Fixed income strategy:

Singapore dollar (SGD) income

Capture regional investment opportunities in SGD terms

Asian bonds have delivered attractive risk-adjusted returns

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Asia continues to deliver strong economic growth compared to the rest of the world

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Capture regional investment opportunities in SGD terms

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Asian bonds have delivered attractive risk-adjusted returns

Asian investment-grade corporate bonds (ex-Japan) and Asian high-yield corporate bonds (ex-Japan) offered better risk-adjusted returns than most asset classes.

10-year risk return¹

Chart of 10 year yields across Asia and Developed Markets

Source: Bloomberg, 31 March 2020. Data from 31 March 2010 to 31 March 2020. Returns are annualised in USD

Asia continues to deliver strong economic growth compared to the rest of the world

Asia is expected to remain the bright spot of the global economy, with GDP expected to grow at a steady pace ranging from 3% to 6% p.a. in 2020 to 2022.

GDP growth rates

Source: Bloomberg, Economic survey, 31 March 2020. *The information may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be significantly different than that shown here.

Capture regional investment opportunities in SGD terms

Singapore dollar (SGD) has been an attractive currency for investors due to its relative strength and stability. Against US dollar, SGD has historically been one of the least volatile currencies compared with those of other Asian markets². Even in times of market volatility, SGD has tended to hold up relatively better than many of its peers³ due to the perceived strength of the country’s economy and its government's robust policy effectiveness that help the country mitigate against external shocks.

Credit-rating agencies rate Singapore AAA/Aaa, their highest ratings, with a stable outlook⁴. This reflects the country's exceptionally strong external and fiscal balance sheets, higher per-capita income, favourable business environment and the government's sound macroeconomic policy framework. These factors have supported SGD over the long term.

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Sources:

1. Asian Investment Grade Corporate Bonds = JPMorgan Asian Credit Investment Grade Corporate Index; Asian High Yield Corporate Bonds = JPMorgan Asian Credit Non-Investment Grade Corporate Index; Emerging Market Debt (local) = JPMorgan GBI-EM Broad Index; Euro Government Bonds = BofA Merrill Lynch Euro Government Index; US Treasuries = BofA Merrill Lynch US Treasury Index; Global Aggregate Bonds = Bloomberg Barclays Global-Aggregate Total Return Index; Global Corporate Bonds = BofA Merrill Lynch Global Corporate Index; Global High Yield = BofA Merrill Lynch Global High Yield Index; Global Equities = MSCI World Index; US Equities = S&P 500 Index; Asian Equities (ex-Japan) = MSCI AC Asia Pacific excluding Japan Index; Real Estate = Dow Jones Composite REIT Total Return Index; Money Markets (cash) = BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Average Index. Past performance is not indicative of future results.

2. Bloomberg, as of 30 April 2020. Among the eight major Asian currencies (Singapore dollar, Chinese renminbi, Indonesian rupiah, Indian rupee, South Korean won, Malaysian ringgit, Thai Baht, and Philippine peso), Singapore dollar has the second-lowest volatility (standard deviation) at 5.58% p.a. against US dollar over 20 years to April 2020.

3. Bloomberg, as of 30 April 2020. Among the eight major Asian currencies (Singapore dollar, Chinese renminbi, Indonesian rupiah, Indian rupee, South Korean won, Malaysian ringgit, Thai Baht, and Philippine peso), Singapore dollar was ranked second during the Global Financial Crisis (March 2008–March 2009) and fourth during the market sell-off due to COVID-19 (March 2020), with returns against US dollar of -10.6% and -2.07% respectively. Past performance is not an indication of future results.

4. Moody’s Investors service, S&P, and Fitch, as of 8 May 2020. You are advised not to solely rely upon the ratings or rankings disclosed herein in making an investment decision. The ratings or rankings disclosed herein are current; the same may change in the future.

Disclaimers

The above information has not been reviewed by the SC and is subject to the relevant warning, disclaimer, qualification or terms and conditions stated herein. Investors are advised to read and understand the contents of the Master Prospectus dated 1 December 2018 and its First Supplemental Master Prospectus dated 1 April 2019; Prospectus of Manulife Asia Total Return Bond Fund dated 18 February 2019; Prospectus of Manulife Shariah Global REIT Fund dated 12 March 2019 and its First Supplemental Prospectus dated 12 March 2019; Information Memorandum of Manulife SGD Income Fund dated 11 February 2020; Information Memorandum of Manulife Global Multi-Asset Diversified Income Fund dated 3 February 2020 and all the respective Product Highlights Sheet(s) (collectively, the “Offering Documents”), obtainable at our offices or website, before investing. The Offering Documents have been registered with the Securities Commission Malaysia (SC), however the registration with the SC does not amount to nor indicate that the SC has recommended or endorsed the product. There are risks involved with investing in unit trust funds; wholesale funds and/or Private Retirement Schemes. Some of these risks associated with investments in unit trust funds; wholesale funds and/or Private Retirement Schemes are interest rate fluctuation risk, foreign exchange or currency risk, country risk, political risk, credit risk, non-compliance risk, counterparty risk, target fund manager risk, liquidity risk and interest rate risk. For further details on the risk profile of all the funds, please refer to the Risk Factors section in the Offering Documents. The price of units and income distribution may go down as well as up. Investors should compare and consider the fees, charges and costs involved. Investors are advised to conduct own risk assessment and consult the professional advisers if in doubt on the action to be taken. You are advised not to solely rely upon the ratings or rankings disclosed herein in making an investment decision. The ratings or rankings disclosed herein are current; the same may change in the future. Past performances are not an indication of future performances.

Manulife Investment Management (M) Berhad (Formerly known as Manulife Asset Management Services Berhad) Registration No: 200801033087 (834424-U) (hereinafter referred to as “Manulife IM (Malaysia)”) is a wholly owned subsidiary of Manulife Holdings Berhad and holds a Capital Markets Services License for fund management, dealing in securities restricted to unit trusts, dealing in private retirement schemes and financial planning under the Capital Markets and Services Act 2007. Manulife IM (Malaysia) operates under the brand name of Manulife Investment Management which is the global wealth and asset management segment of Manulife Financial Corporation. Information posted herein is intended for the exclusive use by the recipients who are allowed to receive it under the applicable laws and regulations of the relevant jurisdictions. Certain information in this post may contain projections or other forward-looking statements regarding future events, targets, management discipline, estimates or other development trends of financial markets. There is no assurance that such events will occur, and actual results may be significantly different from what is contained herein.

Information contained herein has been obtained and/or derived from sources believed to be reliable, Manulife IM (Malaysia) makes no representation as to its accuracy or completeness and expressly disclaims any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of this information or any information contained in third party website linked to this post. Neither Manulife IM (Malaysia) or its affiliates, nor any of their directors, officers or employees shall assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained herein. Investment involves risk, including the loss of principal. Investors should rely on their own evaluation to assess the merits and risk of the investment. In considering the investment or the information provided, investors who are in doubt as to the action to be taken should consult their professional adviser. The information provided herein is for information purposes only and should not be construed as and shall not form part of an offer or solicitation to buy or sell any unit trust funds/ wholesale funds/ private retirement schemes. Information contained herein may subject to change without prior notice and may not be reproduced, distributed or published by any recipient for any purpose.