November 28, 2024
What are the costs associated with alternative mutual funds?
What are alternative mutual funds and how are they priced? Learn more about these nontraditional investment vehicles and their primary charges in Canada.
Explore our alternatives
If you're looking to give your portfolio an edge, we’ve got you covered. Push the boundaries of diversification with the help of powerful trading strategies, a broader opportunity set, and our suite of alternative investment solutions.
Liquid alternatives
AUM: $3.9 billion²
25+ years of experience
Diversified range of alternative hedging strategies
- Multistrategy
- Macro trading
- Multi-asset absolute return
- Long/short equity
- Real estate
- Infrastructure
Private equity and credit
$26.7B in AUM³
20+ years of experience
Senior and junior private credit, fund investing, and equity co-investments focused on the North America and Asia middle markets
Real estate
$27.2B in AUM⁴
95+ years of experience
Investment solutions across core, core-plus, and value-add office, industrial, multifamily, and retail assets in the United States, Canada, and Asia
Timberland
$16.6B in AUM⁵
35+ years of experience
Fully integrated, global, sustainable timber investment solutions across a variety of tree species, age classes, and geographies
Infrastructure equity and energy
$28.4B in AUM⁶
40+ years of experience7
Equity investments in core and core-plus infrastructure assets focusing on the United States, Canada, and Europe
Agriculture
$6.3B in AUM⁵
30+ years of experience
Customized, vertically integrated, sustainable agricultural investment solutions across a variety of commodity types and geographies
Investor in liquid alternatives since 1997
We've invested in liquid alternatives since 1997, giving us nearly three decades of liquid alternatives investment experience.
Investor in private assets since 1925
We're a pioneer in private markets investments, with expertise in both real assets and private equity and credit, as well as a foundation of long-standing relationships with more than 200 sponsor partners.
Insurance heritage and financial stewardship
Our parent company, Manulife, has a strong insurance heritage and aligned interest with investors through substantial general account investments and solid risk management, having navigated numerous market crises since 1887.
Multimanager investment approach since 1988
As a group, we’ve integrated a multimanager approach for over 35 years. Today, we leverage that multimanager expertise to identify and select leading managers as part of our network.
One of the world’s leading natural capital investment managers⁸
Our parent company, Manulife, is one of the world’s largest managers of forestry/timberland and agriculture/farmland.
Global scale
Our global group footprint spans North America, Asia, and Europe, and it gives us the ability to source and attract leading alternative investment managers who bring unique insight and expertise to our alternative solutions.
Market Intelligence: alternative investment insight
Read the latest thinking on the trends moving markets and get our network's 3- to 5-year outlook on a range of alternative asset classes.
Our alternative capabilities
Hinging on years of profound expertise across Manulife Investment Management, our product shelf encompasses alternative solutions designed to complement your conventional investment portfolio. From liquid alternatives to real assets, each strategy within our alternatives offering caters to a unique set of investor needs.
Real assets
The democratization of real assets has begun, and we continue to bring in-depth expertise to accredited retail investors across Canada. With Manulife real assets, investors can combine the diversification and yield benefits of real assets with the liquidity and transparency of public markets investments.
For decades, alternative strategies have been used by institutional investors, pension plan sponsors, and endowment funds. The landscape has since undergone a monumental shift, prompting the retail investment community to tap into these strategies like never before. Real assets have broadened the opportunity set for everyday investors, providing additional diversification benefits, enhanced return potential, and inflation protection. In comparison to a portfolio composed solely of public market instruments, an allocation to both public markets and private markets real assets has yielded stronger risk-adjusted return potential.
Blending public market investments with private real assets
Key differentiators between real assets and traditional investments
|
Mutual funds and ETFs focused on public investments in the real economy |
Liquid alternative mutual funds and ETFs |
Private real asset strategies |
|---|---|---|---|
What they are and what they hold |
Public equities and bonds of companies in sectors focused on the real economy, such as agriculture, utilities, infrastructure, and REITs |
Public equities and bonds Commodities Often with the use of short selling, leverage, and derivatives |
Direct real estate Timberland Farmland Infrastructure assets |
What they can do |
Provide some exposure to real assets owned by public companies; can be bought and sold on a stock exchange or from a network of bond dealers at any time with relative ease |
Provide some diversification through exposure to nontraditional strategies such as long/short and equity market neutral; provide liquidity |
Diversification thanks to income and growth patterns unrelated to public markets; help protect against inflation |
What they don’t do |
Provide direct exposure to real assets; capture the liquidity premium; diversify against adverse market events |
Provide direct exposure to real assets; capture the liquidity premium |
Provide daily liquidity |
May be suitable for |
Traditional investors who need liquidity, can tolerate market drawdowns, and want exposure to some elements of the real economy |
Investors looking for strategies that can be less correlated with traditional markets |
Long-term accredited investors focused on steady and diverse sources of income that have low correlations with traditional asset classes and who want to hedge against inflation |
A candid look at our solutions
Our alternative investment strategies are a gateway to differentiated risk and return opportunities, offering potential downside protection, enhanced upside potential, and portfolio diversification.
Manulife Alternative Opportunities Fund
- North American liquid alternative solution
- Enhanced downside protection
- Tactical duration management
- Increased return potential
- Road map for all market cycles
Manulife Strategic Income Plus Fund
- Global liquid alternative solution
- Total return potential
- Opportunistic currency and yield curve management
- Tactical duration management
- A core bond alpha complement
Manulife Real Assets Investment Fund
- Portfolio of public and private real assets
- Income and capital growth potential
- Enhanced liquidity through a public markets sleeve
- Increased inflation hedging attributes
- Low correlation to traditional stocks and bonds
Related viewpoints
September 19, 2024
Diversified private real assets: real diversification with the potential for sustainable outcomes
An allocation to private real assets can provide a diversification benefit, help hedge against inflation, and put a portfolio on the path toward sustainability objectives.
August 14, 2024
The dividends of policy divergence
The global interest-rate easing cycle is under way. We explore what that means for investors taking a global view on fixed-income opportunities while putting credit and currency risk in perspective.
May 13, 2024
Rethinking fixed-income investing: an alternative approach
Rapidly changing rate-cut expectations point to the challenges that bond investors face in the current economic climate. Is it time to look beyond the traditional fixed-income playbook?
January 24, 2024
The golden age of security selection in fixed income
The fixed-income environment has changed drastically over the past two years. We explain how an active strategy can take advantage of current market conditions.
April 11, 2022
What are alternative assets and how can I invest in them?
Institutional investors have typically turned to alternative assets for income and diversification. But what are alternative assets and can retail investors benefit from them too?
Important disclosures
1 All assets under management (AUM) are calculated on a fair value basis in Canadian dollars (CAD); AUM and years of experience are as of December 30, 2024. Data includes assets managed by Manulife Investment Management and its affiliates on behalf of Manulife's Canadian and U.S. general accounts, as well as certain third-party investors. 2 Investment in liquid alternatives refers to John Hancock Investment Management launching its first liquid alternative product, a real estate investment trust, in 1997; AUM in Manulife Investment Management in liquid alternatives as of December 31, 2024. 3 Assets Under Management (“AUM”) includes funded capital and unfunded commitments. 4 Includes MAST asset allocation AUM invested into real estate funds and other rounding adjustments. 5 Aggregate fund-level market value as of December 31, 2024. AUM is managed on a discretionary and non-discretionary basis for the General Account, its affiliates and third-party clients. 6 Represents assets of Manulife Investment Management’s private equity and credit group. 7 Experience of North American corporate finance. 8 IPE research as of January 24, 2025. Ranking is based on total Natural Capital AUM, which includes forestry/timberland AUM. Firms were asked to provide AUM and the as of dates vary from December 31, 2023, to December 31, 2024. 9 Combined cash borrowing and short selling is limited to 50% of NAV.
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.
This communication is not and under no circumstances is to be construed as an invitation to make an investment in the Manulife Real Asset Investment Fund (the “Fund”), nor does it constitute a public offering to sell the securities of the Fund. The offering of units of the Fund is made pursuant to its Confidential Offering Memorandum only to those “accredited investors” in certain jurisdictions of Canada who meet certain eligibility and cannot be sold in Canada to the general public. The offering memorandum contains important information regarding the fund's investment objectives, strategies, restrictions, risks, fees, redemption limitations, liquidity and other matters of interest. There are no assurances that the stated investment objectives of the fund will be met.
Applications for investment in the Fund will only be considered on the terms set out in the Confidential Offering Memorandum, a copy of which can be obtained from us. Eligible investors should review the Confidential Offering Memorandum carefully before deciding to purchase units and should note that alternative investments can involve significant risks. The Fund is not guaranteed, its values may change frequently and past performance may not be repeated. The Fund is managed by Manulife Investment Management Limited. Manulife Investment Management is a trade name of Manulife Investment Management Limited.
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 nonhedging 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.
The information provided does not take into account the suitability, investment objectives, financial situation, or particular needs of any specific person. All overviews and commentary are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, investment or legal advice. Clients and prospects should seek professional advice for their particular situation. Neither Manulife Investment Management, nor any of its affiliates or representatives (collectively Manulife Investment Management) is providing tax, investment or legal advice.
The opinions expressed are those of the author(s) and are subject to change without notice. Our investment teams may hold different views and make different investment decisions. These opinions may not necessarily reflect the views of Manulife Investment Management. The information and/or analysis contained in this material has been compiled or arrived at from sources believed to be reliable, but Manulife Investment Management does not make any representation as to their accuracy, correctness, usefulness, or completeness and does not accept liability for any loss arising from the use of the information and/or analysis contained. The information in this material may contain projections or other forward-looking statements regarding future events, targets, management discipline, or other expectations, and is only current as of the date indicated. The information in this document, including statements concerning financial market trends, are based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. Manulife Investment Management disclaims any responsibility to update such information.
Manulife Investment Management shall not assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained here. This material was prepared solely for informational purposes, does not constitute a recommendation, professional advice, an offer or an invitation by or on behalf of Manulife Investment Management to any person to buy or sell any security or adopt any investment approach, and is no indication of trading intent in any fund or account managed by Manulife Investment Management. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Diversification or asset allocation does not guarantee a profit or protect against the risk of loss in any market. Unless otherwise specified, all data is sourced from Manulife Investment Management. Past performance does not guarantee future results.
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