Manulife SGD Income Fund
Capture regional investment opportunities, enjoy potential income in SGD¹
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Why Asian bonds
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Solid Asian fixed income capabilities
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Fund information
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In the past five years, seeking a fund that can deliver consistent income and returns has been challenging for investors holding Singapore dollars. The market has been full of surprises ranging from central bank actions, geopolitical tensions to the pandemic. However, the Manulife SGD Income Fund which is SGD-focused and aims to deliver regular income and potential returns remains true to its label by consistently delivering at least 4% yield2 on an annualised basis and has posted about 3.62%3 total returns since its inception in 20164.
How does the Fund work?
SGD-focused, minimising foreign currency exposure
The Fund is invested in both SGD denominated and non-SGD denominated bonds.
Investments in non-SGD denominated bonds are hedged back to SGD.
Diversified with potential for higher yield
At least 70% of the portfolio is invested in investment-grade bonds for stability5 and a maximum 30% of the portfolio is invested in high-yield bonds for better yields.
Adaptable to different interest rate environments
Benefit from actively managed interest rate risk with duration of the Fund within the range of 0 to 5 years.
Potential regular income1 in SGD
Receive potential quarterly income1 of up to 4.5% p.a. or 6% p.a., depending on your income needs.
Income options
Distribution share classes
Income from regular payouts to help meet your commitments.
Decumulation share classes6
Higher potential income compared to distribution shared classes which may be drawn partially from your capital to meet income needs, while staying invested for potential capital appreciation.
Asian bonds have offered better risk-adjusted returns than most asset classes.
10-year risk return7
Asia is expected to remain the bright spot of the global economy, with GDP expected to outperform the other regions throughout 2023 and 2024.
GDP Growth rates8
Asian government bond yields offer relatively higher nominal yields compared to most developed market government bonds. Although inflation environment have remained elevated, inflation in Asia is relatively benign and selective Asian bonds markets still offer positive real yields.
Nominal and Real 10-Year Government Bond Yields9
A sizeable on-the-ground team is necessary to keep up with the rapid growth of under-researched Asian credit markets. Capitalise on Manulife Investment Management's widely established credit research resources:
Over 70
fixed income
professionals in Asia10
Covering over
500 asian credit
issuers in Asia10
Over US$42
billion fixed income
assets managed in Asia10
Portfolio managers
Murray Collis, Chief Investment Officer, Fixed Income, Asia (ex. Japan)
Based in Singapore, Murray is a Senior Managing Director, Chief Investment Officer, Asia (ex-Japan) Fixed Income and lead portfolio manager of our Singapore-based fixed income strategies. He is also a core member of the pan-Asian fixed income team in the management of pan-Asia strategies.
Murray has 25 years of industry experience, 20 of which in portfolio management in markets including London, Hong Kong and Singapore. Most recently, Murray was the Head of Asian Fixed Income (based in Singapore) for Standish Mellon Asset Management. Prior to that, Murray spent 16 years with First State Investments covering currencies, global bonds and credit.
Murray holds a Bachelor of Commerce and a Bachelor of Economics (honours) from the University of Newcastle, Australia. Murray has completed a graduate certificate in Corporate Sustainability and Innovation at Harvard University and is currently pursuing a Master of Liberal Arts in Sustainability, Extension Studies, at Harvard University.
Murray Collis, Deputy Chief Investment Officer, Fixed Income, Asia (ex. Japan) and Head of Fixed Income, Singapore
Murray is Head of Fixed Income, Singapore and Deputy Chief Investment Officer, Fixed Income, Asia (ex-Japan). Based in Singapore, Murray leads the firm’s local fixed income teams in the Philippines, Malaysia, Vietnam, Indonesia, Taiwan, and Singapore. His responsibilities include leading all of the Singapore-based fixed income strategies, including the Sustainable Asia Bond strategy and oversee a local team of portfolio managers and credit analysts. He also contributes to the pan-Asian fixed income team in the management of pan-Asian strategies such as the Asian Total Return and Asian Bond Absolute Return strategies. Murray has 24 years of industry experience, 20 of which in portfolio management in markets including London, Hong Kong and Singapore. Before joining Manulife Investment Management, Murray was Head of Asian Fixed Income for Standish Mellon Asset Management, based in Singapore. Prior to that, Murray spent 16 years with First State Investments covering currencies, global bonds and credit.
Alvin Ong, Head of Fixed Income, Singapore
Based in Singapore, Alvin is managing director and Head of Fixed Income, Singapore. He is responsible for managing Singapore-based fixed income assets.
Alvin joined the firm from AXA Investment Managers (Hong Kong), where he was portfolio manager for Singapore dollar, Japanese yen and Hong Kong dollar fixed income portfolios. He began his career with the Monetary Authority of Singapore, where he managed global credit as well as Japanese yen fixed income portfolios. He was also ranked as one of the most astute investors in Singapore Bonds by The Asset Benchmark Research for four consecutive years since 2018.
Alvin holds a Bachelor of Electrical and Electronic Engineering from the Nanyang Technological University. He is a CFA charterholder and an EFFAS Certified ESG Analyst. Alvin has completed studies in Corporate Sustainability at NYU Stern and University of Cambridge as well as courses in Responsible Investment at the PRI Academy.
Alvin Ong, Director, Fixed Income – Portfolio Manager, Singapore Bonds
Alvin is Director, Portfolio Manager responsible for managing Singapore-based fixed income assets. He has over 12 years of industry experience. Prior to joining Manulife Investment Management, Alvin was from AXA Investment Managers (Hong Kong), where he was Portfolio Manager for Singapore dollar, Japanese yen and Hong Kong dollar fixed income portfolios. He began his career with the Monetary Authority of Singapore, where he managed global credit as well as Japanese yen fixed income portfolios. He was also ranked as one of the most astute investors in Singapore Bonds by The Asset Benchmark Research for 2018 and 2019.
| Share Class | Class A-QDis SGD/ Class C-QDis SGD |
Class A-QDis USD Hedged/ Class C-QDis USD Hedged |
Class A-QDIS SGD DECUMULATION/ Class C-QDIS SGD DECUMULATION |
|---|---|---|---|
| Investment objective | The Fund aims to provide investors with long-term capital appreciation and/or income in SGD terms through investing primarily in Asian investment grade fixed income or debt securities. | ||
| Inception date | 18-11-2016 | 26-01-2017/06-12-2016 | To be incepted/24-02-2021 |
| ISIN code | SG9999015762/SG9999015796 | SG9999015770/SG9999015804 | SGXZ68471531/SGXZ20405353 |
| Bloomberg ticker | MSIFAQS SP/MSIFCQS SP | MSIFAQU SP/MSIFCQU SP | MAMSIAS SP/MAMSICS SP |
| Base currency | SGD | ||
| Mode of subscription | Cash and SRS | Cash | Cash and SRS |
| Minimum investment | SGD1,000/SGD100,000 | USD1,000/USD100,000 | SGD1,000/SGD100,000 |
| Distribution frequency1 | Declare quarterly distributions on 15th calendar day of March, June, September and December (or the next Business Day if that day is not a Business Day) | ||
| Management fee | 1%/0.8% p.a | 1%/0.8% p.a | 1%/0.8% p.a |
| Initial sales charge | Currently up to 3.0% | ||
| Dealing frequency | Daily | ||
| Investment manager | Manulife Investment Management (Singapore) Pte. Ltd. | ||
| Fund size | SGD 407.3 million (as of 31 Jan 2024) | ||
Class A-QDis SGD
| Class A- QDis SGD |
|
|---|---|
| Investment objective | The Fund aims to provide investors with long-term capital appreciation and/or income in SGD terms through investing primarily in Asian investment grade fixed income or debt securities. |
| Base currency | SGD |
| Mode of subscription | Cash and SRS |
| Share class currency | SGD |
| Launch price | SGD 1.00 per unit |
| Minimum investment | S$1,000 |
| Distribution frequency | Declare quarterly distributions on 15th calendar day of March, June, September and December (or the next Business Day if that day is not a Business Day) |
| Management fee | 1% p.a. |
| Initial sales charge | Up to 3.0% |
| Initial sales charge | Up to 3.0% |
| Dealing frequency | Daily |
| Investment manager | Manulife Investment Management (Singapore) Pte. Ltd. |
1. The intention of the Manager to make the quarterly distribution and the distribution yield for the Fund is not guaranteed, and the Manager may in future review the distribution policy depending on prevailing market. Intended payout rate is up to 4.5% of NAV p.a. or 6% of NAV p.a. for the distribution share classes and decumulation share classes of the Fund respectively as stated in the prospectus. Prior to 1 December 2022, the intended payout for distribution share classes was up to 4% p.a.
2. The Manulife SGD Income Fund has delivered 4.04% average annualised distribution yield from 2017 to 31 December 2022 for distribution classes. Distributions are not guaranteed. Investors should refer to the prospectus for the distribution policy of the Fund. Investors should also refer to disclosures relating to dividend distributions of the Fund at www.manulifeim.com.sg. The average annualised distribution yield would be equal to average of the quarterly distribution ratio multiply by the frequency of distribution in a year, and quarterly distribution ratio is calculated by dividing the dividend payment over the ex-dividend date NAV. It may be higher or lower than the actual annual dividend yield.
3. Data as of 28 February 2023, for Class A-QDis SGD, calculated based on NAV-to-NAV basis on a cumulative basis. Past performance is not indicative of future performance. For the past 1 year, the Fund returned -3.70% on NAV-to-NAV basis and -6.59% on offer-to-bid basis. Since inception (18 November 2016), the class returned 0.57% (annualised) on NAV-to-NAV basis and 0.08% on offer-to-bid basis, annualised with net income & dividends reinvested.
4. Inception date for Class A-QDis SGD: 18 November 2016.
5. Investment grade bonds in general have lower default risk compared to non-investment grade or high-yield bonds. This results in potentially more stable or predictable returns.
6. The Decumulation Classes are intended to be de-cumulating where the intended distribution rate may result in a substantial amount of the initial capital being returned to investors. This may, over time, cause the NAV of such Classes to fall below the minimum number of units of the Class such that the Manager has the absolute discretion to terminate the relevant Class.
7. Bloomberg, 31 December 2022. In US dollar terms for the period 31 December 2012 to 31 December 2022 unless otherwise noted. Asian bonds (ex-Japan) are represented by 50% JPMorgan Asia Credit Index + 50% JPMorgan Asia Diversified Broad Index (JADE Broad); Asian high yield bonds (ex-Japan) are represented by JPMorgan Asian Credit Non-Investment Grade Index; Asian equities (ex-Japan) are represented by MSCI AC Asia Pacific ex Japan Index; EM debt are represented by 50% JPMorgan GBI-EM Broad Index + 50% JPMorgan CEMBI Index; EM equities are represented by MSCI Emerging Market Equity Index; Euro government bonds are represented by BofA Merrill Lynch Euro Government Index; Global aggregate bonds are represented by Bloomberg Barclays Global-Aggregate Total Return Index; Global corporate bonds are represented by BofA Merrill Lynch Global Corporate Index; Global equities are represented by MSCI World; Global high yield bonds are represented by BofA Merrill Lynch Global High Yield Index; Money markets (cash) are represented by BofA Merrill Lynch US Dollar 3-Month Deposit Offered Rate Average Index; Real estate are represented by Dow Jones Composite REIT Total Return Index; US Treasuries are represented by BofA Merrill Lynch US Treasury Index. Risk is measured in terms of the standard deviation.
8. Bloomberg, Economic Survey, 31 December 2022. *The information herein may contain projections or other forward-looking statements regarding future events, targets, management discipline or other expectations, and is only as current as of the date indicated. There is no assurance that such events will occur, and may be significantly different than that shown here.
9. Manulife Investment Management, Bloomberg. Sovereign ratings based on the median rating between S&P, Moody’s and Fitch, as of 31 December 2022. Past performance is not indicative of future performance.
10. Data as of 31 December 2022. Based in China, Manulife TEDA Fund Management Company Limited is a wholly-owned subsidiary of Manulife with effect from 29 November 2022. Including Mahindra Manulife Investment Management Private Limited, a 49% joint venture of Manulife and Mahindra.
Important Information
Manager of the Fund: Manulife Investment Management (Singapore) Pte. Ltd. (“Manulife”) (Company Registration Number: 200709952G). The information provided herein does not constitute financial advice, an offer or recommendation with respect to the Fund. Opinions, forecasts and estimates on the economy, financial markets or economic trends of the markets mentioned herein are not necessarily indicative of the future or likely performance of the Fund. The Fund may use financial derivative instruments for efficient portfolio management and/or hedging.
Investments in the Fund are not deposits in, guaranteed or insured by the Manager and involve risks. Past performance of the manager or sub-manager is not necessarily indicative of its future performance. The value of units in the Fund and any income accruing to them may fall or rise. Past performance of the Fund is not necessarily indicative of future performance. Investors should read the prospectus, and seek advice from a financial adviser before deciding whether to purchase units in the Fund. A copy of the prospectus and the product highlights sheet can be obtained from Manulife or its distributors. In the event an investor chooses not to seek advice from a financial adviser, he should consider whether the Fund is suitable for him.
Distributions are not guaranteed. Investors should refer to the prospectus for the distribution policy of the Fund. The Manager shall have the absolute discretion to determine whether a distribution is to be made in respect of the Fund as well as the rate and frequency of distributions to be made. Distributions may be made out of (a) income, or (b) net realized gains, or (c) capital of the Fund, or (d) any combination of (a), (b) and/or (c). Past distribution yields and payments are not necessarily indicative of future distribution yields and payments. Any payment of distributions by the Fund is expected to result in an immediate decrease in the net asset value per unit of the Fund. Investors should refer to distribution disclosures at www.manulifeam.com.sg.
This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Sources:
2. Bloomberg, as of 30 April 2020. Among the eight major Asian currencies (Singapore dollar, Chinese renminbi, Indonesian rupiah, Indian rupee, South Korean won, Malaysian ringgit, Thai Baht, and Philippine peso), Singapore dollar has the second-lowest volatility (standard deviation) at 5.58% p.a. against US dollar over 20 years to April 2020.
3. Bloomberg, as of 30 April 2020. Among the eight major Asian currencies (Singapore dollar, Chinese renminbi, Indonesian rupiah, Indian rupee, South Korean won, Malaysian ringgit, Thai Baht, and Philippine peso), Singapore dollar was ranked second during the Global Financial Crisis (March 2008–March 2009) and fourth during the market sell-off due to COVID-19 (March 2020), with returns against US dollar of -10.6% and -2.07% respectively. Past performance is not an indication of future results.
4. Moody’s Investors service, S&P, and Fitch, as of 8 May 2020.
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