Manulife asset allocation portfolios

Our high caliber portfolios provide complete investment solutions for clients who prefer a disciplined approach to investing and the comfort of knowing professionals are actively managing risk. The portfolios are available on both mutual fund and segregated fund platforms.

Coming soon: New asset allocation webinar.

Save the date: August 17, 2020 at 1:00 PM EST

Diversification and active asset allocation—not the same

Diversification refers to how an investment portfolio is divided into various asset classes, such as stocks, bonds, and cash. Since different asset classes rarely perform in lockstep, the goal of diversification is to reduce investment risk, since positive returns from one asset class can be used to offset the returns from another that’s underperforming.

Active asset allocation takes diversification a step further. By determining which combination of assets can provide the highest return potential for a certain level of risk, it attempts to forecast the performance potential of a portfolio and reduce the chance of negative returns. Ongoing monitoring helps ensure the portfolio’s asset mix can adapt quickly to take advantage of changes in the financial markets. Active asset allocation is the same approach taken by large financial institutions and pension plans and is considered a best practice for wealth management.

There's a difference between diversification and asset allocation. Diversification is risk based, unchanging, and strategic. Asset allocation is outcome oriented, active, strategic, and opportunistic, and has a risk management emphasis.

Four actively managed portfolios

Manulife asset allocation portfolios consist of four actively managed fund-of-funds investment portfolios that include exchange-traded funds (ETFs). Each portfolio is designed for a specific risk tolerance and return objective.

They’re simple to understand, easy to buy, and provide your clients with access to some of the most popular mutual funds and ETFs that Manulife Investment Management offers in a single, one-ticket solution.

The x-axis shows  expected risk, and the y-axis expected return. Along the risk spectrum, there are four pie charts. The first pie is the Conservative Portfolio, with 80% fixed income and 20% equity. The next pie is the Moderate Portfolio, with 65% fixed income and 35% equity. The third pie is the Balanced Portfolio, with 45% fixed income and 55% equity. The final pie is the Growth Portfolio with 30% fixed income and 70% equity.

The presented asset allocation of the portfolios is for illustration purposes only. Actual asset allocation may vary. The asset allocation is based on the strategic mixes of each portfolio. Please refer to the fund facts for each portfolio investment mix.

Mutual fund portfolios

Features

  • Pension-style management and oversight are provided by Manulife Investment Management’s asset allocation team
  • Proprietary investment process is optimized by asset class, investment style, and geographical region
  • Actively managed to help protect capital and keep your clients positioned for ever-changing markets
  • Ongoing professional rebalancing to help manage each portfolio’s exposure to risk
  • Comprehensive reporting

Segregated fund portfolios

Features

  • Pension-style management and oversight are provided by Manulife Investment Management’s asset allocation team
  • Proprietary investment process is optimized by asset class, investment style, and geographical region
  • Actively managed to help protect capital and keep your clients positioned for ever-changing markets
  • Ongoing professional rebalancing to help preserve each portfolio’s exposure to risk
  • Comprehensive performance reporting
  • Potential creditor protection
  • Ability to bypass the estate
  • Death benefit guarantee
  • Maturity benefit guarantee
  • Available in either GIF Select InvestmentPlus or MPIP Segregated Pools

The presented asset allocation of the portfolios is for illustration purposes only. Actual asset allocation may vary. The asset allocation is based on the strategic mixes of each portfolio. Please refer to the fund facts for each portfolio investment mix.


Team and process

The team behind the portfolios—Manulife Investment Management’s asset allocation team

Applying active asset allocation successfully takes a proven team. Manulife Investment Management’s asset allocation team has built its reputation and global wealth management credentials on its asset allocation expertise. With over CAD $145 billion* in assets under management, the group manages a wide variety of investment solutions around the globe designed to meet investor goals.

The global portfolio management team is committed to quality investment management with offices in Boston, Toronto and Hong Kong. They are a team of over 35 dedicated investment professionals and are a leading provider of investment solutions with over $145B in AUM. They have over 350 years of collective asset allocation experiences across the team and expertise in forecasting over 140 classes of investments. As at December 2018.

The asset allocation team’s investment process

The asset allocation team’s investment process is amongst the most comprehensive in the industry and ensures every portfolio is optimized by asset class, investment style, and geographic region. The team applies a rigorous three-step process:

Step 1: build expected return forecasts

  • Five-year investment returns forecast for 140 different asset classes
  • Distinct approaches for asset classes
  • Quarterly review

Step 2: asset class and strategy selection

  • Asset allocation is the primary driver of returns
  • Selection of complementary strategies with an emphasis on consistent results
  • Annual review

Step 3: portfolio construction

  • Four-pillar approach to ongoing active management
  • Emphasis on managing risk
  • Short-term opportunities reviewed weekly

1 As at June 2019

Meet the team

Portfolio managers

Nathan W. Thooft, CFA

Senior Managing Director, Senior Portfolio Manager, Global Head of the Asset Allocation Team 

Manulife Investment Management

James Robertson, CIM

Senior Managing Director, Senior Portfolio Manager and Head of Asset Allocation Canada & Global Head of Tactical Allocation

Manulife Investment Management  

Portfolio Specialist

Benjamin W. Forssell, CFA

Managing Director, Global Multi-Asset Client Portfolio Manager 

Manulife Investment Management


Our funds

Since their inception in 2017 our asset allocation portfolios have delivered impressive performance for investors. Currently, these portfolios have an overall 4 and 5-star rating from Morningstar*.


Resources

Advisor marketing materials

Advisor overview (mutual funds) (advisor login required) Advisor overview (segregated funds) (advisor login required) Executive summary (segregated funds) (advisor login required) Manulife asset allocation portfolios’ quarterly snapshot (advisor login required) Manulife asset allocation portfolios’ underlying fund performance (advisor login required)

Asset allocation update and market outlook

Q2 2020 update

Philip Petursson, Chief Investment Strategist at Manulife Investment Management, is joined by James Robertson, Senior Managing Director, Senior Portfolio Manager, and Head of Asset Allocation, Canada at Manulife Investment Management. Philip and James discuss factors that contribute to today’s uncertain market conditions and why asset allocation positioning is more important than ever.

Learn more

Regulatory Materials

Important disclosure

Source: Morningstar Direct. Rate of return as of May 31, 2020 are as follows: Manulife Conservative Portfolio (Series F): 1 year return: 4.78%, 3 year return: 3.78% and 3.83% since inception May 5, 2017. Manulife Moderate Portfolio (Series F): 1 year return: 5.31%, 3 year return: 4.02% and 4.03% since inception May 5, 2017. Manulife Balanced Portfolio (Series F): 1 year return: 5.08%, 3 year return: 4.39% and 4.31% since inception May 5, 2017. Manulife Growth Portfolio (Series F): 1 year return: 5.47%, 3 year return: 4.39% and 4.31% since inception May 5, 2017.

Overall 5-star Morningstar Rating. The Star Ratings as of May 31, 2020 for Series F for the Funds shown, and the number of funds within their categories for each period are as follows: Manulife Conservative Portfolio within the Global Fixed Income Balanced category: 3-year period, 611 funds, 5 stars. Manulife Moderate Portfolio within the Global Fixed Income Balanced category: 3-year period, 611 funds, 5 stars. Manulife Balanced Portfolio within the Global Neutral Balanced category: 3-year period, 1292 funds, 4 stars. Manulife Growth Portfolio within the Global Equity Balanced category: 3-year period, 1025 funds, 4 stars. Series F is generally designed for investors who have a fee-based or wrap account with their dealer.  Series F performance is net of fees and expenses.  Advisor Series is also available and includes a 1.00% trailing commission.

The Morningstar Rating, commonly referred to as the Star Rating, relates how a fund has performed on a risk-adjusted basis against its Morningstar category peers and is subject to change every month. Calculations are based on the funds in each Morningstar Category to better measure fund manager skill. Funds are ranked by their Morningstar Risk-Adjusted Return scores with the top 10% of funds in a category receiving 5 stars, the top 22.5% receiving 4 stars. A fund in the middle 35% receiving 3 stars, a fund in the next 22.5% receiving 2 stars and a fund in the bottom 10% receiving 1 star.

The overall Star Rating for a fund is a weighted combination of its 3, 5 and 10 year ratings. Overall ratings are adjusted where a fund has less than 5 or 10 years of history. Please refer to www.morningstar.ca for greater detail on the calculation of the Star Ratings. © 2020 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service.  Please read the fund facts as well as the prospectus of the mutual funds in which investment may be made under the asset allocation service before investing.  The indicated rates of return are the historical annual compounded total returns assuming the investment strategy recommended by the asset allocation service is used and after deduction of the fees and charges in respect of the service. The returns are based on the historical annual compounded total returns of the participating funds including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns.  Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Manulife Asset Allocation Portfolios are managed by Manulife Investment Management Limited (formerly named Manulife Asset Management Limited). Manulife Investment Management is a trade name of Manulife Investment Management Limited. Manulife, Manulife Investment Management, the Stylized M Design, InvestmentPlus, and Manulife Investment Management & Stylized M Design are trademarks of The Manufacturers Life Insurance Company and are used by it and by its affiliates under license.

Manulife Asset Allocation Portfolios are available in the InvestmentPlus Series of the Manulife GIF Select, MPIP Segregated Pools and Manulife Segregated Fund Education Saving Plan insurance contracts offered by The Manufacturers Life Insurance Company.

The Manufacturers Life Insurance Company (Manulife) is the issuer of insurance contracts containing Manulife segregated funds and the guarantor of any guarantee provisions therein.  Manulife Investment Management is a trade name of The Manufacturers Life Insurance Company.

Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Age restrictions and other conditions may apply.