Manulife Global Fund – Preferred Securities Income Fund (the “Fund”) invests primarily in preferred securities listed or traded on any regulated market in the world, including preferred stocks (including convertible preferred stocks) and subordinated debt securities, which exposes investors to preferred securities risk, equity market risk, volatility and liquidity risk and currency risk. As the Fund may carry significant exposure to US-related issuers it may expose investors to geographical concentration risk. Certain investors may also be subject to the risk relating to RMB hedged share class.
The relevant distributing class of the Fund does not guarantee distribution of dividends, the frequency of distribution and the amount/rate of dividends. Dividends may be paid out of income, realized capital gains and/or out of capital of the Fund in respect of Inc share class(es). Dividends may be paid out of realized capital gains, capital and/or gross income while charging all or part of their fees and expenses to capital (i.e. payment of fees and expenses out of capital) in respect of MDIST (G), R MDIST (G) and F MDIST (G) share class(es). Dividends paid out of capital of the Fund amounts to a return or withdrawal of part of the amount of an investor’s original investment or from any capital gains attributable to that original investment and may result in an immediate decrease in the net asset value per share in respect of such class(es) of the Fund. Fixed yield share classes pay out a pre-determined annualized fixed percentage of their NAV, which can be adjusted by the Directors with at least one month’s prior notice, do not entirely reflect the actual or expected income or performance of the Fund. These distributions may exceed the actual income, leading to capital erosion, especially during negative returns or losses, and may reduce future capital growth. A positive distribution yield does not guarantee a positive return, and the absolute distributions vary with the NAV, resulting in fluctuating monthly payouts for investors.
The Fund’s investment in fixed income and cash and cash equivalents is subject to credit risk, interest rate risk, credit rating and downgrading risk and high-yield bonds risk.
The Fund intends to use financial derivative instruments (“FDIs”) for investment, efficient portfolio management and/or hedging purposes. The use of FDIs exposes the Fund to additional risks, including leverage risk, management risk, market risk, credit risk and liquidity risk.
Investment involves risk. The Fund may expose its investors to capital loss. Investors should not make decisions based on this material alone and should read the offering document for details, including the risk factors, charges and features of the Fund and its share classes.
Dividend income as an important source of long-term total returns for REITs
REITs offer attractive yields relative to other yield-oriented securities.
REITs can potentially provide income growth over time.
Dividend income is an important source of total returns over the long-term.
Source: Factset, as of 30 June 2025.
Global REITs represented by S&P Global REIT Total Return Index; Global Equities represented by MSCI World Total Return Index.
Income with capital appreciation can provide strong total returns
For over 20 years Global REITs have significantly outperformed the broad market through multiple market environments.
REITs perform well in various interest rate environments and may act as a hedge to inflation.
Source: eVestment, as of 30 June 2025.
Gross total return indexes reinvest as much as possible of a company’s dividend distributions. The reinvested amount is equal to the total dividend amount distributed to persons residing in the country of the dividend paying company. Gross total return indexes do not, however, include any tax credits.
For illustrative purposes only. Past performance is not an indication of future results.
Stronger balance sheets and quality assets enable Shariah REITs to outperform
Since inception of the Index, Shariah Global REITs have outperformed Global REITs.
Source: Morningstar & IdealRatings, as of 30 June 2025. The IdealRatings Global REITs Islamic Select Malaysia Index incepted 4 January 2010. Past performance does not guarantee future results.
Major Shariah global REITs markets are well diversified
The Shariah global REIT sector offers exposure to:
emerging growth trends driven by AI and hyperscalers - leading to increased demand for specialised and industrial REITs (such as data centres, telecom towers, logistics facilities, and warehouses); and
enduring growth themes arising from ageing populations and persistent inflation - supporting the expansion of healthcare REITs (medical centres and retirement homes) and providing inflation protection (residential, industrial, healthcare, and tower REITs).
Source: Bloomberg, IdealRatings, Factset. Market cap approximations as of 30 June 2025. Benchmark weights as of 30 June 2025.
Low correlations and low valuations
Low correlations with other asset classes provide diversification to an overall portfolio.
Low valuations with Global REITs trading at historic discounts relative to equities. Historically, REITs have outperformed equities following steep valuation discounts.
