Manulife launches fund for contrarian retail investors
The Manulife Global Contrarian Fund will be offered via Hong Kong banks and has a bottom-up value strategy.
The Manulife Global Contrarian Fund has been launched. This long-only global fund managed from Boston in the US will now be offered to Hong Kong retail investors via local bank branches in minimum subscriptions of HK$20,000.
The target size of the fund is $50 million and fees for investors are a 5% sales fee plus an annual management fee of 1.75%.
In classic contrarian style, the equity-only fund will be looking to buy stocks that are being sold down, then on the basis of a valuation analysis, sell them again when they come back into vogue.
ôWeÆll be screening stocks when we see them being sold and if we perceive intrinsic value, we will be targeting them,ö says Raymond Kong, the assistant vice-president and product manager of Manulife in Hong Kong. ôWe need to be careful though as we donÆt want to catch a falling knife, so we will look for a catalyst which will unlock the value over 6-12 months.ö
The fund returns will be benchmarked against the S&P Broad Market Index which, of course, has been mostly negative of late.
Manulife Asset Management (Hong Kong) is a subsidiary of the North American funds firm Manulife Financial/John Hancock, a fund management behemoth with $390 billion under management.
The target size of the fund is $50 million and fees for investors are a 5% sales fee plus an annual management fee of 1.75%.
In classic contrarian style, the equity-only fund will be looking to buy stocks that are being sold down, then on the basis of a valuation analysis, sell them again when they come back into vogue.
ôWeÆll be screening stocks when we see them being sold and if we perceive intrinsic value, we will be targeting them,ö says Raymond Kong, the assistant vice-president and product manager of Manulife in Hong Kong. ôWe need to be careful though as we donÆt want to catch a falling knife, so we will look for a catalyst which will unlock the value over 6-12 months.ö
The fund returns will be benchmarked against the S&P Broad Market Index which, of course, has been mostly negative of late.
Manulife Asset Management (Hong Kong) is a subsidiary of the North American funds firm Manulife Financial/John Hancock, a fund management behemoth with $390 billion under management.
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