Manulife IM targets 10% annual payout with new equity launch

The new fund sets 70% minimum equity exposure with options overlay.

Manulife Investment Management has launched the Manulife Global Equity Diversified Income Fund in Hong Kong, targeting a fixed annualised dividend yield of 10%, according to a press release. The fund seeks to generate regular income alongside capital growth through a global equity strategy combined with an options overlay.

The company said the fund will invest at least 70% of its net assets in global equities, including developed and emerging markets. The portfolio will also deploy options strategies to support income generation whilst retaining exposure to equity market movements.

Manulife said the fund adopts a multi-pillar equity strategy, combining growth equities, value equities, equity income securities and options overlay strategies to diversify income sources. The strategy is managed by Manulife Investment Management’s Multi-Asset Solutions Team, according to the release.

The fund will be distributed exclusively through Hang Seng Bank for an initial three-month period starting 5 February 2026. After the exclusivity period, Manulife said it may make the fund available through additional distribution channels.

Manulife said the dividend yield target is not guaranteed and distributions may be paid out of capital. The company added that the fund’s income and net asset value may fluctuate in line with market conditions and investment performance.