One of the core principles of Manulife Investment Management (“Manulife IM” or the “Firm”) is to put its clients’ best interests at the heart of its businesses. It is the policy of the Firm to take all sufficient steps necessary to obtain, when executing orders1, the best possible result for clients, taking into account a range of execution factors. This policy applies to certain legal entities of Manulife IM, including Manulife Investment Management (Singapore) Pte. Ltd..
Manulife IM has an obligation to manage conflicts of interest between its clients and between the Firm and/or employees and its clients. This means the Firm requires all employees to act in the best interests and for the benefit of its clients. The Firm is committed to avoiding either perceived, potential or actual conflicts of interest. Where a conflict cannot be avoided, the Firm will ensure that such conflicts are dealt with and managed appropriately. The Firm takes all reasonable steps to avoid situations where its interests and client interests’ conflict and institute reasonably designed operational safeguards to protect client interests with respect to its brokerage practices. Such operational safeguards include:
The Firm must execute transactions for clients such that the client’s total costs or proceeds are the most favorable under the circumstances of the trade within the context of the marketplace. Each trade is customized to the objectives of the portfolio manager, to achieve best execution and benefit the client. There is no standard method to employ for each trade in striving to achieve best execution. A trader will take multiple variables into consideration when executing a trade. The Firm must consider the full range of a counterparty’s services, execution skills and inventory, and in placing brokerage consider the following:
The Firm considers several criteria to determine the relative importance of the execution factors listed above:
The best execution standards require Manulife IM to implement systems, processes, execution arrangements and a governance framework that is reasonable designed in seeking best execution. As part of this framework, best execution is monitored and action taken to remedy sub-optimal execution outcomes. The Firm shall also monitor for broad based market developments and technological advances as a means of assessing the overall adequacy of the best execution program.
Manulife IM believes that the overriding consideration in selecting brokers for executing portfolio orders is to minimize total transaction costs and seek the most effective use of our brokers’ execution capabilities, which in turn best ensures good value for clients.
Where a client provides us with a specific instruction in relation to an entire order, or any particular aspect of an order, including selecting to execute on a particular venue or through a restricted broker list, we will execute that order in accordance with those instructions. In following client instructions, we will be deemed to have taken all sufficient steps to provide the best possible result in respect of the aspects of the order covered by the instructions. In some circumstances, such orders may be traded after unrestricted client orders.
Some of our clients may not be able to trade with certain counterparties. This will be because certain counterparties are prohibited in their investment management agreement or for some other legal or operational reason that prevents the client from trading with the counterparty. As a result of such restrictions when applicable, Manulife’s efforts to achieve best execution may be diminished.
Depending on the size and purpose of the restricted order, that order may have to be traded after unrestricted client accounts.
1 Includes placing orders with or transmitting orders to other entities to execute
The information provided on this website is for informational purposes only and is intended solely for use by Singapore residents and is not intended for distribution to, or use by, any person or entity in the United States, or any jurisdiction or country where such distribution or use would be contrary to law or regulation, or which would subject Manulife Investment Management (Singapore) Pte. Ltd. (Company Registration No. 200709952G) and/or its affiliates (collectively hereafter "Manulife") or any of Manulife's products or services to any registration requirement within such jurisdiction or country. Nothing on this website shall be construed as financial advice or an offer, invitation, solicitation or recommendation by or on behalf of Manulife to any person to buy or sell any Fund and is no indication of trading intent in any Fund managed by Manulife. None of the information or analyses presented are intended to form the basis for any investment decision, and no specific recommendations are intended.
Investments in any Fund are not deposits in, guaranteed or insured by Manulife and involve risks. The value of units in any Fund and any income accruing to it may fall or rise. Past performance of the Fund is not necessarily indicative of future performance. The Fund may use or invest in financial derivative instruments. Investors should read the prospectus and seek advice from a financial adviser, before deciding whether to subscribe for or purchase units in any Fund. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund(s) is/are suitable for him. Copies of the prospectus and the product highlights sheets can be obtained from Manulife or its distributors, for further details (including the risk factors) and charges.
The Manager shall have the absolute discretion to determine whether a distribution is to be made in respect of any Fund as well as the rate and frequency of distributions to be made. The intention of the Manager to make the distribution and the distribution yield for the Fund is not guaranteed, and the Manager may review the distribution policy depending on prevailing market conditions. Distributions may be made out of income, net capital gains and/or capital. Past distribution yields and payments are not necessarily indicative of future distribution yields and payments. Any payment of distributions by the Fund may result in an immediate decrease in the net asset value per unit.
All advertisements or publications provided on this website have not been reviewed by the Monetary Authority of Singapore.
Manulife Investment Management (Singapore) Pte. Ltd. (Company Registration No. 200709952G)