Manulife Strength - Equity Dividend Fund's fourteenth quarterly dividend brings annualised dividend yield to 24.1% since inception

Payout points to attractive long-term potential of Thai equity investment just as Manulife Asset Management’s latest Aging Asia research report highlights how bank deposits generate negative real returns in most Asian markets, including Thailand, heightening the need for investment alternatives. Bangkok – Manulife Asset Management has announced that its Manulife Strength - Equity Dividend (MS-EQ DIV) Fund will pay a dividend of B0.2/unit for the third quarter on 2013. This is the fourteenth quarterly disbursement since the fund’s 28 August 2009 inception and brings its annualised dividend yield since inception to 24.1% (based on its par value of THB10.00)[1]. The ex-dividend (XD) date is 13 September 2013 and payment will be made by 20 September 2013. Tor Indhavivadha, CEO of Manulife Asset Management (Thailand), commented: “The MS-EQ DIV Fund has two sources of potential returns: capital appreciation on stock holdings and dividend income. Manulife Asset Management’s team of local-market equity professionals work to maximise these two potential sources of returns via intensive research to carefully select stocks with strong fundamentals, attractive business prospects and histories of generating consistent dividend income.” Thai equities have a history of generating attractive returns and dividend income has played an important role. Tor explained: “By carefully selecting stocks with the potential to deliver steady returns, the MS-EQ Div Fund endeavours to pay quarterly dividends with a goal of providing unit holders with a regular income stream.” The Thai equity market has shown relatively high volatility over the past few months due to significant fund outflows from emerging markets on concern that the US Federal Reserve will begin tapering its Quantitative Easing (QE) program. However, according to Tor: “While concern over QE tapering should diminish, we are likely to continue seeing a gradual shift in liquidity from emerging to developed markets in the short to medium term. That being said, we remain constructive on the long-term prospects for equity markets in Thailand and the rest of the ASEAN 5 economies[2], which are benefitting from rising spending by middle-class consumers and government-led infrastructure investment. “The market is currently trading at relatively attractive valuations, representing an opportunity for investors to accumulate Thai equities by investing directly in shares or in a mutual fund. We believe that careful stock selection is a key driver of investment returns. Thus, investors who are not able to follow the market closely should consider a pooled investment vehicle such as the MS-EQ DIV Fund, which enables them to benefit from the insights of Manulife Asset Management’s on-the-ground equity professionals, who know the local market very well.” The dividend announcement for the MS-EQ DIV Fund closely follows the release of The Asian cash drag: Alternatives for a more diversified portfolio, the fourth report in Manulife Asset Management’s Aging Asia series. The report highlights the importance of utilising efficient investment solutions in a region where more than 50% of all household financial wealth is allocated to bank deposits, about 51% in the case of Thailand. The report introduces the company’s proprietary ‘Bona Fide Real Return’ measure, which reveals how the effects of inflation, income taxes and credit risk are undermining returns on bank deposits, with savers in eight of the 10 Asian markets the company has a presence in suffering negative real deposit returns. Over the past 10 years, annualised Bona Fide Real Returns on bank deposits in Thailand have been -1.9% versus marginally positive returns of 0.6% in Malaysia and startlingly low returns of -2.3% in Indonesia[3]. Michael Dommermuth, President, International Asset Management, Manulife Asset Management, commented: “Bona Fide Real Returns clearly illustrate why bank accounts should not be treated as long-term investment vehicles, especially for those saving for retirement and for elderly households that rely heavily on bank deposit holdings to meet day-to-day expenses.” Instead, the company advocates that savers and retirees consider a range of investment alternatives that have the potential to generate returns higher than bank deposit rates. For more details on the MS-EQ DIV Fund or other investment solutions, please contact Manulife Asset Management (Thailand)’s investment consultant team at 0-2354-1001 or visit www.manulife-asset.co.th. [1] Manulife Asset Management calculations. [2] ASEAN is the Association of South East Asian Nations: Indonesia, Malaysia, Philippines, Thailand and Vietnam. [3] Annualised Bona Fide Real Returns for the period 1 January 2003 to 31 December 2012. -KPA- Click for photo release at www.thaipr.net

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