGD Citibank London 31-Jul-17 (100) 12,522 USD 17,362 SGD Citibank London 31-Jul-17 (98) 4,880 USD 6,765 SGD Citibank London 31-Jul-17 (38) 11,665 USD 16,141 SGD Citibank London 31-Jul-17 (67) 129,000 EUR 144,316 USD Royal Bank of 20-Sep-17 3,711 Canada Toronto 145,695 SGD 105,000 USD Goldman Sachs 20-Sep ,944 SGD 90,000 USD Goldman Sachs 20-Sep ,292 SGD 24,054 USD Citibank London 31-Jul ,060,042 SGD 10,156,671 USD Citibank London 31-Jul-17 63,391 4,000 SGD 2,885 USD Citibank London 31-Jul ,628 USD 17,395 SGD Citibank London 31-Jul-17 (16) Total net unrealised depreciation on forward foreign exchange contract (59,068) 269 MANULIFE GLOBAL FUND

272 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Financial instruments (continued) Financial future contracts As at 30 June 2017, the Company has outstanding financial futures contracts as follows: Asia Total Return Fund Maturity Date Short quantity Contract Trade Counterparty Currency Type of collateral Commitment (in Trade currency) Local Market Price (in Trade currency) Unrealised Depreciation (USD) 20-Sep-17 (34) 10 Year US Treasury Note Future (CBT) UBS London USD Cash 4,277, ,719 Total net unrealised appreciation on financial future contract 1,719 The amount of collateral delivered for futures contract by the Asia Total Return Fund amounted to USD 44,200 (counterparty: UBS). Strategic Income Fund Maturity Date Short quantity Contract Trade Counterparty Currency Type of collateral Commitment (in Trade currency) Local Market Price (in Trade currency) Unrealised Depreciation (USD) 20-Sep-17 (40) 10 Year US Treasury Note Future (CBT) 20-Sep-17 (4) 20 Year US Long Bond (CBT) 29-Sep-17 (19) 5 Year US Treasury Note Future (CBT) Morgan Stanley USD Cash 5,032, (2,443) Morgan Stanley USD Cash 617, (7,876) Morgan Stanley USD Cash 2,242, ,188 Total net unrealised depreciation on financial future contract (9,131) The amount of collateral received for futures contract by the Strategic Income Fund amounted to USD 118,950 (counterparty: Morgan Stanley). Options As at 30 June 2017, the Company has outstanding options contract as follows: Strategic Income Fund Description Maturity Date Currency Contracts Counter party Strike Price Market value (USD) Unrealised Depreciation (USD) FX option USD/JPY 15-Nov-17 USD 590,000 UBS London (10,380) Total net unrealised depreciation on option contract (10,380) MANULIFE GLOBAL FUND 270

273 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Related Party Disclosures All transactions with related parties were entered into in the ordinary course of business and under normal commercial terms. For the year ended 30 June 2017, the main related parties of the Company are the following: Manulife Asset Management International Holdings Limited in its capacities as the General Adviser and Distributor; The Investment Managers and Sub-Investment Managers; GFM Holdings (Cyprus) Limited a wholly-owned subsidiary incorporated in Cyprus for which Emerging Eastern Europe Fund and Russia Equity Fund may invest in the Russian market through. The General Adviser and Distributor, the Investment Managers and the Sub-Investment Managers may be members of the Manulife Group. The transactions with Manulife Group are the following: Management fees and performance fees charged by the General Adviser (please refer to Note 3.1 and 3.2); On-going fees paid by Manulife Asset Management (Hong Kong) Limited and later reimbursed by the Company for USD 4,838; Subscriptions and redemption of units in the sub-funds from seed capital, insurance schemes and feeder funds owned by Manulife Group. In order to enable GFM Holdings (Cyprus) Limited to seek to achieve the investment objective of the Emerging Eastern Europe Fund and Russia Equity Fund, Manulife Global Fund engages in lending to GFM Holdings (Cyprus) Limited through an unsecured interest bearing, non recourse, multi currency loan facility. There are no existing or proposed service contracts between any of the Directors and the Company. The Directors are entitled to such remuneration as may be voted to them by the Company in general meetings. 271 MANULIFE GLOBAL FUND

274 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June Subsequent events The following dividends in respect of the current year were distributed to Shareholders after the period ended 30 June 2017: Name of Sub-Funds Class Currency Monthly Dividend Dividend Per Share Distribution Date Asia Total Return Fund AA Inc USD Jul-17 Asia Total Return Fund AA (HKD) Inc HKD Jul-17 Asia Total Return Fund AA Inc USD Aug-17 Asia Total Return Fund AA (HKD) Inc HKD Aug-17 Asia Total Return Fund AA Inc USD Sep-17 Asia Total Return Fund AA (HKD) Inc HKD Sep-17 Asia Value Dividend Equity Fund AA Inc USD Jul-17 Asia Value Dividend Equity Fund AA Inc USD Aug-17 Asia Value Dividend Equity Fund AA Inc USD Sep-17 Strategic Income Fund S Hedged SGD Jul-17 Strategic Income Fund S Hedged SGD Aug-17 Strategic Income Fund S Hedged SGD Sep-17 U.S. Bond Fund AA Inc USD Jul-17 U.S. Bond Fund AA (HKD) Inc HKD Jul-17 U.S. Bond Fund AA Inc USD Aug-17 U.S. Bond Fund AA (HKD) Inc HKD Aug-17 U.S. Bond Fund AA Inc USD Sep-17 U.S. Bond Fund AA (HKD) Inc HKD Sep-17 U.S. Special Opportunities Fund AA Inc USD Jul-17 U.S. Special Opportunities Fund T USD Jul-17 U.S. Special Opportunities Fund AA Inc USD Aug-17 U.S. Special Opportunities Fund T USD Aug-17 U.S. Special Opportunities Fund AA Inc USD Sep-17 U.S. Special Opportunities Fund T USD Sep-17 Quarterly Dividend Asia Total Return Fund J USD Jul-17 MANULIFE GLOBAL FUND 272

275 INFORMATION FOR SHAREHOLDERS GENERAL INFORMATION Authorised Status The Company qualifies as an undertaking for collective investment in transferable securities ( UCITS ) under Part I of the Law of 10 May 2016 of the Grand Duchy of Luxembourg. Dividend Payment When a dividend is declared at an Annual General Meeting: registered Shareholders who have requested that dividends of any sub-fund be re-invested automatically in further shares of the sub-fund will receive an appropriate number of additional shares. Such shares will be issued on the dealing day following the date of payment of the dividend. Shareholders should note that dividend re-investment represents a distribution of income and should be recorded as such on the Shareholders tax return; other registered Shareholders will be sent a cheque at the date of payment for the appropriate amount. 273 MANULIFE GLOBAL FUND

276 UNAUDITED SUPPLEMENTARY INFORMATION 1 Global Exposure The following sections indicate whether the UCITS global exposure is managed under a commitment approach or an absolute Value at Risk (absolute VaR) approach. For sub-funds managed under a VaR approach, additional information is provided on the VaR model, the regulatory VaR limit usage and the level of leverage reached 1. The following table sets out the relative approaches for the global exposure calculations of each sub-fund: Name of Sub-Funds Global Exposure Calculation Equity Funds: American Growth Fund Commitment Approach 2 ASEAN Equity Fund Commitment Approach Asia Value Dividend Equity Fund Commitment Approach Asian Equity Fund Commitment Approach Asian Small Cap Equity Fund Commitment Approach China Value Fund Commitment Approach Dragon Growth Fund Commitment Approach Emerging Eastern Europe Fund Commitment Approach European Growth Fund Commitment Approach Global Contrarian Fund Commitment Approach Global Equity Fund Commitment Approach Global Property Fund Commitment Approach Global Resources Fund Commitment Approach Greater China Opportunities Fund Commitment Approach Healthcare Fund Commitment Approach India Equity Fund Commitment Approach Japanese Growth Fund Commitment Approach Latin America Equity Fund Commitment Approach Russia Equity Fund Commitment Approach Taiwan Equity Fund Commitment Approach Turkey Equity Fund Commitment Approach U.S. Small Cap Equity Fund Commitment Approach Bond Funds: Asia Total Return Fund Commitment Approach Strategic Income Fund Absolute VaR Approach 3 U.S. Bond Fund Commitment Approach U.S. Special Opportunities Fund Commitment Approach U.S. Treasury Inflation-Protected Securities Fund Commitment Approach 1 In line with CSSF circular 11/512, the numerical information observation year cover the period from 1 July 2016 to 30 June The Commitment Approach is used for the sub-funds with low derivative usage or funds which limit their derivatives commitment to 100% or less of their Net Asset Value. 3 The Absolute VaR Approach is used for the sub-funds managed with an absolute return target and/or absolute volatility limit. MANULIFE GLOBAL FUND 274

277 UNAUDITED SUPPLEMENTARY INFORMATION 1 Global Exposure (continued) Information on the VaR Limit Usage & Level of Leverage The level of leverage is an indication of the derivative usage and of any leverage generated by the reinvestment of cash received as collateral when using efficient portfolio management techniques. Strategic Income Fund is the only sub-fund using Absolute VaR Approach. VaR limit utilization: Lowest 1 Day VaR: -0.41% Highest 1 Day VaR: -0.21% Average 1 Day VaR utilization limit: -0.27% Leverage level utilization (Sum of notionals): Highest Leverage level: % Average Leverage level: 90.79% Type of model: Barclays Point, a Fixed Income Risk Management Analytics tool. Unilateral confidence interval of 99% Holding period equivalent to 1 day Effective observation year from 1 July 2016 to 30 June Securities Financing Transaction Regulation The Securities Financing Transaction Regulation ( SFTR ) introduces reporting requirements for securities financing transactions ( SFTs ) and total return swaps. A SFT is defined as per Article 3 (11) of the SFTR as: a repurchase/reverse repurchase agreement; securities or commodities lending and securities or commodities borrowing; a buy-sell back transaction or sell-buy back transaction; or a margin lending transaction. As at 30 June 2017, the Company did not enter into transactions within the scope of the SFTR. 275 MANULIFE GLOBAL FUND

278 UNAUDITED SUPPLEMENTARY INFORMATION 3 Remuneration Disclosure This policy has been developed in consideration of: Directive 2009/65/EC ( UCITS Directive ), as amended by Directive 2014/91/EU ( UCITS V Directive ) European Securities and Markets Authority (ESMA) Consultation Paper Guidelines on sound remuneration policies under the UCITS Directive and AIFMD 2015/ESMA/1172, and the draft guidelines concerning the application of the remuneration principles under Article 14b of the UCITS Directive therein ( ESMA Guidelines ) 1 Draft bill of law N implementing the UCITS V Directive into Luxembourg laws. This policy aims to: ensure that remuneration 2 paid by MGF or any of its sub-funds is in line with the business strategy, objectives, values and interests of MGF and its sub-funds and of the investors in such sub-funds; ensure consistency with and promotion of sound and effective risk management to avoid excessive risk taking which is inconsistent with the risk profiles, rules or Articles of Incorporation of MGF and its sub-funds; and avoid or manage conflicts of interest. Remuneration Committee The requirement to establish a remuneration committee pursuant to Article 14b(4) of the UCITS Directive (as amended by the UCITS V Directive) is currently disapplied in respect of MGF, having taken into account the principle of proportionality set out in the ESMA Guidelines and the criteria relevant to the application of such principle: In taking measures to comply with the remuneration principles management companies should comply in a way and to the extent that is appropriate to their size, internal organization and the nature, scope and complexity of their activities Scope This policy applies to the following persons as identified staff 4 of MGF receiving remuneration from MGF or any of its sub-funds: The conducting officers (the Conducting Officers ) The members of the board of directors (the Directors ) The remuneration of both the Conducting Officers and the Directors is currently fixed, without any variable remuneration component. 5 1 The final ESMA Guidelines are not yet available as of the date of this policy. 2 As defined in the ESMA Guidelines. 3 See Sections 7 and 11.2 of the ESMA Guidelines. 4 As defined in the ESMA Guidelines. 5 Directors who are employees of Manulife Financial Corporation and its subsidiaries currently agree to waive their right to any Directors fees. The fixed remuneration amounts are disclosed under the caption Directors fees and expenses in the Statement of Operations. MANULIFE GLOBAL FUND 276

279 UNAUDITED SUPPLEMENTARY INFORMATION 3 Remuneration Disclosure (continued) Remuneration Committee (continued) 2. Remuneration of the Conducting Officers The remuneration of the Conducting Officers should reflect the responsibilities given their experience as a whole, the complexity of MGF and each sub-fund s investment strategy and objectives and their distribution strategy. The Board shall carry out an annual review of the Conducting Officers compensation, if necessary, to ensure that the proposed remuneration is in line with market rates for similar fund structures and also takes into account overall changes within MGF s activities. To conduct such reviews, the Board may set up a subcommittee including at least one independent Director and/or seek the assistance of external advisors or use information available from various external data sources. 3. Remuneration of the Board of Directors (the Board ) The remuneration of the Directors should reflect the responsibilities of the Board given their experience as a whole, the complexity of MGF and each sub-fund s investment strategy and objectives and their distribution strategy. The Board shall carry out an annual review of Directors compensation, if necessary, to ensure that the proposed remuneration is in line with market rates for similar fund structures and also takes into account overall changes within MGF s activities. To conduct such reviews, the Board may set up a subcommittee including at least one independent Director and/or seek the assistance of external advisors or use information available from various external data sources Compensation due and payable to Directors shall be proposed by the Board and submitted for approval by the Annual General Meeting of shareholders. Directors will be reimbursed for travelling expenses related to meetings and for any other expense necessarily incurred in relation to their function. Directors may also be entitled to reasonable professional training that is relevant for the conduct of their mandate subject to such training being approved by the Board. 4. Appointment of Investment Managers Any entity to whom: (i) investment management activities have been delegated by MGF; and (ii) whose professional activities (or those of its staff) have a material impact on the risk profiles of MGF and any of its sub-funds (a Delegated Investment Manager ), shall demonstrate that it is subject to regulatory requirements on remuneration that are equally as effective as those applicable under the ESMA Guidelines (including remuneration rules under either EU Directive 2013/36/EU (CRD IV) or Directive 2011/61/EU (AIFMD)). If a Delegated Investment Manager is not subject to the above-mentioned regulatory requirements, the remuneration policies applicable to such Delegated Investment Manager shall be further assessed and if deemed necessary, appropriate contractual or other appropriate arrangements shall be effected to ensure that there is no circumvention of the remuneration rules set out in the ESMA Guidelines and the UCITS V Directive. 277 MANULIFE GLOBAL FUND

280 UNAUDITED SUPPLEMENTARY INFORMATION 3 Remuneration Disclosure (continued) Remuneration Committee (continued) 5. Conflicts of Interest Possible conflicts of interest, criteria for the identification of conflicts of interest and measures implemented to avoid or manage conflicts of interest are described in further detail in MGF s Conflict of Interest Policy. 6. Disclosure Relevant and appropriate disclosure of the features of this Remuneration Policy will be made in line with applicable laws and regulations. 7. Monitoring and review The Board (as the management body of MGF) has delegated the supervisory function in respect of this Remuneration Policy to the Conducting Officers, who shall oversee and review this Remuneration Policy and its implementation on an annual basis and report on the outcome of such review to the Board. MANULIFE GLOBAL FUND 278