Manulife Asset Management (Taiwan) Raises USD130 Million During IPO of Manulife China Dim Sum USD High Yield Bond Fund

TAIPEI, Taiwan, July 22, 2011 /PRNewswire/ -- Manulife Asset Management (Taiwan) is pleased to announce that the Manulife China Dim Sum USD High Yield Bond Fund had a successful IPO in early July 2011, raising more than USD130 million. The fund is the first of its kind in Taiwan and invests in renminbi (RMB) denominated Dim Sum bonds offered in Hong Kong to capture the potential appreciation of the currency.  

The Portfolio Manager started investing as soon as the fund was established on July 21, 2011, and full portfolio construction is expected within a month. The fund offers two share classes, accumulation and monthly dividend distribution, to meet various clients' needs and is available to institutional and retail investors through direct sales and selected banks.

Robert A. Cook, Senior Executive Vice President and General Manager, Asia, said, "The Manulife China Dim Sum USD High Yield Bond Fund is the first RMB-backed bond fund launched in Taiwan. I am very pleased that this product is well-received in Taiwan and gives Taiwanese investors the opportunity to get RMB exposure in their fund portfolios. Manulife Asset Management (Taiwan) has a proven track record of innovation, creating quality wealth products to meet customer needs. As part of Manulife's long-term strategic plan in the Greater China and the rest of Asia, we are dedicated to pioneering forward-thinking financial solutions."

Penny Chen, Portfolio Manager at Manulife Asset Management (Taiwan), said, "The time is right to introduce a bond fund investing in Dim Sum bonds given the potential long-term trend of the RMB appreciation and the strong demand for bond investments denominated in the currency." The development of the Dim Sum bond market lets foreign investors enjoy the high-credit quality of Dim Sum bond issuers and the potential currency appreciation. The market is growing rapidly due to strong investment needs and a significant growth of new issues. The amount of new issues jumped to RMB 40 billion in 2010 from RMB 16 billion in 2009, and has already reached RMB 80 billion as of 30 June 2011. It is expected to climb to RMB 150 billion by the end of 2011, potentially crossing RMB 300 billion by the end of 2012.

Penny Chen also noted that the portfolio of the Manulife China Dim Sum USD High Yield Bond Fund has an average BBB credit rating from issuers, making it higher than most USD high yield bonds. It will offer an expected return similar to that of USD high yield bonds, as well as aim to provide investors with higher credit quality and lower volatility. The fund will invest in sectors that will benefit from the rapid economic growth in China, such as the power supply, energy and infrastructure sectors. Meanwhile, the fund's low duration will also protect investors from the current rising interest rate environment.

Manulife Asset Management (Taiwan) works closely with its parent office in Hong Kong and serves as the investment advisor for the fund. This alliance will strengthen the existing expertise of the Taiwan-based team in identifying, researching and selecting companies with investment value, providing them with experience in the Dim Sum bond market. Earlier this month, the Manulife Asset Management Hong Kong office was awarded Hong Kong Hospital Authority Provident Fund Scheme's first ever Dim Sum bond mandate, managing approximately USD 15 million of CNH bonds.

Please call 0800-070-998 or link to www.manulife-asset.com.tw for further information.

About Manulife Asset Management Taiwan

Manulife Asset Management (Taiwan) Co. Ltd. was licensed in 1998 and became a member of Manulife Financial in Oct. 2008. Manulife Asset Management (Taiwan) issues and manages independent mutual funds, and also handles discretionary trust investment business in Taiwan. Distribution networks include banks, brokers, and insurance companies, and also direct sales and discretionary trust investment business. Additional information about Manulife Asset Management (Taiwan) can be found at www.manulife-asset.com.tw.

About Manulife Asset Management

Manulife Asset Management™ is the global asset management arm of Manulife Financial. Manulife Asset Management and its affiliates provide comprehensive asset management solutions for institutional investors and investment funds in key markets around the world. This investment expertise extends across a full range of asset classes including equity, fixed income and alternative investments such as real estate, timber, farmland, as well as asset allocation strategies.

Manulife Asset Management has offices with full investment capabilities in the United States, Canada, the United Kingdom, Japan, Hong Kong, Singapore, Taiwan, Indonesia, Thailand, Vietnam, Malaysia and the Philippines. In addition, it has a joint venture asset management business in China, Manulife TEDA. It also has operations in Australia, New Zealand, Brazil and Uruguay. As at March 31, 2011 total assets under management were US$ 217 billion. Additional information about Manulife Asset Management can be found at ManulifeAM.com.

About Manulife Financial

Manulife Financial is a leading Canadian-based financial services group operating in 22 countries and territories worldwide. For more than 120 years, clients worldwide have looked to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions.  Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients around the world. We provide asset management services to institutional customers worldwide as well as reinsurance solutions, specializing in life and property and casualty retrocession. Funds under management by Manulife Financial and its subsidiaries were $478 billion (US$492 billion) as at March 31, 2011. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

Note:

The investment risks of RMB denominated Dim Sum bonds offered in Hong Kong is high due to its lower liquidity in the bond market and that some of the listed bonds are not investment class.

SOURCE Manulife Asset Management (Taiwan)