Manulife Investment Management Launches Two New Liquid Alternative Fixed-Income Solutions

C$ unless otherwise stated                                            
For Immediate Release
May 14, 2024

Innovative total return strategies designed to complement a traditional bond portfolio

Toronto –Manulife Investment Management (Manulife IM) announced today that it has launched two new liquid alternative funds: Manulife Alternative Opportunities Fund and Manulife Strategic Income Plus Fund. The funds are managed by Manulife Investment Management’s Canadian fixed-income team and global multi-sector fixed-income team, respectively. The teams manage more than CAD$54 billion combined in assets globally.¹

The Manulife Alternative Opportunities Fund aims to generate attractive long-term total returns through income and capital appreciation while mitigating potential volatility through hedging strategies. The Canadian fixed-income team applies their expertise in North American fixed income to deliver a tactical bond solution that may provide higher yields with potentially less volatility than a typical bond fund. The fund is managed by Roshan Thiru, CFA, Altaf Nanji, CFA, Sivan Nair, CFA, and Jonathan Crescenzi, CFA, who have more than 85 years of combined industry experience.

“Our focus is on managing the risks and opportunities associated with a typical bond portfolio through the use of interest rate futures, credit default swaps, options and synthetic leverage,” said Roshan Thiru, head of Canadian fixed income. “While we have historically used these tools for risk mitigation purposes, the ability to add exposure synthetically gives us added flexibility to drive returns in an increasingly volatile investment landscape.”

The Manulife Strategic Income Plus Fund seeks to maximize total return through income generation and capital appreciation. The global multi-sector fixed-income team will leverage its deep knowledge and experience in the global fixed-income market and the increased adaptability with this strategy to deliver a global bond solution that provides potentially higher yields than a typical bond fund, while also actively managing duration and currency exposure. Manulife Strategic Income Plus Fund is managed by Christopher Chapman, CFA, Kisoo Park, Thomas C. Goggins, Bradley Lutz, CFA, and Charles Tomes who have more than 140 years of combined industry experience.

“In addition to the fund’s dynamic sector allocation and global outlook, the increased  derivatives flexibility and leverage capability brings further levers and resilience to the Strategic Income Plus portfolio,” said Christopher Chapman, head of global multi-sector fixed income. “With this nimble approach, the fund could be a new source of potential alpha for clients who may be interested in diversifying their fixed-income exposure.”

“We’re excited to launch these strategies and leverage the experience of these two well-established teams to expand our capabilities in liquid alternative income solutions. Manulife Investment Management has a legacy of fixed income and alternatives investing and is well-positioned to grow its existing line-up and bring these strategies to investors who may be interested in complementary approaches to their existing portfolio allocation,” concluded Jordy Chilcott, head of retail intermediary distribution, Canada, Manulife Investment Management.

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1 As of March 31. 2024

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

Manulife Alternative Mutual Funds have the ability to invest in asset classes or use investment strategies that are not permitted for conventional mutual funds. The specific strategies that differentiate these alternative mutual funds from conventional mutual funds may include the increased use of derivatives for hedging and non-hedging purposes, the increased ability to sell securities short and the ability to borrow cash to use for investment purposes. If undertaken, these strategies will be used in accordance with the Funds’ objectives and strategies, and during certain market conditions, may accelerate the pace at which the Funds decrease in value.

Manulife Funds are managed by Manulife Investment Management Limited. Manulife Investment Management is a trade name of Manulife Investment Management Limited.

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About Manulife Investment Management

Manulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial Corporation. Our mission is to make decisions easier and lives better by empowering investors for a better tomorrow. Serving more than 17 million individuals, institutions, and retirement plan members, we believe our global reach, complementary businesses, and the strength of our parent company position us to help investors capitalize on today’s emerging global trends. We provide our clients access to public and private investment solutions across equities, fixed income, multi-asset, alternative, and sustainability-linked strategies, such as natural capital, to help them make more informed financial decisions and achieve their investment objectives. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.