Manulife Dana Saham Kelas A

The fund outperformed the benchmark in 3Q-24. Key contributor to performance was strong selection effect in the materials sector. The fund’s underweight position in underperforming ore miners led to positive attribution in this sector. Other contributor to performance was the fund’s allocation in financials sector, supported by strong selection effect. Meanwhile, key detractor to performance was allocation in the consumer discretionary sector, as underweight position in outperforming technology stock result in negative attribution. We maintain cautious optimistic view, as flow will continue to dominate market movement in the short term, as well as rising geopolitical tension. The fund continues its overweight position in sectors with solid earnings outlook and reasonable valuation, with catalyst is expected to be clearer after the new administration takes over the office in October. Liquidity should continue to improve as well. We prefer domestic-driven sector with high quality earnings, which among others are financials, telecommunication, and consumer staples sector as earnings trajectory remains positive and valuation remains reasonable.

Manulife Saham Andalan

The fund outperformed the benchmark in 3Q-24. Key contributor to performance was strong selection in the financials sectors, as selective overweight in outperforming banks result in positive attribution. Other key contributor was the fund’s allocation in utilities sector, where underweight position in gas distribution company result in positive attribution. Meanwhile key detractor to performance was allocation in materials sector, where positions in ore miners and petrochemical company result in negative attribution. We maintain cautious optimistic view, as flow will continue to dominate market movement in the short term, as well as rising geopolitical tension. The fund continues its overweight position in sectors with solid earnings outlook and reasonable valuation, with catalyst is expected to be clearer after the new administration takes over the office in October. Liquidity should continue to improve as well. We prefer domestic-driven sector with high quality earnings, which among others are financials, telecommunication, and consumer staples sector as earnings trajectory remains positive and valuation remains reasonable.

Manulife Greater Indonesia Fund

The fund outperformed the benchmark in 3Q-24. Key contributor to performance was strong selection in the financials sectors, as selective overweight in outperforming banks result in positive attribution. Other key contributor was the fund’s allocation in IT sector, supported by strong performance of the stocks following interest rate cut. Meanwhile key detractor to performance was allocation in materials sector, where positions in ore miners and petrochemical company result in negative attribution. We maintain cautious optimistic view, as flow will continue to dominate market movement in the short term, as well as rising geopolitical tension. The fund continues its overweight position in sectors with solid earnings outlook and reasonable valuation, with catalyst is expected to be clearer after the new administration takes over the office in October. Liquidity should continue to improve as well. We prefer domestic-driven sector with high quality earnings, which among others are financials, telecommunication, and consumer staples sector as earnings trajectory remains positive and valuation remains reasonable.

Manulife Pendapatan Bulanan  II

The fund outperformed the benchmark in 3Q-24. The bond market turned favorable in the period as US economic data showed signs of moderation that fueled market expectation of Fed Funds rate cut. Supportive global environment was positive for the domestic market, with Rupiah appreciated 7.5% to 15,140/USD and INDOGB yield came down across the yield curve. Yield curve move in bullish steepening pattern with the 5Y outperformed by dropping 78bps while the 10Y dropped 61bps. Portfolio duration was raised in the quarter from 2.4 to 2.7 to ride the market rally. Going forward, rate cut cycle should be a positive environment for the bond market. With Rupiah stabilize, SRBI issuance and yield likely to move lower that could make INDOGB yield relatively attractive. However we are also wary of short-term volatility in the market relating to US election, geopolitical tension, and outlook of domestic fiscal. We continue to monitor the market and adjust strategy accordingly in case of changes in macro backdrop. We seek out higher yielding corporates money market for yield enhancement.

Manulife Obligasi Negara Indonesia II Kelas A

The fund underperformed the benchmark in 3Q-24. The bond market turned favorable in the period as US economic data showed signs of moderation that fueled market expectation of Fed Funds rate cut. Supportive global environment was positive for the domestic market, with Rupiah appreciated 7.5% to 15,140/USD and INDOGB yield came down across the yield curve. Yield curve move in bullish steepening pattern with the 5Y outperformed by dropping 78bps while the 10Y dropped 61bps. Underperformance mainly happened on the last week of September as market sentiment was weaker following China’s surprise stimulus announcement that caused outflow from Indonesia market. Portfolio duration was raised from 6.4 to 7.8 to ride the market rally. Going forward, rate cut cycle should be a positive environment for the bond market. With Rupiah stabilize, SRBI issuance and yield likely to move lower, that could make INDOGB yield relatively attractive. However we are also wary of short-term volatility in the market relating to US election, geopolitical tension, and outlook of fiscal domestic. We continue to monitor the market and adjust strategy accordingly in case of changes in macro backdrop.

Manulife USD Fixed Income Kelas A

The fund outperformed the benchmark in 3Q-24. The bond market turned favorable in the period as US economic data showed signs of moderation that fueled market expectation of Fed Funds rate cut. Supportive global environment was positive for the domestic market, with Rupiah appreciated 7.5% to 15,140/USD and INDOGB yield came down across the yield curve. Yield curve move in bullish steepening pattern with the short-tenor outperformed. The 3Y INDON yield dropped 109bps in the period, while the 10Y dropped 55bps. Portfolio duration was raised in the quarter from 1.7 to 3.2 to ride the market rally. Going forward, rate cut cycle should be a positive environment for the bond market. However we are also wary of short-term volatility in the market relating to US election, geopolitical tension, and outlook of fiscal domestic. We continue to monitor the market and adjust strategy accordingly in case of changes in macro backdrop.

Manulife Dana Campuran II

The fund underperformed the benchmark in 3Q-24. Both equity and bond allocation detracted from performance in the period. In equity, the fund’s overweight in communication sector was the key detractor. The sector underperformed the benchmark in the period amid concern of price war in the industry. Other key detractor was the fund’s overweight position in materials sector, as the sector underperformed the market amid weaker ore prices. Meanwhile, key contributor was the strong selection effect in the financials and utilities sectors. In the bond allocation, the fund’s underweight position in the short-tenor bucket was the key detractor, as the short tenor outperformed in the period where the 5Y yield fell 78bps as the market’s conviction of rate cut grew. Going forward, rate cut cycle should be a positive environment for the market. However we are also wary of short-term volatility in the market relating to US election, geopolitical tension, and outlook of fiscal domestic. Amid uncertain macro backdrop, we look to maintain neutral allocation against the benchmark. In equity, we prefer domestic-driven sector with high quality earnings, which among others are financials, telecommunication, and consumer staples sector as earnings trajectory remains positive and valuation remains reasonable. In the bond market we favor the medium tenors given its higher upside potential during monetary easing cycle. We continue to monitor the market and adjust strategy accordingly in case of changes in macro backdrop.

Manulife Dana Tumbuh Berimbang

The fund underperformed the benchmark in 3Q-24. Key detractor to performance was the fund’s underperformance in the bond allocation. The fund’s underweight position in the short-tenor bucket was the key detractor, as the short tenor outperformed in the period where the 5Y yield fell 78bps as the market’s conviction of rate cut grew. Meanwhile the fund’s equity allocation posted positive attribution, supported by allocation in the financials and consumer staples sectors. Going forward, rate cut cycle should be a positive environment for the market. However we are also wary of short-term volatility in the market relating to US election, geopolitical tension, and outlook of fiscal domestic. Amid uncertain macro backdrop, we look to maintain neutral allocation against the benchmark. In equity, we prefer domestic-driven sector with high quality earnings, which among others are financials, telecommunication, and consumer staples sector as earnings trajectory remains positive and valuation remains reasonable. In the bond market we favor the medium tenors given its higher upside potential during monetary easing cycle. We continue to monitor the market and adjust strategy accordingly in case of changes in macro backdrop.

Manulife Saham Syariah Asia Pasifik Dollar AS

The fund underperformed the benchmark in 3Q-24. They key negative relative contributions came from some of tech investments in Korea and Taiwan together with underweight position in consumer discretionary positions in China which did well after the Chinese stimulus announcement. Positive contributions came from Chinese listed renewable stocks that surged towards the end of the quarter.

China’s  round of stimulus is significant in its size especially relative to low market expectations beforehand.  The important takeaway from the stimulus is not just the nature of the policies themselves but it signals a clear intent to accelerate policy response to stimulate the economy and a desire to promote the stock market.  We continue to like growth sectors in China in light of this stimulus and will be looking to potentially add more on to the consumer sector.  However, the market has run up very fast and we need to be selective and not chase stocks that have moved beyond fundamentals. Elsewhere, we think ASEAN will throw up increased opportunities as many investors sold positions in ASEAN and India to fund increased weight into China.  The ongoing Fed rate cuts are likely to be most positive for ASEAN markets.  We remain underweight India due to valuations but increasingly see relative value in consumer orientated sectors over Industrials. Within tech we are incrementally focusing more on non-AI sub sectors such as Industrial automation.  

Manulife Saham Syariah Golden Asia Dolar AS Kelas A1

The fund underperformed the benchmark in 3Q-24. Underperformance mainly happened on the last week of September following strong Chinese market rally responding to stimulus announcement. The fund’s underweight position in Chinese equities was the key detractor to performance. Meanwhile allocation in India equities result in positive attribution in the period supported by positive selection effect. In terms of sectoral allocation, key detractor came from underweight position in Chinese health care sector and underweight in consumer discretionary sector. Meanwhile key contributors came from the fund’s underweight in energy sector and overweight in the utilities sector. Chinese government policy pivot signals a clear intent to accelerate policy response to stimulate the economy and a desire to promote the stock market. Overall, the policy should be positive for consumption, help create more domestic flows into the Chinese market, and lift business confidence. We look to add position in China, however the market has run up very fast and we need to be selective and not chase stocks that have moved beyond fundamentals.

Manulife Dana Kas II Kelas A

The fund outperformed the benchmark in 3Q-24. Bank deposit rate came down slightly to 6.5% - 7.25% in 3Q-24 from 6.5% - 7.5% in the previous quarter. Liquidity loosened as Rupiah appreciated in the period due to weaker USD as moderation in US economic data pushes stronger view of FFR cut. The Fed cut FFR by 50bps in September, and Bank Indonesia also cut by 25bps. The Fed and BI likely to push through another rate cut in 4Q-24, and we look to lock attractive rates, and also seek yield enhancement from money market bonds.