Strategies that aim to achieve growth and a stable income potential together with diversification benefits
Regions, sectors, and asset classes can all perform and correlate differently from one another under different markets conditions. A well-balanced multi-asset portfolio can help you navigate through market cycles and effectively grasp valuable investment opportunities.
Current market dislocations are creating an attractive environment for strategic and tactical allocations that aim to maximise income and growth opportunities. Strategic asset allocation serves as a solid foundation, focusing on the expected long-term returns across a broad range of asset classes. Tactical asset allocation, on the other hand, seeks to capitalise on short-term market dynamics.
Our proprietary strategic, tactical, asset allocation and rebalancing strategy aims to provide income and the potential for capital appreciation by tapping into a broad opportunity set of asset classes. In addition, it offers a one-stop-shop solution that combines Manulife’s asset-allocation expertise with a selection of high-quality managers.
Generating higher yields has become increasingly challenging given the prolonged period of declining interest rates. Despite normalization last year, yields are still low in comparison historically.
Income investing has expanded beyond traditional income sources in the past decade and is now tapping into non-traditional sources with the aim to generate income.
Investment securities within income investing1
Historical data shows that the equity option strategies saw shallower drawdowns than the broad equity markets during several market corrections since 2000. This year, option sleeve should benefit from earning high premiums and continue to add value through index and/or country-level option writing, which can be tactically adjusted to navigate market risk.
Option writing: Positioned with the aim to income generation and downside protection2
1. Bloomberg. For illustrative purposes only. Multi asset solutions team, Manulife Investment Management as of December 31, 2022. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment.
2. Bloomberg. Manulife Investment Management, Barclays Point. As of 31 December 2022. A positive distribution yield does not imply a positive return.