MANULIFE FLOATING RATE INCOME FUND

FIXED INCOME
MANULIFE FLOATING RATE INCOME FUND
As at May 31, 2015
Advisor Series
The Fund seeks to mitigate the effects of rising interest rates by investing primarily in floating rate loans, which can potentially perform well
in a rising rate environment.
PERFORMANCE
HOW THE FUND IS INVESTED
As at April 30, 2015
Top holdings
Growth of $10,000 since inception
±
12,500
$12,229
ROCK OHIO CAESARS LLC 27-Mar2019
1.6
11,500
TROX GmbH FRN 19-Mar-2020
1.5
11,000
CHS / COMMUNITY HEALTH SYS INC
- SYNDICATED LNS 22-Jan-2021
1.4
SUPERVALU INC - SYNDICATED LNS
21-Mar-2019
1.3
WIDEOPENWEST FIN LLC SYNDICATED LNS 28-Mar-2019
1.3
NAVISTAR INTERNATIONAL CORP
17-Aug-2017
1.2
TOWER AUTOMOTIVE HLDGS USA
LLC - SYNDICATED LNS 23-Apr-2020
1.2
US TELEPACIFIC CORP - SYNDICATED
LNS 25-Nov-2020
1.1
NEP/NCP HOLDCO INC 22-Jan-2020
1.1
HILLMAN CO 31-Dec-2021
1.1
12,000
($)
%
10,500
10,000
9,500
Aug 10
Aug 11
Aug 12
Aug 13
Aug 14
Annual compound returns (%)
1 mo. 3 mo. 6 mo.
-0.02
Fund
0.37
YTD
1 yr.
3 yr.
5 yr.
1.22
0.11
4.38
–
-0.35
Since
10 yr. inception
–
4.30
Calendar year returns for the Fund (%)
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
0.72
5.59
9.82
-0.75
–
–
–
–
–
–
Total
12.8
FUND DETAILS
Inception date: August 19, 2010
Risk profile: Low to Medium
AUM: $501.4 million
NAV: $10.01
Lead manager: Dennis McCafferty
MER (audited): 1.73%
Co-manager: John Addeo
Management fee: 1.40%
Sub-advisor: Manulife Asset Management
(US) LLC
Min. investment: $500 initial; $25 PAC
CIFSC category: High Yield Fixed Income
Distribution frequency: Monthly
Distribution yield: 4.04%≠
Positions: 157
¤
Fund codes (MMF)
Series
Advisor
T
F
FT
Elite^
Elite T^,~
FE
4573
1509
–
–
–
–
LL
4773
1309
–
–
–
–
DSC
4473
1209
–
–
–
–
Other
–
–
4673
1009
4873
1809
Also available in Dollar-cost averaging fund
code.
Credit allocation (%)
„„ 85.1 US Floating Rate Bank Loans
„„ 4.2 US High Yield Non-Floating
Rate Notes
„„ 3.4 US High Yield Floating Rate
Notes
„„ 2.5 Cash
„„ 4.8 Other
Geographic allocation (%)
„„ 69.7 United States
„„ 6.2 Canada
„„ 1.9 Netherlands
„„ 1.7 Hong Kong
„„ 0.9 Czech Republic
„„ 0.8 Cayman Islands
„„ 0.6 Bermuda
„„ 0.5 Marshall Islands
„„ 0.5 Luxembourg
„„ 17.2 Other
Source for all data: Lipper, a Thomson Reuters company, as at May 31, 2015. ±For illustration purposes only. ≠Distribution yield is calculated based on prior 12-month rolling average of paid distributions
and using average month-end net asset value, per security. The distribution yield does not include any year-end capital gains distributions paid in addition to the regular monthly distributions. Distribution
yield should not be confused with a fund’s performance or rate of return. ¤As of December 31, 2014 (includes HST). ^Available to investors with $100,000 or more. ~Elite T series are capped to all new
purchases as of July 30, 2014.
INVESTMENT PHILOSOPHY
The portfolio management team seeks to deliver competitive total returns by using a value approach to identify out-of-favour,
undervalued companies with an attractive long-term outlook. By investing in companies where a catalyst for unlocking value and restoring
confidence can be identified, with an emphasis on downside risk protection.
INVESTMENT PROCESS
Idea generation
„„Portfolio manager and
credit research analyst
coverage
„„Improving cash flow
„„Deleveraging balance
sheet
„„Industries in turmoil
„„Special situations that
lead to dislocated
prices
„„Distressed companies
„„Extensive sell side
contacts
Bottom up
fundamental research
Portfolio construction
„„Deep credit research
„„Evaluate business risks
„„Sustainability of
business model
„„Industry capacity
trends
„„Confidence in
management
„„Evaluate financial risks
„„Cash flow profile
„„Asset valuations
„„Construct portfolio
focused on income
generation and total
return
„„Consider upside/
downside probabilities
at time of purchase
„„Seek best risk-reward
within rating and
capital structure
„„Low turnover
Risk management
„„Liquidity evaluated for
all positions
„„Broad industry
representation
„„Position sizes typically
<5%
„„Monitor portfolio
companies for material
changes
FOR MORE INFORMATION, PLEASE CONTACT YOUR ADVISOR
OR VISIT MANULIFEMUTUALFUNDS.CA
Manulife Funds are managed by Manulife Investments, a division of Manulife Asset Management Limited. Commissions, trailing commissions, management fees and expenses all may be associated with
mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns 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 that would have reduced returns. Mutual funds are not
guaranteed, their values change frequently and past performance may not be repeated. The rate of return shown is used only to illustrate the effects of the compound growth rate and is not intended to
reflect future values or returns on investment. The payment of distributions is not guaranteed and may fluctuate. If distributions paid by the fund are greater than the performance of the fund, then your
original investment will shrink. Distributions should not be confused with a fund’s performance, rate of return, or yield. You may also receive return of capital distributions from a fund. Please consult with
your tax advisor regarding the tax implications of receiving distributions. See the prospectus for more information on a fund’s distributions policy. Manulife, Manulife Investments, and 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 licence.