manulife global select (mpf) scheme quarterly fund fact...

1

EmployeeBenefitsProviderofChoice

As at September 30, 2017 | 2017 9 30 :

MPF MPF

6.2.2 6.2.3

Important to note: You should consider your own risk tolerance level and financial circumstances

before making any investment choices. When, in your selection of constituent funds or the Default Investment Strategy, you are in doubt as to whether a certain constituent fund or the Default Investment Strategy is suitable for you (including whether it is consistent with your investment objectives), you should seek independent financial and/or professional advice and make investment choices most suitable for you taking into account your circumstances.

The asset allocation of the Default Investment Strategy and some of the constituent funds which are referred to as Retirement Funds will change over time and hence the risk profile and return will also change over time. The Default Investment Strategy or the Retirement Funds may not be suitable for all members. You should understand the relevant risks involved before investment and consider factors other than age and review your own investment objectives.

The Manulife MPF Interest Fund and the Manulife MPF Stable Fund (collectively the Guaranteed Funds) under this scheme invests solely in approved pooled investment funds in the form of insurance policies provided by Manulife (International) Limited. The guarantee is also given by Manulife (International) Limited. Your investments in the Guaranteed Funds, if any, are therefore subject to the credit risks of Manulife (International) Limited. Please refer to sections 6.2.2 and 6.2.3 of the Offering Document for details of the credit risks, guarantee features and qualifying conditions.

Investment involves risks and not each of the investment choices would be suitable for everyone. You should consider the risks associated with each of the constituent funds and the Default Investment Strategy and your investments/accrued benefits may suffer significant loss.

Before making your investment choices, you should read the Offering Document for details including risk factors, fees and charges of the scheme. You should not make your investment decision based on this document alone.

Past performance is not indicative of future performance. Investment involves risks. Please refer to the Offering Document for details including risk factors, fees and charges of the scheme.

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF China Value Fund SHK136 01-02-2006

Fund Details () Fund Price (HK$) 25.397

Fund Expense Ratio 2.02%

Fund Descriptor

Equity Fund Greater China

() Fund Size (Million HK$) 25,368.9

1 Risk Indicator1 18.51%

Investment Manager of the Underlying Investment

Manulife Asset Management (Hong Kong) Limited

Investment Objective 3 Portfolio Allocation3 6 Top 10 Portfolio Holdings 6 (

( ) () ) ( )

To provide medium to long term capital growth Invests on a diversified basis mainly in shares of

companies covering different sectors of the economy in the Greater China region, including People's Republic of China, Hong Kong and Taiwan, and which are listed on any stock exchange subject to the restrictions in the MPF Schemes (General) Regulation (Regulation) and which have a value or growth proposition

1. Tencent Holdings Ltd. 8.90%

2. Taiwan Semiconductor Mfg Co. Ltd. 7.40% 3. HSBC Holdings PLC. 4.70%

4. China Construction Bank Corp. 2.90%

5. Ping An Insurance Co. Ltd. 2.70%

6. Hon Hai Precision Industry Co. Ltd. 2.70%

7. Largan Precision Co. Ltd. 2.70%

8. Bank of China (Hong Kong) Ltd. 2.60%

9. PetroChina Co. Ltd. 2.40%

10. AIA Group Ltd. 2.20% .

Cumulative Return (%) Annualized Return (% p.a.) Calendar Year Return (%)

3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 7.34 28.76 23.80 28.76 48.73 20.46 153.97 8.79 8.26 1.88 8.32 18.12 5.73 3.13 -3.30 -2.60 () 5 Dollar Cost Averaging (For illustration only) 5 15.88 21.97 26.10 40.58 48.81 13.32 9.20 6.63 6.58 12.09 5.22 5.80 -6.87 3.40

()

ManulifeGlobalSelect(MPF)SchemeQuarterlyFundFactSheet

Quarterly Fund Fact Sheet As at September 30, 2017 | 2017 9 30

2

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Healthcare Fund SHK137 02-04-2008



Fund Descriptor

Equity Fund Healthcare Sector





Investment Objective 3 Portfolio Allocation3 6 Top 10 Portfolio Holdings 6

To provide long term capital growth Invests on a diversified basis mainly in shares of

companies in health care and related industries, covering mainly in pharmaceutical, healthcare equipment & services, food & drug retails, managed care business and biotechnology sectors

1. Johnson & Johnson 7.52%

2. Pfizer Inc. 5.86%

3. Biogen Idec Inc. 4.76%

4. Allergan PLC. 4.53%

5. Merck & Co. Inc. 4.22%

6. Amgen Inc. 4.10%

7. Novo Nordisk A/S Sponsored ADR 3.82%

8. Roche Holding AG 3.71%

9. Medtronic PLC 3.53%

10. AbbVie Inc. 3.45% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 1.96 14.37 7.18 15.77 68.99

N/A 103.38 5.00 11.06

N/A 7.76 19.80 31.62 17.69 2.05 -7.31

() 5 Dollar Cost Averaging (For illustration only) 5 8.50 7.61 20.28

N/A 65.67 4.82 7.32

N/A 10.28 7.40 14.35 9.59 -1.78 -3.25

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Aggressive Fund SHK124 01-12-2000

Fund Details

() Fund Price (HK$) 19.049


Fund Descriptor

Mixed Assets Fund - Global - Mainly in equities and equity-related investments






To provide long term capital growth Mainly invests in equities and equity-related

investments Invests in any region such as America, Pacific Asia,

Japan, Europe, etc, with a relative bias towards Hong Kong and Pacific Asia region markets


2. HSBC Holdings PLC. 2.65%

3. AIA Group Ltd. 1.66%

4. Industrial & Commercial Bank of China Ltd. 1.32%


6. Bank of China Ltd. 1.06%

7. Amazon.com Inc. 1.05%


9. China Mobile Ltd. 0.80%

10. Taiwan Semiconductor Mfg Co. Ltd. 0.76% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 5.99 20.65 18.05 19.62 46.59 13.16 90.49 6.15 7.95 1.24 3.90 16.02 16.09 0.38 -1.58 0.32 () 5 Dollar Cost Averaging (For illustration only) 5 12.17 17.53 21.89 38.00 64.50 10.77 7.85 6.27 5.62 8.45 9.62 0.05 -3.77 2.94


3

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Fidelity Growth Fund SHK134 01-09-2003



Fund Descriptor

90% Mixed Assets Fund Global Approximately 90% in equities




( ) ( ) Manulife Asset Management (Hong Kong) Limited invests in the fund managed by FIL Investment Management (Hong Kong) Limited


90%

To provide long term capital growth Invests as a feeder fund into the respective APIF

(Approved Pooled Investment Fund) and approximately 90% of the APIF will be invested in global equities with a bias towards Hong Kong

Invests in the markets in Hong Kong, America, Europe, Japan and the Asia Pacific region








8. Hong Kong Exchanges & Clearing Ltd. 0.97%

9. China Life Insurance Co. Ltd. 0.93%

10. Royal Dutch Shell PLC. 0.87% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 5.96 20.18 16.66 18.92 44.89 27.59 175.59 5.95 7.70 2.47 7.46 16.15 16.59 1.03 -2.36 0.20 () 5 Dollar Cost Averaging (For illustration only) 5 11.84 16.29 20.74 38.97 58.68 10.04 7.47 6.41 6.28 7.92 9.41 0.62 -4.67 1.95

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Pacific Asia Equity Fund SHK128 01-12-2000



Fund Descriptor

Equity Fund Pacific Asia






To provide medium to long term capital growth Invests in shares of companies covering different

sectors of the Asia Pacific markets, excluding Japan and which are listed on any stock exchange

1. Samsung Electronics Co. Ltd. 5.11%

2. Taiwan Semiconductor Mfg Co. Ltd. 4.28%



5. Westpac Banking Corp. 2.23%

6. National Australia Bank Ltd. 1.90%

7. BHP Billiton Ltd. 1.85%

8. Commonwealth Bank of Australia 1.77%


10. Hon Hai Precision Industry Co. Ltd. 1.59% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 5.58 25.31 19.59 19.94 35.24 7.56 140.86 6.25 6.22 0.73 5.36 15.32 6.06 0.30 -7.74 4.53 () 5 Dollar Cost Averaging (For illustration only) 5 13.24 21.27 22.65 32.71 73.66 12.92 8.09 5.52 6.21 7.83 4.25 -1.38 -6.61 2.99


4

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Japan Equity Fund SHK131 01-12-2000



Fund Descriptor

Equity Fund Japan







sectors of the economy in Japan and which are listed on any stock exchange

1. Sumitomo Mitsui Financial Group Inc. 4.46%

2. Mitsui Fudosan Co. Ltd. 4.11%

3. Panasonic Corp. 3.92%

4. KDDI Corp. 3.68%

5. Dai-ichi Life Insurance Co. Ltd. 3.31%

6. Nissan Motor Co. Ltd. 3.10%

7. Japan Tobacco Inc. 3.03%

8. SoftBank Group Corp. 2.98%

9. Toyota Motor Corp. 2.92%

10. Sanwa Holdings Corp. 2.92% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 3.78 14.25 21.58 31.37 100.48 1.61 26.52 9.52 14.92 0.16 1.41 8.20 34.78 -0.01 12.80 4.01 () 5 Dollar Cost Averaging (For illustration only) 5 10.55 20.11 32.87 50.03 47.13 12.26 11.31 7.87 4.40 6.80 13.05 1.48 2.91 8.60

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Hong Kong Equity Fund SHK126 01-12-2000



Fund Descriptor

Equity Fund Hong Kong






To provide medium to long term capital growth Mainly invests in shares of companies listed on

Hong Kong Stock Exchange or companies covering different sectors of the economy in Hong Kong and which are listed on any stock exchange








8. Sina Corp. 2.27%

9. Hong Kong Exchanges & Clearing Ltd. 2.00%

10. China Life Insurance Co. Ltd. 1.98% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 11.33 33.58 24.85 27.36 55.74 6.43 136.31 8.40 9.27 0.62 5.24 23.04 10.75 3.77 -7.28 -1.06 () 5 Dollar Cost Averaging (For illustration only) 5 19.36 25.24 29.43 42.34 85.73 15.16 10.25 6.87 6.93 12.95 8.13 3.80 -8.69 2.12


5

MPF2045 Code Launch Date 4 Risk / Return Meter 4 Manulife MPF 2045 Retirement Fund SHK144 21-02-2011



Fund Descriptor

100% Mixed Assets Fund Global max.100% in equities

() Fund Size (Million HK$) 641.4





80% 100%

( )

To provide long term capital growth while lowering the risk of

loss as members approach their normal retirement age Designed for members expecting to attain their normal

retirement age around 2045 By the Fund launch, around 80%-100% of the underlying

portfolio is invested indirectly in equities and equity-related investments, with the remainder of the assets in bonds, deposits and other investments as permitted under the MPF Schemes (General) Regulation

Invests in regions such as America, Pacific Asia, Japan and Europe, etc.












3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 36.46 6.16 7.83

N/A 4.81 15.97 15.38 0.46 -1.29 0.08


N/A 27.93 10.73 7.80

N/A 7.28 8.40 9.24 0.09 -3.54 2.91




Fund Descriptor







80% 100%

( )

















3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 35.87 6.10 7.77

N/A 4.75 15.84 15.32 0.39 -1.30 0.04


N/A 27.64 10.64 7.73

N/A 7.21 8.35 9.23 0.05 -3.53 2.82


6




Fund Descriptor







80% 100%

( )















10. China Mobile Ltd. 0.79% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 35.72 6.08 7.72

N/A 4.73 15.83 15.18 0.40 -1.17 0.04


N/A 27.46 10.53 7.68

N/A 7.17 8.33 9.14 0.06 -3.46 2.77




Fund Descriptor

95% Mixed Assets Fund Global max. 95% in equities






75% 95%

( )















10. Samsung Electronics Co. Ltd. 0.75% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 34.09 5.77 7.41

N/A 4.54 15.66 14.68 0.26 -1.27 -0.08


N/A 26.17 10.08 7.34

N/A 6.87 8.21 8.88 -0.06 -3.37 2.42


7




Fund Descriptor







75% 95%

( )

To provide long term capital growth while lowering the

risk of loss as members approach their normal retirement age

Designed for members expecting to attain their normal retirement age around 2025

By the Fund launch, around 75%-95% of the underlying portfolio is invested indirectly in equities and equity-related investments, with the remainder of the assets in bonds, deposits and other investments as permitted under the MPF Schemes (General) Regulation











10. Samsung Electronics Co. Ltd. 0.65% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 30.42 5.04 6.64

N/A 4.10 15.13 13.18 0.33 -1.18 -0.53


N/A 23.05 8.83 6.48

N/A 6.13 7.86 8.10 -0.08 -3.06 1.57

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Hang Seng Index Tracking Fund SHK145 23-04-2012



Fund Descriptor

Equity Fund Hong Kong






To provide medium to long term capital growth Invests in shares of constituent companies of the

Hang Seng Index in substantially similar composition and weighting as they appear in the index through an approved index-tracking collective investment scheme (currently, the Tracker Fund of Hong Kong managed by State Street Global Advisors Asia Limited)









9. CK Hutchison Holdings 3.09%

10. Hong Kong Exchanges & Clearing Ltd. 2.83% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 52.52 8.71 8.10

N/A 8.07 11.79 4.72 4.46 -5.01 2.26

() Hang Seng Index (Total Return) 8.61 29.81 22.96 34.26 59.36

N/A 65.93 10.32 9.77

N/A 9.76 13.48 6.55 5.48 -3.92 4.30


N/A 30.40 14.02 9.73

N/A 9.56 11.72 4.05 3.36 -7.94 3.60


8

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Growth Fund SHK123 01-12-2000

Fund Details



Fund Descriptor

50% 90% Mixed Assets Fund - Global - Around 50% to 90% in equities and equity-related investments





Investment Objective 3 Portfolio Allocation3 6 Top 10 Portfolio Holdings 6 50% 90%

To provide medium to long term capital growth Invests around 50% to 90% in equities and equity-

related investments with the remaining assets in bonds, deposits and other investments as permitted under the MPF Schemes (General) Regulation

Invests in any region such as America, Pacific Asia, Japan, Europe, etc.










10. China Mobile Ltd. 0.64% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 5.04 17.34 13.87 15.04 33.00 16.89 91.25 4.78 5.87 1.57 3.93 13.25 11.03 0.49 -1.88 -0.50 () 5 Dollar Cost Averaging (For illustration only) 5 10.01 13.76 16.69 29.53 53.99 8.55 6.11 5.05 4.90 6.83 7.06 -0.08 -3.31 1.21

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Fidelity Stable Growth Fund SHK135 01-09-2003



Fund Descriptor

50% Mixed Assets Fund - Global - Approximately 50% in equities




Manulife Asset Management (Hong Kong) Limited invests in the fund managed by FIL Investment Management (Hong Kong) Limited

Investment Objective 3 Portfolio Allocation3 6 Top 10 Portfolio Holdings 6 50%

45%

To provide medium to long term capital growth Invests as a feeder fund into the respective APIF

and approximately 50% of the APIF will be invested in global equities, approximately 45% of the APIF will be invested in global bonds with the remaining assets in cash deposits as permitted under the Regulation

Invests in the markets in Hong Kong, America, Europe, Japan and the Asia Pacific region with a bias towards Hong Kong

1. Germany #176 0% 07/10/2022 4.19%



4. Germany #164 0.5% 13/10/2017 1.66%

5. Government of Japan #110 0.3% 20/03/2018 1.40%

6. Federal Republic of Germany 2.5% 15/08/2046 1.37%


8. USTN 0.75% 28/02/2018 1.29%

9. Germany #166 0.25% 13/04/2018 1.21%

10. USTN 2.25% 15/08/2027 1.16% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 3.86 13.06 8.44 10.72 23.68 28.42 110.15 3.45 4.34 2.53 5.41 10.93 8.02 0.98 -3.07 0.61 () 5 Dollar Cost Averaging (For illustration only) 5 7.43 9.90 12.01 24.21 38.36 6.22 4.48 4.25 4.46 5.41 5.05 -0.14 -3.55 -0.26


9

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF International Equity Fund SHK127 01-12-2000



Fund Descriptor

Equity Fund Global






To provide medium to long term capital growth Invests in global equities and equity-related

investment Invests in any region such as North America, Japan,

Europe, other Pacific Asia region markets and Hong Kong


2. Apple Inc. 2.26%

3. Citigroup Inc. 1.70%

4. Goldman Sachs Group Inc. 1.54%

5. Bank of America Corp. 1.49%

6. JPMorgan Chase & Co. 1.46%

7. Facebook Inc. 1.41%


9. Polaris Industries Inc. 1.19%

10. Alphabet Inc. 1.17% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 4.40 16.17 18.27 23.89 60.15 24.38 50.80 7.40 9.88 2.21 2.47 16.16 23.77 1.72 1.70 4.38 () 5 Dollar Cost Averaging (For illustration only) 5 10.46 18.40 26.12 51.55 65.00 11.27 9.21 8.06 5.66 7.58 12.99 0.86 -1.01 6.49

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF North American Equity Fund SHK130 01-12-2000



Fund Descriptor

Equity Fund North America







sectors of the economy in North America and which are listed on any stock exchange

1. Apple Inc. 5.82%


3. Citigroup Inc. 4.52%

4. Goldman Sachs Group Inc. 4.15%

5. Bank of America Corp. 4.00%


7. Alphabet Inc. 3.51%


9. Polaris Industries Inc. 3.18%

10. Facebook Inc. 2.98% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 4.42 14.48 20.37 32.24 80.96 62.45 60.06 9.76 12.59 4.97 2.83 16.75 30.36 6.61 4.52 8.07 () 5 Dollar Cost Averaging (For illustration only) 5 10.29 21.54 34.71 79.08 92.42 13.08 11.86 11.22 7.31 6.80 16.50 4.67 1.93 9.72


10

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF European Equity Fund SHK129 01-12-2000



Fund Descriptor

Equity Fund Europe







sectors of the economy in Europe and which are listed on any stock

exchange

1. Royal Dutch Shell PLC. 4.64%

2. Repsol SA 3.55%

3. Intesa Sanpaolo S.p.A. 3.35%

4. Banco Bilbao Vizcaya Argentaria, S.A. 3.23%


6. Novartis AG 3.00%

7. Fresenius Medical Care AG & Co. KGaA 2.99%

8. Standard Chartered PLC. 2.97%

9. Shire PLC. 2.83%

10. BHP Billiton Ltd. 2.78% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 4.47 14.68 14.20 13.05 43.05 -0.72 9.73 4.17 7.42 -0.07 0.55 20.12 22.69 -5.95 -0.42 1.91 () 5 Dollar Cost Averaging (For illustration only) 5 9.92 13.44 16.00 32.25 39.18 8.35 5.87 5.46 3.79 11.05 12.34 -5.40 -5.24 4.96




Fund Descriptor







65% 85%

To provide long term capital growth while lowering the risk

of loss as members approach their normal retirement age Designed for members expecting to attain their normal






3. Buoni Poliennali Del Tes 3.75% 01/03/2021 1.03%





8. Bonos Y Oblig Del Estado (BR) 4% 30/04/2020 0.62%


10. Ping An Insurance Co. Ltd. 0.56% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 23.10 3.77 5.12

N/A 3.19 13.51 10.13 0.06 -1.22 -1.10


N/A 17.42 6.81 4.97

N/A 4.75 6.86 6.50 -0.44 -2.50 0.16


11

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Smart Retirement Fund SHK138 21-02-2011



Fund Descriptor






Investment Objective 3 Portfolio Allocation3 6 Top 10 Portfolio Holdings 6 40% 60%

To provide medium to long term capital growth Invests on a diversified basis that around 40% to 60% of

the underlying portfolio of the Smart Retirement Fund will be indirectly invested in equities and equity-related investments, with the remainder of the assets being indirectly invested in bonds, deposits and other investments as permitted under the Regulation




3. Buoni Poliennali Del Tes 3.75% 01/03/2021 1.20%



6. Bonos Y Oblig Del Estado (BR) 4% 30/04/2020 0.72%




10. Ping An Insurance Co. Ltd. 0.55% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 18.65 3.21 3.79

N/A 2.62 10.89 6.17 -0.03 -2.04 -1.33


N/A 14.15 6.38 4.30

N/A 3.91 5.33 4.46 -0.73 -2.48 -0.45

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Core Accumulation Fund SHK148 / DIS148 01-04-2017

Fund Details


Fund Expense Ratio

N/A

Fund Descriptor

60% 40% Mixed Assets Fund Global around 60% in higher risk assets and 40% in lower risk assets


1 Risk Indicator1

N/A


( ) Manulife Asset Management (Hong Kong) Limited invests in the fund managed by Vanguard Investments Hong Kong Limited


60%

To provide capital growth by investing in a globally diversified manner

Mandated by the MPF Schemes Ordinance Invest as a feeder fund into the respective APIF

which adopts a passive investment strategy and approximately 60% of the APIF will be invested in higher risk assets with the remaining assets in lower risk assets

1. Apple Inc. 1.15%

2. US Treasury 1.125% 30/06/2021 0.83%

3. Microsoft Corp. 0.80%

4. Facebook Inc. 0.57%

5. US Treasury 1.125% 28/02/2019 0.56%


7. Exxon Mobil Corp. 0.50%

8. Johnson & Johnson 0.50%


10. Berkshire Hathaway 0.42% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 3.08

* N/A*

N/A

N/A

N/A

N/A 5.81

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

7 Reference Portfolio7 3.02

* N/A*

N/A

N/A

N/A

N/A 5.96

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

() 5 Dollar Cost Averaging (For illustration only) 5

N/A

N/A

N/A

N/A 3.14

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A


12

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Stable Fund SHK122 01-12-2000



Fund Descriptor

** Guaranteed Fund Interest Guarantee**






**

40%

To provide relatively stable medium to long term

growth and with an interest guarantee** upon the occurrence of certain predetermined events

A conservative investment for members who are prepared to accept modest fluctuations in the value of their investment in order to achieve long term returns

Invests up to 40% in equities and equity-related investments, with the remaining in bonds, deposits and other investments as permitted under the MPF Schemes (General) Regulation

Invests in any region such as America, Pacific Asia, Japan, Europe, etc, with a relative bias towards Hong Kong

1. Hong Kong Government Bond 3.32% 25/02/2026 1.69%



4. Chong Hing Bank Limited VAR 26/07/2027 0.87%


6. SMRPBV 4.875% 16/12/2021 0.81%

7. Ausnet Services Holdings Pty Ltd. 4.125% 16/03/2020 0.79%

8. MTR Corp. (C.I.) Ltd. 2.5% 02/11/2026 0.79%

9. HKCG (Finance) Ltd. 3.4% 27/07/2027 0.78%

10. China Development Bank Corp. 3.75% 26/01/2022 0.78% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 2.45 9.22 5.16 8.94 14.45 18.49 51.56 2.90 2.74 1.71 2.50 6.58 1.91 1.59 -0.08 -1.11 () 5 Dollar Cost Averaging (For illustration only) 5 4.74 6.49 8.25 14.47 27.57 4.12 3.13 2.66 2.81 3.52 1.63 0.92 -1.58 -1.09

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF International Bond Fund SHK133 01-12-2000



Fund Descriptor

Bond Fund Global






To provide competitive overall rates of return for

members who want to have a stable return Invests mainly in Permitted Deposits, Debt Securities

issued by any government, central bank or multilateral international agency

Invests in any region such as North America, Europe, United Kingdom and Asia

1. Government of Italy 3.75% 01/03/2021 4.81%

2. Government of Spain 4.0% 30/04/2020 2.91%

3. Government of France 3.25% 25/10/2021 2.23%

4. Government of Japan 0.6% 20/12/2023 1.91%

5. Government of United Kingdom 4.75% 07/12/2030 1.60%


7. Government of Germany 3.0% 04/07/2020 1.42%


9. Government of Austria 3.5% 15/09/2021 1.21%

10. Government of Netherlands 3.25% 15/07/2021 1.18% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 1.19 4.47 -1.48 1.32 -0.54 30.86 67.89 0.44 -0.11 2.73 3.12 4.78 -3.75 1.25 -2.63 0.43 () 5 Dollar Cost Averaging (For illustration only) 5 1.90 2.17 1.89 7.50 22.80 1.40 0.74 1.43 2.38 2.01 -1.20 -0.89 -1.41 -3.22


13

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Hong Kong Bond Fund SHK132 01-12-2000



Fund Descriptor

Bond Fund Hong Kong






( ) To provide a competitive overall rate of return for

members who hold a conservative investment view

Invests mainly in Hong Kong Dollar denominated Permitted Deposits and Debt Securities (in a range of portfolio remaining maturity periods) issued by the government of Hong Kong or any government, central bank or multilateral international agency


2. Chong Hing Bank Limited 3.876% 26/07/2027 1.50%

3. SMRPBV 4.875% 16/12/2021 1.40%

4. China Development Bank Corp. 3.75% 26/01/2022 1.37%

5. MTR Corp. (C.I.) Ltd. 2.5% 02/11/2026 1.36%

6. Ausnet Services Holdings Pty Ltd. 4.125% 16/03/2020 1.35%

7. HKCG (Finance) Ltd. 3.4% 27/07/2027 1.35%

8. Santander Intl Debt SA 2.52% 16/10/2020 1.33%

9. Optus Finance Pty Ltd. 3.825% 10/06/2020 1.33%

10. Bestgain Real Estate Lyra Ltd. 2.5% 13/04/2019 1.29% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 0.41 3.54 -0.57 5.96 5.08 24.57 39.29 1.95 1.00 2.22 1.99 2.41 -3.67 3.43 1.62 -0.44 () 5 Dollar Cost Averaging (For illustration only) 5 1.05 2.19 3.90 8.00 16.45 1.41 1.51 1.52 1.77 1.26 -1.82 1.73 0.13 -2.32

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Pacific Asia Bond Fund SHK146 23-04-2012



Fund Descriptor

Bond Fund Pacific Asia






To provide competitive overall rate of returns for

members who hold a longer term investment view and want to seek returns through income and capital appreciation

Investments will be made on diversified basis mainly in Debt Securities issued by any government, central bank, supra-nationals, multilateral international agency and corporate issuers in the Asia Pacific region

1. Government of South Korea 2.75% 10/03/2018 2.01%


3. Government of Philippines 8.0% 19/07/2031 1.89%


5. Thailand Ministry of Finance 2.125% 17/12/2026 1.81%

6. Government of Indonesia 8.375% 15/09/2026 1.79%

7. New South Wales Treasury Corp. 3.0% 20/05/2027 1.79%

8. Government of Indonesia 8.25% 15/07/2021 1.66%

9. United Overseas Bank Ltd. (Singapore) 3.5% 27/02/2029 1.62%

10. Thailand Ministry of Finance 1.2% 14/07/2021 1.58% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


N/A 8.02 1.14 0.86

N/A 1.43 4.70 -4.18 3.32 -3.18 1.39


N/A 4.66 2.58 1.67

N/A 1.63 3.27 -2.19 -0.06 -1.44 -2.49


14

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF RMB Bond Fund SHK147 16-12-2013



Fund Descriptor

Bond Fund China






70%

MPF

30% To provide competitive overall rate of returns for members who

hold a longer term investment view and want to seek returns through capital appreciation and income generation

Invests on diversified basis (in terms of issuers and geographical distribution of such issuers) with at least 70% of the net asset value invested in Renminbi (RMB) denominated debt securities which are issued, traded or distributed by any government, central bank, supra-nationals, multilateral international agencies and corporate issuers outside Mainland China

The Manulife MPF RMB Bond Fund may also, through the underlying APIF, invest up to 30% of its net asset value in other RMB or non-RMB denominated investments including money market instruments, certificates of deposits, cash and deposits, and non-RMB denominated debt securities, as permitted under the Regulation

1. China Development Bank Corp. 4.2% 19/01/2027 6.60%

2. Asian Development Bank 2.85% 21/10/2020 5.12%

3. Global Logistic Properties Limited 4.0% 11/05/2018 4.37%

4. Export-Import Bank of China 3.65% 14/05/2019 4.22%

5. National Bank of Canada 4.3% 11/10/2020 4.19%

6. Royal Bank Of Canada 4.25% 29/09/2020 3.60%

7. Tingyi (cayman Islands) Holding Corp. 4.375% 06/08/2018 3.60%

8. Bestgain Real Estate Ltd. 4.5% 04/12/2018 3.52%

9. Lenovo Group Ltd. 4.95% 10/06/2020 3.20%

10. Fonterra Co-operative Group Ltd. 4.0% 22/06/2020 3.03% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 2.49 5.64 0.90 0.76

N/A

N/A 1.07 0.25

N/A

N/A 0.28

N/A 0.07 0.16 -3.30 -1.29

() 5 Dollar Cost Averaging (For illustration only) 5 3.05 2.22

N/A

N/A 2.02 1.43

N/A

N/A 1.02

N/A 0.07 0.23 -2.78 -2.78

MPF 65 Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Age 65 Plus Fund SHK149 / DIS149 01-04-2017

Fund Details


Fund Expense Ratio

N/A

Fund Descriptor

20% 80% Mixed Assets Fund Global around 20% in higher risk assets and 80% in lower risk assets


1 Risk Indicator1

N/A


( ) Manulife Asset Management (Hong Kong) Limited invests in the fund managed by Vanguard Investments Hong Kong Limited


20%

To provide stable growth by investing in a globally diversified manner

Mandated by the MPF Schemes Ordinance Invest as a feeder fund into the respective APIF

which adopts a passive investment strategy and approximately 20% of the APIF will be invested in higher risk assets with the remaining assets in lower risk assets

1. US Treasury 1.25% 31/01/2020 1.33%

2. US Treasury 0.75% 15/02/2019 1.28%

3. US Treasury 1.5% 15/06/2020 1.23%

4. US Treasury 1.5% 31/01/2022 1.01%

5. US Treasury 1.25% 31/10/2021 0.93%

6. US Treasury 1.125% 30/06/2021 0.93%

7. US Treasury 1.25% 31/03/2019 0.89%

8. US Treasury 2.25% 31/12/2023 0.88%

9. US Treasury 1.375% 31/07/2019 0.86%

10. US Treasury 1.125% 28/02/2019 0.77% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016

2 Fund Performance 2 1.04

* N/A*

N/A

N/A

N/A

N/A 1.86

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

7 Reference Portfolio 7 1.05

* N/A*

N/A

N/A

N/A

N/A 2.28

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

() 5 Dollar Cost Averaging (For illustration only) 5

N/A

N/A

N/A

N/A 0.88

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A

N/A


15

MPF Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Interest Fund DHK121 01-12-2000

Fund Details

# Interest Rate Declared#

07/2017 0.01% 08/2017 0.01% 09/2017 0.01%


Fund Descriptor

*** Guaranteed Fund Capital Guarantee***





Investment Objective 3 Portfolio Allocation3 6 Top 10 Portfolio Holdings 6 ***

To provide capital guarantee*** and aims to provide members with interest each month at a rate that equals to or exceeds the prescribed savings rate published by the MPFA

To provide short-term growth for members who wish to invest conservatively are close to the age of retirement seek a temporary safe-haven during more

turbulent economic times

1. 10Y T-Note (CBT) 12/2017 3.61%


3. Bestgain Real Estate Lyra Ltd. 2.5% 13/04/2019 2.15%

4. Tencent Holdings Ltd. 2.3% 24/09/2018 1.93%

5. Caterpillar Financial Services Corp. 2.14% 13/12/2019 1.69%

6. Link Finance (Cayman) 2009 Ltd. 4.4% 08/05/2019 1.65%

7. Export-Import Bank of Korea 1.57% 11/05/2018 1.63%

8. Bank of China (Macau Branch) 2.34% 15/10/2020 1.59%

9. Volkswagen International Finance NV 1.58% 17/07/2018 1.57%

10. Caterpillar Financial Services Corp. 1.4% 11/07/2019 1.48% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016


MPF ^ Code Launch Date 4 Risk / Return Meter 4 Manulife MPF Conservative Fund ^ SHK125 01-12-2000



Fund Descriptor

Money Market Fund Hong Kong






Aims to provide a rate of return to match the

prescribed savings rate published by the MPFA but with NO guarantee of capital or interest

Mandated by the MPF Schemes Ordinance Invests in Hong Kong dollar fixed income

instruments Investment in the Conservative Fund is not the

same as placing funds on deposit with a bank or deposit taking company and that there is no obligation on the part of the Trustee to redeem the investment at the subscription value


2. China Development Bank Corp. (HK) 1.35% 21/11/2017 2.38%

3. Agricultural Bank of China (Hong Kong) 1.2% 14/11/2017 2.28%

4. Agricultural Bank of China (Hong Kong) 1.0% 21/02/2018 2.14%


6. China Development Bank Corp. (HK) 1.1% 14/05/2018 1.81%



9. Export-Import Bank of Korea 1.57% 11/05/2018 1.75%

10. Singtel Group Treasury Pte Ltd. 3.32% 04/04/2018 1.50% .


3 Months

YTD

1 Year

3 Years

5 Years

10 Years

Since Launch

3 Years

5 Years

10 Years

Since Launch 2012 2013 2014 2015 2016



16

Commentary MPF Manulife MPF China Value Fund A H

Southbound capital flows remained sanguine, partly due to robust offshore investment demand and the A-H premium. In terms of capital inflows from overseas, foreign investment allocations to China remain subdued as foreign investors are still wary of the China stockmarket and tend to overplay the risks of a hard landing by the Chinese economy.

However, as Chinas economy maintains a healthy growth momentum, we expect foreign investors to attach greater importance to the China market, which is favourable for China stocks in the long run.

Chinas reform efforts continued and significant progress was made in some areas, including the loosening of the one-child policy and the enacting of environmental initiatives and anti-corruption campaigns. However, progress was slower than expected for other pro-growth items in the reform agenda, such as the reform of state-owned enterprises, Hukou reforms and tax reforms.

The positive momentum on the China stockmarket is likely to continue as China is expected to speed up reforms after the 19th Party Congress.

MPF Manulife MPF Healthcare Fund MSCI

4.84% MSCI 2.52%

The healthcare sector underperformed the broader equity market over the third quarter. The MSCI World (Net) Total Return Index rose 4.84%, while the MSCI World Health Care Total Return Index was up 2.52%. The biotechnology sub-sector had the strongest return, while medical device sub-sector had the weakest return.

The healthcare sector had been volatile due to political pressure. With the latest version of the health bill favourable to the industry, the sector continues to recover. We still see the increased pricing pressure from private payers on biotechnology and pharmaceutical industries. In response to this trend, we have picked companies that focus on R&D and have meaningful product pipelines.

Also, many truly innovative companies stocks declined along with those of lesser quality. We believe the current environment represents an attractive entry point for many high-quality companies.

MPF / MPF / MPF / MPF / MPF / MPF 2020 / MPF 2025 / MPF 2030 / MPF 2035 / MPF 2040 / MPF 2045

Manulife MPF Aggressive Fund / Manulife MPF Growth Fund / Manulife MPF Stable Fund / Manulife MPF International Equity Fund / Manulife MPF Smart Retirement Fund / Manulife MPF 2020 Retirement Fund / Manulife MPF 2025 Retirement Fund / Manulife MPF 2030 Retirement Fund / Manulife MPF 2035 Retirement Fund / Manulife MPF 2040 Retirement Fund / Manulife MPF 2045 Retirement Fund

2017 3.1%

2017

2.2%9 0.7%

6.9%MSCI 5.0%

2017 1.8%

Over the third quarter of 2017, the equities market recorded solid gains on the back of robust global economic growth. In the US, the economy grew at an annualised rate of 3.1% in the second quarter. While rising tensions between US and North Korea created volatility in the market, investors looked beyond political uncertainties and focused on the healthy quarterly reporting season.

The European Central Bank (ECB) decided to leave monetary policy unchanged, but the region's growth outlook was adjusted upwards to 2.2% for 2017. In Japan, core consumer price index reached 0.7% in September and industrial production was also ahead of expectations. In Asia, Chinas second quarter GDP expanded by 6.9% on a year-on-year basis. Against these backdrops, the MSCI World Index registered a return of 5.0% over the quarter in US dollar terms.

Despite the Feds comments on balance sheet reduction and ECBs intention to scale back the quantitative easing programme, markets fled to lower risk assets on the back of heightened geopolitical tensions. The Bloomberg Barclays Global Aggregate Index registered a return of 1.8% in US dollar terms over the third quarter of 2017.

The global macro backdrop currently favours the equity asset class at the expense of fixed income. For now, macroeconomic data continues to indicate at-trend global growth even if economic surprises have been mixed, and inflation readings have been rather soft. While we remain concerned about equitys valuations that appear to be pricing for perfection (especially concerning as real rates have been on an upward trend year-to-date), we note that this years leg-up in equity prices has not been driven entirely by re-rating, but by an improved earnings outlook.

MPF / MPF Manulife MPF Fidelity Growth Fund / Manulife MPF Fidelity Stable Growth Fund

The allocation to Hong Kong equities was increased in view of stable domestic consumption, better-than-expected GDP growth on rising exports and a strong earnings season.

The allocation to the US was increased as economic data remained robust. The weaker dollar and global growth aided corporate earnings.

The position in Japan was increased as the economy is improving gradually and corporate earnings are strong.

The exposure to Europe was increased marginally. Although macroeconomic data is strong, the possibility that the European Central Bank could reduce stimulus measures kept the currency strong, impacting corporate profitability, especially for exporters.

Moreover, a positive view on Asia Pacific equity was supported by the sustained manufacturing growth indicated by the latest manufacturing Purchasing Managers Index reading and continued signs of industrial improvement spilling to consumers in China.

Elsewhere, the exposure to money market funds was reduced in favour of equity and fixed income funds.

MPF Manulife MPF Pacific Asia Equity Fund

1) 2) 3)

Asia Pacific ex Japan/Hong Kong equities continued to record gains during the quarter amid sporadic geopolitical concerns buoyed by healthy economic data, expectations of faster global growth, and positive market sentiment across the region on better earnings results. Escalating geopolitical tensions from North Korea during the period weighed on investor sentiment. By the latter part of the period, the market was weighed down by a strong US dollar due to: 1) US President Trumps updates on the long-awaited tax reform, which improved prospects for corporate earnings; 2) Fed Chair Yellens hawkish remarks on policy rates for the year; and 3) Confirmation of the Feds balance sheet reduction plan.


17

Looking ahead, we believe market performance in the region should be well supported by earnings growth, and valuations remain undemanding relative to the US equity market.

In Taiwan, a new product cycle in the smartphone and electric vehicle segments should put companies in the corresponding supply chains under the spotlight in the latter half of the year. In South Korea, favourable supply-demand dynamics in memory chips continue to support the earnings of bellwethers in the semiconductor sector. The increase in minimum wage should also stimulate domestic consumption in the near term.

We continue to like stocks in the financial sector in India, particularly banks and life insurers. We believe the consumer companies in the organised sector will continue to outperform as they gain market share from the unorganised sector following reform and formalisation of the Indian economy.

MPF Manulife MPF Japan Equity Fund

SMBC Nikko68% 2005

8%

2017

The market rose over the quarter in line with other global markets, with some further weakening in the yen/US dollar rate supporting the outlook for Japanese earnings growth.

Earnings reports for the first quarter are now in and have resulted in a significant number of companies announcing upward revisions for the year. According to SMBC Nikko, 68% of companies reported positive surprises in the first quarter, which is the highest ratio since the 2005 fiscal year.

Japan remains the cheapest developed market on both price to earnings and price to book. Japans return on equity (ROE) has also been steadily improving and currently stands at 8%. One of the drivers for higher ROE is the record level of share buybacks. Most Japanese corporates have a net cash position giving them ample opportunity to make further buybacks in 2017.

MPF / MPF Manulife MPF Hong Kong Equity Fund / Manulife MPF Hang Seng Index Tracking Fund

780 2017

22%

9 52.4 2012 4

A+

2017

The Hong Kong and Chinese equity markets recorded solid performance in the third quarter. This return is mainly attributed to Chinas strong performance, as it was the best-performing market in Asia amid good second-quarter earnings results and resilient economic activity. The Hong Kong and Chinese equity markets have also been supported by strong liquidity via Stock Connect flows. Notably, there have been US$78 billion cumulative inflows southbound since the Stock Connect launched.

In China, earning results in the first half of 2017 for Chinese-listed firms were very positive, with 22% growth year-on-year. There have been continuous upward revisions on earnings. On the macro front, Chinas economic activity proved to be resilient through a broad range of indicators. Official Purchasing Managers Index (PMI) continued its improvement trend, reaching up to 52.4 in September. This is the highest reading since April 2012, pointing a strong rebound in domestic demand. Manufacturing output has remained strong and stable in recent months.

During the quarter, investor reactions were largely muted regarding Standard & Poors downgrade of Chinas sovereign credit rating by one notch to A+, and their changing of Chinas outlook from negative to stable due to risks borne from heavy credit growth.

We remain constructive on Chinese and Hong Kong equities. Despite the strong rally year-to-date, we believe the markets are well justified by the sound corporate fundamentals as reflected in the solid first half of 2017 earnings results, as well as continuous upward earnings revision. Valuations remain reasonable and not overvalued, relative to historical standards and other developed markets.

MPF Manulife MPF North American Equity Fund

Equifax 500

The US stock market ended the quarter at a record high, as improving US and global economic growth and optimistic earnings expectations helped fuel gains. Higher oil prices, renewed hope for US tax reform, and continued low inflation also aided returns. The devastation from Hurricanes Harvey, Irma, and Maria, as well as mounting tension with North Korea and news of a massive hack at credit bureau Equifax did little to deter the markets progress.

Within the broad-based S&P 500 Index, the Information Technology sector posted the strongest gain, followed by the Energy, Telecommunication Services and Materials sectors. The only negative return came from the Consumer Staples sector.

Although were in the ninth year of a bull market for US equities, we remain positive about prospects for further gains. We think the backdrop remains favourable, given the recovery in the US and global economies, wage growth, rising employment, housing demand that is outstripping supply, and a strong US financial system. Less government regulation and lower corporate tax rates also could help boost earnings and, in turn, stock prices. Going forward, we plan to stay focused on what we view as quality companies with competitive advantages, improving earnings outlooks, and reasonable valuations.

MPF Manulife MPF European Equity Fund

4.5%

European equities gained 4.5% over the period due to an ongoing improving macroeconomic situation, a strengthening currency, and rallying commodity prices.

The Euro appreciated versus the US dollar due to another setback for the new US administrations attempt to implement healthcare reform, which undermined the credibility of its other legislative actions designed to stimulate the economy like tax cuts and infrastructure spending. Also supporting the Euro were two key factors: comments by the European Central Bank (ECB) president suggesting that the European economy was strong enough to start the tapering of quantitative easing, as well as foreign asset flows into European equities.

The materials sector performed strongly over the period. A sharp recovery in commodity prices, partially fuelled by Chinas attempt to curb heavily polluting industries like steel and aluminium production, as well as by US dollar weakness and robust global demand for construction materials, contributed to the sectors results. Energy was another strong-performing sector, as firm Chinese demand and lower output from important oil-producing regions drove up the oil price.

The European economic recovery continues to gather steam, which has resulted in a sharply stronger Euro. This may relieve pressure on the ECB to tighten its monetary policy in the short term. We also believe earnings growth for the region looks attractive relative to other developed markets. However, valuations are at their long-term average, so the market no longer looks inexpensive. As a result, in a rising interest rate environment or on a stronger Euro exchange rate, where earnings rise at a moderate pace, we believe equities may also offer moderate returns at best.


18

MPF Manulife MPF International Bond Fund

9

8

At Global fixed income markets generally had a positive start to the quarter as they backtracked slightly from the recent theme of coordinated monetary policy normalisation by global central banks.

Fed Chair Janet Yellens semi-annual testimony to Congress was considered dovish. Yellen indicated that recent softer inflation data was partly the result of a few unusual reductions in certain price categories, which would likely be temporary.

The Euro continued to strengthen due to unnamed European Central Bank (ECB) sources suggesting the ECB could announce plans for quantitative easing tapering at its September meeting.

In August, global fixed income markets saw mixed results, with an increase in geopolitical conflict between the US and North Korea spurring a risk-off sentiment. Later in the period, yields on high-quality global sovereign debt moved higher as the market paused to re-evaluate central bank expectations. Spreads on riskier fixed income sectors tightened as investors shook off concerns over North Korea, despite nuclear testing and another missile launch. Regarding currencies, as global central banks monetary policies potentially become more in sync, we believe the stronger US dollar trend has likely peaked.

MPF / MPF / MPF

Manulife MPF Hong Kong Bond Fund / Manulife MPF Interest Fund / Manulife MPF Conservative Fund

2017 1.39% 1 0.78%

1.33% 2.09% 76

0.94%1.71% 65 77

-24

7.8110

Hong Kongs short-end interest rates remained stable for the third quarter of 2017. The 1-year Hong Kong Interbank Offer Rate (HIBOR) closed at 1.39% (-1 basis points, or bps) and the 3-month HIBOR closed at 0.78% (unchanged).

Hong Kong interest rates mainly tracked the US market throughout the quarter. The 2-year Hong Kong dollar interest rate swap (IRS) rose to 1.33% while the 10-year IRS rose to 2.09%. The 2-year versus 10-year IRS spread was at 76bps at the end of quarter.

Similarly, the 2-year Hong Kong government bond yield closed at 0.94% and the 10-year yield closed at 1.71%; the spread between the 2-year and the 10-year yields widened from 65bps to 77bps. The HIBOR/London Interbank Offer Rate (LIBOR) basis swap spread of five and 10 years was negative for most of the period. The 10-year basis swap closed at -24bps at the end of the quarter.

The Hong Kong dollar traded towards the weak side of the band against the US dollar; the USD/HKD closed at 7.8110 at end of quarter.

MPF Manulife MPF Pacific Asia Bond Fund AA- A+

25

25

1.11%

Standard & Poors downgraded Chinas sovereign credit rating from AA- to A+, and Chinas rating outlook was revised to stable. The announcement did not affect the Chinese bond and currency market, as it was expected by most market participants.

In Indonesia, local currency bond yields fell as Bank Indonesia cut its key interest rates twice by 25 basis points (bps) each time. The Reserve Bank of India cut interest rates by 25 bps, but Indian government bond yields rose slightly higher as rebounding inflation led investors to believe monetary easing was temporary.

Asian corporate credit markets recorded positive gains as credit spreads were stable. The JP Morgan Asian Investment Grade Corporate Bond Index returned 1.11% in US dollar terms.

The performance of Asian currencies was mixed against the US dollar. The renminbi was one of the better performing currencies amid stronger-than-expected economic data. On the other hand, the South Korean won was one of the worst-performing currencies amid rising political tension.

We believe volatility in global and Asian bond markets may pick up in the coming months. Some developed central banks may be on the inflection point to normalise their monetary policies, and geopolitical risks may increase regionally.

MPF Manulife MPF RMB Bond Fund

6.9% 8 51.6 8 1.8%

iBoxx 1.76%

6.7807 6.6468

2017

3.7% 4%

Chinese economic data released over the period pointed to a stabilising economy. Second quarter GDP grew by 6.9% year-on-year. The Caixins Manufacturing Purchasing Managers Index (PMI) for August came in at 51.6, a six-month high. Inflation data remained subdued, consumer price index (CPI) rose by 1.8% year-on-year in August.

The overall performance of the offshore renminbi (CNH) bond market was positive over the period. Government bonds outperformed both investment grade and high yield bonds on the back of improved funding conditions and a stronger renminbi currency environment. The Markit iBoxx ALBI China Offshore Investment Grade Bond Index returned 1.76%, in CNH terms.

The CNH currency strengthened against the US dollar from 6.7807 to 6.6468 over the period amid Chinese government intervention and stronger-than-expected Chinese economic data.

Chinas economic growth trajectory has stabilised, showing relatively strong economic data in the second of 2017. The deleveraging trend in China is expected to continue for the remainder of the year; this may keep interest rates at relatively high levels. The 10-year Chinese government bond yields tested the 3.7% region. We believe the 4% region is the major key level.

MPF / MPF 65 Manulife MPF Core Accumulation Fund / Manulife MPF Age 65 Plus Fund 9 10

6

-0.1% 2%

12 65% 50%

Global equities markets were broadly positive over September 2017. The FOMC kept the policy rate unchanged and set commencement of tapering for October. The Bank of England (BOE) monetary policy meeting (MPC) also kept interest rate unchanged but BOE has issued its strongest guidance in a decade that it is poised to raise interest rates. Expectations are that the BOE will hike rates within the next 6 months given the hawkish tone of the committee member.

BoJ also decided to hold interest rate steady at -0.1% and maintained its view that the countrys economy is expanding moderately and will gradually accelerate inflation towards its 2% target without additional stimulus.

US Treasury yields higher at the back of the more hawkish FOMC meeting and market is now pricing over 65% chance of a Fed hike in Dec, from just under 50% chance before the meeting.


19

Source: Manulife Asset Management (Hong Kong) Limited, FIL Investment Management (Hong Kong) Limited, Vanguard Investments Hong Kong Limited , Value Partners Limited & HSBC Institutional Trust Services (Asia) Limited

1 The Risk Indicator shows the annualized standard deviation based on the monthly rates of return of the fund over the past 3 years, and correct to 2 decimal places. Generally, the greater the annualized standard deviation, the more volatile/risky the constituent fund. The Risk Indicator for the constituent fund will be available 3 years after its launch date.

2 Constituent fund performance is calculated on the basis of NAV (net asset value) -to-NAV in Hong Kong Dollar, and is net of all charges.

3 100% Due to rounding, the total may not be equal to 100%.

4 Constituent funds are represented by the Manulife Risk / Return Meter, a colour coding system in which a spectrum of colours is used to signify the risk-return profiles of our constituent funds. Each constituent fund has an assigned colour in the meter with the respective investment objectives as follows:

Conservative/Blue seeks to provide small short term growth with low risk exposure Stable/Green seeks to provide some medium to long term growth with low to medium risk exposure Growth/Yellow seeks medium to long term growth of capital with medium to high risk exposure Aggressive/Red seeks high medium to long term or long term growth of capital with high risk exposure Very Aggressive/Purple Red seeks long term growth of capital with very high risk exposure

The colour coding in the Manulife Risk/Return Meter is based on a number of factors in relating to their underlying investments, including types of asset classes and their respective target weightings, breadth and geographical diversification and historical long-term volatility and capitalization of the relevant markets. Different colours in the Meter represent a general division of risk/return profiles. The risk level of each constituent fund will be reviewed annually.

The greater the diversification and the more stable the underlying asset, the less volatility will be experienced. Generally, the greater the return you want to earn on your investments, the greater risk you have to assume. The assigned risk/return profile or colour of a constituent fund highlights the volatility of the relevant investments. The value of a constituent fund with higher risk normally fluctuates to a greater extent than a constituent fund with lower risk.

While higher risk constituent funds may be more volatile, over the long-term a higher risk constituent fund may have better potential for higher returns.

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The Manulife Risk/Return Meter is developed and regularly reviewed by Manulife Asset Management (Hong Kong) Limited annually. It represents only the views of Manulife Asset Management (Hong Kong) Limited and FIL Investment Management (Hong Kong) Limited in respect of the relevant constituent funds. The Manulife Risk/Return Meter is not a financial tool and shall not be relied upon to make any investment decisions and selection of constituent funds. Note that the Risk/Return Meter is for reference only and is not a substitute for independent professional advice. Manulife does not provide advice regarding appropriate investment allocations and selection of constituent funds. You should seek independent professional financial advice. We are not responsible for any loss occasioned as a result of relying on such information as investment advice.

5 )

MPF The Dollar Cost Averaging Return is calculated by comparing the total contributed amount over the specified period with the final NAV (net asset value). A constant amount is used to purchase fund units at the prevailing fund price (NAV per unit) on the last trading day of every month over the specified period. The total contributed amount is the sum of all such monthly contributions. The final NAV is arrived by multiplying the total units cumulated over the specified period with the fund price (NAV per unit) on the last trading day of such period. The cumulative and annualized returns of Dollar Cost Averaging are provided for reference, and the figures are for illustrative purposes only. Source: Morningstar and Manulife (International) Limited (for Manulife MPF Interest Fund only).

6 "" "Top 10 portfolio holdings" lists out the largest 10 security holdings (i.e. not including cash and others) of the fund portfolio. The fund portfolio may have less than 10 security holdings.

7 65 65 www.hkifa.com.hk Core Accumulation Fund (CAF) Reference Portfolio and Age 65 Plus Fund (A65F) Reference Portfolio are the MPF industry developed reference portfolio and published by the Hong Kong Investment Funds Association for the purpose of providing a common reference point for performance and asset allocation of the DIS constituent funds, i.e. the CAF and A65F respectively. The reference portfolio is subject to review on regular basis and may change. For more and the latest information about the reference portfolio, please visit the website of the Hong Kong Investment Funds Association at www.hkifa.com.hk.

2017 3 31 Fund expense ratio for financial period ended March 31, 2017. Fund Expense Ratio for the constituent fund will be shown after the period between the reporting date of the fund fact sheet and the launch date of the fund reaches 2 years and thereafter.

MPF 2017 3 31 Please note that Manulife MPF China Value Fund does not incur any Performance Fee of underlying investments over the financial year ended March 31, 2017.


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^ (i) (ii) MPF (i) Fees and charges of a MPF conservative fund can be deducted from either (i) the assets of the fund or (ii) members account by way of unit deduction. The Manulife MPF Conservative Fund uses method (i) and, therefore, any unit prices/NAV/fund performance quoted for the constituent fund have incorporated the impact of fees and charges.

# 2005 2 1 The historical rates declared have already taken into account of the guaranteed prescribed savings rates. Effective from February 1, 2005, the guarantee on prescribed savings rates for the declared rates has been removed. The Fund Performance of Interest Fund is derived from relevant declared rates compounded monthly.

** MPF

Manulife MPF Stable Fund (the Stable Fund): Manulife (International) Limited is the guarantor. Investors are provided with an interest guarantee for each month equal to the prescribed savings rate published by the MPFA. The guarantee is subject to: 1) the contribution must be received in cleared funds before the member's 55th birthday; and 2) occurrence of pre-determined events (members

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