Manulife Investment Management (M) Berhad announced today (May 8) the launch of the Manulife Global Income Optimiser Fund. The Fund is a wholesale feeder fund that invests at least 85% of its net asset value into FTGF Brandywine Global Income Optimiser Fund (Target Fund), which is an outcome oriented fixed income solution that focuses on capturing the upside potential from return-seeking fixed income while maintaining the volatility and defensive characteristics of core-like bond exposures.
The Target Fund aims to generate a regular income stream for investors through dynamic allocations across global fixed income sectors, markets, and securities.
The Target Fund adopts a “3D” investment approach to enhance overall portfolio resilience, helping to address some of the key investment concerns among investors today, such as market volatility, rising inflation, and an uncertain interest rate environment.
- Dual approach: Applies a differentiated, proven process that combines top-down analysis of macroeconomic conditions with bottom-up fundamental research to identify global, cross-sector opportunities that potentially offer the most compelling combinations of valuations and durable fundamentals.
- Dynamic sector rotation: Adapts sector exposures to align with market environment, and invests in all types of sovereign bonds, investment grade/high yield credit, emerging market bonds and structured credit dynamically without any geographical or sector bias.
- Downside management: Invests selectively and with a margin of safety mentality, and responds actively to changing market environment.
Jason Chong, CEO, Manulife said, “The underlying fund of our new solution has a good track record of combining diversified sources of return and income, while keeping return and volatility relatively stable over time. This makes it particularly suitable for investors who seek regular income to support their retirement.”
“The investment objective of the Target Fund is to maximise income yield in all market conditions while preserving capital, and the key to this is diversifying market risks with a dynamic fixed income portfolio. This includes active duration management and a true multi-sector approach to fixed income investing. Such an approach is essential, as fixed income sectors perform differently over time. A dynamic and diversified global strategy can help investors achieve their investment goals by rotating to different fixed income securities as market conditions change.”
Ng Chze How, Head of Retail Wealth Distribution, Manulife said, “We expect a rebound in the bond markets in 2023, especially for corporate bonds. Although spread volatility will most likely stay elevated in the short term, yields offer investors attractive income to compensate for the bumpy ride. Reported data shows that corporate profitability is still well above pre-COVID levels, which should support high-yield issuer access to capital markets.”
“Numerous signs show that inflation has peaked, including tighter financial conditions and economies slowing at a time when the lag effects of these tight financial conditions are beginning to impact their underlying economies. The strategy will deploy capital tactically to tap value opportunities. We believe select higher quality credit exposure and longer duration will be able to endure short-term volatility while delivering compelling income.”
The Fund is suitable for sophisticated investors who seek regular income and investment exposure in global debt securities, and have a long-term investment horizon.
