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Manulife Global Multi-Asset Diversified Income Fund

A truly global multi-asset income solution

Multiple income sources for new growth horizons

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Flexible and diversified allocation to maximise income and growth

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Equity option strategy for potential downside protection

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Multiple income sources for new growth horizons

 

Deploy multiple income sources for new growth horizons

  • In today’s low-rate environment, investors are looking for higher yields in addition to steady incomes in their portfolios. To meet these goals, an increasing number of investors are choosing non-traditional income assets, such as preferred securities, real estate investment trusts (REITs) and equity option strategies.
 
  • These non-traditional assets can be beneficial because they provide relatively higher yields and have a low correlation to other assets.
 
  • A multi-asset allocation approach, which includes a mix of bonds and equities, could potentially help investors create solid and stable income. This approach may also add a defensive tilt to the portfolio during market stress periods.

 

AP REITs_updated_071720
Performance during market volatility
Traditional and non-traditional asset classes

Flexible and diversified allocation to maximise income and growth

Flexible and diversified allocation

  • A wide range of asset classes across different investment styles and regions, together with a flexible investment strategy, opens up income opportunities.
 
  • A mix of asset with low correlation can provide diversification benefits and potentially improve risk adjusted returns. 
Traditional and non-traditional income sources tend to be less correlated
Traditional and non-traditional income sources tend to be less correlated

Source: Bloomberg, correlation coefficient is calculated based on weekly performance from December 2006 to December 2021.

Correlation ranges from +1 (perfect positive correlation) to -1 (perfect negative correlation). Relatively low correlation refers to correlation coefficients equal to or smaller than 0.5, moderate correlation between 0.5 and 0.75 (inclusive), and relatively high correlation above 0.75. Representative indices of each asset classes: Global REITs measured by FTSE Nareit Global REIT Index, Preferred securities measured by ICE BofAmL Fixed Rate Preferred Securities Index, Equity option strategies measured by 50% CBOE S&P 500 BuyWrite Index and 50% CBOE S&P 500 PutWrite Index, IG corp bond measured by BBgBarc Global Agg Corp Bond Index, HY corp bond measured by BBgBarc Global High Yield Corp Index, EM bond measured by J.P. Morgan EMBI Index, Global equities measured by MSCI AC World Index.

 

 

Equity option strategy for potential downside protection

 

Provide a potential downside buffer through equity option strategies

Based on historical data, while equities generally provide higher returns over time, they have higher volatility than bonds. Investors can use equity option strategies to potentially gain high yields through premiums while managing the risk in equities and also reduce volatility in their investments. This strategy is helpful in seeking a downside buffer during periods of market stress.

Performance during market volatility
Performance during market volatility

Source: Bloomberg, Morningstar.

Equity option strategies refer to 50% CBOE S&P 500 BuyWrite Index and 50% CBOE S&P 500 PutWrite Index. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

 

 

Contact your unit trust adviser or call our Customer Service at 03-2719 9271 for more information.

 

 

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