Manulife Smart Enhanced Yield ETF and Manulife Smart US Enhanced Yield ETF deliver exposure to dividend securities and covered-call strategies to provide investors with multiple income streams
Portfolio managers to combine 94 years of investment experience on these strategies
TORONTO, June 4, 2024 /CNW/ - Manulife Investment Management (Manulife IM) launched two new actively managed Manulife Smart Exchange Traded Funds (ETFs), which will begin trading today on the Cboe Canada exchange. The new ETFs, the Manulife Smart Enhanced Yield ETF (CYLD) and the Manulife Smart US Enhanced Yield ETF (UYLD) (and UYLD's hedged, unhedged and USD units) are strategies that combine exposure to dividend securities with options derivatives to provide market participants with multiple income streams in a single ETF. Manulife IM's Multi-Asset Solutions Team and its systematic equity beta team will actively manage these new ETFs.
CYLD aims to provide a steady flow of income and long-term capital appreciation by investing primarily in a diversified portfolio of Canadian dividend-paying securities. CYLD will employ a Manulife IM proprietary quality dividend screen to select securities that have high and sustainable dividends, or dividends that are expected to grow over time, to pursue higher risk-adjusted returns. Additionally, CYLD's portfolio will include at times writing covered-call options or cash-covered put options on a percentage of its holdings to generate additional income streams for the ETF's shareholders. CYLD will distribute income monthly.
Meanwhile, UYLD possesses a similar investment objective for U.S. dividend-paying securities, also distributing income monthly. UYLD will seek to hedge substantially all of the foreign currency exposure through investing in derivatives and offers an unhedged solution (UYLD.B).
"We're pleased to be leveraging the experience of Manulife Investment Management's multi-asset solutions and systematic equity beta teams and the success of our original dividend ETFs to expand our capabilities in high demand asset classes and provide alpha at a competitive price," said Jordy Chilcott, head of retail intermediary distribution, Canada, Manulife Investment Management.
ETF Name
Ticker
CISFC Category
Management Fee
Manulife Smart Enhanced Yield ETF
CYLD
Canadian Dividend (Option-based)
0.52 %
Manulife Smart US Enhanced Yield ETF
U.S. Dividend (Option-based)
Hedged
Unhedged
USD units
UYLD
UYLD.B
UYLD.U
0.60%
0.55%
0.55%
The new ETFs are managed by Geoffrey Kelley, CFA, senior portfolio manager, global head of strategic asset allocation and systematic equity, MIM multi-asset solutions team; Jeffrey Wu, portfolio manager and senior investment analyst, Manulife IM multi-asset solutions team; Ashikhusein Shahpurwala, CFA, PRM, senior portfolio manager, Manulife IM systematic equity beta team; and Boncana Maiga, CFA, CIM, portfolio manager, senior investment analyst, Manulife IM systematic equity beta team. Together they have more than 94 years of combined industry experience.
"We're excited to grow our ETF lineup with two new solutions for investors looking for income and long-term capital appreciation," said Mark Bankay, head of ETFs, Manulife Investment Management. "Utilizing a proprietary call-put strategy, the Manulife Smart Enhanced Yield ETF and Manulife Smart U.S. Enhanced Yield ETF can be useful solutions for advisors and individual investors alike to gain some equity exposure upside while mitigating downside market risks."
With these launches, Manulife IM's ETFs total 20 funds with $3.3B CAD under management1. In addition to the ETFs announced today, they include:
Manulife Smart Short-Term Bond ETF (TERM)
Manulife Smart Core Bond ETF (BSKT)
Manulife Smart Corporate Bond ETF (CBND)
Manulife Smart Dividend ETF (CDIV)
Manulife Smart U.S. Dividend ETF – Unhedged Units (UDIV.B), Hedged Units (UDIV), USD Units (UDIV.U)
Manulife Smart International Dividend ETF – Unhedged Units (IDIV.B)
Manulife Smart Defensive Equity ETF (CDEF)
Manulife Smart U.S. Defensive Equity ETF – Unhedged Units (UDEF.B), Hedged Units (UDEF), USD Units (UDEF.U)
Manulife Smart International Defensive Equity ETF – Unhedged Units (IDEF.B)
Manulife Multifactor Canadian SMID Cap Index ETF (MCSM)
Manulife Multifactor U.S. Large Cap Index ETF – Unhedged Units (MULC.B), Hedged Units (MULC)
Manulife Multifactor U.S. Mid Cap Index ETF – Unhedged Units (MUMC.B), Hedged Units (MUMC)
Manulife Multifactor Canadian Large Cap Index ETF (MCLC)
Manulife Multifactor Developed International Index ETF – Unhedged Units (MINT.B), Hedged Units (MINT)
Manulife Multifactor Emerging Markets Index ETF – Unhedged Units (MEME.B)
Manulife Multifactor U.S. Small Cap Index ETF – Unhedged Units (MUSC.B), Hedged Units (MUSC)
Manulife Smart Global Dividend ETF Portfolio (GDIV)
Manulife Smart Global Bond ETF (GBND)
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1 AUM as of May 23, 2024
Commissions, management fees and expenses all may be associated with exchange traded funds (ETFs). Please read the ETF Facts and prospectus before investing. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. Manulife ETFs are managed by Manulife Investment Management. Manulife Investment Management is a trade name of Manulife Investment Management Limited.
About Manulife Investment Management
Manulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial Corporation. Our mission is to make decisions easier and lives better by empowering investors for a better tomorrow. Serving more than 17 million individuals, institutions, and retirement plan members, we believe our global reach, complementary businesses, and the strength of our parent company position us to help investors capitalize on today's emerging global trends. We provide our clients access to public and private investment solutions across equities, fixed income, multi-asset, alternative, and sustainability-linked strategies, such as natural capital, to help them make more informed financial decisions and achieve their investment objectives. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.
About Manulife
Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.
