Manulife Conductor Notes, Private Offering 1
SPECIALITY OR MISCELLANEOUS
DESCRIPTION Manulife Conductor Notes, Private Offering 1 are a unique investment that offers unlimited growth potential through a link to the Manulife Simplicity Growth Portfolio Pooled Fund (formerly the Manulife Growth Asset Allocation Fund) and, as the case may be, the Manulife Canadian Universe Bond Fund or, in certain circumstances coupon bonds. Issued by BNP Paribas (Canada) and guaranteed by BNP Paribas S.A., these Notes reduce downside risk through a 100 per cent guarantee of principal upon maturity. These Notes are no longer available for sale and will mature on July 26, 2010.
ISSUED AND MANAGED BY BNP Paribas (Canada)
INCEPTION DATE July 2005
PERFORMANCE DATA
Performance is linked to a notional investment portfolio composed of the Manulife Simplicity Growth Portfolio Pooled Fund and the Manulife Canadian Universe Bond Fund. The weighting within the portfolio between the Manulife Simplicity Growth Portfolio Pooled Fund and the Manulife Canadian Universe Bond Fund will be based on a set formula. The portfolio may borrow up to 75% of its value to leverage its investment in the Manulife Simplicity Growth Portfolio Pooled Fund.Past results are not necessarily indicative of future performance and investment returns will fluctuate.
YEAR BY YEAR RETURNS
This chart shows you the Notes' annual performance and how an investment made on January 1st would have changed by December 31st.
OVERALL PAST PERFORMANCE
This graph shows how a $10,000 investment in the Notes would have changed in value.
*For illustration purposes only. Past results are not necessarily indicative of future performance.
ANNUAL COMPOUND RETURNS (as at January 31, 2010)
| 1 Year | 2 Year | 3 Year | 5 Year | 10 Year | Since Inception | Date of Inception | |
|---|---|---|---|---|---|---|---|
| Manulife Conductor Notes Private 1 | 1.77% | -1.52% | -3.46% | - | - | -0.01% | Jul 2005 |
Performance Commentary, July 2006
Since Manulife Conductor Notes Private Offering 1 (the "Note") was issued, the Note has performed modestly during a period marked by volatile equity markets and rising interest rates. The return including fees as at July 31, 2006 is 1.16%. A number of key factors have contributed to the Note's performance:-
The initial weighting of the Note was 60% for the Manulife Simplicity Growth Portfolio Pooled Fund and 40% for the Manulife Canadian Universe Bond Fund.
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Increases in interest rates over the past year have dampened the performance of the fixed-income market and the corresponding performance of the Note given its relatively high exposure to the fixed-income sector. Initial asset weights were approximately 50/50 split between equities and fixed-income as the Manulife Simplicity Growth Portfolio Pooled Fund has approximately 20% of its assets strategically dedicated to fixed-income investments.
- The Manulife Canadian Universe Bond Fund was placed on-Watch at March 31, 2006 for performance reasons. Through Manulife's Investment Watch (i-Watch ) program, the fund will continue to be monitored closely.
The Note's dynamic asset allocation feature has performed well by maximizing its exposure to the markets while protecting principal. The Note has responded to recent market volatility by making tactical changes to the weighting of the Manulife Simplicity Growth Portfolio Pooled Fund. These changes ranged from 49% to 84%. See Performance Graph below for further details.
The Manulife Conductor Notes has a "buy and hold" strategy with a 100% return of principal upon maturity and a declining Early Sales Charge (ESC) schedule. The strategy behind the product and the maturity guarantee are good reasons to stay invested.