MANULIFE STRATEGIC BALANCED YIELD FUND

BALANCED
MANULIFE STRATEGIC BALANCED YIELD FUND
As at May 31, 2015
Advisor Series
This Fund offers exposure to a diversified portfolio primarily of dividend paying U.S. equity securities and global multi-sector fixed income.
Experienced equity portfolio managers utilize a detailed seven step process to identify undervalued companies to hold over the long term
and the team will tactically manage currency exposure.
PERFORMANCE
HOW THE FUND IS INVESTED
As at April 30, 2015
Top equity holdings
%
Apple Inc
3.6
Citigroup Inc
2.4
($) 13,000
Bank of America Corp
2.3
12,000
JPMorgan Chase & Co
2.3
11,000
Lowes Companies Inc
2.2
10,000
Total
Growth of $10,000 since inception
±
16,000
$15,283
15,000
14,000
9,000
Mar 12
Nov 12
Jul 13
Mar 14
Nov 14
Annual compound returns (%)
1 mo. 3 mo. 6 mo.
2.4
Fund
0.4
YTD
1 yr.
3 yr.
5 yr.
6.4
15.2
17.1
–
7.2
Since
10 yr. inception
–
14.2
Calendar year returns for the Fund (%)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
13.2
20.6
–
–
–
–
–
–
–
–
12.8
Top fixed income holdings
%
Kennedy Wilson Inc 5.875% 01-Apr2024
0.6
New Zealand 6.000% 15-May-2021
0.5
New Zealand 6.000% 15-Dec-2017
0.5
CCO Holdings LLC 5.750% 15-Jan2024
0.4
Canada 1.250% 01-Mar-2018
0.4
Total
2.4
FUND DETAILS
Inception date: March 22, 2012
Risk profile: Low to Medium
AUM: $1,461.3 million
NAV: $13.67
Lead manager: Sandy Sanders
MER (audited): 2.29%
Co-manager: Walter McCormick
Management fee: 1.95%
Sub-advisor: Manulife Asset Management
(US) LLC
Min. investment: $500 initial; $25 PAC
CIFSC category: Global Neutral Balanced
Investment style: Blend
Target distribution: $0.033/unit¥
Distribution frequency: Monthly
Distribution yield: 3.04%
≠
Positions: Equity 64 / Fixed Income 336
¤
Fund codes (MMF)
Series
Advisor
T
F
FT
Elite^
Elite T^,~
FE
4530
9580
–
–
–
–
LL
4730
9780
–
–
–
–
DSC
4430
9480
–
–
–
–
Other
–
–
4630
1613
4830
9880
Also available in Dollar-cost averaging fund
code.
Sector allocation (%)
„„ 20.3
„„ 9.0
„„ 8.9
„„ 6.9
„„ 6.6
„„ 4.2
„„ 3.3
„„ 0.1
„„ 40.7
Financials
Consumer Discretionary
Information Technology
Consumer Staples
Industrials
Energy
Health Care
Materials
Other
Asset allocation (%)
„„ 54.1
„„ 23.0
„„ 7.9
„„ 6.2
„„ 5.5
„„ 2.0
„„ 1.3
United States Equity
United States Fixed Income
Foreign Fixed Income
Cash & Equivalents
Foreign Equity
Canadian Fixed Income
Other
Source for all data: Lipper, a Thomson Reuters company, as at May 31, 2015. ±For illustration purposes only.¥Target distributions are predetermined, reviewed annually and subject to change. ≠Distribution
yield is calculated based on prior 12-month rolling average of paid distributions and using average month-end net asset value, per security. The distribution yield does not include any year-end capital
gains distributions paid in addition to the regular monthly distributions. Distribution yield should not be confused with a fund’s performance or rate of return. ¤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
In selecting equity securities, the Portfolio Managers utilize a detailed seven step process to identify highly differentiated companies with
sustainable competitive advantages with cash flow and returns on invested capital that are expected to consistently exceed their cost of
capital.
They favour companies with attractive and sustainable secular growth, high barriers to entry and strong management teams with a focus
on shareholder value creation.
The Portfolio Managers allocate fixed income assets based on analyses of economic factors such as projected international interest rate
movements, industry cycles and political trends.
INVESTMENT PROCESS
Fundamental analysis
Idea generation
„„Competitive advantage „„Proprietary research
validation
„„Return on Invested
„„Growth drivers
Capital (ROIC)>
Weighted Average
„„Industry analysis
Cost of Capital
„„Financial analysis
„„Management team
assessment
„„Range of value
determination
„„Stock specific risk
consideration
Disciplined portfolio
construction
„„Range of value analysis
„„Best to worst cases
scenarios
„„Determination of
“right price” to pay
„„Risk/reward evaluation
„„Buy/Sell decision
„„Depressed
fundamentals
„„Low valuation
„„Weak sentiment
„„Strong active inventory
Ongoing risk
management
„„Consistently apply
range of value analysis
across active inventory
„„Understand the “right
price” to pay
„„Monitor portfolio
guidelines
„„Monitor benchmarkrelative risk factors
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,
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