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Manulife Launches Two New MPF Constituent Funds


Manulife Launches Two New MPF Constituent Funds

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For Manulife Global Select (MPF) Scheme

Important to note:

•   You should consider your own risk tolerance level and financial circumstances before making any investment choices. When, in your selection of funds, you are in doubt as to whether a certain fund is suitable for you (including whether it is consistent with your investment objectives), you should seek financial and/or professional advice and choose the funds most suitable for you taking into account your circumstances.

•   The asset allocation of some constituent funds, referred to as “Retirement Funds”, will change over time and hence the risk profile and return will also change over time. These constituent funds may not be suitable for all members. You should understand the relevant risks involved before investment and consider factors other than age and review your own investment objectives.

•   The Manulife MPF Interest Fund and the Manulife MPF Stable Fund (collectively the “Guaranteed Funds”) under this scheme invests solely in approved pooled investment funds in the form of insurance policies provided by Manulife (International) Limited. The guarantee is also given by Manulife (International) Limited. Your investments in the Guaranteed Funds, if any, are therefore subject to the credit risks of Manulife (International) Limited. Please refer to sections 6.2.2 and 6.2.3 of the Offering Document for details of the credit risks, guarantee features and qualifying conditions.

•   You should not make your investment decision based on this document alone and should read the relevant Offering Document.


Boasting a Comprehensive MPF Platform with Total Retirement Solutions

Manulife Launches Two New MPF Constituent FundsManulife launched two new constituent funds under the Manulife Global Select (MPF) Scheme on April 23, 2012 – the Manulife MPF Hang Seng Index Tracking Fund and the Manulife MPF Pacific Asia Bond Fund. Both designed for MPF members who hold a longer-term investment view, the two new constituent funds aim to cater for diverse investment appetites through different investment strategies.

The addition of these two new constituent funds has further boosted Manulife’s comprehensive MPF platform, which boasts a diversified suite of 26 constituent funds covering fund types ranging from equity (regional, single-country and sector), bond (international, regional and single-country), lifestyle (which include mixed assets, guaranteed and money market) to target-date (mixed assets).

Manulife MPF Hang Seng Index Tracking Fund

Manulife MPF Hang Seng Index Tracking Fund is designed for members who are prepared to accept significant fluctuations in the value of their investments to achieve long term returns. Its underlying investments intend to invest in shares of constituent companies of the Hang Seng Index (“HSI”) in substantially similar composition and weighting as they appear in the index through an approved index tracking collective investment scheme (“ITCIS”)†. The Management fees of this constituent fund is 0.9% per annum (“p.a.”) of net asset value (“NAV”).

† Members should note that there is potential risk relating to the difference between the market price of units of an ITCIS and the NAV of it. The market price of the units traded on the relevant stock exchange(s) is determined not only by the NAV of the ITCIS but also by other factors such as the supply and demand of the units in the relevant stock exchange(s). There is also potential risk with investing solely in a single ITCIS. In the event that the underlying ITCIS is, for whatever reason, adversely affected or terminated, the feeding constituent fund will likewise be affected and may, in certain circumstances, be terminated. Please refer to the Offering Document of the Manulife Global Select (MPF) Scheme for details.

On Track with Market Drivers

General features of index tracking funds:

  • Easy performance tracking: Performance of an effective index tracking fund shall be highly resemble to that of the tracked index
  • Comparatively lower management fees as involvement of fund managers shall be less active due to the funds’ index tracking nature. Proactive investors might like to balance their portfolio with index tracking funds according to their own views of the potential of the tracked index(es), market trends and personal goals
  • Dollar-cost-averaging through regular investments in a collection of stocks of some large companies in terms of capitalization


Manulife MPF Pacific Asia Bond Fund

Manulife MPF Pacific Asia Bond Fund seeks to provide members with competitive overall rate of returns through income and capital appreciation. It is intended that the underlying investments will be made on diversified basis mainly in debt securities issued by any government, central bank, supra-nationals, multilateral international agency and corporate issuers in the Asia-Pacific region.

The Management fees of Manulife MPF Pacific Asia Bond Fund is 1.65% p.a. of NAV. With the addition of this new constituent fund, Manulife now offers a more comprehensive range of bond funds investing in single or regional or international markets.

Bonding with Asia’s Unrivalled Growth Opportunities

The generally strong fiscal positions and repayment ability of the governments and corporations in Asia Pacific form a healthy ground for long term development in the region. Supported by robust domestic demands, huge investments in infrastructure projects, relatively cheap labor, and smart utilization and development of resources, Asia Pacific has become the driving force of world economy with great investment opportunities and potential in currency appreciation.

Given the generally low correlation of bond markets to equity and property markets, bond funds might be an option for investment diversification and risk-balancing.

Download the customer leaflet here to learn more about the two new constituent funds under the Manulife Global Select (MPF) Scheme.

Investment involves risks. Please refer to the Offering Document for details, risk factors and charges of the scheme and constituent funds.

Issued by Manulife (International) Limited.