Manulife Preferred Income Fund

March 31, 2014

WHY YOU SHOULD INVEST

  • Steady, competitive income stream of 5 per cent annualized distribution (paid monthly)
  • Reduced risk relative to common shares because preferred shares rank more senior in corporate capital structure
  • Tax efficiency (through its dividend tax treatment)

HOW YOUR MONEY IS INVESTED

Sector Allocation (%)

Sector Allocation (%)

Geographic Allocation (%)

Geographic Allocation (%)

Top Holdings %
Govt Canada 5.6
Tri B Pfd Tri Var Pfd Ser B 4.1
BCE Inc Float% Pfd 3.7
Bam R Pfd Bam 5.40% Pfd Ser 24 3.2
Talisman Energy 4.2% Pfd Series 1 3.2
Power Financial 4.4% Pfd 3.0
Royal Bank 2.9
Mfc B Pfd Mfc 4.65% Pfd Ser 2 2.8
Pwf L Pfd Pwf 5.1% Pfd Ser L 2.7
Aimia Inc 6.25% Pfd Ser 3 2.6
TOTAL 33.7

PERFORMANCE

Growth of $10,000
($)
Growth of $10,000
For illustration purposes only
 
Annual Compound Returns (%) & Quartile Rankings
YTD 6 mo. 1 yr. 3 yr. Since Inception
Manulife Preferred Income Fund 2.1 -0.4 -7.7 0.9 3.4
S&P/TSX Preferred Share 1.3 -0.2 -7.0 -2.1
CIFSC Category Avg. 2.6 1.5 -4.1 2.2
Quartile Ranking 4 4 4 4
 
Calendar Year Returns (%)
2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
-7.2 4.8 4.7 5.2
 

VOLATILITY METER

VOLATILITY METER


FUND FACTS

Launched: April 20, 2009
AUM: $79.8 million
Lead Manager: Randy LeClair
 
 
Lead Manager Tenure: Since inception
Sub-advisor: Manulife Asset Management Limited
CIFSC Category: Preferred Share Fixed Income
Distribution Frequency: Monthly
Target Distribution: $0.042
Positions: 56

BUY GUIDE (ADVISOR SERIES)

NAV: $9.29
MER: 2.14%
Management Fee: 2.00%
Fund Codes:
FE—MMF4560
LL—MMF4760
DSC—MMF4460
(Also available in Series F, T, Elite, Elite T)
Minimum Investment:
$500 Initial; $25 PAC
INVESTMENT OBJECTIVE & STRATEGY

To generate steady income and achieve capital preservation and appreciation by investing primarily in preferred shares of Canadian companies, royalty and income trusts and fixed income securities.

BUY STRATEGY

Only buys excellent businesses that:

  • Managers understand completely
  • Have exceptional management teams
  • Possess long-term competitive advantages
  • Operate in industries with strong long-term fundamentals
  • Are attractively priced
  • Have historically high return on equity and free cash flow
SELL DISCIPLINE

Key parameters of manager's sell process are:

  • Material change in the business
  • Trading at excessive valuations
  • Poor returns, replaced with better investment opportunities
INVESTMENT THEMES
  • The portfolio manager diversifies the portfolio by credit rating, preferred type and sector


  • The portfolio manager seeks to invest ahead of major asset class and sector events


  • The portfolio manager has extensive experience managing fixed income portfolios, and applies this expertise and conservative management style to a market typically dominated by equity managers

Distributions are not guaranteed and may fluctuate and should not be confused with a fund's performance, rate of return, or yield. Distributions paid as a result of capital gains realized by a fund and income and dividends earned by a fund are taxable in the year they are paid.

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 prospectus of the mutual funds in which investment may be made under the asset allocation service before investing. The indicated rates of return are based on 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 indicated rates of return are based on the historical annual compounded total returns of the participating funds including changes in share/unit value and reinvestment of all dividends/distributions and do not take into account sales, redemptions, 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. The rates of return shown are used only to illustrate the effects of the compound growth rate and are not intended to reflect future values of the mutual fund or asset allocation service, or returns on investment in the mutual fund or from the use of the asset allocation service. This commentary reflects the views of the sub-advisor of Manulife Mutual Funds. These views and the investment themes are subject to change as market and other conditions warrant. Manulife Funds and Manulife Corporate Classes are managed by Manulife Mutual Funds. Manulife, Manulife Mutual Funds, the Manulife Mutual Funds For Your Future logo, the Block Design, and Strong Reliable Trustworthy Forward-thinking are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.