Manulife Unveils 10% Yield HK Equity Fund Amid January 24 Stock Update

Jordan Hartwell

Published: January 24, 2026 8:24 AM ET

Manulife Unveils 10% Yield HK Equity Fund Amid January 24 Stock Update

Manulife has launched a new investment product, the Manulife 10% Yield HK Equity Fund, in Hong Kong. This fund aims to generate an annualized payout of 10%, making it an attractive option for local investors seeking monthly income.

Fund Overview and Objectives

The Manulife 10% income fund is designed to provide a targeted 10% annualized payout, distributed on a monthly basis. However, it is crucial to note that this payout is not guaranteed and may include capital, which could impact the fund’s net asset value (NAV).

Local media have confirmed details regarding the fund’s rollout, emphasizing its potential to meet the demands of investors looking for regular income from global equities.

Key Features of the Fund

Target Payout: 10% annualized, paid monthly.
Investment Focus: Global equity income aimed at generating consistent cash flow.
Currency Considerations: HKD exposure with share class features to manage currency risks.
Higher Volatility: Equities may have increased volatility compared to bonds.

Investors should carefully review the Key Facts Statement prior to subscribing. This fund targets individuals looking for attractive yields in an equity setting while acknowledging the associated risks.

Implications for Shareholders

The Manulife 10% income fund is projected to support asset inflows in Asia, particularly if there is strong local demand for monthly income products. Equity income strategies often entail higher fee rates, potentially boosting fee margins.

For MFC shareholders, a successful launch could enhance fee income and support share prices, pending strong subscription rates and low redemption levels.

Current Stock Performance

As of now, the stock reports a trailing twelve-month (TTM) dividend yield of 3.40% and is trading at a price-to-earnings (P/E) ratio of 16.43. Investor sentiment appears positive, with four Buy ratings and a consensus target of 4.00. The next earnings report is scheduled for February 11, 2026.

Recent price momentum indicates a strong upward trend, although caution is advised as momentum indicators suggest a potential stabilization phase. The stock currently trades near $37.48, close to its upper Bollinger Band.

Risks and Considerations

Investors in the Manulife 10% income fund should be aware of several risks. The target payout is not guaranteed, and should market conditions weaken, distributions may be sourced from capital, reducing the NAV and future income potential.

Monitor Monthly Distributions: Stay informed on the breakdown of income and capital distributions.
Interest Rates and Equity Volatility: Changes in these factors can impact payout sustainability.
Competitor Analysis: Compare the net yield after fees to other income funds available in the market.

Conclusion

The launch of the Manulife 10% Yield HK Equity Fund presents a compelling opportunity for Hong Kong investors looking for consistent income. While its structured payout offers appeal, the reliance on equity performance and potential capital usage necessitates careful consideration before investment.

For MFC shareholders, tracking the fund’s initial asset gathering and management commentary will be key indicators of its potential success..