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BALANCED
MANULIFE U.S. MONTHLY HIGH INCOME FUND
As at May 31, 2015
Advisor Series
This Fund offers exposure to a portfolio of primarily U.S. dividend-paying equities and multi-sector fixed income, and is focused on capital
appreciation and seeking monthly income. Equity portfolio managers use a proven approach to select companies that generate predictable
cash flows, that offer the potential for downside protection within the Fund.
PERFORMANCE
Growth of $10,000 since inception
±
12,000
$11,636
11,500
($) 11,000
10,500
10,000
9,500
HOW THE FUND IS INVESTED
As at April 30, 2015
Top equity holdings
%
International Business Machines Corp
2.6
Loblaw Companies Ltd
2.2
Oracle Corp
2.1
Procter & Gamble Co
2.0
American Express Co
1.9
10.8
Total
Dec 13 Feb 14 Apr 14 Jun 14 Aug 14 Oct 14 Dec 14 Feb 15 Apr 15
Annual compound returns (%)
1 mo. 3 mo. 6 mo.
1.4
Fund
0.3
YTD
1 yr.
3 yr.
5 yr.
4.8
11.3
–
–
5.1
Since
10 yr. inception
–
11.2
Calendar year returns for the Fund (%)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
11.0
–
–
–
–
–
–
–
–
–
Top fixed income holdings
%
Federal National Mortgage Association
01-Jan-2043 AL3424
0.8
US Treasury 3.000% 15-Nov-2044
0.7
US Treasury 2.000% 15-Feb-2025
0.6
Federal National Mortgage Association
01-Apr-2042 AL1730
0.5
Federal National Mortgage Association
01-Jul-2040 AB2959
0.5
Total
3.1
FUND DETAILS
Inception date: December 24, 2013
Risk profile: Low to Medium
AUM: $536.4 million
NAV: $11.09
Lead manager: Alan Wicks
MER (audited): 2.32%
Co-managers: Jonathan Popper, Conrad
Dabiet
Management fee: 1.95%
Sub-advisor: Manulife Asset Management
Limited
Fund codes (MMF)
CIFSC category: Global Neutral Balanced
Investment style: Value
Target distribution: $0.030/unit¥
Distribution frequency: Monthly
Positions: Equity 60 / Fixed Income 491
¤
Min. investment: $500 initial; $25 PAC
Series
Advisor
T
F
FT
Elite^
Elite T^,~
FE
4538
9128
–
–
–
–
LL
4738
9328
–
–
–
–
DSC
4438
9028
–
–
–
–
Other
–
–
4638
9927
4838
9928
Also available in US$ purchase option and
Dollar-cost averaging fund code.
Sector allocation (%)
8.9
7.5
7.3
7.3
6.7
2.9
2.6
2.0
0.9
53.9
Consumer Staples
Financials
Consumer Discretionary
Information Technology
Industrials
Health Care
Materials
Telecommunication Services
Utilities
Other
Asset allocation (%)
39.8
23.4
20.2
6.2
2.5
1.8
0.6
5.5
United States Equity
United States Fixed Income
Cash & Equivalents
Canadian Equity
Foreign Fixed Income
Canadian Fixed Income
Foreign Equity
Other
Source for all data: Lipper, a Thomson Reuters company, as at May 31, 2015. Morningstar Awards 2014 (c). Morningstar, Inc. All Rights Reserved. Awarded to Manulife Asset Management Ltd. for Best
Canadian Balanced Fund, Canada. The Morningstar Awards are based on a combination of quantitative and qualitative considerations. For more information on these considerations and the Morningstar
Awards, please visit www.investmentawards.com. ±For illustration purposes only.¥Target distributions are predetermined, reviewed annually and subject to change. ¤As of December 31, 2014 (includes
HST). ^Available to investors with $100,000 or more. ~Elite T series are capped to all new purchases as of July 30, 2014.
INVESTMENT PHILOSOPHY
The Portfolio Managers use a fundamental, value based investment approach to seek out attractively priced dividend paying equity
securities, primarily located in the U.S., that offer the potential for growth and income. They search for income and seek to generate
a sizable dividend yield premium over the benchmark index, however, the primary focus is on valuation using proprietary models, and
selecting businesses with predictable cash flows.
For the fixed income component, the Portfolio Managers invest primarily in U.S. corporate and government debt securities, high yield
bonds, preferred shares, convertibles and other types of debt securities. They concentrate on sector allocation, industry allocation and
security selection, deciding which types of bonds and industries to emphasize at a given time, and then which individual bonds to buy.
INVESTMENT PROCESS
Fundamental analysis
Assess profitability and
risk for all companies
Establish buy and sell
targets
Idea generation
Final due diligence
Compare buy and sell Confirm fundamentals
targets to market price
on best risk/reward
opportunities
Identify best risk/
reward opportunities
Team conviction
required on all
decisions
Disciplined portfolio
construction
Ongoing risk
management
Bottom-up portfolio
Strict buy
construction
(undervalued) and sell
(overvalued) threshold
Security weights
for each stock
guided by proprietary
model
Targeted tracking error
Process seeks exposure Regular portfolio
to value characteristics
monitoring by in-house
risk management team
FOR MORE INFORMATION, PLEASE CONTACT YOUR ADVISOR
OR VISIT MANULIFEMUTUALFUNDS.CA
Manulife Funds are managed by Manulife Investments, a division of Manulife Asset Management Limited. Commissions, trailing commissions, management fees and expenses all may be associated with
mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment
of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not
guaranteed, their values change frequently and past performance may not be repeated. The rate of return shown is used only to illustrate the effects of the compound growth rate and is not intended to
reflect future values or returns on investment. The payment of distributions is not guaranteed and may fluctuate. If distributions paid by the fund are greater than the performance of the fund, then your
original investment will shrink. Distributions should not be confused with a fund’s performance, rate of return, or yield. You may also receive return of capital distributions from a fund. Please consult with
your tax advisor regarding the tax implications of receiving distributions. See the prospectus for more information on a fund’s distributions policy. Manulife, Manulife Investments, and the Block Design,
and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under licence. MK2889E