manulife asset allocation portfolios

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MANULIFE ASSET ALLOCATION PORTFOLIOS

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7.20%7.75%

6.46% 6.17%

4.58%

2.58%

US Equities Canadian Equities 55% Equities /45% Fixed Income

Canadian Bonds Global Bonds Average Asset AllocationInvestor Return*

Asset Returns Over the Last 20 Years and the Average Investor’s Experience

Trailing 20 Year Annualized Return as of December 31, 2017

Source: Morningstar Direct as of 12/31/2017. Returns in USD Indices represented by: US Equities: S&P 500 TR; Canadian Equities – S&P/TSX Composite TR; Canadian Bonds – FTSE TMX Canada Universe Bond; International Equity: MSCI EAFE NR; Global Bonds – Bbg Barclays Global Aggregate Bond TR; 55/45 – 17.5% S&P/TSX Composite TR, 12% S&P 500 TR, 12% MSCI World NR, 13.5% MSCI EAFE NR, 20% FTSE TMX Canada Universe Bond, 7% BbgBarclays US Aggregate Bond TR, 18% BbgBarclays Global Aggregate Bond TR; 35/65 - 13% S&P/TSX Composite TR, 7% S&P 500 TR, 6% MSCI World NR, 9% MSCI EAFE, 33% FTSE TMX Canada Universe Bond, 10% BbgBarclays US Aggregate Bond TR, 22% BbgBarclays Global Aggregate Bond TR. Indices are unmanaged and cannot be purchased directly by investors. Past performance is not a guarantee of future results. *Average asset allocation investor return is based on an analysis by Dalbar Inc., which utilizes the net of aggregate mutual fund sales, redemptions and exchanges each month as a measure of investor behavior. Returns are annualized (and total return where applicable) and represent the 20-year period ending 12/31/17 to match Dalbar’s 2017 analysis. For illustration purposes only.

20-year Standard Deviation

14.87 20.38 10.61 9.15 5.62 n/a

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Mar-02 Sep-03 Mar-05 Sep-06 Mar-08 Sep-09 Mar-11 Sep-12 Mar-14 Sep-15 Mar-17 Sep-18

Milli

ons

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onth

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urn

Canadian Equity Rolling 12 Month Returns Flows Into Equities, rolling 12 months

It’s Time in the Market, Not Timing the Market

Source: Morningstar Direct, as of September 30, 2018. For illustrative purposes only. Returns in Canadian Dollars. Equity returns representative of S&P/TSX Composite TR.Performance histories are not indicative of future results. It is not possible to invest directly into an Index

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There is a Difference Between Diversification and Asset Allocation

Diversification Asset Allocation

Risk-based Outcome – oriented

Static Active

Long-Term (Strategic) Long- and short-term (Strategic & Opportunistic)

A Technique Utilizes multiple techniques within a risk aware framework

OBJECTIVE

ALLOCATION

TIME HORIZON

ROLE OF RISK MANAGEMENT

For illustration purposes only

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Manulife Asset Allocation Team

Global Asset Allocation Investing

“We are strategic, long-term allocators of capital looking to take advantage of opportunities in the market in a risk-aware manner.”

Source: Manulife Asset Management, December 31, 2018.

37 Investment Professionals

Worldwide

Over $140 billion

(CAD) AUM

Located in Boston,

Toronto and Hong Kong

Over 350 years of collective asset allocation

experience across team

140 distinct asset class forecasts Global

Multi-Asset Portfolio

Management

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Manulife Asset Allocation TeamGlobal Asset Allocation Investing

As of December 31, 2018

Boston Toronto Hong KongDavid McGrory, CFA

Sr. Investment Analyst / Sr. Trader23 Years’ Experience

Matthew Murphy, CFASr. Investment Analyst16 Years’ Experience

Judith HlavacSr. Trader

22 Years’ Experience

Michael Comer, CFASr. Investment Analyst13 Years’ Experience

Vlad Kyrychenko, PhD, CFASr. Investment Analyst23 Years’ Experience

Alexandre Richard, CFASr. Investment Analyst8 Years’ Experience

Jason Zhang, CFASr. Investment Analyst11 Years’ Experience

Tony ZhouInvestment Analyst7 Years’ Experience

Wendy HoTrader


Zahron MitchellSr. Investment Analyst7 Years’ Experience

Bonnie Sit, CFASr. Investment Analyst13 Years’ Experience

Nicole WongInvestment Analyst4 Years’ Experience

David Kobuszewski, CFASr. Investment Analyst18 Years’ Experience

James RobertsonHead of Asset Allocation, Canada

Sr. Portfolio Manager36 Years’ Experience

Bob BoydaSenior Advisor


Robert Sykes, CFAPortfolio Manager


Geoff Kelley, CFAPortfolio Manager


Chris Walsh, CFAPortfolio Manager


Sarah Lu, CFA, FRMSr. Portfolio Manager24 Years’ Experience

Nathan Thooft, CFAGlobal Head, Asset Allocation Team

Beta ManagementToronto

Brett Hryb, CFASr. Portfolio Manager25 Years’ Experience

Ashik Shahpurwala, CFA, PRMSr. Portfolio Manager19 Years’ Experience

Jenny Kim, CFASenior Analyst


Boncana Maiga, CFA, CIMPortfolio Manager

14 Years’ ExperienceAllison Greenspan

Senior Analyst10 Years’ Experience

Marco Leung, CFAAnalyst


DerivativesBoston

Gary Li, PhDSr. Portfolio Manager22 Years’ Experience

Richie Yu, PhD, CFASr. Quantitative Analyst11 Years’ Experience

Denis Pyatchanin, CFAInvestment Analyst7 Years’ Experience

Jeffrey WuSr. Derivatives Analyst13 Years’ Experience

Pension & Fiduciary SolutionsBoston

Eric Menzer, CFA, CAIA, AIFGlobal Head, Pension & Fiduciary Solutions

21 Years’ ExperienceBruce Picard, Jr, CFA

Portfolio Manager, Model Portfolio Lead25 Years’ Experience

Johnny Yong, CFASr. Investment Analyst13 Years’ Experience

Joseph O’Connor, CFASr. Investment Analyst10 Years’ Experience

Macroeconomic and StrategyToronto Montreal Hong Kong

Frances DonaldHead of Macroeconomic Strategy


Alex GrassinoSr. Investment Strategist


Geoffrey LewisSr. Investment Strategist

33 Years’ ExperiencePortfolio Specialists

Boston MontrealBenjamin Forssell, CFA

18 Years’ ExperienceEric Martino

14 Years’ ExperienceNicholas Edwards, CFA, CAIA

9 Years’ ExperiencePatrick Murray, CIM, FCSI


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Investment Process

OUR PROCESS IS TIME- AND CYCLE-TESTED, CONSISTENT AND SCALABLE

Build Expected

Return Forecasts

5-year time horizon 140 different asset classes Distinct approaches for equity, fixed income and alternatives

Asset allocation a primary driver of returns Strategies should be complementary Annually reviewed

Asset Class & Strategy Selection

Portfolio Construction

Short-term opportunities reviewed weekly Emphasis on risk management

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7.57.0

3.3

6.8

4.77.1

8.2

5.0

7.4 7.3

2.2 2.03.1

4.6

-4

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CAD LargeCap

CAD SmallCap

US LargeCap

EAFE LargeCap

World Europe EmergingMarkets

GlobalREITs

GlobalInfrastructure

GlobalNatural

Resources

CAD InvGrade Bond

USInvestment

Grade Bonds

US HighYield Bonds

EmergingMarkets Debt

Ret

urn

(%)

Asset Class

Income Return Growth ValuationCurrency Return Price Return Total Return (CAD)

Asset Class Expected Return Components –Third Quarter 2018

Asset Class Expected Return Components – Third Quarter 2018

Source: Manulife Asset Allocation Team, September 30, 2018. Note: Model inputs are factors in Manulife Asset Management research and are not meant as predictions for any particular asset class, mutual fund or investment vehicle. Components not represented in the chart of zero or negligible values. Performance histories are not indicative of future results.

NOT FOR DISTRIBUTION

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Building Blocks used in the Manulife Asset Allocation Portfolios

Manulife‘s Active Managers

80%

Manulife ETFs(by DFA)

10%

3rd Party ETFs10%

For illustration purposes only

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Manulife Dividend Income Fund (Alan Wicks, Jonathan Popper) Manulife Strategic Income Fund (Dan Janis) Manulife World Investment Fund (David Ragan – Mawer) Manulife U.S. All Cap Equity Fund (Sandy Sanders) Manulife Bond Fund (Terry Carr)

Building Blocks

Active Managers

EXAMPLES

Core of portfolio, strategic exposure

Small changes at the margin to allocation expected year-over-year

Utilize well-known, actively managed strategies

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Building Blocks

Manulife Exchange-Traded Funds (ETFs) sub-advised by Dimensional Fund Advisors Canada ULC

Profitability is a measure of current profitability, based on information from individual companies’ income statements. Relative price as measured by the Price to Book ratio

Used for strategic exposure in the Portfolios

Strategic beta ETFs – enhanced broad market exposure

Implementation of empirically proven market premiums/factors (Market, Size, Relative Price, Profitability)

Utilizes factors that increase probability for higher expected returns versus traditional market cap-weighted ETFs

Canadian Equity US Equity International Equity

EXPOSURES

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Building Blocks

Diversifying ETFs

Opportunistic “satellite” exposures

Frequent changes on monthly or quarterly basis in order to take advantage of market insights

Objective to enhance return and/or reduce overall risk within the portfolio

Utilize well-known, highly liquid ETFs to shift portfolio to specific asset classes

Canadian financial ETF exposure US industrials ETF exposure European equity ETF exposure

Canadian fixed income ETF exposure

EXAMPLES

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Four Pillar Approach to Ongoing Portfolio Management

We are strategic, long-term allocators of capital – but we do take advantage of shorter term opportunities in the market

FundamentalsTechnicals SentimentEconomic CycleEvaluating the economics of the market – valuation and

cash flow data

Identifying patterns in market data to uncover trends

Feeling of the market –bullish vs. bearish

Expansion vs. RecessionCyclical vs. Secular vs.

Defensive

Source: Manulife Asset Allocation Team

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Investment Process Summary

Active Management Around a Strategic Process

5 year time horizon Reviewed quarterly Annual re-optimization establishes

base-case asset allocation

3 month – 18 month time horizon Reviewed weekly Quantitative models supported by

fundamental decision-making establish views to deviate from strategic view

STRATEGIC ASSET ALLOCATION OPPORTUNISTIC ASSET ALLOCATION

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Current Opportunities

Source: Manulife Asset Management, December 31, 2018.

Offers strong growth driven by favorable demographics, improved earnings and attractive valuations due to six years of underperformance relative to developed equities

Accommodative monetary policy, potential for large dividend yield, operating leverage is a positive for margins, but a risk should growth slow

Yield pickup with protection against potential for rising rates

Incremental yield pickup with good overall credit quality, solid government balance sheets

Japanese Equities¥ Modest valuations, improving ROE measures, strong earnings and economic momentum

Recovery in Oil will drive earnings in this unloved sector that has persistently underperformedCanadian Energy

Opportunities Manulife Conservative Portfolio Manulife Moderate Portfolio Manulife Balanced Portfolio Manulife Growth PortfolioCanadian Energy ETF 0.9% 1.6% 1.7% 2.4%European Equity ETF - 0.7% 1.4% 1.7%Emerging Markets Equity ETF 0.4% 0.8% 1.2% 1.5%Japanese Equity ETF 0.6% 0.9% 0.8% 0.9%Short Term Corporate Bond ETF 1.4% 1.7% 1.7% 1.8%Emerging Market Bond ETF 4.2% 3.8% 2.2% 1.1%

NOT FOR DISTRIBUTION

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Summary

A Time-Tested, Industry Leading Asset Allocation Manager Over 350 years of collective experience on the team Industry Leadership: A leading provider of multi-asset class solutions globally,

managing over $140 billion (CAD) globally

An Extensive Intellectual Capital Base Deep Bench of in-house Experts: 33 investment professionals

focused on managing multi-asset class portfolios Access to Manulife Asset Management’s global network of 450 investment

professionals that span 16 countries / territories around the globe Relationships with over 80 leading investment managers and hundreds of portfolio managers

Robust Portfolio Construction Process Considerable expertise in forecasting and modeling over 140 asset classes, including

alternative assets Accustomed to managing daily flows across our asset base with daily rebalancing

Source: Manulife Asset Management, December 31, 2018

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Performance

Source: Morningstar Direct, December 31, 2018. Performance histories are not indicative of future performance. *Since inception, May 5, 2017Series F is generally designed for investors who have a fee-based or wrap account with their dealer. Series F performance is net of fees and expenses. Advisor Series is also available and includes a 1.00% trailing commission.

Series F Returns (%) as of December 31, 20183 Months YTD 1 Year Since Inception*

Manulife Conservative Portfolio -2.15 -1.25 -1.25 -0.04

% Rank in Category 46 33 33 -

Manulife Moderate Portfolio -4.14 -2.75 -2.75 -0.45


Category (Global Fixed Income Balanced) -2.08 -1.73 -1.73 -

Manulife Balanced Portfolio -5.18 -3.48 -3.48 -0.71


Category (Global Neutral Balanced) -4.69 -3.04 -3.04 -

Manulife Growth Portfolio -6.76 -4.75 -4.75 -1.02


Category (Global Equity Balanced) -6.75 -4.60 -4.60 -

Absolute rankings are determined by Morningstar and shows how well a fund has performed compared to all other funds in its category peer group and are subject to change every month. Absolute rankings, and the number of funds within their categories for each period as of December 31, 2018 are as follows: Manulife Conservative Portfolio (Series F) within the Global Fixed Income Balanced Category: 3 month period, ranked 349 out of 849 Funds; YTD period, ranked 294 out of 802 Funds; 1 year period, ranked 294 out of 804 funds. Manulife Moderate Portfolio (Series F) within the Global Fixed Income Balanced Category: 3 month period, ranked 620 out of 849 Funds; YTD period, ranked 467 out of 802 Funds; 1 year period, ranked 467 out of 802 funds. Manulife Balanced Portfolio (Series F) within the Global Neutral Balanced Category: 3 month period, ranked 1037 out of 1893 Funds; YTD period, ranked 866 out of 1797 Funds; 1 year period, ranked 866 out of 1797 funds. Manulife Growth Portfolio (Series F) within the Global Equity Balanced Category: 3 month period, ranked 566 out of 1461 Funds; YTD period, ranked 624 out of 1382 Funds; 1 year period, ranked 627 out of 1382 funds.

Manulife Asset Allocation Portfolios

The presented asset allocation of the Portfolios are for illustration purposes only. Actual asset allocation may vary. The asset allocation are based on the strategic mixes of each Portfolio. Please refer to the Fund Facts for each Portfolio investment mix.

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Important InformationFOR ADVISOR USE ONLY – Not intended for the general public. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments and the use of an asset allocation service. Please read the fund facts as well as the prospectus of the mutual funds in which investment may be made under the asset allocation service before investing. The indicated rates of return are the historical annual compounded total returns assuming the investment strategy recommended by the asset allocation service is used and after deduction of the fees and charges in respect of the service. The returns are based on the historical annual compounded total returns of the participating funds including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder in respect of a participating fund that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.The views expressed are those of the sub-advisor of Manulife Investments as of December 31, 2018 and are subject to change as market and other conditions warrant. Information about a portfolio's holdings, asset allocation, or country diversification is historical and is no indication of future portfolio composition, which will vary. Certain research and information about specific holdings in the Fund, including any opinion, is based on various sources believed to be reliable. All overviews and commentary are for information purposes only and are not intended to provide specific financial, investment, tax, legal, accounting or other advice and should not be relied upon in that regard.The rate of return shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the asset allocation service or returns on investment from the use of the asset allocation service.© 2018 Morningstar. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.Dimensional Fund Advisors Canada ULC is the sub-advisor to the Manulife ETFs. Neither Dimensional Fund Advisors Canada ULC nor its affiliates is affiliated with Manulife Investments or any of its affiliated entities. Manulife ETFs are managed by Manulife Investments, a division of Manulife Asset Management LimitedManulife Asset Allocation Portfolios are available in the InvestmentPlus Series of the Manulife GIF Select insurance contract offered by The Manufacturers Life Insurance Company. The Manufacturers Life Insurance Company is the issuer of insurance contracts containing Manulife segregated funds and the guarantor of any guarantee provisions therein. Any amount that is allocated to a segregated fund is invested at the risk of the contractholder and may increase or decrease in value. Age restrictions and other conditions may apply.Manulife Funds, Manulife Corporate Classes, Manulife Exchange-Traded Funds and Manulife Asset Allocation Portfolios are managed by Manulife Investments, a division of Manulife Asset Management Limited. Manulife, Manulife Investments, InvestmentPlus, and the Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.

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