Investment Report - Manulifegroupsavings.manulife.com/groupretirement/CPOv2... · Table of Contents PAGE How to Read Fund Descriptions 3 Asset Classes 5 Investment Styles 6 Funds

Investment ReportJune 30, 2012

Group Retirement Solutions

Table of ContentsPAGE

How to Read Fund Descriptions 3

Asset Classes 5

Investment Styles 6

Funds Available

Retirement Date Funds 7

Asset Allocation 17

Guaranteed Interest Accounts and Money Market 23

Fixed Income 27

Balanced 30

Canadian Equity 33

U.S. Equity 39

International/Global Equity 42

i-Watch® 47

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Fund code Each fund is named using a unique code. Identify aspecific fund using its fund code when you select orchange funds.

Asset class The types of investments (such as Canadian Equity,International Equity, Fixed Income) that account for themajority of the fund’s holdings. Funds are colour-coded byasset class.

Please note: Funds classified as “Balanced” hold similarportions of equity and fixed income investments.

Volatility meter The volatility meter is a scale – ranging from low to high –that illustrates the amount that a fund's value is likely tofluctuate. Fund volatility is based on the standarddeviation of monthly returns over a three-year period.Funds in operation for less than three years are ratedusing the longest time period available. For a fund and

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underlying fund where return history is less than one year,no volatility rating will appear. The current volatility meteruses a 25-point volatility scale.

How the underlying fund is invested The pie chart shows the types of investments in the

underlying fund and the percentage of the overall

portfolio they represent.

Top holdings The individual investments in the underlying fund that

comprise the largest percentage of the overall portfolio.

This is determined using the percentage weighting of the

fund’s net market value.

Primary investment processFund managers use a number of approaches to determine

the asset allocation of a fund and to select the individual

securities it will hold. These are the most common

approaches:

• Fundamental Bottom-up – This approach considersthe investment merits of individual companies. The

sector allocation of a fund managed in this way will be

determined by the individual stocks held in the fund.

• Quantitative – This technique applies complexmathematical research and statistical models along with

measurement and research to identify attractive

investments.

• Index – An indexed portfolio is constructed to mimicthe performance of a specific market index. This

approach is also known as passive investing.

• Multi-manager – A multi-manager fund is directed bymore than one investment manager and often

combines different investment styles or asset classes.

Equity style and capitalizationThis chart displays the primary equity investment style(such as value or growth) the fund manager uses to selectsecurities as well as the ‘market capitalization’ of securitiesin the fund. Market capitalization is a term used to definethe total market value of a particular company’soutstanding shares. In the context of an investment fund,this term refers to the size of the companies whose stocksare held in the fund. This term only applies to funds withequity – or stock – holdings.

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Volatility meter

Based on 3 year standard deviation of the Fund

Low (1) High (25)

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BALANCEDÀ Code 5301

Manulife Leith Wheeler Diversified Pooled Fund(Registered Plans Only)

United States Equity 8.87%

International Equity 17.03%

Cash 3.72%

Bond 35.72%

Canadian Equity 34.66%

How the underlying fund is invested

Top holdings within the underlying Fund(As at June 30, 2012)

Leith Wheeler International Pool−A 17.35%

TD Bank 2.69%

Gov’t of Canada, 4.00%, June 2041 2.49%

Canada Housing Trust, 2.75%, December 2015 2.31%

Royal Bank of Canada 1.95%

Bank of Nova Scotia 1.86%

Saputo Inc. 1.85%

Canadian National Railway 1.84%

Canadian Natural Resources 1.64%

Canada Housing Trust, 1.35%, September 2016 1.56%

Primary investment processFundamental, Bottom−up

Equity style and capitalization

Source: Manulife Investment Management Services

Fixed income style


Value Core/Blend Growth

Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading

Note: All rates of return are shown before investment management fees or taxeshave been deducted.

The rate of return is used only to illustrate the effects of the compound growthrate and is not intended to reflect the future values or returns in the Fund.

UNDERLYING FUND −> Leith Wheeler Diversified PoolObjective The Leith Wheeler Diversified Pooled Fund seeks to provide investors with arelatively stable, superior long−term rate of return through a balanced portfolio ofcommon shares and fixed income securities.

Managed by Leith Wheeler Inv Counsel Ltd.

Fund managers Neil Watson

Inception date February 2001Total assets $710.6 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in October 2003. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife Fund.

* Only full calendar year returns are shown.

Overall past performanceThis graph shows how a $10,000 investment in this fund would have changed in value over time, based on grossreturns.

* For illustration purposes only. Includes mutual/pooled fund performance as indicated. Actual fund performance couldbe expected to vary.

Annual compound returns (As at June 30, 2012)

This table shows the historical annual compound total return of the Fund compared withthe composite benchmark, as outlined in the Rate of return expectation below.

1−year 2−year 3−year 5−yearSince

inception

Manulifeinception

date

MLI Leith WheelerDiversified

2.22% 8.59% 9.13% 2.12% 6.78% Oct 2003

Blend: MLI Leith WheelerDiversified

−1.04% 5.50% 5.65% 0.64% −

Rate of return expectation The fund’s performance is benchmarked against a blend of:

· 35% DEX Universe Bond Index· 30% S&P/TSX Total Return Index · 15% S&P 500 Index ($ Cdn)· 15% MSCI EAFE Index ($ Cdn) · 5% DEX 91 Day T−bill Index

Source: The Globe and Mail Inc.

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How to read Fund Descriptions

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Fixed Income StyleThis chart shows the different approaches a manager usesto select fixed income holdings within the portfolio.

Underlying fund Market-based investment options available to group plansare usually fund-on-fund investments which invest inexisting pooled funds or mutual funds. These are knownas the underlying funds. When a contribution is made to aManulife fund, it’s used to purchase units of thecorresponding underlying fund. For example, contributionsto the Manulife Trimark Income Growth Fund purchaseunits of the Trimark Income Growth Fund.

Each Manulife fund may hold a small cash component,and the underlying fund may do the same. A fund-on-fund strategy seeks to produce similar returns to theunderlying fund within the Manulife fund.

Objective The fund’s primary investment goal(s) as determined bythe fund manager.

Managed by This names the investment management firm whooversees the fund.

Fund managers The name of the lead fund manager(s) accountable forinvestment decisions in the underlying fund.

Inception date The date the underlying fund was first available forpurchase.

Total assets The total market value of all assets invested in theunderlying fund on a specific date.

Historical gross returns The performance of the fund over a specified period.Performance histories are shown for illustrative purposesthey are not a guarantee of future performance. Unitvalues fluctuate with the market value of the underlyingfund’s assets. Gross rates of return mean the rates ofreturn before investment management fees (IMFs) andtaxes are deducted, Goods and Services Tax (GST)/Harmonized Sales Tax (HST).

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An individual who invests in the fund earns a net returnafter fees. Management fees vary by firm and by plan.Returns shown here represent results for the Manulifefund and/or its underlying fund.

Year by year returns This shows the one-year return of the fund during eachyear illustrated in the accompanying graph.

Overall past performance This graph shows how a $10,000 investment in the fundchanged in value over a specified period, and the value ofthat investment at the end of the period. It also comparesthe value of that investment with the value of the sameinvestment in a related, broadly-based index.

Annual compound returns Returns for a specified period expressed as an annualizedrate.

Manulife inception date The first full month the fund was available to ManulifeRetirement Solutions plans.

Rate of return expectation The benchmark whose performance the fund managerexpects to meet or exceed over the long term. Investmentsheld in this benchmark are indicative of the investmentsheld in the fund.

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Asset Classes

RETIREMENT DATE FUNDS: A fund selected closest to a

preferred retirement date with an asset mix composition

based on the length of time remaining until the preferred

retirement date.

ASSET ALLOCATION: A fund that invests in a diverse

range of asset classes, investor styles and fund

managers with the goal of maximizing expected return

while minimizing volatility for each investor profile.

GUARANTEED INTEREST ACCOUNT: A fund that earns

a fixed interest rate from the date of deposit until the date

of maturity. The interest rate is determined on the date of

deposit and does not change.

MONEY MARKET: A fund that invests in short-term

securities.

FIXED INCOME: A fund that invests in fixed income

securities that pay interest, such as corporate and

government bonds. The interest rate earned is more

commonly referred to as a ‘coupon rate’ and is

expressed as a percentage.

BALANCED: A fund that invests primarily in a combination

of common and preferred stock, bonds and short-term

securities. A typical balanced fund concentrates on capital

preservation and growth while mitigating risk.

CANADIAN LARGE CAP EQUITY: A fund that invests

primarily in shares of companies incorporated in Canada.

While the fund may hold some shares of small companies,

it invests primarily in medium-to-large companies listed on

Canadian stock exchanges.

CANADIAN SMALL/MID CAP EQUITY: A fund that

invests primarily in shares of small and medium

companies incorporated in Canada.

U.S. LARGE CAP EQUITY: A fund that invests primarily in

shares of companies incorporated in the U.S. While the

fund may hold some shares of small companies, the fund

invests primarily in medium-to-large companies.

INTERNATIONAL EQUITY: A fund that invests primarily in

shares of companies incorporated outside North America.

GLOBAL EQUITY: A fund that invests in shares of

companies incorporated in one of the following three

geographic regions – Asia, Europe and the Americas.

Each asset class is represented by a different colour. The fund pages in this Group Investment Reportand on Manulife’s website are colour-coded to reflect the asset class they represent.

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ACTIVELY MANAGED FUND: A fund that attempts to

out-perform the applicable benchmark by deviating from the

benchmark weights in securities, sectors, countries and/or

asset classes.

BLEND INVESTMENT STYLE: An investment style that uses

more than one style (e.g. a combination of growth and value

investment styles).

BOTTOM UP: A management style that selects companies

based on their own characteristics, regardless of the industry

or region in which they operate. This is an alternative to the

Top Down investment style, which focuses on an industry or

region then invests in companies in that category.

CORE INVESTMENT STYLE: An investment style that

typically maintains similar industry weights as the relevant

index and tries to add incremental value through security

selection.

GROWTH INVESTMENT STYLE: An investment style that

purchases securities with a greater than average growth

potential. A key characteristic of a growth stock is a high

Price to Earnings (P/E) ratio.

INDEX FUND: A fund in which the investment manager

tries to replicate the performance of the benchmark. This

can be accomplished by purchasing a proportionate weight

of every security in the benchmark, or by purchasing

alternate securities/vehicles to be used as proxies for

securities in the benchmark.

INTEREST RATE ANTICIPATION INVESTMENT STYLE:

An investment style that adjusts the duration of the fixed

income portfolio based on forecasted movements in the

interest rate.

VALUE INVESTMENT STYLE: An investment style that

purchases securities with market prices cheaper than their

corresponding price from a valuation model. Value securities

typically have assets, cash flows and earnings selling at a

discount relative to the market.

YIELD CURVE FORCASTING INVESTMENT STYLE

(YIELD ENHANCEMENT): An investment style that forecasts

the change in relationship between yield to maturity and

term to maturity and positions the portfolio accordingly.

Investment Styles

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Retirement Date Funds

Manulife’s Retirement Date Funds (asset class: Target Date Funds) are a series of eight funds with a pre-determined maturity or

retirement date. Available with dates in five-year intervals (2015 – 2050), this option requires investors to select a fund closest

to their preferred retirement date. The asset mix composition of each fund is based on the length of time remaining until the

date of maturity. This means the asset mix of the portfolio – in this instance the proportion of fixed income securities and

equities – changes automatically as the fund approaches its maturity. As the equity component of the fund slowly decreases as

the fund approaches its maturity date, the asset mix of the portfolio becomes more conservative.

For investors who are already retired or approaching retirement, a Manulife Retirement Income Portfolio is available.

These target date funds are well-suited for an investor who does not want to regularly review and rebalance an investment

portfolio or continually check on investment performance.

FUND PAGECODE NUMBER

Manulife Retirement Income Fund 2000 8

Manulife Retirement Date 2015 Fund 2015 9








Volatility meter


Low (1) High (25)

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TARGET DATE Code 2000

Manulife Retirement Income Fund

Fixed Income 54.50%

Real Estate 1.50%

U.S. Equity 7.00%

Mortgage 10.50%



How the fund is invested

Top Target Allocation of the FundMLI Cdn Bond (MAM) 15.19%MLI Fixed Income Plus (AB) 10.50%MLI Mortgage Backed Fund (MAM) 10.50%MAM Strategic Income Pooled 10.00%MLI Cdn Universe Bond (CIBC) 9.38%MLI Cdn Large Cap Value Eq (MAM) 6.25%MAM Canadian Bond Index Pooled 4.75%MLI Bond (Addenda) 4.69%MLI Canadian Equity Value (SR) 3.13%MLI Canadian Equity (Greystone ) 3.13%MLI Pure Canadian Equity Grw (MAM) 3.13%MLI U.S. Div Grwth Eq (Wellington) 2.86%MLI U.S. Large Cap Val (T. Rowe) 2.86%MAM US Equity Index Pooled 2.28%MLI Emerging Market Value (DFA) 1.75%MLI Cdn Large Cap Growth Eq (MB) 1.75%MLI International Eq (Templeton) 1.63%MLI World Investment (Mawer) 1.63%MLI Canadian Real Estate Investment 1.50%MAM Canadian Equity Index Pooled 1.38%

Primary investment processMulti−manager



Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Fund is managed to provide a balance between current income andgrowth of capital, with emphasis on income and capital preservation. This fund isdiversified by asset class and investment style with the objective of achieving superiorrisk−adjusted returns.

Managed by Manulife Financial

Fund managers Various (please refer to Top Target Allocation of the Fund on this page)

Inception date November 2010 Total assets $7.9 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in November 2010.







inception

Manulifeinception

date

MLI Retirement IncomeFund

2.82% − − − 3.57% Nov 2010

Blend: MLI RetirementIncome Fund

4.15% 7.02% 7.11% 3.88% −

Rate of return expectation The benchmark for this fund is adjusted annually. As at January 1, 2012, the benchmark is as follows:

· 65.0% DEX Universe Bond Total Return Index· 21.0% S&P/TSX Total Return Index· 7.0% MSCI EAFE Total Return Index ($Cdn)· 7.0% S&P 500 Total Return Index ($Cdn)


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Volatility meter


Low (1) High (25)

5


Manulife Retirement Date 2015 Fund

U.S. Equity 9.37%

Real Estate 2.03%


Mortgage 9.88%

Fixed Income 49.52%



Top Target Allocation of the FundMLI Cdn Bond (MAM) 13.58%MAM Strategic Income Pooled 10.00%MLI Mortgage Backed Fund (MAM) 9.88%MLI Fixed Income Plus (AB) 9.38%MLI Cdn Universe Bond (CIBC) 8.40%MLI Cdn Large Cap Value Eq (MAM) 7.06%MLI Bond (Addenda) 4.20%MAM Canadian Bond Index Pooled 3.97%MLI Canadian Equity Value (SR) 3.55%MLI Canadian Equity (Greystone ) 3.55%MLI Pure Canadian Equity Grw (MAM) 3.55%MLI U.S. Div Grwth Eq (Wellington) 3.23%MLI U.S. Large Cap Val (T. Rowe) 3.23%MAM US Equity Index Pooled 2.92%MLI Canadian Real Estate Investment 2.03%MLI Emerging Market Value (DFA) 2.03%MLI Cdn Large Cap Growth Eq (MB) 2.03%MLI International Eq (Templeton) 1.91%MLI World Investment (Mawer) 1.91%MAM Canadian Equity Index Pooled 1.52%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Fund is managed to provide a balance between current income andgrowth of capital with emphasis on income and capital preservation. This fund isdiversified by asset class and investment style with the objective of achieving superiorrisk−adjusted returns. The Fund will commence with approximately 53% in equities,while the remainder of the Fund will be invested in bonds, mortgages and money marketinvestments. The Fund’s asset mix will decline to approximately 35% in equities in theyear 2015.











inception

Manulifeinception

date

MLI Retirement Date 2015Fund

2.23% 7.01% 7.57% 2.18% 4.52% Nov 2005

Blend: MLI Retirement Date2015

3.18% 7.44% 7.24% 2.88% −




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Volatility meter


Low (1) High (25)

6




Real Estate 2.54%

Mortgage 7.84%

U.S. Equity 11.41%

Fixed Income 41.36%



Top Target Allocation of the FundMLI Cdn Bond (MAM) 10.65%MAM Strategic Income Pooled 10.00%MLI Cdn Large Cap Value Eq (MAM) 8.08%MLI Mortgage Backed Fund (MAM) 7.84%MLI Fixed Income Plus (AB) 7.34%MLI Cdn Universe Bond (CIBC) 6.61%MLI Canadian Equity (Greystone ) 4.31%MLI Canadian Equity Value (SR) 4.31%MLI Pure Canadian Equity Grw (MAM) 4.31%MLI U.S. Div Grwth Eq (Wellington) 4.09%MLI U.S. Large Cap Val (T. Rowe) 4.09%MAM Canadian Bond Index Pooled 3.46%MLI Bond (Addenda) 3.31%MAM US Equity Index Pooled 3.22%MLI International Eq (Templeton) 2.55%MLI World Investment (Mawer) 2.55%MLI Canadian Real Estate Investment 2.54%MLI Emerging Market Value (DFA) 2.54%MLI Cdn Large Cap Growth Eq (MB) 2.54%MAM Canadian Equity Index Pooled 1.77%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Fund is managed to provide a balance between current income andgrowth of capital, with emphasis on income and capital preservation. This fund isdiversified by asset class and investment style with the objective of achieving superiorrisk−adjusted returns. The Fund will commence with approximately 66% in equities,while the remainder of the Fund will be invested in fixed income, mortgages and moneymarket investments. The Fund’s asset mix will decline to approximately 35% in equities inthe year 2020.











inception

Manulifeinception

date


0.69% 7.16% 7.93% 1.11% 4.22% Nov 2005


1.55% 7.62% 7.40% 1.80% −




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Volatility meter


Low (1) High (25)

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U.S. Equity 14.10%

Mortgage 5.49%

Real Estate 3.00%

Fixed Income 31.11%



Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 9.51%MAM Strategic Income Pooled 9.49%MLI Cdn Bond (MAM) 7.19%MLI Mortgage Backed Fund (MAM) 5.49%MLI U.S. Div Grwth Eq (Wellington) 5.31%MLI U.S. Large Cap Val (T. Rowe) 5.31%MLI Canadian Equity (Greystone ) 5.21%MLI Canadian Equity Value (SR) 5.21%MLI Pure Canadian Equity Grw (MAM) 5.21%MLI Fixed Income Plus (AB) 4.95%MLI Cdn Universe Bond (CIBC) 4.49%MAM US Equity Index Pooled 3.48%MLI International Eq (Templeton) 3.34%MLI World Investment (Mawer) 3.34%MLI Emerging Market Value (DFA) 3.17%MLI Cdn Large Cap Growth Eq (MB) 3.13%MLI Canadian Real Estate Investment 3.00%MAM Canadian Bond Index Pooled 2.75%MLI Canadian Small Cap Value (FGP) 2.26%MLI Cdn Growth Opportunities (MAM) 2.26%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Fund is managed to provide a balance between current income andgrowth of capital, with emphasis on growth of capital. This fund is diversified by assetclass and investment style with the objective of achieving superior risk−adjusted returns.The Fund will commence with approximately 77% in equities, while the remainder of theFund will be invested in fixed income, mortgages and money market investments. TheFund’s asset mix will decline to approximately 35% in equity investments in the year2025.











inception

Manulifeinception

date


−1.19% 7.18% 8.09% 0.08% 3.93% Nov 2005


−0.44% 7.42% 7.29% 0.57% −




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Volatility meter


Low (1) High (25)

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Real Estate 3.00%

Mortgage 3.78%

U.S. Equity 16.95%

Fixed Income 21.42%



Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 11.22%MAM Strategic Income Pooled 7.78%MLI U.S. Div Grwth Eq (Wellington) 6.76%MLI U.S. Large Cap Val (T. Rowe) 6.76%MLI Canadian Equity (Greystone ) 5.93%MLI Pure Canadian Equity Grw (MAM) 5.93%MLI Canadian Equity Value (SR) 5.93%MLI Cdn Bond (MAM) 4.49%MLI International Eq (Templeton) 4.05%MLI World Investment (Mawer) 4.05%MLI Mortgage Backed Fund (MAM) 3.78%MLI Emerging Market Value (DFA) 3.74%MLI Cdn Large Cap Growth Eq (MB) 3.56%MAM US Equity Index Pooled 3.43%MLI Canadian Small Cap Value (FGP) 3.11%MLI Cdn Growth Opportunities (MAM) 3.11%MLI Fixed Income Plus (AB) 3.10%MLI Canadian Real Estate Investment 3.00%MLI Cdn Universe Bond (CIBC) 2.78%MAM Canadian Equity Index Pooled 2.37%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Fund is managed to provide a balance between current income andgrowth of capital, with emphasis on growth of capital. This fund is diversified by assetclass and investment style with the objective of achieving superior risk−adjusted returns.The Fund will commence with approximately 82% in equity investments, while theremainder of the Fund will be invested in fixed income, mortgages and money marketinvestments. The Fund’s asset mix will decline to approximately 35% in equities in theyear 2030.











inception

Manulifeinception

date


−2.94% 6.86% 7.97% −0.62% 3.49% Nov 2005


−2.13% 6.96% 6.97% −0.26% −




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Volatility meter


Low (1) High (25)

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Mortgage 2.85%

Real Estate 3.05%

Fixed Income 16.15%

U.S. Equity 18.54%



Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 12.10%MLI U.S. Div Grwth Eq (Wellington) 7.56%MLI U.S. Large Cap Val (T. Rowe) 7.56%MAM Strategic Income Pooled 6.65%MLI Canadian Equity (Greystone ) 6.31%MLI Pure Canadian Equity Grw (MAM) 6.31%MLI Canadian Equity Value (SR) 6.31%MLI World Investment (Mawer) 4.42%MLI International Eq (Templeton) 4.42%MLI Emerging Market Value (DFA) 4.05%MLI Cdn Large Cap Growth Eq (MB) 3.79%MLI Canadian Small Cap Value (FGP) 3.58%MLI Cdn Growth Opportunities (MAM) 3.58%MAM US Equity Index Pooled 3.43%MLI Cdn Bond (MAM) 3.09%MLI Canadian Real Estate Investment 3.05%MLI Mortgage Backed Fund (MAM) 2.85%MAM Canadian Equity Index Pooled 2.53%MLI Fixed Income Plus (AB) 2.14%MAM EAFE Equity Index Pooled 2.03%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Fund is managed to provide a balance between current income andgrowth of capital, with emphasis on growth of capital. This fund is diversified by assetclass and investment style with the objective of achieving superior risk−adjusted returns.The Fund will commence with approximately 84% in equities, while the remainder of theFund will be invested in fixed income, mortgages and money market investments. TheFund’s asset mix will gradually decline to approximately 35% in equities in the year 2035.











inception

Manulifeinception

date


−3.69% 6.71% 7.90% −0.89% 3.38% Nov 2005


−2.96% 6.73% 6.86% −0.59% −




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Volatility meter


Low (1) High (25)

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Fixed Income 13.94%

Mortgage 2.46%

Real Estate 3.18%


U.S. Equity 19.29%



Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 12.36%MLI U.S. Div Grwth Eq (Wellington) 7.90%MLI U.S. Large Cap Val (T. Rowe) 7.90%MLI Canadian Equity (Greystone ) 6.48%MLI Canadian Equity Value (SR) 6.48%MLI Pure Canadian Equity Grw (MAM) 6.48%MAM Strategic Income Pooled 5.74%MLI International Eq (Templeton) 4.53%MLI World Investment (Mawer) 4.53%MLI Emerging Market Value (DFA) 4.18%MLI Cdn Large Cap Growth Eq (MB) 3.89%MLI Canadian Small Cap Value (FGP) 3.77%MLI Cdn Growth Opportunities (MAM) 3.77%MAM US Equity Index Pooled 3.49%MLI Canadian Real Estate Investment 3.18%MLI Cdn Bond (MAM) 2.67%MAM Canadian Equity Index Pooled 2.59%MLI Mortgage Backed Fund (MAM) 2.46%MAM EAFE Equity Index Pooled 2.09%MLI Fixed Income Plus (AB) 1.85%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading














inception

Manulifeinception

date


−3.93% 6.68% 7.90% −1.03% 3.28% Nov 2005


−3.31% 6.68% 6.79% −0.78% −




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Volatility meter


Low (1) High (25)

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Fixed Income 12.92%

Mortgage 2.28%

Real Estate 3.24%


U.S. Equity 19.63%



Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 12.48%MLI U.S. Div Grwth Eq (Wellington) 8.06%MLI U.S. Large Cap Val (T. Rowe) 8.06%MLI Canadian Equity (Greystone ) 6.55%MLI Canadian Equity Value (SR) 6.55%MLI Pure Canadian Equity Grw (MAM) 6.55%MAM Strategic Income Pooled 5.32%MLI International Eq (Templeton) 4.59%MLI World Investment (Mawer) 4.59%MLI Emerging Market Value (DFA) 4.24%MLI Cdn Large Cap Growth Eq (MB) 3.93%MLI Canadian Small Cap Value (FGP) 3.86%MLI Cdn Growth Opportunities (MAM) 3.86%MAM US Equity Index Pooled 3.52%MLI Canadian Real Estate Investment 3.24%MAM Canadian Equity Index Pooled 2.62%MLI Cdn Bond (MAM) 2.47%MLI Mortgage Backed Fund (MAM) 2.28%MAM EAFE Equity Index Pooled 2.12%MLI Fixed Income Plus (AB) 1.71%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading






Inception date June 2007 Total assets $78.3 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife fund since itsinception in June 2007.







inception

Manulifeinception

date


−4.14% 6.63% 7.87% −1.09% −1.34% Jun 2007


−3.47% 6.66% 6.76% −0.89% −




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Volatility meter


Low (1) High (25)

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Fixed Income 12.07%

Mortgage 2.13%

Real Estate 3.29%


U.S. Equity 19.92%



Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 12.58%MLI U.S. Div Grwth Eq (Wellington) 8.19%MLI U.S. Large Cap Val (T. Rowe) 8.19%MLI Canadian Equity (Greystone ) 6.61%MLI Canadian Equity Value (SR) 6.61%MLI Pure Canadian Equity Grw (MAM) 6.61%MAM Strategic Income Pooled 4.97%MLI International Eq (Templeton) 4.63%MLI World Investment (Mawer) 4.63%MLI Emerging Market Value (DFA) 4.29%MLI Cdn Large Cap Growth Eq (MB) 3.97%MLI Canadian Small Cap Value (FGP) 3.94%MLI Cdn Growth Opportunities (MAM) 3.94%MAM US Equity Index Pooled 3.55%MLI Canadian Real Estate Investment 3.29%MAM Canadian Equity Index Pooled 2.65%MLI Cdn Bond (MAM) 2.31%MAM EAFE Equity Index Pooled 2.15%MLI Mortgage Backed Fund (MAM) 2.13%MLI Fixed Income Plus (AB) 1.60%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading






Inception date June 2007 Total assets $57.2 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife fund since itsinception in June 2007.







inception

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−4.31% 6.61% 7.89% −1.23% −1.45% Jun 2007


−3.64% 6.64% 6.76% −0.98% −




16

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Asset Allocation

Asset Allocation funds are portfolios of underlying funds diversified by fund manager, asset class and investor style. Asset

Allocation funds are designed to make investing convenient. They provide fund participants with a balance of capital growth

and preservation consistent with five investor styles ranging from conservative to aggressive. Asset Allocation funds diversify by

investing in a number of underlying funds so plan members do not need to manage these portfolios.

Manulife offers five actively managed Asset Allocation funds. The actively managed funds strive to out-perform a variety of

benchmark index composites.

The funds are re-balanced periodically to maintain their respective long-term target asset mixes which ensures each fund’s

underlying composition fulfills its objectives.

FUND PAGE

CODE NUMBER

Actively Managed

Manulife Conservative Asset Allocation Fund 2001 18

Manulife Moderate Asset Allocation Fund 2002 19

Manulife Balanced Asset Allocation Fund 2003 20

Manulife Growth Asset Allocation Fund 2004 21

Manulife Aggressive Asset Allocation Fund 2005 22

Volatility meter


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ASSET ALLOCATIONÀ Code 2001

Manulife Conservative Asset Allocation Fund

Fixed Income 68.00%


U.S. Equity 4.00%

Mortgage 12.00%



Top Target Allocation of the FundMLI Cdn Bond (MAM) 19.50%MLI Fixed Income Plus (AB) 13.50%MLI Cdn Universe Bond (CIBC) 12.00%MLI Mortgage Backed Fund (MAM) 12.00%MAM Strategic Income Pooled 10.00%MAM Canadian Bond Index Pooled 7.00%MLI Bond (Addenda) 6.00%MLI Cdn Large Cap Value Eq (MAM) 4.00%MLI Canadian Equity Value (SR) 2.00%MLI Canadian Equity (Greystone ) 2.00%MLI Pure Canadian Equity Grw (MAM) 2.00%MLI U.S. Large Cap Val (T. Rowe) 1.90%MLI U.S. Div Grwth Eq (Wellington) 1.90%MAM EAFE Equity Index Pooled 1.00%MAM Canadian Equity Index Pooled 1.00%MLI Cdn Large Cap Growth Eq (MB) 1.00%MLI Emerging Market Value (DFA) 1.00%MLI International Eq (Templeton) 0.90%MLI World Investment (Mawer) 0.90%MAM US Equity Index Pooled 0.40%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Manulife Conservative Asset Allocation Fund is managed to provide ahigh level of current income and capital preservation with some consideration given togrowth of capital. This fund is diversified by asset class and investment styles with theobjective of achieving superior risk−adjusted returns over the long term. The Fund willgenerally maintain 80% of its investments in fixed income funds and 20% in equityfunds, though each segment may vary up to 10% from time to time.



Inception date February 1999 Total assets $441.1 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in February 1999.







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MLI Conservative AssetAllocation

5.20% 6.14% 6.55% 4.44% 5.52% Feb 1999

Blend: MLI ConservativeAsset Allocation

5.17% 6.13% 6.13% 4.63% −

Rate of return expectation Over the long term, the Fund attempts to outperform a benchmark portfolio that is comprised of thefollowing:

· 65% DEX Universe Bond Total Return Index· 15% DEX 91−Day T−bill Total Return Index· 12% S&P/TSX Total Return Index· 4% S&P 500 Total Return Index ($Cdn)· 4% MSCI EAFE Total Return Index ($Cdn)

Effective May 1, 2010, assets in this fund reflect GRS assets exclusively. Performance data for periodsbeginning after May 1, 2010 will reflect detail strictly for the GRS fund. Data for periods that beganprior to May 1 will continue to reflect detail for the combined fund.


18

Volatility meter


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4


Manulife Moderate Asset Allocation Fund

U.S. Equity 8.00%

Real Estate 2.00%


Mortgage 10.00%

Fixed Income 50.00%



Top Target Allocation of the FundMLI Cdn Bond (MAM) 13.80%MAM Strategic Income Pooled 10.00%MLI Mortgage Backed Fund (MAM) 10.00%MLI Fixed Income Plus (AB) 9.50%MLI Cdn Universe Bond (CIBC) 8.50%MLI Cdn Large Cap Value Eq (MAM) 7.00%MLI Bond (Addenda) 4.30%MAM Canadian Bond Index Pooled 4.00%MLI Canadian Equity Value (SR) 3.50%MLI Canadian Equity (Greystone ) 3.50%MLI Pure Canadian Equity Grw (MAM) 3.50%MLI U.S. Div Grwth Eq (Wellington) 3.20%MLI U.S. Large Cap Val (T. Rowe) 3.20%MAM US Equity Index Pooled 2.90%MLI Canadian Real Estate Investment 2.00%MLI Emerging Market Value (DFA) 2.00%MLI Cdn Large Cap Growth Eq (MB) 2.00%MLI International Eq (Templeton) 1.90%MLI World Investment (Mawer) 1.90%MAM Canadian Equity Index Pooled 1.50%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Manulife Moderate Asset Allocation Fund is managed to provide abalance between current income and growth of capital with a greater emphasis onincome and capital preservation. This fund is diversified by asset class and investmentstyles with the objective of achieving superior risk−adjusted returns over the long term.The Fund will generally maintain 60% of its investments in fixed income funds and 40%in equity funds, though each segment may vary up to 10% from time to time.











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MLI Moderate AssetAllocation

2.53% 6.21% 6.83% 2.88% 5.45% Feb 1999

Blend: MLI Moderate AssetAllocation

3.41% 7.02% 7.12% 3.76% −


· 60% DEX Universe Bond Total Return Index· 24% S&P/TSX Total Return Index· 8% S&P 500 Total Return Index ($ Cdn)· 8% MSCI EAFE Total Return Index ($ Cdn)



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Volatility meter


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Manulife Balanced Asset Allocation Fund


U.S. Equity 12.00%

Mortgage 6.00%

Real Estate 3.00%

Fixed Income 34.00%



Top Target Allocation of the FundMAM Strategic Income Pooled 10.00%MLI Cdn Large Cap Value Eq (MAM) 9.00%MLI Cdn Bond (MAM) 8.00%MLI Mortgage Backed Fund (MAM) 6.00%MLI Fixed Income Plus (AB) 5.50%MLI Canadian Equity (Greystone ) 5.00%MLI Canadian Equity Value (SR) 5.00%MLI Cdn Universe Bond (CIBC) 5.00%MLI Pure Canadian Equity Grw (MAM) 5.00%MLI U.S. Div Grwth Eq (Wellington) 4.90%MLI U.S. Large Cap Val (T. Rowe) 4.90%MAM US Equity Index Pooled 3.50%MLI International Eq (Templeton) 3.10%MLI World Investment (Mawer) 3.10%MAM Canadian Bond Index Pooled 3.00%MLI Canadian Real Estate Investment 3.00%MLI Cdn Large Cap Growth Eq (MB) 3.00%MLI Emerging Market Value (DFA) 3.00%MLI Bond (Addenda) 2.50%MAM Canadian Equity Index Pooled 2.00%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Manulife Balanced Asset Allocation Fund is managed to provide abalance between growth of capital and current income with a greater emphasis ongrowth of capital. This fund is diversified by asset class and investment styles with theobjective of achieving superior risk−adjusted returns over the long term. The Fund willgenerally maintain 60% of its investments in equity funds and 40% in fixed incomefunds, though each segment may vary up to 10% from time to time.



Inception date February 1999 Total assets $1,987.6 million








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MLI Balanced AssetAllocation

−0.19% 7.00% 7.79% 1.69% 5.71% Feb 1999

Blend: MLI Balanced AssetAllocation

0.35% 6.91% 7.09% 2.05% −


· 40% DEX Universe Bond Total Return Index· 36% S&P/TSX Total Return Index· 12% S&P 500 Total Return Index ($ Cdn)· 12% MSCI EAFE Total Return Index ($ Cdn)



20

Volatility meter


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Manulife Growth Asset Allocation Fund


Real Estate 3.00%

Mortgage 3.00%

U.S. Equity 16.00%

Fixed Income 17.00%



Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 12.00%MLI U.S. Div Grwth Eq (Wellington) 7.40%MLI U.S. Large Cap Val (T. Rowe) 7.40%MAM Strategic Income Pooled 7.00%MLI Canadian Equity (Greystone ) 6.30%MLI Pure Canadian Equity Grw (MAM) 6.30%MLI Canadian Equity Value (SR) 6.30%MLI World Investment (Mawer) 4.40%MLI International Eq (Templeton) 4.40%MLI Emerging Market Value (DFA) 4.00%MLI Cdn Large Cap Growth Eq (MB) 3.80%MLI Canadian Small Cap Value (FGP) 3.50%MLI Cdn Growth Opportunities (MAM) 3.50%MAM US Equity Index Pooled 3.40%MLI Cdn Bond (MAM) 3.30%MLI Canadian Real Estate Investment 3.00%MLI Mortgage Backed Fund (MAM) 3.00%MAM Canadian Equity Index Pooled 2.50%MLI Fixed Income Plus (AB) 2.30%MAM EAFE Equity Index Pooled 2.00%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



Objective The Manulife Growth Asset Allocation Fund is managed to provide long−term growth of capital with some consideration given to current income. This fund isdiversified by asset class and investment styles with the objective of achieving superiorrisk−adjusted returns over the long term. The Fund will generally maintain 80% of itsinvestments in equity funds and 20% in fixed income funds though each segment mayvary up to 10% from time to time.











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MLI Growth AssetAllocation

−3.34% 6.20% 7.46% −0.66% 5.68% Feb 1999

Blend: MLI Growth AssetAllocation

−2.72% 6.71% 6.98% 0.27% −


· 48% S&P/TSX Total Return Index· 20% DEX Universe Bond Total Return Index· 16% S&P 500 Total Return Index ($ Cdn)· 16% MSCI EAFE Total Return Index ($ Cdn)



21

Volatility meter


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Manulife Aggressive Asset Allocation Fund



Real Estate 4.00%

U.S. Equity 20.00%


Top Target Allocation of the FundMLI Cdn Large Cap Value Eq (MAM) 14.00%MLI U.S. Div Grwth Eq (Wellington) 10.10%MLI U.S. Large Cap Val (T. Rowe) 10.10%MLI Canadian Equity (Greystone ) 7.50%MLI Canadian Equity Value (SR) 7.50%MLI Pure Canadian Equity Grw (MAM) 7.50%MLI International Eq (Templeton) 5.30%MLI World Investment (Mawer) 5.30%MLI Emerging Market Value (DFA) 5.00%MLI Cdn Growth Opportunities (MAM) 5.00%MLI Canadian Small Cap Value (FGP) 5.00%MLI Cdn Large Cap Growth Eq (MB) 4.50%MLI Canadian Real Estate Investment 4.00%MAM US Equity Index Pooled 3.90%MAM Canadian Equity Index Pooled 3.00%MAM EAFE Equity Index Pooled 2.50%





Large

Medium

Small

All Cap



Objective The Manulife Aggressive Asset Allocation Fund is managed to provide long−term growth of capital with no consideration given to current income. This fund isdiversified by asset class and investment styles with the objective of achieving superiorrisk−adjusted returns over the long term. This fund will generally maintain 100% of itsinvestments in equity funds though each segment may vary up to 10% from time to time.











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MLI Aggressive AssetAllocation

−6.24% 6.56% 7.95% −2.16% 5.91% Feb 1999

Blend: MLI Aggressive AssetAllocation

−5.76% 6.48% 6.82% −1.63% −


· 60% S&P/TSX Total Return Index· 20% S&P 500 Total Return Index ($ Cdn)· 20% MSCI EAFE Total Return Index ($ Cdn)



22

23

Guaranteed Interest Accountsand Money Market

Guaranteed Interest Accounts (GIAs)

Similar to Guaranteed Investment Certificates (GICs) offered by banks and trust companies, these accounts guarantee an

interest rate from the date of contribution until maturity. At maturity, original investments and interest earned will reinvest for

the same term unless you provide Manulife with different instructions.

When contributions are invested in these accounts, they earn the current interest rate at the time of the deposit. That interest

is credited to the account monthly and is compounded annually. Each contribution made to a GIA accumulates for the term

selected at the guaranteed rate in effect on the date Manulife’s head office receives the contribution. The GIA operates on a

compound interest basis which means the guaranteed interest rate applies to both principal and accumulated interest.

Manulife offers GIAs for these terms: 1-year, 3-year, and 5-year.

Money Market Funds

Money Market funds invest in high-quality, short-term fixed income securities. By investing in fixed income securities, these

funds are essentially making a short-term loan to a government or corporation and earning interest on its principal. Money

Market funds are typically managed to maintain liquidity, protect the initial investment and provide a moderate level of income.

These funds are ideal for investors who want to preserve capital, who are saving for the short term or who want to maintain a

cash reserve and are comfortable only with the very lowest levels of volatility.

FUND PAGE

CODE NUMBER

Guaranteed Interest Accounts andMoney Market Funds

Manulife Guaranteed Interest Accounts 1001, 1003, 1005 24

Manulife Canadian Money Market Fund (MAM) 3132 25

Manulife Daily High Interest Fund 3191 26

24

WHAT THESE ACCOUNTS OFFER

• Guaranteed returns when held to maturity • Principal and interest backed by the assets of Manulife Financial• Choice of 1, 3, and 5-year terms

Investment codes respectively (1001, 1003, 1005)

HOW THE GUARANTEED INTEREST ACCOUNT IS PROTECTED

Manulife Financial is a member of Assuris. With Assuris, consumers may be entitled toprotection against the loss of their savings and retirement incomes if a member financialinstitution becomes insolvent. You can call Assuris at 1-866-878-1225 for details aboutmaximum coverage guarantees.

Volatility and risk

These accounts offer good returns and excellent investmentsecurity. Consider these accounts if you are an investor whoneeds guaranteed security for your investment and cancommit to investments for a fixed period of time. There isno volatility associated with the return in this account andthere is minimal risk as this is a guaranteed investmentbacked by the general assets of Manulife Financial.

Manulife Guaranteed Interest Accounts

Codes 1001, 1003, 1005GUARANTEED INTEREST ACCOUNTSVOLATILITY METER

Sources : Manulife Financial

Volatility meter


Low (1) High (25)

0

MONEY MARKETÀ Code 3132

Manulife Canadian Money Market Fund (MAM)

Cash 91.76%

Other 0.09%

Bond 8.15%



Gov’t of Canada, 0.00%, November 2012 12.43%

Gov’t of Canada, 0.00%, January 2013 11.11%

Gov’t of Canada, November 2012 6.55%

TD Bank, August 2012 5.36%

Province of Manitoba, September 2012 5.24%

Gov’t of Canada, 0.00%, October 2012 5.15%

CIBC, 2.15%, January 2015 3.94%

Int’l. Bank for Recon. & Devel, 1.62%, October 2012 3.92%

Gov’t of Canada, 0.00%, February 2013 3.92%

Province of Ontario, 2.30%, April 2013 3.92%

Fixed income style


RateAnticipation

YieldEnhancement

SectorTrading



UNDERLYING FUND −> MLI Cdn Money Market (MAM)Objective The Manulife Canadian Money Market Fund is managed to achieve aconsistent level of interest income while attempting to preserve capital and maintainingliquidity. This fund invests primarily in money market securities guaranteed by theGovernment of Canada, its provinces or municipalities, corporations and chartered banks.

Managed by Manulife Asset Management Limited

Fund managers Faisal Rahman, CFA and Maralyn Kobayashi

Inception date January 1999Total assets $758.3 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in July 2002. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife Fund.





This table shows the historical annual compound total return of the Fund compared withthe DEX 91 Day Treasury Bill Index.


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date

MLI Canadian MoneyMarket (MAM)

1.35% 1.32% 1.14% 2.11% 2.64% Jul 2002

DEX 91 Day Treasury BillIndex

0.96% 0.93% 0.73% 1.65% −

Rate of return expectation The Fund is expected to outperform the DEX 91 Day T−Bills.


25

Volatility meter


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0

MONEY MARKETÀ Code 3191

Manulife Daily High Interest Fund

Cash 100.00%


Top holdings(As at June 30, 2012)

Short−term investments 100.00%



Objective The investment objective of the Fund is to provide investors with interestincome by investing in high interest cash accounts.


Fund managers Manulife Financial

Inception date October 2007Total assets $31.4 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in October 2007.





This table shows the historical annual compound total return of the Fund compared withthe DEX 30 Day Treasury Bill Index.


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date

MLI Daily High Interest Fund 1.77% 1.63% 1.42% − 1.99% Oct 2007

DEX 30 Day Treasury BillIndex

0.87% 0.83% 0.62% 1.36% −

Rate of return expectation The Fund is expected to outperform the DEX 30 Day T−Bill Total Return Index.


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27

Fixed Income

Fixed Income funds invest in debt securities issued by corporations, as well as federal, provincial and municipal governments. By

investing in bonds, the fund earns a specified amount of interest based on the coupon rate (interest rate) on the bonds. These

funds are exposed to risks relating to the issuers’ ability to repay the debt at maturity plus changes in interest rates.

Fixed Income funds are appropriate for investors who have less tolerance for volatility and would like to emphasize preservation of

capital.

FUND PAGE

CODE NUMBER

Yield Enhancement

Manulife PH&N Bond Fund 4271 28

Index

Manulife Asset Management Canadian Bond Index Fund 4191 29

Volatility meter


Low (1) High (25)

3

FIXED INCOMEÀ Code 4271

Manulife PH&N Bond Fund

Mortgage Backed 0.82%

Municipal Bonds 0.11%

Federal Bonds 5.90%

Other 21.22%

Provincial Bonds 31.79%

Corporate Debentures 40.16%



Province of Ontario, 7.60%, June 2027 9.92%

Province of Ontario, 6.50%, March 2029 4.03%

Canada Housing Trust, 3.75%, March 2020 1.71%

Royal Bank of Canada, 2.58%, April 2017 1.69%

Royal Bank of Canada, 2.68%, December 2016 1.64%

TD Bank, 5.38%, November 2012 1.41%

Province of Ontario, 5.60%, June 2035 1.36%

Province of Quebec, 3.50%, December 2022 1.35%

Province of Ontario, 8.50%, December 2025 1.32%


Fixed income style


RateAnticipation

YieldEnhancement

SectorTrading



UNDERLYING FUND −> PH&N Bond−OObjective The PH&N Bond Fund is managed to provide relatively high yields andstability of capital by investing primarily in a well−diversified portfolio of fixed incomesecurities issued by Canadian governments and corporations.

Managed by Phillips, Hager & North Inv Mgmt

Fund managers Phillips, Hager & North − Mgmt. Team

Inception date November 1970Total assets $6,766.0 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in January 2003. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife Fund.





This table shows the historical annual compound total return of the Fund compared withthe DEX Universe Bond Total Return Index.


inception

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date

MLI PH&N Bond 8.73% 6.97% 7.64% 7.25% 6.49% Jan 2003

DEX Universe Bond TotalReturn Index

9.50% 7.06% 7.00% 6.96% −

Rate of return expectation The Fund seeks to outperform the DEX Universe Bond Index by 0.50% per annum over a market cyclebefore management fees.


28

Volatility meter


Low (1) High (25)

3

FIXED INCOMEÀ Code 4191

Manulife Asset Management Canadian Bond IndexFund

Other 0.01%

Corporate Debentures 27.23%

Municipal Bonds 1.73%

Federal Bonds 42.35%

Provincial Bonds 28.68%



Gov’t of Canada, 2.25%, August 2014 3.40%

Gov’t of Canada, 1.50%, November 2013 2.03%


Gov’t of Canada, 1.00%, February 2014 1.74%


Canada Housing Trust, 3.15%, June 2014 1.58%


Canada Housing Trust, 2.75%, June 2016 1.53%



Primary investment processIndex



UNDERLYING FUND −> MAM Cdn Bond Index Pld FundObjective The MAM Canadian Bond Index Pooled Fund is managed to provide a rate ofreturn based on the performance of the DEX Universe Bond Index. This fund seeks toearn returns that replicate, as closely as possible, the DEX Universe Bond Index. This is apassively managed fund. To achieve its investment objective, the Fund will invest directlyin bonds and may use derivative instruments in order to replicate the securities of the DEXUniverse Bond Index.


Fund managers Terry Carr, CFA, Andrew Gretzinger, CFA and Hosen Marjaee, CFA

Inception date April 1999Total assets $925.8 million






This table shows the historical annual compound total return of the Fund compared withthe DEX Universe Bond Total Return Index.


inception

Manulifeinception

date

MLI MAM Canadian BondIndex

9.51% 7.05% 6.93% 6.91% 6.28% Oct 2001

DEX Universe Bond TotalReturn Index

9.50% 7.06% 7.00% 6.96% −

Rate of return expectation Over the long term, the Fund is expected to track the performance of the DEX Universe Bond TotalReturn Index.


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Balanced

Balanced funds typically aim to provide investors with a combination of capital growth and income. Balanced funds typically

aim to provide investors with a combination of capital growth and income securities. Balanced funds accomplish this by

investing in a blend of equity and fixed income securities. Balanced fund managers typically set a long-term target for the mix

of bonds and equities in the fund and may make moderate changes to the mix to reflect their outlook on which asset class

represents the best opportunity.

Balanced funds are ideal for investors who seek a diversified portfolio with an average level of volatility and who do not want

to manage the mix of asset classes on their own. Balanced funds are appropriate for investors who are looking for a mix of

growth and income over the long term and are comfortable with some short-term volatility in their investment returns.

FUND PAGE

CODE NUMBER

Value

Manulife Leith Wheeler Diversified Pooled Fund 5301 31

Core/Blend

Manulife Fidelity Canadian Asset Allocation Fund 5141 32

Volatility meter


Low (1) High (25)

6


Manulife Leith Wheeler Diversified Pooled Fund(Registered Plans Only)



Cash 3.72%

Bond 35.72%




Leith Wheeler International Pool−A 17.35%

TD Bank 2.69%


Canada Housing Trust, 2.75%, December 2015 2.31%



Saputo Inc. 1.85%



Canada Housing Trust, 1.35%, September 2016 1.56%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



UNDERLYING FUND −> Leith Wheeler Diversified PoolObjective The Leith Wheeler Diversified Pooled Fund seeks to provide investors with arelatively stable, superior long−term rate of return through a balanced portfolio ofcommon shares and fixed income securities.

Managed by Leith Wheeler Inv Counsel Ltd.

Fund managers Neil Watson

Inception date February 2001Total assets $710.6 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in October 2003. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife Fund.







inception

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MLI Leith WheelerDiversified

2.22% 8.59% 9.13% 2.12% 6.78% Oct 2003

Blend: MLI Leith WheelerDiversified

−1.04% 5.50% 5.65% 0.64% −

Rate of return expectation The fund’s performance is benchmarked against a blend of:

· 35% DEX Universe Bond Index· 30% S&P/TSX Total Return Index · 15% S&P 500 Index ($ Cdn)· 15% MSCI EAFE Index ($ Cdn) · 5% DEX 91 Day T−bill Index


31

Volatility meter


Low (1) High (25)

8


Manulife Fidelity Canadian Asset Allocation

Cash 7.12%



Other 0.10%


Bond 34.84%



TD Bank 4.17%

Fidelity Conv Securities Inv Trust 3.17%

Enbridge Inc. 3.11%


Cenovus Energy 2.32%

SPDR S&P 500 E.T.F. 2.03%

Suncor Energy 1.83%

Potash Corp. of Saskatchewan 1.67%

Bank of Montreal 1.61%

BCE Inc. 1.58%




Fixed income style



Large

Medium

Small

All Cap

RateAnticipation

YieldEnhancement

SectorTrading



UNDERLYING FUND −> Fidelity Canadian Asset Alloc.−OObjective The fund aims to achieve total investment returns by investing in Canadianequity securities, fixed income securities and money market instruments. The fund’sneutral asset allocation is 65% equities, 30% fixed income securities and 5% moneymarket instruments.

Managed by Fidelity Investments Canada ULC

Fund managers Derek Young, MBA, CFA, Geoff Stein, MBA, CFA, Brian Miron, BCom,CFA, Jeffrey Moore, BA, MBAS, CFA, Joe Overdevest, Hugo Lavallée, Darren Lekkerkerker,MBA, CFA and Don Newman, CFA

Inception date December 1994Total assets $1,383.9 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in March 2009. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife Fund.







inception

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MLI Fidelity Canadian AA −2.77% 5.49% 6.45% − 10.64% Mar 2009

Blend: MLI Fidelity CanadianAA

−5.65% 3.21% 4.82% 0.13% −

Rate of return expectation Over a rolling four−year basis, the Fund is expected to outperform a benchmark composed of thefollowing:

· 65% S&P/TSX Capped Composite· 30% DEX Universe Bond Index· 5% DEX 91−Day T−Bill Index


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33

Canadian Equity Canadian Equity funds typically aim to achieve long-term capital growth by investing in a diversified portfolio of shares issuedby Canadian companies. Some Canadian Equity funds invest a portion of their assets in shares of foreign companies. A sharerepresents an ownership stake in a company; therefore, how the Fund performs depends on the success of the companyholdings within the Fund. The Fund’s performance can also be affected by factors such as currency exchange rates andeconomic and political trends.

Canadian Large Cap Equity funds are ideal for investors who have a long-term focus, prefer to invest in Canadian companiesand are generally seeking a lower degree of volatility.

Canadian Small/Mid Cap Equity funds are suitable for investors who have a long-term focus, prefer to invest in Canadiancompanies and are comfortable accepting a higher degree of volatility.


Canadian Large Cap Equity

ValueManulife Scheer Rowlett Canadian Equity Fund 7601 34

Core/BlendManulife Jarislowsky Fraser Canadian Equity Fund 7241 35

GrowthManulife Greystone Canadian Equity Fund 7481 36

IndexManulife Asset Management Canadian Equity Index Fund 7132 37

Canadian Small/Mid Cap Equity

GrowthManulife MMF Growth Opportunities Fund 7122 38

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CANADIAN LARGE CAP EQUITYÀ Code 7601

Manulife Scheer Rowlett Canadian Equity Fund

Cash 1.22%

Other 1.97%

Telecommunication Services 7.00%

Industrials 3.83%

Consumer Discretionary 7.69%

Energy 22.69%

Materials 22.98%Financials 32.62%



TD Bank 8.48%



Barrick Gold Corp. 7.06%

Suncor Energy 6.80%

CIBC 6.48%

Agrium 4.99%








Large

Medium

Small

All Cap



UNDERLYING FUND −> Scheer Rowlett Canadian EquityObjective The Fund seeks to maximize long−term total return while protecting thecapital value of the fund from major market fluctuations.

Managed by Scheer Rowlett & Associates

Fund managers Lloyd Rowlett, Scott Merriman and Rob Dionne

Inception date December 1995Total assets $1,307.6 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in June 2008. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife Fund.





This table shows the historical annual compound total return of the Fund compared withthe S&P/TSX Total Return.


inception

Manulifeinception

date

MLI Scheer RowlettCanadian Equity

−10.87% 3.05% 6.29% − −3.54% Jun 2008

S&P/TSX Total Return −10.25% 4.15% 6.69% −0.74% −

Rate of return expectation The Fund is expected to outperform the S&P/TSX Composite Total Return Index by 2% over four yearrolling periods.


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Manulife Jarislowsky Fraser Canadian Equity Fund

Cash 0.90%

Other sectors 7.50%

Consumer Staples 8.70%

Industrials 8.40%


Other 11.50%

Financials 25.00%Energy 29.00%



TD Bank 6.80%




Enbridge Inc. 3.60%

Metro Inc. 3.60%

SNC−Lavalin Group 3.50%

TransCanada Corp. 3.50%

Cenovus Energy 3.40%






Large

Medium

Small

All Cap



UNDERLYING FUND −> JF Canadian EquityObjective Jarislowsky Fraser’s equity style emphasizes buying long−term growth at areasonable price. Internal resources are primarily relied on to generate investment ideas.Each year, the investment professionals contact and interview more than 200 Canadiancompanies. The portfolio focuses on industry leaders with strong balance sheets andcash flow as well as depth and quality at the management level.

Managed by Jarislowsky Fraser Ltd.

Fund managers Jarislowsky Fraser − Mgmt. Team

Inception date April 1997Total assets $5,426.1 million








inception

Manulifeinception

date

MLI JF Canadian Equity −7.64% 4.86% 5.32% 0.11% 9.03% Oct 2001


Rate of return expectation Over the long term, this fund is expected to outperform the S&P/TSX Total Return Index.


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Manulife Greystone Canadian Equity Fund

Cash 1.49%

Information Technology 5.08%

Other 7.50%

Industrials 6.67%


Materials 17.95%

Energy 24.87%Financials 28.25%



TD Bank 7.93%


Suncor Energy 4.97%


Goldcorp Inc. 4.33%


TransCanada Corp. 3.71%

National Bank of Canada 3.47%

Yamana Gold Inc. 3.24%






Large

Medium

Small

All Cap



UNDERLYING FUND −> Greystone Canadian EquityObjective The Greystone Canadian Equity Fund seeks superior long−term capitalappreciation by investing in the equity securities of Canadian companies.

Managed by Greystone Managed Investments Inc.

Fund managers Greystone Mgd. Invest. − Mgmt. Team

Inception date March 1996Total assets $1,778.0 million

Historical gross returnsGross rates of return are before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife fund since itsinception in March 2007. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife fund.





This table shows the historical annual compound total return of the Fund compared withthe S&P/TSX Composite Index.


inception

Manulifeinception

date

MLI Greystone CanadianEquity

−14.62% 1.31% 4.90% −3.78% −2.72% Mar 2007

S&P/TSX Composite Index −12.81% 1.33% 3.78% −3.57% −

Rate of return expectation The gross rate of return over a full economic cycle is expected to exceed the S&P/TSX CompositeIndex.


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Manulife Asset Management Canadian Equity IndexFund

Cash 3.43%


Industrials 5.83%

Telecommunication Services 5.15%

Other 7.77%

Materials 18.63%

Energy 24.89%Financials 29.62%




TD Bank 5.08%


Suncor Energy 3.22%

Barrick Gold Corp. 2.69%




BCE Inc. 2.28%

Enbridge Inc. 2.26%





Large

Medium

Small

All Cap



UNDERLYING FUND −> MAM Cdn Eq Index Pooled FundObjective The MAM Canadian Equity Index Pooled Fund seeks to track the total returnof the S&P/ TSX Composite Index through investments primarily in common stocks,Income Trusts Royalty trusts, REITS of Canadian issuers which are listed on the S&P/ TSXComposite Index. This is a passively managed fund.


Fund managers Carson Jen and Ram Narayan, CFA


Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in January 1998.







inception

Manulifeinception

date

MLI MAM Canadian EquityIndex

−10.34% 4.13% 6.66% −0.62% 6.28% Jan 1998


Rate of return expectation Over the long term, the Fund is expected to track the performance of the S&P/TSX Total Return Index.


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CANADIAN SMALL/MID CAP EQUITYÀ Code 7122

Manulife MMF Growth Opportunities Fund

Information Technology 4.24%

Financials 17.51%

Industrials 15.88%

Cash 5.24%


Other 5.57%

Energy 20.95%Materials 20.19%



Black Diamond Group 4.29%

Intact Financial 3.20%

Morguard Corp. 2.72%

Gran Tierra Energy 2.51%

Yamana Gold Inc. 2.32%

Linamar Corp. 2.26%

Russel Metals 2.22%

Coastal Energy 2.15%

B2Gold 2.13%

Cameco Corp. 2.05%





Large

Medium

Small

All Cap



UNDERLYING FUND −> Manulife Growth Opportunities FundObjective The MMF Growth Opportunities Fund seeks to provide long−term capitalgrowth by investing primarily in high quality securities and convertible instruments ofsmall and mid−cap Canadian companies.


Fund managers Ted Whitehead, CFA and Jennifer Dowty, CFA

Inception date November 1998Total assets $567.5 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in August 1997. The underlying fund was changed on June 1, 2003 from theElliott & Page Emerging Growth Fund to the Elliott & Page Growth Opportunities Fund.





This table shows the historical annual compound total return of the Fund compared withthe BMO Nesbitt Burns Canadian Small Cap Index.


inception

Manulifeinception

date

MLI MMF GrowthOpportunities

−14.00% 2.74% 12.81% 0.96% 6.66% Aug 1997

BMO Nesbitt Burns CdnSmall Cap Index

−15.76% 5.09% 15.38% −1.12% −

Rate of return expectation Over the long term, the Fund is expected to outperform the BMO Nesbitt Burns Canadian Small CapIndex.


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39

U.S. Equity

U.S. Equity funds are a form of foreign equity and invest in shares of U.S. companies.

These types of funds typically aim to achieve long-term capital growth by investing in shares of companies based in the United

States. A share represents an ownership stake in the company; therefore, how the Fund performs depends on the success of the

company holdings within the Fund. The Fund’s performance can also be affected by such factors as currency exchange rates and

economic and political trends.

These funds are ideal for investors who have a long-term focus, want to include U.S. holdings in their portfolios, and are

comfortable with a higher-than-average level of volatility.

U.S. Equity funds can vary greatly depending on such factors as the size and types of companies in which they invest and the

selection criteria used by the fund manager.

FUND PAGE

CODE NUMBER

U.S. Large Cap Equity

GrowthManulife U.S. Diversified Growth Equity Fund (Wellington) 8196 40

IndexManulife Asset Management U.S. Equity Index Fund 8131 41

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U.S. LARGE CAP EQUITYÀ Code 8196

Manulife U.S. Diversified Growth Equity Fund(Wellington)

Other 4.96%

Cash 5.63%

Consumer Staples 6.82%

Energy 5.81%

Industrials 6.40%

Health Care 13.91%

Consumer Discretionary 21.35%Information Technology 35.12%



Apple 7.95%

Microsoft 4.37%

Cisco Systems 4.23%

IBM Corp. 3.41%

Coca−Cola 3.07%

Philip Morris International 2.59%

EMC Corp. 2.45%

UnitedHealth Group 2.16%

Amgen 2.12%

Exxon Mobil 1.99%





Large

Medium

Small

All Cap



UNDERLYING FUND −> MLI U.S. Div Grwth Eq (Wellington)Objective The Portfolio invests primarily in common stock, real estate securities, anddepositary receipts. The objective of the Diversified Growth investment approach is toprovide long−term total return. The Portfolio may hold significant positions in, or asignificant portion of Portfolio assets may be invested in, securities that are not includedin the Index.


Fund managers Wellington Management Co. − Mgmt. Team

Inception date June 2008Total assets $503.7 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in June 2008.





This table shows the historical annual compound total return of the Fund compared withthe Russell 1000 Growth ($ Cdn).


inception

Manulifeinception

date

MLI U.S. Div Growth Eq(Wellington)

7.12% 14.50% 11.96% − 3.80% Jun 2008

Russell 1000 Growth ($Cdn)

11.77% 17.13% 12.46% 2.00% −

Rate of return expectation Over the long term, this fund is expected to outperform the Russell 1000 Growth Index ($ Cdn).


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U.S. LARGE CAP EQUITYÀ Code 8131

Manulife Asset Management U.S. Equity Index Fund

Cash 1.79%

Energy 10.19%

Health Care 11.60%

Industrials 11.06%


Financials 14.29%

Information Technology 18.20%Other 20.36%



Apple 4.36%

Exxon Mobil 3.20%

Microsoft 1.83%

IBM Corp. 1.80%

General Electric 1.76%

AT&T Inc. 1.67%

Chevron Corp. 1.66%

Johnson & Johnson 1.48%

Federal Home Loan Bank, 0.05%, July 2012 1.44%

Wells Fargo & Co. 1.42%





Large

Medium

Small

All Cap



UNDERLYING FUND −> MAM US Equity Index Pooled FundObjective The Fund aims to achieve investment results that approximate the totalreturn of the S&P 500 Stock Index. To achieve its investment objective, the Fund willinvest directly in common shares and may use derivative instruments such as futures inorder to replicate the returns of the S&P 500 Stock Index. The Fund may also invest aportion of its funds in cash. This is a passively managed fund.


Fund managers Ram Narayan, CFA and Carson Jen


Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in January 1998.





This table shows the historical annual compound total return of the Fund compared withthe S&P 500 Net of 15% Tax ($ Cdn).


inception

Manulifeinception

date

MLI MAM U.S. Equity Index 10.97% 14.66% 11.01% −0.88% 1.62% Jan 1998

S&P 500 Net of 15% Tax 10.84% 14.64% 11.00% −0.98% −

Rate of return expectation Over the long term, the Fund is expected to outperform the S&P 500, net of 15% withholding tax ($Cdn).


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42

International/Global Equity

International Equity funds invest in shares of non-North American companies.

Global Equity funds typically aim to achieve long-term capital growth by investing in shares of companies in Asia, Europe andthe Americas.

A share represents an ownership stake in a company; therefore, how the Fund performs depends on the success of thecompany holdings within the Fund. The Fund’s performance can also be affected by such factors as currency exchange ratesand economic and political trends around the world.

International/Global Equity funds are ideal for investors who have a long-term focus, want to include foreign holdings in theirportfolio and are comfortable with a higher degree of volatility.

These funds vary greatly, depending on the size and types of companies invested in, the countries and regions invested in, andthe selection criteria used by the manager.


International Equity

ValueManulife International Equity Fund (Templeton) 8192 43

IndexManulife BlackRock International Equity Index Fund 8321 44

Global Equity

ValueManulife Trimark Fund 8181 45

GrowthManulife MFS Mclean Budden Global Growth Equity Fund 8161 46

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INTERNATIONAL EQUITYÀ Code 8192

Manulife International Equity Fund (Templeton)

Singapore 4.54%

Netherlands 6.66%

Germany 10.05%

Switzerland 7.45%

Japan 8.90%

France 10.49%

United Kingdom 20.68%Other 31.23%



Vodafone Group PLC 2.34%

Samsung Electronics Co. 2.21%

Roche Holdings 2.16%

Royal Dutch Shell PLC 2.10%

Telenor ASA 2.09%

Sanofi 2.08%

Toyota Motor Corporation 2.04%

ING GROEP 1.80%

Singapore Telecommunications 1.80%

GlaxoSmithKline PLC 1.75%





Large

Medium

Small

All Cap



UNDERLYING FUND −> MLI International Eq (Templeton)Objective The fundamental investment objective of the Fund is to achieve long−termcapital appreciation, primarily through investments in equity securities of companiesoutside Canada and the United States.


Fund managers Maarten Bloeman







This table shows the historical annual compound total return of the Fund compared withthe MSCI EAFE ($ Cdn).


inception

Manulifeinception

date

MLI International Equity −10.80% 3.72% 1.90% −7.04% 1.43% Oct 2001

MSCI EAFE ($ Cdn) −8.46% 4.39% 1.88% −6.43% −

Rate of return expectation Fund is expected to outperform the MSCI EAFE Total Return Index ($ Cdn).


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INTERNATIONAL EQUITYÀ Code 8321

Manulife BlackRock International Equity Index Fund

Australia 8.59%

Germany 7.86%

Sweden 3.08%

Switzerland 8.38%

France 8.87%

Other 18.84%

Japan 21.45%United Kingdom 22.93%



Nestle S.A. 2.02%

HSBC Holdings PLC 1.62%

Vodafone Group PLC 1.43%

Novartis AG 1.32%

BP PLC 1.29%

Royal Dutch Shell PLC 1.26%

Roche Holdings 1.24%

GlaxoSmithKline PLC 1.17%

Toyota Motor Corporation 1.13%

BHP Billiton Limited 1.06%





Large

Medium

Small

All Cap



UNDERLYING FUND −> BlackRock CDN MSCI EAFE Equity IdxObjective The BlackRock Daily EAFE Equity Index Fund’s objective is to match thereturns of the MSCI EAFE Index ("index") as closely as possible. BlackRock uses anindexing approach, where they own assets to match those of the index, in about thesame names, weights, sectors, and countries.

Managed by BlackRock Asset Management Canada Limited

Fund managers Ed Corallo, Joselle Duncan, CFA, Tim Wong, CFA and Creighton Jue,CFA

Inception date April 1999Total assets $1,238.6 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in November 2003. To provide further historical information, the shaded arearepresents the returns of the underlying fund for the period before the start date of theManulife Fund.





This table shows the historical annual compound total return of the Fund compared withthe MSCI EAFE ($ Cdn).


inception

Manulifeinception

date

MLI BR Intl Equity Index −8.81% 4.03% 1.65% −6.72% 1.94% Nov 2003

MSCI EAFE ($ Cdn) −8.46% 4.39% 1.88% −6.43% −

Rate of return expectation Over the long term, this fund is expected to track the return and risk profile of the MSCI EAFE Index($ Cdn).


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GLOBAL EQUITYÀ Code 8181

Manulife Trimark Fund

Ireland 2.39%

Brazil 2.68%

Germany 7.07%

United Kingdom 6.53%

Japan 6.97%

Switzerland 8.79%

Other 31.11%United States 34.46%



Nestle S.A. 3.35%

Walt Disney 3.23%

British American Tobacco 3.20%

Becton Dickinson 3.08%

Google 2.82%

Novartis AG 2.73%

Aryzta AG 2.71%

Apple 2.65%

Nabtesco Corp. 2.55%

Visa Inc. 2.52%





Large

Medium

Small

All Cap



UNDERLYING FUND −> Trimark Fund−SCObjective The Trimark Fund seeks to achieve strong capital growth with a high degreeof reliability over the long term. The Fund invests primarily in equities of companiesanywhere in the world.

Managed by Invesco Canada Ltd.

Fund managers Michael Hatcher, CFA, MSC, Master Math, Darren McKiernan, CFA, B.Com, Finance and Jeff Feng CFA, MBA

Inception date September 1981Total assets $833.7 million






This table shows the historical annual compound total return of the Fund compared withthe MSCI World ($ Cdn).


inception

Manulifeinception

date

MLI Trimark 7.58% 12.05% 9.63% −3.13% 5.38% Oct 1997

MSCI World ($ Cdn) 1.02% 9.77% 6.79% −3.22% −

Rate of return expectation To be the top of its respective category over the long term, while striving to outperform the MSCIWorld Index ($ Cdn).


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GLOBAL EQUITYÀ Code 8161

Manulife MFS McLean Budden Global Growth EquityFund

United Kingdom 8.87%

France 3.58%

Germany 3.08%

Netherlands 3.47%

Switzerland 5.43%

Japan 8.88%

United States 47.18%Other 19.51%



Apple 3.00%Exxon Mobil 2.64%Target Corp. 1.94%Japan Tobacco Inc. 1.91%Royal Dutch Shell PLC 1.78%Vodafone Group PLC 1.56%Danone Group 1.55%Oracle Corp. 1.35%Pfizer 1.30%Danaher Corp. 1.27%Heineken NV 1.21%JP Morgan Chase & Co. 1.21%Google 1.15%Philip Morris International 1.15%ACE Ltd. 1.10%





Large

Medium

Small

All Cap



UNDERLYING FUND −> MFS MB Global ResearchObjective The Fund seeks long−term capital appreciation by investing principally instocks of companies worldwide that have higher sustainable earnings growth and returnsthan their industry, improving fundamentals, and whose stock valuations do not fullyreflect their long−term growth prospects. The Fund takes a conservative approach andseeks to pay reasonable prices for very high quality, durable franchises that can createshareholder value.

Managed by MFS McLean Budden Limited

Fund managers Jeffrey C. Constantino, CFA, CPA and David Antonelli, MBA, CPA

Inception date March 1996Total assets $928.7 million

Historical gross returnsGross rates of return are shown before investment management fees have beendeducted. The solid area represents the gross returns of the Manulife Fund since itsinception in July 1997.





This table shows the historical annual compound total return of the Fund compared withthe MSCI All Country World Growth Index (Net Dividends Reinvested).


inception

Manulifeinception

date

MLI MFS MB GlobalGrowth Equity

−2.51% 5.90% 3.60% −3.85% 2.90% Jul 1997

MSCI ACWI Growth ($Cdn) (Net Dividends)

0.16% 9.65% 7.13% −2.02% −

Rate of return expectation The Fund strives to outperform the MSCI All Country World Growth Index (Net Dividends Reinvested)over a full market cycle, typically defined as three to five years.


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47

The philosophy

The Investment Management Services (IMS) team focuses on quality, not quantity. They believe past performance is not an accurate indicator of future performance, butrather high-quality investment firms who adhere todocumented investment policies and procedures are morelikely to deliver superior results over time. It is their job tomonitor the fund managers on Manulife's platform soinvestors don’t have to. They understand how important itis for Manulife Financial’s stakeholders to have sufficientinformation to make prudent investment decisions. This iswhy i-Watch® exists.

Investment Management Services

One of Manulife Financial’s core competencies is providinginvestment management services in the countries in whichwe operate, including the U.S., Canada, Hong Kong, Japanand other Asian countries. In Canada, the IMS team iscomprised of analysts and industry professionals whosecredentials match professionals in the most respectedinvestment consulting firms.

By operating objectively and independently of any businessunits, the IMS team ensures fund partners meet strictrequirements for fund management. Given that moneymanagement is a global concern, team members oftenconsult with their Manulife counterparts throughout theworld. Fund partners adhere to the same best practicesparticularly when IMS is selecting or monitoring investmentfunds representing non-North American mandates.

i-Watch®

Fund selection

Funds available through Manulife Financial are screened andselected using a strict process. Performance is one screeningcriterion, but is not the most important determinant offuture returns. In IMS’ view, the consideration of aninvestment firm’s qualitative aspects, together with itsquantitative aspects, is a better indicator of the fund’s long-term viability.

Reflecting this viewpoint, Manulife Financial’s selectionprocess includes an in-depth review of factors that determinethe underlying quality of the fund manager. IMS emphasizestheir qualitative review in the decision-making process andscreens for the following qualities:

• The stability of the organization, including successionplanning and adherence to a code of ethics

• The depth, quality and overall experience level of thepeople managing the assets

• A clearly defined investment process that has beenapplied consistently over time

• A record of performance that compares favourably toappropriate benchmarks and peer managers

• Risk characteristics that are in line with investmentmandates

The IMS team is made up of independent professionals whoget ‘behind the numbers’ by visiting and interviewing fundmanagers on a regular basis, probing issues in a way that canonly come from years of experience.

Ongoing monitoring process

While the selection process is important, the ongoingmonitoring process is what makes i-Watch unique. Once aninvestment fund is selected, the IMS team continues to applythe same level of analysis used to select the fund manageroriginally. With regular onsite due diligence meetings, theIMS team conducts ongoing systematic reviews of every fundavailable through Manulife Financial. The due diligencereview includes a comprehensive examination of the evolvingcharacteristics of the fund and face-to-face meetings withthe fund manager.

Manulife Financial believes in forming long-term relationshipswith our manager partners. If a fund fails to live up to itsmandate, we will work with the fund manager to addressspecific concerns. If these additional steps fail to address ourexpectations, the fund manager will be replaced or themandate will be capped. The choice of actions is based onminimizing any disruption to investors.

i-Watch®

i-Watch, and the i-Watch logo are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

Available 24 hours a day, 7 days a week at www.manulife.ca/GRO

Manulife, Manulife Financial, the Manulife Financial For Your Future logo, the Block Design, the Four Cubes 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 license.

06/2012

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Documents

Investment Report - Manulifegroupsavings.manulife.com/groupretirement/CPOv2... · Table of Contents PAGE How to Read Fund Descriptions 3 Asset Classes 5 Investment Styles 6 Funds