Manulife unveils Strategic Income Fund

Underlying portfolio is now accessible to Singapore investors.

According to a release, Manulife Singapore launched Manulife Income Series - Strategic Income Fund.

This Fund seeks to provide income and capital appreciation through its underlying portfolio that allocates with flexibility to three fixed income sectors - U.S. government and agency securities, U.S. high yield bonds, and foreign government and corporate debt securities from both developed and emerging markets.

The Fund gives Singapore retail investors a gateway to access the underlying portfolio, which has a successful track record of delivering a positive cumulative return of over 43 per cent since its inception in September 2008
 
The Strategic Income Fund is the second offering in the Manulife Income Series of funds. The first was the Manulife Income Series – Singapore Fund, which was the first fund for an investment-linked plan (ILP) in the Singapore market to pay investors a monthly income.

The Manulife Income Series targets to meet the income needs of today’s retirees and those investors seeking a passive income.

Said Ms Annette King, President & CEO of Manulife Singapore: “As life expectancy increases, and as interest rates continue to plummet to historic lows, investors in Singapore who wish to protect their savings from inflation can do so through investments in incomepaying assets such as those held by the underlying portfolio of the Manulife Income Series - Strategic Income Fund. The Fund’s reflection of a multi-sector bond strategy can be a core part of their investors’ portfolio to capture global investment opportunities.”

Mr Kisoo Park, Managing Director and portfolio manager on the Global Multi-Sector Fixed Income team, said: “To fulfill our strategy of providing income, yield, quality, stability and total return, the underlying portfolio of the Manulife Income Series - Strategic Income Fund allocates assets across multiple fixed income sectors, including global government bonds, investment grade corporate bonds and high yield corporate bonds. The underlying portfolio allocates and continually adjusts the sector weightings on both strategic and tactical basis to enhance overall risk-adjusted returns. The low correlations amongst the bond sectors enable us to employ active allocation techniques to enhance the risk/return profile of the portfolio.”

The Fund seeks to provide a monthly distribution of 4.2 cents (SGD) per unit per annum or 0.35 cents (SGD) per unit per month.

The distribution amount is based on the number of eligible unit holdings at the point of payout. If investors are not in need of the cash income stream, they may also opt to reinvest the distribution as units in the Fund.

The Fund’s underlying portfolio invests in corporate and other foreign government bonds; primarily in the US, followed by Canada, Australia, New Zealand, South
Korea, Philippines, and Singapore, leveraging on the rigorous credit analysis of Manulife Asset Management.

The Fund’s Annual Management Charge (AMC) is 1.35% per annum. Investors can purchase units with cash or SRS. Investors can choose from two products: Manulink and Manulink Investor.

Both are single premium investment-linked plans where Manulink offers higher insurance protection; and Manulink Investor is more focused on investment.

A strong and experienced investment team actively controls and monitors the risks associated with global bond investing. Portfolio managers who manage the underlying portfolio of the Manulife Income Series – Strategic Income Fund are highly credentialed and have extensive industry experience.

The team has an average of 27 years working in the asset management industry with average of 14 years at Manulife Asset Management. Manulife Asset Management has more than 300 investment professionals around the world, with approximately 100 investment professionals in 10 markets across Asia.

Ms King said: “The Manulife Income Series – Singapore Fund, the first of the series which was launched in April this year was well-subscribed because Singaporeans are looking for a regular stream of income to meet retirement income needs and as a hedge against the market volatility and global uncertainties. This new fund will further contribute to meeting Singaporeans’ retirement needs and will be distributed by Manulife Financial Planners and authorised financial advisory firms.”