Manulife Asset Management – Asian Small Cap Equity Fund Review
Fund objective
Manulife Asset Management – Asian Small Cap Equity Fund seeks to provide long-term capital growth by investing all or substantially all of its assets into share class I of the underlying fund, Manulife Global Fund – Asian Small Cap Equity Fund (“MGF-ASCEF”), a sub-fund of Manulife Global Fund (“MGF”). MGF is constituted in Luxembourg. The investment objective of MGFASCEF is to provide long-term capital growth for those who hold a long-term investment view and are prepared to accept significant fluctuations in the value of their investments. MGF-ASCEF’s investment portfolio will be made on a diversified basis, for which its underlying securities will consist mainly of equity-related investments and equities of smaller capitalisation companies in the Asian and/or Pacific region. A proportion of MGF-ASCEF may be invested in warrants, bonds, convertible bonds issued by, or in respect of, such companies.
Investment Strategy
Manulife Asset Management – Asian Small Cap Equity Fund will achieve its investment objective by investing all or substantially all its assets into share class I of MGF – Asian Small Cap Equity Fund. The investment objective of the underlying fund is to provide long-term capital growth for those who hold a long-term investment view and are prepared to accept significant fluctuations in the value of their investments. The underlying fund’s investment portfolio will be made on a diversified basis, for which its underlying securities will consist mainly of equity-related investments and equities of smaller capitalisation companies in the Asian and/or Pacific region.
A proportion of the underlying fund may be invested in warrants, bonds, convertible bonds issued by, or in respect of, such companies. Subject to any applicable regulations, the underlying fund will invest in the shares of companies within the respective countries or regions which are not quoted on a stock exchange approved by the investment manager, but only where the investment manager consider there to be a reasonable expectation of these securities being quoted.
Manulife Asset Management – Asian Small Cap Equity Fund may invest in debt securities (whether or not of investment grade) and depository receipts of companies within their respective countries or regions which may be listed or traded outside such countries or regions. The underlying fund may invest directly in certain China A-shares listed on the Shanghai Stock Exchange (“China A-Shares”) via the Shanghai-Hong Kong Stock Connect scheme (“Shanghai – Hong Kong Stock Connect”). In any event where the underlying fund invests in China A-Shares, it is expected that the underlying fund will not hold more than 30% of its total net asset value in China A-Shares.
Who is Manulife Asset Management – Asian Small Cap Equity Fund suitable for?
Manulife Asset Management – Asian Small Cap Equity Fund is only suitable for investors who:
- seek long-term capital growth
- are comfortable that the price and value of the Units, as well as any derived or accrued income, may fall or rise, with potential loss of the original amount invested
Dividend or Income payout frequency: N.A.
For additional assessments on product suitability, please obtain professional advice from a qualified Financial Adviser.
What are the key risks of Manulife Asset Management – Asian Small Cap Equity Fund?
The value of Manulife Asset Management – Asian Small Cap Equity Fund and its dividends and coupons (if any) may rise or fall. You may lose some or all of your investment depending on the performance of the underlying securities. Factors that may affect the performance of these securities include, without limitation, market risks, fluctuations in interest rates and foreign exchange rates, political instability, exchange controls, changes in taxation and foreign investment policies.
Some of the key risks associated with Manulife Asset Management – Asian Small Cap Equity Fund are described below:
Market and Credit Risks
- You are exposed to securities risk in the Asian and/or Pacific markets
- You are exposed to emerging market risk
- You are exposed to interest rate and credit risk
- You are subject to tax exposure
- You are exposed to currency risks
- You are exposed to counterparty risk
Liquidity Risks
- You can realise your units only on Dealing Days
- Your realisation request may be deferred
- You may not realise your units during any period where realisation is suspended
Product-Specific Risks
- You are exposed to small-cap risks
- You are exposed to financial derivative instruments (“FDIs”) risk
- You are exposed to risks associated with China A-Shares
Investment Fees and Charges
For a limited time (Until 31 Dec 2023), speak to a MAS licensed licensed financial adviser which has committed to offering our readers a flat 1% Subscription fee (Initial Sale Charge) for all Unit Trust Funds investment.
Learn more about the limited time offer on 1% Initial Sales Charge. Terms and conditions may apply.
Where can I get more details about Manulife Asset Management – Asian Small Cap Equity Fund
- Manulife Asset Management – Asian Small Cap Equity Fund (Open in New Window)
- Manulife Asset Management – Asian Small Cap Equity Fund Product Highlight Sheet (Open in New Window)
- Speak to a licensed licensed financial adviser
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