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Manulife Preferred Securities Income Fund

Facing challenges in volatile markets?

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Compelling, high-quality yields

Learn more

Manulife Preferred Securities Income Fund

Learn more

Facing challenges in volatile markets?

In the face of the challenge of market volatility, an income-oriented asset class, specifically preferred securities which cover debt instrument and equities, may help you to attain stable income potential.

Preferred securities are usually issued by large and highly regulated institutions. They rank between traditional bonds and common stocks in the capital structure of a corporate, with an average credit rating that reaches investment grade (IG) rating.

Priority of dividends and claims

Preferred securities' rating1

Compelling, high-quality yields

Preferred securities offer the attractive combination of a relatively high yield and elevated quality. The issuers with higher quality also have a lower default rate when compared with high-yield bonds.

Fig. 1 Yields & credit rating of fixed income assets2

Fig. 2 10-year average default rates (2009 – 2018)3

Manulife Preferred Securities Income Fund

Aim to deliver an attractive monthly distribution yield with potential capital growth

Seeks balanced sector positioning through strong fundamental research5

Manulife's investment​ expertise6

Learn more: Download fund brochure

Manulife Preferred Securities Income Fund

Important Notes:
  1. Manulife Global Fund – Preferred Securities Income Fund (“Manulife Preferred Securities Income Fund” or the “Fund”) invests primarily in preferred securities listed or traded on any regulated market in the world, including preferred stocks (including convertible preferred stocks) and subordinated debt securities, which exposes investors to fixed income and equity market risk, volatility and liquidity risk and currency risk. As the Fund may carry significant exposure to US-related issuers it may expose investors to geographical concentration risk.
  2. The Fund’s investment in fixed income and cash and cash equivalents is subject to credit risk, interest rate risk, credit rating and downgrading risk and high-yield bonds risk.
  3. The relevant distributing class of the Fund does not guarantee distribution of dividends, the frequency of distribution and the amount/rate of dividends. Dividends may be paid out of income, realised capital gains and/or out of capital of the Fund in respect of Inc share class(es). Dividends may be paid out of realised capital gains, capital and/or gross income while charging all or part of their fees and expenses to capital (i.e. payment of fees and expenses out of capital) in respect of MDIST (G) and R MDIST (G) share class(es). Dividends paid out of capital of the Fund amounts to a return or withdrawal of part of the amount of an investor’s original investment or from any capital gains attributable to that original investment and may result in an immediate decrease in the net asset value per share in respect of such class(es) of the Fund.
  4. The Investment Manager may from time-to-time use FDIs for the purposes of efficient portfolio management and/or hedging. This exposes the Fund to additional risks including volatility risk, management risk, market risk, credit risk and liquidity risk.
  5. Investment involves risk. The Fund may expose its investors to capital loss. Investors should not make decisions based on this material alone and should read the offering document for details, including the risk factors, charges and features of the Fund and its share classes.
  6. Given RMB is currently not a freely convertible currency, payment of redemptions and/or dividend payment in RMB may be delayed due to the exchange controls and restrictions applicable to RMB. As offshore RMB (CNH) will be used for the valuation of RMB denominated Class(es), CNH rate may be at a premium or discount to the exchange rate for onshore RMB (CNY) and there may be significant bid and offer spreads and thus the value of the RMB denominated Class(es) will be subject to fluctuation. Any devaluation of RMB could adversely affect the value of investors’ investments in the RMB denominated Class(es) of the Fund.
I have read and understood the above information
Source:
  1. Bloomberg, Manulife Investment Management, as of 30 November 2019. Preferred securities - ICE BofAML US All Capital Securities Index​.
  2. Bloomberg, Manulife Investment Management, as of 30 November 2019. ICE BofAML indices yield to maturity. US HY bonds - ICE BofAML US High Yield Index; Preferred securities - ICE BofAML US All Capital Securities Index; EM USD debts - ICE BofAML US Emerging Markets External Sovereign Index; US IG corp bonds - ICE BofAML US Corporate Index; US treasuries – ICE BofAML US Treasury & Agency Index; Global bonds - ICE BofAML Global Broad Market Index. For illustrative purposes only. Past performance is not an indication of future results. The above yield to maturity does not represent the distribution yield of the Fund and is not an accurate reflection the actual return that an investor will receive in all cases. A positive distribution yield does not imply a positive return.​
  3. Bloomberg and Moody’s Investor Services, as of 31 December 2018. Preferred securities default rate is calculated for the USD 25 par preferred securities market.​
  4. Manulife Investment Management, as of 9 January 2020, refers only to Class AA (USD) MDIST(G). Annualised yield = [(1+distribution per unit/ex-dividend NAV) distribution frequency per annum]–1, the annualised dividend yield is calculated on the​ basis of the latest relevant dividend distribution and dividend reinvested, and may be higher or lower than the actual annual dividend yield. Please note that dividend is not guaranteed, and a positive dividend yield does not imply a positive return.​
  5. Remark: For illustrative purposes only.​
  6. Manulife Investment Management. Data as of 30 September 2019.​
Disclaimer

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. This material, intended for the exclusive use by the recipients who are allowable to receive this document under the applicable laws and regulations of the relevant jurisdictions, was produced by and the opinions expressed are those of Manulife Investment Management as of the date of writing and are subject to change. The information and/or analysis contained in this material have been compiled or arrived at from sources believed to be reliable but Manulife Investment Management does not make any representation as to their accuracy, correctness, usefulness or completeness and does not accept liability for any loss arising from the use hereof or the information and/or analysis contained herein. Information about the portfolio’s holdings, asset allocation, or country diversification is historical and is not an indication of future portfolio composition, which will vary. Neither Manulife Investment Management or its affiliates, nor any of their directors, officers or employees shall assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained herein.

The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be significantly different than that shown here. The information in this material including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. This material was prepared solely for informational purposes and does not constitute a recommendation, professional advice, an offer, solicitation or an invitation by or on behalf of Manulife Investment Management to any person to buy or sell any security. This material should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any investment products or to adopt any investment strategy. Nothing in this material constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you. Past performance is not an indication of future results.

Investment involves risk. Investors should not base on this material alone to make investment decisions and should read the offering document (if applicable) for details, including the risk factors, charges and features of any investment products.

Proprietary Information – Please note that this material must not be wholly or partially reproduced, distributed, circulated, disseminated, published or disclosed, in any form and for any purpose, to any third party without prior approval from Manulife Investment Management.

This material is issued by Manulife Investment Management (Asia), a division of Manulife Investment Management (Hong Kong) Limited.

This material has not been reviewed by the Securities and Futures Commission (SFC).

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