Manulife Investment Asia-Pacific REIT Fund Diversify with REITs for Capital Growth and Income Potential Access to a Diversified Portfolio of REITs Steady Income Return Potential Fund Management Expertise
Manulife Investment Asia-Pacific REIT Fund ( the Fund ) What are you investing in? The Fund aims to achieve long-term capital appreciation and sustainable income through investing primarily in real estate investment trusts (REITs) and infrastructure funds/trusts within Asia-Pacific. The Asian REITs market has grown exponentially since 2001 and typically offers attractive yield spreads over various fixed income securities. singapore Singapore REIT Market Cap (USD billion) 64.83 DPU* Yield (%) 5.35 Gov t 10Y Yield (%) 2.00 Yield Spread (bps) 334 Source: Bloomberg, as of 31 December 2017. *DPU = Distribution per unit hong kong Hong Kong REIT Market Cap (USD billion) australia Australia REIT Market Cap (USD billion) 35.63 DPU* Yield (%) 5.60 Gov t 10Y Yield (%) 1.83 Yield Spread (bps) 377 106.34 DPU* Yield (%) 4.87 Gov t 10Y Yield (%) 2.63 Yield Spread (bps) 224 What is a REIT? A REIT is a vehicle for investment in a portfolio of real estate assets, which is usually established to generate income for unit holders. REITs allow investors the opportunity to buy into a wide range of properties managed by professional property management companies, such as shopping malls, offices, industrial buildings or hotels. Rental income, capital gains and other income Majority income regularly distributed to investors Shopping malls, commercial offices, industrial buildings and hotels Owns income producing real estate REIT Pooling of investment capital Investors Provides property management services, runs day-to-day operations Optimise real estate portfolio returns and decide on property investments REIT and property management team
Advantages of REITs vs. Direct Rental Property Ownership Property Diversification REITs provide diversification in several ways. Some REITs hold properties in different geographical locations, providing insulation from a downturn in any particular area. They also diversify across building types, with many buying properties of different sizes and tenants. Professional Property Management A key and underappreciated feature of REITs is the quality of management. A good REIT is managed by professionals who have specialised experience in a particular pocket of the real estate market. This enables them to optimise property investment returns. Income and Asset Appreciation Potential REIT income is steady and reliable. REITs are typically required to pay out a majority of their cashflows to unit holders to enjoy tax benefits. Liquidity You can sell your ownership of REITs just like any other stock, and the commissions are the same. Sales are also nearly instantaneous. Why this Fund? Fund Management Expertise The Fund s investment process is underpinned by the Manulife Asset Management Equities team in Malaysia, which forms part of a network of approximately 100 investment professionals on-the-ground in 10 markets across Asia. Diversified Portfolio of REITs By investing into this Fund, investors can gain access to a well-diversified mix of high quality retail, commercial, hotels and industrial REIT holdings across Asia-Pacific. Manulife Investment Asia-Pacific REIT Fund - Subsector and Country Allocation Retail REITS 37.1% Asset Management & Custody Bank 1.1% Liquidity 2.5% Cash 0.5% Diversified REITS 14.7% Healthcare REITS 2.4% Industrial and Office REITS 36.2% Hotel and Resort REITS 5.6% Singapore 64.6% Hong Kong 19.3% Australia 8.6% Thailand 1.1% Malaysia 3.6% Liquidity 2.5% Cash 0.5% Source: Manulife Asset Management, Factset, as of 29 December 2017.
Stable Return The Fund s total return objective means that its steady income return is a defensive buffer to capital growth decline risks. 24% Manulife Investment Asia-Pacific REIT Fund - Total Return Breakdown 20% 19.3% 16% 15.6% 12% 8% 15.1% 13.7% 8.3% 12.5% 8.8% 10.1% 4% 0% 4.2% 5.4% 3.7% 5.5% 2014 2015 2016 2017 Total Return Price Return Proxy Dividend Return Source: Manulife Asset Management, Bloomberg, as at 29 December 2017. Strong Outperformance Our investment team s expertise in security selection and risk management has allowed the Fund to achieve exceptional performance against both benchmark and peers since inception. 140% Since Inception Cumulative Performance of Manulife Investment Asia-Pacific REIT Fund vs. Benchmark vs. Peers 120% 100% 80% 60% 40% 20% 0% -20% -40% -60% -80% Dec 2008 Jun 2008 Dec 2007 Jun 2007 Dec 2017 Jun 2017 Dec 2016 Jun 2016 Dec 2015 Jun 2015 Dec 2014 Jun 2014 Dec 2013 Jun 2013 Dec 2012 Jun 2012 Dec 2011 Jun 2011 Dec 2010 Jun 2010 Dec 2009 Jun 2009 +127% The Fund +62% Peer Median* -2% Benchmark Source: Manulife Asset Management, Lipper Global, NAV to NAV, return in MYR, data as of 31 December 2017. Benchmark represents Bloomberg Asia REIT ex Japan Index. * Peer Group: Lipper Global - Equity Sector Real Estate Asia Pacific, retail funds available for sale in Malaysia. Past performance is not indicative of future results.
Key Fund Information Name of the Fund The Manager Fund Category Fund Type Investment Objective Investors Profile Investment Style and Strategy Performance Benchmark Financial Year End Income Distribution Policy Manulife Investment Asia-Pacific REIT Fund ( the Fund ) Manulife Asset Management Services Berhad (834424-U) Fund-of-Funds Income and Growth The Fund aims to provide long-term capital appreciation and sustainable income through a combined investment in other collective investment schemes, namely REITs and infrastructure funds/trusts. The Fund is suitable for investors who wish to have investment exposure through a diversified portfolio of REITs and infrastructure funds/trusts within the Asia- Pacific region. The Fund may also appeal to investors who are seeking a sustainable distribution of income and long-term capital growth with a medium- to long-term investment horizon of between 3 and 5 years. The Fund invests in REITs and infrastructure funds/trusts that are listed on Asia-Pacific stock exchanges. The Fund focuses on REITs and infrastructure funds/trusts that display a potential for capital appreciation. The infrastructure funds/trusts focus primarily on but are not limited to utilities, transportation/logistics and communications. The Fund Manager focuses primarily on China, Hong Kong, Indonesia, South Korea, Malaysia, the Philippines, Singapore, Taiwan, Thailand and Australia. Manulife Investment Asia REIT Ex Japan Index 31 August Semi-annually, if any. Historical Distribution Financial Year Gross Distribution per Unit (Sen) Distribution Yield Predistribution NAV Postdistribution NAV 2018 1.47 3.09% MYR0.4551 MYR0.4447 This is the first semi-annual income distribution for financial year ending 31 August 2018. Source: Manulife Asset Management Services Berhad NAV: Net Asset Value Sales Charge per Unit Distribution Channels Maximum Sales Charge per Unit IUTA Agents The Manager Up to 5% of NAV per unit Up to 5% of NAV per unit Up to 5% of NAV per unit Annual Management Fee Annual Trustee Fee Minimum Initial Investment Minimum Additional Investment Cooling-off Period Up to 1.75% of NAV per annum Up to 0.06% of NAV RM1,000 RM500 Six (6) Business Days. (Please note that the cooling off period is applicable only to qualified investors)
About Manulife Asset Management Services Berhad Manulife Asset Management Services Berhad ( MAMSB ) is a wholly owned subsidiary of Manulife Holdings Berhad (listed on Bursa Malaysia), which is majority owned by Canada-based Manulife Financial Corporation. MAMSB offers a comprehensive range of 46 unit trust and PRS funds in the asset classes of equity, fixed income and money market. Since 2010, MAMSB has bagged 35 awards in total; with the three most significant house awards being won in 2017, namely the Best Overall Award Malaysia Provident for EPF-Approved Funds by The Edge Thomson Reuters Lipper Fund Awards, the Most Outstanding Islamic Asset Management Company by KLIFF Islamic Finance Awards and Top Investment House Malaysia - Rank 5 in Asian Local Currency Bonds by The Asset Benchmark Research Awards. Visit us online at manulifeinvestment.com.my. About Manulife Asset Management Manulife Asset Management is the global asset management arm of Manulife Financial Corporation ( Manulife ). We provide comprehensive asset management solutions for investors across a broad range of public and private asset classes, as well as asset allocation solutions. We also provide portfolio management for affiliated retail Manulife and John Hancock product offerings. Our investment solutions include public and private equity and fixed income, real estate and infrastructure equity and debt, timberland and farmland, oil and gas, renewable energy, and mezzanine financing. We operate in the United States, Canada, Brazil, the United Kingdom, New Zealand, Australia, Japan, Hong Kong, Singapore, Taiwan, Indonesia, Thailand, Vietnam, Malaysia, the Philippines, as well as through a China joint venture, Manulife TEDA. We also serve investors in select European, Middle Eastern, and Latin American markets. As at December 31, 2017, assets under management for Manulife Asset Management were approximately C$491 billion (US$392 billion, GBP 290 billion, EUR 327 billion). Additional information may be found at ManulifeAM.com. Disclaimer Investors are advised to read and understand the contents of the Master Prospectus dated 30 June 2017, the Supplemental Master Prospectus (if any) and the Product Highlights Sheet, obtainable at our offices, before investing. The Master Prospectus and Supplemental Master Prospectus (if any) have been registered with the Securities Commission Malaysia who takes no responsibility for its contents. Investors should also consider the fees and charges involved. The price of units and investment returns, may go down as well as up. Past performances of the Fund are not an indication of the Fund s future performance. Units will only be issued on receipt of the application form accompanying the Master Prospectus and Supplemental Master Prospectus (if any). There are risks involved with investing in the Fund. Some of these risks associated with investments in the Fund are market risk, fund management risk, management company risk, non-compliance risk, liquidity risk and loan financing risk. For further details on the risk profile of the Fund, please refer to the Risk Factors section of the Master Prospectus. Where a unit split/distribution is declared, investors are advised that following the issue of additional units/distribution, the NAV per unit will be reduced from pre-unit split NAV/cum-distribution NAV to post-unit split NAV/ex-distribution NAV. Manulife Asset Management Services Berhad (834424-U) HEAD OFFICE 13th Floor, Menara Manulife, 6, Jalan Gelenggang, Damansara Heights, 50490 Kuala Lumpur Tel: (03) 2719 9228 Fax: (03) 2094 7654 Email: MY_CustomerService@manulife.com www.manulifeinvestment.com.my BRANCH OFFICES DATARAN SUNWAY Tel: (03) 6140 8101/6140 8102 Fax: (03) 6140 8103 SHAH ALAM Tel: (03) 3362 6668 Fax: (03) 3362 6662 KLANG Tel: (03) 3318 6088 Fax: (03) 3318 4011 SEREMBAN Tel: (06) 671 5019 Fax: (06) 678 0016 SG. PETANI Tel: (04) 423 3233 Fax: (04) 423 3233 PENANG Tel: (04) 611 9944/618 0044 Fax: (04) 618 0505 IPOH Tel: (05) 541 6839 Fax: (05) 541 6627 MELAKA Tel: (06) 281 3866 Fax: (06) 282 0587 JOHOR BAHRU Tel: (07) 234 5871 Fax: (07) 234 4620 KOTA BHARU Tel: (09) 747 2388 Fax: (09) 747 2588 KOTA KINABALU Tel: (088) 486 671/486 672 Fax: (088) 486 670 SANDAKAN Tel: (089) 220 220/229 045 Fax: (089) 226 868 TAWAU Tel: (089) 775 707 Fax: (089) 775 709 KUCHING Tel: (082) 593 380 Fax: (082) 593 382 MIRI Tel: (085) 325 770 Fax: (085) 326 262 SIBU Tel: (084) 320 469 Fax: (084) 320 476 BINTULU Tel: (086) 343 288 Fax: (086) 343 289