manulife mawer family of funds agenda strong brand name well-defined investment process proven track...
TRANSCRIPT
Agenda
• Strong brand name
• Well-defined investment process
• Proven track record
• Funds that you can grow with
Size $400 Billion Funds Under Management
Capital $28.4 Billion
Income $4.1 Billion
S&P - AAA
Why Manulife?
Note: All numbers quoted are in $Cdn. Source: Capital and Size - Manulife Fact Sheet, April 30, 2008 Income for twelve months Dec 2007.
A Powerful Team:Manulife + Mawer
• Exclusivity arrangement to Manulife
• Proven performance
• Award winning portfolio management
• Access to GARP style (Growth at a Reasonable Price)
• Complements existing fund line up
• Benefit from Manulife’s marketing capabilities
• Access to Manulife’s distribution channel/ sales force
• Lower minimum investment provides new market
Source: Mawer Investment Management Ltd, as at April 30, 2008.
Who is Mawer?
• One of Canada’s oldest and largest independent investment counseling firms
• Headquartered in Calgary, Alberta; founded in 1974
• Approximately $5.2 billion in assets under management
The Manulife MawerFamily of Funds
Fund Name Investment Category
Manulife Mawer World Investment Class* International Equity
Manulife Mawer Tax-Managed Growth Fund** Global Equity
Manulife Mawer Global Small Cap Fund Global Small-Mid Cap Equity
Manulife Mawer Diversified Investment Fund Global Equity Balanced
Manulife Mawer U.S. Equity Fund U.S. Equity
Manulife Mawer Canadian Equity Class Canadian Equity
Manulife Mawer Canadian Bond Fund Canadian Fixed Income
*Formerly named Manulife World Investment Class.**Formerly named Manulife Tax-Managed Growth Fund .
Manulife Mawer Portfolio Managers
Darrell Anderson, CFA, FCSI Director
David Ragan, CFA Director
Michael Crofts, CFA,Director
Paul Moroz, CFA Director
Manulife MawerU.S Equity Fund
Manulife MawerCanadian Bond Fund
Manulife MawerWorld Investment Class
Manulife MawerGlobal Small Cap Fund
Gerald Cooper-Key, CFAHonorary Chairman
Jim Hall, CFA, MBADirector of Investment
Research
Craig Senyk, CFA Director of Portfolio
Management
Manulife MawerWorld Investment Class
Manulife Mawer Diversified Investment Fund Manulife Mawer Tax-Managed Growth Fund
Manulife Mawer Canadian Equity Class
Source: Calgary Herald December 7, 2007.
Mawer GARP Philosophy
“We believe we can provide our investors
with better than market rates of return with
less than market levels of risk over
a year-long cycle.”
Gerald Cooper-Key
“We believe we can provide our investors
with better than market rates of return with
less than market levels of risk over
a year-long cycle.”
Gerald Cooper-Key
Mawer’s Investment ApproachThere are four pillars upon which each portfolio is built:
SystematicProcess
Wealth-creating companies
Discount to intrinsic value
Broadly diversified portfolios
Systematic Process
Guiding Philosophy
Screening(Idea Generation)
Intensive Analysis
Monitor & Review
Portfolio Construction
Wealth-creating Companies
SuitableCompanies
StrongManagement?
Porter’s Five Forces
Competitive Advantages?
Return of Capital> Cost of Capital?
Buy
Buy
BuyBuy
A Mawer Purchase DecisionUmicore
Source: Bloomberg 01/02/04 – 04/08/08. For illustration purposes only.
Sell Discipline in Action
Buy
Buy Buy
BuyBuy
Buy
Buy
Trim
Trim
Sell
Source: Bloomberg 01/03/05 – 04/08/08 For illustration purposes only.
Zhejiang Expressway
2008
• International Equity Fund - 10 year risk adjusted performance
2007
• International Equity Fund -10 year risk adjusted performance
• Global Balanced – Equity Focused – 10 year risk adjusted performance
Why Mawer: Industry Recognition
Mawer Industry Recognition
2007
• Fund Manager of the Year
• Best Canadian Equity Pooled Fund
• Best International Equity Pooled Fund
• International Equity Fund of the Year
• Winner in 2002, 2003, 2005
• Finalist in 2004 and 2006
FundMorningstar
Rating
Mawer World Investment Fund*
Manulife Tax-Managed Growth Fund
Mawer Canadian Diversified Investment Fund
Mawer Canadian Equity Fund*
Mawer Canadian Bond Fund
Mawer U.S. Equity Fund
As of April 30, 2008 Morningstar Research Inc. All rights reserved. The information contained herein: is proprietary to Morningstar and/or its content providers; may not be copied or distributed; and is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from this information. The Morningstar Risk-Adjusted Rating, commonly referred to as the Star Rating, relates the risk-adjusted performance of a fund to that of its category peers and is recalculated monthly. A fund scoring between the top 10% to 22.5% of its fund category receives five or four stars respectively. The overall Star rating for a fund is a weighted combination of its three, five, and ten year performance history. Overall ratings are adjusted where a fund has less than five or ten year’s history. Go to www.morningstar.ca for more details on the calculation of Morningstar Risk-Adjusted Ratings.
* Morningstar Fund Analyst Picks
Excellent Morningstar Ratings
Average Outperformance vs. Benchmarks and Peer Groups During 6 Month Down Markets
Why Mawer: Downside Protection
Source: Globe HySales® – all 6 month down periods since inception of each fund. As at April 30, 2008.For illustration purposes only .
Fund vs Peers
3.36%
2.44%
3.91%
2.67%
0.0%
1.0%
2.0%
3.0%
4.0%
Mawer CanadianDiversified
Investment Fund
Mawer U.S. Equity
Fund
Mawer WorldInvestment
Mawer CanadianEquity Fund
Fund vs Benchmark
5.05%
2.21%
5.18%6.00%
0.0%
2.0%
4.0%
6.0%
Mawer CanadianDiversified
Investment Fund
Mawer WorldInvestment
Mawer CanadianEquity Fund
Fund
Mawer U.S. Equity
Fund Fund
# of Calendar Years with Positive Returns*
Mawer World Investment Fund Inception Date: November 6, 1987 14/20
Mawer Canadian Diversified Investment Fund Inception Date: January 1, 1988 17/19
Mawer U.S Equity Fund Inception Date: December 10, 1992 11/15
Mawer Canadian Equity Fund Inception Date: June 3, 1991 11/16
Manulife Tax- Managed Growth Fund Inception Date: Aug 23, 2001 5/6
Mawer Canadian Bond Fund Inception Date: June 14, 1991 14/16
Source: PALTrak as of April 30, 2008
*Since inception of Fund (as listed)
Why Mawer: Reliable Performance
Fund 3 mo. 6 mo. 1 yr. 3 yr. 5 yr. 10 yr. 15 yr.
Mawer World Investment Fund 1 1 1 1 1 1 1
Mawer Canadian Diversified Investment Fund 2 1 1 1 1 1 1
Mawer U.S Equity Fund 2 1 1 2 2 2 2
Mawer Canadian Bond Fund 2 1 1 1 1 1 2
Mawer Canadian Equity Fund 3 2 2 2 3 1 2
Manulife Tax-Managed Growth Fund 3 3 1 1 2 N/A N/A
Source: PALTrak as of April 30, 2008.Note: Manulife Tax-Managed Growth Fund 10 year and 15 year performance unavailable due to inception of fund August 2001.
1st Quartile Performance
3
mo.
6
mo. YTD
1
yr.
3
yr.
5
yr.
10
yr.
Since
Inception*
Mawer World Investment Fund 6.1 -3.2 -2.1 -4.7 11.5 14.0 6.5 8.9
Median International Equity - MF 4.9 -5.7 -3.3 -12.0 6.2 10.5 1.9 N/A
Mawer Canadian Diversified Investment Fund 3.8 -0.7 -0.4 0.1 7.8 9.7 6.1 8.2
Median Global Equity Balanced - MF 3.0 -3.2 -1.4 -4.7 5.3 7.6 3.2 N/A
Manulife Tax-Managed Growth Fund 2.7 -5.5 -3.8 -2.6 8.0 8.3 N/A 3.0
Median Global Equity - MF 3.3 -5.1 -3.1 -9.9 4.8 7.6 1.1 N/A
Mawer U.S Equity Fund 1.1 0.9 -2.1 -4.7 11.5 14.0 6.5 8.9
Median U.S Equity - MF 0.9 -5.5 -4.4 -14.2 -0.8 1.5 -1.8 N/A
Mawer Canadian Equity Fund 5.9 -5.3 -0.8 3.3 14.0 16.3 9.5 10.3
Median Canadian Equity - MF 6.0 -5.5 0.0 1.6 14.0 16.9 7.6 N/A
Mawer Canadian Bond Fund 1.6 4.5 2.2 4.7 3.8 5.0 5.2 7.1
Median Canadian Fixed Income -MF 1.5 3.8 2.0 3.8 3.3 4.5 4.8 N/A
Source: PALTrak as of April 30, 2008.
Fund performed better than category median
Outperforms Competitors
Three Great Reasons to Invest
1. Award winning performer
2. History of outperformance during down markets
3. Proven long-term returns
Outstanding Performance
Source: Globe Hysales as of April 30, 2008 since inception of Mawer Canadian Diversified Investment Fund: January 1, 1988For illustration purposes only.
Growth of $10,000
Mawer Canadian Diversified Investment Fund
$50,125
$41,315
$30,206
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Mawer Canadian Diversified Investment Fund Blend: 60% MSCI World, 40% Lehman Bros
Globe Global Balanced Peer Index
Jan-88
Oct-88
Jul-8
9
Apr-90
Jan-91
Oct-91
Jul-9
2
Apr-93
Jan-94
Oct-94Ju
l-95
Apr-96
Jan-97
Oct-97Ju
l-98
Apr-99
Jan-00
Oct-00Ju
l-01
Apr-02
Jan-03
Oct-03
Jul-0
4
Apr-05
Jan-06
Oct-06
Jul-0
7
Apr-08
Source: Globe Hysales: Aug 31, 2000 – March 31, 2003For illustration purposes only
August 2000 – March 2003
Mawer Canadian Diversified Investment Fund
Performance During LastBear Market
Mawer Canadian Diversified Investment Fund Blend: 60% MSCI World, 40% Lehman Bros
Globe Global Balanced Peer Index
$ 9,772
$ 7,957
$ 7,175
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
Aug-00 Jun-01 Apr-02 Feb-03
Source: Globe HySales® as of April 30, 2008.For illustration purposes only.
5-Year Risk/Return
Mawer Canadian Diversified Investment Fund
Strong Risk-adjusted Returns
Globe Global Balanced Peer
Index
Mawer Canadian Diversified Investment Fund
Blend: 60% MSCI World, 40%
Lehman Bros
0.0
2.0
4.0
6.0
8.0
10.0
12.0
4.0 4.5 5.0 5.5 6.0 6.5 7.0 7.5 8.0
5 Year Standard Deviation (%)
5 Y
ear
Re
turn
(%
)
Fund Code Trailer Commission
Front-End EPL 1.00% 0 – 5.00%
DSC EPL 0.50% 5.00%
Low Load EPL 1.00% 2.00%
Series F EPL NEG N/A
Elite Series I EPL NEG N/A
Manulife Mawer Diversified Investment Fund
Compensation
Providing Solid Performance
Source: Globe HySales® as of April 30, 2008.For illustration purposes only.
10 Year Growth of $10,000
Mawer Canadian Equity Fund
$24,845
$18,567
$21,858
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
Apr-98
Apr-00
Apr-02
Apr-04
Apr-06
Apr-08
Mawer Canadian Equity Fund Globe Canadian Equity Peer Index S&P/TSX Total Return
Source: Globe HySales® : August 2000 – Sept 2002.For illustration purposes only.
Performance During LastBear Market
August 2000 – September 2002
Mawer Canadian Equity Fund
$9,915
$7,313
$5,679
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
$12,000
Aug-00
Oct-00
Dec-00
Feb-01
Apr-01
Jun-01
Aug-01
Oct-01
Dec-01
Feb-02
Apr-02
Jun-02
Aug-02
Sep-02
Mawer Canadian Equity Fund Globe Canadian Equity Peer Index S&P/TSX Total Return
Source: Morningstar Analyst Report February 22, 2008.For illustration purposes only.
Consistency
Outperformance In Any 12 Month Down Period Since 2000
Mawer Canadian Equity Fund
32%33%12%Frequency
of Loss:
Mawer CanadianEquity Fund
-4.60%
S&P/TSX Composite
TotalReturn Index
-9.60%
Median Canadian
Equity Fund
-13.60%-0.16
-0.14
-0.12
-0.1
-0.08
-0.06
-0.04
-0.02
0
Fund Code Trailer Commission
Front-End EPL 1.00% 0 – 5.00%
DSC EPL 0.50% 5.00%
Low Load EPL 1.00% 2.00%
Series F EPL NEG N/A
Elite Series I EPL NEG N/A
CompensationManulife Mawer Canadian Equity Class
Source: Globe HySales® as of April 30, 2008. Inception date: December 10, 1992. For illustration purposes only.
Growth of $10,000 Since Inception
Mawer U.S. Equity Fund
Outperforming The AverageU.S. Equity Fund
$24,916
$21,463
$0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
Mawer U.S. Equity Fund Globe U.S. Equity Peer Index
Dec-92 Nov-94 Oct-96 Sep-98 Aug-00 Jul-02 Jun-04 May-06 Apr-08
Source: Globe HySales® : Aug 2000 – March 2003.For illustration purposes only.
Performance During LastBear Market
August 2000 – March 2003
Mawer U.S. Equity Fund
$7,556
$5,792$5,482
$5,000
$6,000
$7,000
$8,000
$9,000
$10,000
$11,000
Aug-00
Oct-00
Dec-00
Feb-01
Apr-01
Jun-01
Aug-01
Oct-01
Dec-01
Feb-02
Apr-02
Jun-02
Aug-02
Oct-02
Dec-02
Feb-03
Mawer U.S. Equity Fund
S&P 500 Composite Total Return Index ($Cdn)
Globe U.S. Equity Peer Index
Source: Globe HySales® : all 6 month down periods since inception of Mawer U.S Equity Fund – December 10, 1992 – at April 2008.For illustration purposes only.
Average Outperformance of Mawer U.S. Equity FundDuring All 6 Month Down Markets
Downside Protection
2.21%
2.44%
2.10%
2.15%
2.20%
2.25%
2.30%
2.35%
2.40%
2.45%
2.50%
2.55%
2.60%
Outperformance vs. S&P 500 Index ($Cdn)
Outperformance vs. Globe U.S. Equity Peer Index
Fund Code Trailer Commission
Front-End EPL 1.00% 0 – 5.00%
DSC EPL 0.50% 5.00%
Low Load EPL 1.00% 2.00%
Series F EPL NEG N/A
Elite Series I EPL NEG N/A
Manulife Mawer U.S. Equity Fund
Compensation
3 Months 6 Months 1 Year 3 Years 5 Years 10 Years 15 Years
Mawer Canadian Bond Fund 1.56% 4.49% 4.68% 3.85% 4.96% 5.17% 6.49%
Median 1.33% 3.43% 3.10% 3.05% 4.09% 4.41% 5.86%
Number of Funds 333 317 284 226 200 95 60Rank 87 29 28 57 48 23 17
Quartile Ranking 2 1 1 2 1 1 2
Source: Globe HySales® as of April 30, 2008.Median is the Canadian Fixed Income category.
Leader Among Canadian Bond Funds Mawer Canadian Bond Fund
-1
0
1
2
3
4
5
6
7
8
Ra
te o
f R
etu
rn %
Allocate 10% or 20% of the Mawer Canadian Bond Fund (MCBF) To Your Portfolio
Source: Globe HySales® as of April 30, 2008 since inception of Mawer Canadian Bond Fund: June 1991.For illustration purposes only.
Minimize Risk In Your Equity Portfolio
Result: Risk decreases Result: Returns stay the course
Add10%
MCBF
Add 20%
MCBF
S&P/TSX
“Which leads to…”
Risk (%)
Risk decreases
Add 20%MCBF
Add 10%MCBF
S&P/TSX
Ret
urn
(%)
0
2
4
6
8
10
12
11.00 11.50 12.00 12.50 13.00 13.50 14.00 14.50 15.00
10.9% 10.6% 10.3%
Ret
urn
(%
)
0
2
4
6
8
10
12
For illustration purposes only.Source: Globe HySales® s as at April 30, 2008, since inception of Mawer Canadian Bond Fund, June 1991.
Better Risk-adjusted PerformanceMawer Canadian Bond Fund
By adding 20% MCBF, thereturn per unit of risk (return/risk)increases from 0.74 to 0.82
Add10%MCBF
Add 20%MCBF
S&P/TSX
0.74
0.78
0.82
Ret
urn
/Ris
k
0.68
0.70
0.72
0.74
0.76
0.78
0.80
0.82
0.84
0.86
0.88S&P/TSX
90% S&P/TSX 10% Mawer Cdn. Bond Fund
80% S&P/TSX 20% Mawer Cdn. Bond Fund
Fund Code Trailer Commission
Front-End EPL 0.50% 0 – 5.00%
DSC EPL 0.25% 5.00%
Low Load EPL 0.50% 2.00%
Series F EPL NEG N/A
Elite Series I EPL NEG N/A
CompensationManulife Mawer Canadian Bond Fund
Source: PALTrak as of April 30, 2008 using 3 year Tax Efficiency Pre Liquidation Ratios.For illustration purposes only. Manulife Mawer Tax-Managed Growth Fund previously Manulife Tax-Managed Growth Fund.
Helping You Keep More of Your Money
Growth of $100,000 at 8% per annumusing 3 year after-tax pre-liquidation ratios
Manulife Mawer Tax-Managed Growth Fund
$465,406
$414,474
$354,754
99.9% Ratio - Manulife Mawer Tax-Managed Growth Fund 92.1% Ratio – Average Global Equity Mutual Fund
81.7% Ratio – Average All Mutual Funds
$0
$50000
$100000
$150000
$200000
$250000
$300000
$350000
$400000
$450000
$500000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Source: Globe HySales® September 30, 2005 to April 30, 2008.For illustration purposes only.
Growth of $10,000 Since September 2005
Manulife Tax-Managed Growth Fund
Outperformance of Mawer
$11,264
$10,760$10,992
$8,000
$9,000
$10,000
$11,000
$12,000
$13,000
$14,000
Sep-05
Oct-05
Dec-05
Feb-06
Apr-06
Jun-06
Aug-06
Oct-06
Dec-06
Feb-07
Apr-07
Jun-07
Aug-07
Oct-07
Dec-07
Feb-08
MSCI World ($Cdn) Manulife Tax-Managed Growth Fund Globe Global Equity Peer Index
Apr-08
Source: Globe HySales® as of April 30, 2008.For illustration purposes only.
Better Risk-adjusted ReturnsManulife Tax-Managed Growth Fund
3 Year Risk/Return
0
1
2
3
4
5
6
7
8
7 7.5 8 8.5 9 9.5
Globe Global Equity Peer Index Manulife Tax-Managed Growth Fund MSCI World ($Cdn)
Risk (%)
Ret
urn
(%
) .
Compensation
Fund Fund Code Trailer Commission
Front-End EPL562 1.25% 0 – 5.00%
DSC EPL462 0.50% 5.00%
Low Load EPL762 1.00% 2.00%
Series F EPL662 NEG N/A
Elite Series I EPL862 NEG N/A
Manulife Mawer Tax-Managed Growth Fund
Superior Growth
Source: Globe HySales® as of April 30, 2008, Mawer World Investment Fund data prior to June 1989 provided by Mawer Investment Management. Mawer World Investment Fund inception date November 1987. For illustration purposes only. Performance histories are not indicative of future performance.
Mawer World Investment Fund:
Growth of $10,000 Since Inception
$56, 997
$34, 278$33, 276
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
Mawer World Investment Fund MSCI EAFE ($Cdn)
Globe International Equity Peer Index
Nov-87 Oct-90 Sep-93 Aug-96 Jul-99 Jun-02 May-05 Apr-08
$0
Solid Outperformance In All Markets...
Source: Globe HySales® as of April 30, 2008. Mawer World Investment Fund inception date November 1987.For illustration purposes only. Performance histories are not indicative of future performance.
Mawer World Investment FundRolling 36 month Up/Down-market
outperformance
82%
87%
18%
0%
13%
100%
0% 20% 40% 60% 80% 100%
Up
Down
All Markets
% of time fund outperforms benchmark
Outperforms Underperforms
Mawer World Investment FundAverage Rolling 36 month Annualized
Return10.02%
6.64% 6.35%
0%
2%
4%
6%
8%
10%
Mawer WorldInvestment Fund
MSCI EAFE($Cdn)
Globe InternationalEquity Peer Index
Compensation
Fund Fund Code Trailer Commission
Front-End EPL8521 1.00% 0 – 5.00%
DSC EPL8421 0.50% 5.00%
Low Load EPL8721 1.00% 2.00%
Series F EPL8621 NEG N/A
Elite Series I EPL8821 NEG N/A
Manulife Mawer World Investment Class
Global Small Caps Have Historically Provided Superior Growth
Growth of $10,000of Global Small Cap Index
Source: Standard & Poors & Globe HySales® July 1989 – April 30, 2008.For illustration purposes only.
Jul-89
Oct-90
Jan-92
Apr-93
Jul-94
Oct-95
Jan-97
Apr-98
Jul-99
Oct-00
Jan-02
Apr-03
Jul-04
Oct-05
Jan-07
Apr-08
$42,188
$34,683
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
S&P/Citigroup Global Equity Index (<$1B market cap, $Cdn) MSCI World ($Cdn)
Global Small Caps Offer Similar Risk to Broader Index
Source: Standard & Poors & Globe HySales® July 1989 – April 30, 2008. For illustration purposes only.
Ris
k (
Sta
nd
ard
Dev
iati
on
) %
14.13%13.49%
10
11
12
13
15
16
S&P/Citigroup Global Equity Index (<$1B market cap, $Cdn)
MSCI World ($Cdn)
Growth Potential Without Significantly Higher Risk
Small Caps Have Recovered Quicker From Bear Markets
Source: Standard & Poors & Globe HySales® April 30, 2003 – April 30, 2008.For illustration purposes only.
Growth of $10,00 After Last Bear MarketApril 2003 – April 2008
S&P/Citigroup Global Equity Index (<$1B market cap, $Cdn) MSCI World ($Cdn)
$16,946
$14,625
$10000
$12000
$14000
$16000
$18000
$20000
$22000
$24000
Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 Oct-05 Apr-06 Oct-06 Apr-07 Oct-07 Apr-08
Compensation
Fund Code Trailer Commission
Front-End EPL 1.00% 0 – 5.00%
DSC EPL 0.50% 5.00%
Low Load EPL 1.00% 2.00%
Series F EPL NEG N/A
Elite Series I EPL NEG N/A
Manulife Mawer Global Small Cap Fund
Important Notes
• The information provided in this presentation is for advisor use only and is not intended for the general public
• The performance of the Mawer mutual funds does not mean that the Manulife Mawer mutual funds will provide the same returns
• Performance histories are not indicative of future performance
• Manulife Funds and Manulife Corporate Classes are managed by Manulife Mutual Funds, a division of Elliott & Page Limited
• Manulife Investments is the brand name identifying the personal wealth management lines of business offered by The Manufacturers Life Insurance Company (Manulife Financial) and its subsidiaries in Canada
• Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation