Three Manulife Investments mutual funds achieve 5-Star Morningstar Ratings
Places them in the top 10 per cent of funds
TSX/NYSE/PSE: MFC SEHK:945
Option Trading Partners – Manulife Investments, a division of Manulife Asset Management Limited, today announced that three of its mutual funds, Manulife Dividend Income Fund, Manulife Dividend Income Class and Manulife Strategic Balanced Yield Fund have attained the 5-Star Morningstar Rating.
“Since these funds were launched in 2012, they have delivered outstanding risk-adjusted performance. After recently celebrating their three year anniversary, they were awarded Morningstar’s highest star rating,” said Derek Saliba, Assistant Vice President, Manulife Investments. “The 5-Star Rating is one of the highest ratings in the industry and is a testament to the strength of their management teams and how they’ve delivered for investors.”
The 5-Star Morningstar Rating indicates that these funds were ranked top decile in their respective categories for risk-adjusted returns over a three year period. The following table illustrates the funds’ strong performance over all time periods, low volatility as measured by standard deviation, and risk-adjusted returns measured by the Sharpe Ratio (annualized excess return over the risk-free rate divided by its annualized volatility) and Sortino Ratio (annualized excess return over the risk-free rate divided by its annualized downside volatility):
Since inception return (%)*
1 year return (%)
% Rank in category
# of funds in category
3 year return (%)*
% Rank in category
# of funds in category
Standard Deviation (%)*
Sharpe Ratio
Sortino Ratio
Manulife Dividend Income Fund
17.25
17.31
4
476
17.52
2
332
5.69
2.72
6.93
Manulife Dividend Income Class
16.57
16.95
5
476
16.84
3
332
5.60
2.65
6.57
Manulife Strategic Balanced Yield
Fund
14.83
14.62
15
926
15.01
6
616
5.64
2.35
4.71
*Annualized
Since inception date: March 22, 2012.
Source: Morningstar, as at March 31, 2015.
Performance histories are not indicative of future performance.
Manulife Dividend Income Fund and Manulife Dividend Income Class invest primarily in attractively priced Canadian dividend-paying equities with added diversification through some exposure to large multinational firms in the U.S. The combination of an attractive dividend yield, potential tax efficiency and the long-term growth potential helps make these strategies appealing to investors. The mutual funds’ managers, Alan Wicks, Jonathan Popper and Conrad Dabiet of Manulife Asset Management (MAM), utilize a fundamental, bottom-up value based process that provides the potential for downside protection by focusing on companies that may produce predictable cash flows, have very low financial leverage and that have control over their input costs.
Manulife Strategic Balanced Yield Fund offers exposure to a diversified portfolio consisting primarily of U.S. dividend-paying equities and global multi-sector bonds. The fund provides a monthly distribution and utilizes a detailed 7-step research process to seek out both value and growth companies that may compound cash flows and grow earnings, with the aim of achieving dividend growth and a yield premium over the benchmark index. The fund is managed by two experienced teams, on the equity side, Sandy Sanders, Walter McCormick and Michael Mattioli of Manulife Asset Management US (LLC) and on the fixed income side, Daniel Janis, Thomas Goggins and Dennis McCafferty, also of Manulife Asset Management US (LLC).
The Morningstar Rating is a quantitative assessment of a fund’s past performance, both return and risk, as measured from one to five stars. It rewards consistent performance and reduces the possibility of strong short-term performance masking the inherent risk of a fund. For more information, see www.morningstar.ca
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