In November the company introduced the Manulife Balanced Dividend ETF Bundle, further enhancing ETF access and choice for advisors and investors. Managed by Manulife’s Multi-Asset Solutions team, it has a target asset allocation of 30% in Canadian dividend stocks, 30% in U.S. dividend stocks, and 40% in Canadian corporate bonds through the corresponding Manulife Smart ETFs.
“The bundle offers all in one solution for advisors who are seeking a traditional balanced strategy, while alleviating the portfolio rebalancing requirement for them as well,” Pappas says. “And we know for some clients the bundle strategy might not be the most suitable asset mix, so advisors can use the single-asset class ETFs individually for their needs.”
The Manulife Balanced Dividend ETF bundle is available both on the mutual fund and segregated fund platforms; the segregated fund version invests in the mutual fund which in turn invests in the underlying ETFs. The group managing the strategy keeps it on a balanced keel, rebalancing it regularly to ensure that it stays within 5% of its asset-allocation targets.
According to Pappas, Manulife’s research shows that Canadian corporate bonds have historically offered increased yield3 and have the potential to outperform Canadian bonds generally. Similarly, she says dividend-growing stocks have historically outperformed the broader stock market3 and may have also been shown to offer protection during periods of high inflation.
“With inflation being top of mind, dividends can be especially useful for clients in the current environment as well,” Pappas says.