However with 2022 within the rearview mirror, and charges having already risen, that offers the portfolio added cushion to soak up extra hikes and nonetheless generate earnings. International locations like New Zealand went by a quantitative easing setting, with low yields, which was uninteresting to traders. Now, nevertheless, New Zealand affords a triple A credit score high quality and the five-year a part of the curve can get you 5% to five.5%1.
Whereas this chance set expands, all through this decision-making course of the crew maintains its laser-focus on danger administration. That is built-in into all aspects of managing the portfolio and the crew focuses on 4 key areas of dangers: rate of interest, credit score, international forex, and liquidity.
To do that, the fund leverage’s Manulife Funding Administration’s international experience and talent to speculate anyplace on the earth. It’s beneath fixed vigilance 24 hours a day six days per week, with the corporate’s supporting merchants, analysis analysts and danger managers on the bottom in Boston and Hong Kong.
Threat managers first, the fund’s managers deal with these key dangers whereas adhering to a disciplined funding strategy that mixes basic top-down and bottom-up evaluation. The fund is versatile and dynamic in nature, making the most of altering credit score and forex markets.
Factored within the risk-assessment course of is Manulife Funding Administration’s devoted ESG crew, which determines, like every other evaluation inside the fund, whether or not it’s getting paid pretty for the dangers it screens. If the reply isn’t any, or the corporate in query will not be open to engagement concerning addressing these points, these positions are eradicated from the fund.