Skip to main content
Select your role:
  • Individual Investor
  • Intermediary
  • Institutional investor

Important Notes:

  1. Manulife Advanced Fund SPC – US Bank Equity Segregated Portfolio (“Manulife US Bank Equity Fund” or the “Fund”) invests primarily in equities and equity-related investments of US banks, which exposes investors to concentration and equity market risk.
  2. The Fund does not guarantee distribution of dividends, the frequency of distribution, and the amount/rate of dividends. The Fund may at its discretion pay dividend out of capital or gross income while charging / paying all or part of its fees and expenses out of its capital. This amounts to a return or withdrawal of part of an investor’s original investment or from any capital gains attributable to that original investment, and may result in an immediate reduction of the net asset value per share of the respective share classes after the distribution date.
  3. The Fund may invest in equities of small- and mid-capitalisation companies, which can involve liquidity and volatility risks, and is subject to greater risk than is customarily associated with investments in larger capitalisation companies.
  4. Investment involves risk. The Fund may expose its investors to capital loss. Investors should not make decisions based on this material alone and should read the offering document for details, including the risk factors, charges and features of the Fund and its share classes.

US banking sector: Unlocking value from accelerated growth momentum

With a much-improved credit environment since the outbreak of COVID-19, growth momentum has accelerated in the US banking sector. In fact, we think a multistage bank recovery is already under way. We believe that continued economic recovery from the pandemic downturn clearly will support banks’ fundamentals, and there is upside potential to earnings estimates if the economy continues to improve given the revenue rebound through higher loan growth and higher rates in the years ahead.

4 strong fundamentals of US banking sector

Accelerating loan growth drives a revenue & earnings rebound, with tailwinds from potential rate hikes

As the economic rebound gains momentum and government stimulus programs wind down, we expect loan demand to accelerate. A potential uptick in lending would drive net interest income higher, fueling the revenue rebound, while a more normalized interest-rate environment would provide an additional catalyst.


US banking industry: Total loans (USD billions)1


Solid financial position with record levels of capital

Higher excess capital enables higher capital returns to shareholders through dividend payouts, share buybacks and M&As.


US banking industry: Excess capital levels2


Creating synergies via M&A

We believe the current environment is conducive to M&A activity. The consolidations not only unleashed values of the acquired banks, with a direct impact on boosting stock prices, but also create synergies to the acquiring bank with a sizable reduction in operating costs.


US banks: continued consolidation3


Attractive valuations relative to history

US banking industry valuation is trading at a meaningful discount to its historical average today, with potential for higher returns and multiple expansion. We believe that attractive valuations and the industry’s compounding book value provide a favorable entry point for long-term investors.


US banking industry: Price-to-Book Ratio4


Key features of Manulife US Bank Equity Fund

Experienced team with boutique structure

  • Specialised investment team that owns investment process from research through portfolio construction
  • Well-resourced investment team with deep sector expertise averaging 20 years’ experience
  • Managed by a lead fund manager with investment focus exclusively on US Banks


Time-and market-tested research process

  • Relative-value approach to investing in US banks
  • Long-term outperformance achieved by taking advantage of the market’s focus on short-term factors
  • Fundamentally driven research process using regulatory-based CAMELS5 framework to analyse a bank’s business strategy


Manulife's investment expertise

26+ years

Average experience of
portfolio managers


80% of assets6

Substantially invested
in regional banks




  1. Source: Federal Deposit Insurance Corporation, as of 30 June 2021.
  2. Source: FDIC, 30 June 2021, in USD. Excludes goodwill impairment.
  3. Source: SNL Financial, total bank acquisitions announced, as of 30 September 2021 & FDIC, Number of FDIC-Insured Institutions as of 30 June 2021. LHS refers to left-handside, RHS refers to right-hand side.
  4. Source: S&P Composite 1500 Banks Index, 30 September 2021, in USD.
  5. This is illustrative guideline. Portfolio holdings and characteristics are subject to change at any time. Information about the asset allocation is historical and is not an indication of the future composition. Source: Manulife Investment Management, as of 30 October 2021.
  6. Source: Manulife Investment Management, as of 31 October 2021. This is illustrative guideline. Portfolio holdings and characteristics are subject to change at any time. Information about the asset allocation is historical and is not an indication of the future composition.
  7. Source: Manulife Investment Management, as of 31 March 2022. Manulife Investment Management’s global investment professional team includes expertise from several Manulife IM affiliates and joint ventures; not all entities represent all asset classes. Total investment professionals is comprised of individuals from Manulife Investment Management, Manulife-TEDA Fund Management Co. LTD., a 49% joint venture between Manulife Financial and Northern International Trust, part of the Tianjin TEDA Investment Holding Co. Ltd. (TEDA), and Mahindra Manulife Investment Management Private Limited, a 49% joint venture of Manulife and Mahindra AMC..