Key Information MANULIFE INCOME SERIES – ASIAN BALANCED

All info as at 31 December 2014 unless otherwise stated.
MANULIFE INCOME SERIES – ASIAN BALANCED FUND
Fund Objective
To provide medium to long term capital appreciation and
income by investing primarily into Asian ex Japan (equities
and bonds). The ILP Fund achieves this by investing all or
substantially all of its assets in the Schroder Asian Equity
Yield Fund and Schroder Asian Investment Grade Credit (the
“Underlying Funds”), which are both Singapore domiciled
open-ended unit trusts managed by Schroder Investment
Management (Singapore) Ltd (“Schroders”).
Fund Performance (S$ Bid-to-Bid returns)
FACTSHEET - December 2014
Asset Allocation
Net Asset Value = SGD 212.93 Million
Schroder Asian Equity Yield Fund
Schroder Asian Investment Grade Credit
Top 10 Holdings
Equities
60%
40%
SK TELECOM
JARDINE STRATEGIC
HKT TRUST AND HKT LIMITED
BRAMBLES LIMITED
TAIWAN SEMICONDUCTOR MANUFACTURING CO
3.92%
3.39%
3.31%
3.08%
3.06%
HUTCHISON WHAMPOA LIMITED
COMMONWEALTH BANK OF AUSTRALIA
JARDINE MATHESON HOLDINGS LIMITED
CHINA CONSTRUCTION BANK
LAND AND HOUSES PUBLIC COMPANY LIMITED
3.02%
3.00%
2.85%
2.74%
2.71%
Bonds
1.3
MAS BILLS SR 87 0% 23 FEB 2015
5.99%
CNPC GENERAL CAPITAL LTD SR REGS 2.75% 14 MAY 2019 2.66%
EXPORT-IMPORT BANK CHINA SR REGS 3.625% 31 JUL 2024 2.33%
HOUSING &DEVELOPMENT BRD SR REGS 2.365% 19 SEP
2018
2.28%
HOUSING &DEVELOPMENT BRD SR REGS 1.875% 13 NOV
2017
2.16%
AXIS BANK/DUBAI SR REGS 5.125% 05 SEP 2017
2.14%
OVERSEA-CHINESE BANKING SR REGS 4% 15 OCT 2024
2.04%
1.0
0.8
0.5
0.3
0.0
Apr-13 Jul-13 Oct-13 Jan-14 Apr-14 Jul-14 Oct-14
Benchmark
Manulife Income
Series – Asian
Balanced Fund (%)
40% CPFIS-OA + 100
basis points p.a. and
60% MSCI AC Pacific
Free ex Japan.(%)
1.77
2.06
8.61
N.A.
N.A.
N.A.
2.22
2.80
3.33
6.43
N.A.
N.A.
N.A.
7.61
3 mth
6 mth
1 yr
3 yr
5 yr
10 yr
Since Inception
Source: Manulife (Singapore) Pte. Ltd. • Performance are bid-to-bid
with income reinvested • Performance figures for 3 mth till 1 yr
show the % change, those exceeding 1 yr show the average
annual compounded return.
KOREA RESOURCES CORP SR REGS 2.125% 02 MAY 2018 1.98%
PTT EXPLOR & PRODUCT PCL SR REGS 4.875% 29 DEC
* Relates to holdings in Schroder Asian Equity Yield Fund
and
2049
1.82%
SchroderLTD
Investment
(‘Underlying Funds’). 1.78%
AMIPEACE
SR REGSGrade
2% 06Credit
DEC 2016
Fund Manager’s Comments
Equities
Asian equities finished the last quarter of 2014 slightly down,
with negative December returns offsetting the previous
months’ gains as sentiment was hit by the falling price of oil
and slowing global growth. Despite weakening economic data,
Chinese equities posted strong gains for the quarter, spurred
on by a November interest rate cut by the People’s Bank of
China (PBoC), the first one in two years. However, data
continue to show the economy struggling to maintain its pace
of expansion. Australia’s market declined over the quarter as
sluggish Chinese growth hit its large commodity export sector.
In Hong Kong, the market finished up as the end of disruptive
pro-democracy street protests ended while Taiwan’s market
also finished up as third quarter GDP growth came in at 3.6%.
Meanwhile, Korean stocks fell to a 10-month low over the
quarter on disappointing corporate earnings announcements
and the negative impact on Korean competitiveness of a
weaker Japanese yen.
In ASEAN, Thailand’s market fell as the economy posted
worse-than-expected third quarter GDP growth while the
Philippines saw its market advance on continued positive
sentiment surrounding its strong economy going into 2015.
Key Information
Launch Date
:
18 April 2013
Bid Price
Offer Price
:
:
Subscription
Price published In
Min Investment
:
:
:
S$0.9516
Management Fee :
1.35% p.a.
S$1.0017 @ 5% sales charge (RP plans) / S$ 0.9810 @ 3% sales charge (SP plans)
Bid-Offer Spread
:
3% (SP)
CPFIS-OA/SA/SRS/Cash
Dealing
:
Daily
The Straits Times, Business Times, Lianhe Zaobao, www.manulife.com.sg
S$5000 (single premium), S$500 (top-up)
Launch Price
:
S$1.00
Important Information: This report is prepared by Manulife (Singapore) Pte Ltd and is provided for information purposes only.
Past performance is not necessarily a guide to future performance.
Manulife (Singapore) Pte Ltd. A Manulife Financial company. Reg. No. 198002116D
51 Bras Basah Road #09-00 Manulife Centre, Singapore 189554 Tel: 6737 1221 Fax: 6737 8488 Website: www.manulife.com.sg
All info as at 31 December 2014 unless otherwise stated.
MANULIFE INCOME SERIES – ASIAN BALANCED FUND
Distribution Policy for the ILP Fund
This ILP Fund currently intends to provide a monthly distribution on
the 20th of each month (“Ex Distribution Date”), or the next Business
Day, if that day is not a Business Day, or such other dates as
Manulife (Singapore) Pte. Ltd. may in its absolute discretion
determine. Distributions are declared in cents per unit.
The making of such distribution may be determined by Manulife
(Singapore) Pte. Ltd. in its sole discretion, and will be made out of
either (i) income; or (ii) net capital gains; or (iii) capital of the Fund or
a combination of any of (i), (ii) and (iii). There is no guarantee,
assurance and/or certainty that any distribution will be made and if
distributions are made, such distributions are not in any way a
forecast, indication or projection of the future or likely performance/
distribution of the ILP Fund. The making of any distributions shall
not be taken to imply that future distributions will be made. Manulife
(Singapore) Pte. Ltd. may also vary the frequency and/ or the
amount of the distributions made. When distributions are declared
and paid out with respect to the ILP Fund, the net assets of the ILP
Fund will reduce by an amount equivalent to the distributions
declared. This will be reflected as a reduction in the unit price.
Declaration of Distribution
Ex Distribution Date
Distribution Declared
(per unit)
20 August 2013
20 September 2013
21 October 2013
20 November 2013
20 December 2013
20 January 2014
20 February 2014
21 March 2014
21 April 2014
20 May 2014
20 June 2014
21 July 2014
20 August 2014
22 September 2014
20 October 2014
20 November 2014
22 December 2014
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
S$0.003
FACTSHEET - December 2014
Fund Manager’s Comments (Continue)
In Indonesia, the market gained on the pro-reform moves of
President Joko Widodo, who raised government-subsidised
petrol prices by 30%, which should benefit the country’s
current account deficit. In India, stocks fell over the period as
investors pulled money out of emerging market assets in
December on worries over the falling price of oil and sluggish
global growth.
Bonds
The final quarter of 2014 presented a number of challenges
to fixed income investors. Though fixed income broadly
generated positive returns, bouts of elevated volatility led to
riskier assets underperforming perceived safe havens.
Persistent policy accommodation from the world’s major
central banks, as well as sustained weakness in the oil price,
was the principal driver of returns for fixed income markets.
During the period (4Q 2014), both the Asian USD credit
markets and the Asian USD investment grade credit markets
returned +1.4% and +1.6% respectively, supported mostly
by lower US Treasury yields (10 year yield declined by
32bps to 2.2%), which was partly offset by wider credit
spreads (+4 bps for JACI investment grade credits and +13
bps for JACI).
In the quarter ending Q4 2014, the fund returned 0.3%*. The
fund started the quarter strongly to deliver positive returns of
0.2% and 0.3% in October and November which was offset
by the negative return in December (-0.2%) which was a
torrid month for financial markets.
The key contributor to performance was largely due to fall in
USD government bond yields, with allocations to Singapore
and China contributing positively to performance while
allocation to Hong Kong, Thailand detracted. We maintained
a conservative interest rate duration stance of around 2.3 –
2.5 years and as such the fund benefited less from the
decline in US Treasury yields.
Our investment outlook as we head into 2015, is predicated
in countries who will reap the benefits of 1) cheaper
commodity prices, which will reduce inflationary pressures, 2)
easier monetary policy, 3) foreign reserve accumulation, 4)
structural reform, and 5) comparatively stronger fiscal
balances relative to developed and other emerging market
peers. We have turned slightly cautious on Asian USD credit
markets, as US Treasuries are likely to experience a
challenging 2015, and corporate spreads are not as
attractive as they were during the first half of 2014. We think
idiosyncratic / corporate governance risks would continue,
and hence credit selection is important. We believe that
continued strong economic data and potentially higher US
inflation will force the US Federal Reserve’s hand into
signalling a rise in US interest rates.
Key Information
Launch Date
:
18 April 2013
Bid Price
Offer Price
:
:
Subscription
Price published In
Min Investment
:
:
:
S$0.9516
Management Fee :
1.35% p.a.
S$1.0017 @ 5% sales charge (RP plans) / S$ 0.9810 @ 3% sales charge (SP plans)
Bid-Offer Spread
:
3% (SP)
CPFIS-OA/SA/SRS/Cash
Dealing
:
Daily
The Straits Times, Business Times, Lianhe Zaobao, www.manulife.com.sg
S$5000 (single premium), S$500 (top-up)
Launch Price
:
S$1.00
Important Information: This report is prepared by Manulife (Singapore) Pte Ltd and is provided for information purposes only.
Past performance is not necessarily a guide to future performance.
Manulife (Singapore) Pte Ltd. A Manulife Financial company. Reg. No. 198002116D
51 Bras Basah Road #09-00 Manulife Centre, Singapore 189554 Tel: 6737 1221 Fax: 6737 8488 Website: www.manulife.com.sg

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