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Manulife Global Fund – Asian High Yield Fund​

Capture credit opportunities in Asian high yield

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The 'Asia Premium"

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Fund information​

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Capture credit opportunities in Asian high yield

 

Attractive valuations in Asian high yield

The Asian high yield (HY) space is showing attractive valuations with higher credit spreads as compared to the average over the past 10 years. 

Market weakness is likely to bring out value opportunities in fundamentally strong issuers that can steer through this cycle. Robust credit research and disciplined credit selection are needed to seek out issuers who can navigate this market cycle, presenting credit opportunities for investors. 

 

Asian high yield bond spread1

 

Credit selection remains crucial in times of uncertainty

Defaults in Asian high yield market were concentrated in Chinese property developers, contributing over 90% of defaults in 2021 and 2022.

Asian HY default rate forecast was brought down to 4.1% for 2023, mainly driven by the policy pivot on the Chinese housing market, as well as signs of funding support towards several mid-sized developers in late 2022.

We believe that bottom-up credit selection will be the key driver in generating further returns and capture credit opportunities amid market volatilities..

 

Historical Asian high yield default rates2

The "Asia Premium"

 

The “Asia Premium"

For the same credit rating, Asian high yield bonds in general offer higher yields than their European and American counterparts.​ From a total return perspective, yields can compensate for the loss in bond price during rate hike cycle. The compelling yield levels of Asian high yield offer more cushion than global peers.

 

Compelling yield compared to global peers3

 

SGD-focused, minimising foreign currency exposure

The Fund is invested in both SGD denominated and non-SGD denominated bonds.

Investments in non-SGD denominated bonds are hedged back to SGD.

Fund information

Share Class Class AA (SGD Hedged) MDIST (G) Class AA (USD) MDIST (G)
Investment objective​ The Fund aims to maximize total returns through a combination of income generation and capital appreciation by investing primarily in debt securities listed or traded in Asia and/or issued by corporations, governments, agencies and supranationals domiciled in or with substantial business interests in Asia (which may from time to time include emerging markets).
Inception date 21-12-2020 21-12-2020
ISIN code LU2230239324 LU2225693626
Bloomberg ticker MLAHASM LX MLAHAUM LX
Base currency​ USD
Share class currency SGD USD
Mode of subscription Cash Cash
Minimum investment USD 1,000 (or the equivalent in any other Major Currency)
Distribution frequency​​4 Monthly
Management fee 1.25% p.a.​
Initial sales charge Up to 5.0%
Dealing frequency Daily
Investment manager Manulife Investment Management (Hong Kong) Limited and Manulife Investment Management (Europe) Limited
Fund size USD 97.3 million (as of 31 Jan 2024)
  Class A-
QDis SGD
Investment objective​ The Fund aims to provide investors with long-term capital appreciation and/or income in SGD terms through investing primarily in Asian investment grade fixed income or debt securities.​
Base currency​ SGD​
Mode of subscription​ Cash and SRS​
Share class currency​ SGD​
Launch price​​ SGD 1.00 per unit​​
Minimum investment​ S$1,000​
Distribution frequency​ Declare quarterly distributions on 15th calendar day of March, June, September and December  (or the next Business Day if that day is not a Business Day)​
Management fee​ 1% p.a.​
Initial sales charge​ Up to 3.0%​
Initial sales charge​ Up to 3.0%​
Dealing frequency​ Daily​
Investment manager​​ Manulife Investment Management (Singapore) Pte. Ltd.​

 

Portfolio managers

Endre Pedersen​, Deputy Chief Investment Officer (CIO), Global Fixed Income

Endre is Deputy CIO, Global Fixed Income and lead manager for the company’s pan-Asian fixed income strategies. His main responsibilities include overseeing the development and implementation of the investment philosophy, risk management, and performance of all our fixed income strategies worldwide. Endre has extensive investment experience in developed Asian markets, having managed single- and multiple-currency funds with exposure to Asian sovereign and corporate debt. Before joining Manulife Investment Management, he worked as a Senior Fixed Income Portfolio Manager for DBS Asset Management. Prior to this, he was a Fixed Income Portfolio Manager for Hermes Investment Management and F&C Management in London.​

 

Jimond Wong, CFA, CPA​, Managing Director and Senior Portfolio Manager, Fixed Income​

Based in Hong Kong, Jimond is a Managing Director and Senior Portfolio Manager. He supports the firm’s pan-Asian bond strategies with an emphasis on Asian credit markets. Before joining Manulife Investment Management, Jimond was an Executive Director with the highly ranked credit research team at UBS Investment Bank where he focused on high-yield corporate bonds. Prior to that, Jimond worked at UBS proprietary credit trading and subsequently moved to a credit hedge fund seeded by a world-renowned alternative investment manager. He has extensive knowledge of the entire Asian credit spectrum, from public and private placement bonds to special situation and distressed debts. Jimond began his career as an accountant with KPMG. ​

 

Endre Pedersen​, Deputy Chief Investment Officer (CIO), Global Fixed Income

Based in London, Endre is Senior Managing Director, Deputy CIO, Global Fixed Income & CIO, Global Emerging Markets Fixed Income. He is the lead manager for the company’s pan-Asian fixed income strategies. Endre has extensive investment experience in developed Asian markets, having managed single- and multiple-currency funds with exposure to Asian sovereign and corporate debt. 

Before joining Manulife Investment Management, he worked as a Senior Fixed Income Portfolio Manager for DBS Asset Management. Prior to this, he was a Fixed Income Portfolio Manager for Hermes Investment Management and F&C Management in London.

Endre holds a Bachelor of Finance from the Strathclyde Business School at the University of Strathclyde, Scotland. Endre has completed studies in Responsible Investment at the PRI Academy.

 

Jimond Wong, CFA, CPA​, Managing Director and Senior Portfolio Manager, Fixed Income​

Based in Hong Kong, Jimond is a Managing Director and Senior Portfolio Manager. He supports the firm’s pan-Asian bond strategies with an emphasis on Asian credit markets. Before joining Manulife Investment Management, Jimond was an Executive Director with the highly ranked credit research team at UBS Investment Bank where he focused on high-yield corporate bonds. Prior to that, Jimond worked at UBS proprietary credit trading and subsequently moved to a credit hedge fund seeded by a world-renowned alternative investment manager. He has extensive knowledge of the entire Asian credit spectrum, from public and private placement bonds to special situation and distressed debts. Jimond began his career as an accountant with KPMG. ​

 

Chris Lam, CFA, Senior Director and Portfolio Manager, Asia Fixed Income​

Based in Hong Kong, Chris is a Portfolio Manager with the Fixed Income team.

Before becoming a portfolio manager in 2021, Chris was a senior Asian credit analyst. Prior to joining the firm, Chris was a market risk analyst at J.P. Morgan & Chase Private Bank in Hong Kong in their Capital Markets Credit Risk Group.  Earlier in his career, he worked at Moody's Analytics in New York as a credit analyst covering global corporate credits.

Chris holds a BA in Economics from Brandeis University, Boston and a MS in Financial Engineering from Columbia University, New York. He is a CFA charterholder.

Jimond Wong, CFA, CPA​, Managing Director and Senior Portfolio Manager, Fixed Income​

Based in Hong Kong, Jimond is a Managing Director and Senior Portfolio Manager. He supports the firm’s pan-Asian bond strategies with an emphasis on Asian credit markets. Before joining Manulife Investment Management, Jimond was an Executive Director with the highly ranked credit research team at UBS Investment Bank where he focused on high-yield corporate bonds. Prior to that, Jimond worked at UBS proprietary credit trading and subsequently moved to a credit hedge fund seeded by a world-renowned alternative investment manager. He has extensive knowledge of the entire Asian credit spectrum, from public and private placement bonds to special situation and distressed debts. Jimond began his career as an accountant with KPMG. ​

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Notes:

1. Bloomberg, as of 31 December 2022. Asian HY bonds are measured by JP Morgan Asia Credit Non-Investment Grade Index. Investment involves risk. Past Performance is not indicative of future performance.

2. JP Morgan, as of 2 February 2023. 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. 

3. Manulife Investment Management and Bloomberg, as of 31 March 2023, Asian HY is represented by JP Morgan Asia Credit Non-Investment Grade Index, US HY is represented by BofA Merrill Lynch US High Yield Index and Europe HY is represented by BofA Merrill Lynch Euro High Yield Index. Past performance is not indicative of future performance.

4. The intention of Manulife Global Fund to make the monthly distribution and the distribution yield for the Fund is not guaranteed, and Manulife Global Fund may in future review the distribution policy depending on prevailing market conditions.

Important Information

Manulife Global Fund (the “Company”) is an open-ended investment company registered in the Grand Duchy of Luxembourg. The Manulife Global Fund – Asian High Yield Fund (the "Fund") is recognised under the Securities and Futures Act of Singapore for retail distribution. The Company has appointed Manulife Investment Management (Singapore) Pte. Ltd. (Company Registration Number: 200709952G) as its Singapore Representative and agent for service of process in Singapore. The information provided herein does not constitute financial advice, an offer or recommendation with respect to the Fund. Opinions, forecasts and estimates on the economy, financial markets or economic trends of the markets mentioned herein are not necessarily indicative of the future or likely performance of the Fund. The Fund may use financial derivative instruments for the purposes of investment, efficient portfolio management and/or hedging.  ​

Investments in the Fund are not deposits in, guaranteed or insured by the Manager and involve risks. Past performance of the manager or sub-manager is not necessarily indicative of its future performance. The value of units in the Fund and any income accruing to them may fall or rise. Past performance of the Fund is not necessarily indicative of future performance. Investors should read the Singapore prospectus, and seek advice from a financial adviser before deciding whether to purchase units in the Fund. A copy of the Singapore prospectus and the product highlights sheet can be obtained from Manulife or its distributors. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is suitable for him. 

Distributions are not guaranteed. Investors should refer to the Singapore prospectus for the distribution policy of the Fund. The Directors of the Company shall have the absolute discretion to determine whether a distribution is to be made in respect of the Fund as well as the rate and frequency of distributions to be made. Distributions may be made out of (a) income, or (b) net realized gains, or (c) capital of the Fund, or (d) gross income while charging all or part of the fees and expenses to capital, or (e) any combination of (a), (b), (c) and/or (d). Past distribution yields and payments are not necessarily indicative of future distribution yields and payments. Any payment of distributions by the Fund is expected to result in an immediate decrease in the net asset value per share of the Fund.​ 

This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.​

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.