However with 2022 within the rearview mirror, and charges having already risen, that offers the portfolio added cushion to soak up extra hikes and nonetheless generate earnings. International locations like New Zealand went by means of a quantitative easing surroundings, with low yields, which was uninteresting to buyers. Now, nevertheless, New Zealand provides a triple A credit score high quality and the five-year a part of the curve can get you 5% to five.5%1.
Whereas this chance set expands, all through this decision-making course of the staff maintains its laser-focus on danger administration. That is built-in into all sides of managing the portfolio and the staff focuses on 4 key areas of dangers: rate of interest, credit score, overseas foreign money, and liquidity.
To do that, the fund leverage’s Manulife Funding Administration’s international experience and skill to speculate anyplace on the planet. It’s underneath fixed vigilance 24 hours a day six days every week, with the corporate’s supporting merchants, analysis analysts and danger managers on the bottom in Boston and Hong Kong.
Threat managers first, the fund’s managers give attention to these key dangers whereas adhering to a disciplined funding strategy that mixes elementary top-down and bottom-up evaluation. The fund is versatile and dynamic in nature, making the most of altering credit score and foreign money markets.
Factored within the risk-assessment course of is Manulife Funding Administration’s devoted ESG staff, which determines, like another evaluation throughout the fund, whether or not it’s getting paid pretty for the dangers it screens. If the reply is not any, or the corporate in query isn’t open to engagement concerning addressing these points, these positions are eradicated from the fund.