MANULIFE GLOBAL FUND Société d'Investissement à Capital Variable

Audited Annual Report for the year ended 30 June 2016

No subscription can be received on the basis of financial reports. Subscriptions are only valid if made on the basis of the current prospectus, accompanied by the latest annual report and semi-annual report if published thereafter.

SICAV

R.C.S Luxembourg B 26 141 Contents

Directors and Conducting Persons...... 1 Management and Administration...... 2 Directors’ Report...... 4 Audit Report...... 6 Statement of Net Assets...... 8 Statement of Changes in Net Assets...... 18 Statement of Changes in Shares...... 28 Statement of Operations...... 36 Statistical Information...... 46 Industrial Composition of Portfolios as a Percentage of Net Asset Value...... 75 Statement of Movements in Portfolio Holdings...... 82 Portfolio of Investments...... 89 American Growth Fund...... 89 ASEAN Equity Fund*...... 93 Asia Total Return Fund...... 98 Asia Value Dividend Equity Fund...... 107 Asian Equity Fund...... 113 Asian Small Cap Equity Fund...... 119 China Value Fund...... 125 Dragon Growth Fund...... 132 Emerging Eastern Europe Fund...... 136 European Growth Fund...... 140 Global Contrarian Fund...... 145 Global Equity Fund*...... 150 Global Property Fund...... 154 Global Resources Fund...... 159 Greater China Opportunities Fund...... 164 Healthcare Fund...... 168 India Equity Fund...... 171 Japanese Growth Fund...... 176 Latin America Equity Fund...... 180 Russia Equity Fund...... 184 Strategic Income Fund...... 188 Taiwan Equity Fund...... 202 Turkey Equity Fund...... 205 U.S. Bond Fund...... 208 U.S. Small Cap Equity Fund...... 229 U.S. Special Opportunities Fund...... 233 U.S. Treasury Inflation-Protected Securities Fund...... 242 Notes to the Financial Statements...... 247 Information for Shareholders...... 277

* Refer to note 10 DIRECTORS and Conducting Persons

DIRECTORS CONDUCTING PERSONS Paul Smith (Chairman) John Li CFA Institute 19, rue de Bitbourg

23rd Floor, Man Yee Building L -1273 Luxembourg 68 Des Voeux Road Central Grand Duchy of Luxembourg Hong Kong SAR Donna Cotter Yeo Hui Chin 16th Floor 10th Floor Lee Gardens One Lee Gardens One 33 Hysan Avenue 33 Hysan Avenue Causeway Bay Causeway Bay Hong Kong SAR Hong Kong SAR (until 10 July 2015) (from 24 June 2015) Yves Wagner Donna Cotter 19, rue de Bitbourg

16th Floor L -1273 Luxembourg Lee Gardens One Grand Duchy of Luxembourg 33 Hysan Avenue Causeway Bay Gianni Fiacco Hong Kong SAR 16th Floor (until 10 July 2015) Lee Gardens Ones 33 Hysan Avenue Christakis Partassides Causeway Bay GFM Holdings (Cyprus) Limited Hong Kong SAR 2nd Floor, Elenion Building, 5 Themistocles (from 10 July 2015)

Dervis Str. CY -1066 Nicosia Cyprus

Yves Wagner 19, rue de Bitbourg

L -1273 Luxembourg Grand Duchy of Luxembourg

Philip Witherington 10th Floor Lee Gardens One 33 Hysan Avenue Causeway Bay Hong Kong SAR

Gianni Fiacco 16th Floor Lee Gardens One 33 Hysan Avenue Causeway Bay Hong Kong SAR (from 10 July 2015)

1 MANULIFE GLOBAL FUND MANAGEMENT AND ADMINISTRATION

Registered Office 31, Z.A. Bourmicht

L - 8070 Bertrange Grand Duchy of Luxembourg R.C.S. Luxembourg B26141

General Adviser and Distributor Hong Kong Distributor Manulife Asset Management International Holdings Manulife Asset Management (Hong Kong) Limited Limited 16th Floor The Goddard Building Lee Gardens One Haggat Hall 33 Hysan Avenue St. Michael Causeway Bay Barbados Hong Kong SAR Tel: (852) 2510 3388 Custodian, Administrator, Fax: (852) 2810 9510 Registrar and Paying Agent Citibank Europe plc, Luxembourg Branch* Investment Managers 31, Z.A. Bourmicht Charlemagne Capital (UK) Limited

L -8070 Bertrange 39, St. James’ Street Grand Duchy of Luxembourg London Tel: (352) 45 14 14 1 SW1A 1JD Fax: (352) 45 14 14 332 United Kingdom (Investment Manager of the Emerging Eastern Bearer Shares Depositary Europe Fund, Latin America Equity Fund, Russia Arendt Services S.A. Equity Fund and Turkey Equity Fund) 19, rue de Bitbourg L-1273 Luxembourg Manulife Asset Management (Hong Kong) Limited Grand Duchy of Luxembourg 16th Floor The Lee Gardens Legal Advisers 33 Hysan Avenue Luxembourg Causeway Bay Linklaters LLP Hong Kong SAR Avenue J.F. Kennedy 35 (Investment Manager of the ASEAN Equity Fund**,

L -1855 Luxembourg Asia Total Return Fund, Asian Equity Fund, Asian Grand Duchy of Luxembourg Small Cap Equity Fund, Dragon Growth Fund, Greater China Opportunities Fund, India Equity Fund, Hong Kong Japanese Growth Fund and Taiwan Equity Fund) Dechert LLP 27th Floor, Henley Building Manulife Asset Management (Europe) Limited 5 Queen’s Road Central 18 St Swithin’s Lane Hong Kong SAR London EC4N 8AD United Kingdom (Investment Manager of the European Growth Fund)

* With effect from 1 January 2016, Citibank International Limited, Luxembourg Branch changed its name to Citibank Europe plc, Luxembourg Branch. ** Refer to note 10

MANULIFE GLOBAL FUND 2 MANAGEMENT AND ADMINISTRATION

Manulife Asset Management (US) LLC Investment Advisers 197 Clarendon Street, Kotak Mahindra (UK) Limited 4th Floor, Farringdon Place Boston, MA 02116 20 Farringdon Road United States of America London EC1M 3AP (Investment Manager of the American Growth Fund, United Kingdom Global Contrarian Fund, Global Equity Fund*, Global (Investment Adviser to the Investment Manager of Property Fund, Global Resources Fund, Healthcare the India Equity Fund until 31 October 2015) Fund, Strategic Income Fund, U.S. Bond Fund, U.S. Small Cap Equity Fund, U.S. Special Opportunities Fund Manulife Asset Management (Japan) Limited and U.S. Treasury Inflation-Protected Securities Fund) 15th Floor Marunouchi Trust Tower North Building Sensible Asset Management Limited 1-8-1 Marunouchi 9th Floor, Nexxus Building Chiyoda-ku 41 Connaught Road Central Tokyo 100-0005 Hong Kong SAR (Investment Adviser to the Investment Manager of (Investment Manager of the Asia Value Dividend the Japanese Growth Fund) Equity Fund) Manulife Asset Management (Taiwan) Co., Ltd. Value Partners Limited 9/F, No.89 Sungren Road 9th Floor, Nexxus Building Taipei 11073 41 Connaught Road Central Taiwan Hong Kong SAR Republic of China (Investment Manager of the China Value Fund) (Investment Adviser to the Investment Manager of the Taiwan Equity Fund from 1 October 2015) Sub-Investment Managers Schroder Investment Management (Hong Kong) Auditor Limited PricewaterhouseCoopers, Société coopérative Suite 3301, Level 33 2 Rue Gerhard Mercator

Two Pacific Place B.P. 1443, L -1014 Luxembourg 88 Queensway Grand Duchy of Luxembourg Hong Kong SAR (Sub-Investment Manager of the Taiwan Equity Fund Hong Kong Representative until 30 September 2015) Citibank N.A. Hong Kong Branch 50th Floor, Citibank Tower Value Partners Limited Citibank Plaza 9th Floor, Nexxus Building 3, Garden Road 41 Connaught Road Central Central Hong Kong SAR Hong Kong SAR (Sub-Investment Manager of the Asia Value Dividend Equity Fund) To the Shareholders of Manulife Global Fund

* Refer to note 10

3 MANULIFE GLOBAL FUND DIRECTORS’ REPORT

Performance and growth of assets

During the year under review, global equity markets fell despite incrementally positive economic data and easy monetary policy. These failed to outweigh fears of a global growth slowdown, highlighted by China’s economy, and the collapse in commodity prices as oil fell to levels not seen since 2008. Equity investors endured a significant market pullback that began in December and bottomed in mid-February. The market ended the period with significant volatility stemming from the UK’s referendum vote to leave the EU.

In US, the Fed raised interest rates for the first time in nine years in December, which was contrasted by further quantitative easing measures out of Japan and Europe. In China, the People’s Bank of China (PBoC) devalued the yuan in August 2015 to better reflect market forces, which led to further falls in Chinese equity markets. The official Purchasing Managers’ Index (PMI) fell to 49.0 in February, the lowest level since 2008. In response, the People’s Bank of China (PBoC) cut interest rates twice and cut the reserve requirement ratio three times. A number of Asian central banks cut interest rates as inflation pressures receded. In Europe, the UK’s surprising decision (known as “Brexit”) to exit the European Union (EU) following its referendum also resulted in investors pulling money out of European equities. The British pound fell sharply on the news, hitting a 31-year low against the US dollar.

During the year, bond markets performed relatively better compared to equity markets. In terms of sub- funds’ performance, the Asia Total Return Fund posted returns over 4%, while Strategic Income Fund and U.S. Bond Fund posted returns 3.51% and 3% respectively.

Year in review

10-year US Treasury yields fell from 2.23% to 1.47% over the period, amid increased volatility in global financial markets, fears of a Chinese economic hard landing and uncertainty over the Brexit referendum. Asian corporate credit markets saw modest gains over the period, benefiting from the positive carry and lower US Treasury yields. The JP Morgan Asian Investment Grade Corporate Bond Index returned 6.24%, while the Asian High Yield Corporate Bond Index returned 8.81%, in US dollar terms.

The majority of sub-funds recorded negative returns over the year. In US, market conditions were volatile during the period, largely due to shifting outlooks for US economic growth and interest rates. In Europe, equity investors experienced their second consecutive year of negative returns in US dollars. Corporate profits stalled in the face of falling commodity prices, a sharp slowdown in emerging markets and more stringent banking regulation. The Brexit and the UK’s decision to exit the European Union (EU) following its referendum also resulted in investors pulling money out of European equities. In China, 2016 started off with the domestic A-share market being very volatile, with investors worrying about the following factors: 1) RMB depreciation pressure against the backdrop of US interest uplift; 2) further economic slowdown after supply side reform was mentioned by government; 3) further deleverage of equity market, especially the potential risk from forced sale of big shareholders’ mortgaged stocks, during a time when the market is irrationally selling off.

MANULIFE GLOBAL FUND 4 DIRECTORS’ REPORT

Outlook

The main challenges in the current macroeconomic environment are deflation risk, excess debt, slowing global growth and political uncertainty in the US, UK and Europe. Global central bank monetary policy continues to be accommodative, and US rates are expected to remain below historical levels for some time. A stronger US dollar, slow global growth and deflationary pressures from overseas might also overwhelm the US recovery.

The tremendous volatility caused by the UK vote to leave the EU could continue as the UK negotiates its future relationship with the EU over the next few years. The European Central Bank’s continued quantitative easing policy, coupled with questions over the future of the eurozone, may contribute to a weaker euro. China’s policy reaction to its own slowing economy may force Japan to increase its quantitative easing programmes. Japan’s surprise introduction of negative rates has contributed to market volatility as investors question whether the Bank of Japan is running out of options. Further stimulus may now be called for.

As regards to the UCITS V Directive, management companies and self-managed investment companies must establish a remuneration policy to implement practices that are consistent with and promote sound and effective risk management and discourage disproportionate risk-taking in accordance with the UCITS V principles and final ESMA Guidelines in this regard. These requirements, which came into effect on 18 March 2016, will apply to Manulife Global Fund and its identified staff (being the Conducting Officers and the Board of Directors). Based on that, MGF has established the remuneration policy in March 2016 and is made available on the website http://www.manulifeglobalfund.com.

The Board of Directors 12 September 2016

5 MANULIFE GLOBAL FUND AUDIT REPORT

To the Shareholders of Manulife Global Fund

We have audited the accompanying financial statements of Manulife Global Fund and of each of its sub- funds, which comprise the statement of net assets and the portfolio of investments as at 30 June 2016 and the statement of operations and the statement of changes in net assets for the year then ended, and a summary of significant accounting policies and other explanatory notes to the financial statements.

Responsibility of the Board of Directors of the SICAV for the financial statements

The Board of Directors of the SICAV is responsible for the preparation and fair presentation of these financial statements in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements and for such internal control as the Board of Directors of the SICAV determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Responsibility of the “Réviseur d’entreprises agréé”

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing as adopted for Luxembourg by the “Commission de Surveillance du Secteur Financier”. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the judgment of the “Réviseur d’entreprises agréé”, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the “Réviseur d’entreprises agréé” considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors of the SICAV, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

PricewaterhouseCoopers, Société coopérative, 2 Rue Gerhard Mercator, B.P. 1443, L -1014 Luxembourg T: +352 494848 1, F:+352 494848 2900, www.pwc.lu

Cabinet de révision agréé. Expert-comptable (autorisation gouvernementale n°10028256) R.C.S. Luxembourg B 65 477 - TVA LU25482518

MANULIFE GLOBAL FUND 6 AUDIT REPORT

Opinion

In our opinion, the financial statements give a true and fair view of the financial position of Manulife Global Fund and of each of its sub-funds as of 30 June 2016, and of the results of their operations and changes in their net assets for the year then ended in accordance with Luxembourg legal and regulatory requirements relating to the preparation of the financial statements.

Other matters

Supplementary information included in the annual report has been reviewed in the context of our mandate but has not been subject to specific audit procedures carried out in accordance with the standards described above. Consequently, we express no opinion on such information. However, we have no observation to make concerning such information in the context of the financial statements taken as a whole.

PricewaterhouseCoopers, Société coopérative Luxembourg, 12 September 2016 Represented by

Valérie Arnold

7 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – 336 1.3144 1.8784 7.6509** 14,099 (89,419) 386,108 505,595 728,110 (357,620) 3,775,417 Asian (1,140,123) 77,523,066 12,151,025 21,734,959 (17,345,884) 122,771,419 287,632,451 Small Cap (18,933,046) 307,489,459 309,367,410 326,422,505 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – 96 1.0622 0.9216 2.8666 78,100 (38,405) 318,707 (187,705) (142,649) (630,380) 5,559,669 1,110,999 3,778,917 2,772,375 7,792,316 Asian (1,368,099) 37,563,406 (2,367,238) 107,362,286 117,067,641 115,154,602 119,434,879 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – (6,308) 0.8805 1.5078 27,283 33,102 (21,916) (57,823) 847,012 137,589 196,561 (141,809) 9,556,625 (227,856) (1,306,514) 16,295,037 Dividend 15,155,202 14,988,523 15,383,058 Asia Value Equity Fund

– – – – – – – – – – – – – – – 6,967 4,762 0.9929 1.0775 1.1119 0.9575 1.0088 73,527 (22,215) (15,512) (57,994) 10.0255** 547,552 10.0484** 310,823 772,224 (306,339) (200,455) 1,140,945 4,561,080 (1,083,750) (1,373,014) 49,167,079 29,501,724 11,728,405 89,806,359 (1,686,265) 93,532,152 88,433,345 95,218,417 Asia Total Return Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 6,726 (2,362) (4,919) 1.2286 24,883 (18,322) 208,474 964,805 (25,603) 5,000,000 4,963,839 ASEAN 6,143,124 5,928,644 6,168,727 Equity Fund*

– – – – – – – – – – – – – – – – – – – – –

as at 30 June 2016 268 (259) 0.9848 1.4430 1.6518 29,580 (72,348) 29.1481 10.4434** 165,953 (297,957) (expressed in United States Dollars) 1,467,845 5,856,714 1,140,628 8,636,738 6,642,109 7,316,629 (2,722,197) 44,007,423 (3,092,761) 183,315,297 American STATEMENT OF NET ASSETS 234,173,546 227,322,720 237,266,307 Growth Fund The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Expressed in Hong Kong Dollars Class T Class S Hedged Class S Class J Class I3 Class I2 Class I Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class A Class T Class S Hedged Class S Class J Class I3 Class I Class I2 Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class A * **

Net asset value per share:

Formation Expenses (Note 2.8)

Other assets Other liabilities

Tax reclaim Management fees (Note 3.1) Amounts payable on redemptions Amounts receivable on subscriptions Amounts receivable on sales of securities Amounts payable on purchases of securities

Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7)

Unrealised depreciation on future contracts (Note 2.5, 7) Interest and dividends receivable, net Cash at bank Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) 2.6, (Note contracts exchange foreign forward on depreciation Unrealised Unrealised appreciation/(depreciation)

Bank overdrafts Total Liabilities Net Assets Number of shares outstanding: Securities portfolio at market value (Note 2.2) Total Assets Securities portfolio at cost

MANULIFE GLOBAL FUND 8 – – – – – – – – – – – – – – – – – – – – – – – – – 1.0286 4.4900 84,843 36,897 32,776 (27,746) 280,606 (143,803) (204,863) 1,374,880 5,189,605 1,906,765 2,920,385 (1,810,691) Global 24,770,314 (2,187,103) 107,503,450 112,693,055 116,409,822 114,222,719 Equity Fund*

*** – – – – – – – – – – – – – – – – – – – – 1,196 3,099 6,120 6,256 (8,535) 0.9821 1.0515 0.8971 51,342 47,634 45,892 0.9402 (26,534) (48,201) 312,981 226,561 346,589 (242,366) (325,636) (1,273,047) Global 19,394,626 20,194,396 18,121,579 18,803,730 18,478,094 Contrarian Fund

– – – – – – – – – – – – – – – – – – – – – – (7,576) 0.8485 0.8746 9.3845 0.6808 (32,713) 797,351 127,693 198,098 (129,531) (897,033) (476,897) 1,181,018 3,572,835 3,714,492 6,432,922 (4,281,867) 10,019,570 (1,543,750) 103,523,496 99,241,629 European 104,079,263 102,535,513 Growth Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – 9,895 3.0336 1.3192 (50,613) 336,123 211,429 (123,209) (532,890) 2,028,884 3,048,860 Fund (706,712) 31,127,597 (13,761,120) 110,333,054 96,571,934 99,158,265 98,451,553 Emerging Eastern Europe

– – – – – – – – – – – – – – – – – – – – – – – – – – 1.7332 8.3993** 38,795 (52,532) (68,516) (244,792) 1,200,640 1,321,794 1,668,151 4,491,235 (1,195,189) (1,107,717) 36,578,532 87,803,222 Dragon (2,668,746) 185,727,927 190,219,162 194,448,542 191,779,796 Growth Fund

– – – – – – – – – – – – – – – – – – – – – – – – – –

as at 30 June 2016 2.2411 7.1539 18,735 846,847 (257,411) (943,553) (expressed in United States Dollars) 3,259,608 8,172,462 7,614,528 (1,410,516) China 60,975,787 (13,893,091) (68,639,446) 777,098,652 104,581,391 (16,504,571) Value Fund 708,459,206 781,732,645 765,228,074 STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Expressed in Hong Kong Dollars Expressed in Singapore Dollars Class S Class J Class I3 Class I2 Class I Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class A Class T Class S Hedged Class S Class J Class I3 Class I2 Class I Class AA Inc Class T Class AA (HKD) Inc Class AA Class AA (HKD) Class S Hedged Class A

Net asset value per share:

Formation Expenses (Note 2.8) * ** ***

Tax reclaim Other assets Amounts receivable on subscriptions Other liabilities Amounts receivable on sales of securities Management fees (Note 3.1) Amounts payable on purchases of securities

Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Amounts payable on redemptions

Interest and dividends receivable, net Cash at bank Unrealised depreciation on future contracts (Note 2.5, 7) Unrealised appreciation/(depreciation)

Securities portfolio at cost Securities portfolio at market value (Note 2.2) Total Assets Bank overdrafts 7) 2.6, (Note contracts exchange foreign forward on depreciation Unrealised Total Liabilities Net Assets Number of shares outstanding:

9 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – – – – – 0.9278 0.8138 3.1651 (51,146) (14,127) 982,227 109,308 645,321 (749,506) (119,576) 1,041,471 2,697,596 (814,779) 12,054,744 40,398,927 Japanese 40,279,351 41,260,672 42,075,451 Growth Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – 0.9661 1.3609 (74,374) 248,591 410,288 (261,651) (731,227) 3,057,669 4,380,094 India (2,732,050) 10,931,666 16,954,748 (3,799,302) 130,014,724 166,239,647 183,194,395 187,491,735 191,291,037 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – 1.8238 12,419 98,368 (95,764) 331,657 (456,855) (984,751) 1,571,217 3,790,656 Fund (2,703,193) 16,132,090 (4,240,563) 171,697,123 295,449,797 Healthcare 311,581,887 313,145,641 317,386,204

– – – – – – – – – – – – – – – – – – – – – – – – – – – – (4,288) 1.9318 0.9047 21,075 30,920 (11,985) (57,749) 105,345 419,293 170,414 (74,022) 5,520,136 1,855,831 Fund 11,669,996 12,089,289 12,343,021 12,417,043 Opportunities Greater China

– – – – – – – – – – – – – – – – – – – – – – – – (14) (182) 3,249 1.1649 0.7872 30,812 (59,847) (12,560) 166,400 157,526 248,017 (658,480) (523,407) 2,956,144 (3,338,960) Global 52,865,876 43,005,160 (1,254,490) 39,666,200 41,807,458 43,061,948 Resources Fund

– – – – – – – – – – – – – – – – – – – – – – – – – –

as at 30 June 2016 4,092 (6,305) (2,550) 1.0367 1.0382 9.7618** 32,347 47,430 (22,455) 166,400 156,311 486,458 (31,310) (expressed in United States Dollars) 4,440,961 Global 15,040,567 10,723,691 15,164,652 15,827,633 15,858,943 Property Fund

STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Hong Kong Dollars Class T Class S Hedged Class S Class J Class I3 Class I2 Class I Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class A Class T Class S Hedged Class S Class J Class I3 Class I2 Class I Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class A **

Net asset value per share:

Formation Expenses (Note 2.8)

Other assets Tax reclaim Amounts receivable on subscriptions Amounts receivable on sales of securities

Amounts payable on purchases of securities Other liabilities Management fees (Note 3.1) Amounts payable on redemptions Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7)

Unrealised depreciation on future contracts (Note 2.5, 7)

Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) 2.6, (Note contracts exchange foreign forward on depreciation Unrealised Unrealised appreciation/(depreciation) Interest and dividends receivable, net Cash at bank Securities portfolio at cost Securities portfolio at market value (Note 2.2) Total Liabilities Net Assets Number of shares outstanding: Total Assets Bank overdrafts

MANULIFE GLOBAL FUND 10 – – – – – – – – – – – – – – – – – – – 1.0368 1.0376 0.9883 1.2099 9.8767** 43,239 (52,314) 10.1886** 483,312 149,629 264,295 (186,601) (215,714) (394,509) U.S. 4,928,955 1,968,005 1,405,636 2,394,929 2,784,846 (849,138) 54,010,360 110,439,037 187,525,238 Bond Fund 195,493,811 196,342,949 190,310,084

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 0.6846 (13,363) (47,942) 304,391 724,401 (143,256) (204,561) (6,740,070) 48,722,318 39,272,490 Turkey 33,356,651 33,561,212 32,532,420 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – 1.6567 12,987 (11,151) (41,257) 393,002 290,073 135,699 (212,872) (296,642) 4,990,248 (561,922) 17,414,956 23,591,387 Taiwan 28,851,474 29,413,396 28,581,635 Equity Fund

*** – – – – – – – – – – – – – – – – – – – – – – – – 1,284 1.0182 1.0720 40,668 0.9203 (22,797) (48,273) (90,014) (52,975) 428,331 (149,419) 1,446,748 1,132,141 (363,478) (1,186,760) 21,954,109 29,016,502 47,517,045 Strategic 47,569,231 47,932,709 46,330,285 Income Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 0.4388 10,933 (42,412) 555,903 289,066 (132,170) (872,804) 1,594,564 Russia (10,995,228) (1,047,386) 208,496,411 101,087,249 91,495,101 92,542,487 90,092,021 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

as at 30 June 2016 0.7964 42,888 (17,879) (71,884) 119,112 173,388 (142,086) (expressed in United States Dollars) 2,380,128 (231,849) Latin 65,349,108 49,557,116 America 52,040,783 52,272,632 51,937,244 Equity Fund

STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Hong Kong Dollars Expressed in Singapore Dollars Class S Hedged Class S Class J Class I3 Class I2 Class I Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class A Class T Class S Hedged Class S Class J Class I3 Class I2 Class I Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class T Class A

Net asset value per share:

Formation Expenses (Note 2.8)

Other assets Amounts receivable on subscriptions Tax reclaim Other liabilities

Management fees (Note 3.1) Amounts receivable on sales of securities ** *** Amounts payable on redemptions Amounts payable on purchases of securities

Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Unrealised depreciation on future contracts (Note 2.5, 7) Cash at bank Interest and dividends receivable, net

Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7) 2.6, (Note contracts exchange foreign forward on depreciation Unrealised

Bank overdrafts Net Assets Number of shares outstanding: Total Assets Total Liabilities Securities portfolio at market value (Note 2.2) Securities portfolio at cost Unrealised appreciation/(depreciation)

11 MANULIFE GLOBAL FUND 31,154 26,827 53,131 297,247 (306,339) (253,612) (4,004,990) (1,064,767) (2,511,909) 16,781,825 12,599,050 17,574,042 17,213,992 (40,961,555) (15,152,938) 119,842,815 (64,256,110) 3,109,218,698 30 June 2016 Combined for the year ended 3,293,638,781 3,229,382,671 3,126,432,690

– – – – – – – – – – – – – – – – – – – – – – – – – – – (8,120) (4,069) 1.0426 1.0374 1.3109 89,974 75,535 33,836 (23,697) 416,000 156,914 198,033 (35,886) 5,891,009 7,957,416 8,354,794 8,318,908 8,155,449 Inflation- Protected U.S. Treasury Securities Fund

– – – – – – – – – – – – – – – – – – – – 669 0.9813 1.0927 0.8906 0.8615 0.8544 (73,089) (22,834) 545,805 192,035 436,268 (146,096) (102,398) 1,001,710 1,102,883 2,756,074 1,116,765 Fund (344,417) (4,151,222) 11,151,779 69,899,251 70,048,271 71,309,708 70,965,291 65,897,049 U.S. Special Opportunities

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – (132) (9,923) 1.1414 40,574 12,313 (86,427) (37,238) 108,157 1,012,144 1,900,126 (133,720) 22,041,489 22,218,794 25,292,108 25,158,388 24,118,920 Equity Fund U.S. Small Cap

as at 30 June 2016 (expressed in United States Dollars) STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Class T Class S Hedged Class S Class J Class I3 Class I Class I2 Class AA Inc Class AA (HKD) Inc Class AA (HKD) Class AA Class A Class T Class S Hedged Class S Class J Class I3 Class AA Inc Class I Class I2 Class AA (HKD) Inc Class AA (HKD) Class AA Class A

Net asset value per share:

Formation Expenses (Note 2.8)

Other assets Amounts payable on purchases of securities Other liabilities Amounts payable on redemptions Management fees (Note 3.1)

Unrealised depreciation on future contracts (Note 2.5, 7)

Amounts receivable on sales of securities Amounts receivable on subscriptions Tax reclaim Unrealised depreciation on forward foreign exchange contracts (Note 2.6, 7)

Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Total Assets Bank overdrafts Total Liabilities Net Assets Number of shares outstanding: Securities portfolio at market value (Note 2.2) Cash at bank Interest and dividends receivable, net Unrealised appreciation/(depreciation) Securities portfolio at cost

MANULIFE GLOBAL FUND 12 – – – – – – – – – – – – – – – – – – – – – – – – – – – – 1,369 50,123 50,000 9.8313 3.0792 1.5047 1.4959 1.5252 453,714 (578,175) (249,156) 8,640,678 5,320,081 (4,707,655) (2,768,195) 14,229,658 11,735,370 China (8,303,181) 112,168,827 874,076,331 233,159,034 Value Fund 1,107,235,365 1,138,521,843 1,130,218,662

– – – – – – – – – – – – – – – – – – – – – – – (8,773) 2,169 50,027 50,000 50,232 2.3928 1.4001 1.3893 1.4155 1.6773 9.6801* (79,236) 461,705 (810,457) 2,324,311 1,244,405 3,218,069 (7,145,965) (1,891,658) (1,019,394) 80,376,809 43,898,722 42,197,190 Asian 351,458,892 143,253,663 (10,955,483) Small Cap 395,357,614 444,343,758 433,388,275 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – 497 3.4164 1.0993 1.2669 0.9668 (28,307) 609,520 401,900 298,595 (440,075) (266,178) 7,125,242 9,631,716 2,694,758 3,638,407 (2,160,921) 24,451,712 98,086,922 16,027,634 Asian (2,895,481) 107,718,638 114,960,415 112,064,934 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – (5,717) 63,597 1.8544 1.1325 (30,698) (69,894) 647,958 946,017 167,273 168,900 (189,004) (516,160) 9,952,857 3,357,388 (811,473) 15,298,568 18,655,956 20,001,743 19,190,270 Dividend Asia Value Equity Fund

– – – – – – – – – – – – – – – – – – – – – 7,776 55,363 53,366 52,660 42,570 53,992 22,188 98,862 0.9937 0.9456 0.9389 0.9384 0.9395 1.1122 0.9822 9.9356* (99,421) (14,690) 128,500 (142,916) 5,717,468 1,230,778 (257,027) (3,649,725) 89,116,666 11,986,972 35,052,756 42,414,799 85,466,941 92,586,583 92,329,556 Asia Total Return Fund

– – – – – – – – – – – – – – – – – – – –

– as at 30 June 2015 (182) 1,870 6,550 1,624 50,000 50,000 50,000 1.7049 1.4251 1.4133 1.4425 1.4791 0.9994 (51,050) 172,661 619,199 30.0107 10.5950* (544,136) 3,171,325 6,888,537 2,820,900 8,068,798 1,222,757 (expressed in United States Dollars) (1,200,966) 55,260,978 (1,796,334) 167,217,520 American 222,478,498 226,702,990 224,906,656 STATEMENT OF NET ASSETS Growth Fund The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Hong Kong Dollars Class AA (HKD) Class AA (HKD) Inc Class AA exchange contracts (Note 2.6, 7) Class A Class AA Inc Class HA Class HC Class I2 Class HI Class I Class I3 Class J Class S Class S Hedged Class T Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I2 Class I Class I3 Class J Class S Class S Hedged Class T

Securities portfolio at cost Securities portfolio at market value (Note 2.2) Total Assets Bank overdrafts * Options purchased at market value Unrealised depreciation on forward foreign Total Liabilities Net Assets Number of shares outstanding:

Unrealised appreciation/(depreciation) Amounts payable on purchases of securities Amounts payable on redemptions

Cash at bank Management fees (Note 3.1)

Interest and dividends receivable, net Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7)

Unrealised appreciation on future contracts (Note 2.5, 7) Other liabilities

Amounts receivable on subscriptions Amounts receivable on sales of securities

Tax reclaim

Other assets

Formation Expenses (Note 2.8) Net asset value per share:

13 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

3,160 (9,419) 37,305 0.7715 158,900 134,435 (350,599) (100,014) (460,032) (6,479,098) 43,700,128 40,321,136 Global 34,175,838 33,715,806 33,842,038 Resources Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – (11)

(5,179) 24,155 39,197 9.3715* (24,354) (47,454) 0.9978 293,449 166,825 (128,219) 4,618,383 (205,217) 16,789,166 11,869,450 Global 16,987,304 16,782,087 16,487,833 Property Fund

– – – – – – – – – – – – – – – – – – – – – – –

1,149 1,149 4,978 50,000 42,004 50,000 50,057 50,000 90,453 0.9779 1.0281** (62,564) (10,297) 0.9496 1.0367 1.0281 1.0484 1.1420 465,530 627,790 (100,259) (517,175) (227,304) (400,424) 22,466,028 22,475,499 Global 22,562,438 22,162,014 21,958,324 Contrarian Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

54,650 59,905 0.9768 (25,665) 0.7966 1.0213 150,519 415,114 392,807 758,314 11.0119 (402,309) (238,057) 7,841,983 7,731,749 2,543,295 4,718,603 (666,031) 94,444,999 98,404,489 97,738,458 96,988,294 European Growth Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

2,879 3.3315 (42,830) 1.4313 158,326 471,674 (680,247) (273,633) 3,175,020 3,400,338 (996,710) (7,998,052) Fund 31,554,087 114,627,116 Emerging 110,662,281 109,665,571 106,629,064 Eastern Europe

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

as at 30 June 2015 2.2818 (36,843) 11.0415* (385,597) 2,784,670 1,603,663 2,207,436 (expressed in United States Dollars) (1,162,327) 45,553,691 35,793,624 23,646,249 (1,584,767) Dragon 126,269,816 156,511,834 154,927,067 149,916,065 Growth Fund STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Hong Kong Dollars Expressed in Singapore Dollars Class A exchange contracts (Note 2.6, 7) Class AA Class AA (HKD) Inc Class AA (HKD) Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T ** Total Assets Bank overdrafts Total Liabilities Net Assets Number of shares outstanding: * Securities portfolio at cost Securities portfolio at market value (Note 2.2) Unrealised depreciation on forward foreign

Options purchased at market value Unrealised appreciation/(depreciation) Amounts payable on purchases of securities Amounts payable on redemptions Management fees (Note 3.1)

Cash at bank Other liabilities

Interest and dividends receivable, net

Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7)

Unrealised appreciation on future contracts (Note 2.5, 7)

Amounts receivable on sales of securities Other assets Amounts receivable on subscriptions

Tax reclaim

Formation Expenses (Note 2.8)

Net asset value per share:

MANULIFE GLOBAL FUND 14 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

(17,933) 0.8679 828,914 137,177 340,321 (171,381) (634,181) (823,495) (2,792,715) Latin 69,129,647 62,309,128 59,516,413 60,822,825 59,999,330 America Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

26,881 3.5307 0.9080 1.0170 (15,476) (93,247) 365,248 181,217 418,027 457,039 (449,462) (413,568) 4,131,004 9,790,905 1,371,579 (971,753) 37,393,333 Japanese 38,764,912 39,756,285 38,784,532 Growth Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 2,583 (5,417) 20,266 4.8079 1.1038 (90,549) (10,313) (62,895) (44,133) 203,104 535,189 4,450,975 2,728,294 2,944,867 (213,307) 14,537,544 17,482,411 18,243,553 18,030,246 International Growth Fund*

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

1.3977 0.9844 (41,989) (62,547) 369,523 (516,380) 3,345,123 2,039,467 1,087,451 (1,755,574) (2,293,252) India 23,351,091 11,893,449 (4,669,742) 133,163,881 172,310,046 195,661,137 202,502,701 197,832,959 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

39 5,107 1.9940 1.0024 (69,556) 295,927 710,936 (897,346) (785,369) Fund 4,313,379 (2,174,684) 52,121,219 (3,926,955) 147,944,325 242,901,530 Healthcare 295,022,749 299,637,201 295,710,246

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

as at 30 June 2015 (3,653) 65,369 44,118 33,565 1.1283 0.9800 (42,431) 2.3938 191,141 386,372 700,060 (455,477) (expressed in United States Dollars) Fund 2,496,826 2,386,078 6,351,712 (501,561) 16,102,956 18,489,034 19,209,599 18,708,038 Opportunities Greater China STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Class AA (HKD) exchange contracts (Note 2.6, 7) Class AA Class AA (HKD) Inc Class A Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Class AA (HKD) Class A Class AA Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

Securities portfolio at market value (Note 2.2) * Options purchased at market value Interest and dividends receivable, net Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Unrealised depreciation on forward foreign Securities portfolio at cost Total Assets Bank overdrafts Total Liabilities Net Assets Number of shares outstanding: Unrealised appreciation/(depreciation) Cash at bank Unrealised appreciation on future contracts (Note 2.5, 7) Amounts payable on purchases of securities Amounts payable on redemptions Other liabilities Amounts receivable on sales of securities

Management fees (Note 3.1) Amounts receivable on subscriptions

Tax reclaim Other assets

Formation Expenses (Note 2.8)

Net asset value per share:

15 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – – – – – 940 (8,434) 19,333 50,000 50,000 50,000 1.1847 1.0344 (77,204) 1.1988 1.1889 1.2136 625,511 183,900 113,461 621,340 (193,966) (265,711) 3,101,589 (545,315) 24,931,200 23,304,506 28,032,789 28,975,934 28,430,619 Equity Fund U.S. Small Cap

– – – – – – – – – – – – – – – – – – 813 9,779 5,804 93,651 54,711 53,985 55,357 1.2082 0.9859 0.9458 0.9453 0.9462 1.0108 0.9928 9.8928* 9.8002* (33,661) 199,878 715,493 (694,718) (576,434) (308,668) (311,181) 4,544,246 1,177,654 1,934,170 1,550,545 U.S. 13,581,746 (1,229,944) 143,257,323 108,027,842 142,562,605 149,206,493 147,976,549 Bond Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

42,061 0.7915 (12,137) 289,805 899,727 357,968 (114,675) (5,438,353) (1,219,877) 45,996,833 51,547,433 Turkey (1,346,689) 40,558,480 42,148,041 40,801,352 Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

(9,763) 1.7181 (89,938) 917,163 213,953 416,921 810,264 (297,079) (874,676) 5,132,105 26,096,951 18,809,293 Taiwan (1,271,456) 31,229,056 33,587,357 32,315,901 Equity Fund

** – – – – – – – – – – – – – – – – – – – – – – –

4,169 15,625 53,753 53,042 54,394 67,301 1.0788 0.9468 0.9463 0.9471 1.0162 0.9238 (18,807) 644,840 546,754 758,735 (466,981) (330,258) (120,500) 1,020,129 (1,402,398) (2,439,127) 60,238,503 29,295,254 35,991,913 (2,338,944) 57,799,376 59,836,800 57,497,856 Strategic Income Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

as at 30 June 2015

3,130 0.4494 (32,631) 359,621 701,034 (693,090) (298,153) 2,009,130 (expressed in United States Dollars) Russia (15,728,246) (1,023,874) 115,432,298 226,397,713 99,704,052 102,776,967 101,753,093 Equity Fund STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Hong Kong Dollars Expressed in Singapore Dollars Class A exchange contracts (Note 2.6, 7) Class T Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged ** Securities portfolio at market value (Note 2.2) Total Assets Bank overdrafts Total Liabilities Net Assets Number of shares outstanding: * Securities portfolio at cost Unrealised depreciation on forward foreign Options purchased at market value Unrealised appreciation/(depreciation)

Cash at bank Amounts payable on purchases of securities Amounts payable on redemptions Interest and dividends receivable, net Management fees (Note 3.1)

Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Other liabilities Unrealised appreciation on future contracts (Note 2.5, 7)

Amounts receivable on sales of securities

Amounts receivable on subscriptions

Tax reclaim

Other assets Formation Expenses (Note 2.8)

Net asset value per share:

MANULIFE GLOBAL FUND 16 (8,773) 15,625 22,188 84,463 13,930 57,900 801,305 (886,751) (3,288,757) (9,216,368) 54,617,781 21,977,353 51,334,354 24,065,305 (14,022,658) (21,410,394) 415,226,739 (48,833,701) 3,060,001,647 30 June 2015 Combined for 3,628,218,590 3,475,228,386 3,579,384,889 the year ended

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – (3,626) 31,852 41,338 (17,208) (93,289) 1.2832 152,944 (187,457) 6,530,561 8,455,370 (208,291) 8,588,215 8,362,081 8,379,924 Inflation- Protected U.S. Treasury Securities Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – 8,126 (29,825) 1.0460 0.9439 0.9097 0.9151 363,560 (120,681) (170,270) (109,439) 546,639 5,451,939 4,414,693 1,354,189 1,055,874 (430,215) (5,467,056) Fund 11,816,677 76,064,369 84,775,717 86,505,103 79,308,661 86,074,888 U.S. Special Opportunities

as at 30 June 2015 (expressed in United States Dollars)

STATEMENT OF NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Class I2 Class I3 Class J Class S Class S Hedged Class T Class HA Class HC Class HI Class I Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class AA Class A Class I2 Class I3 Class J Class S Class S Hedged Class T Class HA Class HC Class HI Class I exchange contracts (Note 2.6, 7) Class AA (HKD) Inc Class AA Inc Class AA (HKD) Class AA Class A

Net asset value per share:

Total Assets Bank overdrafts Unrealised depreciation on forward foreign Amounts payable on redemptions Management fees (Note 3.1) Other liabilities

Options purchased at market value Securities portfolio at cost Securities portfolio at market value (Note 2.2) Total Liabilities Net Assets Number of shares outstanding: Unrealised appreciation/(depreciation) Amounts payable on purchases of securities Cash at bank Interest and dividends receivable, net Unrealised appreciation on forward foreign exchange contracts (Note 2.6, 7) Unrealised appreciation on future contracts (Note 2.5, 7) Amounts receivable on sales of securities Amounts receivable on subscriptions Tax reclaim Other assets Formation Expenses (Note 2.8)

17 MANULIFE GLOBAL FUND

– – 22,872 596,093 Asian (3,126,443) (3,068,181) (4,757,556) 61,523,161 Small Cap (22,163,763) (90,397,733) (92,266,688) (62,658,311) 433,388,275 307,489,459 Equity Fund

– – – 337,973 (554,789) Asian (1,839,400) (1,005,809) (1,008,905) 61,124,676 (14,089,232) (41,477,948) (10,573,091) 112,064,934 117,067,641 Equity Fund

– – – 422 (31,678) (11,973) 674,924 315,546 4,655,292 (4,663,902) (3,684,983) (4,973,699) 19,190,270 15,155,202 Dividend Asia Value Equity Fund

154,521 200,679 (243,025) (328,527) (176,856) (840,095) 2,276,711 4,193,160 3,149,752 (3,502,384) 92,329,556 93,532,152 18,150,202 (17,638,382) Asia Total Return Fund

– – – – – – 79 42,847 (93,443) 964,805 228,836 ASEAN 1,143,124 6,143,124 5,000,000 Equity Fund*

– – – – (720) 4,244 (expressed in United States Dollars) 8,106,052 (4,446,716) (1,303,457) American (11,253,555) (92,896,833) 234,173,546 106,611,159 224,906,656 for the year ended 30 June 2016 Growth Fund STATEMENT OF CHANGES IN NET ASSETS The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) Net change in unrealised appreciation/(depreciation) on:

* Net assets at the end of year Amounts paid on redemption of shares Dividends paid during the year (Note 5) Amounts received on subscription of shares

Net investment income/(deficit) Net profits/(losses) realised on: Net assets at the beginning of year

MANULIFE GLOBAL FUND 18

– – (4,797) 32,776 (65,020) (166,908) Global 2,244,738 1,035,936 1,767,716 4,849,238 18,030,246 (12,274,941) 114,222,719 103,622,973 Equity Fund*

– – 6,256 4,521 54,073 (71,557) (35,622) (755,872) (389,437) Global 2,998,314 (5,494,596) (1,152,016) 18,478,094 22,162,014 Contrarian Fund

– – – – (53,839) (756,409) 1,731,816 (6,825,162) (8,085,204) 67,399,838 97,738,458 European (48,613,985) (13,232,389) 102,535,513 Growth Fund

– – – – (291,867) Fund 2,135,770 (5,763,068) (2,231,480) (3,880,078) (7,799,243) 98,451,553 17,116,964 Emerging (18,300,259) 109,665,571 Eastern Europe

– – – (106) 5,928 1,685,792 Dragon (1,276,354) (19,155,014) (69,573,559) (15,649,346) (33,112,746) 191,779,796 140,815,388 154,927,067 Growth Fund

– – – (1,276) (expressed in United States Dollars) (103,195) China 4,737,924 (6,728,383) (1,996,316) 765,228,074 120,828,135 Value Fund (301,798,480) (179,928,997) (299,161,343) for the year ended 30 June 2016 1,130,218,662 STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) Net change in unrealised appreciation/(depreciation) on: Dividends paid during the year (Note 5)

Amounts paid on redemption of shares Net assets at the end of year * Amounts received on subscription of shares Net profits/(losses) realised on: Net assets at the beginning of year Net investment income/(deficit)

19 MANULIFE GLOBAL FUND

– – – 14 15,550 (82,603) 100,067 (1,491,155) (2,306,377) (3,681,901) Japanese 41,260,672 38,784,532 40,235,579 (33,994,935) Growth Fund

– – – – (7,704) (423,095) India 4,225,101 (6,396,343) (3,111,553) (5,705,890) 55,431,889 (60,059,519) 187,491,735 197,832,959 Equity Fund

– – – (26) (378) 17,150 Fund 8,818,118 (1,046,103) (35,989,129) (98,704,393) (28,199,990) Healthcare 313,145,641 295,710,246 144,340,156

– – – – (7,981) 26,117 (189,017) Fund 2,228,723 (1,966,785) (1,467,888) (4,988,186) (3,416,537) 12,343,021 18,708,038 Opportunities Greater China

– – – 286 (182) (1,934) 24,980 Global 3,140,138 2,031,637 (1,131,651) 41,807,458 33,715,806 20,114,006 (14,053,991) Resources Fund

– – – (30) (3,184) 65,449 (13,683) (expressed in United States Dollars) 709,178 593,991 (177,422) Global 2,803,757 (4,338,519) 15,827,633 16,782,087 for the year ended 30 June 2016 Property Fund Property STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. – futures contracts (Note 2.5) – forward foreign exchange contracts (Note 2.6) – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – foreign currency (Note 2.4) – sale of investments and options (Note 2.2)

Net change in unrealised appreciation/(depreciation) on: Dividends paid during the year (Note 5) Net assets at the end of year

Net profits/(losses) realised on: Net investment income/(deficit) Amounts received on subscription of shares Amounts paid on redemption of shares Net assets at the beginning of year

MANULIFE GLOBAL FUND 20

– – – – (727) U.S. 3,479,564 6,448,861 4,567,275 (1,597,251) (4,569,726) (71,824,182) Bond Fund 195,493,811 117,462,309 147,976,549

– – – – – 500 134,878 Turkey (1,301,717) (4,208,541) (5,374,880) 33,356,651 15,315,496 40,801,352 (17,385,317) Equity Fund

– – – – (87,773) 242,872 (141,857) (137,490) Taiwan (1,176,148) (1,162,906) 28,851,474 19,893,734 32,315,901 (22,057,765) Equity Fund

– (11,374) 734,033 (811,710) (109,876) 1,252,367 6,163,315 1,077,014 1,422,465 (1,724,019) (1,398,891) 47,569,231 57,497,856 Strategic (15,444,935) Income Fund

– – – – (160,086) (334,995) Russia 4,733,018 2,015,284 (2,274,921) (6,923,211) 91,495,101 29,222,415 (36,870,491) 101,753,093 Equity Fund

– – – (948) 28,145 (41,502) (27,776) (expressed in United States Dollars) Latin 5,172,843 (5,425,912) America 52,040,783 16,396,585 59,999,330 (10,584,450) (18,901,444) Equity Fund for the year ended 30 June 2016 STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. – futures contracts (Note 2.5) – forward foreign exchange contracts (Note 2.6) – investments and options (Note 2.2) – futures contracts (Note 2.5) – foreign currency (Note 2.4) – forward foreign exchange contracts (Note 2.6) – sale of investments and options (Note 2.2)

Net change in unrealised appreciation/(depreciation) on:

Dividends paid during the year (Note 5) Amounts paid on redemption of shares Net assets at the end of year Net profits/(losses) realised on: Net investment income/(deficit) Amounts received on subscription of shares Net assets at the beginning of year

21 MANULIFE GLOBAL FUND

3,579,384,889 3,579,384,889 3,579,384,889 3,579,384,889 3,579,384,889 3,579,384,889 44,645 (328,527) (993,013) (3,382,424) (5,618,227) 22,324,579 (33,339,299) (501,905,238) (115,939,524) (398,012,747) 30 June 2016 Combined for 3,229,382,671 3,579,384,889 1,215,267,369 the year ended (1,030,025,050) 8,379,924 8,379,924 8,379,924 8,379,924 8,379,924 8,379,924 – – – – – (19) (55,702) (64,823) 170,778 291,322 8,318,908 8,379,924 1,995,196 (2,226,990) Inflation- Protected U.S. Treasury Securities Fund Securities 86,074,888 86,074,888 86,074,888 86,074,888 86,074,888 86,074,888 – – – – (244) (906,467) Fund 3,601,256 1,315,834 (4,430,275) (5,823,313) 70,965,291 86,074,888 28,856,423 (38,629,278) U.S. Special Opportunities

– – – – 244 (1,535) 284,973 (210,916) 4,961,684 (7,105,218) (1,127,162) (1,201,463) 25,158,388 28,430,619 Equity Fund U.S. Small Cap (expressed in United States Dollars) for the year ended 30 June 2016 STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. – futures contracts (Note 2.5) – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) – futures contracts (Note 2.5) – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – forward foreign exchange contracts (Note 2.6) Dividends paid during the year (Note 5) Net assets at the end of year Amounts paid on redemption of shares Net assets at the beginning of year Net investment income/(deficit) Amounts received on subscription of shares

Net profits/(losses) realised on:

Net change in unrealised appreciation/(depreciation) on:

MANULIFE GLOBAL FUND 22

– – – –

(11,215) (345,542) 6,705,420 China 81,319,839 (7,195,654) 145,292,909 979,153,625 207,603,092 232,961,411 (282,303,812) Value Fund 1,130,218,662

– – –

(8,759) 456,434 (174,444) Asian 5,499,219 (5,391,920) (2,701,409) (3,081,939) (1,401,093) 431,994,789 205,878,172 Small Cap (200,382,184) 433,388,275 Equity Fund

– – –

4,025 (57,015) (992,080) (316,965) (414,959) Asian 2,228,844 5,181,363 4,314,554 52,271,460 (57,649,311) 112,676,381 112,064,934 Equity Fund

– – – 101 (5,962) (25,881) 215,230 (463,646) 1,445,943 9,522,507 2,635,463 1,463,716 (8,179,157) 15,217,419 Dividend 19,190,270 Asia Value Equity Fund

– 41,001 106,245 (337,368) (413,463) (592,375) (510,813) 3,007,041 1,626,329 (4,111,347) (2,537,630) 57,391,717 (84,012,284) 92,329,556 122,080,128 Asia Total Return Fund

– – – – – – 12,383 (expressed in United States Dollars) (1,492,932) (4,775,889) 74,571,728 17,313,149 23,569,587 American 240,791,337 (107,769,558) 224,906,656 Growth Fund for the year ended 30 June 2015 STATEMENT OF CHANGES IN NET ASSETS The Notes to the Financial Statements form an integral part of these financial statements. – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) Net assets at the end of year Amounts received on subscription of shares Amounts paid on redemption of shares Dividends paid during the year (Note 5)

Net change in unrealised appreciation/(depreciation) on: Performance related management fees (Note 3.2) Net investment income/(deficit) Net profits/(losses) realised on: Net assets at the beginning of year

23 MANULIFE GLOBAL FUND

– – – – – 800 (140,998) (152,711) Global (2,776,708) 53,363,088 11,906,775 (11,080,549) (17,403,891) (14,150,166) 33,715,806 Resources Fund

– – – –

579 (5,364) 12,036 515,662 (862,169) (138,042) 5,510,222 1,370,580 Global (8,148,952) 19,043,197 16,782,087 Property Fund

– – – –

(59) (256) 24,901 (12,058) 475,664 (686,167) 4,393,434 (1,174,418) 29,078,077 Global (10,623,271) 22,162,014 Contrarian Fund

– – – – 622 (69,934) 762,805 2,713,293 (8,119,048) 55,481,433 (1,191,158) (11,525,834) (65,856,870) 97,738,458 European 117,424,101 Growth Fund

– – – – 1,715 (120,897) (964,617) Fund 2,112,607 16,767,725 (18,086,413) (47,280,829) (28,705,592) (31,187,841) Emerging 169,848,884 109,665,571 Eastern Europe

– – –

12 (18) 2,584 (expressed in United States Dollars) (712,499) 8,598,677 1,175,720 Dragon 21,578,686 99,207,071 11,801,711 146,856,243 (112,002,434) 154,927,067 Growth Fund for the year ended 30 June 2015 STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. – futures contracts (Note 2.5) – futures contracts (Note 2.5) – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) – forward foreign exchange contracts (Note 2.6) Net assets at the end of year Amounts received on subscription of shares Amounts paid on redemption of shares Dividends paid during the year (Note 5) Performance related management fees (Note 3.2)

Net change in unrealised appreciation/(depreciation) on: Net assets at the beginning of year Net investment income/(deficit) Net profits/(losses) realised on:

MANULIFE GLOBAL FUND 24

– – – –

(7,268) (13,800) (160,441) Latin (6,836,271) 22,714,601 (1,033,265) America (15,710,182) (22,727,962) (39,564,254) 59,999,330 100,610,210 Equity Fund

– – – – – 58,531 (386,412) (171,921) (223,854) 2,150,155 2,649,957 37,905,361 29,056,095 Japanese (30,103,225) 38,784,532 Growth Fund

– – – – 1,931 (7,472) (14,014) 592,692 (18,516) (469,718) 1,081,965 7,730,007 (9,544,479) 19,270,542 18,030,246 International Growth Fund*

– – – – – –

(252,775) India (5,181,819) 16,489,999 34,577,501 97,133,135 (85,572,766) (12,652,908) 169,782,591 197,832,959 Equity Fund

– – – – – – (54,041) Fund 6,348,665 (1,178,197) 30,740,827 35,857,254 (81,225,553) 188,058,867 153,019,678 Healthcare 295,710,246

– – – – – (8,390) (41,330) 494,442 170,322 (expressed in United States Dollars) Fund 1,774,794 1,118,420 (4,519,211) 10,148,832 11,344,953 18,708,038 for the year ended 30 June 2015 Opportunities Greater China STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 – investments and options (Note 2.2) – futures contracts (Note 2.5) – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – forward foreign exchange contracts (Note 2.6) Amounts received on subscription of shares Amounts paid on redemption of shares Dividends paid during the year (Note 5) Net assets at the end of year *

Net change in unrealised appreciation/(depreciation) on: Performance related management fees (Note 3.2) Net investment income/(deficit) Net profits/(losses) realised on: Net assets at the beginning of year

25 MANULIFE GLOBAL FUND

– – – – – – 302 936,246 (323,918) 8,642,351 2,544,255 (1,284,393) 32,916,793 (14,064,771) 28,430,619 Equity Fund U.S. Small Cap

– – – – – 1,227 608,682 (354,999) U.S. 4,560,429 (3,597,975) (5,280,179) (92,367,504) 100,841,417 144,174,133 Bond Fund 147,976,549

– – – – –

4,865 (113,780) (148,060) (473,526) (6,965,599) (7,696,100) Turkey 62,626,139 51,227,603 (65,356,290) 40,801,352 Equity Fund

– – – – –

(65,576) 148,694 (74,355) 1,928,709 3,098,037 (1,252,446) Taiwan 16,941,456 39,705,731 (26,185,640) 32,315,901 Equity Fund

– (2,358) (21,898) 166,363 (485,694) 2,805,646 1,454,118 (3,006,083) (3,971,650) (2,950,610) 12,123,777 88,834,024 (3,316,097) (37,137,765) 57,497,856 Strategic Income Fund

– – – – –

(1,433) (expressed in United States Dollars) (125,645) 2,117,440 Russia 72,588,024 (63,411,497) (31,954,786) (19,573,954) (14,371,194) 101,753,093 124,531,352 Equity Fund for the year ended 30 June 2015 STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) Amounts received on subscription of shares Amounts paid on redemption of shares Dividends paid during the year (Note 5) Net assets at the end of year

Performance related management fees (Note 3.2) Net change in unrealised appreciation/(depreciation) on:

Net assets at the beginning of year Net investment income/(deficit) Net profits/(losses) realised on:

MANULIFE GLOBAL FUND 26 38,643 (899,157) (463,646) 1,545,721 1,555,641 (6,109,045) 57,784,095 20,702,350 193,571,170 119,416,568 (31,936,983) 3,447,646,044 1,614,172,075 (1,644,067,417) 3,579,384,889 30 June 2015 Combined for the year ended

– – – – – 128 26,934 (7,033) (63,855) (317,505) (280,712) 1,090,788 (5,393,435) 8,379,924 13,007,109 Inflation- Protected U.S. Treasury Securities Fund

– – – – 8 643 5,237,110 (7,720,665) (5,095,367) (7,863,059) (7,380,681) 71,633,667 Fund 86,074,888 136,126,278 (106,583,711) U.S. Special Opportunities

(expressed in United States Dollars) for the year ended 30 June 2015

STATEMENT OF CHANGES IN NET ASSETS (continued) The Notes to the Financial Statements form an integral part of these financial statements. – sale of investments and options (Note 2.2) – foreign currency (Note 2.4) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) – investments and options (Note 2.2) – forward foreign exchange contracts (Note 2.6) – futures contracts (Note 2.5) Performance related management fees (Note 3.2) Net assets at the beginning of year Net investment income/(deficit) Net profits/(losses) realised on: Net change in unrealised appreciation/(depreciation) on: Amounts received on subscription of shares Amounts paid on redemption of shares Dividends paid during the year (Note 5) Net assets at the end of year

27 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

92 50,123 50,000 50,215 50,000 453,714 736,510 453,714 China 7,614,528 8,640,678 1,762,660 15,222,934 22,810,370 104,581,391 112,168,827 Value Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

126 446 50,027 50,000 50,232 84,630 50,153 50,000 50,678 505,595 461,705 128,520 77,523,066 80,376,809 19,526,658 15,984,923 22,380,401 Asian 36,467,167 143,253,663 122,771,419 Small Cap Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

401,900 549,885 951,785 3,778,917 7,125,242 5,559,669 1,896,618 9,784,912 5,202,316 5,242,943 37,563,406 24,451,712 16,027,634 18,314,010 Asian 20,252,877 Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

16,076 847,012 647,958 215,130 9,556,625 9,952,857 2,826,423 3,222,655 Dividend Asia Value Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – –

272 910 4,762 6,967 4,762 1,081 1,237 73,527 55,363 53,366 52,660 53,992 25,995 80,968 48,668 54,447 53,570 55,229 128,500 547,552 547,552 3,234,077 5,172,502 9,406,393 3,492,644 2,654,113 11,728,405 11,986,972 35,052,756 42,414,799 29,501,724 49,167,079 10,723,534 Asia Total Return Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

5,000,000 5,000,000 ASEAN Equity Fund* for the year ended 30 June 2016 STATEMENT OF CHANGES IN SHARES – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

1,870 6,886 29,580 50,000 50,000 50,000 34,596 50,000 50,000 50,000 619,199 6,642,109 7,316,629 3,171,325 6,888,537 8,068,798 5,856,714 1,467,845 2,074,892 2,175,317 1,646,800 1,326,671 17,097,032 11,533,572 13,626,248 13,745,656 American Growth Fund The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Class AA (HKD) Class AA (HKD) Inc Class AA Shares outstanding as at 30 June 2016 Class A Class AA Class AA (HKD) Shares outstanding as at 30 June 2015 Class A

*

Class AA (HKD) Inc Class AA Inc Class AA Inc Class HA Class HA Class HC Class HC Class HI Class I Class I2 Class HI Class I3 Class J Class I Class I2 Class S Class I3 Class S Hedged Class J Class S Class T Class S Hedged Total subscriptions Class A Class AA Class AA (HKD) Inc Class AA (HKD) Class T Class AA Inc Class HA Class HC Class HI Class I2 Class I Class J Class I3 Class S Class S Hedged Class T Total redemptions Class A Class AA (HKD) Class AA Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

MANULIFE GLOBAL FUND 28 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

166,400 166,400 52,865,876 43,700,128 29,555,929 20,390,181 Global Resources Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

8,192 32,347 24,155 166,400 166,400 2,674,241 4,422,840 15,040,567 16,789,166 Global Property Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

2,728,294 2,920,385 4,450,975 2,472,877 1,828,486 4,003,467 24,770,314 23,870,506 Global Equity Fund* – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

47 175 1,149 1,196 1,342 50,000 50,000 50,057 50,000 51,342 50,000 50,000 50,232 (continued) 627,790 312,981 553,981 868,790 2,736,031 5,007,663 20,194,396 22,466,028 Global Contrarian Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

415,114 7,841,983 6,432,922 7,731,749 4,718,603 3,572,835 1,181,018 4,260,147 2,656,214 2,082,560 1,890,310 10,019,570 12,784,685 15,855,849 14,083,512 17,001,617 European Growth Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

3,048,860 3,175,020 3,897,733 4,057,723 4,324,223 4,183,883 Fund 31,127,597 31,554,087 Emerging Eastern Europe for the year ended 30 June 2016 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

S tatement of C hanges in hares 87,803,222 45,553,691 36,578,532 35,793,624 72,028,098 14,354,931 29,778,567 13,570,023 Dragon Growth Fund The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Shares outstanding as at 30 June 2016 Class A Shares outstanding as at 30 June 2015 Class A * Class AA Class AA Class AA (HKD) Class AA (HKD) Class AA (HKD) Inc Class AA (HKD) Inc Class AA Inc Class AA Inc Class HA Class HA Class HC Class HC Class HI Class HI Class I Class I2 Class I Class I3 Class I2 Class J Class I3 Class J Class S Class S Class S Hedged Class S Hedged Class T Class T Total subscriptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Total redemptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

29 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

961 1,135 1,285 53,753 53,042 54,394 54,888 54,003 55,679 652,851 226,232 1,446,748 1,020,129 3,632,979 2,552,028 3,911,731 29,016,502 29,295,254 35,991,913 21,954,109 16,589,832 Strategic Income Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

71,640,901 89,542,203 Russia 208,496,411 226,397,713 Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Latin 65,349,108 69,129,647 22,304,636 26,085,175 America Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

457,039 982,227 844,123 9,790,905 2,697,596 4,131,004 9,229,102 1,369,311 6,965,263 12,054,744 10,547,089 11,980,497 Japanese Growth Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

8,211,904 9,173,687 India 10,931,666 11,893,449 35,805,495 38,954,652 130,014,724 133,163,881 Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

710,936 240,400 951,336 Fund 76,821,688 53,068,890 171,697,123 147,944,325 Healthcare for the year ended 30 June 2016 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

700,060 205,837 134,685 834,745 1,855,831 2,496,826 5,520,136 6,351,712 1,822,182 2,463,177 1,037,413 STATEMENT OF CHANGES IN SHARES (continued) Fund Opportunities Greater China The Notes to the Financial Statements form an integral part of these financial statements. Shares outstanding as at 30 June 2016 Class A Shares outstanding as at 30 June 2015 Class A

Class AA (HKD) Class AA Class AA (HKD) Class AA Class AA (HKD) Inc Class AA (HKD) Inc Class AA Inc Class AA Inc Class HA Class HA Class HC Class HC Class HI Class HI Class I Class I Class I2 Class I2 Class I3 Class I3 Class J Class J Class S Class S Class S Hedged Class S Hedged Class T Class T Total subscriptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Total redemptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

MANULIFE GLOBAL FUND 30 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 156,914 416,000 156,914 416,000 5,891,009 6,530,561 1,114,918 1,754,470 Inflation– Protected U.S. Treasury Securities Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 65,512 66,346 192,035 546,639 192,035 545,805 5,451,939 1,001,710 1,317,677 6,870,229 1,982,575 Fund 69,899,251 76,064,369 11,151,779 11,816,677 24,799,059 30,964,177 11,320,458 U.S. Special Opportunities

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 50,000 50,000 50,000 50,000 50,000 50,000 621,340 431,547 4,133,835 5,396,852 1,052,887 22,041,489 23,304,506 Equity Fund U.S. Small Cap

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – 905 732 9,779 1,058 43,239 93,651 54,711 53,985 55,357 72,911 55,978 39,451 55,616 54,717 56,415 (continued) 149,629 483,312 1,934,170 1,550,545 4,928,955 1,146,056 3,378,410 2,596,914 U.S. 13,581,746 54,010,360 46,412,519 57,227,618 44,001,324 16,799,004 110,439,037 108,027,842 Bond Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – 48,722,318 51,547,433 22,057,042 24,882,157 Turkey Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – Fund 17,414,956 18,809,293 12,810,376 14,204,713 Taiwan Equity for the year ended 30 June 2016

S tatement of C hanges in hares The Notes to the Financial Statements form an integral part of these financial statements. Shares outstanding as at 30 June 2016 Class A Shares outstanding as at 30 June 2015 Class A Class AA Class AA (HKD) Class AA Class AA (HKD) Class AA (HKD) Inc Class AA (HKD) Inc Class AA Inc Class HA Class AA Inc Class HA Class HC Class HI Class HC Class I2 Class I Class HI Class J Class I3 Class I Class I2 Class S Class I3 Class S Hedged Class J Class T Class S Total subscriptions Class A Class S Hedged Class AA (HKD) Class AA Class AA (HKD) Inc Class T Class HA Class AA Inc Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Total redemptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class HA Class AA Inc Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

31 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

45,553,691 39,378,068 35,793,624 20,572,221 37,294,070 52,840,818 31,118,447 37,619,415 Dragon Growth Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

123

50,123 50,000 50,000 50,000 300,754 453,714 8,640,678 9,107,332 2,399,768 2,290,709 2,866,422 2,137,749 21,815,027 30,426,018 China 112,168,827 120,779,818 Value Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

15

50,027 50,000 50,027 50,000 50,217 98,494 50,232 461,705 560,199 452,292 452,292 80,376,809 78,179,391 39,193,342 66,948,862 Asian 36,995,924 68,970,472 145,275,273 143,253,663 Small Cap Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

401,900 682,312 280,412 7,125,242 3,980,079 4,806,800 8,486,895 6,882,676 5,341,732 24,451,712 26,527,588 17,702,134 22,293,799 Asian 23,968,299 16,027,634 Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

11,316 647,958 659,274 9,952,857 9,518,516 5,202,654 4,768,313 Dividend Asia Value Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

1,362 1,088 1,605 55,363 53,366 52,660 52,004 51,572 52,387 55,363 53,992 128,500 246,239 117,739 3,969,870 9,389,082 5,637,209 11,986,972 17,406,184 34,489,028 45,432,466 48,052,008 44,868,738 35,052,756 42,414,799 Asia Total Return Fund for the year ended 30 June 2015 STATEMENT OF CHANGES IN SHARES – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

1,870 50,000 50,000 50,000 50,000 50,000 50,000 619,199 122,921 619,199 121,051 6,888,537 3,171,325 8,152,264 3,393,914 5,472,976 1,297,854 7,273,382 2,561,581 7,495,971 8,068,798 17,923,745 15,327,923 American Growth Fund The Notes to the Financial Statements form an integral part of these financial statements. Shares outstanding as at 30 June 2015 Class A Class AA Class AA (HKD) Class AA (HKD) Shares outstanding as at 30 June 2014 Class A Class AA

Class AA (HKD) Inc Class AA Inc Class AA (HKD) Inc Class HA Class HC Class AA Inc Class HI Class I Class I2 Class HA Class HC Class I3 Class HI Class I Class I2 Class J Class S Class I3 Class S Hedged Class J Class T Class S Class S Hedged Class T Total subscriptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Total redemptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

MANULIFE GLOBAL FUND 32

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

710,936 710,936 Fund 90,581,975 43,401,954 147,944,325 100,764,304 Healthcare

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

2,585 700,060 700,060 Fund 2,496,826 5,359,805 4,138,896 2,106,768 1,644,655 1,114,861 6,351,712 Opportunities Greater China – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

43,700,128 49,863,076 13,088,717 19,251,665 Global Resources Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

24,155 24,155 (continued) 5,393,886 8,003,227 16,789,166 19,398,507 Global Property Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

57

3,595 1,149 50,000 50,000 50,000 11,095 13,541 50,000 50,000 50,057 50,000 627,790 151,567 535,886 627,790 637,453 3,305,385 22,466,028 29,504,742 10,344,099 Global Contrarian Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

415,114 660,646 245,532 7,841,983 8,753,712 7,731,749 7,954,667 5,954,310 2,948,921 3,860,650 4,718,603 12,952,029 11,528,165 13,174,947 12,763,872 European Growth Fund for the year ended 30 June 2015 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

3,175,020 3,357,458 4,089,717 1,047,769 7,090,658 1,230,207 S tatement of C hanges in hares Fund 31,554,087 34,555,028 Emerging Eastern Europe The Notes to the Financial Statements form an integral part of these financial statements. Shares outstanding as at 30 June 2015 Class A Shares outstanding as at 30 June 2014 Class A

Class AA Class AA (HKD) Class AA Class AA (HKD) Inc Class AA (HKD) Class AA Inc Class AA (HKD) Inc Class HA Class AA Inc Class HC Class HI Class HA Class I Class HC Class I2 Class HI Class I3 Class I Class I2 Class J Class I3 Class S Class J Class S Hedged Class S Class S Hedged Class T Class T Total subscriptions Class A Class AA (HKD) Class AA Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Total redemptions Class A Class AA (HKD) Class AA Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

33 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

24,591,265 10,547,082 16,329,054 18,809,293 Taiwan Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

1,607 1,333 1,856 52,146 51,709 52,538 53,753 53,042 54,394 501,580 809,900 676,388 1,194,937 4,529,519 7,808,569 7,318,652 1,020,129 32,084,387 18,045,350 39,491,260 18,855,250 11,307,916 29,295,254 35,991,913 Strategic Income Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Russia 203,342,136 154,556,694 131,501,117 226,397,713 Equity Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

Latin 86,421,450 21,421,258 38,713,061 69,129,647 America Equity Fund

– – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

580,613 457,039 700,060 243,021 4,131,004 9,790,905 5,730,755 7,096,154 8,080,525 11,156,304 11,630,916 Japanese Growth Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

535,099 4,450,975 2,728,294 3,278,892 3,727,711 4,932,344 1,085,697 4,209,080 International Growth Fund* for the year ended 30 June 2015 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

1,081,802 STATEMENT OF CHANGES IN SHARES (continued) India 59,778,662 12,975,251 61,165,097 11,893,449 133,163,881 134,550,316 Equity Fund The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Shares outstanding as at 30 June 2015 Class A Shares outstanding as at 30 June 2014 Class A * Class AA (HKD) Class AA Class AA Class AA (HKD) Class AA (HKD) Inc Class AA (HKD) Inc Class AA Inc Class AA Inc Class HA Class HC Class HA Class HI Class HC Class I Class HI Class I Class I3 Class I2 Class I2 Class I3 Class J Class J Class S Class S Class S Hedged Class S Hedged Class T Class T Total subscriptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Class AA (HKD) Total redemptions Class A Class AA Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I3 Class I2 Class J Class S Class S Hedged Class T

MANULIFE GLOBAL FUND 34 – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

835,986 9,838,985 4,144,410 6,530,561 Inflation- Protected U.S. Treasury Securities Fund – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

2,381 2,381 546,639 1,963,173 7,061,470 4,489,234 2,240,651 5,451,939 Fund 76,064,369 39,280,251 14,057,328 14,334,511 83,889,032 10,845,745 11,004,065 11,816,677 120,673,150 U.S. Special Opportunities – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

50,000 50,000 50,000 50,000 50,000 50,000 671,106 621,340 859,018 237,678 5,907,893 1,083,829 1,754,935 28,028,764 23,304,506 10,632,151 Equity Fund U.S. Small Cap – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

1,610 1,330 1,862 9,779 53,101 52,655 53,495 39,326 29,547 79,747 93,651 54,711 53,985 55,357 (continued) 173,398 1,178,605 1,550,545 3,072,093 1,550,545 1,137,923 1,934,170 Fund 58,155,850 24,271,496 64,435,095 11,868,355 13,581,746 114,307,087 108,027,842 U.S. Bond – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – –

53,285,512 51,547,433 69,615,272 71,353,351 Turkey Equity Fund for the year ended 30 June 2015 S tatement of C hanges in hares The Notes to the Financial Statements form an integral part of these financial statements. Shares outstanding as at 30 June 2014 Class A Shares outstanding as at 30 June 2015 Class A

Class AA (HKD) Class AA Class AA Class AA (HKD) Class AA (HKD) Inc Class AA (HKD) Inc Class AA Inc Class AA Inc Class HA Class HC Class HA Class HI Class HC Class I2 Class I Class HI Class I Class I2 Class I3 Class J Class I3 Class S Class J Class S Hedged Class S Class T Class S Hedged Class T Total subscriptions Class A Class AA Class AA (HKD) Class AA (HKD) Inc Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T Total redemptions Class A Class AA Class AA (HKD) Inc Class AA (HKD) Class AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Class S Hedged Class T

35 MANULIFE GLOBAL FUND – 231 679 5,409 6,631 1,833 48,932 38,239 27,877 54,600 596,093 158,753 239,088 249,812 Asian 5,598,422 4,767,248 6,193,605 6,194,515 Small Cap Equity Fund

– 231 304 401 1,564 9,921 2,512 16,242 66,140 57,104 13,597 337,973 103,082 132,081 Asian 1,890,610 1,487,966 2,228,048 2,228,583 Equity Fund

– – – 342 251 177 2,682 9,335 2,130 7,972 5,059 42,840 40,079 393,365 282,840 315,546 708,569 708,911 Dividend Asia Value Equity Fund

– 231 1,893 1,339 7,776 9,421 3,153 6,068 12,929 16,545 13,037 31,989 890,028 680,677 107,094 3,149,752 4,037,656 4,039,780 Asia Total Return Fund

– – – 3 78 496 447 399 429 629 593 9,221 69,461 40,178 42,847 16,988 112,308 112,308 Fund* ASEAN Equity

– – 231 418 1,355 3,549 7,397 35,802 41,658 22,903 31,643 109,212 203,486 (expressed in United States Dollars) 3,893,082 2,589,625 3,435,659 2,589,394 (1,303,457) American STATEMENT OF OPERATIONS Growth Fund for the year ended 30 June 2016

The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Deposit interest (Note 2.3) Other income Amortisation of formation expenses (Note 2.8) Directors fees and expenses (Note 3.8) Audit fees Legal and other professional fees Printing and publishing expenses Taxation (Note 4) Custodian fees (Note 3.3) Expenses Management fees (Note 3.1) Net investment income/(deficit) * Administration fees (Note 3.3)

Bond interest (Note 2.3) Income Dividends (Note 2.3) Other expenses Bank charges

MANULIFE GLOBAL FUND 36 – – 241 960 764 131 8,002 3,059 2,195 16,759 15,976 68,082 33,017 877,067 Global 1,035,936 1,023,063 2,055,809 2,058,999 Equity Fund*

– 3 294 192 881 311 1,879 9,378 8,844 6,000 14,074 21,260 62,647 54,073 461,064 514,253 336,185 515,137 Global Contrarian Fund

– – 230 9,175 4,847 1,667 1,533 4,457 46,881 18,456 74,116 30,992 117,207 1,778,866 3,508,785 1,471,202 3,510,682 1,731,816 European Growth Fund

– – – 868 231 9,637 1,523 48,293 31,094 32,664 20,594 131,485 234,810 Fund 1,982,622 4,118,161 1,471,654 4,118,392 2,135,770 Emerging (continued) Eastern Europe

– – – 636 231 2,272 8,951 27,276 79,795 25,341 28,691 11,577 141,178 Dragon 2,720,769 4,406,330 2,395,052 4,406,561 1,685,792 Growth Fund

– 3 553 240 1,370 98,702 13,792 78,716 (expressed in United States Dollars) 225,366 419,256 198,464 110,681 658,277 China 4,737,924 14,724,534 19,462,215 12,919,357 19,462,458 Value Fund for the year ended 30 June 2016

STATEMENT OF OPERATIONS The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Legal and other professional fees Audit fees Amortisation of formation expenses (Note 2.8) Other expenses Net investment income/(deficit) * Income Dividends (Note 2.3) Bond interest (Note 2.3) Other income Expenses Management fees (Note 3.1) Administration fees (Note 3.3) Custodian fees (Note 3.3) Taxation (Note 4) Printing and publishing expenses Directors fees and expenses (Note 3.8) Bank charges Deposit interest (Note 2.3)

37 MANULIFE GLOBAL FUND – – – 540 612 8,347 1,710 1,949 1,903 7,878 79,447 44,615 19,693 100,067 765,451 863,569 865,518 600,706 Japanese Growth Fund

– – – 319 177 2,854 25,906 10,185 18,507 143,853 290,738 130,783 India 5,123,997 2,012,125 2,012,444 3,139,627 1,361,367 (3,111,553) Equity Fund

– – – 238 716 4,667 43,541 12,262 25,385 23,594 52,618 193,025 153,234 Fund 5,898,273 4,851,932 4,852,170 5,389,231 (1,046,103) Healthcare

– – 216 231 171 1,676 2,517 1,726 8,359 2,040 26,117 38,572 16,999 12,491 243,338 269,224 269,455 158,571 Fund (continued) Opportunities Greater China

– – 82 19 493 1,954 7,395 2,955 6,359 24,980 54,545 11,238 16,343 665,007 584,234 689,987 563,643 105,734 Global Resources Fund

– – 48 30 245 261 4,133 1,247 7,297 7,760 2,862 6,736 65,449 53,143 (expressed in United States Dollars) 356,553 421,711 422,002 273,082 Global for the year ended 30 June 2016 Property Fund

STATEMENT OF OPERATIONS The Notes to the Financial Statements form an integral part of these financial statements. Audit fees Directors fees and expenses (Note 3.8) Amortisation of formation expenses (Note 2.8) Bank charges Other expenses Net investment income/(deficit) Custodian fees (Note 3.3) Taxation (Note 4) Printing and publishing expenses Legal and other professional fees Expenses Management fees (Note 3.1) Administration fees (Note 3.3) Income Dividends (Note 2.3) Bond interest (Note 2.3) Deposit interest (Note 2.3) Other income

MANULIFE GLOBAL FUND 38 25 231 813 323 5,654 2,405 34,304 68,836 23,532 83,683 14,795 29,934 196,369 U.S. 4,567,275 2,444,536 7,011,811 6,927,872 2,067,571 Bond Fund

– – – 49 231 498 4,773 4,419 7,900 16,909 34,895 18,449 134,878 118,661 808,708 943,586 943,355 602,155 Turkey Equity Fund

– – – 65 231 432 6,439 1,557 14,007 11,398 40,624 35,054 14,536 242,872 608,709 851,581 851,350 484,597 Taiwan Equity Fund

231 299 794 7,783 9,638 6,336 2,777 1,264 24,104 11,738 82,534 22,077 779,699 159,471 610,654 1,422,465 2,202,164 2,042,163 Strategic (continued) Income Fund

– – – 234 231 9,747 1,370 43,975 28,642 28,532 43,171 166,276 184,790 Russia 2,015,284 2,056,529 4,071,813 4,071,582 1,549,792 Equity Fund

– – – 778 593 231 4,550 5,524 28,145 65,407 48,537 23,884 11,412 10,480 (expressed in United States Dollars) 856,762 Latin 1,027,927 1,056,072 1,055,841 America Equity Fund for the year ended 30 June 2016

STATEMENT OF OPERATIONS The Notes to the Financial Statements form an integral part of these financial statements. Net investment income/(deficit) Custodian fees (Note 3.3) Taxation (Note 4) Printing and publishing expenses Legal and other professional fees Audit fees Directors fees and expenses (Note 3.8) Amortisation of formation expenses (Note 2.8) Bank charges Other expenses Bond interest (Note 2.3) Deposit interest (Note 2.3) Other income Expenses Management fees (Note 3.1) Administration fees (Note 3.3) Income Dividends (Note 2.3)

39 MANULIFE GLOBAL FUND 3,617 27,201 49,449 32,870 339,535 309,675 122,205 921,038 593,510 3,459,054 1,700,268 2,655,276 47,925,247 62,592,202 17,619,678 58,013,123 80,337,702 22,324,579 30 June 2016 Combined for the year ended

– – – – 932 118 231 1,061 4,499 3,921 2,187 1,537 96,669 41,133 96,124 96,355 (55,702) 152,057 Inflation- Protected U.S. Treasury Securities Fund

– – 803 1,178 3,342 1,182 4,050 16,913 34,589 16,109 16,090 925,533 203,555 106,473 Fund 3,601,256 4,515,863 1,122,212 4,723,468 U.S. Special Opportunities

– – 1 400 231 2,887 5,906 4,594 1,369 1,350 47,251 16,552 12,363 534,241 323,325 441,569 323,093 (210,916) Equity Fund (continued) U.S. Small Cap

(expressed in United States Dollars) for the year ended 30 June 2016 STATEMENT OF OPERATIONS The Notes to the Financial Statements form an integral part of these financial statements. Expenses Management fees (Note 3.1) Administration fees (Note 3.3) Custodian fees (Note 3.3) Taxation (Note 4) Printing and publishing expenses Legal and other professional fees Audit fees Directors fees and expenses (Note 3.8) Amortisation of formation expenses (Note 2.8) Bank charges Other expenses Net investment income/(deficit) Income Dividends (Note 2.3) Bond interest (Note 2.3) Deposit interest (Note 2.3) Other income

MANULIFE GLOBAL FUND 40 – – 28

592 5,095 94,488 11,745 195,417 136,176 321,432 517,244 925,640 132,275 China 6,705,420 24,829,134 24,829,106 15,783,610 18,123,714 Value Fund

– 86

9,514 1,172 5,193 1,669 45,845 40,331 60,527 125,754 303,234 358,670 456,434 Asian 4,189,406 6,309,689 11,905,769 11,449,335 11,904,014 Small Cap Equity Fund

– 19

395 383 5,153 1,302 13,967 13,953 55,968 19,841 824,533 114,249 166,524 (316,965) Asian 2,541,046 2,858,011 1,642,126 2,540,644 Equity Fund

– – 27 19 199 111 6,132 1,648 2,988 8,796 10,351 53,764 49,726 655,619 306,647 655,600 215,230 440,389 Dividend Asia Value Equity Fund

– 19 147 3,642 1,140 8,948 8,469 2,559 14,189 62,008 22,108 23,899 122,809 933,795 666,436 3,940,836 3,938,258 3,007,041 Asia Total Return Fund

– – 19 316 9,386 2,713 1,005 24,465 43,055 39,370 24,965 111,934 237,815 (expressed in United States Dollars) 2,543,932 2,543,913 3,541,840 4,036,864 (1,492,932) American S tatement of O perations Growth Fund for the year ended 30 June 2015

The Notes to the Financial Statements form an integral part of these financial statements. Other expenses Bank charges Directors fees and expenses (Note 3.8) Amortisation of formation expenses (Note 2.8) Audit fees Legal and other professional fees Taxation (Note 4) Printing and publishing expenses Custodian fees (Note 3.3) Deposit interest (Note 2.3) Other income Bond interest (Note 2.3) Administration fees (Note 3.3) Income Dividends (Note 2.3) Expenses Management fees (Note 3.1) Net investment income/(deficit)

41 MANULIFE GLOBAL FUND – – 19 101 996 481 6,425 9,370 9,795 1,672 62,981 19,082 10,823 709,813 730,081 708,798 850,811 (140,998) Global Resources Fund

–

99 30 19 49 206 521 1,568 3,855 6,243 8,769 7,025 51,546 12,036 408,488 316,590 408,420 396,452 Global Property Fund

– 10 19 33 297 1,270 5,846 9,733 9,731 1,507 12,102 19,363 84,897 24,901 612,363 442,706 612,311 587,462 Global Contrarian Fund

– 19 1,586 1,225 1,649 1,206 6,218 10,978 20,196 18,914 48,594 29,998 140,116 762,805 2,615,056 1,573,220 2,613,388 1,852,251 European (continued) Growth Fund

– – 393 171 1,130 1,485 28,582 41,649 27,057 58,794 30,195 248,942 305,773 Fund 4,802,051 1,945,837 4,801,487 2,689,444 2,112,607 Emerging Eastern Europe

– – 7

19 598 1,362 26,813 23,279 19,680 21,063 63,309 13,458 145,324 (expressed in United States Dollars) 3,440,623 1,950,017 3,440,597 2,264,903 1,175,720 Dragon Growth Fund for the year ended 30 June 2015

S tatement of O perations The Notes to the Financial Statements form an integral part of these financial statements. Other expenses Bank charges Other income Deposit interest (Note 2.3) Amortisation of formation expenses (Note 2.8) Custodian fees (Note 3.3) Directors fees and expenses (Note 3.8) Audit fees Legal and other professional fees Printing and publishing expenses Taxation (Note 4) Administration fees (Note 3.3) Bond interest (Note 2.3) Net investment income/(deficit) Expenses Management fees (Note 3.1) Income Dividends (Note 2.3)

MANULIFE GLOBAL FUND 42 – – –

19

480 921 7,131 3,476 18,311 16,855 63,395 99,097 35,807 (13,800) Latin 1,384,313 1,615,967 1,615,986 1,629,786 America Equity Fund

– – 19 844 196 445 6,595 1,113 16,379 26,086 38,699 86,044 18,696 58,531 586,810 840,027 840,242 781,711 Japanese Growth Fund

– – 20 163 126 206 7,481 4,767 7,179 9,085 1,199 12,459 56,231 (7,472) 283,166 374,318 374,464 381,936 International Growth Fund*

– 19 89

612 107 2,127 5,963 18,481 25,280 102,503 297,040 160,949 India 3,219,716 2,177,512 2,177,638 7,359,457 3,526,697 (5,181,819) Equity Fund (continued)

– – – 19 202 2,433 6,297 21,842 27,576 19,642 26,313 121,874 172,498 Fund 3,903,943 3,124,404 3,124,423 4,302,620 (1,178,197) Healthcare

– – 19 110 161 3,228 1,326 2,009 5,177 1,326 18,010 23,052 36,161 161,467 422,330 422,349 (expressed in United States Dollars) 170,322 252,027 Fund for the year ended 30 June 2015 Opportunities Greater China

S tatement of O perations The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Other expenses Other income Deposit interest (Note 2.3) Bank charges Amortisation of formation expenses (Note 2.8) * Net investment income/(deficit) Directors fees and expenses (Note 3.8) Audit fees Legal and other professional fees Taxation (Note 4) Custodian fees (Note 3.3) Expenses Management fees (Note 3.1) Administration fees (Note 3.3) Bond interest (Note 2.3) Income Dividends (Note 2.3) Printing and publishing expenses

43 MANULIFE GLOBAL FUND – – 19 15 340 886 960 6,641 6,502 2,665 14,340 14,654 63,093 298,210 512,032 298,191 622,128 (323,918) Equity Fund U.S. Small Cap

– 21 231 1,674 1,134 6,953 33,529 26,144 68,146 12,709 18,826 99,853 194,600 U.S. 6,736,870 1,812,705 6,636,786 2,176,441 4,560,429 Bond Fund

– – –

100 541 154 3,796 5,329 37,154 10,639 21,962 48,264 969,506 166,556 823,171 969,406 (148,060) 1,117,566 Turkey Equity Fund

– – – –

19 384 6,891 7,212 2,594 36,313 16,351 51,883 46,520 906,670 589,828 906,651 757,976 148,694 Taiwan Equity Fund (continued)

39 884 962 4,542 7,219 5,825 16,212 15,610 32,660 16,250 25,971 135,153 853,144 283,495 3,919,194 3,634,776 1,113,548 2,805,646 Strategic Income Fund

– –

368 1,145 1,227 1,148 34,986 17,808 24,009 47,337 47,289 219,407 206,440 (expressed in United States Dollars) 4,492,393 1,775,302 4,490,880 Russia 2,374,953 2,117,440 Equity Fund for the year ended 30 June 2015

S tatement of O perations The Notes to the Financial Statements form an integral part of these financial statements. Legal and other professional fees Printing and publishing expenses Other income Audit fees Taxation (Note 4) Amortisation of formation expenses (Note 2.8) Bank charges Directors fees and expenses (Note 3.8) Custodian fees (Note 3.3) Administration fees (Note 3.3) Expenses Management fees (Note 3.1) Net investment income/(deficit)

Bond interest (Note 2.3) Deposit interest (Note 2.3) Income Dividends (Note 2.3) Other expenses

MANULIFE GLOBAL FUND 44

9,204 2,384 38,520 32,653 40,039 394,104 855,907 684,320 358,785 4,258,833 2,030,089 9,891,922 20,702,350 71,077,420 20,759,899 52,561,385 71,146,557 91,848,907 30 June 2015 Combined for the year ended

– – – – 19 128 393 1,046 2,969 4,924 5,124 4,944 39,973 133,119 137,492 133,138 (63,855) 196,993 Inflation- Protected U.S. Treasury Securities Fund

7 19 507 5,250 1,240 2,185 12,560 22,164 12,646 47,263 38,975 143,697 416,108 Fund 5,237,110 6,416,960 1,309,497 1,595,984 6,833,094 U.S. Special (continued) Opportunities

(expressed in United States Dollars) for the year ended 30 June 2015 S tatement of O perations The Notes to the Financial Statements form an integral part of these financial statements. Bank charges Other expenses Directors fees and expenses (Note 3.8) Amortisation of formation expenses (Note 2.8) Audit fees Legal and other professional fees Net investment income/(deficit) Bond interest (Note 2.3) Deposit interest (Note 2.3) Administration fees (Note 3.3) Income Dividends (Note 2.3) Expenses Management fees (Note 3.1) Custodian fees (Note 3.3) Taxation (Note 4) Printing and publishing expenses Other income

45 MANULIFE GLOBAL FUND

– – – – – – 1.2286 Class I ASEAN 6,143,124 5,000,000 Equity Fund*

– – – 0.9848 0.9994 619,199 618,858 Class I3 1,445,589 1,467,845

1.4430 1.4791 1.3706 Class I 8,450,967 5,856,714 8,068,798 7,501,077 5,472,976 11,934,820

– – – 1.4425 1.3471 50,000 72,126 67,357 50,000 Class HI

– – – 1.4133 1.3297 50,000 70,665 66,485 50,000 Class HC

American – – – Growth Fund 1.4251 1.3367 50,000 71,254 66,837 50,000 Class HA

– – – 1,870 2,556 39,815 29,580 (HKD) 10.4434** 10.5950** Class AA (expressed in United States Dollars)

STATISTICAL INFORMATION

for the year ended 30 June 2016 1.6518 1.7049 1.5907 Class AA 6,642,109 3,171,325 5,406,817 5,398,564 3,393,914 10,971,226

29.1481 30.0107 27.9298 Class A 7,316,629 6,888,537 8,152,264 213,265,950 206,729,561 227,691,017 The Notes to the Financial Statements form an integral part of these financial statements.

Refer to note 10 Expressed in Hong Kong Dollars Number of Shares in Issue Net Asset Value per share

2016 Total Net Assets Net Asset Value per share Number of Shares in Issue 2015 Total Net Assets 2014 Total Net Assets Number of Shares in Issue Net Asset Value per share

* **

MANULIFE GLOBAL FUND 46

– – – 0.9929 0.9822 Class J 49,167,079 48,819,844 42,414,799 41,660,995

– – – – – – 1.0775 547,552 589,983 Class I3

1.1119 1.1122 1.1628 Class I 29,501,724 32,802,908 35,052,756 38,984,697 40,103,194 34,489,028

– – – 0.9395 53,992 50,723 0.9783 51,248 52,387 Class HI

– – – 0.9384 52,660 49,417 0.9773 50,404 51,572 Class HC

– – – Asia Total Return Fund 0.9389 53,366 50,108 0.9778 50,851 52,004 Class HA

0.9575 0.9456 0.9845 11,728,405 11,230,076 11,986,972 11,334,974 17,406,184 17,136,020 Class AA Inc

– – – (expressed in United States Dollars) 6,967 9,002 55,363 70,956 9.9356** 10.0255** Class AA for the year ended 30 June 2016 (HKD) Inc

STATISTICAL INFORMATION (continued) – – – – – – 4,762 6,167 (HKD) 10.0484** Class AA

– – – The Notes to the Financial Statements form an integral part of these financial statements. 1.0088 73,527 74,172 0.9937 128,500 127,687 Class AA

Expressed in Hong Kong Dollars Net Asset Value per share Number of Shares in Issue 2016 Total Net Assets Net Asset Value per share Number of Shares in Issue 2015 Total Net Assets Number of Shares in Issue Net Asset Value per share 2014 Total Net Assets **

47 MANULIFE GLOBAL FUND

– – – – – – 0.9668 401,900 388,572 Class I3

1.2669 1.0622 1.2107 Class I 5,559,669 5,905,678 16,027,634 17,702,134 20,306,118 21,432,515

Asian

Equity Fund 1.0993 0.9216 1.0543 Class AA 7,125,242 3,980,079 3,778,917 7,833,086 4,196,246 3,482,689

3.4164 2.8666 3.2814 Class A 24,451,712 26,527,588 37,563,406 83,537,158 87,047,620 107,679,274

– – – (continued) 1.1325 0.8805 647,958 847,012 745,836 733,815

Class AA Inc

Dividend Asia Value Equity Fund 1.8544 1.5987 1.5078 Class AA 9,952,857 9,518,516 9,556,625 14,409,367 18,456,455 15,217,419

(expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Net Asset Value per share Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Number of Shares in Issue 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets

MANULIFE GLOBAL FUND 48 1.6773 1.3144 1.6801 Class I 122,771,419 143,253,663 161,370,545 240,279,079 244,081,853 145,275,273

– – – 50,232 1.4155 71,106 71,484 50,217 1.4235 Class HI

– – – 50,000 1.3893 69,464 70,427 50,000 1.4085 Class HC

Asian

Small Cap Equity Fund

– – – 50,027 1.4001 70,044 70,801 50,027 1.4152 Class HA (continued)

– – – 7.6509** 9.6801** 505,595 461,705 498,555 576,529 (HKD) Class AA

1.8784 2.3928 2.4009 Class AA 77,523,066 80,376,809 78,179,391 145,620,359 192,322,054 187,700,224 (expressed in United States Dollars)

for the year ended 30 June 2016 STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Hong Kong Dollars Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue ** 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets Number of Shares in Issue Net Asset Value per share

49 MANULIFE GLOBAL FUND

– – – 1.5252 1.2227 453,714 300,754 692,007 367,740 Class HI

– – – 1.4959 1.2088 50,000 50,000 74,793 60,439 Class HC

– – –

1.5047 1.2152 50,123 50,000 75,419 60,759 China Class HA Value Fund

3.0792 2.4798 2.2411 Class AA 8,640,678 9,107,332 7,614,528 26,606,731 22,584,500 17,064,876

9.8313 7.9159 7.1539 Class A 112,168,827 120,779,818 104,581,391 956,080,188 748,163,198 1,102,769,712

(expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION (continued) The Notes to the Financial Statements form an integral part of these financial statements. Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Net Asset Value per share Number of Shares in Issue 2015 Total Net Assets 2014 Total Net Assets 2016 Total Net Assets

MANULIFE GLOBAL FUND 50

– – – 0.8485 0.9768 415,114 405,503 Class I3 1,181,018 1,002,089

0.8746 1.0213 1.0928 Class I 3,572,835 4,718,603 3,124,914 4,818,944 5,954,310 6,507,067

European Growth Fund 0.6808 0.7966 0.8570 Class AA 6,432,922 7,731,749 4,379,818 6,159,168 7,954,667 6,816,800

9.3845 11.0119 11.8921 Class A 7,841,983 8,753,712 10,019,570 94,028,692 86,354,842 104,100,235

(continued) 1.3192 1.4313 2.0244 Class AA 3,048,860 3,175,020 4,022,179 4,544,530 3,357,458 6,796,919

Fund Emerging Eastern Europe 3.0336 3.3315 4.7186 Class A 31,127,597 31,554,087 94,429,374 34,555,028 105,121,041 163,051,965

(expressed in United States Dollars)

for the year ended 30 June 2016 8.3993** 9.2065** 11.0415** (HKD) Class AA 36,578,532 35,793,624 39,597,630 50,981,078 24,436,805 20,572,221

STATISTICAL INFORMATION

Dragon Growth Fund 1.7332 2.2818 1.8988 Class A 87,803,222 45,553,691 74,770,266 39,378,068 152,182,167 103,945,990 The Notes to the Financial Statements form an integral part of these financial statements.

Expressed in Hong Kong Dollars Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue

Net Asset Value per share 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets ** Number of Shares in Issue

51 MANULIFE GLOBAL FUND *** *** ***

877 834 1,149 8,745 1,196 0.9402 11,095 0.9836 1.0281 Class S

– – – 0.9779 0.9821 627,790 613,911 307,376 312,981 Class I3

1.1723 1.1420 50,000 57,098 53,986 51,342 1.0515 151,567 177,683 Class I2

– – –

1.0783 1.0484 50,000 50,057 52,480 53,915 Class HI Global Contrarian Fund

– – – 1.0641 1.0281 50,000 50,000 51,404 53,204 Class HC

– – – 1.0697 1.0367 50,000 50,000 51,834 53,487 Class HA (expressed in United States Dollars)

for the year ended 30 June 2016 0.9738 0.9496 0.8971 STATISTICAL INFORMATION (continued) Class AA 29,504,742 22,466,028 20,194,396 18,115,898 21,334,410 28,731,042

The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Singapore Dollars Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue *** Net Asset Value per share Number of Shares in Issue 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets

MANULIFE GLOBAL FUND 52

– – – – – – 0.9800 686,073 700,060 Class I3

2.3938 1.9318 2.1162 Class I Fund 6,351,712 5,520,136 5,359,805 15,204,915 11,342,362 10,663,973 Opportunities Greater China

2,591 2,585 1.1283 0.9047 1.0025 Class AA 2,817,049 2,496,826 1,679,048 1,855,831

– – – – – – 1.1649 193,834 166,400 Class I3

Global Resources Fund 0.7715 0.7872 1.0702 Class AA 33,715,806 43,700,128 53,363,088 49,863,076 41,613,625 52,865,876

(continued)

– – – – – – 1.0367 172,505 166,400 Class I3

– – – 29,200 24,155 40,697 32,347 9.3715** 9.7618** (HKD) Global Class AA Property Fund

(expressed in United States Dollars) 0.9978 1.0382 0.9817 for the year ended 30 June 2016 Class AA 16,752,887 16,789,166 19,043,197 19,398,507 15,040,567 15,614,431

STATISTICAL INFORMATION 1.1038 1.0286 1.0710 Class AA 4,912,996 4,450,975 3,992,264 3,727,711 2,920,385 3,004,001

Global Equity Fund* The Notes to the Financial Statements form an integral part of these financial statements. 4.8079 4.4900 4.6596 Class A 2,728,294 3,278,892 13,117,249 15,278,278 24,770,314 111,218,718

Refer to note 10 Expressed in Hong Kong Dollars 2016 Total Net Assets Number of Shares in Issue Net Asset Value per share 2015 Total Net Assets

2014 Total Net Assets Number of Shares in Issue

* ** Number of Shares in Issue Net Asset Value per share Net Asset Value per share

53 MANULIFE GLOBAL FUND

– – – 0.9844 0.9661 Class I2 10,931,666 11,893,449 10,560,722 11,708,129

India

Equity Fund 1.3977 1.3609 1.2619 Class AA 130,014,724 134,550,316 133,163,881 176,931,013 169,782,591 186,124,829

– – – – – – 1.0024 710,936 712,609

Class I3 Fund

Healthcare 1.8238 1.6893 1.9940 Class AA 90,581,975 171,697,123 147,944,325 313,145,641 294,997,637 153,019,678

(continued) (expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Net Asset Value per share Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Number of Shares in Issue 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets

MANULIFE GLOBAL FUND 54

0.4388 0.4494 0.6124 Russia Class AA 91,495,101 208,496,411 226,397,713 101,753,093 124,531,352 203,342,136 Equity Fund

0.7964 0.8679 1.1642 Latin Class AA America 65,349,108 69,129,647 52,040,783 59,999,330 86,421,450 100,610,210 Equity Fund

– – – 0.9278 1.0170 982,227 457,039 911,329 464,807 Class I3

0.8138 0.9080 0.8589 580,613 498,695 Class AA 2,697,596 4,131,004 2,195,211 3,751,106 Japanese Growth Fund

3.1651 3.5307 3.3530 Class A 9,790,905 12,054,744 11,156,304 38,154,132 34,568,619 37,406,665

(expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION (continued) The Notes to the Financial Statements form an integral part of these financial statements. Net Asset Value per share Number of Shares in Issue Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Net Asset Value per share 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets

55 MANULIFE GLOBAL FUND *** *** ***

0.9672 0.9238 0.9203 35,991,913 39,491,260 21,954,109 24,704,230 30,608,777 14,991,503 Class S Hedged

– – – – – – 1.1184 Class J 18,045,350 20,181,286

1.0162 1.1194 1.0182 Class I2 1,020,129 1,194,937 1,446,748 1,036,689 1,337,665 1,473,018

– – – 0.9471 0.9940 54,394 52,538 51,517 52,221 Class HI Strategic Income Fund

– – – 0.9463 0.9932 53,042 51,709 50,195 51,359 Class HC

– – – 0.9468 0.9936 53,753 52,146 50,895 51,814 Class HA (expressed in United States Dollars)

for the year ended 30 June 2016 1.0788 1.1392 1.0720 STATISTICAL INFORMATION (continued) Class AA 29,295,254 32,084,387 29,016,502 31,104,710 31,604,331 36,550,901

The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Singapore Dollars Net Asset Value per share Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Number of Shares in Issue 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets ***

MANULIFE GLOBAL FUND 56

0.6846 0.7915 0.9614 Class AA Turkey 48,722,318 51,547,433 53,285,512 33,356,651 40,801,352 51,227,603 Equity Fund

1.6567 1.7181 1.6146 Class AA Taiwan 17,414,956 18,809,293 24,591,265 28,851,474 32,315,901 39,705,731 Equity Fund

(continued) (expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Net Asset Value per share Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Number of Shares in Issue 2016 Total Net Assets 2015 Total Net Assets 2014 Total Net Assets

57 MANULIFE GLOBAL FUND

– – – 1.0368 0.9928 Class I3 1,539,310 1,550,545 5,110,561 4,928,955

1.0043 1.0376 1.0108 Class I 1,178,605 1,183,652 13,728,665 13,581,746 56,042,208 54,010,360

– – – 0.9761 53,495 52,218 52,378 55,357 0.9462 Class HI

– – – 0.9754 52,655 51,359 51,031 53,985 0.9453 Class HC

– – – 0.9758 53,101 51,814 51,744 54,711 0.9458 U.S. Class HA Bond Fund

– – – 0.9883 0.9859 477,637 483,312 1,906,962 1,934,170 Class AA Inc

– – – 93,651 9.8767** 9.8002** 118,392 190,470 149,629 Class AA (HKD) Inc (expressed in United States Dollars)

for the year ended 30 June 2016 – – – 9,779 12,479 56,779 43,239 9.8928** (HKD) 10.1886** Class AA STATISTICAL INFORMATION (continued)

1.2496 1.2082 1.2099 Class AA 114,307,087 130,515,588 108,027,842 142,835,090 133,616,157 110,439,037 The Notes to the Financial Statements form an integral part of these financial statements.

Expressed in Hong Kong Dollars Net Asset Value per share Number of Shares in Issue 2015 Total Net Assets 2014 Total Net Assets ** Number of Shares in Issue Net Asset Value per share 2016 Total Net Assets Number of Shares in Issue Net Asset Value per share

MANULIFE GLOBAL FUND 58

– – – – – – 1.0344 621,340 642,692 Class I3

– – – – – – 1.0720 Class I 671,106 719,417

– – – 1.2136 1.1721 50,000 50,000 60,680 58,607 Class HI

– – – Equity Fund U.S. Small Cap 1.1889 1.1569 50,000 50,000 59,446 57,847 Class HC

– – – (continued) 1.1988 1.1631 50,000 50,000 59,942 58,154 Class HA

1.1847 1.1414 1.1425 Class AA 23,304,506 22,041,489 28,028,764 27,607,859 25,158,388 32,022,767

(expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Net Asset Value per share Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Number of Shares in Issue 2015 Total Net Assets 2016 Total Net Assets 2014 Total Net Assets

59 MANULIFE GLOBAL FUND

– – – – – – Class I3 1.0426 416,000 433,711

– – – – – – 1.0374 156,914 162,782 Inflation- Protected Class AA Inc U.S. Treasury Securities Fund

1.3109 1.2832 1.3220 Class AA 5,891,009 6,530,561 7,722,415 8,379,924 9,838,985 13,007,109

Class T 0.9813 1.0460 1.2116 545,805 546,639 535,594 571,771 7,061,470 8,555,478

– – – – – – Class I3 1.0927 192,035 209,843

Class I 0.8906 0.9439 1.0126 892,138 Fund 1,001,710 5,451,939 5,146,079 1,963,173 1,987,893 U.S. Special Opportunities

(expressed in United States Dollars)

– – – for the year ended 30 June 2016 0.8615 0.9097 9,607,624 11,151,779 11,816,677 10,750,026 STATISTICAL INFORMATION (continued) Class AA Inc

0.8544 0.9151 1.0407 Class AA 69,899,251 76,064,369 59,720,093 69,607,012 120,673,150 125,582,908 The Notes to the Financial Statements form an integral part of these financial statements.

Net Asset Value per share Net Asset Value per share Number of Shares in Issue Number of Shares in Issue Net Asset Value per share Number of Shares in Issue 2014 Total Net Assets 2016 Total Net Assets 2015 Total Net Assets

MANULIFE GLOBAL FUND 60

– – – – – – – – – – – – – – – – – – – 1.0000 Class I ASEAN Equity Fund*

– – – – – – – – – – – – – – – – – 0.9430 1.0629 1.0206 Class I3

– – – – – – – – – – – – 1.2966 1.3386 1.5574 1.4884 1.1821 1.0268 1.3623 1.1391 Class I

– – – – – – – – – – – – – – – – – – 1.3239 1.0000 Class HI

– – – – – – – – – – – – – – – – – – 1.2914 1.0000

Class HC

American – – – – – – – – – – – – – – – – – – Growth Fund 1.3045 1.0000 Class HA

– – – – – – – – – – – – – – – – (HKD) 10.2978** 10.2508** 11.3552** 10.3684** Class AA (expressed in United States Dollars)

for the year ended 30 June 2016 – – – – 1.4757 1.4951 1.3114 1.0618 0.8904 0.9190 0.8197 1.8063 1.7558 1.5891 1.3522 1.1407 1.0766 0.9458 1.0000 0.5706 STATISTICAL INFORMATION (continued) Class AA

9.5537 25.4886 26.2794 22.7680 18.3175 14.6956 13.8594 12.1162 17.1141 17.2342 31.8278 30.9048 27.9010 23.6779 19.9163 19.0071 16.4352 18.1283 21.9915 21.8240 Class A The Notes to the Financial Statements form an integral part of these financial statements. Refer to note 10 Expressed in Hong Kong Dollars Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price 2016 Highest Subscription Price 2015 Highest Subscription Price

2014 Highest Subscription Price 2013 Highest Subscription Price 2012 Highest Subscription Price 2011 Highest Subscription Price 2010 Highest Subscription Price

2009 Highest Subscription Price

2008 Highest Subscription Price 2007 Highest Subscription Price

** *

61 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – 0.9382 0.9888 1.0000 0.9873 Class J

– – – – – – – – – – – – – – – – – – – 1.0766 Class 13

– – – – – – – – 1.0396 1.1122 1.1063 1.1578 1.1556 1.1907 1.0483 1.1720 1.0812 1.1531 1.1051 1.1723 Class I

– – – – – – – – – – – – – – – 0.9046 0.9330 0.9785 1.0301 0.9819 Class HI

– – – – – – – – – – – – – – – 0.9036 0.9323 0.9776 1.0294 0.9812 Class HC

– – – – – – – – – – – – – – – Asia Total Return Fund 0.9041 0.9327 0.9781 1.0297 0.9816 Class HA

– – – – – – – – 0.8973 0.9568 0.9410 0.9613 0.9857 1.0465 1.0143 0.9210 1.0052 0.9897 0.9426 0.9907 Inc**** Class AA

– – – – – – – – – – – – – – – – – (expressed in United States Dollars) 9.8882** 9.9618** 10.0935** Class AA for the year ended 30 June 2016 (HKD) Inc

STATISTICAL INFORMATION (continued) – – – – – – – – – – – – – – – – – – – (HKD) 10.0000** Class AA

– – – – – – – – – – – – – – – – The Notes to the Financial Statements form an integral part of these financial statements. 0.9562 0.9850 1.0032 0.9845 Class AA

Expressed in Hong Kong Dollars Previously Class AA until 15 June 2014 Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price 2016 Highest Subscription Price 2015 Highest Subscription Price 2014 Highest Subscription Price 2013 Highest Subscription Price 2012 Highest Subscription Price 2011 Highest Subscription Price 2010 Highest Subscription Price 2009 Highest Subscription Price 2008 Highest Subscription Price 2007 Highest Subscription Price ** **** Lowest Redemption Price

MANULIFE GLOBAL FUND 62 – – – – – – – – – – – – – –

1.0773 2.0279 1.7154 1.8472 2.0057 1.8472 Class I Fund Asian Opportunities

– – – – – – – – – – – – – – – –

0.9690 0.8415 0.7326 1.0000 Class I3

– – – – – – – – – –

1.1381 1.2669 0.9945 1.3312 1.0626 1.0628 1.0000 1.0986 1.2076 0.8606 Class I

Asian – –

Equity Fund 0.9620 1.1074 0.8254 1.1579 0.7980 1.0242 0.8064 1.0227 0.8172 0.7688 0.9828 1.0300 0.8752 1.0521 0.4087 0.7490 0.7098 0.7108 Class AA

(continued)

2.9856 3.4512 2.4544 3.5969 2.4731 1.8473 3.4168 2.7347 2.5510 3.1776 2.5482 2.3580 3.0591 3.2026 2.7242 3.2740 1.2741 2.2551 1.9091 2.2109 Class A

– – – – – – – – – – – – – – – –

1.1259 1.0816 0.8124 1.1545

Class AA Inc (expressed in United States Dollars) – – – – – –

Dividend Asia Value Equity Fund for the year ended 30 June 2016 1.5950 1.8544 1.3123 1.4613 1.2198 1.2040 1.5757 1.4585 1.4241 1.9117 1.6015 1.1227 0.9996 1.0742 Class AA STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Lowest Redemption Price 2016 Highest Subscription Price

Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price 2008 Highest Subscription Price 2007 Highest Subscription Price 2009 Highest Subscription Price 2011 Highest Subscription Price 2010 Highest Subscription Price Lowest Redemption Price 2013 Highest Subscription Price 2012 Highest Subscription Price Lowest Redemption Price 2015 Highest Subscription Price 2014 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price

63 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – – –

1.0000 0.9956 Class I3

– – – – – – – – – –

1.0902 1.0293 1.0619 1.5587 1.4430 1.7865 1.3844 1.6748 1.1740 1.7012 Class I

– – – – – – – – – – – – – – –

1.0000 1.3492 1.2627 1.0712 1.1770 Class HI

– – – – – – – – – – – – – – – – – –

1.0000 1.0554 Class HC Asian Small Cap Equity Fund

– – – – – – – – – – – – – – – –

1.0000 1.2597 1.1694 1.0629 Class HA

– – – – – – – – – – – – – – – –

8.8786** 9.8163** 7.3487** 10.3216** (HKD) Class AA

(expressed in United States Dollars)

for the year ended 30 June 2016 0.9956 0.5194 1.1241 0.8485 1.1687 1.4047 1.0840 1.5141 1.2816 1.2721 1.7656 1.7264 1.4389 2.2452 2.0659 2.5499 2.3941 2.4267 1.9656 1.6820 Class AA STATISTICAL INFORMATION (continued)

The Notes to the Financial Statements form an integral part of these financial statements. Expressed in Hong Kong Dollars Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price 2007 Highest Subscription Price ** 2009 Highest Subscription Price 2008 Highest Subscription Price 2010 Highest Subscription Price Lowest Redemption Price 2012 Highest Subscription Price 2011 Highest Subscription Price

Lowest Redemption Price 2013 Highest Subscription Price Lowest Redemption Price 2015 Highest Subscription Price 2014 Highest Subscription Price 2016 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price

MANULIFE GLOBAL FUND 64 – –

8.2703** 6.5642** 8.5777** 9.4859** 7.4322** 8.6692** 5.7135** 9.2425** 7.2295** 8.2824** 6.7111** 7.8152** 4.1564** 1.2359** 8.0251** 11.0415** 12.0750** 10.4704** Class AA (HKD)**** – – – – – – – – – – – – – – – – – –

9.2065 1.1879 Class AA Dragon Growth Fund

1.7078 1.3274 1.5090 2.2818 2.4947 1.1974 1.5323 1.7857 1.1757 1.9059 1.4552 1.7041 1.2325 1.6577 0.8192 2.2798 1.7618 1.9524 1.8809 1.5906 Class A

– – – – – – – – – – – – – – –

1.0000 1.0098 1.3084 1.1968 1.3281 Class HI

– – – – – – – – – – – – – – – – – – (continued)

1.0000 1.0475 Class HC

– – – – – – – – – – – – – – – –

1.2684 1.2649 1.0000 1.0536 Class HA China Value Fund

(expressed in United States Dollars)

for the year ended 30 June 2016 1.8654 3.0792 3.3637 1.4158 2.5526 2.1376 2.4875 2.6750 1.7401 2.8048 2.0125 2.2931 1.7777 2.0886 1.1179 2.9960 2.2461 2.0516 2.4798 2.0126 Class AA STATISTICAL INFORMATION

5.9286 9.8313 4.4921 8.1394 6.8227 7.9309 8.5414 5.5589 8.9501 6.4094 7.2943 5.6445 6.6416 3.5574 9.5102 7.1161 6.4645 7.9159 6.3948 10.7351 Class A The Notes to the Financial Statements form an integral part of these financial statements.

Expressed in Hong Kong Dollars Previously Class AA until 15 June 2014 Lowest Redemption Price

**** ** 2016 Highest Subscription Price 2015 Highest Subscription Price Lowest Redemption Price 2014 Highest Subscription Price Lowest Redemption Price 2013 Highest Subscription Price 2012 Highest Subscription Price Lowest Redemption Price 2011 Highest Subscription Price Lowest Redemption Price 2010 Highest Subscription Price Lowest Redemption Price 2009 Highest Subscription Price Lowest Redemption Price 2008 Highest Subscription Price 2007 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price

65 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – –

1.2491 1.6303 1.6008 Class J 1.5507 – – – – – – – – – – – – – – – –

1.0066 1.0000 0.7996 0.9271 Class I3

– – – – – – – – – – – – – –

1.1004 1.1165 0.9389 1.1026 0.8356 1.0436 Class I European Growth Fund

– – –

0.5844 0.5357 0.8531 1.0000 0.6320 0.7503 0.7428 0.7260 0.7304 0.8727 0.7194 0.8677 0.6456 0.8175 0.6715 0.5106 0.5504 Class AA

7.7090 7.1078 7.6911 9.6421 9.9646 8.5560 9.5608 4.7266 6.8327 10.4359 11.7579 14.1995 12.2815 14.7358 10.8135 10.4577 10.3359 12.1504 12.0637 11.3033 Class A

– – – – – – – – – – – – – – – –

a 0.9166 0.8737 1.0487 1.0065 Class AA Fund Markets Emerging Infrastructure

(expressed in United States Dollars)

for the year ended 30 June 2016 1.7964 2.3001 1.7302 1.7261 1.4977 1.6532 1.2345 1.0353 2.5509 2.2491 2.7685 3.1152 0.8169 2.6520 2.1559 2.4679 2.2639 2.0453 1.4401 1.3240

Class AA STATISTICAL INFORMATION (continued) Fund

Emerging

Eastern Europe 1.8719 5.3390 4.0164 4.0255 3.4927 3.8533 2.8718 2.3575 5.9244 5.2258 6.3929 7.1965 1.8869 6.1877 5.0224 5.7522 5.2725 4.7675 3.3523 2.8869 Class A The Notes to the Financial Statements form an integral part of these financial statements.

Liquidated on 28 June 2013

Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price 2007 Highest Subscription Price a 2010 Highest Subscription Price 2009 Highest Subscription Price 2008 Highest Subscription Price Lowest Redemption Price 2011 Highest Subscription Price 2013 Highest Subscription Price 2012 Highest Subscription Price 2014 Highest Subscription Price 2015 Highest Subscription Price 2016 Highest Subscription Price Lowest Redemption Price

MANULIFE GLOBAL FUND 66 – – –

1.1266 1.1341 1.0078 1.0730 0.9092 0.9205 0.7870 0.7997 0.8792 1.0000 0.7446 0.9438 0.7439 0.6851 0.7243 0.5349 0.5793

Class AA Global

Equity Fund* 4.8915 4.9464 4.2005 4.6753 3.7821 3.9935 4.4595 3.4180 3.5054 3.9244 4.5926 3.2066 4.0457 3.0982 3.4431 2.6765 2.6724 1.9458 3.7725 2.4670 Class A

*** *** *** *** *** *** – – – – – – – – – – – – – –

1.0571 1.0032 0.9574 1.0023 1.0387 0.9624 Class S – – – – – – – – – – – – – – – – –

1.3157 2.5265 2.0095 Class J – – – – – – – – – – – – – – – – –

1.0134 0.9918 0.9757 Class I3 – – – – – – – – – – –

(continued) 1.1633 1.0703 1.1292 1.0976 1.1243 1.1674 1.0702 1.0500 1.0105 Class I2 – – – – – – – – – – – – – –

0.6788 0.9504 1.0387 0.6786 0.7430 0.9522 Class I Global Contrarian Fund – – – – – – – – – – – – – – – –

1.0371 1.0056 1.0000 0.9416 Class HI (expressed in United States Dollars) for the year ended 30 June 2016 – – – – – – – – – – – – – – – – – –

1.0000 0.9225 STATISTICAL INFORMATION Class HC – – – – – – – – – – – – – – – – – –

1.0000 0.9319 Class HA The Notes to the Financial Statements form an integral part of these financial statements. – – –

0.9892 0.9712 0.9797 0.9253 1.1355 1.2343 0.9995 1.0000 0.9943 0.8140 0.8766 0.8076 0.7772 0.7179 0.8786 0.3902 0.6307 Class AA Refer to note 10 Expressed in Singapore Dollars 2015 Highest Subscription Price 2016 Highest Subscription Price 2014 Highest Subscription Price 2013 Highest Subscription Price 2007 Highest Subscription Price *** * 2012 Highest Subscription Price 2011 Highest Subscription Price 2009 Highest Subscription Price 2008 Highest Subscription Price 2010 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price

67 MANULIFE GLOBAL FUND – – – – – – – – – – – – – – – – –

1.0000 0.9451 0.8908 Class I3 Fund – – –

Healthcare 2.0489 1.0000 1.0763 1.0199 1.1571 1.1482 1.4474 1.6907 1.6355 2.0681 0.6806 0.7776 0.8552 0.8686 1.1110 1.3728 1.6474 Class AA – – – – – – – – – – – – – – – – –

1.0000 0.8662 0.7250 Class I3

– – – – –

2.5544 1.0967 1.7584 1.9945 1.6386 1.8206 2.1660 2.0778 2.1316 1.6059 1.8333 1.3489 1.7856 2.0663 1.8609 Class I Fund Opportunities Greater China – – – – – – – – – – – – – – –

1.2242 1.0000 1.1283 0.9586 0.7765 Class AA – – – – – – – – – – – – – – – – – – –

1.0000 Class I3

Global 1.0984 1.2442 1.6322 1.5785 1.1597 1.3971 1.3460 1.1026 0.8007 1.0856 0.7571 0.9684 1.0257 0.4852 0.8120 0.9729 0.9084 0.8806 0.8877 0.5265 Resources Fund Class AA – – – – – – – – – – – – – – – –

1.2333 1.5449 1.4907 1.6645 Class J (expressed in United States Dollars) for the year ended 30 June 2016 – – – – – – – – – – – – – – – – – – –

1.0000 Class I3

STATISTICAL INFORMATION (continued) – – – – – – – – – – – – – – – – – – Global

Property Fund (HKD) 9.4792** Class AA 10.0000** The Notes to the Financial Statements form an integral part of these financial statements.

1.0635 1.0932 0.8245 0.7320 0.8549 0.8503 1.0444 1.0413 1.0724 0.9917 0.9343 1.0147 0.8056 0.3266 0.4973 0.6283 0.6196 0.8304 0.8626 0.8686 Class AA Expressed in Hong Kong Dollars

** 2007 Highest Subscription Price 2008 Highest Subscription Price 2009 Highest Subscription Price 2010 Highest Subscription Price 2011 Highest Subscription Price 2012 Highest Subscription Price 2013 Highest Subscription Price 2016 Highest Subscription Price 2015 Highest Subscription Price 2014 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price

MANULIFE GLOBAL FUND 68

– –

Russia 0.3198 0.3105 0.4580 0.6287 0.5045 0.6954 0.6889 0.8656 0.9279 0.7650 1.0869 1.1536 0.4878 0.5659 0.5951 0.3757 0.2323 0.9408 Class AA Equity Fund Equity

Latin 0.5958 0.8281 0.8695 1.2570 0.9832 1.1824 1.2951 1.4237 1.4835 1.3508 1.4996 1.6539 1.2919 0.9448 0.9978 1.1659 0.8590 0.5237 1.0683 0.9509 Class AA America Equity Fund Equity

– – – – – – – – – – – – – – – –

Class I3 0.8845 1.0170 1.0047 1.0000

– –

0.7654 0.7655 0.9282 0.9278 0.8582 0.8797 0.7947 0.8296 0.7751 0.8564 1.0000 0.7509 0.6307 0.6284 0.6671 0.7045 0.6257 1.0074 Class AA Japanese Growth Fund (continued)

Class A 2.8139 2.9446 3.6101 3.6082 3.3514 3.4261 3.1068 3.2136 2.9737 3.5288 4.3493 4.5158 2.9293 2.3753 2.3619 2.5651 2.4905 1.8959 3.1821 3.8317 – – – – – – – – – – – – – – – –

Class I2 0.8628 0.9471 1.0317 1.0623

(expressed in United States Dollars) India

Equity Fund for the year ended 30 June 2016 1.1237 1.2369 1.4636 1.5498 1.2690 1.0965 1.2382 1.3613 1.1625 1.0579 1.7469 1.1140 0.7660 0.8849 0.8296 1.0809 0.8021 0.5086 0.9582 0.8545 Class AA STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Lowest Redemption Price Lowest Redemption Price 2016 Highest Subscription Price 2015 Highest Subscription Price 2014 Highest Subscription Price 2013 Highest Subscription Price 2012 Highest Subscription Price 2011 Highest Subscription Price 2010 Highest Subscription Price 2009 Highest Subscription Price 2008 Highest Subscription Price 2007 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price

69 MANULIFE GLOBAL FUND

*** *** *** *** *** *** *** *** – – – – – – – – – – – –

1.0227 0.9686 0.7054 0.9781 0.8278 0.9290 0.8957 0.7640 Class S Hedged – – – – – – – –

1.0000 1.1529 1.1071 1.0673 1.0809 1.0250 1.1113 1.1273 1.1368 1.0792 1.1400 1.0933 Class J – – – – – – – – – – –

1.1311 0.9892 0.9823 1.0277 1.0155 1.1017 1.0897 1.0982 1.0000 Class I2

– – – – – – – – – – – – – –

1.0578 0.9814 1.0332 1.0382 1.0304 1.0220 Class I

– – – – – – – – – – – – – – – (continued)

Strategic Income Fund 0.9509 0.9200 0.9916 0.9944 1.0239 Class HI

– – – – – – – – – – – – – – –

0.9503 0.9190 0.9911 0.9938 1.0231 Class HC

(expressed in United States Dollars) – – – – – – – – – – – – – – –

for the year ended 30 June 2016 0.9506 0.9196 0.9913 0.9941 1.0235 Class HA STATISTICAL INFORMATION

– – – – – –

1.0861 1.0306 1.1410 1.0624 0.9997 1.1442 1.0968 1.0641 1.0687 1.1759 1.1166 1.1648 1.1560 1.0353 Class AA The Notes to the Financial Statements form an integral part of these financial statements.

Expressed in Singapore Dollars Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price 2016 Highest Subscription Price Lowest Redemption Price 2007 Highest Subscription Price 2015 Highest Subscription Price Lowest Redemption Price 2009 Highest Subscription Price 2008 Highest Subscription Price Lowest Redemption Price *** 2014 Highest Subscription Price Lowest Redemption Price 2010 Highest Subscription Price Lowest Redemption Price 2013 Highest Subscription Price Lowest Redemption Price 2012 Highest Subscription Price 2011 Highest Subscription Price Lowest Redemption Price

MANULIFE GLOBAL FUND 70 – –

0.8149 0.5828 1.0425 0.7269 1.0322 0.7207 1.2442 0.8228 0.9689 0.6427 1.1676 0.7846 0.8891 0.5164 0.8194 0.2686 1.0891 0.6258 Class AA Turkey Equity Fund

1.7276 1.7649 1.5992 1.4280 1.4107 1.3930 1.0995 1.0400 1.2415 1.1341 0.9587 1.3478 1.4524 1.3207 1.1502 1.0375 0.9508 0.8533 0.5089 0.9651 Class AA Taiwan Equity Fund

(expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION (continued) The Notes to the Financial Statements form an integral part of these financial statements.

Lowest Redemption Price 2016 Highest Subscription Price 2015 Highest Subscription Price 2014 Highest Subscription Price 2013 Highest Subscription Price 2012 Highest Subscription Price 2011 Highest Subscription Price 2010 Highest Subscription Price 2009 Highest Subscription Price 2008 Highest Subscription Price 2007 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price

71 MANULIFE GLOBAL FUND

– – – – – – – – – – – – – – – – – –

1.0368 1.0000 Class I3

– – – – – – – – – – – – – – –

1.0000 1.0222 1.0293 0.9928 1.0020 Class I – – – – – – – – – – – – – – –

0.9752 1.0084 0.9437 0.9733 0.9217 Class HI

– – – – – – – – – – – – – – –

0.9743 1.0077 0.9431 0.9727 0.9207 Class HC

– – – – – – – – – – – – – – –

0.9748 1.0081 0.9434 0.9730 0.9212 U.S. Class HA Bond Fund

– – – – – – – – – – – – – – – –

0.9867 1.0129 0.9600 1.0006 Class AA Inc

– – – – – – – – – – – – – – – – –

9.8303** 9.9177** 10.0495** Class AA (HKD) Inc (expressed in United States Dollars)

for the year ended 30 June 2016 – – – – – – – – – – – – – – – –

9.8821** 9.8803** (HKD) 10.1436** 10.0274** Class AA STATISTICAL INFORMATION (continued)

1.0106 0.9722 1.0720 1.2053 1.0430 0.9309 1.1684 1.0641 1.2222 1.1575 1.1972 1.2656 1.2901 1.2419 1.2347 1.1724 1.2155 1.2605 1.1550 1.1993 Class AA The Notes to the Financial Statements form an integral part of these financial statements.

Expressed in Hong Kong Dollars Lowest Redemption Price Lowest Redemption Price 2008 Highest Subscription Price 2007 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price 2010 Highest Subscription Price 2009 Highest Subscription Price ** 2011 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price 2014 Highest Subscription Price 2013 Highest Subscription Price 2012 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price 2016 Highest Subscription Price 2015 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price

MANULIFE GLOBAL FUND 72 – – – – – – – – – – – – – – – –

0.9919 0.8725 1.0336 1.0379 Class I3 – – – – – – – – – – – – – – – –

1.0381 1.0686 0.9893 1.0571 Class I – – – – – – – – – – – – – – – – – –

1.0191 1.0000 Class HI

– – – – – – – – – – – – – – – – – –

Equity Fund U.S. Small Cap 0.9940 1.0000 Class HC

– – – – – – – – – – – – – – – – – – (continued)

1.0041 1.0000 Class HA

0.8468 0.6518 0.7956 0.6046 0.4176 0.9115 0.9959 0.9718 0.9478 1.1994 1.2098 1.1717 0.9950 1.1199 1.1511 1.0288 0.9488 1.0211 1.2174 1.0122 Class AA

(expressed in United States Dollars) for the year ended 30 June 2016 STATISTICAL INFORMATION The Notes to the Financial Statements form an integral part of these financial statements. Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price 2016 Highest Subscription Price 2015 Highest Subscription Price 2014 Highest Subscription Price 2013 Highest Subscription Price 2012 Highest Subscription Price 2011 Highest Subscription Price 2010 Highest Subscription Price 2009 Highest Subscription Price Lowest Redemption Price 2008 Highest Subscription Price 2007 Highest Subscription Price

73 MANULIFE GLOBAL FUND

– – – – – – – – – – – – – – –

1.0000 0.8881 0.8488 0.9520 1.0687 Class J Fund U.S.Value – – – – – – – – – – – – – – – – – – –

1.0000 Class I3 – – – – – – – – – – – – – – – – – – –

Inc 1.0213 Class AA Inflation- Protected U.S. Treasury Securities Fund

1.0315 1.1634 1.1663 1.1833 1.2573 1.3852 1.4119 1.3224 1.3307 1.3099 1.0025 1.0175 0.9777 1.0843 1.1701 1.2464 1.2588 1.2522 1.2685 1.2446 Class AA – – – – – – – – – – –

1.0000 1.1919 1.2117 1.2137 1.0478 1.0701 1.1311 1.0529 0.9102 Class T – – – – – – – – – – – – – – –

1.0896 1.2455 1.6677 1.2404 1.4841 Class J – – – – – – – – – – – – – – – – – – –

1.0940 Class I3

– – – – – – – – – – – – – – –

1.0021 1.0126 0.9458 0.9370 0.8368 Class I Fund (expressed in United States Dollars) U.S. Special Opportunities for the year ended 30 June 2016 – – – – – – – – – – – – – – – –

Inc 1.0010 0.9097 0.9157 0.7913 STATISTICAL INFORMATION (continued) Class AA – – – – – – – – – – – – – – – – – –

(HKD) 9.5989** Class AA 10.0000** The Notes to the Financial Statements form an integral part of these financial statements.

1.0210 1.0147 0.8096 0.9410 1.0661 1.0032 1.0201 1.0408 1.0425 0.9184 1.0039 0.7761 0.4193 0.5975 0.8502 0.7076 0.8578 0.9672 0.8807 0.7638 Class AA Expressed in Hong Kong Dollars **

2007 Highest Subscription Price

2008 Highest Subscription Price 2009 Highest Subscription Price 2010 Highest Subscription Price 2011 Highest Subscription Price 2012 Highest Subscription Price 2013 Highest Subscription Price 2014 Highest Subscription Price 2015 Highest Subscription Price 2016 Highest Subscription Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price Lowest Redemption Price

MANULIFE GLOBAL FUND 74

0.00% 1.01% 3.54% 3.99% 0.00% 3.69% 0.00% 0.85% 7.99% 0.00% 6.44% 4.37% 2015 97.22% 20.35% 31.61% 13.38% 30 June

Dividend Asia Value Equity Fund 0.00% 0.00% 1.15% 2.89% 0.00% 8.93% 0.00% 0.00% 4.35% 0.00% 4.44% 6.48% 2016 98.90% 15.88% 33.23% 21.55% 30 June

0.00% 6.26% 4.33% 2.77% 2.81% 0.00% 8.02% 0.00% 7.19% 0.00% 0.27% 0.88% 1.92% 2015 92.57% 31.40% 26.72% 30 June

Asia Total Return Fund 0.00% 3.59% 5.34% 4.15% 4.88% 0.00% 6.10% 0.00% 6.69% 0.00% 0.00% 2.13% 2.26% 2016 94.55% 28.36% 31.05% 30 June

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2015 30 June

ASEAN

Equity Fund* 0.00% 2.11% 5.02% 0.00% 2.19% 0.00% 2.19% 7.13% 0.00% 0.00% 6.30% 2016 96.51% 13.79% 11.51% 28.67% 17.60% 30 June

0.00% 0.00% 3.02% 0.00% 8.87% 0.00% 7.98% 4.19% 1.53% 0.00% 0.00% 2015 98.92% 17.71% 16.46% 25.80% 13.36% 30 June

American as at 30 June 2016 and 2015 Growth Fund 0.00% 0.00% 5.02% 0.00% 6.66% 0.00% 9.57% 8.57% 1.91% 0.00% 0.00% 2016 97.07% 15.73% 13.40% 24.66% 11.55% 30 June INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE NET ASSET VALUE (UNAUDITED) Refer to note 10 * Total Securities Asset backed and mortgage securities Basic materials Communications Consumer, cyclical Consumer, Non-cyclical Education Energy Financials Funds Healthcare Industrials Real Estate Supranationals, governments and local public authorities Technology Utilities

75 MANULIFE GLOBAL FUND

0.00% 0.83% 6.17% 0.92% 0.00% 5.30% 0.00% 2.13% 1.95% 0.00% 3.95% 3.52% 2015 96.77% 15.90% 39.29% 16.81% 30 June

Dragon Growth Fund 0.00% 1.76% 8.67% 2.93% 0.00% 6.73% 0.00% 3.25% 2.33% 2.05% 0.00% 2.09% 2016 99.19% 25.79% 27.96% 15.63% 30 June

0.00% 8.38% 0.45% 8.74% 0.53% 0.00% 7.05% 0.00% 4.27% 3.80% 6.89% 0.00% 9.52% 2015 97.97% 35.85% 12.49% 30 June

China

Value Fund 0.00% 1.09% 6.82% 1.55% 0.00% 5.88% 0.00% 3.72% 0.38% 9.59% 0.00% 5.50% 2016 92.58% 13.95% 30.83% 13.27% 30 June

0.00% 7.16% 5.43% 2.67% 0.00% 1.07% 7.45% 0.00% 0.00% 7.09% 0.00% 0.67% 2015 91.22% 20.17% 13.34% 26.17%

30 June

Asian

Small Cap Equity Fund 0.00% 9.87% 5.99% 3.45% 0.00% 0.77% 6.77% 0.00% 5.22% 3.26% 0.00% 3.94% 2016 23.10% 26.82% 11.42% 30 June 100.61%

0.00% 3.62% 6.83% 3.25% 0.00% 0.00% 0.00% 5.99% 0.58% 0.00% 1.53% 9.63% 2015 96.12% 14.98% 28.99% 20.72% 30 June

Asian

as at 30 June 2016 and 2015 Equity Fund 0.00% 1.90% 5.15% 0.00% 0.00% 9.70% 0.00% 0.00% 0.00% 2.65% 2016 98.37% 14.11% 15.80% 12.34% 19.22% 17.50% 30 June Total Securities INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE NET ASSET VALUE (UNAUDITED) (continued) Asset backed and mortgage securities Basic materials Communications Consumer, cyclical Consumer, Non-cyclical Education Energy Financials Funds Healthcare Industrials Real Estate Supranationals, governments and local public authorities Technology Utilities

MANULIFE GLOBAL FUND 76

0.00% 5.80% 6.51% 8.84% 0.00% 5.15% 0.00% 9.53% 1.48% 0.00% 2.72% 2015

96.96% 14.45% 15.95% 14.73% 11.80% 30 June

Global

Equity Fund* 0.00% 0.96% 8.13% 8.07% 0.00% 2.54% 0.00% 0.00% 0.00% 9.78% 0.00% 2016 98.66% 20.40% 20.99% 12.90% 14.89% 30 June

0.00% 1.06% 9.01% 0.00% 3.88% 0.00% 0.00% 0.00% 7.51% 0.00% 2015

99.08% 10.73% 19.31% 16.57% 14.11% 16.90% 30 June

Global

Contrarian Fund 0.00% 0.89% 7.97% 8.12% 0.00% 2.54% 0.00% 0.00% 0.00% 9.66% 0.00% 2016 98.07% 20.16% 20.88% 12.98% 14.87% 30 June

0.00% 9.32% 9.64% 0.00% 5.76% 0.00% 9.72% 0.00% 0.00% 5.45% 0.30% 2015 99.23% 10.70% 10.27% 21.75% 16.32% 30 June

European Growth Fund 0.00% 6.53% 5.67% 5.73% 0.00% 7.19% 0.00% 0.00% 0.00% 4.41% 0.00% 2016 96.79% 17.24% 16.03% 19.59% 14.40% 30 June

0.00% 6.17% 5.97% 6.99% 0.00% 1.12% 0.00% 6.00% 0.00% 0.00% 0.00% 2.04% 2015 97.23% 11.46% 27.70% 29.78% 30 June

Fund

Emerging as at 30 June 2016 and 2015 Eastern Europe 0.00% 8.97% 1.81% 7.28% 0.00% 1.91% 0.00% 5.22% 0.00% 0.00% 1.94% 2.08% 2016 98.09% 11.94% 24.33% 32.61% 30 June Refer to note 10 INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE NET ASSET VALUE (UNAUDITED) (continued) Total Securities * Asset backed and mortgage securities Basic materials Communications Consumer, cyclical Consumer, Non-cyclical Education Energy Financials Funds Healthcare Industrials Real Estate Supranationals, governments and local public authorities Technology Utilities

77 MANULIFE GLOBAL FUND

0.00% 0.00% 0.00% 3.21% 0.00% 0.00% 0.00% 0.00% 0.00% 0.62% 0.00% 0.00% 0.00% 0.00% 2015 99.77% 95.94% 30 June

Fund

Healthcare 0.00% 0.00% 0.00% 2.47% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2016 99.50% 97.03% 30 June

0.00% 1.79% 6.48% 1.28% 0.00% 3.87% 0.00% 2.40% 0.66% 0.00% 3.31% 2015 98.83% 13.63% 34.25% 11.64% 19.52% 30 June

Fund

Opportunities Greater China 0.00% 2.35% 8.46% 1.99% 0.00% 4.04% 0.00% 5.43% 1.94% 0.00% 0.81% 2016 97.94% 20.44% 25.81% 11.88% 14.79% 30 June

0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.24% 2015

57.88% 41.25% 30 June 100.37%

Global

Resources Fund 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2016 94.88% 58.17% 36.71% 30 June

0.00% 0.00% 0.00% 3.62% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.74% 2015

98.25% 23.75% 69.14% 30 June

Global

as at 30 June 2016 and 2015 Property Fund 0.00% 0.00% 0.00% 2.86% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2016 95.81% 17.02% 75.93% 30 June INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE NET ASSET VALUE (UNAUDITED) (continued) Total Securities Asset backed and mortgage securities Basic materials Communications Consumer, cyclical Consumer, Non-cyclical Education Energy Financials Funds Healthcare Real Estate Supranationals, governments and local public authorities Technology Utilities Industrials

MANULIFE GLOBAL FUND 78

0.00% 9.36% 3.31% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.41% 2015 97.98% 13.50% 12.47% 41.60% 13.33%

30 June

Russia

Equity Fund 0.00% 7.16% 4.30% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 4.52% 2016 98.47% 20.39% 11.32% 34.67% 16.11% 30 June

0.00% 6.95% 5.22% 0.00% 1.70% 0.00% 0.00% 5.70% 0.00% 3.40% 2.04%

2015 99.20% 13.66% 11.15% 29.96% 19.42% 30 June

Latin

America Equity Fund 0.00% 4.79% 3.08% 0.00% 0.00% 0.00% 1.06% 3.49% 0.00% 2.73% 3.49% 2016 99.80% 11.56% 13.80% 37.37% 18.43% 30 June

0.00% 8.78% 5.17% 0.00% 3.33% 0.00% 4.65% 1.28% 0.00% 0.00% 0.00% 2015 99.95% 12.03% 11.99% 25.84% 26.88% 30 June

Japanese Growth Fund 0.00% 7.60% 0.00% 0.12% 0.00% 6.60% 0.00% 0.00% 4.10% 1.42% 2016 97.62% 10.90% 14.19% 11.20% 22.77% 18.72% 30 June

0.00% 2.14% 7.67% 0.00% 0.00% 9.11% 0.00% 8.16% 0.00% 0.00% 0.77% 2015 98.90% 11.76% 23.33% 17.25% 18.71% 30 June

India

as at 30 June 2016 and 2015 Equity Fund 0.00% 1.40% 2.79% 0.00% 8.11% 0.00% 8.33% 9.54% 0.00% 0.00% 2.77% 2016 97.71% 14.43% 11.00% 25.77% 13.57% 30 June INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE NET ASSET VALUE (UNAUDITED) (continued) Total Securities Asset backed and mortgage securities Basic materials Consumer, cyclical Consumer, Non-cyclical Communications Education Energy Financials Funds Healthcare Industrials Real Estate Supranationals, governments and local public authorities Technology Utilities

79 MANULIFE GLOBAL FUND

1.60% 2.84% 6.66% 1.61% 0.00% 4.23% 0.00% 1.78% 3.31% 0.78% 1.09% 1.45% 2015 96.34% 41.39% 17.32% 12.28% 30 June

U.S.

Bond Fund 0.75% 2.60% 3.79% 5.87% 0.00% 2.20% 0.00% 2.90% 2.76% 0.23% 3.06% 1.25% 2016 97.35% 34.26% 16.60% 21.08% 30 June

0.00% 4.36% 8.61% 3.54% 0.00% 3.09% 0.00% 0.00% 6.07% 0.00% 0.00% 2.12% 2015

99.40% 10.87% 38.59% 22.15% 30 June

Turkey

Equity Fund 0.00% 0.00% 3.40% 0.00% 6.65% 0.00% 0.00% 7.69% 0.00% 0.00% 0.00% 2016 97.53% 12.11% 10.74% 36.23% 20.71% 30 June

0.00% 2.81% 4.97% 2.34% 0.00% 0.00% 0.00% 1.56% 0.00% 0.00% 0.00% 2015

96.64% 11.10% 15.70% 29.58% 28.58% 30 June

Taiwan

Equity Fund 0.00% 6.51% 4.47% 7.93% 1.81% 0.00% 1.98% 5.62% 0.00% 9.45% 0.00% 0.00% 0.00% 2016 99.06% 35.58% 25.71% 30 June

9.14% 0.55% 8.16% 6.14% 3.73% 0.00% 1.33% 0.00% 5.19% 0.30% 9.81% 4.49% 2.37% 2015 18.51% 30.80% 30 June 100.52%

Strategic as at 30 June 2016 and 2015 Income Fund 0.70% 5.29% 5.86% 4.20% 1.05% 0.79% 0.00% 4.66% 0.00% 3.00% 1.98% 2016 97.40% 11.68% 16.10% 10.73% 31.36% 30 June INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE NET ASSET VALUE (UNAUDITED) (continued) Total Securities Asset backed and mortgage securities Basic materials Communications Consumer, cyclical Consumer, Non-cyclical Education Energy Financials Funds Healthcare Industrials Real Estate Supranationals, governments and local public authorities Utilities Technology

MANULIFE GLOBAL FUND 80

0.91% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2015 99.79% 98.88% 30 June

Inflation- Protected U.S. Treasury Securities Fund 0.73% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 2016 98.04% 97.31% 30 June

0.00% 0.63% 4.02% 5.10% 0.00% 9.45% 0.00% 8.57% 9.38% 0.00% 2.68% 3.06% 2015 92.14% 14.64% 14.59% 20.02% 30 June

Fund

U.S. Special Opportunities 0.00% 0.49% 5.34% 5.29% 0.00% 6.86% 0.00% 8.71% 9.15% 0.00% 5.88% 3.79% 2016 92.86% 16.75% 14.46% 16.14% 30 June

0.00% 5.91% 4.56% 3.06% 7.26% 0.00% 1.71% 0.00% 0.00% 1.69% 2015 98.60% 17.90% 14.29% 17.04% 11.78% 13.40% 30 June

Equity Fund U.S. Small Cap 0.00% 2.26% 1.58% 6.35% 0.00% 1.36% 0.00% 0.00% 2.73% 2016 95.87% 16.88% 10.95% 15.48% 13.03% 11.72% 13.53% 30 June as at 30 June 2016 and 2015 INDUSTRIAL COMPOSITION OF PORTFOLIOS AS A PERCENTAGE NET ASSET VALUE (UNAUDITED) (continued) Total Securities Asset backed and mortgage securities Basic materials Communications Consumer, cyclical Consumer, Non-cyclical Education Energy Financials Funds Healthcare Industrials Real Estate Supranationals, governments and local public authorities Technology Utilities

81 MANULIFE GLOBAL FUND

– – – – – 2,611 USD 2015

30 June 18,653,345 18,655,956

Dividend – – – – – Asia Value Equity Fund 8,714 USD 2016 30 June 14,979,809 14,988,523

– – – – – USD 2015 30 June 23,876,809 61,590,132 85,466,941

– – – – – Asia Total Return Fund USD 2016 30 June 28,303,827 60,129,518 88,433,345

– – – – – – – – USD 2015 30 June

ASEAN

– – – – – – Equity Fund* USD 2016 30 June 5,928,644 5,928,644

– – – – – – as at 30 June 2016 and 2015 USD 2015

30 June 222,478,498 222,478,498

– – – – – – American Growth Fund USD 2016 30 June 227,322,720 227,322,720

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) Refer to note 10 Local Public Authorities, Debt Instruments Warrants Equity Bonds – convertibles Equities Mortgage and Asset Backed Securities Rights Supranationals, Governments and Bonds Total Portfolio of Investments *

MANULIFE GLOBAL FUND 82

– – – – – – USD 2015

30 June 149,916,065 149,916,065

Dragon – – – – – – Growth Fund USD 2016 30 June 190,219,162 190,219,162

– – – – – – USD 2015 30 June

1,107,235,365 1,107,235,365

China

– – – – – – Value Fund USD 2016 30 June 708,459,206 708,459,206

– – – – – – USD 2015 30 June

395,357,614 395,357,614

Asian

– – – – – – Small Cap Equity Fund USD 2016 30 June 309,367,410 309,367,410

– – – – – – as at 30 June 2016 and 2015 USD 2015 30 June

107,718,638 107,718,638

Asian

– – – – – – Equity Fund USD 2016 30 June 115,154,602 115,154,602

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) Local Public Authorities, Debt Instruments Warrants Equity Rights Supranationals, Governments and Mortgage and Asset Backed Securities Bonds – convertibles Equities Bonds Total Portfolio of Investments

83 MANULIFE GLOBAL FUND

– – – – – – USD 2015 30 June

17,482,411 17,482,411

Global

– – – – – – Equity Fund* USD 2016 30 June 112,693,055 112,693,055

– – – – – – USD 2015 30 June

21,958,324 21,958,324

Global

– – – – – – Contrarian Fund USD 2016 30 June 18,121,579 18,121,579

– – – – – – USD 2015

30 June 96,988,294 96,988,294

– – – – – European Growth Fund 65,343 USD 2016 30 June 99,176,286 99,241,629

– – – – – – as at 30 June 2016 and 2015 USD 2015

30 June 106,629,064 106,629,064

Fund

– – – – – – Emerging Eastern Europe USD 2016 30 June 96,571,934 96,571,934

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) Refer to note 10 Local Public Authorities, Debt Instruments Warrants Equity Bonds – convertibles Equities Mortgage and Asset Backed Securities Rights Supranationals, Governments and Bonds Total Portfolio of Investments *

MANULIFE GLOBAL FUND 84

– – – – – –

USD 2015 30 June 295,022,749 295,022,749

Fund

– – – – – – Healthcare USD 2016 30 June 311,581,887 311,581,887

– – – – – –

USD 2015 30 June 18,489,034 18,489,034

Fund

– – – – – – Opportunities Greater China USD 2016 30 June 12,089,289 12,089,289

– – – – – – USD 2015 30 June

33,842,038 33,842,038

Global

– – – – – – Resources Fund USD 2016 30 June 39,666,200 39,666,200

– – – – – as at 30 June 2016 and 2015 10,367 USD 2015 30 June

16,477,466 16,487,833

Global

– – – – – – Property Fund USD 2016 30 June 15,164,652 15,164,652

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) Local Public Authorities, Debt Instruments Warrants Equity Total Portfolio of Investments Bonds – convertibles Equities Mortgage and Asset Backed Securities Rights Supranationals, Governments and Bonds

85 MANULIFE GLOBAL FUND

– – – – – – USD 2015 30 June

99,704,052 99,704,052

Russia

– – – – – – Equity Fund USD 2016 30 June 90,092,021 90,092,021

– – – – – – USD 2015

30 June

59,516,413 59,516,413

Latin

America – – – – – – Equity Fund USD 2016 30 June 51,937,244 51,937,244

– – – – – – USD 2015

30 June 38,764,912 38,764,912

Japanese – – – – – – Growth Fund USD 2016 30 June 40,279,351 40,279,351

– – – – – – as at 30 June 2016 and 2015 USD 2015 30 June

195,661,137 195,661,137

India

– – – – – – Equity Fund USD 2016 30 June 183,194,395 183,194,395

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) Local Public Authorities, Debt Instruments Warrants Equity Mortgage and Asset Backed Securities Rights Supranationals, Governments and Bonds – convertibles Equities Bonds Total Portfolio of Investments

MANULIFE GLOBAL FUND 86

– – USD 2015 263,268 30 June 1,698,502 18,110,172 61,243,922 61,246,741

142,562,605

U.S.

– – Bond Fund USD 2016 264,431 30 June 1,280,805 40,725,334 71,246,217 76,793,297 190,310,084

– – – – – – USD 2015 30 June

40,558,480 40,558,480

Turkey

– – – – – – Equity Fund USD 2016 30 June 32,532,420 32,532,420

– – – – – – USD 2015

30 June 31,229,056 31,229,056

Taiwan

– – – – – – Equity Fund USD 2016 30 June 28,581,635 28,581,635

– – as at 30 June 2016 and 2015 USD 2015 297,236

30 June 5,018,223 5,254,230 17,336,020 29,893,667 57,799,376

Strategic – – Income Fund USD 2016 230,836 30 June 2,974,988 6,077,997 14,532,445 22,514,019 46,330,285

STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) Local Public Authorities, Debt Instruments Warrants Equity Rights Supranationals, Governments and Bonds – convertibles Equities Mortgage and Asset Backed Securities Bonds

Total Portfolio of Investments

87 MANULIFE GLOBAL FUND

– – – – – 75,879 USD

2015 30 June 8,286,202 8,362,081

– – – – – Inflation- Protected U.S. Treasury Securities Fund 60,518 USD 2016 30 June 8,094,931 8,155,449

– – – –

USD 2015 30 June 2,155,794 3,954,647 73,198,220 79,308,661

Fund

– – – – U.S. Special Opportunities USD 2016 368,640 30 June 2,374,364 63,154,045 65,897,049

– – – – – – USD 2015 30 June 28,032,789 28,032,789

– – – – – – Equity Fund U.S. Small Cap USD 2016 30 June 24,118,920 24,118,920

as at 30 June 2016 and 2015 STATEMENT OF MOVEMENTS IN PORTFOLIO HOLDINGS (UNAUDITED) (continued) Local Public Authorities, Debt Instruments Warrants Equity Total Portfolio of Investments Bonds – convertibles Equities Mortgage and Asset Backed Securities Rights Supranationals, Governments and Bonds

MANULIFE GLOBAL FUND 88 AMERICAN GROWTH FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Curacao 77,622 Schlumberger Limited 6,033,909 6,084,012 2.60

6,033,909 6,084,012 2.60 Ireland 54,181 Medtronic Inc. 2,353,769 4,652,252 1.99

2,353,769 4,652,252 1.99 Switzerland 42,880 Novartis AG – ADR 2,798,193 3,486,573 1.49

2,798,193 3,486,573 1.49 United Kingdom 29,114 Diageo plc – ADR 2,427,496 3,211,274 1.37

2,427,496 3,211,274 1.37 United States 8,897 Alphabet Inc. – A 3,326,657 6,191,333 2.65 4,696 Alphabet Inc. – C 1,750,240 3,216,150 1.37 22,793 Amazon.Com Inc. 6,787,484 16,255,283 6.93 39,172 American Express Company 2,242,017 2,309,581 0.99 121,625 American International Group Inc. 5,621,938 6,275,850 2.68 39,848 American Tower Corp. 3,760,721 4,468,156 1.91 37,537 Amgen Inc. 4,102,407 5,629,799 2.40 1,370 Apache Corp. 126,727 75,994 0.03 132,279 Apple Computer Company 11,777,525 12,503,011 5.34 736,830 Bank of America Corp. 9,027,502 9,711,419 4.15 7,768 Blackrock Inc. 2,401,579 2,604,843 1.11 98,043 Carmax Inc. P.P. 144A 4,703,359 4,683,514 2.00 32,685 Caterpillar Inc. 2,735,832 2,426,208 1.04 20,851 Chevron Corp. 1,859,412 2,156,827 0.92 168,777 Cisco Systems Inc. 4,569,115 4,762,043 2.03 12,092 Cit Group Inc. 325,634 374,006 0.16 246,056 Citigroup Inc. 11,486,335 10,376,183 4.42 39,476 Exxon Mobil Corp. 3,256,572 3,653,899 1.56 95,954 Facebook Inc. – A 6,747,429 10,962,745 4.68 141,759 General Electric Company 2,936,724 4,367,595 1.87 36,378 Goldman Sachs Group Inc. 5,344,924 5,317,008 2.27 36,440 IHS Inc. 4,110,527 4,162,541 1.78 152,917 JPMorgan Chase & Company 6,348,968 9,379,929 4.01 158,064 Lennar Corp. 5,708,170 7,190,331 3.07 1,256 Linkedin Corp. 206,877 238,025 0.10

89 MANULIFE GLOBAL FUND AMERICAN GROWTH FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 71,370 Lowe’s Companies Inc. 2,364,223 5,556,155 2.37 51,175 Mead Johnson Nutrition Company – A 3,728,180 4,511,076 1.92 72,622 Merck & Company Inc. 2,828,264 4,138,728 1.77 114,388 Morgan Stanley 2,176,527 2,884,865 1.23 3,598 NVR Inc. 3,649,936 6,235,334 2.66 48,357 Occidental Petroleum Corp. 4,174,190 3,627,742 1.55 51,833 Oracle Corp. 1,565,130 2,107,011 0.90 42,357 PepsiCo Inc. 2,939,864 4,418,682 1.89 49,144 Procter & Gamble Company 3,526,273 4,123,673 1.76 25,502 Prudential Financial Inc. 1,509,261 1,781,060 0.76 66,551 Qualcomm Inc. 3,566,507 3,503,910 1.50 36,965 Ralph Lauren Corp. 4,671,148 3,279,535 1.40 30,566 T Rowe Price Group Inc. 2,004,417 2,177,828 0.93 80,104 Tempur-Pedic International Inc. 3,769,033 4,449,777 1.90 44,909 Union Pacific Corp. 3,778,131 3,836,127 1.64 30,864 United Parcel Service Inc. 2,339,077 3,276,522 1.40 34,710 United Rentals Inc. 2,255,371 2,260,315 0.97 38,225 United Technologies Corp. 3,734,996 3,867,223 1.65 31,744 Visa Inc. – A 2,277,679 2,430,003 1.04 45,539 Wells Fargo & Company 1,579,048 2,130,770 0.91

169,701,930 209,888,609 89.62

Equities Total 183,315,297 227,322,720 97.07

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 183,315,297 227,322,720 97.07

Portfolio of Investments 183,315,297 227,322,720 97.07

Other Net Assets 6,850,826 2.93 Net Assets 234,173,546 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 90 AMERICAN GROWTH FUND

Investment Objective: The sub-fund aims to achieve capital growth from a portfolio of North American equities, with the main emphasis on the U.S. While the portfolio consists predominantly of securities of a carefully selected list of larger companies, smaller and medium-sized quoted companies are also included.

PERFORMANCE FROM 1 JULY 2015 TO 30 JUNE 2016*

American Growth Fund Class A -2.87% American Growth Fund Class AA -3.11% American Growth Fund Class AA (HKD) -1.50% American Growth Fund Class I -2.44% American Growth Fund Class I3 -1.37% S&P 500 Index +3.99%

PORTFOLIO REVIEW

Security selection in the financials sector, a sizable overweighting, accounted for much of the sub-fund’s underperformance relative to the S&P 500 Index. Individual detractors included diversified financials Citigroup, Bank of America, and Morgan Stanley; each of which posted a significant double-digit decline for the period as continued low interest rates kept a lid on net interest margins – the difference between what the banks earn on loans and pay out on deposits. Concerns about the banks’ energy loan exposure also hurt as oil prices remained well below the levels seen a year earlier. In addition, investors worried about the impact of slowing global growth and the UK’s Brexit vote. Shares of investment bank Goldman Sachs also fell sharply, as sluggish global economic growth, weak commodities markets, interest-rate uncertainty, equity market volatility and regulatory changes pressured its trading, investment banking and money management businesses. All four banks, however, passed regulatory stress tests late in the period, giving them a green light to buy back shares and increase dividends. The stocks rallied after the tests results were announced, but still ended the year with losses.

Elsewhere, the sub-fund’s lack of exposure to the top-performing utilities sector hampered relative performance. Utilities stocks did not seem to be attractively valued, nor did the stocks seem to meet criteria for substantial and sustainable cash flow. Similarly, the sub-fund lost ground from having a sizable underweight in the consumer staples sector, as many of the more favourable-looking, higher- quality stocks had already been bid up.

Other individual detractors this period included fashion apparel and home furnishings company Ralph Lauren. Its stock slid as the company’s turnaround dragged on for longer than investors expected. In addition, the company was hurt by currency challenges and by declining sales at department stores as more consumers shopped online. Also, in the consumer discretionary sector, an investment in used- car retailer CarMax proved disappointing, as a slowdown in used-vehicle purchases led to weaker- than-expected revenue numbers. The company also did not have an adequate inventory of sport utility vehicles (SUV) and trucks when low gas prices began boosting their popularity. An out-of-index position in premium mattress company Tempur Sealy International further hindered performance. A slowdown in big-ticket purchases resulted in softer-than-expected revenues, which hurt the stock. Lastly, shares of natural gas-focused exploration and production company Southwestern posted a steep loss, as gas prices collapsed and investors worried about the company’s high level of debt. Southwestern was eliminated from the sub-fund in late 2015.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

91 MANULIFE GLOBAL FUND AMERICAN GROWTH FUND

Despite some near-term individual disappointments, overall security selection in the consumer discretionary sector, a sizable overweight, was strong and gave a sizable boost to relative performance. Much of the gain came from e-commerce giant Amazon.com, the sub-fund’s top holding and nearly 7% of assets at period end. The stock soared this past year, as increased financial disclosure revealed strong profits in the company’s cloud-computing business and its continued dominance in online retail. Other strong performers in the consumer discretionary sector included US-based homebuilder NVR and Germany-based athletic apparel company adidas, both of which were not in the S&P 500 Index. NVR benefited from continued strong execution as the US housing market recovered. Adidas’s shares climbed as its turnaround efforts gained traction. In addition, news that the company had hired a new CEO pushed the stock higher. The sub-fund’s portfolio manager (PM) locked in profits and sold the sub- fund’s stake before period end. In the information technology sector, a sizable overweight in Facebook helped performance, as the social networking company’s growing mobile advertising revenues fuelled strong earnings gains that drove the stock sharply higher.

Market Review

Market conditions were volatile during the period, largely due to shifting outlooks for US economic growth and interest rates. Plunging energy prices and disappointing economic growth overseas further pressured returns, resulting in a sharp market decline late last summer. Stocks rebounded, however, in the last quarter of 2015. Many of these concerns eased and the Fed raised its short-term interest rate target for the first time in nearly a decade. Equities sank again early in the new year when oil prices fell even further and US recession fears resurfaced. A subsequent rally in oil prices, encouraging US economic data, a weaker US dollar and indications from the Fed that its next interest rate hike might come as soon as this summer helped spur a rebound beginning in mid-February. Stocks were buffeted again in June by volatility leading up to the UK’s surprise vote to leave the EU (known as “Brexit”), a decision that pushed out prospects for a near-term US rate hike. Within the S&P 500 Index, the more defensive utilities, telecommunication services and consumer sectors posted double-digit gains for the period, while the financials and energy sectors were notable laggards.

Outlook

Looking ahead, the sub-fund’s portfolio manager remains optimistic. The PM expects economic growth to improve, particularly because wage growth has been rising. This bolsters consumer spending, which drives roughly 70% of the economy. The sub-fund’s portfolio manager also anticipates continued recovery in the US housing market. At some point, it’s possible a stronger US economy will lead to higher interest rates, although the exact timing of the Fed’s next move is unclear. In the meantime, the big US banks passed their fourth year of regulatory stress tests in late June, proving they are well capitalised and giving them the ability to increase share buybacks and dividends. The sub-fund’s portfolio manager also believes Brexit will turn out to be more of a political issue rather than a liquidity concern.

The sub-fund’s portfolio manager plans to maintain the sub-fund’s focus on large-capitalisation companies with strong and sustainable cash flow and reasonable or discounted stock prices. At period end, valuations on large-capitalisation stocks seemed attractive relative to smaller capitalisation stocks. Many stocks that meet the PM’s criteria have been identified in the consumer discretionary and financials sectors, both of which represented sizable overweights and together over 40% of the sub- fund’s assets at period end. The PM expects both sectors to benefit as US economic growth improves and interest rates move higher.

MANULIFE GLOBAL FUND 92 ASEAN EQUITY FUND*

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Indonesia 87,700 Arwana Citramulia Tbk PT 3,934 4,049 0.07 177,000 Bank Central Asia Tbk PT 146,709 178,517 2.91 377,000 Bank Negara Indonesia Tbk PT 114,284 148,383 2.42 524,500 Bumi Serpong Damai Pt 52,340 83,766 1.36 317,200 Ciputra Development Tbk PT 32,611 34,813 0.57 150,000 Hanjaya Mandala Sampoerna Tbk PT 46,838 43,143 0.70 140,000 Indofood Cbp Sukses Makmur Tbk PT 121,528 182,526 2.97 90,000 Matahari Department Store Tbk PT 101,606 136,242 2.22 3,449,700 Puradelta Lestari Tbk PT 50,426 56,399 0.92 974,000 Telekomunikasi Indonesia Tbk PT 174,314 293,414 4.78 1,898,000 Total Bangun Persada Tbk PT 87,011 110,618 1.80 13,000 Unilever Indonesia Tbk PT 34,119 44,352 0.72 1,602,700 Wijaya Karya PT 153,834 184,213 2.99

1,119,554 1,500,435 24.43 Malaysia 9,000 Fraser & Neave Holdings 50,567 56,078 0.91 342,400 Hup Seng Industries Bhd 97,450 113,808 1.85 15,000 Petronas Gas Bhd 76,437 81,856 1.33 46,000 Ppb Group Bhd 161,402 188,268 3.07 48,000 Public Bank Bhd 195,624 230,982 3.76 71,000 Tenaga Nasional Bhd 238,349 248,320 4.04 249,150 Uchi Technologies Bhd 82,531 94,555 1.54

902,360 1,013,867 16.50 Philippines 2,390 Globe Telecom Inc. 99,340 120,496 1.96 27,110 Security Bank Corp. 82,653 110,577 1.80 336,400 SM Prime Holdings Inc. 149,345 195,199 3.18 775,800 Vista Land & Lifescapes Inc. 84,162 88,055 1.43

415,500 514,327 8.37

* Refer to note 10

93 MANULIFE GLOBAL FUND ASEAN EQUITY FUND*

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Singapore 54,000 Capitaland Limited 106,436 123,010 2.00 68,000 First Resources Limited 83,444 78,964 1.29 211,000 Keppel DC REIT 150,921 173,785 2.83 82,000 Mapletree Commercial Trust 86,974 90,050 1.47 16,000 Oversea-Chinese Banking Corp. Limited 98,355 103,168 1.68 120,000 Raffles Medical Group Limited 124,241 134,451 2.19 43,000 Sats Limited 118,169 131,135 2.13 32,000 Singapore Exchange Limited 161,706 180,931 2.95 115,000 Singapore Telecommunications 287,323 352,415 5.73 14,000 United Overseas Bank Limited 197,310 191,348 3.11 26,000 Venture Corp. Limited 150,191 159,740 2.60 42,000 Yanlord Land Group Limited 30,373 35,371 0.58

1,595,443 1,754,368 28.56 Thailand 18,000 Advanced Info Service pcl – NVDR 106,316 80,935 1.32 13,000 Airports of Thailand pcl – NVDR 101,556 144,282 2.35 395,600 Big Camera Corp. plc – NVDR 16,921 44,356 0.72 142,000 CH. Karnchang pcl 105,754 117,190 1.91 242,400 Eastern Polymer Group – NVDR 77,434 91,056 1.48 77,000 PTT Global Chemical pcl – NVDR 124,443 129,833 2.11 89,200 Robinson Department Store pcl – NVDR 92,533 171,980 2.80 256,000 Supalai pcl 130,773 174,117 2.83 31,000 Thai Oil pcl – NVDR 44,513 52,932 0.86 436,000 TTW pcl – NVDR 130,739 138,966 2.27

930,982 1,145,647 18.65

Equities Total 4,963,839 5,928,644 96.51 Total Transferable securities and money market instruments admitted to an official (1) exchange listing 4,963,839 5,928,644 96.51 Portfolio of Investments 4,963,839 5,928,644 96.51

Other Net Assets 214,480 3.49 Net Assets 6,143,124 100.00

* Refer to note 10 (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 94 ASEAN EQUITY FUND*

The investment objective of the sub-fund is to generate long-term capital growth through investing primarily in equity and equity-related securities of companeis listed or incorporated in countries which are members of ASEAN as well as companies incorporated outside ASEAN but which have significant economic exposure to, or derive a significant proportion of their income from the ASEAN region.

The “ASEAN” region is defined as members of the Association of South East Asian Nations, which currently comprise Singapore, Malaysia, Thailand, Indonesia, Brunei, the Philippines, Vietnam, Cambodia, Laos and Myanmar.

PERFORMANCE FROM 5 October 2015 TO 30 JUNE 2016**

ASEAN Equity Fund Class I +22.86% MSCI South East Asia Index +26.73% Portfolio Review

The sub-fund’s performance was primarily attributable to strong stock selection decisions at country and sector levels.

Stock selection was strong across all countries with the top five contributors to performance being companies based in Thailand and Indonesia. A company that operates department stores in Thailand performed strongly as domestic consumption is picking up on the back of additional public holidays and government stimulus measures to support domestic travel. Another contributor to performance was one of Thailand’s largest digital camera retailers. The company continues to benefit from its leading market share position, strong growth of active social media users and continued recovery in domestic consumption. An Indonesian telecommunications services operator also contributed positively as the company’s earnings remain strong on recovery of fixed-line revenues due to bundling services and strong mobile revenue growth due to mobile internet. Furthermore, the Indonesian government was seeking to consolidate the mobile service industry by up to 60% by 2019.

A key notable detractor includes a Thai telecommunications services provider. Its share price fell due to concerns around the entry of a fourth player in the market, which may hurt profitability of existing operators.

Stock selection in all countries contributed strongly to performance as did the overweight in Indonesia. Stock selection in all sectors was positive except for consumer staples and healthcare. The primary contributors at the sector level were consumer discretionary, financials, industrials and telecommunication services.

The sub-fund is overweight Indonesia as the sub-fund’s portfolio manager (PM) expects the country’s funding environment to improve following the passage of the Tax Amnesty Bill. The sub-fund is also overweight Thailand as the economy continues to improve on the back of the government’s strong push for tourism growth. Both Indonesia and Thailand continue to show improving progress on infrastructure rollout. The PM is underweight Malaysia, Philippines and Singapore.

* Refer to note 10 ** The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

95 MANULIFE GLOBAL FUND ASEAN EQUITY FUND*

Market Review

All Southeast Asian markets traded higher during the reporting period. The initial negative shock from Brexit was short-lived in Asia. Some global funds increased allocations to Asia due to the region’s relatively contained exposure to the UK and Europe. Central banks in the region are adopting accommodative monetary policies amid growing uncertainty around global growth environment.

Thailand’s central bank kept its policy rate unchanged as it wanted to keep some room for policy action in light of global risks. Inflation is on track to meet its target and economic growth is gaining momentum on the back of strong tourism.

Indonesia was the best performing market after the central bank cut interest rates once this quarter and for the fourth time this year to support economic growth. Inflation dropped to its lowest level in more than six years in May. The parliament also approved the long awaited Tax Amnesty Bill, which is expected to help finance a widening budget amid plans for increased infrastructure spending to spur economic growth.

Malaysia’s industrial production increased 2.7% year-on-year in May, which is slower than April’s reading of 3%. Exports in May fell unexpectedly, as oil prices remained weak. Singapore’s non-oil domestic exports rose as the contraction in electronic goods exports was counterbalanced by the increase in exports of gold. Retail sales grew but were much lower than estimates.

In the Philippines, exports continued to decline at a slower pace than the previous month and the central bank maintained its policy rate. However, the Philippines was the second best performing benchmark constituent, driven by gaming names as monthly gross gaming revenues continued to be strong on the back of higher VIP revenues.

* Refer to note 10

MANULIFE GLOBAL FUND 96 ASEAN EQUITY FUND*

Market Outlook

The Brexit shock changed global growth and interest rate dynamics. The PM expects central banks to maintain a longer period of accommodative monetary policies on the back of lower economic growth in developed markets.

The deterioration of the post-Brexit macro environment points to a preference for markets with higher domestic exposure and higher dividend support. In this case, the Southeast Asian region ranks favourably as it is more leveraged to domestic growth. Furthermore, stable domestic currencies and oil price continue to lend support to a more benign investing environment.

Indonesia is the biggest overweight market in the portfolio. The government made a big leap by passing the Tax Amnesty Bill into law. If executed well, the repatriation of offshore funds is expected to help support the country’s fiscal spending on infrastructure as well as ease pressure on the country’s balance of payment. It is also expected to contribute to growth in domestic consumption and private investments. Furthermore, the impact of government spending since the earlier part of the year is gradually being felt through the system. The PM expects to see improving asset turns and cash flow for most Indonesian corporates, supporting the outlook that an earnings upgrade will follow in due course. This could help alleviate the risk of non-performing loans in the banking system.

Apart from stimulating domestic consumption, the Thai government has stepped up effort to drive public and private investments. The portfolio is well positioned to leverage on these two key drivers of growth (domestic consumption and investments). There are already some early signs of improvement in the Thai economy, which is reflected in the recovery in rural income as well as growth in auto sales.

The PM remains cautious on the Malaysian market’s outlook. The economy continues to show signs of weakness and earnings growth remains uninspiring. Valuation of stocks appears less attractive relative to its ASEAN peers. That said, the PM sees the market as a good place to invest in companies with good dividend payout, stable growth and steady cash flows.

* Refer to note 10

97 MANULIFE GLOBAL FUND ASIA TOTAL RETURN FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Supranationals, Governments and Local Public Authorities, Debt Instruments

India 60,000,000 India (Govt of) 8.270% 9/Jun/2020 926,436 918,780 0.98

926,436 918,780 0.98 Indonesia 5,000,000,000 Indonesia (Govt of) 7.000% 15/May/2027 576,529 363,168 0.39 5,200,000,000 Indonesia (Govt of) 8.250% 15/Jun/2032 649,748 410,951 0.44 19,000,000,000 Indonesia (Govt of) 8.375% 15/Mar/2024 1,641,310 1,514,689 1.62 24,000,000,000 Indonesia (Govt of) 8.375% 15/Mar/2034 1,797,822 1,929,442 2.05 19,500,000,000 Indonesia (Govt of) 9.000% 15/Mar/2029 1,306,143 1,626,687 1.74 3,000,000,000 Indonesia (Govt of) 9.500% 15/Jul/2031 392,500 260,064 0.29

6,364,052 6,105,001 6.53 New Zealand 750,000 New Zealand (Govt of) 4.500% 15/Apr/2027 534,928 641,224 0.69 550,000 New Zealand (Govt of) 5.500% 15/Apr/2023 526,360 475,475 0.50

1,061,288 1,116,699 1.19 Philippines 48,000,000 Philippine (Govt of) 4.950% 15/Jan/2021 1,126,271 1,064,600 1.14

1,126,271 1,064,600 1.14 Republic of Korea (South) 19,000,000,000 Export-Import Bank of Korea 8.000% 1,529,585 1,407,493 1.50 15/May/2018 1,000,000,000 Korea (Govt of) 2.250% 10/Jun/2025 885,060 925,461 0.99 2,000,000,000 Korea (Govt of) 2.750% 10/Jun/2017 1,951,596 1,760,237 1.88 1,500,000,000 Korea (Govt of) 2.750% 10/Mar/2018 1,448,789 1,334,075 1.43 750,000,000 Korea (Govt of) 3.500% 10/Sep/2016 716,751 653,928 0.70 1,000,000,000 Korea (Govt of) Treasury Bond 2.750% 917,495 883,167 0.94 10/Sep/2017 750,000,000 Korea (Govt of) Treasury Bond 5.000% 680,703 743,814 0.80 10/Jun/2020 400,000,000 Korea (Govt of) Treasury Bond 5.750% 404,898 380,670 0.41 10/Sep/2018

8,534,877 8,088,845 8.65

MANULIFE GLOBAL FUND 98 ASIA TOTAL RETURN FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Singapore 2,500,000 Singapore (Govt of) 1.375% 1/Oct/2017 1,795,645 1,867,442 2.00

1,795,645 1,867,442 2.00 Supranational 30,000,000 Asian Development Bank 6.350% 17/Aug/2016 496,093 443,853 0.47 75,000,000 European Bank for Reconstruction & 1,082,373 1,102,566 1.18 Development 5.625% 15/Mar/2017 100,000,000 International Bank for Reconstruction & 1,650,181 1,475,785 1.58 Development 6.000% 20/Dec/2016 30,000,000 International Finance Corp. 6.450% 30/Oct/2018 472,109 443,102 0.47

3,700,756 3,465,306 3.70 Thailand 30,000,000 Thailand (Govt of) 1.200% 14/Jul/2021 991,230 898,147 0.96

991,230 898,147 0.96

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 24,500,555 23,524,820 25.15

Bonds

Australia 1,000,000 Commonwealth Bank of Australia 5.125% 819,850 745,306 0.80 1/Aug/2019 700,000 Crown Group Finance Limited 5.750% 689,681 534,527 0.57 18/Jul/2017 600,000 Incitec Pivot Limited 5.750% 21/Feb/2019 566,699 466,826 0.50

2,076,230 1,746,659 1.87 Bermuda 300,000 China Oil & Gas Group Limited 5.250% 289,800 304,187 0.33 25/Apr/2018

289,800 304,187 0.33 Canada 900,000 Nexen Energy Ulc 5.875% 10/Mar/2035 999,720 1,073,471 1.15 250,000 PTTEP Canada International Finance Limited 250,000 329,345 0.35 6.350% 12/Jun/2042

1,249,720 1,402,816 1.50

99 MANULIFE GLOBAL FUND ASIA TOTAL RETURN FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Cayman Islands 300,000 Agile Property Holdings Limited 8.375% 310,860 320,606 0.34 18/Feb/2019 300,000 Agile Property Holdings Limited 9.875% 313,350 313,905 0.34 20/Mar/2017 500,000 Alibaba Group Holding Limited 3.125% 506,285 513,905 0.55 28/Nov/2021 750,000 Biostime International Holdings Limited 750,000 777,390 0.83 7.250% 21/Jun/2021 400,000 China Overseas Finance Cayman V Limited 398,660 419,552 0.45 3.950% 15/Nov/2022 400,000 China Overseas Finance Cayman V Limited 354,840 421,770 0.45 5.350% 15/Nov/2042 400,000 China Overseas Finance Cayman VI Limited 404,721 423,428 0.45 4.250% 8/May/2019 500,000 China Resources Land 6.000% 27/Feb/2024 565,460 589,075 0.63 1,100,000 CSCEC Finance Cayman I Limited 2.950% 1,110,780 1,116,412 1.20 19/Nov/2020 500,000 Future Land Develo 6.250% 12/Nov/2017 500,550 511,160 0.55 300,000 Hengdeli Holdings Limited 6.250% 295,200 303,281 0.32 29/Jan/2018 500,000 Longfor Properties Company Limited 6.875% 517,920 523,660 0.56 18/Oct/2019 750,000 MCE Finance Limited 5.000% 15/Feb/2021 716,718 746,775 0.80 500,000 Parkson Retail Group 4.500% 3/May/2018 500,000 464,755 0.50 500,000 Sun Hung Kai Properties Capital Market 481,250 560,043 0.60 Limited 4.500% 14/Feb/2022 1,000,000 Tencent Holdings Limited 3.800% 11/Feb/2025 1,023,280 1,054,805 1.13 1,000,000 Tingyi Cayman Islands Holding Corp. 3.875% 1,017,500 1,016,920 1.07 20/Jun/2017

9,767,374 10,077,442 10.77 China 450,000 China Construction Bank Corp. FRN 447,552 456,374 0.49 13/May/2025 1,600,000 China Construction Bank Corp. FRN 261,339 242,212 0.26 12/Nov/2024** 1,000,000 Industrial & Commercial Bank of China 1,032,720 1,056,469 1.13 Limited 4.875% 21/Sep/2025 4,000,000 Shanghai Baosteel Group Corp. 4.150% 653,062 600,228 0.64 1/Mar/2017**

2,394,673 2,355,283 2.52

MANULIFE GLOBAL FUND 100 ASIA TOTAL RETURN FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Hong Kong 1,000,000 Aia Group Limited 3.125% 13/Mar/2023 986,500 1,037,960 1.11 500,000 Bank of East Asia Limited FRN 13/Sep/2022 410,598 377,137 0.40 500,000 Chalco Hong Kong Investment Company FRN 522,500 524,828 0.56 29/Oct/2049 1,000,000 Chalieco Hong Kong Corp. Limited FRN 1,019,125 1,019,020 1.09 28/Aug/2049 6,000,000 China Unicom Hong Kong Limited 4.000% 968,693 902,676 0.97 16/Apr/2017** 900,000 FPT Finance Limited 6.375% 28/Sep/2020 956,000 994,221 1.06 1,000,000 Lenovo Group Limited 4.700% 8/May/2019 1,053,180 1,055,110 1.13 1,000,000 Wheelock Finance Limited 4.500% 2/Sep/2021 821,143 784,284 0.84 500,000 Yancoal International Resources Development 496,108 499,120 0.53 Company Limited 4.461% 16/May/2017

7,233,847 7,194,356 7.69 India 250,000 Reliance Industries Limited 4.125% 28/Jan/2025 247,495 259,048 0.28 600,000 Reliance Industries Limited 4.875% 10/Feb/2045 593,190 603,633 0.64

840,685 862,681 0.92 Indonesia 800,000 Mitra Pinasthika Mustika Tbk PT 6.750% 796,750 827,872 0.88 19/Sep/2019 550,000 Pelabuhan Indonesia II Pt 4.250% 5/May/2025 544,478 550,789 0.59 1,000,000 Pertamina PT 5.250% 23/May/2021 1,047,501 1,073,734 1.15 400,000 Perusahaan Listrik Negara Pt 5.500% 408,800 435,800 0.47 22/Nov/2021 600,000 Theta Capital Pte Limited 7.000% 16/May/2019 617,460 624,432 0.67

3,414,989 3,512,627 3.76 Jersey – Channel Islands 300,000 West China Cement Limited 6.500% 298,125 305,112 0.33 11/Sep/2019

298,125 305,112 0.33 Malaysia 6,750,000 Cagamas Global 3.700% 22/Sep/2017** 1,098,903 1,005,173 1.07 1,300,000 Cimb Bank Bhd 4.375% 25/Sep/2019 1,177,917 981,551 1.05 1,000,000 Ioi Investment Bhd 4.375% 27/Jun/2022 994,840 1,039,185 1.11 250,000 Malayan Banking Bhd FRN 29/Oct/2026 250,000 257,070 0.27 1,000,000 Ssg Resources Limited 4.250% 4/Oct/2022 1,002,422 1,055,179 1.14

4,524,082 4,338,158 4.64

101 MANULIFE GLOBAL FUND ASIA TOTAL RETURN FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Netherlands 1,000,000 Bharti Airtel International Netherlands BV 978,540 1,085,389 1.15 5.125% 11/Mar/2023 300,000 Indo Energy Finance BV 7.000% 7/May/2018 169,500 239,328 0.26 700,000 Indo Energy Finance II BV 6.375% 24/Jan/2023 610,100 394,891 0.41 600,000 Listrindo Capital BV 6.950% 21/Feb/2019 609,000 623,691 0.69

2,367,140 2,343,299 2.51 New Zealand 5,000,000 Fonterra Cooperative Group Limited 3.600% 811,384 744,145 0.80 29/Jan/2019**

811,384 744,145 0.80 Philippines 14,000,000 Petron Corp. 7.000% 10/Nov/2017 328,615 310,428 0.33

328,615 310,428 0.33 Republic of Korea (South) 300,000 Export-Import Bank of Korea 4.875% 255,607 217,145 0.23 15/Dec/2017 25,000,000 Export-Import Bank of Korea 7.000% 419,312 369,733 0.40 27/Jun/2017 13,000,000,000 Export-Import Bank of Korea 8.400% 1,187,599 984,216 1.05 6/Jul/2016 200,000 Kia Motors Corp. 2.625% 21/Apr/2021 199,322 205,612 0.22 200,000 Shinhan Bank 3.875% 24/Mar/2026 198,722 206,465 0.22 500,000 Sk Telecom Company Limited 4.750% 523,989 380,171 0.41 17/Nov/2017

2,784,551 2,363,342 2.53 Singapore 600,000 Alam Synergy Pte Limited 9.000% 29/Jan/2019 608,900 626,313 0.67 500,000 Global Logistic Properties 3.875% 4/Jun/2025 496,110 512,258 0.55 500,000 Mapletree Treasury Services Limited FRN 399,107 378,790 0.40 29/Jul/2049 1,750,000 Singapore Post Limited 4.250% 29/Sep/2049 1,398,071 1,341,594 1.44 700,000 Tbg Global Pte Limited 5.250% 10/Feb/2022 659,650 711,911 0.76 1,000,000 United Overseas Bank Limited FRN 16/Sep/2026 995,740 1,021,445 1.09

4,557,578 4,592,311 4.91 Supranational 50,000,000 International Finance Corp. 7.750% 3/Dec/2016 804,229 743,196 0.79

804,229 743,196 0.79 Thailand 600,000 PTT Global Chemical pcl 4.250% 19/Sep/2022 594,648 654,651 0.70 200,000 Thai Oil pcl 3.625% 23/Jan/2023 198,342 207,410 0.22 700,000 Thai Oil pcl 4.875% 23/Jan/2043 697,445 756,518 0.81

1,490,435 1,618,579 1.73

MANULIFE GLOBAL FUND 102 ASIA TOTAL RETURN FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United Kingdom 300,000 Vedanta Resources 6.000% 31/Jan/2019 308,820 257,223 0.28

308,820 257,223 0.28 United States 300,000 Citigroup Inc. 6.250% 29/Jun/2017 239,752 219,354 0.23 500,000 Morgan Stanley 7.600% 8/Aug/2017 406,081 370,317 0.40 250,000 Reliance Holdings Inc. 5.400% 14/Feb/2022 248,523 279,488 0.30

894,356 869,159 0.93 Virgin Islands (British) 500,000 Bestgain Real Estate Limited 2.625% 470,500 500,965 0.54 13/Mar/2018 1,250,000 Bestgain Real Estate Limited 3.275% 1,002,916 931,317 1.00 6/Nov/2017 200,000 Ccci Treasure Limited FRN 29/Dec/2049 200,000 203,362 0.22 500,000 China Cinda Finance Limited 3.125% 498,440 508,398 0.54 23/Apr/2020 600,000 CICC Hong Kong Finance 2.750% 18/May/2019 598,956 605,994 0.65 900,000 Double Rosy Limited 3.625% 18/Nov/2019 897,138 928,503 0.99 3,000,000 Eastern Creation Investment II Holdings 488,996 450,672 0.48 Limited 3.750% 27/Jun/2017** 500,000 Franshion Investment Limited 4.700% 506,540 516,033 0.55 26/Oct/2017 1,000,000 HKT Capital No 2 Limited 3.625% 2/Apr/2025 985,200 1,053,955 1.13 850,000 Hongkong Electric Finance Limited 2.875% 840,735 854,165 0.90 3/May/2026 850,000 Huarong Finance II Company Limited 3.250% 845,810 856,141 0.92 3/Jun/2021 800,000 Midea Investment Development Company 799,312 804,016 0.86 Limited 2.375% 3/Jun/2019 900,000 Poly Real Estate Finance Limited 4.500% 896,818 936,584 0.99 6/Aug/2018 900,000 Proven Honour Capital Limited 4.125% 910,889 938,907 1.00 19/May/2025 730,000 Road King Infrastructure Finance 9.875% 768,325 763,810 0.82 18/Sep/2017 5,000,000 Sinochem Offshore Capital Company Limited 807,098 749,940 0.80 3.550% 13/May/2017** 200,000 Star Energy Geothermal 6.125% 27/Mar/2020 197,000 203,911 0.22 1,000,000 Yongda Investment Limited 3.750% 21/Jul/2020 1,042,020 1,043,785 1.11

12,756,693 12,850,458 13.72

Bonds Total 59,193,326 58,791,461 62.86

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 83,693,881 82,316,281 88.01

103 MANULIFE GLOBAL FUND ASIA TOTAL RETURN FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Supranationals, Governments and Local Public Authorities, Debt Instruments

Malaysia 3,500,000 Malaysia (Govt of) 3.955% 15/Sep/2025 799,073 876,911 0.94 3,500,000 Malaysia (Govt of) 4.181% 15/Jul/2024 809,097 891,687 0.95 6,950,000 Malaysia (Govt of) 4.232% 30/Jun/2031 1,807,623 1,755,138 1.88 3,500,000 Malaysia (Govt of) 4.254% 31/May/2035 865,687 867,427 0.93 1,500,000 Malaysia (Govt of) 4.392% 15/Apr/2026 531,621 387,844 0.41

4,813,101 4,779,007 5.11

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 4,813,101 4,779,007 5.11

Bonds

Australia 1,300,000 Australia & New Zealand Banking Group 1,299,377 1,338,057 1.43 Limited 4.400% 19/May/2026 1,299,377 1,338,057 1.43

Bonds Total 1,299,377 1,338,057 1.43 Total Transferable securities and money market instruments dealt in on another regulated market and recently issued (2) transferable securities 6,112,478 6,117,064 6.54 Portfolio of Investments 89,806,359 88,433,345 94.55

Other Net Assets 5,098,807 5.45 Net Assets 93,532,152 100.00

** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 248) (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 104 ASIA TOTAL RETURN FUND

Investment Objective: The sub-fund aims to maximize total returns from a combination of capital appreciation and income generation. The sub-fund primarily invests in a diversified portfolio of fixed income securities, issued by governments, agencies, supra-nationals and corporate issuers in Asia. The sub-fund may also invest (up to 30 per cent of its net assets) in cash and fixed income securities of other issuers outside Asia if the Investment Manager considers that such securities will achieve the goal of maximizing capital appreciation and income generation.

The sub-fund invests in securities denominated in Asian currencies or other currencies. It may invest in local currency bonds with unhedged currency exposure to achieve currency gains. The sub-fund may also hedge for efficient portfolio management purposes.

The sub-fund may invest in higher-yielding debt securities rated lower than investment grade, or if unrated, their equivalent. As such, an investment in this sub-fund is accompanied by a higher degree of credit risk.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Asia Total Return Fund Class AA +4.52% Asia Total Return Fund Class AA Inc** +4.45% Asia Total Return Fund Class AA (HKD) Inc +4.66% Asia Total Return Fund Class I +4.82% Asia Total Return Fund Class J +5.34% Asia Total Return Custom Index +3.46% PERFORMANCE FROM 18 January 2016 TO 30 June 2016

Asia Total Return Fund Class I3 7.75% PORTFOLIO REVIEW

The sub-fund’s portfolio’s main contribution came from currency positioning; the broad overweight in US dollar versus its blended benchmark helped amid a strengthening US dollar. In addition, the portfolio’s overweight to US dollar denominated Asian corporate bonds and Indonesian local currency bonds both contributed positively. However, the underweight US dollar interest rate duration positioning amid declining US Treasury yields slightly detracted from performance.

MARKET REVIEW

In the US, the Fed raised interest rates once in December 2015 for the first time since 2006. Nevertheless, 10-year Treasury yields fell from 2.23% to 1.49% over the period, amid increased volatility in global financial markets, fears of a Chinese economic hard landing and uncertainty over the Brexit referendum.

In August 2015, the People’s Bank of China (PBoC) unexpectedly devalued the renminbi and shifted to a more market-oriented exchange rate policy. The unexpected move dampened investor sentiment and triggered capital outflows from emerging markets while most Asian currencies declined against the US dollar during the period.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. ** Previously Class AA

105 MANULIFE GLOBAL FUND ASIA TOTAL RETURN FUND

A number of Asian central banks cut interest rates as inflation pressures receded. In China, the official Purchasing Managers’ Index (PMI) fell to 49.0 in February, the lowest level since 2008. In response, the People’s Bank of China (PBoC) cut interest rates twice and cut the reserve requirement ratio three times. In Indonesia, the government announced a series of stimulus packages cutting fuel, gas and electricity prices while aiming to boost investment growth. Indonesian bond yields fell as the central bank cut its interest rate four times by 25 basis points (bps) each time over the period, lowering the reference rate to 6.50% as inflation conditions improve. In South Korea, S&P upgraded the country’s sovereign credit rating to AA-. South Korean bond yields declined over the period as Bank of Korea cut its key interest rate by 25bps to a record low of 1.25%, in attempt to stimulate economic growth.

Asian corporate credit markets saw modest gains over the period, benefiting from the positive carry and lower US Treasury yields. The JP Morgan Asian Investment Grade Corporate Bond Index returned 6.24%, while the Asian High Yield Corporate Bond Index returned 8.81%, in US dollar terms.

OUTLOOK

Amid uncertainty over the Fed’s pace of monetary policy normalisation and unconventional negative interest rate policy in Europe and Japan, subdued developed market rates could persist and may lead to further volatility in global and Asian bond markets.

Within the Pan-Asia bond market, the sub-fund’s portfolio manager prefers high quality US dollar denominated Asian corporate bonds, given the economic slowdown globally and in the Asia region. The sub-fund’s portfolio manager sees pockets of opportunities within the local currency bond market, and believes Malaysia has prospects of monetary policy easing. Malaysia’s local currency bond yields are relatively attractive compared to similarly rated bonds in the region. Though the sub-fund’s portfolio manager expects the strong US dollar trend to continue over the next quarters, the plan is to seek opportunities to selectively add Asian currencies supported by compelling fundamentals.

MANULIFE GLOBAL FUND 106 Asia Value Dividend Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Australia 3,318 United Overseas Australia 1,591 1,172 0.01

1,591 1,172 0.01 Bermuda 494,000 Armada Holdings Limited a 103,710 27,666 0.18 3,920,000 CSI Properties Limited 176,432 138,937 0.92 381,972 Skyworth Digital Holdings Limited 241,053 312,119 2.06

521,195 478,722 3.16 Cayman Islands 131,000 Belle International Holdings Limited 137,022 76,652 0.51 17,180 Cheung Kong Property Holding 97,912 107,169 0.71 289,000 China High Speed Transmission Equipment 245,261 231,307 1.53 Group Company Limited 289,000 China Lilang Limited 192,989 183,630 1.21 224,000 China Resources Cement Holdings Limited 153,243 71,598 0.47 214,000 China State Construction International 313,178 281,879 1.86 Holdings Limited 232,800 China Zhongwang Holdings Limited 117,606 103,214 0.68 716,000 Cifi Holdings Group Company Limited 159,172 175,334 1.16 24,180 CK Hutchison Holdings Limited 313,900 263,493 1.74 398,000 EGL Holdings Company Limited 97,893 95,923 0.64 359,000 FSE Engineering 82,539 95,778 0.63 32,000 Haitian International Holdings Limited 41,877 56,255 0.37 606,000 Hopefluent Group Holdings Limited 227,647 160,894 1.06 1,336,000 Jiangnan Group Limited 320,904 213,514 1.41 161,000 Langham Hospitality Investments 55,007 56,648 0.37 170,000 Lee & Man Holding Limited 90,065 45,573 0.30 330,500 Longfor Properties Company Limited 475,936 428,517 2.82 960,000 Oi Wah Pawnshop Credit Holding 63,843 56,915 0.38 51,500 Shimao Property Holdings Limited 109,073 64,782 0.43 480,000 Sinomax Group Limited 68,085 60,008 0.40 299,000 Sitc International Company Limited 122,877 156,457 1.03 209,000 Springland International Holdings Limited 102,633 26,937 0.18 348,000 Tk Group Holdings Limited 83,920 88,358 0.57 216,000 Wasion Meters Group Limited 114,191 114,419 0.75 326,000 Wonderful Sky Financial Group Holdings 68,610 83,192 0.55 Limited

3,855,383 3,298,446 21.76

107 MANULIFE GLOBAL FUND Asia Value Dividend Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

China 409,000 Agricultural Bank of China – H 179,778 149,179 0.98 22,500 Anhui Conch Cement Company Limited 78,012 53,996 0.36 135,000 Baic Motor Corp. Limited – H 169,479 94,826 0.63 761,000 China Construction Bank Corp. 528,692 502,173 3.30 191,000 China Life Insurance Company Limited – H 671,341 409,131 2.71 114,000 China Machinery Engineering Corp. – H 86,442 73,905 0.49 173,627 Chongqing Changan Automobile Company 369,920 241,680 1.59 Limited 17,900 Dalian Wanda Commercial Properties 122,693 109,814 0.72 Company Limited – H 58,000 Dongfeng Motor Group Company Limited 88,219 60,400 0.40 126,000 Huadian Power International Company – H 99,906 59,923 0.40 876,000 Petrochina Company Limited 639,651 597,254 3.94 493,000 Qingdao Port International – H 263,668 223,025 1.46 331,500 Sinopec Engineering Group Company Limited 328,717 299,076 1.99 57,800 Xinjiang Goldwind Science & Technology 86,777 78,816 0.52 Company Limited 150,500 Yangtze Optical Fibre & Cable Joint Stock 157,401 170,306 1.12 Limited – H 166,000 Zhejiang Expressway Company Limited 154,852 155,968 1.03

4,025,548 3,279,472 21.64 Hong Kong 90,000 Boc Hong Kong Holdings Limited 278,995 269,110 1.78 166,000 China Overseas Land & Investment Limited 532,178 524,170 3.45 632,000 China Power International Development 264,729 232,146 1.53 Limited 148,834 China Resources Power Holdings Company 359,305 221,748 1.46 Limited 67,000 Chow Sang Sang Holding 154,379 118,303 0.78 204,000 Convenience Retail Asia Limited 80,512 88,868 0.59 408,601 Far East Consortium 169,932 129,022 0.85 178,000 Far East Horizon Limited 154,016 138,108 0.91 133,000 Goldpac Group Limited 52,953 37,197 0.25 63,345 Hui Xian Real Estate Investment Trust** 34,851 30,105 0.20 1,292,000 Modern Beauty Salon Holdings Limited 102,308 69,105 0.46 154,000 Pico Far East Holdings Limited 43,281 43,467 0.29 4,004 Sino Land Company Limited 6,019 6,533 0.04 98,000 Smartone Telecommunications Holding Limited 156,005 174,303 1.15 13,000 Sun Hung Kai Properties Limited 156,669 155,905 1.03

2,546,132 2,238,090 14.77 Indonesia 229,900 Bank Mandiri Tbk PT 163,897 165,746 1.09 862,700 Bank Pan Indonesia Tbk PT 49,519 50,279 0.33 589,600 Nusa Raya Cipta Tbk PT 43,620 27,222 0.18 2,941,800 Panin Life Tbk PT 38,190 46,760 0.32 652,800 Perusahaan Gas Negara Pt 126,780 115,620 0.76

422,006 405,627 2.68

MANULIFE GLOBAL FUND 108 Asia Value Dividend Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Malaysia 216,050 Mah Sing Group Bhd 97,572 78,778 0.52 187,000 Signature International Bhd 60,473 45,457 0.30 96,300 UOA Development Bhd 63,331 52,312 0.35 50,600 Vitrox Corp. Bhd 44,723 47,318 0.31

266,099 223,865 1.48 Philippines 202,700 Leisure & Resorts World Corp. 41,345 33,088 0.22 1,303,000 Premium Leisure Corp. 36,640 32,403 0.21 22,740 Semirara Mining & Power Company 61,613 60,466 0.40

139,598 125,957 0.83 Republic of Korea (South) 1,280 Amorepacific Corp. 85,949 274,481 1.81 484 BGF Retail Company Limited 30,217 89,711 0.59 248 Binggrae Company Limited 15,650 14,576 0.10 252 CJ Cheiljedang Corp. 49,363 45,506 0.30 4,292 Dongbu Insurance Company Limited 224,157 258,225 1.70 5,697 Gs Retail Company Limited 182,247 269,556 1.77 11,471 Hynix Semiconductor Inc. 324,762 322,664 2.13 6,085 Korea Electric Power Corp. 262,859 319,082 2.11 325 Korea Ratings Corp. 11,888 11,625 0.08 6,713 LG Corp. 213,921 250,623 1.65 9,752 Macquarie Korea Infrastructure Fund 73,762 74,165 0.49 1,904 Maeil Dairy Industry Company Limited 72,011 72,071 0.47 1,416 Nong Woo Bio Company Limited 30,263 31,348 0.21 175 Samsung Electronics Company Limited Pfd 163,499 179,733 1.19 2,431 Samsung Fire & Marine Insurance Company 191,251 367,230 2.43 Limited 1 Samsung Fire & Marine Insurance Company 201 229 0.00 Limited 3,254 Sekonix Company Limited 46,719 48,590 0.32 595 SK Innovation Company Limited P.P. 144A 73,857 72,577 0.48

2,052,576 2,701,992 17.83 Singapore 83,600 Aims Amp Capital Industrial Reit 82,872 86,535 0.58 132,000 Asian Pay Television Trust 82,339 51,911 0.34 60,200 Capitacommercial Trust 60,157 65,886 0.43 44,098 Capitaretail China Trust 49,859 49,081 0.32 194,273 Croesus Retail Trust 110,537 117,484 0.77 23,784 DBS Group Holdings Limited 318,826 278,130 1.84 161,100 Ezion Holdings Limited 169,007 62,159 0.41 84,000 Frasers Commercial Trust 87,977 79,469 0.52 4,700 Frasers Logistics & Industrial Trust 3,088 3,313 0.02 541,100 Ips Securex Holdings Limited 78,740 58,619 0.39 64,200 Mapletree Greater China Companym 39,779 48,113 0.32 63,800 Mapletree Logistics Trust 44,078 47,340 0.31 321,700 SIIC Environment Holding Limited 174,161 147,996 0.99 210,800 Yangzijiang Shipbuilding Holdings Limited 188,639 139,991 0.92

1,490,059 1,236,027 8.16

109 MANULIFE GLOBAL FUND Asia Value Dividend Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Taiwan 13,000 Basso Industry Corp. 29,330 36,833 0.24 42,000 Farglory Land Development Company Limited 53,757 48,433 0.32 17,095 Johnson Health Tech Company Limited 38,064 24,960 0.16 3,000 Largan Precision Company Limited 231,704 273,877 1.81 144,878 Mega Financial Holding Company Limited 116,775 109,133 0.71 61,236 Mercuries Life Insurance Company 35,341 27,335 0.18

504,971 520,571 3.42 Thailand 465,400 AP Thailand pcl 89,690 97,346 0.64 13,100 AP Thailand pcl – NVDR 2,716 2,740 0.02 1,000 Asia Plus Group Holdings Public Company 103 94 0.00 Limited 187,800 Bangchak Petroleum pcl 186,680 171,021 1.13 85,300 Hana Microelectronics pcl 78,553 71,610 0.47 29,300 Namyong Terminal pcl 11,812 11,340 0.07 61,900 Spcg pcl 36,835 35,936 0.24 117,300 Supalai pcl 63,490 79,781 0.53

469,879 469,868 3.10

Equities Total 16,295,037 14,979,809 98.84

Warrants Equity

Malaysia 53,250 Mah Sing Group Bhd – Wts 21/Feb/2020 0 1,717 0.01 46,750 Signature International Bhd – Wts 0 3,363 0.02

0 5,080 0.03 Singapore 32,220 Ezion Holdings Limited – Wts 0 3,634 0.03

0 3,634 0.03

Warrants Equity Total 0 8,714 0.06

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 16,295,037 14,988,523 98.90

Portfolio of Investments 16,295,037 14,988,523 98.90

Other Net Assets 166,679 1.10

Net Assets 15,155,202 100.00

** The security is valued with the off-shore FX rate of CNH (refer to note 2.2 on page 248) a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 110 Asia Value Dividend Equity Fund

Investment Objective: The sub-fund aims to achieve capital appreciation through investing primarily in a portfolio of equities and equity-related securities of companies that distribute dividends, and are domiciled in, or derive significant income from, or have significant operations in the Far East ex-Japan region (“FarEast” in this context bears the same meaning as MSCI Barra ascribes to its index universe under the MSCI AC Far East ex-Japan Index – it comprises countries or markets including Thailand, Taiwan, South Korea, Singapore, Philippines, Malaysia, Indonesia, Hong Kong and China). These companies are listed or traded on the stock exchanges of the Far East ex-Japan region.

The underlying investment philosophy for the Sub-Fund is based on the belief that, while markets are inefficient and discrepancies exist in the short-run, prices in the longrun ultimately reflect fundamental values. The Sub-Fund seeks to identify under-valued securities comprising the MSCI AC Far East ex- Japan Index that will benefit from the upside correction between the market’s short-term inefficiency and long-term efficiency.

PERFORMANCE FROM 1 JULY 2015 TO 30 JUne 2016*

Asia Value Dividend Equity Fund Class AA -18.69% Asia Value Dividend Equity Fund Class AA Inc -18.68% MSCI AC Far East Free ex-Japan Index -12.23% PORTFOLIO REVIEW

Asian markets experienced large swings in the review period strained by uncertainties including the US rate hike, China’s economic slowdown and more recently, the Brexit. Against this bearish backdrop, Asian ex-Japan equities (as represented by the MSCI Far East (ex Japan) index) was down 12.2% in the 12 months while the sub-fund edged down by 18.7%.

Sector-wise, our holdings in consumer staples contributed positively to the sub-fund’s performance, while the financial sector was the key detractor. The sub-fund’s portfolio manager increased exposure to industrials and utilities in the period while trimming exposure in consumer discretionary and consumer staples.

MARKET REVIEW

The year under review was a challenging one for Asian ex Japan equities. In the wake of the A-share sell-offs in mid-2015, which was largely triggered by China’s curb on margin financing and moderating growth, the Chinese stockmarkets – particularly the H-share market – were driven down to crisis levels. Despite the government’s attempt to rein in the rout with market interventions, Chinese stockmarkets still ended in deep negative territory during the third quarter of 2015.

However, reform efforts remained unabated in spite of the stockmarket woe. In China, the long- awaited state-owned enterprise (“SOE”) reform plan was unveiled in the third quarter of 2015 to set the direction for SOE reform for the next five years. Meanwhile, policy has turned more expansionary with accelerated approvals in railway and other infrastructure projects. Also, measures such as auto sales tax cut and the lowering of down payment for first-home buyers were rolled out to support the economy.

On the back of accommodative policies, signs of stabilization started to emerge towards the end of 2015. Despite growing signs of fatigue in China’s “old economy” sectors, new economic indicators, such as movie box office and auto sales, all pointed to an expanding “new economy”. Besides, steadying housing prices and retail sales are hinting at an early-stage economic recovery.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

111 MANULIFE GLOBAL FUND Asia Value Dividend Equity Fund

Entering 2016, the “circuit breaker” mechanism in the A-share market, implemented in the first trading day of the New Year, sparked a new wave of global market panics. In light of this, the mechanism was swiftly suspended after only four days of implementation. As market sentiments settled, investors’ focus shifted back to China’s macro readings, which continued to point to a stabilizing economy: the Caixin purchasing managers’ index (“PMI”) showed encouraging signs in March, while the growth of China’s foreign reserves beat market expectation and reversed four months of decline in the same month.

South Korea continued to stumble on an uneven path of recovery in the period, with government stimulus remaining an important driver. The second half of 2015 was characterized by a 22 trillion won stimulus package and a cut in consumption tax. Consequently, Korean equities reversed their down trends in the third quarter of 2015. However, due to lower crude oil prices and sluggish growth in China, weak exports continued to be a drag on the Korean economy.

Responding to the prolonged export weakness and the growing pressure to ease policies, the Bank of Korea surprised the market with a rate cut in early June 2016. The base rate was lowered by 25 basis points to a historical low level of 1.25%, marking the first rate cut in a year. Although Korea’s trade link with Britain is limited, Brexit-fuelled volatilities are adding pressure on the central bank to cut key rate further this year.

ASEAN markets stayed in choppy water for most of the 12-month period. The sub-fund’s portfolio manager executed caution on these markets as the normalization of US monetary conditions and ongoing economic slowdown in China posed pressures on ASEAN currencies and asset prices. As such, the sub-fund maintained a relatively low exposure to the ASEAN region.

OUTLOOK

For three years in a row since 2013, the Asia ex Japan region has recorded a net outflow, and emerging markets have been unpopular amongst global investors. Brexit, in fact, may reverse this trend given the shortage of good investment opportunities around the world. While stock markets were hammered, the actual impact on Asia ex Japan fundamentally is rather limited – The region’s average export exposure to the UK is only around 0.9% of GDP, and UK represents only 3% of China’s exports.

China remains a top choice for investors given that it is one of the very few countries in the world still growing at a decent pace of 6% per annum. Social stability is relatively intact, and the government is carefully managing growth and pressing ahead with structural reforms. While Brexit may make it more difficult for China to maintain a stable currency, it is likely that the People’s Bank of China would resort to intervention to stabilize the RMB in case of huge capital outflow.

In South Korea, as the government-led corporate governance reforms prompt companies to improve shareholder return, policies including dividend tax deductions and penalties for cash hoarding are set to be implemented in 2016, favorable to Korea’s dividend story.

In ASEAN markets, sub-portfolio manager will continue to hunt for values selectively. Special attention is paid to infrastructure developments as various governments utilize fiscal stimulus to boost the economy. Currently, we favour Singapore with a focus on REITs and telecommunication companies, as it is likely to benefit from the yield chasing trend.

For bargain hunters, the current market weakness may present window for entry: The MSCI Asia ex Japan Index is trading at 12.9x P/E and 1.3x P/B as at end June, close to the lows during global financial crisis and the SARS epidemic. On top of attractive valuations, Asian companies also have a stronger tendency to increase dividend payouts, evidencing their stronger financial positions and an increasing focus on shareholder returns. Therefore, we remain constructive on the dividend strategy in Asia, especially when global interest rates are set to stay low for longer and policies shall stay accommodative within the region.

MANULIFE GLOBAL FUND 112 Asian Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Australia 14,200 CSL Limited 1,142,721 1,184,602 1.01 931,120 Healthscope Limited 1,859,424 1,980,342 1.69 42,980 Newcrest Mining Limited 714,246 735,128 0.63

3,716,391 3,900,072 3.33 Cayman Islands 916,000 Minth Group Limited 2,146,289 2,957,347 2.53 580,000 Sands China Limited 2,108,224 1,939,833 1.66 622,000 Shenzhou International Group Holdings 3,356,600 3,002,211 2.56 Limited 330,000 Tencent Holdings Limited 6,163,513 7,489,836 6.40

13,774,626 15,389,227 13.15 China 398,000 Anhui Conch Cement Company Limited 925,072 955,128 0.82 1,728,000 Beijing Capital International Airport Company 1,744,781 1,870,777 1.60 Limited 1,224,000 Beijing Capital International Airport Company 1,268,950 1,325,134 1.13 Limited – H 1,327,000 China Railway Construction Corp. Limited 1,443,621 1,653,851 1.41 2,042,000 Picc Property & Casualty Company Limited 3,761,429 3,189,755 2.72

9,143,853 8,994,645 7.68 Hong Kong 1,093,800 Aia Group Limited 6,015,114 6,534,113 5.58 446,500 China Mobile Limited 4,858,795 5,101,516 4.37 420,500 Kerry Logistics Network Limited 607,800 541,415 0.45 630,000 Techtronic Industries Company 2,476,884 2,618,601 2.24

13,958,593 14,795,645 12.64 India 170,437 Aurobindo Pharma Limited 1,888,931 1,874,957 1.60 136,874 Infosys Technologies Limited 2,414,409 2,374,295 2.03 36,149 Maruti Suzuki India Limited 2,159,857 2,242,596 1.92

6,463,197 6,491,848 5.55 Indonesia 827,900 Arwana Citramulia Tbk PT 37,140 38,225 0.03 4,630,900 Indofood Sukses Makmur Tbk PT 2,485,696 2,541,218 2.18 1,137,700 Matahari Department Store Tbk PT 1,546,267 1,722,250 1.47 5,647,100 Telekomunikasi Indonesia Tbk PT 1,463,586 1,701,167 1.45 30,367,900 Total Bangun Persada Tbk PT 1,625,153 1,769,881 1.51

7,157,842 7,772,741 6.64 Malaysia 888,000 Tenaga Nasional Bhd 3,062,568 3,105,747 2.65

3,062,568 3,105,747 2.65

113 MANULIFE GLOBAL FUND Asian Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Philippines 44,000 Globe Telecom Inc. 2,013,528 2,218,342 1.89 2,798,100 SM Prime Holdings Inc. 1,283,976 1,623,630 1.39

3,297,504 3,841,972 3.28 Republic of Korea (South) 9,310 Amorepacific Corp. 3,056,261 3,487,669 2.99 31,530 Coway Company Limited 2,630,881 2,860,520 2.44 4,228 Hugel Inc. 969,004 1,166,891 1.00 3,850 Medy-Tox Inc. 1,525,256 1,441,935 1.23 6,355 Samsung Electronics Company Limited 6,718,950 7,862,038 6.71 1,276 Samsung Electronics Company Limited Pfd 1,176,006 1,310,510 1.12

16,076,358 18,129,563 15.49 Singapore 1,866,600 Raffles Medical Group Limited 2,053,932 2,091,390 1.79 577,000 Sats Limited 1,740,161 1,759,643 1.50 367,700 Venture Corp. Limited 2,235,124 2,259,075 1.93

6,029,217 6,110,108 5.22 Taiwan 426,000 Advantech Company Limited 3,148,476 3,228,763 2.76 2,553,000 Aerospace Industrial Development Corp. 3,244,254 3,482,180 2.97 1,382,000 Ctci Corp. 1,847,150 2,013,508 1.73 1 FLEXium Interconnect Inc. 3 3 0.00 386,000 Hota Industrial Manufacturing Company Limited 1,616,030 1,794,842 1.53 1,136,000 Taiwan Semiconductor Manufacturing Company Limited 4,995,122 5,722,415 4.88 648,000 Tci Company Limited 2,538,919 2,892,579 2.47 515,000 TTY Biopharm Company Limited 1,673,254 1,811,969 1.55

19,063,208 20,946,259 17.89 Thailand 5,895,000 Eastern Polymer Group – NVDR 2,213,646 2,214,431 1.89 880,000 PTT Global Chemical pcl – NVDR 1,579,712 1,483,800 1.27 1,026,200 Robinson Department Store pcl – NVDR 1,454,739 1,978,544 1.69

5,248,097 5,676,775 4.85

Equities Total 106,991,454 115,154,602 98.37

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 106,991,454 115,154,602 98.37

Other transferable securities and money market instruments (2)

MANULIFE GLOBAL FUND 114 Asian Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Equities

Cayman Islands 351,600 China Metal Recycling Holdings Limited a 370,832 0 0.00

370,832 0 0.00

Equities Total 370,832 0 0.00

Total Other transferable securities and money market instruments (2) 370,832 0 0.00

Portfolio of Investments 107,362,286 115,154,602 98.37

Other Net Assets 1,913,039 1.63

Net Assets 117,067,641 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

115 MANULIFE GLOBAL FUND Asian Equity Fund

Investment Objective: The sub-fund aims to achieve capital growth by investing in a diversified portfolio of securities of companies listed on stock markets throughout Asia, including those in Australia, Hong Kong, Indonesia, Malaysia, New Zealand, the People’s Republic of China, the Philippines, Singapore, South Korea, Taiwan and Thailand, but not any of the stock exchanges in Japan. A proportion of the sub- fund may be invested in warrants and convertible bonds issued by, or in respect of, such companies.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Asian Equity Fund Class A -15.66% Asian Equity Fund Class AA -15.87% Asian Equity Fund Class I -15.29% Asian Equity Custom Benchmark -12.00% PORTFOLIO REVIEW

The performance stemmed from stock selection sector level and asset allocation decisions at the country. Positive contribution came from allocation decisions at the sector level and stock selection at the country level. Stock selection in Taiwan and Thailand were the primary positive contributors.

Throughout 2016, the sub-fund has considerably increased its exposure to Southeast Asia and reduced its overall weighting in North Asia, particularly in Hong Kong and China. This decision was driven by Southeast Asia’s accommodative fiscal and monetary policies, improved growth outlook given government measures, progress with infrastructure rollouts and the growth in consumption.

A Hong Kong-listed Chinese online gaming company detracted from performance as a subsidiary provided sales guidance that was lower than expected. Although the parent company reported first quarter 2016 sales and earnings that were higher than expected, the slowdown at the subsidiary is expected to delay the profit recovery plan for the overall group. Furthermore, a Hong Kong-listed Chinese property and casualty insurance company traded lower after announcing the acquisition of the parent company’s health insurance business. Investors were wary of the reason for the acquisition, the high valuation that was paid for a loss making business and the uncertainty from an operational front.

Positive contributors included a company that operates department stores in Thailand which traded higher as domestic consumption is picking up on the back of additional public holidays and government stimulus measures to support domestic travel. Another was a Hong Kong-listed Chinese automotive parts manufacturer that contributed to performance. Its growth prospects remain strong due to an improvement in sales and margins due to a shift in product mix.

From a sector perspective, stock selection in financials, materials, information technology and utilities detracted from performance. Offsetting some of the underperformance was the underweight in financials and stock selection in telecommunications. Additionally, consumer discretionary continues to perform well as stock selection and the overweight in the consumer discretionary sector contributed to performance. The sub-fund’s largest underweight remains financials.

MARKET REVIEW

Asian equities were higher in the past year despite the volatile start to 2016 as central banks in Asia cut interest rates and maintained accommodative monetary and guidance to support growth. During the reporting period, there were concerns regarding an economic slowdown, fears of Greek and British exit from the EU and interest rate hikes in the US. The Fed raised interest rates for the first time in close to 10 years in December 2015. The initial negative market shock from Britain’s exit from the EU (known as “Brexit”) in Asia was short lived as most Asian markets rose in the month of June.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 116 Asian Equity Fund

In China, the People’s Bank of China (PBoC) devalued the yuan in August in order to better reflect market forces, which led to further falls in Chinese equity markets. As a result, the PBoC announced a reduction in the required reserve ratio, and expectations grew that Beijing would reveal more stimulus programmes to spur growth. During the National People’s Congress Annual Work Report in March, the government released growth targets for 2016 highlighting China’s pro-growth stance. China A-shares were not included in the benchmark MSCI benchmark indices, citing concerns around China A-share market accessibility, Qualified Foreign Institutional Investors (QFII) quota allocation effectiveness, capital mobility policy changes and the effectiveness of new trading suspension policies. The Hong Kong Monetary Authority raised its base rate for the first time in nine years following the hike in US interest rates. Retail sales in Hong Kong remained weak during the period and the Hong Kong Tourism Board expects mainland Chinese visitor arrivals to drop by 3.2% with spending down 4.0% in 2016.

In Taiwan, the central bank lowered the benchmark interest rate four times over the past year to spur economic growth and boost real demand as export growth remained sluggish. The National Financial Stabilization Fund and four other government funds had bought more than NT$4 billion worth of stocks to help support the equity market in February but announced plans to pull out as market sentiment had stabilised.

In South Korea, equity markets fell to start the period as an outbreak of Middle East Respiratory Syndrome (MERS) forced the central bank to cut its policy rate by 25 basis points (bps) to a record-low 1.50%. As a result, the economy grew at the fastest pace in more than five years in the third quarter, driven by a strong rebound in consumer spending. However, Bank of Korea trimmed its 2016 growth forecasts as sluggish exports continued to weigh on the economy. The Ministry of Finance announced an additional US$17 billion stimulus package and S&P upgraded the country’s sovereign country rating to AA-.

India released its budget plans with the focus on developing rural infrastructures, recapitalising state banks, and maintaining spending on rails and roads. The central bank cut rates three times during the period and Reserve Bank of India Chief Raghuram Rajan unexpectedly announced he would be stepping down after his term ends in early September.

In Southeast Asia, most central banks cut interest rates to support growth. In Indonesia, parliament approved the long awaited Tax Amnesty Bill that the government feels will finance a widening budget given plans for increased infrastructure spending to spur economic growth. The central bank continued to cut interest rates, showing the government’s willingness to favour economic growth over stability as inflation dropped to its lowest level in more than six years in May. Optimism also grew in Thailand due to expectations of strong growth in its tourism industry after recovering from a bombing in Bangkok in August. Additionally, Indonesia and Thailand continued to make progress on the roll out of its infrastructure spending. In the Philippines, the country saw the largest foreign inflow in over a year as investors were encouraged by the new president’s policy continuity. First quarter 2016 year-on-year GDP growth was 6.9%; the highest in almost three years.

In Australia, the Reserve Bank of Australia cut the cash rate for the first time in a year to a record low 1.75% due to slower inflation, moderation in unemployment data and slowing wage growth.

117 MANULIFE GLOBAL FUND Asian Equity Fund

OUTLOOK

The Brexit shock has changed global growth/interest rate dynamics. The sub-fund’s portfolio manager (PM) expects central banks to maintain a longer period of accommodative monetary policies on the back of lower economic growth in developed markets.

The deterioration of the post-Brexit macro environment points to a preference for markets with higher domestic exposure and higher dividend support. In this case, the Asia ex-Japan region ranks favourably. Within the region, South Asia is expected to fare better than North Asia. India and the ASEAN markets are more leveraged to domestic growth, while Australia and the North Asian markets are more exposed to the precarious external environment.

Among the ASEAN markets, the sub-fund’s portfolio manager prefers Indonesia. The government made a big leap by passing the Tax Amnesty Bill into law. If executed well, the repatriation of offshore funds is expected to help support the country’s fiscal spending on infrastructure as well as ease pressure on the country’s balance of payment. It is also expected to contribute to growth in domestic consumption and private investments. Furthermore, the impact of government spending since the earlier part of the year is gradually being felt. The sub-fund’s portfolio manager expects to see improving asset turns and cash flow for most Indonesian corporates in due course. This should help alleviate the risk of non- performing loans in the banking system.

Investor sentiment towards China eased during the past quarter and the government remains in control of its capital account. However, growth momentum is expected to taper off in the second half of the year as the government reins in credit growth after a very strong first quarter. The government’s focus has shifted to supply side reform in the coal and steel sectors. While still in its early stage, the expectation of tighter supply has helped raise prices of these materials and thus helped improve the profitability of companies in these sectors. The sustainability of supply discipline, in the sub-fund’s portfolio manager’s view, is crucial to support the expectations that have already been well reflected in the valuations of stocks in the material sector.

In Taiwan, the new Democratic Progressive Party (DPP) government is more focused on domestic issues. It has launched a new economic plan targeting five sectors: a Taiwan “Silicon Valley” focused on IT/e-commerce, renewable “green” energy, precision machinery, biotechnology and defence. The PM will seek investment opportunities related to the new economic plan going forward as growth in the iPhone and related smartphone supply chain peaks. Taiwan equities also have strong dividend support, which is desirable in the current low growth, low rate environment.

In India, the sub-fund’s portfolio manager continues to like the domestic consumption theme. The sub- fund’s portfolio manager expects private consumption growth to rise driven by above normal monsoons and the implementation of the pay commission recommendations. Private consumption is expected to be the key driver of India’s economic growth while corporate investment and exports are likely to remain lacklustre in the near term.

MANULIFE GLOBAL FUND 118 Asian Small Cap Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Australia 1,111,771 Ainsworth Game Technology Limited 2,187,724 1,785,820 0.58 555,746 Altium Limited 1,887,388 2,669,792 0.86 1,056,809 Asaleo Care Limited 1,315,398 1,650,382 0.54 12,600,000 Beadell Resources Limited 2,737,270 3,560,596 1.16 370,000 Bellamy’s Australia Limited 2,993,110 2,809,287 0.91 462,000 Bluescope Steel Limited 1,944,496 2,188,517 0.71 1,048,153 Burson Group Limited 3,222,316 4,302,614 1.40 270,000 Carsales.Com Limited 2,469,367 2,473,677 0.80 767,942 Collins Foods Limited 2,116,705 2,421,379 0.79 43,000 Domino’s Pizza Enterprises Limited 2,161,031 2,178,590 0.71 1,200,000 Orora Limited 2,419,906 2,462,969 0.80 870,829 Rcg Corp. Limited 959,825 958,436 0.31 394,000 Retail Food Group Limited 1,363,084 1,620,279 0.53 1,300,000 St Barbara Limited 3,154,395 2,851,898 0.93 599,565 Syrah Resources Limited 2,051,449 2,661,823 0.87 635,298 Vita Group Limited 1,889,882 1,941,726 0.63

34,873,346 38,537,785 12.53 Bermuda 3,019,000 China Animal Healthcare Limited a 2,337,818 0 0.00 2,600,000 Digital China Holdings Limited 2,202,929 1,960,326 0.64

4,540,747 1,960,326 0.64 Cayman Islands 487,000 Airtac International Group 2,818,318 3,608,067 1.17 1,267,500 Bloomage Biotechnology Corp. Limited 2,198,162 1,960,325 0.64 15,396,000 Century Sage Scientific Holdings Limited 3,228,223 1,011,992 0.33 12,584,000 China Dongxiang Group Company 2,404,082 2,221,970 0.72 4,668,000 China Maple Leaf Educational Systems 2,534,175 4,187,348 1.36 Limited 1,724,000 Cogobuy Group 2,323,121 2,759,675 0.90 294,000 Gourmet Master Company Limited 2,208,440 2,588,293 0.84 4,200,000 Li Ning Company Limited 2,105,751 2,056,989 0.67 1,488,000 Minth Group Limited 3,817,016 4,804,075 1.56 1,721,000 Regina Miracle International Holdings Limited 2,324,655 2,271,328 0.74 284,000 Silergy Corp. 2,967,148 3,327,805 1.08 68,000 Silicon Motion Technology Corp. – ADR 3,094,945 3,149,080 1.02 2,436,000 Sinosoft Technology Group 1,288,438 1,372,011 0.45 868,000 Sunny Optical Technology Group Company 3,106,330 3,037,306 0.99 Limited 67,000 Tal Education Group – ADR 2,864,546 4,024,690 1.31 11,344,000 Tk Group Holdings Limited 2,567,708 2,880,258 0.94 110,000 Weibo Corp. – ADR 3,109,348 3,047,000 0.99 6,058,000 Xinyi Solar Holdings Limited 2,138,844 2,381,377 0.77

47,099,250 50,689,589 16.48

119 MANULIFE GLOBAL FUND Asian Small Cap Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

China 10,046,000 Huaneng Renewables Corp. – H 2,794,492 3,327,556 1.08 1,372,000 Travelsky Technology Limited – H 2,389,410 2,634,750 0.86 1,871,000 Xinjiang Goldwind Science & Technology 2,766,006 2,551,282 0.83 Company Limited

7,949,908 8,513,588 2.77 Hong Kong 12,588,000 China Financial Services Holdings Limited 1,157,716 1,103,226 0.36 4,479,600 Comba Telecom Systems Holdings Limited 814,272 652,404 0.21 5,382,000 K Wah International Holdings Limited 2,596,870 2,663,630 0.87 1,560,500 Kingboard Chemical Holdings Limited 2,809,141 3,093,279 1.01 5,051,000 Lee & Man Paper Manufacturing Limited 2,847,063 3,743,210 1.21 3,125,600 Man Wah Holdings Limited 2,898,601 4,495,692 1.47 6,518,000 Shanghai Jin Jiang International 2,486,921 2,125,367 0.69 17,730,000 Tongda Group Holdings Limited 3,504,676 3,450,521 1.12 596,000 Wheelock & Company Limited 2,531,389 2,784,539 0.91 620,750 Xinyi Automobile Glass Hong Kong 186,875 217,613 0.07 Enterprises Limited 4,966,000 Xinyi Glass Holdings Limited 3,022,981 3,648,216 1.18

24,856,505 27,977,697 9.10 India 234,000 Aditya Birla Nuvo Limited 3,402,946 4,233,659 1.38 530,000 Arvind Mills Limited 2,557,387 2,583,466 0.84 451,696 Berger Paints India Limited 1,919,661 1,848,421 0.60 368,057 CESC Limited 2,943,695 3,254,702 1.06 674,832 Indian Hotels Company Limited 1,295,569 1,277,284 0.42 645,584 KRBL Limited 2,355,444 2,774,799 0.90 252,678 Mahindra & Mahindra Financial Services 1,219,630 1,250,950 0.41 353,000 Natco Pharma Limited 2,966,127 3,033,167 0.99 321,992 PI Industries Limited 3,197,825 3,447,737 1.12 140,000 Pvr Limited 1,787,559 2,096,434 0.68 354,000 Ramco Cements Limited 2,564,322 2,903,819 0.94 122,953 Repco Home Finance Limited 1,408,559 1,409,792 0.46 189,767 SRF Limited 3,208,941 3,691,193 1.20 312,545 VA Tech Wabag Limited 2,293,212 2,742,975 0.89 474,000 Zee Entertainment Enterprises Limited 2,955,699 3,205,901 1.04

36,076,576 39,754,299 12.93 Indonesia 30,915,100 Bank Pembangunan Daerah Jawa 2,105,302 2,632,459 0.85 29,095,600 Ciputra Development Tbk PT 2,547,953 3,193,256 1.03 67,000,000 Pakuwon Jati Tbk PT 3,078,058 3,118,807 1.02 9,795,100 Surya Citra Media Tbk PT 2,268,423 2,446,591 0.80

9,999,736 11,391,113 3.70 Malaysia 1,197,525 Inari Amertron Bhd 890,829 882,216 0.28 2,500,000 My Eg Services Bhd 1,018,804 1,221,631 0.40

1,909,633 2,103,847 0.68 New Zealand 300,000 Fisher & Paykel Healthcare Corp. 1,668,195 2,142,459 0.70 572 Sky City Entertainment Group Limited 1,700 1,862 0.00

1,669,895 2,144,321 0.70

MANULIFE GLOBAL FUND 120 Asian Small Cap Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Philippines 25,578,000 Megaworld Corp. 2,501,210 2,528,021 0.82 27,000,000 Metro Pacific Investments Corp. 3,153,041 3,999,978 1.30 4,000,000 SM Prime Holdings Inc. 2,261,260 2,321,046 0.76

7,915,511 8,849,045 2.88 Republic of Korea (South) 112,000 Able C&C 3,264,281 3,412,950 1.11 161,577 Amotech Company Limited 2,663,291 2,377,683 0.77 28,054 Atgen Company Limited 980,685 991,275 0.32 63,338 Handsome Company Limited 2,341,017 2,161,034 0.70 87,789 Hanwha Techwin Company Limited 3,458,007 3,704,087 1.20 81,116 Interojo Company Limited 3,102,640 3,211,264 1.04 328,000 Jusung Engineering Company Limited 2,254,394 2,380,592 0.77 215,687 Kc Tech Company Limited 2,940,010 2,790,069 0.92 57,000 Kolon Industries Inc. 3,293,725 3,577,815 1.16 7,355 Korea Zinc Company Limited 3,138,348 3,243,778 1.05 16,100 Mando Corp. 2,489,318 3,040,114 0.99 19,022 S&T Motiv Company Limited 1,226,308 1,076,734 0.35 107,205 Silicon Works Company Limited 3,166,402 3,080,689 1.00 24,229 SK Chemicals Company Limited 1,511,666 1,527,133 0.50 36,000 SK Materials Company Limited 3,700,452 3,838,006 1.25 80,000 Soulbrain Company Limited 3,245,927 3,861,620 1.26 479,589 Vitzrocell Company Limited 3,837,397 4,913,104 1.60 139,456 Wonik IPS Company Limited 2,039,230 2,766,484 0.91 137,000 Woory Industrial Company Limited 3,109,983 4,055,830 1.32

51,763,081 56,010,261 18.22 Singapore 1,700,000 Ascendas Real Estate Investment Trust 3,053,842 3,128,293 1.02 1,531,000 Innovalues Limited 1,078,854 1,153,050 0.37 1,383,500 Mapletree Commercial Trust 1,523,136 1,519,315 0.49 3,613,900 Sheng Siong Group Limited 2,027,120 2,373,156 0.78

7,682,952 8,173,814 2.66 Taiwan 1,250,000 Basso Industry Corp. 2,663,089 3,541,636 1.15 2,547,000 Ctci Corp. 3,537,065 3,710,860 1.21 1 Cub Elecparts Inc. 0 11 0.00 904,000 Cyberpower Systems Inc. 2,892,010 3,264,691 1.06 458,000 Iron Force Industrial Company Limited 3,027,786 3,095,064 1.01 400,000 Kingpak Technology Inc. 3,479,647 3,924,473 1.28 1,877,000 Micro-Star International Company Limited 3,038,243 3,438,741 1.12 813,000 Shin Zu Shing Company Limited 2,655,158 2,658,831 0.86 1,589,000 Sinbon Electronics Company Limited 3,429,915 3,561,310 1.17 13,000 St Shine Optical Company Limited 291,969 291,360 0.09 416,000 Taimed Biologics Inc. 3,244,993 2,778,998 0.90 1,060,000 Taiwan Paiho Limited 2,612,329 2,825,869 0.92 2,025,000 Taiwan Union Technology Corp. 2,321,509 2,190,777 0.71 217,000 Tung Thih Electronic Company Limited 3,072,998 3,457,566 1.12 2,515,000 Walsin Technology Corp. 2,044,102 2,280,403 0.74 1,934,000 Win Semiconductors Corp. 3,054,244 3,914,870 1.27

41,365,057 44,935,460 14.61

121 MANULIFE GLOBAL FUND Asian Small Cap Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Thailand 3,300,000 Supalai pcl 2,186,799 2,244,482 0.73 31,318,100 Thai Reinsurance pcl – NVDR 3,020,670 2,156,826 0.70

5,207,469 4,401,308 1.43 United States 716,233 Magnachip Semiconductor Corp. 3,594,863 3,924,957 1.28

3,594,863 3,924,957 1.28

Equities Total 286,504,529 309,367,410 100.61

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 286,504,529 309,367,410 100.61

Other transferable securities and money market instruments (2)

Equities

Cayman Islands 1,065,600 China Metal Recycling Holdings Limited a 1,127,922 0 0.00

1,127,922 0 0.00

Equities Total 1,127,922 0 0.00

Total Other transferable securities and money market instruments (2) 1,127,922 0 0.00

Portfolio of Investments 287,632,451 309,367,410 100.61

Other Net Liabilities (1,877,951) (0.61)

Net Assets 307,489,459 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 122 Asian Small Cap Equity Fund

Investment Objective: The sub-fund aims to provide long-term capital growth for those investors who hold a long term investment view and are prepared to accept significant fluctuations in the value of their investments.The sub-fund’s investment portfolio will be made on a diversified basis, for which its underlying securities will consist mainly of equity related investments and equities of smaller capitalization companies in the Asian and/or Pacific region. A proportion of the sub-fund may be invested in warrants, bonds and convertible bonds issued by, or in respect of, such companies.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Asian Small Cap Equity Fund Class AA -20.83% Asian Small Cap Equity Fund Class AA (HKD) -20.81% Asian Small Cap Equity Fund Class I -20.28% MSCI Asia Pacific ex-Japan Small Cap Index -10.36% PORTFOLIO REVIEW

The performance stemmed from stock selection at country and sector levels. History tells us that during significant market declines, less liquid small cap equities typically underperform. This reporting period was no exception. A number of limited liquidity stocks with small market capitalisations were hit especially hard, despite sound operating fundamentals. Alpha generation proved unusually difficult in the current environment, which is characterised by a high correlation between stocks and fairly indiscriminate broad-based selling.

Several of the sub-fund’s top performing holdings from earlier years underperformed during the period, as profit-taking set in. In Hong Kong, two of the sub-fund’s longest term holdings that contributed substantial positive performance in 2013, 2014, and the first half of 2015 entered a period of subsequent underperformance due to a change in the fundamental outlook. For the electronic funds transfer point of sale (POS) company, we were concerned about slowing China growth. For the energy measurement and management systems company, slowing Chinese economic growth clouded the near-term outlook. As a result, we fully exited both positions.

The underweight and stock selection in Australia detracted from performance with the underperformance attributable to the sub-fund’s healthcare holdings.

Despite year-long volatility in China, the sub-fund’s holdings in the education sector were positive contributors to performance. The companies have sustainable earnings visibility from the increasing demand in China for quality education as incomes rise. Furthermore, government policy toward the sector is favourable.

Much like previous years, the sub-fund continued to perform well in Taiwan on the back of strong stock selection; specifically in our technology and auto parts holdings. An application software developer for online gaming was a key positive contributor to performance. Taiwan is now the Fund’s largest overweight position, followed by India. The sub-portfolio manager added to our India exposure in April as we are encouraged by the improvement in earnings this quarter, in contrast to the weak earnings over the past six quarters. However, stock selection detracted from performance due to a sharp fall in a leading producer and distributor of Indian films. This occurred on the back of a speculative media report that questioned the sales revenues from its overseas operations. While the company subsequently addressed these concerns, it may take time for investor confidence to be regained.

The sub-fund continues to have an underweight position in Australia, Singapore and Malaysia.

In spring 2016, we began reducing the sub-fund’s less liquid holdings, thus reducing the total number of names the sub-fund holds. While remaining a true small cap fund, the median market capitalisation of the Fund has gradually increased. As part of this process, we also increased our exposure to the Australian market and reduced the overweight in South Korea. The sub-portfolio manager added commodity exposure in Australia, including exposure to the gold sector, as we saw fundamentals improving due to rising prices and more limited capacity.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

123 MANULIFE GLOBAL FUND Asian Small Cap Equity Fund

MARKET REVIEW

Asian small cap equities were higher in the past year despite the volatile start to 2016, because central banks in Asia cut interest rates and maintained accommodative monetary and guidance to support growth. During the reporting period, there were concerns regarding an economic slowdown, fears of Greek and British exits from the EU and interest rate hikes in the US. The Fed raised interest rates for the first time in close to 10 years in December 2015. The initial negative market shock from Britain’s exit from the EU was short lived in Asia. Most Asian markets rose in the month of June.

In China, the People’s Bank of China (PBoC) devalued the yuan in August to better reflect market forces, which led to further falls in Chinese equity markets. As a result, the PBoC announced a reduction in the required reserve ratio, and expectations grew that Beijing would reveal more stimulus programmes to spur growth. During the National People’s Congress Annual Work Report in March, the government released growth targets for 2016 highlighting China’s pro-growth stance. The Hong Kong Monetary Authority raised its base rate for the first time in nine years following the hike in US interest rates. Retail sales in Hong Kong remained weak during the period and the Hong Kong Tourism Board expects mainland Chinese visitor arrivals to drop by 3.2%, with spending down 4.0% in 2016.

In Taiwan, the central bank lowered the benchmark interest rate four times over the past year. This was to spur economic growth and boost real demand as export growth remained sluggish. The National Financial Stabilization Fund and four other government funds had bought more than NT$4 billion worth of stocks to help support the equity market in February, but announced plans to pull out as market sentiment had stabilised.

In South Korea, equity markets fell to start the period as an outbreak of Middle East Respiratory Syndrome (MERS) forced the central bank to cut its policy rate by 25 basis points (bps) to a record-low 1.50%. As a result, the economy grew at the fastest pace in more than five years in the third quarter, driven by a strong rebound in consumer spending. However, Bank of Korea trimmed its 2016 growth forecasts as sluggish exports continued to weigh on the economy. The Ministry of Finance announced an additional US$17 billion stimulus package and S&P upgraded the country’s sovereign country rating to AA-.

India released its budget plans. The plans focused on developing rural infrastructures, recapitalising state banks, and maintaining spending on rails and roads. The central bank cut rates three times during the period. Unexpectedly, Reserve Bank of India Chief Raghuram Rajan announced that he would be stepping down after his term ends in early September.

In Southeast Asia, most central banks cut interest rates to support growth. In Indonesia, parliament approved the long awaited Tax Amnesty Bill. The government feels the bill will finance a widening budget given plans for increased infrastructure spending to spur economic growth. The central bank continued to cut interest rates, showing the government’s willingness to favour economic growth over stability as inflation dropped to its lowest level in more than six years in May. Optimism also grew in Thailand due to expectations of strong growth in its tourism industry after recovering from last August’s Bangkok bombing incident. Furthermore, Indonesia and Thailand continued to make progress on the rollout of its infrastructure spending. In the Philippines, the country saw the largest foreign inflow in over a year. Investors were encouraged by the new president’s policy continuity. First quarter 2016 year-on- year GDP growth was 6.9%; the highest in almost three years.

In Australia, the Reserve Bank of Australia cut the cash rate for the first time in a year to a record low of 1.75%. This was done due to slower inflation, moderation in unemployment data and slowing wage growth.

OUTLOOK

While Brexit and rising anti-globalisation around the world have increased equity risk premiums globally, Asia remains undervalued and relatively resilient in the face of these concerns. The sub-portfolio manager continue to identify companies with improving earnings profiles where the upside is not yet priced in. Many small cap companies have their own idiosyncratic growth drivers which are not impacted by the global slowdown. We thus remain constructive on the region despite heightened volatility.

MANULIFE GLOBAL FUND 124 China Value Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Bermuda 22,924,000 CGN Meiya Power Holdings Company Limited 5,055,747 3,102,264 0.41 245,000 Cheung Kong Infrastructure Holdings Limited 2,362,482 2,106,158 0.28 8,040,000 Haitong International Securities Group Limited 4,366,326 4,818,457 0.63 11,330,000 Luye Pharma Group Limited 10,731,939 6,936,215 0.90 28,000 Skyworth Digital Holdings Limited 21,452 22,879 0.00

22,537,946 16,985,973 2.22 Cayman Islands 29,000 58.com Inc. – ADR 1,583,548 1,345,890 0.18 1,847,940 Cheung Kong Property Holding 7,744,951 11,527,423 1.51 223,000 China Mengniu Dairy Company Limited 381,823 387,430 0.05 4,149,555 China Resources Land Limited 10,163,975 9,680,084 1.26 4,386,000 China State Construction International 7,421,856 5,777,214 0.75 Holdings Limited 1,296,940 CK Hutchison Holdings Limited 11,720,868 14,132,940 1.85 1,677,000 Hkbn Limited 2,123,680 1,761,529 0.23 45,700 JD.Com Inc. – ADR 1,272,396 932,737 0.12 100,500 Longfor Properties Company Limited 130,053 130,306 0.02 16,916,500 Real Gold Mining Limited a 27,921,022 2,180,266 0.29 414,000 Shenzhou International Group Holdings Limited 2,001,728 1,998,256 0.26 4,096,500 Shimao Property Holdings Limited 9,009,865 5,153,019 0.67 2,428,900 Tencent Holdings Limited 41,063,457 55,127,462 7.20

122,539,222 110,134,556 14.39 China 1,008,627 Anhui Gujing Distillery Company – B 3,469,378 4,139,069 0.54 3,639,000 AviChina Industry & Technology Company – H 2,587,648 2,518,578 0.33 36,744,000 Bank of China Limited – H 16,872,774 14,633,355 1.91 10,377,000 BBMG Corp. 4,922,243 3,089,462 0.40 27,959,000 CGN Power Company Limited – H 10,025,491 7,747,456 1.01 5,173,000 China Communications Construction 4,382,236 5,533,751 0.72 Company Limited – H 11,638,000 China Communications Services Corp. 5,827,721 6,059,806 0.79 Limited – H 30,969,000 China Construction Bank Corp. 23,501,584 20,436,012 2.67 271,912 China CYTS Tours Holding Company Limited – A 795,276 787,591 0.11 1,577,600 China International Capital Corporation – H 2,092,541 2,395,197 0.31

125 MANULIFE GLOBAL FUND China Value Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

China (continued) 3,393,000 China Life Insurance Company Limited – H 11,343,428 7,267,983 0.95 6,631,000 China Longyuan Power Group Corp. 7,865,244 5,486,723 0.72 1,908,027 China National Accord Medicines Corp Limited 5,122,872 11,164,502 1.46 13,952,000 China Petroleum & Chemical Corp. 12,182,835 10,069,862 1.32 4,525,000 China Railway Construction Corp. Limited 4,582,773 5,639,545 0.74 16,635,000 China Reinsurance Group Corp. 5,795,363 3,794,854 0.50 1,489,043 China Vanke Company Limited – H 1,708,992 2,917,090 0.38 18,719,607 Chongqing Changan Automobile Company 18,394,727 26,056,705 3.41 Limited 6,193,900 CRCC Corp. Limited 3,755,274 5,516,216 0.72 662,000 Dongfeng Motor Group Company Limited 696,973 689,395 0.09 1,385,600 Fuyao Glass Industry Group – H 3,046,583 3,207,327 0.42 2,556,901 Fuyao Glass Industry Group Company Limited 5,789,567 5,366,700 0.70 3,968,000 Guangshen Railway Company Limited – H 1,958,948 1,881,996 0.24 18,526,000 Guodian Technology & Environment Group 4,646,351 990,898 0.13 Corp. Limited – H 26,916,000 Huadian Fuxin Energy Corp. – H 11,354,476 5,897,371 0.77 40,396,000 Huaneng Renewables Corp. – H 14,159,618 13,380,442 1.75 2,194,200 Huatai Securities Company Limited 7,019,521 4,660,499 0.61 25,847,160 Industrial & Commercial Bank of China – H 16,678,817 14,291,214 1.87 1,685,854 Inner Mongolia Yili Industrial Group Company 4,002,075 4,213,286 0.55 Limited 9,400 Kweichow Moutai Company Limited – A 351,050 411,393 0.05 4,881,040 Luthai Textile Company Limited – B 5,328,772 6,328,625 0.83 12,015,000 Metallurgical Corp. of China Limited 3,676,632 3,670,043 0.48 5,453,400 New China Life Insurance Company – H 18,571,409 19,363,683 2.53 12,868,000 People’s Insurance Company – H 5,733,007 4,925,684 0.64 42,572,000 Petrochina Company Limited 44,668,590 29,025,434 3.79 1,318,000 Ping An Insurance Group Company of China 6,501,315 5,801,030 0.76 Limited 2,543,100 Poly Real Estate Group – A 4,111,031 3,290,331 0.43 1,240,000 Qingdao Port International – H 898,473 560,955 0.07 2,460,687 Shanghai Friendship Group Inc. Limited – B 4,768,415 3,708,255 0.48 942,469 Shanghai Mechanical & Electrical Industry 2,653,831 1,918,866 0.25 Company – B 632,700 Shanghai Pharmaceuticals Holding Company 1,773,150 1,392,787 0.18 Limited 3,596,000 Sinotrans Limited 2,695,574 1,589,691 0.21 64,000 Zhejiang Expressway Company Limited 58,682 60,132 0.01 747,000 Zhuzhou Csr Times Electric Company Limited – H 4,557,930 4,101,372 0.54 2,930,240 ZTE Corp. – H 4,437,471 3,693,525 0.48

325,366,661 289,674,691 37.85

MANULIFE GLOBAL FUND 126 China Value Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Hong Kong 3,807,800 Aia Group Limited 17,657,502 22,746,934 2.98 73,000 Beijing Enterprises Holdings Limited 551,426 412,094 0.05 2,561,500 Boc Hong Kong Holdings Limited 7,780,335 7,659,164 1.00 5,778,000 China Everbright Limited 11,536,711 11,095,907 1.44 1,116,000 China Merchants Holdings International 3,699,622 2,962,992 0.39 Company Limited 2,191,500 China Mobile Limited 24,205,185 25,039,129 3.27 502,000 China Overseas Land & Investment Limited 1,400,562 1,585,144 0.21 12,564,000 China Power International Development Limited 3,897,731 4,615,001 0.60 5,112,647 China Taiping Insurance Holdings Company 15,348,975 9,515,070 1.24 Limited 9,790,000 China Unicom Hong Kong Limited 14,449,912 10,119,430 1.32 81,000 CLP Holdings Limited 757,691 824,729 0.11 11,634,000 CSPC Pharmaceutical Group Limited 6,888,452 10,346,112 1.35 1,027,600 Dah Sing Banking Group Limited 1,695,696 1,896,558 0.25 456,500 Henderson Land Development Company 2,308,127 2,562,288 0.33 Limited – ADR 157,247 Hong Kong Exchanges and Clearing Limited 3,637,542 3,802,018 0.50 636,800 Hongkong Land Holdings Limited 3,794,650 3,878,112 0.51 2,770,000 Hutchison Telecommunications Hong Kong 962,997 935,363 0.12 Holdings Limited 21,100 Jardine Matheson Holdings Limited 1,224,246 1,230,341 0.16 27,600 Jardine Strategic Holdings Limited 857,349 832,968 0.11 3,641,835 Pccw Limited 2,002,713 2,440,746 0.32 431,000 Pou Sheng International (Holdings) 118,967 124,430 0.02 85,000 Power Assets Holdings Limited 830,862 778,363 0.10 292,000 Sino Land Company Limited 425,563 476,448 0.06 13,219,500 Sino-Ocean Land Holdings Limited 9,592,899 5,707,670 0.75 196,500 Smartone Telecommunications Holding Limited 310,115 349,495 0.05 434,000 Sun Hung Kai Properties Limited 5,126,494 5,204,813 0.68 1,365,800 Swire Properties Limited 4,203,743 3,617,412 0.47 13,208,000 Tao Heung Holdings Limited 4,352,074 3,115,209 0.42 313,500 Techtronic Industries Company 1,186,754 1,303,066 0.17 48,000 Yue Yuen Industrial Holdings Limited 179,054 189,614 0.02

150,983,949 145,366,620 19.00 Singapore 12,447,760 SIIC Environment Holding Limited 8,014,868 5,726,506 0.75

8,014,868 5,726,506 0.75 Taiwan 2,197,000 Advanced Semiconductor Engineering Inc. 2,469,729 2,496,041 0.33 6,878,600 Cathay Financial Holding Company Limited 10,993,544 7,463,040 0.98 507,000 Chunghwa Telecom Company Limited 1,706,557 1,830,971 0.24 786,000 Ctci Corp. 1,132,256 1,145,165 0.15 1,394,578 Delta Electronics Inc. 9,135,947 6,743,961 0.88 1,064,000 Far Eastone Telecommunications Company 2,334,962 2,569,371 0.34 Limited

127 MANULIFE GLOBAL FUND China Value Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Taiwan (continued) 1,855,000 Formosa Chemicals & Fibre Corp. 4,774,713 4,657,755 0.61 632,000 Formosa Plastics Corp. 1,494,915 1,524,208 0.20 9,048,000 Fubon Financial Holding Company Limited 14,675,656 10,560,033 1.38 7,229,040 Hon Hai Precision Industry Company Limited 21,191,335 18,487,674 2.41 17,890,000 Kinpo Electronics 8,081,397 6,710,323 0.88 34,000 Kinsus Interconnect Technology Corp. 70,318 74,199 0.01 79,000 Largan Precision Company Limited 6,095,884 7,212,073 0.93 3,417,000 Mega Financial Holding Company Limited 2,409,724 2,573,943 0.34 264,000 Novatek Microelectronics Corp. Limited 894,912 977,956 0.13 794,000 Pegatron Corp. 1,669,518 1,668,775 0.22 2,601,000 Quanta Computer Inc. 5,390,507 4,918,332 0.64 17,141,816 Shin Kong Financial Holding Company Limited 5,149,275 3,353,002 0.44 1,030,000 Siliconware Precision Industries Company 1,543,455 1,562,923 0.20 10,174,000 Taiwan Semiconductor Manufacturing 41,234,887 51,249,872 6.70 Company Limited 1,418,000 Uni-President Enterprises Corp. 2,441,757 2,791,243 0.36

144,891,248 140,570,860 18.37

Equities Total 774,333,894 708,459,206 92.58

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 774,333,894 708,459,206 92.58

Other transferable securities and money market instruments (2)

Equities

Bermuda 7,146,000 Euro-Asia Agricultural Holdings Company 1,191,427 0 0.00 Limited a

1,191,427 0 0.00 Hong Kong 8,304,000 Peace Mark Holdings Limited a 1,573,331 0 0.00

1,573,331 0 0.00

Equities Total 2,764,758 0 0.00

Total Other transferable securities and money market instruments (2) 2,764,758 0 0.00

Portfolio of Investments 777,098,652 708,459,206 92.58

Other Net Assets 56,768,868 7.42

Net Assets 765,228,074 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 128 China Value Fund

Investment Objective: The sub-fund aims to achieve long-term capital growth through investments primarily in companies with substantial business interests in the Greater China Region (which includes the PRC, Hong Kong and Taiwan), which are listed or traded on the stock exchanges of Shanghai, Shenzhen, Hong Kong, Taipei or other overseas exchanges, and which are currently undervalued but which may have long-term growth potential. The Sub-Fund’s investments will generally be in equity securities of its target companies, although it may also invest in convertible bonds and depository receipts issued by such companies, in all cases, within the limits of the investment and borrowing powers and restrictions contained in the Prospectus. Investments of the Sub-Fund may also include A-Shares and/or B-Shares listed on the Shanghai Securities Exchange and the Shenzhen Stock Exchange in Mainland China. The Sub-Fund is not investing at the A-Share market for the time being, but may invest in it with a maximum of 30% of its net asset value at a time that the Directors and Investment Manager determine. Prior notice will be given to the relevant investors and the name of the QFII will be disclosed should the Sub-Fund determine in the future to invest in the A-Share market. The Sub-Fund may also invest in fixed-income securities and hold cash on an ancillary basis, if determined to be appropriate by the Investment Manager.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

China Value Fund Class A -26.69% China Value Fund Class AA -26.87% FTSE All World Greater China Index -15.96% Hang Seng Index -17.59% Hang Seng “Red Chips” Index -25.72% Hang Seng “H Shares” Index -29.99% MSCI China Free Index -23.37% PORTFOLIO REVIEW

The Chinese stockmarkets had undergone waves of volatilities in the review period. Against this tumultuous backdrop, the sub-fund declined by 26.7% in the year under review. For reference, the FTSE Greater China Index dropped 16.0% over the same period while the MSCI China Index and Hang Seng Index were down 23.4% and 17.6% respectively. The market stabilized somewhat entering June 2016, the Fund edged up 1.7% while the aforementioned indices increased 2.8%, 1.1% and 1.6% respectively during the month.

The sub-fund underperformed the market (as represented by the FTSE Greater China Index) over the past year primarily due to the stock selection in the financial sector. Meanwhile, the heightened cash allocation provided some cushion to the Fund’s performance amid the broad-based sell-off in the second half of 2015. After the strong stock market rally in the middle of 2015, we started to de-risk the portfolio by increasing cash level gradually throughout the third quarter of 2015.

Our cautious view justified the heightened cash positions entering 2016. At the start of the year, the market sell-off was amplified by the short-lived “circuit breaker” mechanism, lower China growth expectation and concerns on RMB depreciation. While investors remain guarded about Chinese stocks, we have started deploying cash into selective stocks in the second quarter of 2016 as we saw attractive valuations after the market rout. Consequently, the cash level dropped to 7.4% as at end-June. As always, we will continue to optimize our cash deployment strategies in accordance with the fast- changing investment environment.

During the period, we have increased the fund’s holdings in Taiwan technology companies as these companies have strong position in global technology markets but trading at a relatively low valuation. We also added exposure to stocks in some emerging industries in China such as internet and service related companies. We believe these sectors will benefit from China’s transition into a domestic consumption driven economy. Lastly, we have also increased stake in some non-cyclical companies mainly for seeking yield and increasing stability for the Fund. Looking ahead, we will continue to adopt our value strategy to select stocks with a focus mainly put in the mid to large market capitalization stocks.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

129 MANULIFE GLOBAL FUND China Value Fund

MARKET REVIEW

China’s stockmarkets took investors on a difficult ride for most of the review period since the major correction in June. In the third quarter of 2015, China’s growth came in at 6.9% year-on-year, below the government’s target of 7%, reigniting the market’s concerns over China’s growth slowdown. Meanwhile, the Fifth Plenum of the Chinese Communist Party concluded in October 2015 with highlights on innovation, price liberalization, strengthening of social safety net and the abolishment of one-child policy. The reform initiatives helped stabilize market sentiment somewhat.

Expansionary policies remained a market focus during the period. In late October 2015, the People’s Bank of China (“PBoC”) announced to cut the one-year lending and deposit rates by 25 basis points to boost money velocity and to reduce the reserve requirement ratio (“RRR”) by 50 basis points to curb capital outflow pressure. However, the policy drive failed to clear market worries and the Chinese stockmarkets entered 2016 with a heap of uncertainties.

Signs of stabilization started to emerge near the end of March 2016: the Caixin purchasing managers’ index (“PMI”) showed encouraging signs during the month, while the growth of China’s foreign reserves reversed four months of downward trend. On the policy front, in the annual meeting of the National People’s Congress, the government has announced a growth target of 6.5% to 7% for 2016. To attain the target, a bigger fiscal deficit of 3% of GDP is expected down the road while monetary policies will likely remain accommodative in the medium term.

In the second quarter of 2016, the Brexit shock has come at a time when the global economy is struggling with weak economic and profits growth. The British vote against more integrated global markets shows that protectionism and social unrest remain an elevated investment risk. As a result, we expect further pressure on global trade and a knock-on effect on the global economy. We have entered an extended period of uncertainty, which now weighs not only on the developing countries but also the developed world.

The year 2016 marks the fifth year of the long winter for value investors. Since the last quarter of 2011, the growth style has outperformed the value style in China-related stockmarkets most of the time1. In a risk-off mode, investors tend to look for opportunities that are priced at attractive level with higher safety margin. With that said, as a seasoned value investor we continue to abide by the time-tested principle that the market will reward those who maintain a medium- to long-term perspective in challenging times. We uphold the proven belief that in the long run, the promising returns of value-investing will pay for any short-term underperformance.

OUTLOOK

Despite the Brexit-induced volatility in China and Hong Kong stockmarkets, we believe the situation was not as bad as it might seem. Here are our reasons:

1. Amongst all the major economies around the world, China is one of the very few that is still growing at a decent pace of 6% per annum. Despite the moderation in growth from its peak, we don’t believe China is entering an economic hard-landing or debt driven crisis. Social stability in China is relatively intact, and the government is carefully walking a tightrope between managing growth and pressing ahead with structural reforms.

2. As for the vulnerabilities from Brexit, the business of most Chinese companies should not be fundamentally affected, given the UK is not a particularly important economy for China in terms of foreign direct investment and trade. UK represents only 3% of China’s exports, and demand for Chinese products are unlikely to dry up due to Brexit. In the unlikely case of economic fallout, the government would still have sufficient fiscal tools to keep the economy in check.

3. Despite MSCI’s delay in China A-shares inclusion, the mid- to long-term strategy is still to play on China’s increasing presence in the global markets. It is only a matter of time that China opens up for foreign investors, and as one of the largest equity markets in the world it will be a market that they cannot ignore.

MANULIFE GLOBAL FUND 130 China Value Fund

4. Brexit may make it more difficult for China to maintain a stable currency. It is believed that the pound sterling and Euro make up 3.9% and 21.5% of China’s currency basket, respectively; as these two currencies weakened sharply in response to Brexit, it would drag the RMB down against the dollar, which is not helpful to Beijing’s combat of capital outflow. It is likely that the People’s Bank of China would resort to intervention to stabilize the RMB, and it has the resources to do so. One can recall that during the global financial crisis of 2008 the Chinese leadership were able to insulate China from the crisis with various forceful measures. The punters are likely to remain wrong.

5. The negative global investment sentiment towards China has driven its valuation to near crisis level: MSCI China is trading at a forward price-to-book ratio of 1.3 times against a 10-year average of 1.9 times (as of end Jun 2016). The current risk aversion environment may actually trigger a reversal and bring the value style back in favour.

For bargain hunters, China-related stocks can be very attractive in the current global environment which is characterized by a shortage of good investment opportunities.

1 Based on Bloomberg data: MSCI China Growth Index Total Return was 34.77% and MSCI China Value Index Total Return was 27.82% respectively in the period of 30 Sept 2011-30 June 2016.

131 MANULIFE GLOBAL FUND Dragon Growth Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Bermuda 2,680,000 Beijing Enterprises Water Group Limited 1,652,883 1,609,607 0.84 410,000 Cheung Kong Infrastructure Holdings Limited 3,197,938 3,524,590 1.84 2,764,000 China Animal Healthcare Limited a 1,811,367 0 0.00 804,000 China Resources Gas Group Limited 2,162,920 2,435,134 1.27 1,669,000 Digital China Holdings Limited 1,784,004 1,258,378 0.65

10,609,112 8,827,709 4.60 Cayman Islands 166,500 Aac Technologies Holdings Inc. 943,136 1,413,087 0.74 136,880 Alibaba Group Holding Limited 10,610,949 10,775,194 5.62 36,633 Beigene Limited – ADR 921,371 1,101,921 0.57 662,500 Bloomage Biotechnology Corp. Limited 1,146,889 1,024,628 0.53 423,532 Cheung Kong Property Holding 2,326,066 2,641,987 1.38 1,971,000 China Medical System Holdings Limited 2,299,763 2,997,558 1.56 8,786,000 China Resources Cement Holdings Limited 2,705,869 2,808,290 1.46 1,646,444 China Resources Land Limited 3,977,055 3,840,825 2.00 414,532 CK Hutchison Holdings Limited 4,864,665 4,517,214 2.36 764,000 Minth Group Limited 1,965,929 2,466,608 1.29 2,608,000 Modern Dental Group Limited 1,420,592 1,126,034 0.59 60,000 New Oriental Education & Technology 2,349,272 2,506,800 1.31 Group – ADR 490,000 Shenzhou International Group Holdings Limited 2,372,406 2,365,086 1.23 4,060,000 Sinosoft Technology Group 2,369,156 2,286,686 1.19 3,093,000 Sunac China Holdings Limited 2,051,609 1,913,463 1.00 793,300 Tencent Holdings Limited 10,017,764 18,005,111 9.39 3,979,000 Uni-President China Holdings Limited 3,205,235 3,343,648 1.74 1,326,000 Vinda International Holdings 2,140,488 2,290,062 1.19 154,284 Weibo Corp. – ADR 3,748,982 4,273,667 2.23 6,233,000 Wisdom Holdings Group 2,638,073 1,887,835 0.98 3,220,000 Xinyi Solar Holdings Limited 1,191,842 1,265,770 0.67

65,267,111 74,851,474 39.03 China 4,627,000 Bank of China Limited – H 2,488,312 1,842,710 0.96 2,286,000 Beijing Capital International Airport Company 2,278,961 2,474,882 1.29 Limited – H 395,000 Byd Company Limited 1,832,493 2,364,731 1.23 2,456,000 China Communications Construction 2,446,754 2,627,275 1.37 Company Limited – H 13,089,000 China Construction Bank Corp. 9,245,134 8,637,249 4.50 950,500 China Merchants Bank Company Limited – H 2,569,500 2,124,224 1.11 4,792,000 China Petroleum & Chemical Corp. 3,630,257 3,458,628 1.80 1,831,500 China Shenhua Energy Company Limited 3,079,811 3,366,088 1.76 120,446 Ctrip.com International Limited – ADR 5,212,776 4,916,606 2.56 7,706,000 Industrial & Commercial Bank of China – H 5,782,697 4,260,743 2.22 1,976,000 Picc Property & Casualty Company Limited 3,509,803 3,086,658 1.61

MANULIFE GLOBAL FUND 132 Dragon Growth Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

China (continued) 1,046,500 Ping An Insurance Group Company of China Limited 5,322,790 4,606,053 2.40 2,683,000 Weichai Power Company Limited 3,201,397 2,745,618 1.43 315,300 Zhengzhou Yutong Bus Company Limited – A 1,046,870 935,954 0.49 513,500 Zhuzhou Csr Times Electric Company Limited – H 3,286,257 2,819,350 1.48

54,933,812 50,266,769 26.21 Hong Kong 1,852,000 Aia Group Limited 9,121,782 11,063,429 5.77 231,000 Asm Pacific Technology Limited 1,639,083 1,650,869 0.86 564,500 Boc Hong Kong Holdings Limited 1,769,409 1,687,916 0.88 1,607,000 China Everbright International Limited 1,645,866 1,781,203 0.93 937,500 China Mobile Limited 10,577,468 10,711,468 5.59 746,000 China Unicom Hong Kong Limited 1,071,965 771,103 0.40 3,068,000 Cnooc Limited 3,018,390 3,803,903 1.99 929,000 Galaxy Entertainment Group Limited 5,275,047 2,753,864 1.44 419,100 Henderson Land Development Company Limited – ADR 2,116,702 2,352,366 1.23 196,000 Hong Kong Exchanges and Clearing Limited 3,831,932 4,739,013 2.47 1,454,000 Kerry Logistics Network Limited 1,823,471 1,872,099 0.97 2,358,000 Kunlun Energy Company Limited 1,955,741 1,941,975 1.01 375,000 Link Real Estate Investment Trust 2,121,183 2,551,904 1.33 344,000 Mtr Corp. 1,564,136 1,737,975 0.91 261,000 Power Assets Holdings Limited 2,285,071 2,390,031 1.24 5,290,000 Shanghai Jin Jiang International 1,986,341 1,724,945 0.90 1,034,200 Swire Properties Limited 3,114,305 2,739,147 1.43

54,917,892 56,273,210 29.35

Equities Total 185,727,927 190,219,162 99.19

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 185,727,927 190,219,162 99.19

Portfolio of Investments 185,727,927 190,219,162 99.19

Other Net Assets 1,560,634 0.81

Net Assets 191,779,796 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

133 MANULIFE GLOBAL FUND Dragon Growth Fund

Investment Objective: The sub-fund aims to achieve capital growth by investing in a diversified portfolio of public companies which are listed on the Stock Exchange of Hong Kong Limited and/or the Growth Enterprise Market of The Stock Exchange of Hong Kong Limited and/or, although not incorporated or listed on either stock exchange in Hong Kong, are incorporated or listed on a stock exchange in any other jurisdiction and have substantial business interests in Hong Kong and/or derive a substantial portion of their revenue from their business carried in Hong Kong. A proportion of the sub-fund may also be invested in equity warrants and convertible bonds issued by, or in respect of, such companies.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Dragon Growth Fund Class A -23.25% Dragon Growth Fund Class AA (HKD)** -23.43% MSCI Zhong Hua Index -19.76% PORTFOLIO REVIEW

The performance was attributable to stock selection at country and sector levels and asset allocation decisions at the country level.

Stock selection in Hong Kong and financials were the main detractors to performance. The sub-fund’s holding in a Chinese sports company listed in Hong Kong was the main performance detractor as the company reported lower-than-expected earnings. There was downward pressure in the company’s advertising income as the broader market spent less on marketing activities due to subdued economic growth. In addition, the company experienced a transition in business model in 2015 where there was increased capital expenditure, hence dragging down the year-or-year net profit. A Chinese life insurance company was negatively impacted by further renminbi depreciation and exposure to the A-share market given the sell-off in the Chinese domestic A-share market in January.

Key contributors included the overweight and strong stock selection in the information technology sector. An electronics component manufacturer for mobile devices that specialises in acoustics and non- acoustic products performed strongly. Although 2016’s first quarter was impacted by Apple’s revised guidance, the growth prospect of the company remain strong due to increased capacity for the non- acoustic segment, upgrades in product technology and greater penetration into their Chinese clients. The sub-fund’s holding in one of China’s leading micro blogging platforms performed well due to an increasing subscriber base which would allow the company to grow its mobile advertising business. The sub-fund’s portfolio manager believes greater mobile internet usage and greater user engagement will lead to greater mobile advertising revenue.

Strong stock selection in China was offset by stock selection in Hong Kong. Stock selection in a number of sectors, particularly financials, consumer discretionary, and industrials negatively impacted the sub- fund.

China remain the sub-fund’s largest overweight. The sub-fund continues to have an underweight in Hong Kong.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. ** Previously Class AA

MANULIFE GLOBAL FUND 134 Dragon Growth Fund

MARKET REVIEW

In China, the People’s Bank of China (PBoC) devalued the yuan in August to better reflect market forces, which led to further falls in Chinese equity markets. As a result, the PBoC announced a reduction in the reserve requirement ratio, and expectations grew that Beijing would reveal more stimulus programmes to spur growth. During the National People’s Congress Annual Work Report in March, the government released growth targets for 2016 highlighting China’s pro-growth stance. China A-shares were not included in the benchmark MSCI benchmark indices, citing concerns around China A-share market accessibility, Qualified Foreign Institutional Investors (QFII) quota allocation effectiveness, capital mobility policy changes and the effectiveness of new trading suspension policies. Hong Kong’s monetary authority raised its base rate for the first time in nine years following the hike in US interest rates. Retail sales in Hong Kong remained weak during the period and the Hong Kong Tourism Board expects mainland Chinese visitor arrivals to drop by 3.2% with spending down 4.0% in 2016.

OUTLOOK

The China and Hong Kong markets held up better than expected despite the Brexit driven sell-off. Many investors believe the delay in the Fed rate hike would have a more positive overall effect. The PBoC will continue taking on a loose monetary policy stance. If the global environment continues to deteriorate, China’s government may accelerate infrastructure fixed asset investment again to support growth. Investors are likely to be concerned over further renminbi depreciation, until the intentions of policymakers are fully understood. Volatility in Chinese stocks is likely to continue and the sub-fund’s portfolio manager will overweight the sub-fund towards companies with better earnings visibility and a good management track record in tougher times.

The sub-fund’s portfolio manager has identified a number of companies that are seeing improvement in their operations, particularly in the machinery and gas distribution sectors. The sub-fund is overweight in these two sectors as the sub-fund’s portfolio manager remains optimistic in the growth potential. The sub-fund’s portfolio manager believes that performance will reflect its positive fundamental outlook in the coming quarters.

The sub-fund’s portfolio manager is selectively adding to companies that have better earnings visibility in the gas distribution and environmental protection sectors during this time of uncertainty. The sub- fund’s portfolio manager also continues to like the electronic auto component car makers. Their orders remain robust given the growing demand for advanced driver assistance systems and higher content per vehicle.

135 MANULIFE GLOBAL FUND Emerging Eastern Europe Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Austria 83,979 Erste Group Bank AG 2,197,772 1,864,771 1.89

2,197,772 1,864,771 1.89 Canada 1,052,136 Bankers Petroleum Limited 2,440,670 1,689,544 1.72

2,440,670 1,689,544 1.72 Cyprus 126,694 Ros Agro plc – GDR 2,023,288 1,897,243 1.93

2,023,288 1,897,243 1.93 Czech Republic 38,740 Komercni Banka AS 1,158,935 1,449,528 1.47 675,567 Moneta Money Bank As Monet Cp 1,943,121 1,989,766 2.02

3,102,056 3,439,294 3.49 Poland 33,844 Bank Zachodni WBK SA 2,985,420 2,243,221 2.28 473,152 Powszechna Kasa Oszczednosci Bank 5,448,302 2,779,185 2.82 Polski SA

8,433,722 5,022,406 5.10 Romania 10,564,206 Sc Fondul Proprietatea Sa Fp Ro 1,887,476 1,879,487 1.91

1,887,476 1,879,487 1.91 Russian Federation 220,470 Lenta Limited – Reg 2,930,304 1,584,077 1.61 232,259 Lukoil PJSC – ADR 13,586,773 9,619,534 9.78 213,998 MMC Norilsk Nickel PJSC – ADR 3,649,436 2,829,054 2.87 17,261 Phosagro OAO 239,168 254,168 0.26 204,975 Phosagro OAO – GDR 2,164,585 3,018,257 3.06 237,849 Tatneft – ADR 7,973,470 7,219,907 7.34 246,314 X5 Retail Group NV – GDR – Reg 3,885,210 4,895,490 4.96

34,428,946 29,420,487 29.88 Turkey 830,918 Akbank TAS 2,366,251 2,355,000 2.39 392,774 Arcelik AS 2,481,576 2,570,927 2.61 121,802 Coca-Cola Icecek AS 2,942,679 1,477,132 1.50 415,649 Koc Holding AS 1,819,106 1,875,495 1.90 364,235 Tav Havalimanlari Holding AS 1,358,836 1,575,315 1.60 368,488 Tofas Turk Otomobil Fabrik 1,773,960 3,011,120 3.06 71,961 Tupras-Turkiye Petrol Rafinerileri 1,771,419 1,586,093 1.61 58,330 Turk Traktor ve Ziraat Makineleri AS 911,746 1,697,688 1.72 2,085,642 Turkiye Garanti Bankasi AS 7,394,964 5,484,544 5.58 7,221,894 Turkiye Sinai Kalkinma Bankasi AS 3,755,170 3,317,509 3.37

26,575,707 24,950,823 25.34

MANULIFE GLOBAL FUND 136 Emerging Eastern Europe Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United Kingdom 385,521 International Personal Finance plc 1,784,248 1,445,494 1.47 392,204 Nostrum Oil & Gas plc 4,281,491 1,608,621 1.63

6,065,739 3,054,115 3.10 Virgin Islands (British) 36,331 Luxoft Holding Inc. 2,021,264 1,907,922 1.94 97,845 Mail.Ru Group Limited – GDR 2,863,940 1,778,333 1.81

4,885,204 3,686,255 3.75

Equities Total 92,040,580 76,904,425 78.11

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 92,040,580 76,904,425 78.11

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Equities

Russian Federation 2,549,200 Alrosa Company Limited 2,112,412 2,739,090 2.78 47,947,806 E.On Russia Jsc Eonr Rm 3,345,624 2,051,351 2.08 25,018 Magnit Pjsc Mgnt Ru 3,822,786 3,489,272 3.54 2,356,967 Moscow Exchange Micex 4,511,781 4,156,089 4.22 2,424,141 Sberbank RF 2,375,658 5,008,908 5.10 181,072 Surgutneftegas-Preference Sngsp Rx Pfd 115,825 108,663 0.11 1,694,637 Surgutneftegaz Pfd 1,013,551 1,016,987 1.03 2,140,132 Surgutneftegaz 994,837 1,097,149 1.12

18,292,474 19,667,509 19.98

Equities Total 18,292,474 19,667,509 19.98

Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2) 18,292,474 19,667,509 19.98

Portfolio of Investments 110,333,054 96,571,934 98.09

Other Net Assets 1,879,619 1.91

Net Assets 98,451,553 100.00

(1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

137 MANULIFE GLOBAL FUND Emerging Eastern Europe Fund

Investment Objective: The sub-fund aims to achieve capital growth through investment primarily in securities which are listed or traded on the stock exchanges of Central and Eastern European countries. It is intended that the sub-fund will initially be concentrating (although not necessarily exclusively) on securities listed or traded on stock exchanges in the Czech Republic, Hungary, Poland, Slovakia and Russia whilst such securities may also be listed in other exchanges as depository receipts or certificates, or in other forms of instruments. However, the sub-fund will seek to broaden its participation in other markets within the region as they develop.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Emerging Eastern Europe Fund Class A -6.92% Emerging Eastern Europe Fund Class AA -7.02% MSCI Emerging Europe 10/40 Index -11.08% PORTFOLIO REVIEW

The sub-fund generated a strong return over the first half of 2016, though still losing absolute value over the full 12-month period under review. It nevertheless outperformed the underlying markets in which it invests by some margin.

The relative return of the sub-fund owed much to a decision to have no exposure to the troubled Greek market, which remains broadly un-investable without further structural reform. An underweight exposure to Poland also added value, whilst stock selection in Russia was broadly supportive.

Key positive contributors to performance included the Russian stock exchange, Moscow Exchange, where first quarter results were positive, with a 32% growth in fee income and a healthy focus on cost control. Russian supermarket group X5 Retail also added value; although not immune from consumer weakness X5 continues to benefit from a store refurbishment program and improving logistics, which have driven traffic growth ahead of the overall market. Turkish consumer goods group Arcelik was another significant contributor to relative performance from within the sub-fund’s portfolio. Its share price rose strongly on the back of much better than expected results, with revenues strong and EBITDA margins expanding.

Detractors from performance included the Turkish airports operator TAV Airports, whose share price suffered on fears of lower turnover on the back of a declining tourist trade, with Russian holiday-makers subject to sanctions and the apparent increase in terrorist activities, which hit the company’s flagship airport in Istanbul, deterring visitors. The construction of Istanbul’s new airport does however seem to be behind schedule, which should boost TAV’s revenues from its current concessions. The sub-fund’s holdings amongst London-listed central European companies, including the beverages group Stock Spirits and the consumer lender International Personal Finance, were a further drag.

Amongst changes to the portfolio, exposure to the overpriced Polish market was further reduced to enable a greater weighting in Russia. Companies in the energy and telecommunication services sectors were divested in favour of a greater exposure to the materials and financials sectors.

New additions included the Czech MONETA Money Bank, which conducted an attractively priced initial public offer. The company is the Czech retail banking business of GE Capital, which intends to sell its remaining 41% stake over the next year or so suggesting that a strong performance is important to the parent group in order to prepare the ground for a final exit. The Russian diamond producer ALROSA was also added to the portfolio. Divestments from the portfolio included the Russian telecommunications group MTS and the Hungarian bank OTP.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 138 Emerging Eastern Europe Fund

MARKET REVIEW

Emerging Eastern European markets fell sharply over the first half of the period under review before recovering most, though not all, of their losses. Poland and Turkey were the weakest of the main markets, not helped by political developments. Russia was broadly unchanged overall whilst Kazakhstan fell sharply as a result of a currency devaluation. The Greek market fell sharply over the period and, in the subfund’s portfolio manager’s opinion, currently lacks investment opportunities.

The year was dominated by politics in Turkey and to some extent in Poland. In Turkey, having not secured an overall majority in the first parliamentary election in June the AK Party failed to form a coalition government and a second election was called for November. This resulted in an absolute majority for the AK Party, heralding its fourth consecutive term in office. This in turn paved the way for President Erdogan to push for constitutional change to furnish the presidential office with more executive powers, a policy direction that led to the installation of a new government in May following a fall out between the previous prime minister and President Erdogan over this issue. In Poland the ultra- nationalist Law and Justice party won the parliamentary elections in November and has since brought large parts of the state-owned media under its direct control as well as continuing to work on a new banking and retail tax.

All this for once made Russian politics look almost boring. The EU sanctions were extended but that in itself did not come as a surprise to anyone. Putin’s decision to provide direct military support to the Assad regime in Syria did surprise Western politicians but also highlighted Russia’s ability to act in a much quicker and more coherent fashion than the myriad of Western powers. Turkish President Erdogan’s apology for the shooting down of the Russian military plane in November 2015 paved the way for the lifting of restrictions on charter flights and Turkish holidays being sold in Russia. From an economic point this is not very relevant for Russia but obviously very significant for Turkey given that the summer tourism season is shaping up to be very weak due to the lack of Russian visitors and the impact of recent terrorist atrocities. What is maybe more relevant is that this could herald an overall improvement in relations between the two countries with potential meaningful economic and political consequences.

The Russian stockmarket suffered at the hands of a lower oil price over the second half of 2015 but recovered all of its lost ground as oil prices recovered in 2016, even though the oil price still fell by a net 25% over the period under review. Russian share prices actually rose in local currency terms. Improving economic newsflow in both Russia and Turkey enabled central banks to cut interest rates, thus providing further support for share prices.

OUTLOOK

The fortunes of the Russian stockmarket are inextricably linked to the oil price. Although there are no certainties in this matter, having bounced off its near-term low, an oil price at least around current levels seems broadly sustainable for the time being. The government would no doubt prefer the oil price to return towards a level of USD 100 a barrel or more, but the current scenario is one that can be tolerated and accommodated with appropriate policy action. International sanctions on Russia, imposed as a result of its involvement in Ukraine, can be expected to remain in place for some time to come but are unlikely to be extended beyond the current individuals and companies. An improving macroeconomic outlook over the coming years driven by both actual improvements in the economy and base effects will inevitable make 2016 numbers look better than 2015. This should be broadly supportive for the market over the year ahead. The sub-fund incorporates the best investment ideas available in Russia and these stocks should benefit the most from the economic recovery that is beginning to take shape.

Turkey is now free of political uncertainty until at least the next significant elections, scheduled for 2019. A strong single party government with a renewed commitment to structural reform should foster a period of stability. Although moves to promote a formal move to an executive presidency are to be expected, these should not unsettle markets unduly. In the meantime, growth dynamics remain well supported and Turkey should continue to feature among the better macroeconomic stories in the region. Depressed oil prices, a better earnings outlook compared to other countries in the region, driven by the banks, the potential for macroeconomic policy to foster growth and attractive valuations should all be supportive of a better outlook for share prices over the period ahead.

Elsewhere across the region, international developments concerning commodity prices, US interest rate policy and the strength of the global economy, with a focus on China, are likely to continue to dominate stockmarkets.

139 MANULIFE GLOBAL FUND European Growth Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Austria 21,703 Andritz AG 1,023,291 1,025,964 1.00 58,417 Wienerberger AG 1,010,645 817,261 0.80

2,033,936 1,843,225 1.80 France 29,211 Danone 1,919,725 2,017,511 1.97 188,401 Groupe Eurotunnel SA 2,068,056 1,973,096 1.92 32,341 Publicis Groupe 1,939,716 2,177,245 2.12 26,011 Schneider Electric SE 1,769,052 1,514,285 1.48

7,696,549 7,682,137 7.49 Germany 13,632 BASF SE 1,002,091 1,031,988 1.01 5,092 Continental AG 793,764 953,798 0.93 14,968 Gea Group AG 601,382 699,927 0.68 31,387 Henkel AG & Company KGaA 2,307,173 3,357,247 3.27 34,521 Hugo Boss AG 2,208,675 1,938,335 1.89 91,900 Infineon Technologies AG 1,027,043 1,320,937 1.29 10,203 Merck KGaA 989,856 1,022,610 1.00 6,785 SAP SE 512,894 504,219 0.49 16,477 Volkswagen AG Pfd 2,214,537 1,965,377 1.92

11,657,415 12,794,438 12.48 Italy 472,251 Intesa Sanpaolo SpA 1,387,296 863,064 0.84

1,387,296 863,064 0.84 Jersey - Channel Islands 49,210 Shire plc 2,960,820 2,993,960 2.92

2,960,820 2,993,960 2.92 Netherlands 32,183 Akzo Nobel NV 2,137,337 1,998,818 1.95 174,993 Koninklijke Ahold NV 3,624,858 3,848,796 3.75 83,388 Koninklijke Philips Electronics NV 2,157,692 2,058,365 2.01 38,677 Unilever NV 1,370,623 1,786,454 1.74

1,034,728 1,301,074 9,290,510 9,692,433 9.45

MANULIFE GLOBAL FUND 140 European Growth Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Spain 230,808 Repsol YPF SA 2,445,512 2,917,289 2.85 69,369 Telefonica SA 913,960 640,047 0.62

3,359,472 3,557,336 3.47 Sweden 77,238 Svenska Cellulosa AB 1,719,544 2,434,856 2.37

1,719,544 2,434,856 2.37 Switzerland 26,740 Nestle SA - Reg 1,952,785 2,057,450 2.01 65,201 Novartis AG - Reg 4,812,678 5,301,030 5.17 23,969 Sunrise Companymunications Group AG 1,669,583 1,528,261 1.49 13,822 Zurich Financial Services AG - Reg 3,190,590 3,354,999 3.27

11,625,636 12,241,740 11.94 United Kingdom 41,883 Admiral Group plc 854,483 1,114,829 1.09 182,160 Arm Holdings plc 2,366,078 2,699,695 2.63 53,134 Astrazeneca plc 2,942,920 3,107,402 3.03 173,588 BHP Billiton plc 2,476,686 2,160,517 2.11 1,479,113 Cobham plc 4,375,694 3,106,322 3.03 39,197 Ds Smith plc 199,311 200,556 0.20 728,557 Equiniti Group plc 1,775,004 1,514,887 1.48 283,362 GKN plc 1,358,608 1,010,482 0.99 225,754 Glaxosmithkline plc 5,431,191 4,742,633 4.63 534,669 HSBC Holdings plc 4,342,720 3,283,484 3.21 226,663 Indivior plc 535,964 763,217 0.74 44,838 Liberty Global Inc. 1,365,599 1,294,921 1.26 5,594 Liberty Global plc 199,665 180,183 0.18 44,576 Prudential plc 750,997 737,601 0.72 42,675 Rio Tinto plc 1,579,897 1,293,596 1.26 308,691 Royal Bank of Scotland 1,153,980 711,335 0.69 150,973 Royal Dutch Shell plc - B 4,376,573 4,087,525 3.98 332,744 Rsa Insurance Group plc 2,157,197 2,169,288 2.12 130,007 Smith & Nephew plc 2,104,927 2,160,840 2.11 358,614 Standard Chartered plc 4,148,461 2,683,914 2.61 940,191 Tesco plc 2,158,189 2,172,855 2.12 88,633 Tullow Oil plc 948,315 310,591 0.30 83,302 Weir Group plc 1,393,623 1,618,490 1.58 110,831 WS Atkins plc P.P. 144A 2,243,452 1,947,848 1.90

51,239,534 45,073,011 43.97

Equities Total 102,970,712 99,176,200 96.73

141 MANULIFE GLOBAL FUND European Growth Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Rights

Spain 202,689 Repsol SA Right 54,425 65,343 0.06

54,425 65,343 0.06

Rights Total 54,425 65,343 0.06

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 103,025,137 99,241,543 96.79

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Rights

France 28,106 Publicis Groupe SA Right 0 0 0.00

0 0 0.00

Rights Total 0 0 0.00

Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2) 0 0 0.00

Other transferable securities and money market instruments (2)

Equities

Finland 640,479 Talvivaara Mining Company plc a 498,359 86 0.00

498,359 86 0.00

Equities Total 498,359 86 0.00

Total Other transferable securities and money market instruments (2) 498,359 86 0.00

Portfolio of Investments 103,523,496 99,241,629 96.79

Other Net Assets 3,293,884 3.21

Net Assets 102,535,513 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 142 European Growth Fund

Investment Objective: The objective of this sub-fund is to achieve capital growth from a diversified portfolio of equities in mainly larger companies quoted on stock markets in Europe (including in the United Kingdom), or companies that have substantial business interests in Europe. The main emphasis of the investment strategy of the sub-fund is on the assessment and selection of individual stocks within the European markets. PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

European Growth Fund Class A -14.07% European Growth Fund Class AA -14.29% European Growth Fund Class I -13.67% European Growth Fund Class I3 -12.73% MSCI Europe Index -10.67% PORTFOLIO REVIEW Significant individual contributors to the Fund’s performance included SCA Group, Admiral Group and Rheinmetall. Rheinmetall benefited from Germany’s commitment to spend 2% of its GDP on defence. Bathroom tissue maker SCA Group performed well after its valuation rose to trade more in line with consumer staples, which its business model more closely resembles than the materials sector in which it is technically classified. Admiral Group, the UK car insurer, continued to deliver strong dividend growth underpinned by industry leading profitability, market share gains and pricing power.

The most significant detractor from the Fund’s performance was Intesa Sanpaolo, which suffered from rising political risk as Italy holds its own referendum in October on whether to implement Prime Minister Renzi’s structural reforms. A rejection of the proposals could play into the hand of populist parties that seek to take Italy out of the eurozone. Individual detractors from performance also included aerospace and defence company Cobham, which announced a significant equity issuance to strengthen its balance sheet. Standard Chartered (Hong Kong) and HSBC also detracted, as both holdings struggled with slowing economic growth in Asia and regulatory uncertainty.

During the year, the portfolio manager (PM) added Publicis Groupe, Liberty Global, Halfords Group and Groupe Eurotunnel to the Fund as some of these stocks were trading at their most attractive levels since 2012. PM increased the Fund’s position in Hugo Boss after the company’s stock price fell following an earnings downgrade. PM decreased the Fund’s position in Berendsen because it was nearing fair value.

MARKET REVIEW Over European equity investors experienced their second consecutive year of negative returns in US dollars. Corporate profits stalled in the face of falling commodity prices, a sharp slowdown in emerging markets and more stringent banking regulation. The UK’s surprising decision (known as “Brexit”) to exit the European Union (EU) following its referendum also resulted in investors pulling money out of European equities.

Escalating costs of regulation and balance sheet concerns led to another year of poor performance for the European financial sector. The uncertainty over asset quality was most acute in Italy, which was among the weakest performing countries over the year. In addition, the move by the European Central Bank to negative interest rates has flattened the yield curve, further placing pressure on their margins and earnings outlook. Banks have also had to provision more for loans to companies operating in emerging markets and the energy sector.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

143 MANULIFE GLOBAL FUND European Growth Fund

The materials sector was affected by a combination of falling demand from China and a surplus of low- cost new supply from Australia and Brazil. Since the start of 2016, iron ore prices have rebounded sharply from their lows as China resorted to fiscal stimulus to counteract its economic slowdown.

Oil rebounded in February 2016 after falling over 60%, largely as a result of additional supply from US shale basins coming on stream at a time of subdued global demand. When oil is below US$40–50 per barrel, however, the majority of shale prospects are below cash breakeven. Furthermore, as shale wells have short reserve lives, an extended period of oil at US$30 per barrel would have resulted in a supply deficit by 2018.

In theory, the low oil price should have boosted consumer spending. But from an equity market perspective it seemed to mainly have a negative impact. Profits for various sectors ranging from energy producers and oil services to industrial suppliers and chemical companies were correlated with the price of oil to varying degrees. Similarly, a low oil price negatively affected the large oil producing nations such as the Middle Eastern states, Russia, Brazil and the US.

The consumer discretionary sector was surprisingly weak. The crackdown on corruption in China hurt the luxury end of the market and stuttering economic growth in emerging markets weighed on auto sales. Some traditional retail formats also struggled to deal with the transition to ecommerce and online disruptors like Amazon. The UK referendum also sparked concerns that the economy was headed into recession, which negatively affected UK retail names.

Concerns that the UK would leave the EU, which had weighed on UK equities throughout the year, took a step closer to becoming reality following the June referendum when 52% of voters opted to leave. The British pound fell sharply on the news, hitting a 31-year low against the US dollar. The worst affected sectors in the subsequent sell-off were UK house-builders and retailers, and UK and European banks. Paradoxically, the FTSE 100 Index (which is made up of UK companies) outperformed European equities in June because the majority of UK-listed large-capitalisation revenues are generated in US dollars and were relatively insulated from currency weakness and domestic economic uncertainty. European companies, by contrast, are more exposed to the economies of continental Europe, which may suffer from the UK referendum more than globally-focused UK companies. OUTLOOK The UK’s decision to leave the EU may be a game-changer for the European economy, and it may affect the global economy as well. In the short term, expectations of economic momentum across Europe will likely decline, and businesses and consumers will react cautiously. PM believes a recession in Europe is now a distinct possibility, and PM will revisit the expectations of growth in the cash flow models and assess the impact on valuations.

It is important, however, to note that not all UK firms will be adversely affected. For example, companies that earn foreign revenues with almost no exposure to the domestic UK economy, and are most exposed to the wider global economy, may be sheltered. PM believes they will outperform in a scenario where investors question the sustainability of the EU. Secondly, PM has been nervous for some time about the UK domestic economy, with or without a Brexit scenario, and has been relatively cautious towards UK financials and consumer stocks. It is also worth mentioning that such volatile periods will offer good opportunities for active long-term investors. PM is finding these opportunities in favoured names that are exhibiting strong free cash flow yields with reinvestment opportunities, and are trading at a significant discount to their long term value.

MANULIFE GLOBAL FUND 144 Global Contrarian Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Australia 44,172 Amcor Limited 424,796 490,428 2.65

424,796 490,428 2.65 Cayman Islands 17,307 CK Hutchison Holdings Limited 230,999 188,597 1.02

230,999 188,597 1.02 France 2,938 Safran SA 184,260 198,901 1.08 3,301 Sanofi-Aventis SA 331,662 271,584 1.47 4,994 Total SA 297,826 239,051 1.29

813,748 709,536 3.84 Germany 3,220 Deutsche Boerse AG 256,112 260,516 1.41

256,112 260,516 1.41 Ireland 3,877 Eaton Corp. 277,134 226,223 1.22

277,134 226,223 1.22 Japan 16,500 Bridgestone Corp. 612,288 524,770 2.84 6,200 Canon Inc. 186,855 175,682 0.95 6,900 Honda Motor Company Limited 255,884 172,693 0.93 8,700 Japan Tobacco Inc. 289,960 347,289 1.88 10,000 Mitsubishi Estate Company Limited 196,721 182,225 0.99

1,541,708 1,402,659 7.59 Jersey - Channel Islands 10,886 Experian plc 182,088 202,291 1.09

182,088 202,291 1.09 Luxembourg 85,554 Samsonite International SA 245,962 236,519 1.28 18,368 SES SA 602,951 395,920 2.14

848,913 632,439 3.42 Netherlands 2,644 Akzo Nobel NV 203,705 164,213 0.89 3,140 Heineken NV 225,638 288,811 1.56 25,180 Koninklijke Ahold NV 488,744 553,809 3.00 20,557 Koninklijke Philips Electronics NV 598,692 507,433 2.75 7,307 Wolters Kluwer NV 238,878 296,524 1.60

1,755,657 1,810,790 9.80 Singapore 118,652 Comfortdelgro Corp. Limited 189,339 242,111 1.31

189,339 242,111 1.31

145 MANULIFE GLOBAL FUND Global Contrarian Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Switzerland 2,183 Chubb Limited 265,567 279,577 1.51 6,253 Nestle SA - Reg 483,640 481,123 2.60 6,915 Novartis AG - Reg 570,868 562,210 3.04 2,206 Roche Holding AG 604,099 573,933 3.12

1,924,174 1,896,843 10.27 United Kingdom 3,478 Aon Corp. 296,596 373,259 2.02 10,500 British American Tobacco plc 565,521 667,888 3.61 76,622 HSBC Holdings plc 720,316 470,547 2.55 19,143 Pearson plc 366,340 245,512 1.33

1,948,773 1,757,206 9.51 United States 5,407 Apple Computer Company 497,807 511,070 2.77 12,856 Arthur J Gallagher & Company 573,077 600,375 3.25 6,269 Baxter International Inc. 233,501 280,977 1.52 2,494 Exxon Mobil Corp. 193,249 230,845 1.25 2,796 Honeywell International Inc. 252,783 320,757 1.74 38,338 Huntington Bancshares Inc. 344,411 337,374 1.83 5,938 Johnson & Johnson 571,111 707,809 3.84 3,881 JPMorgan Chase & Company 220,093 238,061 1.29 7,371 Macy's Inc. 374,380 243,169 1.32 12,777 Microsoft Corp. 562,938 645,494 3.48 4,534 Mondelez International Inc. 154,763 195,642 1.06 5,523 Oracle Corp. 218,526 224,510 1.22 4,733 Philip Morris International Inc. 405,274 469,230 2.54 6,389 PNC Financial Services 599,863 516,168 2.79 5,787 Procter & Gamble Company 477,746 485,587 2.63 4,324 Qualcomm Inc. 294,714 227,659 1.23 2,993 Ralph Lauren Corp. 329,532 265,539 1.44 3,698 United Technologies Corp. 406,653 374,127 2.02 9,740 Verizon Communications Inc. 478,338 535,700 2.90 12,779 Wells Fargo & Company 646,239 597,930 3.24 1,809 Whirlpool Corp. 313,817 293,908 1.58

8,148,815 8,301,931 44.94

Equities Total 18,542,256 18,121,570 98.07

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 18,542,256 18,121,570 98.07

MANULIFE GLOBAL FUND 146 Global Contrarian Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Other transferable securities and money market instruments (2)

Equities

United States 85,237 Brazil Ethanol Inc. a 852,370 9 0.00

852,370 9 0.00

Equities Total 852,370 9 0.00

Total Other transferable securities and money market instruments (2) 852,370 9 0.00

Portfolio of Investments 19,394,626 18,121,579 98.07

Other Net Assets 356,515 1.93

Net Assets 18,478,094 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

147 MANULIFE GLOBAL FUND Global Contrarian Fund

Investment Objective: The sub-fund aims to generate long-term returns which exceed those of broad market indexes, such as the MSCI World Index and the S&P 500 Index, by investing in overlooked and misunderstood companies through investing primarily in securities of U.S. issuers, and those of issuers in countries around the world including, but not limited to, common stocks, REITs and similar liquid equity equivalents. The expression “overlooked and misunderstood companies” as used herein may refer generally to specific companies which may be temporarily out-of-favour with or unattractive to investors (for whatever reason) and could, therefore, present value opportunities to be exploited. These companies may also include companies going through corporate restructuring, bankruptcy, spin-outs or industry consolidation. It may also include taking advantage of opportunities which present themselves in the markets arising from short-term irrationality in prices or psychological biases of market participants as demonstrated by some of the principles of behavioural finance.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Global Contrarian Fund Class AA -5.37% Global Contrarian Fund Class I2 -5.46% Global Contrarian Fund Class S -4.69% MSCI All Country World Index -3.17%

PERFORMANCE FROM 1 JULY 2015 TO 3 August 2015**

Global Contrarian Fund Class I3 1.42%

PERFORMANCE FROM 27 October 2015 TO 30 June 2016**

Global Contrarian Fund Class I3 -0.62%

Portfolio Review

The sub-fund’s overweight exposure to the consumer staples sector and stock selection in the financials sector contributed to its performance. Individual contributors included Johnson & Johnson, Philip Morris International and British American Tobacco (BAT). Johnson & Johnson’s share price rose after the company reported strong earnings and announced a stock buyback program. The company also benefited from the defensive nature of its business as investors sought defensive stocks. Philip Morris’s share price rose as a result of continued strong organic growth, led by its Marlboro brand. BAT’s share price increased on market share gains and better-than-expected volumes and revenues.

Stock selection in the consumer discretionary and information technology sectors detracted from the sub-fund’s performance. Individual detractors included Viacom, Macy’s and SES. Viacom’s share price fell as a result of concerns about the health of the cable TV business, subscriber declines and technological changes disrupting the business. Macy’s reported a decline in revenues and reduced its full-year outlook on lower sales and general concerns about the potential for accelerating loss of revenues to e-commerce. SES’s share price declined as the company announced it was issuing shares to purchase the remaining interest in O3b Networks, a satellite service operator in which SES was already the majority shareholder.

The sub-fund maintains underweight exposure to commodity-related industries and the European financials sector, while retaining large exposures to sustainable, quality franchises in areas such as the healthcare and consumer staples sectors.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis. ** Please note the share class was closed on 4 August 2015 and reopen on 27 October 2015.

MANULIFE GLOBAL FUND 148 Global Contrarian Fund

Market Review

Over the period, global equity markets declined despite incrementally positive economic data and accommodative monetary policy, which was not enough to offset concerns about a global growth slowdown and the collapse in commodity prices. The Fed increased interest rates for the first time in nine years in December. In contrast, Japan and Europe implemented further quantitative easing measures over the period. The price of oil remained in focus, as prices fell to levels the market had not seen since 2008 to 2009. A significant equity market pullback began in December, with markets reaching bottom in mid-February before recovering. Equity markets ended the period with significant volatility as a result of the UK’s 23 June referendum decision (known as “Brexit”) to leave the EU.

Outlook

The sub-fund’s portfolio manager continues to believe that deflation risk, excess debt and slowing global growth present challenges to the macroeconomic environment. Global central bank monetary policy remains generally accommodative. As the likelihood of further rate increases in the US during 2016 has diminished, the PM believes that US interest rates will remain below historical levels for some time. The PM remains cautious that the stronger US dollar, slow global growth and deflationary pressures from overseas could overwhelm the US economic recovery.

Brexit caused a significant amount of volatility, and this volatility looks likely to continue as the UK embarks on a two-year period of renegotiations with the EU. European Central Bank President Mario Draghi has delivered a stronger-than-expected package of quantitative easing to try to stimulate growth and inflation amid concerns about deflationary trends. This could contribute to a weaker currency as growth is siphoned from stronger regions. Japan is also considering more quantitative easing, a decision that may be rendered inevitable depending on China’s policy reaction to its own slowing economy.

Japan’s surprise introduction of negative interest rates, presumably aimed at weakening its currency, appears to have contributed to market volatility as investors question whether central banks are running out of policy options. As expected, the proposed consumption tax increase has been delayed in Japan because of concerns that it could accentuate a decline in domestic demand. In the sub-fund’s portfolio manager’s view, further stimulus may now be called for.

The sub-fund’s portfolio manager remains wary of excess debt and continues to focus on companies with what look to be sustainable cash flow streams. Given current market uncertainty and volatility, the sub-fund’s portfolio manager believes investors may increasingly seek out quality. In the sub-fund’s portfolio manager’s view, the sub-fund’s holdings combine qualitative and valuation attributes that should allow the sub-fund to successfully navigate this period of uncertainty and volatility.

149 MANULIFE GLOBAL FUND Global Equity FUND*

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Australia 272,202 Amcor Limited 2,537,667 3,022,176 2.65

2,537,667 3,022,176 2.65 Cayman Islands 104,656 CK Hutchison Holdings Limited 1,252,655 1,140,451 1.00

1,252,655 1,140,451 1.00 France 17,565 Safran SA 1,099,603 1,189,141 1.05 19,346 Sanofi-Aventis SA 1,621,894 1,591,658 1.39 30,841 Total SA 1,373,145 1,476,286 1.29

4,094,642 4,257,085 3.73 Germany 20,901 Deutsche Boerse AG 1,774,737 1,691,014 1.48

1,774,737 1,691,014 1.48 Ireland 23,802 Eaton Corp. 1,184,669 1,388,847 1.22

1,184,669 1,388,847 1.22 Japan 102,300 Bridgestone Corp. 3,529,912 3,253,576 2.85 39,800 Canon Inc. 1,116,914 1,127,767 0.99 39,900 Honda Motor Company Limited 1,113,938 998,616 0.87 54,000 Japan Tobacco Inc. 1,960,794 2,155,588 1.89 62,000 Mitsubishi Estate Company Limited 1,219,672 1,129,796 0.99

8,941,230 8,665,343 7.59 Jersey – Channel Islands 65,503 Experian plc 1,084,178 1,217,221 1.07

1,084,178 1,217,221 1.07 Luxembourg 532,500 Samsonite International SA 1,429,736 1,472,129 1.29 113,482 SES SA 3,015,207 2,446,092 2.14

4,444,943 3,918,221 3.43 Netherlands 17,653 Akzo Nobel NV 1,117,751 1,096,391 0.96 20,476 Heineken NV 1,729,730 1,883,340 1.65 160,342 Koninklijke Ahold NV 3,469,247 3,526,562 3.09 126,270 Koninklijke Philips Electronics NV 3,214,035 3,116,873 2.73 43,684 Wolters Kluwer NV 1,444,924 1,772,731 1.55

10,975,687 11,395,897 9.98 Singapore 696,500 Comfortdelgro Corp. Limited 1,389,834 1,421,218 1.24

1,389,834 1,421,218 1.24

* Refer to note 10

MANULIFE GLOBAL FUND 150 Global Equity FUND*

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Switzerland 13,486 Chubb Limited 1,641,312 1,727,152 1.51 37,605 Nestle SA – Reg 2,740,196 2,893,434 2.54 42,707 Novartis AG – Reg 3,365,032 3,472,203 3.04 13,358 Roche Holding AG 3,438,937 3,475,340 3.04

11,185,477 11,568,129 10.13 United Kingdom 22,125 Aon Corp. 1,913,962 2,374,455 2.08 70,019 British American Tobacco plc 3,788,735 4,453,796 3.90 473,234 HSBC Holdings plc 3,263,538 2,906,202 2.54 127,822 Pearson plc 1,535,728 1,639,335 1.44

10,501,963 11,373,788 9.96 United States 32,793 Apple Computer Company 3,030,822 3,099,594 2.71 80,643 Arthur J Gallagher & Company 3,011,465 3,766,028 3.30 38,719 Baxter International Inc. 1,379,055 1,735,386 1.52 15,401 Exxon Mobil Corp. 1,184,260 1,425,517 1.25 18,549 Honeywell International Inc. 1,817,337 2,127,941 1.86 236,788 Huntington Bancshares Inc. 2,041,966 2,083,734 1.82 37,400 Johnson & Johnson 3,749,952 4,458,079 3.91 23,744 JPMorgan Chase & Company 1,293,984 1,456,457 1.28 44,866 Macy’s Inc. 1,839,911 1,480,129 1.30 81,020 Microsoft Corp. 4,136,416 4,093,130 3.59 26,043 Mondelez International Inc. 1,086,547 1,123,755 0.98 35,538 Oracle Corp. 1,405,154 1,444,620 1.25 29,407 Philip Morris International Inc. 2,561,220 2,915,410 2.55 39,015 PNC Financial Services 3,327,503 3,152,022 2.76 34,354 Procter & Gamble Company 2,676,090 2,882,644 2.52 26,706 Qualcomm Inc. 1,223,605 1,406,071 1.23 17,998 Ralph Lauren Corp. 1,926,990 1,596,783 1.40 23,514 United Technologies Corp. 2,038,649 2,378,912 2.08 62,304 Verizon Communications Inc. 2,966,211 3,426,720 3.00 78,927 Wells Fargo & Company 3,864,937 3,692,994 3.23 11,619 Whirlpool Corp. 1,573,694 1,887,739 1.64

48,135,768 51,633,665 45.18

Equities Total 107,503,450 112,693,055 98.66

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 107,503,450 112,693,055 98.66

Portfolio of Investments 107,503,450 112,693,055 98.66

Other Net Assets 1,529,664 1.34

Net Assets 114,222,719 100.00

* Refer to note 10 (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

151 MANULIFE GLOBAL FUND Global Equity FUND*

Investment Objective: The sub-fund aims to achieve capital growth from a balanced portfolio of international securities. The sub-fund is designed as a relatively lower risk way of participating in world stockmarkets and offers an alternative to the other, more aggressive, regional sub-funds.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016**

Global Equity Fund Class A -6.58% Global Equity Fund Class AA -6.81% MSCI World Index -2.91% PORTFOLIO REVIEW

Stock selection in the consumer staples and financials sectors contributed to the sub-fund’s performance over the period. Significant individual contributors to performance included Johnson & Johnson, Verizon and British American Tobacco (BAT). Johnson & Johnson shares rose partly as a result of the defensive nature of the business, but the company also reported strong earnings and announced a stock buyback programme. Verizon’s quarterly earnings report included better-than-expected margins and solid customer retention in its wireless division. BAT reported better-than-expected volumes and revenues as well as market share gains.

Stock selection in the consumer discretionary and information technology sectors detracted from the sub- fund’s performance over the period. Significant individual detractors from performance included Pearson, Macy’s and SES. Pearson stock fell after management cut earnings forecasts and reported lower-than- expected enrolments for its services. Macy’s reported a drop in revenues and reduced its full-year outlook, citing concerns over potential increasing competition from e-commerce. SES announced it was issuing shares to purchase the remaining interest in O3b Networks, a satellite service operator of which SES was already the majority shareholder.

MARKET REVIEW

Over the period, global equity markets fell despite incrementally positive economic data and easy monetary policy. These failed to outweigh fears of a global growth slowdown, highlighted by China’s economy, and the collapse in commodity prices as oil fell to levels not seen since 2008. The Fed raised interest rates for the first time in nine years in December, which was contrasted by further quantitative easing measures out of Japan and Europe.

Equity investors endured a significant market pullback that began in December and bottomed in mid- February. The market ended the period with significant volatility stemming from the UK’s referendum vote to leave the EU.

* Refer to note 10 ** The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 152 Global Equity FUND*

OUTLOOK

The portfolio manager believes that the main challenges in the current macroeconomic environment are deflation risk, excess debt, slowing global growth and political uncertainty in the US, UK and Europe. Global central bank monetary policy continues to be accommodative, and the sub-fund’s portfolio manager expects US rates to remain below historical levels for some time. remains cautious that the stronger US dollar, slow global growth and deflationary pressures from overseas could overwhelm the US recovery.

The sub-fund’s portfolio manager believes the tremendous volatility caused by the UK vote to leave the EU could continue as the UK negotiates its future relationship with the EU over the next few years. The European Central Bank’s continued quantitative easing policy, coupled with questions over the future of the eurozone, may contribute to a weaker euro. China’s policy reaction to its own slowing economy may force Japan to increase its quantitative easing programmes. Japan’s surprise introduction of negative rates has contributed to market volatility as investors question whether the Bank of Japan is running out of options. The sub-fund’s portfolio manager believes further stimulus may now be called for.

The sub-fund maintains an underweight exposure to commodity industries and to European financials. The sub-fund’s portfolio manager retains large exposures to quality franchises in areas such as healthcare and consumer staples. The sub-fund’s portfolio manager remains wary of excess leverage and continues to focus on companies with what the sub-fund’s portfolio manager believes to be sustainable cash flow streams. Given the current uncertainty and volatility, the sub-fund’s portfolio manager may see a flight to quality, and the sub-fund’s portfolio manager believes that the qualitative and valuation attributes of the sub- fund’s holdings should allow them to navigate this period successfully.

* Refer to note 10

153 MANULIFE GLOBAL FUND Global Property Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Australia 22,893 Dexus Property Group 151,455 153,560 0.97 70,875 Mirvac Group 96,407 106,467 0.67 78,846 Scentre Group 208,560 288,478 1.82 32,500 Stockland 95,744 113,834 0.72 60,000 Vicinity Centres 113,087 148,135 0.94 29,569 Westfield Group 154,902 234,183 1.48

820,155 1,044,657 6.60 Canada 7,332 H&r Real Estate Investment Trust 73,466 126,605 0.80 112,039 Temple Hotels Inc. 132,076 102,685 0.65

205,542 229,290 1.45 Cayman Islands 4,000 Cheung Kong Property Holding 32,944 24,952 0.16 36,500 Cheung Kong Property Holdings Limited 194,025 227,687 1.44

226,969 252,639 1.60 France 4,441 Klepierre 174,580 197,079 1.25 1,200 Unibail-Rodamco SE 203,247 312,218 1.97

377,827 509,297 3.22 Germany 5,896 Deutsche Wohnen AG 74,840 199,283 1.25 8,000 Tlg Immobilien AG 109,074 167,059 1.06

183,914 366,342 2.31 Hong Kong 51,000 Hang Lung Properties Limited 183,558 102,672 0.65 24,957 Henderson Land Development Company 98,008 140,081 0.89 Limited – ADR 24,500 Hongkong Land Holdings Limited 106,105 149,205 0.94 80,000 Sino Land Company Limited 110,314 130,534 0.82 24,000 Sun Hung Kai Properties Limited 297,967 287,824 1.82

795,952 810,316 5.12 Ireland 183,375 Irish Residential Properties REIT plc 205,132 224,234 1.42

205,132 224,234 1.42

MANULIFE GLOBAL FUND 154 Global Property Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Japan 2,000 Daito Trust Construction Company Limited 80,240 323,783 2.06 16 Japan Real Estate Investment Corp. 79,224 98,691 0.62 40 Japan Retail Fund Investment Corp. 77,068 101,999 0.64 22,000 Mitsubishi Estate Company Limited 410,215 400,894 2.52 15,500 Mitsui Fudosan Company Limited 282,332 351,591 2.22 34 Nippon Building Fund Inc. 194,053 209,389 1.32 9,000 Sumitomo Realty & Development Company 178,671 241,188 1.53 Limited

1,301,803 1,727,535 10.91 Norway 19,000 Entra ASA 188,275 177,494 1.12 90,000 Norwegian Property ASA 136,238 97,668 0.62

324,513 275,162 1.74 Singapore 145,000 Capitacommercial Trust 159,077 158,696 1.00 63,000 Capitaland Limited 179,767 143,511 0.91

338,844 302,207 1.91 United Kingdom 22,521 British Land Company plc 255,884 180,806 1.14 24,000 Capital & Counties Propertie 42,933 94,614 0.60 18,500 Hammerson plc 198,068 128,513 0.81 11,500 Land Securities Group plc 182,018 158,383 1.00 10,000 Shaftesbury plc 125,982 117,502 0.75

804,885 679,818 4.30 United States 1,850 Alexandria Real Estate Equities Inc. 112,112 187,609 1.19 1,700 American Tower Corp. 70,503 190,621 1.20 2,621 Boston Properties Inc. 159,242 342,486 2.16 7,000 Brixmor Property Group Inc. 140,000 182,490 1.15 1,968 Coresite Realty Corp. 33,456 172,082 1.09 4,700 Corporate Office Properties Trust 116,325 136,300 0.86 5,283 Cyrusone Inc. 101,584 291,648 1.84 11,722 Diamondrock Hospitality Company 115,239 104,326 0.66 4,089 Digital Realty Trust Inc. 183,311 441,529 2.80 5,050 Douglas Emmett Inc. 68,681 175,791 1.11 1,535 Essex Property Trust Inc. 199,167 342,766 2.17 1,450 Federal Realty Investment Trust 121,132 236,365 1.49 19,730 Felcor Lodging Trust Inc. 88,291 122,326 0.77 11,921 General Growth Properties Inc. 157,416 353,696 2.23 4,500 HCP Inc. 201,375 157,140 0.99 6,000 Hersha Hospitality Trust 98,550 99,900 0.63 10,000 Hilton Worldwide Holdings Inc. 200,000 223,400 1.41 2,700 Kilroy Realty Corp. 135,000 175,743 1.11 8,552 Kimco Realty Corp. 106,094 263,231 1.66 7,200 La Quinta Holdings Inc. 122,400 80,352 0.51 3,401 Macerich Company 98,469 286,228 1.81 15,687 Monogram Residential Trust Inc. 147,638 157,811 1.00 13,500 New York Reit Inc. 157,723 123,660 0.78 18,500 Paramount Group Inc. 323,751 287,675 1.82 9,000 Physicians Realty Trust 141,750 187,650 1.19

155 MANULIFE GLOBAL FUND Global Property Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 2,500 Post Properties Inc. 112,134 150,225 0.95 9,008 Prologis Inc. 293,204 436,618 2.76 4,550 QTS Realty Trust Inc. – A 95,550 251,479 1.58 11,456 Rexford Industrial Realty 160,384 240,461 1.52 4,255 Simon Property Group Inc. 269,008 912,441 5.77 2,222 Sl Green Realty Corp. 68,939 229,066 1.45 11,316 Spirit Realty Capital Inc. 89,114 142,242 0.90 6,200 Udr Inc. 155,041 224,564 1.42 4,118 Urban Edge Properties 73,593 121,152 0.77 3,000 Ventas Inc. 132,634 215,790 1.36 3,237 Vornado Realty Trust 190,251 319,880 2.02 2,013 WP Carey Inc. 99,094 138,394 0.86

5,138,155 8,705,137 54.99

Equities Total 10,723,691 15,126,634 95.57

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 10,723,691 15,126,634 95.57

Other transferable securities and money market instruments (2)

Equities

Malta 570,000 BGP Holdings plc a 0 38,018 0.24

0 38,018 0.24

Equities Total 0 38,018 0.24

Total Other transferable securities and money market instruments (2) 0 38,018 0.24

Portfolio of Investments 10,723,691 15,164,652 95.81

Other Net Assets 662,981 4.19

Net Assets 15,827,633 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 156 Global Property Fund

Investment Objective: The sub-fund is an equity fund which is primarily designed to provide medium to long term capital growth with the secondary goal of generating income. The sub-fund is suitable for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns.

It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of real estate securities, primarily REITs of U.S. and non-U.S. companies. The sub-fund may invest in companies which derive a significant portion of their earnings from the development or management of real estate situated in the U.S. and non-U.S. countries. The investment instruments of the portfolio include, but not limited to, North American REITs (in the U.S. and Canada), non-U.S. REITs, real estate company equities, bonds (graded as low as BB), short-term securities, equity securities of non-real estate securities and deposits.

The underlying REITs may not necessarily be authorized by the SFC in Hong Kong and the dividend policy/payout policy of the sub-fund is not representative of the dividend policy/payout policy of the underlying REITs.

The Sub-Fund may also invest in bonds of any maturity rated at BB grades and unrated bond equivalents. If the Investment Manager so determines, it may also temporarily invest in investment grade short- term securities and/or cash, and non-U.S. securities including sponsored and unsponsored American Depository Receipts.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Global Property Fund Class AA +4.14% Global Property Fund Class AA (HKD) +4.21% S&P Developed Property Total Return Index +12.30% PERFORMANCE FROM 21 OCTOBER 2015 TO 30 June 2016

Global Property Fund Class I3 +3.67% Portfolio Review

Stock selection in Australia and Germany contributed to the sub-fund’s performance over the period. The sub-fund’s underweight position in Singapore and overweight position in the US also contributed. An overweight position in technology-related real estate investment trusts (REITs) that own, manage, develop or operate data centres contributed to performance. US data centre REITs such as CyrusOne, CoreSite Realty and Digital Realty posted strong financial results throughout the year, and overall technology trends continued to drive demand for data centre space. Daito Trust Construction showed stronger financial results as construction orders for new apartments continued to improve. With German residential properties heavily sought after as the industry looks to consolidate, financial results during the past year for Deutsche Wohnen were strong and above expectations.

Stock selection in the US, Hong Kong and Japan detracted from the sub-fund’s performance. The sub- fund’s overweight position in the lodging sector and underweight position in storage REITs in the US also detracted from performance, as did its overweight exposure to Hong Kong and its underweight position in Japanese REITs. Individual detractors from performance included UK property companies such as British Land and Land Securities Group, which declined due to Brexit. Lodging companies La Quinta, FelCor Lodging Trust and Diamondrock Hospitality also declined. La Quinta was weaker given its exposure to energy markets, especially in Texas. Hang Lung Properties was weaker during the period as retail sales in Hong Kong and China declined.

Over the period, the sub-fund’s portfolio manager increased exposure to Japanese REITs such as Japan Real Estate Investment Trust and Japan Retail Fund Investment. The sub-fund’s portfolio manager decreased positions that had posted strong performance, for example in data centre REITs Digital Realty, CoreSite and CyrusOne. The sub-fund’s portfolio manager also trimmed select US positions including Rexford Industrial Realty and Simon Property Group.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

157 MANULIFE GLOBAL FUND Global Property Fund

The sub-fund’s portfolio manager continues to retain underweight positions in Europe and Japan and an overweight position in the US. The underweight position in European property companies is the result of an overall weaker economic growth outlook and unattractive valuations relative to other regions. The sub-fund’s portfolio manager favours the Nordic, Irish and German real estate markets within Europe but retains an underweight exposure overall. The overweight position in the US is the result of stronger property fundamentals and a positive outlook on relative economic growth.

Market Review

Concerns over growth in emerging markets, China’s devaluation of its currency and uncertainty surrounding future moves by the Fed put pressure on global equity markets early in the period. The real estate sector outperformed during this volatile start to the period, as market participants sought the shelter of more defensive sectors.

The Fed raised its benchmark interest rate as economic data remained steady. Despite the Fed’s actions, interest rates remained at historically low levels, which continued to support the real estate sector. The European Central Bank indicated that it was open to further quantitative easing (increasing the money supply), as it tries to stimulate economic growth.

Later in the period, the UK referendum on leaving the EU (known as “Brexit”) increased volatility leading up to the vote. Markets declined in light of the uncertainty about what a post-Brexit Europe would look like. Interest rates also declined, which helped support the real estate sector as investors became more risk averse. Energy prices stabilised earlier in the quarter, which helped steady equity markets. Economic growth in the US remained tepid, which resulted in expectations that interest rate increases would be delayed.

Outlook

The sub-fund’s portfolio manager believes that the outlook for the real estate sector remains positive. Given uncertainty in Europe and recent economic data in the US, it is expected that major central banks are likely to continue to ease interest rates in order to stimulate economic growth. With interest rates still at historically low levels, the sector represents an attractive opportunity for income-oriented investors as well as those who are risk averse in the current environment. Expectations for improving economic conditions should continue to support the real estate sector given the relatively low supply, which should lead to higher occupancy and rents. The sector continues to offer an attractive dividend yield versus other yield securities. Within the market, the sub-fund’s portfolio manager continues to find attractive opportunities that trade at significant discounts to their net asset values. The sub-fund’s portfolio manager believes the current share prices and yields they offer are still at attractive levels.

MANULIFE GLOBAL FUND 158 Global Resources Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Australia 20,016 BHP Billiton Limited – ADR 1,113,994 567,253 1.36 100,313 South32 Limited 106,626 117,263 0.28 220,952 Western Areas NL 834,063 353,269 0.84

2,054,683 1,037,785 2.48 Canada 36,292 Agnico-Eagle Mines Limited 1,241,489 1,931,718 4.62 6,722 Agrium Inc. 652,559 596,666 1.43 84,031 Barrick Gold Corp. 1,437,300 1,770,710 4.24 24,720 Cameco Corp. 414,629 265,972 0.64 28,157 Canadian Natural Resources Limited 898,361 852,691 2.04 17,098 Detour Gold Corp. 275,954 428,635 1.03 18,456 Dominion Diamond Corp. 205,341 156,507 0.37 73,856 Eldorado Gold Corp. 577,806 327,642 0.78 14,000 First Quantum Minerals Limited 187,826 99,523 0.24 30,548 Franco-Nevada Corp. 1,468,430 2,286,867 5.48 76,701 Goldcorp Inc. 2,415,490 1,448,482 3.46 103,877 Lucara Diamond Corp. 139,966 274,413 0.66 129,145 Lundin Mining Corp. 527,163 435,656 1.04 7,179 Methanex Corp. 411,629 209,770 0.50 64,767 Nexgen Energy Limited 118,778 127,698 0.31 212,329 Oceanagold Corp. 456,159 819,292 1.96 10,078 Paramount Resources Limited – A 404,736 78,550 0.19 15,150 Potash Corp of Saskatchewan Inc. 268,271 238,916 0.57 504 Prairiesky Royalty Limited 10,891 9,328 0.02 45,612 Silver Wheaton Corp. 811,213 1,048,261 2.51 28,150 Suncor Energy Inc. 956,561 767,925 1.84 14,304 Tahoe Resources Inc. 204,549 210,638 0.50 16,558 Teck Cominco Limited 257,337 209,143 0.50 13,163 Vermilion Energy Trust 561,713 408,455 0.97 15,257 West Fraser Timber Company Limited 780,230 426,548 1.01 97,032 Yamana Gold Inc. 1,055,422 505,562 1.21

16,739,803 15,935,568 38.12

159 MANULIFE GLOBAL FUND Global Resources Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Curacao 9,401 Schlumberger Limited 811,434 736,850 1.76

811,434 736,850 1.76 Germany 8,861 BASF SE 782,266 670,808 1.60

782,266 670,808 1.60 Jersey – Channel Islands 13,562 Randgold Resources Limited – ADR 829,557 1,506,196 3.60

829,557 1,506,196 3.60 Mexico 37,746 Fresnillo plc 424,409 813,000 1.94

424,409 813,000 1.94 Netherlands 11,666 Lyondellbasell Industries NV – A 1,025,235 855,701 2.05

1,025,235 855,701 2.05 Sweden 45,771 Boliden AB 693,032 877,060 2.10

693,032 877,060 2.10 Switzerland 25,530 Weatherford International Limited 407,626 137,096 0.33

407,626 137,096 0.33 United Kingdom 20,685 Royal Dutch Shell plc – A – ADR 1,347,588 1,123,401 2.69

1,347,588 1,123,401 2.69 United States 19,321 Alcoa Inc. 191,199 175,531 0.42 15,897 Anadarko Petroleum Corp. 1,282,769 828,711 1.98 86 California Resources Corp. 370 1,082 0.00 10,345 Chevron Corp. 1,184,636 1,070,087 2.56 5,992 Concho Resources Inc. 616,985 712,149 1.70 19,617 Devon Energy Corp. 1,106,707 705,820 1.69 24,133 Dow Chemical Company 847,176 1,190,963 2.85 13,068 Eog Resources Inc. 1,153,636 1,088,042 2.60 11,986 Exxon Mobil Corp. 1,178,879 1,109,423 2.65 28,190 Freeport-McMoRan Copper & Gold 787,073 301,633 0.72 20,067 Halliburton Company 986,361 895,390 2.14 4,575 Helmerich & Payne Inc. 265,241 299,251 0.72 12,342 Hess Corp. 701,322 729,289 1.75 11,090 International Paper Company 519,998 455,022 1.09 25,339 Marathon Oil Corp. 582,492 375,777 0.90 6,801 Monsanto Company 773,838 700,571 1.68 8,289 Newmont Mining Corp. 307,689 317,220 0.76 7,828 Nucor Corp. 333,741 379,423 0.91 9,266 Occidental Petroleum Corp. 857,221 695,135 1.66 5,390 Phillips 66 341,631 420,151 1.00

MANULIFE GLOBAL FUND 160 Global Resources Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 2,960 Pioneer Natural Resources Company 392,127 445,983 1.07 15,642 Range Resources Corp. 931,057 670,729 1.60 1,030 Sherwin-Williams Company 272,826 298,638 0.71 37,613 Southern Copper Corp. 1,103,117 1,000,130 2.39 19,632 Spectra Energy Corp. 760,518 702,040 1.68 7,131 Valero Energy Corp. 348,142 358,190 0.87

17,826,751 15,926,380 38.10

Equities Total 42,942,384 39,619,845 94.77

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 42,942,384 39,619,845 94.77

Other transferable securities and money market instruments (1)

Equities

Australia 8,006 South32 Limited 62,776 46,355 0.11

62,776 46,355 0.11

Equities Total 62,776 46,355 0.11

Total Other transferable securities and money market instruments (2) 62,776 46,355 0.11

Portfolio of Investments 43,005,160 39,666,200 94.88

Other Net Assets 2,141,258 5.12

Net Assets 41,807,458 100.00

(1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

161 MANULIFE GLOBAL FUND Global Resources Fund

Investment Objective: The sub-fund has, as its primary objective, the provision of long term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and equities of companies involved in global resources such as gas, oil, coffee, sugar and related industries throughout the world and which are listed on any stock exchange. The sub-fund may invest in companies which derive a significant portion of their earnings from business activities in global resources sectors. The remaining assets of the sub-fund may include bonds, deposits and other investments.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Global Resources Fund Class AA +2.03% Global Resources Customized Index** +16.51% PERFORMANCE FROM 21 OCTOBER 2015 TO 30 June 2016

Global Resources Fund Class l3 +16.49% PORTFOLIO REVIEW

While returns were positive, the sub-fund’s sector allocations detracted value over the period. Although the materials sector outperformed the energy sector, the sub-fund held an underweight position in the materials sector. Within the energy sector, an overweight allocation to the exploration and production sub-sector also served as a detractor on a relative basis, where top detractors from absolute returns included Anadarko Petroleum, Devon Energy and Paramount Resources. Security selection detracted from relative returns within the materials (specifically, gold and precious metals) sector, given the sub- fund’s focus on higher-quality producers. Smaller-capitalisation, junior miners experienced greater returns during the latter half of the period, recovering from what were distressed pricing levels reached in February. In the metals and mining sub-sector, top detractors from returns included base metals miners BHP Billiton and Freeport-McMoRan. In the gold and precious metals sub-sector, a 12% rise in the price of gold resulted in substantive positive contributions being made by some of the sub-fund’s larger- capitalisation holdings in this sub-sector, including Barrick Gold, Agnico-Eagle Mines, Franco-Nevada and Randgold Resources.

MARKET REVIEW

After reaching multi-year lows across the commodity complex in February of this year, resources markets reached a turning point as prices for energy, gold and other materials experienced a strong rebound at the end of the first quarter of 2016. The combined benchmark, which consists of one-third each of the FTSE Gold Mines Total Return Index (US$), the MSCI World Energy Index (US$) and the MSCI World Materials Index (US$), generated a total return of 16.5% for the one-year period ended June 30, 2016.

Natural resources experienced negative returns across many of the major sectors during the first half of the year, both in the materials and energy sectors, as investors became increasingly concerned about the prospects for global economic growth, the slowdown in emerging markets economies and the recent notable decline in commodity prices. China, by far the largest emerging market, experienced slower growth as the country shifted focus to consumer-led growth from resources-heavy industrial and infrastructure projects. Various raw materials prices, particularly base metals, extended their declines throughout 2015 as a result. Meanwhile, crude oil prices continued to fall, as global supply growth outpaced demand, increasing inventories. The price for Brent crude, the global benchmark, fell to a seven-year low near US$37 per barrel (bbl) by the end of 2015 as the Organization of the Petroleum Exporting Countries (OPEC) continued to increase production. Investors also anticipated that Iran would further raise supplies.

* The performance return of the fund is calculated in US dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in US dollar terms and on total return basis. ** Customized by Amundi S.A., the new provider of the benchmark following a company restructuring detailed in Shareholder Notice dated 17 December 2010. The benchmark comprises of 1/3 MSCI World Energy, 1/3 MSCI World Materials and 1/3 FTSE Gold Mines.

MANULIFE GLOBAL FUND 162 Global Resources Fund

The second half of the period was markedly more positive for the resources sub-sector, with signs of further production cuts occurring outside OPEC, supporting oil prices. Gold benefited from short-term softness in the US dollar, in addition to being a safe haven trade following the UK’s June 23 referendum decision to leave the EU (known as “Brexit”). In the materials sector, while positive returns from the diversified metals & mining component contributed value, it was mostly the gold & precious metals sub- sector that constituted the bulk of the positive contributions for the period.

In the energy sector, investors focused on declining production levels outside of OPEC (primarily in North America) that were kept in check by near full-out production efforts from within the cartel – albeit in an uncoordinated fashion. Within OPEC, markets had hoped that meeting of its members in Doha, Qatar in April; or in Vienna, Austria in June would bring with it the possibility of continued talks to support prices. However, a coordinated effort to control production levels and ongoing tensions between Saudi Arabia and Iran have reduced expectations of any such agreement being reached in the immediate future. Meanwhile, lower prices are curbing production outside OPEC, providing price support.

Despite a slight pullback in May, the diversified metals and mining sub-sector experienced strong returns during the third and fourth quarters, as share prices continued to rebound from February’s distressed levels. Prices for metals such as copper, zinc and aluminium have not experienced the same type of rebound as gold, given their very different dynamics. However, spot prices have moved higher over the last five to six months, easing going-concern issues for many senior and intermediate producers. Sentiment was further aided by first-quarter earnings releases indicating that cost controls had been solid within the industry amid an environment of lower prices. Equity markets remained focused on balance sheet risk, where companies with large spending commitments, a funding shortfall and/or stretched balance sheets have experienced significant selling pressure. The recent recovery in metals prices, when combined with better cost controls, some asset sales, refinancing and other capital raisings (debt and equity), has helped improve balance sheet strength and valuations within the industry.

The gold and precious metals sub-sector moved higher as stronger gold prices and improved cost containment within the mining industry continued to draw investor attention. For gold, prices continued to benefit from a softening US dollar as cautious comments on interest rate increases from the Fed. Slower-than-expected monetary tightening also helped push the value of the US dollar lower during the period. Share prices of gold producers rose by an average of over 30% during the month of April alone, with outside investors, who pushed share prices into oversold territory in January, taking greater interest in the sub-sector.

OUTLOOK

The sub-fund’s portfolio manager believes that with uncertainty often comes opportunity. In the energy sector, PM is seeing signs of market participants discounting a floor in oil prices, with supply levels outside OPEC beginning to adjust through reduced production and demand levels remaining healthy on a global basis. In gold, recent weakness in the US dollar combined with a negative interest rate environment in parts of the world and fallout from Brexit are likely to continue to support spot prices, though pullbacks should continue to be present as market fears subside.

Though share prices in the resources sub-sector may experience continued volatility, supply (production) has started to respond to the lower price environment. As investments in future production initiatives are curtailed across the commodity complex, there is a risk of insufficient investment for future supply needs for most commodities. In the short term, the sub-fund’s portfolio manager continues to find opportunities to invest in quality companies at attractive valuations. Over the longer term, the sub-fund’s portfolio manager believes that demand for commodities should increase as emerging markets and developed economies continue to grow.

163 MANULIFE GLOBAL FUND Greater China Opportunities Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Bermuda 166,000 Beijing Enterprises Water Group Limited 102,414 99,700 0.81 24,000 Cheung Kong Infrastructure Holdings Limited 158,378 206,318 1.66 210,000 China Animal Healthcare Limited a 136,465 0 0.00 36,000 China Resources Gas Group Limited 103,695 109,036 0.89

500,952 415,054 3.36 Cayman Islands 9,500 Aac Technologies Holdings Inc. 52,072 80,627 0.65 6,858 Alibaba Group Holding Limited 536,524 539,862 4.36 2,255 Beigene Limited – ADR 58,837 67,830 0.55 85,000 Bloomage Biotechnology Corp. Limited 148,059 131,462 1.07 33,468 Cheung Kong Property Holding 162,987 208,773 1.69 63,000 China Medical System Holdings Limited 84,584 95,812 0.78 83,555 China Resources Land Limited 199,992 194,917 1.58 21,468 CK Hutchison Holdings Limited 253,504 233,940 1.90 24,000 Da Lue International Holding Company Limited 92,125 86,673 0.70 58,000 Minth Group Limited 149,178 187,256 1.52 195,000 Modern Dental Group Limited 106,651 84,193 0.68 26,000 Shenzhou International Group Holdings Limited 128,990 125,494 1.02 324,000 Sinosoft Technology Group 168,818 182,484 1.48 228,000 Sunac China Holdings Limited 150,272 141,050 1.14 49,900 Tencent Holdings Limited 674,221 1,132,553 9.17 126,000 Uni-President China Holdings Limited 96,345 105,881 0.86 81,000 Vinda International Holdings 133,190 139,891 1.13 6,674 Weibo Corp. – ADR 154,197 184,870 1.50 265,000 Wisdom Holdings Group 80,946 80,263 0.65 206,000 Xinyi Solar Holdings Limited 74,980 80,978 0.66

3,506,472 4,084,809 33.09 China 134,000 Beijing Capital International Airport Company 158,518 145,072 1.18 Limited – H 19,000 Byd Company Limited 91,338 113,747 0.92 159,000 China Communications Construction 157,684 170,088 1.37 Company Limited – H 659,000 China Construction Bank Corp. 508,895 434,864 3.51 75,000 China Merchants Bank Company Limited – H 230,295 167,614 1.36 288,000 China Petroleum & Chemical Corp. 253,197 207,865 1.69 93,500 China Shenhua Energy Company Limited 157,897 171,842 1.39 4,583 Ctrip.com International Limited – ADR 193,869 187,078 1.52 636,000 Industrial & Commercial Bank of China – H 443,098 351,651 2.85 72,000 Picc Property & Casualty Company Limited 123,754 112,469 0.91 68,000 Ping An Insurance Group Company of China 341,220 299,294 2.42 Limited 27,000 Zhuzhou Csr Times Electric Company Limited – H 201,415 148,242 1.21

2,861,180 2,509,826 20.33

MANULIFE GLOBAL FUND 164 Greater China Opportunities Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Hong Kong 97,400 Aia Group Limited 510,701 581,845 4.71 32,500 Boc Hong Kong Holdings Limited 101,570 97,179 0.79 131,000 China Everbright International Limited 113,575 145,201 1.18 42,000 China Mobile Limited 513,303 479,874 3.89 55,000 Galaxy Entertainment Group Limited 366,013 163,038 1.32 13,700 Hong Kong Exchanges and Clearing Limited 331,348 331,248 2.68 122,000 Kunlun Energy Company Limited 102,082 100,475 0.81 14,500 Link Real Estate Investment Trust 80,990 98,674 0.80 180,000 Shanghai Jin Jiang International 69,018 58,694 0.47 29,600 Swire Properties Limited 95,541 78,398 0.64

2,284,141 2,134,626 17.29 Taiwan 112,000 Advanced Semiconductor Engineering Inc. 131,097 127,245 1.03 21,000 Advantech Company Limited 159,670 159,164 1.29 60,000 Chilisin Electronics Corp. 118,832 112,154 0.92 135,900 China Life Insurance Company Limited 125,412 104,898 0.85 263,792 CTBC Financial Holding Company Limited 154,068 137,787 1.12 47,000 Formosa Chemicals & Fibre Corp. 105,122 118,013 0.95 18,000 Hota Industrial Manufacturing Company Limited 54,772 83,697 0.68 23,000 Iron Force Industrial Company Limited 103,194 155,429 1.26 10,000 Kingpak Technology Inc. 108,087 98,112 0.79 1,000 Largan Precision Company Limited 74,801 91,292 0.74 146,000 Taiwan Cement Corp. 148,321 145,054 1.18 57,000 Taiwan Paiho Limited 173,159 151,957 1.23 155,838 Taiwan Semiconductor Manufacturing 515,305 785,008 6.36 Company Limited 35,000 Tci Company Limited 138,162 156,235 1.27 38,000 TTY Biopharm Company Limited 91,153 133,699 1.08 10,000 Tung Thih Electronic Company Limited 138,350 159,335 1.29 43,000 Vivotek Inc. 111,744 114,368 0.93 123,000 Walsin Technology Corp. 66,002 111,527 0.90

2,517,251 2,944,974 23.87

Equities Total 11,669,996 12,089,289 97.94

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 11,669,996 12,089,289 97.94

Portfolio of Investments 11,669,996 12,089,289 97.94

Other Net Assets 253,732 2.06

Net Assets 12,343,021 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

165 MANULIFE GLOBAL FUND Greater China Opportunities Fund

Investment Objective: The sub-fund aims to achieve long-term capital growth. The sub-fund will invest in companies in the Greater China Region including, but not exclusively in, listed equities of companies in Hong Kong, Taiwan, Shanghai and Shenzhen markets or which derive, or which are expected to derive, a significant proportion of their revenue from goods produced or sold, or investments made or services performed, in Mainland China.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Greater China Opportunities Fund Class AA -19.33% Greater China Opportunities Fund Class I -18.24% MSCI AC Golden Dragon Index -16.83% PORTFOLIO REVIEW

Stock selection in Taiwan and Hong Kong were the largest contributors while stock selection in Hong Kong offset some of the performance. The sub-fund has been overweight China over the course of the reporting period.

Performing strongly was a Taiwanese passive component manufacturer. The company’s stock price had a pick up on the back of double digit growth in revenue and profit. The company experienced strong growth in its telecommunication segment within China, including mobile phones and network carriers. As the supplier of most Chinese mobile phone manufacturers, the company’s revenue benefited substantially thanks to the Chinese market’s persistent demand. In Taiwan, a pharmaceuticals company performed well on the back of an improved earnings outlook. This happened after the company announced the re-signing of their contract manufacturing agreement with a leading global pharmaceuticals company.

The sub-fund’s holdings in Chinese insurance and property companies were the primary reasons for the underperformance in the financial sector. Stock selection in industrials and telecommunication services, in addition to the overweight in consumer discretionary and industrials also negatively impacted the sub- fund. China’s largest car rental company detracted from performance on the back of growing concerns over stricter car rental policy and increasing competition from car hailing apps. Another detractor was a Chinese sports company listed in Hong Kong. They were the main performance detractor as the company reported earnings that were lower than expected. There was downward pressure in the company’s advertising income as the broader market spent less on marketing activities due to subdued economic growth. In addition, the company experienced a transition in business model in 2015 where there was an increase in capital expenditure. This dragged down the year-or-year net profit.

At the sector level, stock selection and the overweight in information technology were the largest contributors to outperformance. Healthcare and consumer discretionary also had a positive impact. Stock selection in financials, industrials, telecommunication services and the overweight to consumer discretionary offset some of the outperformance.

China remains the sub-fund’s largest overweight. The sub-fund continues to have an underweight in Hong Kong and Taiwan.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 166 Greater China Opportunities Fund

MARKET REVIEW

In China, the People’s Bank of China (PBoC) devalued the yuan in August in order to better reflect market forces, which led to further falls in Chinese equity markets. As a result, the PBoC announced a reduction in the required reserve ratio, and expectations grew that Beijing would reveal more stimulus programmes to spur growth. During the National People’s Congress Annual Work Report in March, the government released growth targets for 2016 highlighting China’s pro-growth stance. China A-shares were not included in the benchmark MSCI benchmark indices, citing concerns around China A-share market accessibility, Qualified Foreign Institutional Investors (QFII) quota allocation effectiveness, capital mobility policy changes and the effectiveness of new trading suspension policies. The Hong Kong Monetary Authority raised its base rate for the first time in nine years following the hike in US interest rates. Retail sales in Hong Kong remained weak during the period and the Hong Kong Tourism Board expects mainland Chinese visitor arrivals to drop by 3.2% with spending down 4.0% in 2016.

In Taiwan, the central bank lowered the benchmark interest rate four times over the past year to spur economic growth and boost real demand as export growth remained sluggish. The National Financial Stabilization Fund and four other government funds had bought more than NT$4 billion worth of stocks to help support the equity market in February, but announced plans to pull out as market sentiment had stabilised.

OUTLOOK

The China and Hong Kong markets held up better than expected despite the Brexit driven sell-off as many investors believe the delay in the Fed rate hike would have a more positive overall effect. The PBoC will continue to take on a loose monetary policy stance. If the global environment continues to deteriorate, China’s government may accelerate infrastructure fixed asset investment again to support growth. Investors are likely to be concerned over further renminbi depreciation, until policymakers’ intentions are fully understood. Volatility in Chinese stocks is likely to continue and the sub-fund’s portfolio manager will overweight the sub-fund towards companies with better earnings visibility and a good management track record in tougher times.

The sub-fund’s portfolio manager has identified a number of companies that are seeing improvement in their operations, particularly in the machinery and gas distribution sectors. The sub-fund is overweight in these two sectors as the PM remains optimistic about the growth potential and believes that performance will reflect its positive fundamental outlook in the coming quarters.

The sub-fund’s portfolio manager is selectively adding to companies that have better earnings visibility in the gas distribution and environmental protection sectors during this time of uncertainty. The sub- fund’s portfolio manager also continues to like the electronic auto component car makers. Their orders remain robust given the growing demand for advanced driver assistance systems and higher content per vehicle.

In Taiwan, while poor fundamentals in the first half of 2016 are being digested by the market, it is noted that the bearish sentiment will only intensify. The market generally expects replacement demand driven by the iPhone 7, as well as peak-season demand for low and mid-end smartphones to shed light on the 2016 second half outlook. However, the sub-fund’s portfolio manager believes the market’s high expectations could potentially result in more selling pressure if the aforementioned catalysts fail to deliver. The sub-fund’s portfolio manager is getting more constructive on auto parts companies after the correction. They are likely to see increasing electronic sensors per car in future new car models. It is expected that the tech sector will outperform non-tech sectors in Taiwan through the second half of 2016 due to a weak Taiwan dollar; 2015 tech underperformance; attractive valuations and dividend yields; and a change in sentiment in the non-tech sectors from the fourth quarter of 2015. The PM views healthcare and industrials favourably. The PM is also neutral on tech, telecom and consumer while maintaining an underweight view on materials and financials.

167 MANULIFE GLOBAL FUND HEALTHCARE FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Cayman Islands 875,280 3sbio Inc. 1,027,316 896,836 0.29

1,027,316 896,836 0.29 Denmark 57,229 Novo-Nordisk A/S 3,209,700 3,035,998 0.97

3,209,700 3,035,998 0.97 France 84,558 Sanofi-Aventis SA 8,454,613 6,956,859 2.22

8,454,613 6,956,859 2.22 Germany 91,133 Fresenius SE 5,080,516 6,579,955 2.10 70,834 Merck KGaA 6,047,953 7,099,434 2.27

11,128,469 13,679,389 4.37 Ireland 53,645 Allergan plc 15,687,480 12,231,060 3.91 112,514 Medtronic Inc. 7,692,018 9,661,015 3.09 110,395 Perrigo Company 10,646,321 9,899,120 3.15

34,025,819 31,791,195 10.15 Jersey – Channel Islands 56,316 Shire plc – ADR 8,460,059 10,271,475 3.28

8,460,059 10,271,475 3.28 Switzerland 158,838 Novartis AG – ADR 12,663,842 12,915,118 4.12 55,184 Roche Holding AG 14,527,247 14,357,180 4.59

27,191,089 27,272,298 8.71 United Kingdom 221,210 Astrazeneca plc 13,942,845 12,936,884 4.13 363,090 Glaxosmithkline plc 8,122,797 7,627,783 2.44 1,098,168 Indivior plc 2,748,378 3,697,737 1.18 424,735 Smith & Nephew plc 7,150,602 7,059,499 2.25

31,964,622 31,321,903 10.00 United States 166,887 Abbott Laboratories 6,209,873 6,453,520 2.06 155,395 Abbvie Inc. 8,414,381 9,545,915 3.05 18,697 Amerisourcebergen Corp. 1,415,109 1,455,188 0.46 75,795 Amgen Inc. 9,601,559 11,367,734 3.63 138,662 Baxter International Inc. 5,223,113 6,214,831 1.98 51,366 Becton Dickinson & Company 5,457,456 8,638,734 2.76 52,325 Biogen Idec Inc. 16,130,050 12,413,061 3.96 35,273 Bio-Rad Laboratories Inc. – A 4,462,561 4,908,238 1.57 76,105 Bristol-Myers Squibb Company 4,366,365 5,543,488 1.77 51,437 Celgene Corp. 6,201,067 5,024,366 1.60 22,394 Cooper Companies Inc. 3,761,556 3,830,494 1.22 81,829 CVS Health Corp. 5,604,595 7,736,932 2.47

MANULIFE GLOBAL FUND 168 HEALTHCARE FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 120,041 Eli Lilly & Company 7,165,206 9,310,380 2.97 80,477 Emergent Biosolutions Inc. 2,628,318 2,272,670 0.73 88,281 Express Scripts Inc. 6,529,097 6,654,622 2.13 112,083 Gilead Sciences Inc. 12,111,883 9,171,752 2.93 48,470 Greatbatch Inc. 1,582,932 1,459,916 0.47 152,782 Johnson & Johnson 14,948,682 18,211,614 5.83 43,131 Juno Therapeutics Inc. 2,231,299 1,663,994 0.53 178,187 Merck & Company Inc. 9,220,330 10,154,877 3.24 10,267 Nuvectra Corp. 96,150 78,645 0.03 40,125 Parexel International Corp. 2,368,632 2,423,349 0.77 504,296 Pfizer Inc. 16,771,197 17,645,317 5.63 103,810 Stryker Corp. 8,295,789 12,311,866 3.93 99,911 Zimmer Holdings Inc. 9,190,910 11,864,431 3.79

169,988,110 186,355,934 59.51

Equities Total 295,449,797 311,581,887 99.50

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 295,449,797 311,581,887 99.50

Portfolio of Investments 295,449,797 311,581,887 99.50

Other Net Assets 1,563,754 0.50

Net Assets 313,145,641 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

169 MANULIFE GLOBAL FUND HEALTHCARE FUND

Investment Objective: The sub-fund aims to provide medium to long term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and equities of companies in healthcare and related industries globally and which are listed on any stock exchange. The sub-fund may invest in companies which derive a significant portion of their earnings from medical and pharmaceutical products and services. The remaining assets of the sub-fund may include bonds, deposits and other investments. PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Healthcare Fund Class AA -8.54% MSCI World/Health Care Index -4.60% Portfolio Review Baxalta, Stryker and Zimmer contributed to the sub-fund’s performance over the period. Baxalta was acquired during the year by Shire, and the stock went up as a result. Stryker benefited from new product launches and a growing market share. Zimmer outperformed given the recovery in market growth. Also, the negative sales impact of Zimmer’s acquisition of Biomet was under control and sales started to recover.

Biogen and Allergan detracted from the sub-fund’s performance over the period. Biogen declined as a result of disappointing data on one of its key pipeline drugs. The sub-fund’s portfolio manager believe that investors had assigned little pipeline value to the stock before the news was released and now it is even cheaper. Biogen has other key pipeline drugs that could potentially bring huge upside to the stock. Allergan fell when its merger with Pfizer was cancelled. Allergan’s stock has fallen below the price it had before Pfizer made the offer to acquire the company. The sub-fund’s portfolio manager believes the stock is undervalued. Market Review The healthcare sector declined and underperformed the broader equity market over the 12-month period ended 30 June 2016. Medical equipment significantly outperformed other subsectors, while biotechnology had the weakest return, reversing the previous trend.

The UK’s decision to leave the EU, known as “Brexit,” was the most significant event of the period. However, Brexit had little impact on the fundamentals of the healthcare sector beyond currency fluctuations. In fact, many UK-based healthcare companies are multinational corporations with a significant amount of international sales, and the falling British pound actually drove up their stock prices. Outlook Even though the market has rebounded somewhat, the sub-fund’s portfolio manager will still be cautious and only pick high-quality companies with diversified revenue and profit streams. Many of those stocks are at more reasonable valuations now and are presenting good entry points.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 170 INDIA EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

India 337,988 Aurobindo Pharma Limited 3,912,788 3,718,165 1.98 666,883 Axis Bank Limited 4,332,645 5,271,267 2.81 247,646 Cholamandalam Investment & Finance Inc. 2,482,566 3,480,347 1.86 1,430,118 Crompton Greaves Consumer Electricals 2,915,459 3,045,865 1.62 Limited 48,237 Dr Reddys Laboratories Limited 2,217,897 2,416,831 1.29 200,805 Emami Limited 3,013,128 3,273,383 1.75 201,786 Godrej Consumer Products Limited 3,701,793 4,805,133 2.56 603,318 Havell’s India Limited 2,746,322 3,217,060 1.72 220,819 HCL Technologies Limited 2,683,152 2,389,780 1.27 459,182 Hdfc Bank Limited 6,803,088 8,003,673 4.28 113,315 Hero Honda Motors Limited 4,936,484 5,335,885 2.85 587,996 Hindustan Lever Limited 7,305,929 7,827,942 4.18 148,501 Hindustan Petroleum Corp. 2,066,012 2,191,940 1.17 432,737 Housing Development Finance Corp. 6,741,169 8,037,370 4.28 1,092,480 Icici Bank Limited 4,102,878 3,893,586 2.08 755,947 Indian Oil Corp. Limited 4,712,085 4,939,249 2.63 355,492 IndusInd Bank Limited 4,651,366 5,854,763 3.13 763,841 Infosys Technologies Limited 11,271,600 13,250,023 7.07 930,749 ITC Limited 4,666,693 5,080,228 2.71 366,561 Kalpataru Power Transmission Limited 1,310,650 1,388,698 0.74 572,735 Kansai Nerolac Paints Limited 2,271,252 2,631,822 1.40 378,708 Kotak Mahindra Bank Limited 3,935,100 4,283,109 2.28 688,558 Mahindra & Mahindra Financial Services 3,128,572 3,408,890 1.82 86,350 Maruti Suzuki India Limited 5,285,364 5,356,943 2.86 210,520 MindTree Limited 2,047,345 2,073,710 1.11 30,150 Nestle India Limited 2,804,047 2,900,148 1.55 1,645,899 Ntpc Limited 3,698,304 3,811,476 2.03 10,101 Page Industries Limited 2,073,010 2,097,741 1.12 561,900 Reliance Industries Limited 8,574,355 8,068,281 4.31 358,486 Sadbhav Engineering Limited 1,334,025 1,553,829 0.83 17,324 Shree Cement Limited 2,671,486 3,733,672 1.99 291,267 Shriram Transport Finance 4,352,371 5,195,324 2.77 131,147 Strides Arcolab Limited 2,476,782 2,193,439 1.17 355,106 Sun Pharmaceutical Industries Limited 4,722,927 4,014,861 2.14

171 MANULIFE GLOBAL FUND INDIA EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

India (continued) 204,042 Tata Consultancy Services Limited 6,785,379 7,718,242 4.12 861,708 Tata Motors Limited 4,291,279 5,863,275 3.12 830,101 Titan Industries Limited 4,398,310 4,996,378 2.66 77,665 Ultra Tech Cement Limited 3,473,058 3,924,985 2.09 508,830 Voltas Limited 2,388,810 2,429,387 1.29 260,785 Yes Bank Limited 4,175,564 4,277,603 2.28 774,760 Zee Entertainment Enterprises Limited 4,778,603 5,240,092 2.79

166,239,647 183,194,395 97.71

Equities Total 166,239,647 183,194,395 97.71

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 166,239,647 183,194,395 97.71

Portfolio of Investments 166,239,647 183,194,395 97.71

Other Net Assets 4,297,340 2.29

Net Assets 187,491,735 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 172 INDIA EQUITY FUND

Investment Objective: The sub-fund aims to provide long-term capital growth for those investors who hold a long-term investment view and are prepared to accept significant fluctuations in the value of their investments. The sub-fund’s investment portfolio will consist mainly of equity-related investments and equities of companies covering the different sectors of the Indian economy and which are listed on a stock exchange either in India or overseas. The remaining assets of the sub-fund may include convertible bonds, bonds, deposits and other investments. Investments in the Indian market shall be made through a Foreign Institutional Investor (“FII”) registered with the India regulator. Such an FII can be either the Company or the Investment Manager.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

India Equity Fund Class AA -2.63% India Equity Fund Class I2 -1.80% MSCI India 10/40 Index -6.53% PORTFOLIO REVIEW

During the period under review, volatility was high in India as global factors were in focus with currency devaluation and slowdown in China, concerns on growth across regions, reversion of interest rate cycle of the Fed after almost 10 years and falling oil prices causing stress across many emerging market currencies and balance sheets.

On the domestic front, India saw a better country balance sheet as current account deficit came down, forex reserves went up and inflation remained low driven by lower oil and other commodity prices. As a result the Reserve Bank of India (RBI) started out on an accommodative monetary policy stance and loosened liquidity measures for better transmission of lower policy rates. At the same time, the RBI also tightened non-performing asset (NPA) recognition norms, which accelerated stress assets recognition in the banking system. In spite of a relatively good macro backdrop, aggregate demand is yet to show a decisive bounce-back in India, keeping capacity utilisation low. This is in substantial parts caused by the stress in the rural economy which is reeling under pressures of lower global prices in agro-commodities and two back to back years of below normal rainfall. This has prompted the central government to focus on the rural economy in the Union Budget presented in February 2016 with substantial increase in allocations for their rural focused programmes.

The sub-fund was overweight on financials, select consumption plays within the industrials sector, consumer discretionary and consumer staples. The focus of the sub-fund was to play on domestic consumption which is relatively resilient to the global turmoil as India’s export sensitivity to overall GDP is lower than other emerging markets. Within financials, the sub-fund was primarily overweight on retail lending-focused names, which were largely immune to the asset quality challenges coming from corporate India. The sub-fund was also overweight on select pharmaceutical names which will benefit from faster product approval cycle expected in USA. During the period under review, the portfolio was underweight in cyclical and capital intensive sectors like energy, materials, telecom and capital goods names within the industrial basket. The portfolio was underweight in information technology owing to the sector facing disruption-led challenges and weak earnings outlook.

The sub-fund gained from stock selection in financials, industrials, energy, materials, consumer staples and healthcare. The sub-fund also gained because of underweight allocation in telecom, healthcare, materials, energy and utilities. On the other hand, stock selection in consumer discretionary and information technology were the biggest value detractors from performance.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

173 MANULIFE GLOBAL FUND INDIA EQUITY FUND

MARKET REVIEW

During the first 3 months of the period under review (i.e. 1 July 2015 to 30 September 2015) Indian markets initially consolidated and then saw correction in August and September amidst a lot of volatility as emerging markets corrected globally. This correction was triggered by the currency devaluation in China, and a correction in commodity prices including oil. Oil prices corrected by over 20% during the quarter. This was accompanied by weak rainfall affecting crop production and rural incomes in India, affecting consumption and rural demand. At the end of September, RBI surprised the market with a higher than expected rate cut, and the market showed some recovery.

During the following quarter (1 October 2015 to 31 December 2015) the Indian markets consolidated point to point, but this was accompanied by a lot of volatility. The markets initially rallied fuelled by the surprise rate cut by RBI at the end of September. A risk-on rally started in the emerging markets and hopes of reviving demand in India were present during the festive month of October. This did not sustain from November onwards as the earnings season largely disappointed across sectors and political deadlock continued stalling major expected legislation like introduction of Goods and Services Tax (GST).

In the first quarter of 2016 (1 January 2016 to 31 March 2016), Indian markets showed the maximum volatility within the period under review; correcting sharply in January and February and then rallying in March. January saw correction as a global risk sell-off started with concerns on the Chinese economy, slowing global growth and as the earnings season remained weak in India. The sell-off continued in February with all sectors ending up in the red, further amplified in India by reporting of higher than expected NPA in the banking system in the earnings season. At the end of February, the Indian Union Budget was presented; the budget had a focus on rural India – allocation under different schemes to rural India was up 20% year-on-year. After the sharp correction in January and February, March was characterised by global markets rallying led by a rebound in oil prices from the February lows by over 30%; this was also coupled with the Fed slowing down the pace of target rate increase in their March statement citing slow global economy.

In the second quarter of 2016 (1 April 2016 to 30 June 2016), Indian markets rallied on a sustained basis outperforming other emerging markets. Hopes of a domestic economic recovery picked up led by better macro data, good results in the earnings season and expectation of a normal rainfall. April was a month of consolidation; the start of the earnings season was decent, with many companies delivering better- than-expected volume growth vis-à-vis low expectations. April also saw many of the high frequency economic indicators posting healthy numbers in March like vehicle sales, cement dispatches, air traffic growth, cargo growth etc. Also the rainfall forecasts were projected to be normal in the 2016 calendar year from various agencies, raising hopes of better agricultural production and a bounce back in the rural economy. May saw a decent rally as domestic inflows were strong, and the earnings season progressed well with many companies beating estimates. June saw decent performance albeit with some volatility on the global front as UK voted in favour of the referendum to leave the EU, but the markets recovered quickly post event as again domestic optimism came back into focus.

Overall, Indian markets gave marginally negative returns for the period under review. Materials, information technology, utilities, consumer staples and consumer discretionary outperformed the market. On the other hand telecommunication, industrials, healthcare, energy and financials underperformed the market.

Materials significantly outperformed the markets led by steel and cement stocks as both commodities saw stronger prices during the period under review. While the improvement in cement prices was led by consolidation in India; steel prices saw rally globally during the period. The Indian government put protective duties on steel imports, raising the profitability and competitiveness of the domestic steel industry. Information technology outperformance was driven by stock specific performance as one of the heavyweights declared better-than-expected results. Utilities outperformed as a key power sector reform was put in place to improve the health of the state-owned power distribution companies, paving the way for better volume growth for the power generators. Consumer discretionary did well led by 2-wheeler and domestic focused automobile names anticipating improvement in rural demand after the Union Budget. Consumer staples stocks remained resilient and outperformed in an otherwise volatile market from their defensive nature and also as their profitability expanded from falling input prices.

MANULIFE GLOBAL FUND 174 INDIA EQUITY FUND

Telecommunication underperformed as entry of the fourth large operator in India weighed down on future outlook of the Industry and raised capex requirements. Industrials underperformed as the conviction of a recovery in capex cycle dwindled. The underperformance of healthcare was driven by US Food and Drug Administration (USFDA) taking regulatory action against some of the largest pharmaceutical companies in India. Energy underperformed led by lower refining margins. Financials underperformed as tighter NPA recognition norms caused a spike in NPA and eroded book value of the corporate lending-focused banks.

OUTLOOK

The sub-fund’s portfolio manager believes growth has bottomed out and interest rates have decisively peaked. Outlook on inflation also remains benign led by low core inflation. Due to prudent policymaking both by the government and RBI, as well as some help from falling crude prices, India’s Current Account Deficit (CAD) is much lower and its foreign reserves near all-time high. The sub-fund’s portfolio manager believes the government reforms targeted towards the revival of investments led by a directed effort of easing business conditions, as well as a more transparent method of acquiring factors of production, is good for raising the competitiveness of India as an investment destination. Growth and inflation mix has also changed for the better, allowing the central bank to start its easing cycle and take an accommodative stance. The recent liquidity enhancement measures by the central bank should also help incrementally in better transmission of lower rates in the financial system. The focus of the government on rural India and capex on roads and rail in the next fiscal should also help increase rural income and help support the investment cycle till private investment picks up. If the India Meteorological Department forecasts are correct about a normal monsoon in the 2016 calendar year, it will significantly alleviate stress in rural India by raising crop production and rural income after two years of below normal rainfall.

The sub-fund’s portfolio manager’s outlook remains constructive with a medium to long term view. The sub-fund’s portfolio manager expects consumption growth to pick up led by increased disposable income from lower inflation, lower rates and an increase in government salaries in the 2016 calendar year. Crucial reforms such as GST can boost productivity of the economy streamlining movement of goods across the country. While domestic private investment is taking time to pick up, there’s been a healthy pick up in foreign direct investments (FDI). The government’s recent efforts towards reviving the health of the power sector with key reforms on the “State Electricity Boards” (SEB) should also yield results over the medium term improving power availability.

The sub-fund’s portfolio manager remains constructive with a medium to longer term view. The sub-fund’s portfolio manager believes an overweight in financial, consumer staples and consumer discretionary are the best way to play this. Within financials, portfolio bias is more towards retail lending- focused names based on the belief that banks focused on corporate lending can see continued asset quality pressures. The sub-fund has recently seen increased weighting towards consumer discretionary stocks, based on anticipation of a pickup in demand led by government capex and normal monsoon. The sub-fund is also overweight on cement stocks which will be a beneficiary of increased demand from government focus in road, rail and rural capex. The sub-fund is underweight in healthcare as the sector is facing regulatory challenges along with rising margin pressure from higher investment in R&D. The sub-fund is underweight in technology owing to the sector facing disruption led challenges and weak near term earnings outlook. The sub-fund continues to remain underweight on global cyclicals like metals, energy; while also remaining negative on capital intensive sectors like telecom.

175 MANULIFE GLOBAL FUND JAPANESE GROWTH FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Japan 13,700 Amada Company Limited 126,774 137,553 0.33 3,400 Asahi Breweries Limited 103,989 109,358 0.27 74,000 Astellas Pharma Inc. 1,027,235 1,151,919 2.79 11,900 Bridgestone Corp. 397,745 378,471 0.91 41,700 Chubu Electric Power Company Inc. 557,190 587,658 1.42 400 Cosmo Energy Holdings Company Limited 5,039 4,841 0.01 58,000 Dai Nippon Printing Company Limited 567,325 640,463 1.55 43,200 Daiichi Sankyo Company Limited 791,397 1,039,600 2.52 177,000 Daiwa Securities Group Inc. – ADR 1,036,205 925,597 2.24 4,000 Dentsu Inc. 202,967 185,630 0.45 13,300 East Japan Railway Company 1,185,175 1,220,597 2.96 20,000 Ebara Corp. 93,180 109,160 0.26 118,000 Fuji Electric Holdings Company Limited 446,370 484,468 1.17 58,000 Fuji Media Holdings Inc. 726,007 648,363 1.57 31,100 Hitachi Capital Corp. 747,768 609,988 1.48 41,000 Hitachi Limited 254,228 169,090 0.41 84,000 Isuzu Motors Limited 968,362 1,020,324 2.47 25,400 Itochu Corp. 322,062 306,303 0.74 62,300 Japan Post Holdings Company Limited 857,916 752,195 1.82 23,700 KDDI Corp. 600,407 717,791 1.74 20,500 Keihin Corp. 332,408 311,733 0.76 78,600 Kuraray Company Limited 978,491 929,114 2.25 5,000 Kyocera Corp. 248,211 235,540 0.57 27,300 Kyorin Company Limited 552,530 530,941 1.29 42,400 Maruha Nichiro Corp. 934,364 1,149,258 2.78 268,000 Mitsubishi Heavy Industries Limited 1,042,625 1,062,249 2.58 268,600 Mitsubishi Ufj Financial Group Inc. 1,340,953 1,191,368 2.89 70,300 Mitsui & Company Limited 834,033 829,976 2.01 37,000 Mitsui Sugar Company Limited 173,640 174,588 0.42 116,300 Monex Group Inc. 301,824 260,242 0.63 30,100 MS&AD Insurance Group Holdings Inc 852,452 767,692 1.86 44,000 NH Foods Limited 996,957 1,067,199 2.59 22,000 Nichias Corp. 176,371 166,951 0.40 46,000 Nichirei Corp. 260,647 420,237 1.02 233,000 Nippon Express Company Limited 1,159,412 1,056,361 2.56 298,700 Nippon Light Metal Holdings Company 569,507 656,771 1.59 Limited 17,900 Nippon Paper Industries Company Limited 346,824 311,206 0.75 104,000 Nippon Steel & Sumikin Bussan Corp. 322,283 332,889 0.81 31,800 Nippon Telegraph & Telephone Corp. 998,169 1,485,042 3.61 9,600 Nippon Television Network Corp. 173,263 156,910 0.38 31,000 Nisshin Oillio Group Limited 138,544 142,054 0.34 77,100 Nisshinbo Holdings Inc. 811,027 692,351 1.68 93,500 Nomura Holdings Inc. 555,329 332,210 0.81 26,200 NTT Docomo Inc. 566,003 705,184 1.71 263,300 Resona Holdings Inc. 1,155,464 952,937 2.31

MANULIFE GLOBAL FUND 176 JAPANESE GROWTH FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Japan (continued) 22,000 Sapporo Holdings Limited 532,448 634,198 1.53 29,100 SBI Holdings Inc. 337,193 285,664 0.69 5,000 Secom Company Limited 320,686 367,418 0.89 10,400 Seino Holdings Corp. 103,158 94,605 0.23 16,000 Seven & I Holdings Company Limited 682,166 666,400 1.62 22,800 Softbank Corp. 1,167,821 1,284,130 3.11 85,000 Sony Financial Holdings Inc. 1,383,750 946,053 2.29 211,000 Sumitomo Heavy Industries Limited 965,096 911,456 2.22 120,000 Sumitomo Mitsui Trust Holdings Inc. 388,392 385,037 0.93 14,800 Takara Holdings Inc. 110,265 135,207 0.33 18,100 Tdk Corp. 1,020,351 998,463 2.42 33,100 Tokio Marine Holdings Inc. 1,241,705 1,084,280 2.64 11,000 Tokyo Gas Company Limited 51,419 44,991 0.11 64,200 Tokyo Tatemono Company Limited 736,378 763,267 1.85 22,000 Tokyu Fudosan Holdings Corp. 149,071 135,701 0.33 142,000 Tosoh Corp. 604,318 646,554 1.57 12,000 Toyota Motor Corp. 711,065 589,814 1.43 41,400 TV Asahi Corp. 705,542 667,814 1.62 160,000 Ube Industries Limited 287,397 261,517 0.63 17,000 West Japan Railway Company 1,014,519 1,069,602 2.59 225,900 Yamada Denki Company Limited 1,047,515 1,186,808 2.88

40,398,927 40,279,351 97.62

Equities Total 40,398,927 40,279,351 97.62

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 40,398,927 40,279,351 97.62

Portfolio of Investments 40,398,927 40,279,351 97.62

Other Net Assets 981,321 2.38

Net Assets 41,260,672 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

177 MANULIFE GLOBAL FUND JAPANESE GROWTH FUND

Investment Objective: The sub-fund aims to achieve capital growth principally from a portfolio of Japanese stocks, with the emphasis on larger companies. Scope exists for a proportion of the sub-fund to be invested in warrants. It should be noted that the value of assets invested in warrants is subject to greater fluctuations, warrants being more volatile than ordinary shares.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Japanese Growth Fund Class A -10.14% Japanese Growth Fund Class AA -10.35% Japanese Growth Fund Class I3 -8.75% TOPIX Index -6.93% PORTFOLIO REVIEW

Over the past 12 months, sector allocation effect and stock selection effect contributed negatively while interaction effect became positive. Financial sectors such as securities & commodity futures, banks, and insurances negatively affected the fund. On the other hand, domestic sectors such as information & communication, as well as fishery, agriculture & forestry contributed positively.

The best contributor was Nippon Suisan Kaisha, a seafood producer. The company enjoyed brisk sales of food products even after price hikes. On the negative side, financial services provider Nomura Holdings fell as the equity market lost momentum.

MARKET REVIEW

The TOPIX Total Return Index (TOPIX) fell by 21.97% in yen terms over the past 12 months. The equity market finally trended downwards due to a stronger yen, which was supported by risk-off money flow.

In the third quarter of 2015, the Japanese market succumbed to a sell-off, falling 12.9% in yen terms. Although global markets were also in decline, the reaction of the Japanese market was more extreme. Possible reasons for this were that Japan is considered a liquid proxy for emerging markets and is generally considered a trading rather than an investment market by some foreign investors. There was also some disappointment with the slowing momentum of Abenomics reforms, which caused the S&P ratings agency to downgrade Japanese government debt by one notch to A+.

After a sharp sell-off in the third quarter, the Japanese market saw a strong recovery in the fourth quarter. The Japanese market rose almost 10%, outperforming all other global markets. Despite some concerns about the technical recession in Japan in the second and third quarters, the market focused more on expected improvements in the fourth quarter. This is because the recession had been driven by a drawdown of inventories rather than a decline in demand. Economic data showed a continued squeeze in the employment market with the jobs-to-applicants ratio of 1.25, now at its highest level since 1991. Core consumer price index (CPI) edged back towards 1%, which may have persuaded the Bank of Japan to make only a limited extension of its quantitative easing (QE) policy on 18 December by announcing a slight increase in the duration of Japanese Government Bonds it intends to buy.

The market had a weak start to 2016, declining 12% in yen terms. This was weaker than most developed markets. The two concerns driving the Japanese market’s decline were the slowdown in the Chinese economy and the impact of currency appreciation. Japan’s unemployment rate continued to decline towards 3% and core inflation remained close to 1%. These statistics show a positive outlook to the Japanese economy, despite negative GDP figures for last year’s fourth quarter and a weak Tankan survey announced at the beginning of April. For corporates, currency concerns and the spectre of a further 2% consumption tax hike in April 2017 are weighing on their outlook for coming years. However, there could be signs for a stronger domestic economy in 2016. These include the approval of a record budget in March, and hints of a recovery in private capital spending with new housing starts rising in February.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 178 JAPANESE GROWTH FUND

The market was driven by yen strength over the second quarter, which has been a feature since the Bank of Japan first announced a policy of negative interest rates at the end of January. The yen’s strengthening was hastened by the delay in any further Fed rate rise, due to a slowdown in the US followed by Brexit at the end of last month. The yen rose from 123 to 103 over the period. Although the market declined 8% in yen terms, it actually rose slightly in US dollar terms. The Brexit referendum and the Leave result have caused a major upset in global markets. Although it should not have a major impact on global growth, it has clearly raised concerns about a rise in protectionism and a pandering to populism that could have further geopolitical consequences.

OUTLOOK

Since the beginning of the year, MSCI Japan has underperformed MSCI World by 5.1% in US dollar terms. This recent relative underperformance has brought back the question of whether Japanese equities are a trade (short-term beta play on the global economy) or an investment (long-term holding strategy on improving and sustainable Japanese returns on equity). Yen strength in the first half of the year, and weak company forecasts in April/May, have led many investors to feel that Japan’s earnings improvement in the Abe era is ephemeral.

The sub-fund’s portfolio manager believe that today’s Japan is less vulnerable to currency movements, as a large part of its production base has moved overseas. We also believe that the focus on improving returns and better use of corporate cash positions is starting to have a positive effect. The government is lowering corporate tax rates and is looking at incentivising corporates to spend their cash piles rather than just have them sitting on their balance sheets. This could drive a further leg to Japan’s economic recovery.

179 MANULIFE GLOBAL FUND LATIN AMERICA EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Argentina 8,866 Banco Macro Bansud SA – ADR 511,891 654,931 1.26

511,891 654,931 1.26 Bermuda 11,617 Credicorp Limited 1,076,932 1,795,175 3.45

1,076,932 1,795,175 3.45 Brazil 555,886 Ambev SA – ADR 3,071,973 3,263,051 6.27 302,870 Banco Bradesco SA – ADR 2,096,610 2,326,041 4.47 142,528 Banco Itau Holding Financeira SA 1,836,569 1,314,796 2.53 244,000 BB Seguridade Participacoes SA 2,039,299 2,122,432 4.08 272,000 BM&F Bovespa SA 969,236 1,493,462 2.87 374,740 BR Malls Participacoes SA 1,432,915 1,499,706 2.88 140,200 Cielo SA 1,338,224 1,469,722 2.82 77,600 Hypermarcas SA 482,271 553,923 1.06 403,877 Itau Unibanco Holding SA – ADR 4,386,738 3,711,629 7.13 192,700 Klabin SA 922,782 899,614 1.73 400,200 Kroton Educacional SA 1,491,366 1,693,829 3.26 193,200 Linx SA 682,716 962,119 1.85 181,900 Lojas Renner SA 1,013,403 1,316,564 2.53 68,700 Mahle-Metal Leve SA 516,478 495,956 0.95 58,300 Raia Drogasil SA 552,808 1,126,817 2.17 40,700 Smiles SA 386,361 604,244 1.16 82,400 Ultrapar Participacoes SA 1,842,262 1,793,814 3.45 77,600 Valid Solucoes e Servicos de Seguranca em 1,262,264 661,952 1.27 Meios de Pagamento e Identificacao SA 178,700 Weg SA 655,517 761,905 1.46

26,979,792 28,071,576 53.94 Chile 565,312 Empresa Nacional de Electricidad SA 477,836 514,964 0.99 206,321 Saci Falabella 1,857,118 1,572,677 3.02

2,334,954 2,087,641 4.01 Luxembourg 67,083 Atento SA 751,419 570,206 1.10

751,419 570,206 1.10 Mexico 330,100 Alfa SA de CV 729,337 543,561 1.04 305,600 Alsea SAB de CV 1,074,783 1,155,867 2.22 557,075 Bolsa Mexicana de Valores SAB de CV 1,048,804 843,048 1.62 566,305 Corporacion Inmobiliaria Vesta SAB de CV 1,039,195 852,126 1.64 458,800 Fibra Uno Administracion SA de CV 916,839 961,752 1.85 24,670 Fomento Economico Mexicano SAB de 1,485,711 2,260,512 4.34 CV – ADR 409,100 Gentera SAB de CV 693,493 731,716 1.41

MANULIFE GLOBAL FUND 180 LATIN AMERICA EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Mexico (continued) 273,200 Grupo Aeroportuario del Centro Norte SAB 773,180 1,567,086 3.01 de CV 424,183 Grupo Financiero Banorte SAB de CV 1,891,357 2,289,358 4.40 229,700 Grupo Herdez SAB de CV 496,162 493,406 0.95 311,358 Grupo Mexico SAB de CV 740,307 697,715 1.34 258,487 Grupo Rotoplas SAB de CV 518,612 460,376 0.88 38,876 Grupo Televisa SA – ADR 1,014,001 999,113 1.92 318,300 Infraestructura Energetica Nova SAB de CV 1,518,927 1,301,307 2.50 537,300 Nemak Sab De Cv 672,514 626,950 1.21 16,045 Promotora y Operadora de Infraestructura 210,717 151,656 0.29 SAB de CV 103,000 Promotora y Operadora de Infraestructura 1,109,121 1,233,934 2.37 SAB de CV 369,100 Wal-Mart de Mexico SAB de CV 878,714 887,069 1.70

16,811,774 18,056,552 34.69 Peru 3 Grana y Montero SA 0 4 0.00

0 4 0.00 Spain 162,712 Cemex Latam Holdings SA 1,090,354 701,159 1.35

1,090,354 701,159 1.35

Equities Total 49,557,116 51,937,244 99.80

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 49,557,116 51,937,244 99.80

Portfolio of Investments 49,557,116 51,937,244 99.80

Other Net Assets 103,539 0.20

Net Assets 52,040,783 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

181 MANULIFE GLOBAL FUND LATIN AMERICA EQUITY FUND

Investment Objective: The sub-fund aims to make investments on a diversified basis to achieve long term capital growth for those investors who are prepared to accept significant fluctuations in the value of their investments. The sub-fund’s underlying investment portfolio will consist mainly of equity-related investments and equities of companies covering different sectors of the Latin American economy, including, but not limited to Brazil, Chile, Colombia, Mexico and Argentina and which are listed on any stock exchange. The remaining assets of the sub-fund may include convertible bonds, bonds, deposits and other investments.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Latin America Equity Fund Class AA -8.19% MSCI Latin America 10/40 Index -7.28%

PORTFOLIO REVIEW

The sub-fund lost value over the 12 months ending 30 June 2016 as a whole, despite the strong return generated over the second half of this period. The market recovery, particularly in Brazil, was led by lower quality names not represented in the portfolio, with the result that the sub-fund slightly underperformed the underlying markets in which it invests.

The relative performance of the sub-fund was however supported by an underweight exposure to Brazil for most of the period under review, with an overweight exposure to Mexico also adding value. The portfolio’s stock selection in Mexico was particularly strong. Stock selection in Brazil was a significant drag on relative performance with many of the companies held by the sub-fund yet to participate fully in the market rally that developed over the first few months of 2016.

The decision not to hold the leading Mexican telecommunications group America Movil added most relative value over the period under review as its share price suffered at the hands of intense competitive pressure in its home market as well as challenging market conditions elsewhere. Similarly, the decision to have no exposure to the Brazilian energy giant Petrobras was also beneficial. Not only is this company tainted by the “Car Wash” corruption scandal, its dollar debt is mismatched with predominantly local currency revenues and given the sharp falls seen in the value of the Brazilian real over the second half of 2015, this continues to have a marked impact on the company’s profitability.

Amongst the sub-fund’s holding in Mexico, regional airports operator OMA performed well on the back of a favourable outcome to its negotiations with the government over the next five years of tariffs and required investment. Fast-food restaurant operator Alsea also made a significant positive contribution to performance, its share price supported by a strong operating performance that should see revenues grow by 15% per annum according to the subfund’s portfolio manager’s view over the next five years, supported by strong consumer confidence.

One negative was the Brazilian airlines loyalty programme operator Smiles which suffered as its airline partner GOL was hurt by concerns that a combination of low demand and currency weakness will eat rapidly into its cash reserves.

A number of changes were made to the composition of the sub-fund’s portfolio over the period under review. The long-standing underweight exposure to Brazil was reversed as the change of government gave rise to a better economic prospect. This move was countered by a reduction in the sub-fund’s overweight exposure to Mexico. Exposure to the materials and industrials sectors was also reduced, with exposure to the financials sector correspondingly increased.

Amongst stock moves, a number of holdings where the quality of earnings came into question were divested. These included the Brazilian car rental company Localiza as well as the food group BRF. One new addition was WEG, a global industrial machinery manufacturer based in Brazil, which has a similar exposure to overseas revenues and exports as BRF, but without the cyclicality in costs.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 182 LATIN AMERICA EQUITY FUND

MARKET REVIEW

Latin American stockmarkets were broadly lower over the 12-month period under review, with only Argentina and Peru recording net gains. Share prices fell very sharply over the second half of 2015, dragged lower by an exceptionally poor performance from Brazil, but then recovered most of this lost ground over the subsequent six month period. Mexico was the worst performing market, giving up some of its previous outperformance.

The focus of investors was very much on Brazil over the entire period. The incumbent administration of President Dilma Rousseff became embroiled in the so-called “car wash” corruption scandal involving the state-controlled energy group Petrobras. This effectively blocked the legislative process and prevented any measures being taken to support an ailing economy. As a result, economic performance deteriorated rapidly, with GDP falling by close to 4% in 2015, with a similar fall expected for 2016. In consequence, and following popular protests, impeachment proceedings were initiated against President Rousseff forcing her to step aside in favour of the Vice President, Michel Temer, who promptly brought in a more conservative, market-friendly, administration which immediately began the much-needed task of fiscal consolidation, soon winning the confidence of financial markets. Share prices, which had already found some support from rebounding commodity prices, rose sharply in response.

In contrast, the Mexico economy continues to perform relatively well. GDP growth has accelerated thanks to Mexico’s exposure to the US economic recovery, a weaker currency that serves to enhance the country’s productivity advantages, as well as the internal reform story where the Pena Nieto administration is currently overhauling the energy sector. Mexico is one of a very short list of emerging market countries making tangible progress in implementing much needed reforms.

Argentina and Peru both found support from favourable political developments. In Argentina the economic mismanagement of the Kirchner period came to an end with the election of the market- friendly Maurico Macri. Although initially prompting some profit taking, the new administration quickly demonstrated a commitment to addressing economic concerns, not least through a devaluation of the currency, and the market soon stabilised. Amid an upswing in confidence, and with the economy starting to improve, MSCI also announced that it would start a consultation on the potential return of Argentina to the Emerging Markets Index. In Peru, the centre-right Pedro Pablo Kuczynski, a firm believer in free markets, was elected president. He quickly declared his support for mining and infrastructure investment and is already aiming to fast track around 20 projects to boost GDP growth.

OUTLOOK

Although Latin America seems to be over the worst, the outlook for financial markets remains far from certain.

In Brazil, hopes for a more orthodox team of politicians to deliver fiscal reform have prompted a reduction in sovereign yields and supported a stronger currency. However the new administration of Michel Temer may not be able to deliver further meaningful fiscal reform with the legislative process still fractured and the Petrobras “car wash” corruption scandal far from over and likely to claim further scalps. There is also no certainty that the impeachment process against Dilma Rousseff will succeed, and the possibility remains that she could return as President. Although these risks remain, the economic newsflow is however beginning to show some tentative improvement and an inflection point in the economy may well have been reached.

Mexico looks set for another year of strong GDP growth in 2016. This growth is coming from multiple sources, which inevitably means risks are more diversified. The first is the exposure to the US economic recovery. The second is the internal reform story. Both these pillars of growth are boons for employment and infrastructure investment. Alongside these, the more traditional emerging market themes of rising formal employment, a growing middle class and increasing credit penetration are at last showing signs of sustainable improvement in Mexico.

Outside the main economies of Brazil and Mexico, the Andean countries all offer an interesting combination of opportunities. At a macro level, commodity price headwinds are beginning to fade, though with little exposure to mining companies, this is less relevant for the sub-fund. Regardless of commodity prices, GDP growth of close to 2% for both Chile and Colombia in 2016, with Peru a little stronger still, seems likely. This would be a solid outcome, and should help support stockmarket performance over the year ahead.

183 MANULIFE GLOBAL FUND RUSSIA EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Cyprus 173,609 Ros Agro plc – GDR 2,826,698 2,599,795 2.84

2,826,698 2,599,795 2.84 Kazakhstan 365,378 KazMunaiGas Exploration Production – GDR 4,522,685 2,650,817 2.90

4,522,685 2,650,817 2.90 Russian Federation 547,278 Lenta Limited – Reg 6,016,598 3,932,192 4.30 215,870 Lukoil PJSC – ADR 12,911,785 8,926,226 9.75 301,203 MMC Norilsk Nickel PJSC – ADR 4,850,658 3,981,904 4.35 37,794 NovaTek OAO – GDR 3,062,529 3,858,767 4.22 269,811 Phosagro OAO – GDR 3,595,175 3,972,966 4.34 25,540 Phosagro OAO 333,090 376,077 0.41 403,991 Severstal – GDR 4,249,449 4,340,884 4.74 262,200 Tatneft – ADR 8,202,217 7,959,081 8.70 744,567 TMK PJSC – GDR 6,367,958 2,047,559 2.24 199,310 X5 Retail Group NV – GDR – Reg 2,889,366 3,961,286 4.33

52,478,825 43,356,942 47.38 United Kingdom 294,278 Nostrum Oil & Gas plc 2,775,067 1,206,979 1.32

2,775,067 1,206,979 1.32 Virgin Islands (British) 131,166 Mail.Ru Group Limited – GDR 3,650,670 2,383,942 2.61

3,650,670 2,383,942 2.61

Equities Total 66,253,945 52,198,475 57.05

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 66,253,945 52,198,475 57.05

MANULIFE GLOBAL FUND 184 RUSSIA EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Equities

Russian Federation 3,669,600 Alrosa Company Limited 4,198,846 3,942,949 4.31 75,500 Bashneft Pao 2,680,787 3,441,888 3.76 96,600,356 E.On Russia Jsc Eonr Rm 5,647,868 4,132,853 4.52 27,218 Magnit Pjsc Mgnt Ru 4,531,026 3,796,107 4.15 1,027,579 Mobile Telesystems Pjsc Mtss Rm 3,829,675 3,898,901 4.26 70,162 Mobile Telesystems Pjsc Mtss Ru 305,443 266,218 0.29 3,574,849 Moscow Exchange Micex 5,716,706 6,303,606 6.89 4,082,935 Sberbank RF 4,332,816 8,436,409 9.22 3,109,696 Surgutneftegas-Preference Sngsp Rx Pfd 1,950,316 1,866,157 2.04 3,527,632 Surgutneftegaz 1,639,821 1,808,458 1.98

34,833,304 37,893,546 41.42

Equities Total 34,833,304 37,893,546 41.42

Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2) 34,833,304 37,893,546 41.42

Portfolio of Investments 101,087,249 90,092,021 98.47

Other Net Assets 1,403,080 1.53

Net Assets 91,495,101 100.00

(1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

185 MANULIFE GLOBAL FUND RUSSIA EQUITY FUND

Investment Objective: The sub-fund aims to provide long-term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and securities of companies located in Russia and other companies located outside Russia whose income is predominantly derived from Russia, all of which in accordance with the regulations, are listed or traded on Regulated Markets as referred to in the Prospectus. The sub-fund may also invest in other countries in the Commonwealth of Independent States. The remaining assets of the sub-fund may include bonds, deposits and other investments.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Russia Equity Fund Class AA +0.10% MSCI Russia 10/40 Index +2.04% PORTFOLIO REVIEW

The sub-fund was broadly unchanged in value over the period under review as a whole, with a strong performance over the first half of 2016 balancing earlier losses. Relative performance was supported by avoiding or having underweight positions in some of the worst performing Russian stocks, whilst some off-benchmark holdings detracted from performance.

Within the consumer sectors, the decision to underweight the retailer Magnit and take an aggressive overweight stance in its peer X5 Retail Group paid off as shares in Magnit started to struggle due to high valuation multiples and a weakening consumer environment against a backdrop of high inflation, with the latest results also showing margins coming under pressure. Whilst X5 is not immune from consumer weakness it continues to benefit from a store refurbishment program and improving logistics, which have driven traffic growth ahead of the overall market.

The biggest relative position in the portfolio is the underweight in Gazprom, following the divestment of the company at the beginning of the period under review. This reflects the strong conviction that Gazprom will not generate shareholder value over any reasonable time period as its aims are too closely aligned with those of the Russian government which are not necessarily aligned with minority shareholders. There may be short-term periods when such a big relative bet can have a meaningful negative impact on performance but over a longer time horizon Gazprom will continue to underperform the privately-owned companies that are managed for the benefit of all shareholders. Indeed, Gazprom did outperform strongly at the start of the second quarter of 2016 after the government raised the possibility of higher dividend payouts from state-owned companies but after Gazprom announced that it would not meet any such target, its share price promptly gave back all gains.

The Kazakh oil firm KazMunaiGas EP was one of the largest detractors from performance over the period with its share price down more than 25% after a cut in the dividend by a new management team focusing on improving the efficiency of the business over the coming years. The stock is now trading at a discount to its cash position which should provide significant valuation support going forward.

Changes to the portfolio over the period under review were led by a reduced exposure to the energy sector, with not only Gazprom divested, but also the smaller oil and gas exploration firm Dragon Oil. New additions included ROS AGRO, an agricultural company involved in the manufacturing of sugar, oils and fats as well as greenhouse activities. The company raised some additional capital to finance its ambitious expansion plans. Not only is the valuation attractive but agriculture is a strategically important sector for Russia and one that should continue to enjoy broad governmental support.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 186 RUSSIA EQUITY FUND

MARKET REVIEW

The Russian stockmarket was little changed in US dollar terms over the 12-month period ending 30 June 2016, with the strength of the market in local currency terms countered by the rouble’s depreciation of close to 15% against the dollar.

The Russian economy remains heavily dependent upon the oil industry and share prices suffered at the hands of a lower oil price over the second half of 2015, as the price of a barrel of oil fell around 40% over this period with Brent slipping from USD 67 to 38 a barrel. The subsequent recovery in the oil price, to around USD 50 a barrel for Brent, alongside other commodity prices, helped the Russian stockmarket recover over the remainder of the period under review. Nevertheless, and given that the lion’s share of government revenue is sourced from the oil industry, Russian GDP fell by 3.7% in 2015. Some improvement in 2016 is expected, as both industrial and construction output are now growing and inflation is rapidly falling back into single digits, though activity is still expected to show some contraction on a calendar year basis. This improving economic backdrop was confirmed by the central bank’s decision to lower its key policy interest rate by 0.5% to 10.5% in June.

International sanctions against Russia, imposed following the country’s involvement in the conflict in Ukraine, were renewed in the summer of 2015 as no progress has been made in meeting EU demands on the Crimea and Eastern Ukraine. Indeed, the conflict seems to have slipped off the international news agenda, no doubt to Russia’s satisfaction. The economic impact of these sanctions has been admitted by Russia to be significant, if not perhaps on the same scale as the lower oil price. Russia’s commencement of military action in Syria was a further significant development, if perhaps one of limited macroeconomic impact.

The proposal from government that state-owned companies would be forced to adopt a minimum 25% payout ratio, based on IFRS earnings, caused significant excitement amongst investors and led to some quite irrational market moves. It is however doubtful whether this suggestion will come to pass; indeed, it may not even be the final chapter in a long-running saga over state-run company payouts and it wouldn’t be a surprise were a somewhat watered-down version finally to emerge. It is also difficult to understand why the government would want to share such a large part of the spoils of state-owned companies with minority investors when there are clearly other ways of extracting cash without this minority shareholder leakage.

Given these developments, which deterred foreign investors from investing in Russia, there was very little corporate activity in Russia over the period under review. Share price movements were also largely driven by domestic retail investors.

OUTLOOK

The fortunes of the Russian stockmarket are inextricably linked to the oil price. Although there are no certainties in this matter, having bounced off its near-term low, an oil price at least around current levels seems broadly sustainable for the time being. The government would no doubt prefer the oil price to return towards a level of USD 100 a barrel or more, but the current scenario is one that can be tolerated and accommodated with appropriate policy action.

International sanctions on Russia, imposed as a result of its involvement in Ukraine, can be expected to remain in place for some time to come but are unlikely to be extended beyond the current individuals and companies. As such Russia appears reasonably well placed to cope with the ensuing reduced access to financing for a small number of corporates. Legislative elections will be held in Russia in September 2016, though there is unlikely to be any significant impact; the next presidential election is not scheduled until 2018.

Overall, the sense is that the stockmarket is now beginning to price in an improved macroeconomic outlook over the coming years driven by both actual improvements in the economy and base effects which will inevitable make 2016 numbers look better than 2015. This should be broadly supportive for the market over the year ahead. The sub-fund incorporates the best investment ideas available in Russia and these stocks should benefit the most from the economic recovery that is beginning to take shape.

187 MANULIFE GLOBAL FUND STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Supranationals, Governments and Local Public Authorities, Debt Instruments

Australia 685,000 New South Wales Treasury Corp. 6.000% 737,450 589,173 1.24 1/May/2020 560,000 Queensland Treasury Corp. 4.000% 506,459 442,309 0.93 21/Jun/2019 70,000 Queensland Treasury Corp. 5.500% 61,438 60,689 0.13 21/Jun/2021 295,000 Queensland Treasury Corp. 6.000% 264,889 267,622 0.55 21/Jul/2022 320,000 Queensland Treasury Corp. 6.250% 261,725 274,223 0.58 21/Feb/2020

1,831,961 1,634,016 3.43 Canada 220,000 Canada Housing Trust No 1 1.700% 175,970 172,040 0.36 15/Dec/2017 140,000 Export Development Canada 3.250% 131,558 105,467 0.22 8/Aug/2017 290,000 Export Development Canada 3.500% 244,340 208,969 0.44 20/Feb/2018

551,868 486,476 1.02 Germany 80,000 Kreditanstalt fuer Wiederaufbau 3.750% 54,578 58,841 0.12 29/May/2020

54,578 58,841 0.12 Indonesia 1,635,000,000 Indonesia (Govt of) 8.250% 15/Jul/2021 127,387 128,809 0.27

127,387 128,809 0.27 Mexico 125,000 Banco Nacional 4.375% 14/Oct/2025 124,648 130,383 0.28 210,000 Mexico (Govt of) 4.600% 23/Jan/2046 217,624 219,629 0.46 22,660 Mexico (Govt of) Bonos 4.750% 14/Jun/2018 170,022 122,200 0.26 40,125 Mexico (Govt of) Bonos 6.500% 10/Jun/2021 235,472 226,452 0.48 18,885 Mexico (Govt of) Bonos 7.750% 29/May/2031 117,014 115,645 0.24 23,200 Mexico (Govt of) Bonos 8.000% 7/Dec/2023 212,325 142,184 0.30 17,915 Mexico (Govt of) Bonos 8.500% 13/Dec/2018 109,415 104,654 0.22 59,295 Mexico (Govt of) Bonos 10.000% 5/Dec/2024 465,817 408,993 0.85

1,652,337 1,470,140 3.09 New Zealand 110,000 Netherlands (Govt of) 6.000% 15/Dec/2017 87,021 82,081 0.17 450,000 New Zealand (Govt of) 5.000% 15/Mar/2019 362,984 344,729 0.72 240,000 New Zealand (Govt of) 5.000% 15/Mar/2019 205,178 183,855 0.39 850,000 New Zealand (Govt of) 6.000% 15/Dec/2017 702,117 638,099 1.35 55,000 New Zealand (Govt of) 6.000% 15/May/2021 47,016 46,237 0.10 730,000 New Zealand (Govt of) 6.000% 15/May/2021 703,928 613,690 1.28

2,108,244 1,908,691 4.01 MANULIFE GLOBAL FUND 188 STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Norway 2,085,000 Norway (Govt of) 4.250% 19/May/2017 317,426 257,136 0.54 3,323,000 Norway (Govt of) 4.500% 22/May/2019 643,980 442,771 0.94

961,406 699,907 1.48 Philippines 10,000,000 Philippine (Govt of) 4.950% 15/Jan/2021 228,419 221,792 0.47 20,000,000 Philippine (Govt of) 6.250% 14/Jan/2036 587,286 483,857 1.01

815,705 705,649 1.48 Republic of Korea (South) 24,610,000 Korea (Govt of) 0.000% 10/Sep/2016 18,016 21,313 0.04 24,610,000 Korea (Govt of) 0.000% 10/Mar/2017 17,681 21,176 0.04 24,610,000 Korea (Govt of) 0.000% 10/Sep/2017 17,333 21,040 0.04 24,610,000 Korea (Govt of) 0.000% 10/Mar/2018 16,998 20,905 0.05 24,610,000 Korea (Govt of) 0.000% 10/Sep/2018 16,650 20,770 0.05

86,678 105,204 0.22 Singapore 520,000 Singapore (Govt of) 2.375% 1/Apr/2017 446,149 390,588 0.82 435,000 Singapore (Govt of) 3.250% 1/Sep/2020 390,460 347,706 0.73

836,609 738,294 1.55 Supranational 175,000 Asian Development Bank 4.625% 6/Mar/2019 130,005 130,782 0.27 125,000 Asian Development Bank 5.000% 9/Mar/2022 116,601 105,971 0.22 260,000 Inter-American Development Bank 6.500% 276,024 218,977 0.47 20/Aug/2019 90,000 International Bank for Reconstruction & 69,188 68,605 0.14 Development 2.800% 13/Jan/2021 1,110,000 International Bank for Reconstruction & 166,624 146,472 0.31 Development 3.625% 22/Jun/2020 245,000 International Bank for Reconstruction & 211,222 182,981 0.38 Development 4.625% 26/Feb/2019 400,000 International Bank for Reconstruction & 312,412 309,026 0.65 Development 4.625% 6/Oct/2021 290,000 International Finance Corp. 3.250% 236,340 222,969 0.47 22/Jul/2019 820,000 Nordic Investment Bank 1.375% 15/Jul/2020 99,520 99,662 0.22

1,617,936 1,485,445 3.13 Sweden 920,000 Kommuninvest I Sverige AB 2.500% 117,053 119,327 0.25 1/Dec/2020 3,310,000 Sweden (Govt of) 1.500% 13/Nov/2023 414,800 436,960 0.93 1,995,000 Sweden (Govt of) 3.500% 1/Jun/2022 285,206 288,148 0.61 1,085,000 Sweden (Govt of) 5.000% 1/Dec/2020 181,863 159,228 0.33

998,922 1,003,663 2.12

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 11,643,631 10,425,135 21.92

189 MANULIFE GLOBAL FUND STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Mortgage and Asset Backed Securities

United States 74,340 Fannie Mae Connecticut Avenue Securities 74,340 75,195 0.16 FRN 25/Oct/2028

74,340 75,195 0.16

Mortgage and Asset Backed Securities Total 74,340 75,195 0.16

Bonds

Australia 135,000 National Australia Bank Limited 6.000% 151,678 102,669 0.22 15/Feb/2017 125,000 Rio Tinto Finance Limited 7.125% 121,027 157,917 0.33 15/Jul/2028 125,000 Rio Tinto Finance Limited 9.000% 163,575 150,365 0.32 1/May/2019 55,000 Westpac Banking Corp. 5.000% 21/Oct/2019 101,499 82,485 0.17 100,000 Westpac Banking Corp. 7.250% 11/Feb/2020 121,053 85,951 0.18

658,832 579,387 1.22 Canada 100,000 Bank of Montreal 1.400% 11/Sep/2017 100,149 100,480 0.21 115,000 Bank of Nova Scotia 1.250% 11/Apr/2017 115,161 115,225 0.24 105,000 Royal Bank of Canada 1.000% 27/Apr/2017 105,019 105,006 0.22 225,000 Royal Bank of Canada 1.200% 23/Jan/2017 225,664 225,386 0.47 105,000 Toronto-Dominion Bank FRN 13/Jul/2016 105,036 105,006 0.23

651,029 651,103 1.37 Germany 300,000 Kreditanstalt fuer Wiederaufbau 6.000% 344,521 255,820 0.54 20/Aug/2020 240,000 Landwirtsch. Rentenbank 6.500% 207,496 184,553 0.39 12/Apr/2017

552,017 440,373 0.93 Luxembourg 205,000 Actavis Funding SCS 3.450% 15/Mar/2022 204,709 212,707 0.45 120,000 Actavis Funding SCS 3.800% 15/Mar/2025 119,574 125,099 0.26

324,283 337,806 0.71 Mexico 1,690,000 America Movil SAB de CV 7.125% 111,360 89,382 0.19 9/Dec/2024 270,000 Cemex SAB de CV 6.125% 5/May/2025 269,946 263,204 0.55 60,000 Petroleos Mexicanos 6.000% 5/Mar/2020 59,273 64,316 0.14 26,885 Petroleos Mexicanos 7.650% 24/Nov/2021 222,897 139,554 0.29

663,476 556,456 1.17 Netherlands 50,000 E.ON International Finance BV 6.000% 97,342 76,436 0.16 30/Oct/2019

97,342 76,436 0.16

MANULIFE GLOBAL FUND 190 STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Singapore 250,000 CapitaMalls Asia Treasury Limited 3.950% 183,486 189,889 0.40 24/Aug/2017 250,000 Temasek Financial 3.265% 19/Feb/2020 184,113 196,307 0.41

367,599 386,196 0.81 United Kingdom 45,000 Astrazeneca plc 1.750% 16/Nov/2018 45,603 45,616 0.10

45,603 45,616 0.10 United States 150,000 21st Century Fox America Inc. 6.200% 193,082 188,156 0.40 15/Dec/2034 160,000 3M Company 3.000% 7/Aug/2025 159,384 173,408 0.36 280,000 Abbott Laboratories 2.950% 15/Mar/2025 268,954 285,873 0.60 140,000 Abbvie Inc. 1.800% 14/May/2018 139,318 140,983 0.30 160,000 Abbvie Inc. 3.600% 14/May/2025 159,720 168,080 0.35 215,000 Aecom 5.750% 15/Oct/2022 220,354 219,837 0.46 300,000 American International Group Inc. FRN 397,858 377,595 0.80 15/May/2058 195,000 American Tower Corp. 4.700% 15/Mar/2022 200,236 215,088 0.45 186,000 American Water Capital Corp. 3.400% 185,769 201,484 0.42 1/Mar/2025 160,000 Anheuser-Busch Inbev Finance Inc. 3.650% 167,536 171,543 0.36 1/Feb/2026 65,000 Anthem Inc. 3.500% 15/Aug/2024 64,396 67,542 0.14 400,000 Apple Inc. 3.200% 13/May/2025 398,276 426,958 0.90 225,000 Bac Capital Trust XIV FRN 29/Sep/2049 193,431 168,783 0.35 275,000 Ball Corp. 4.000% 15/Nov/2023 271,429 271,018 0.58 155,000 Bankunited Inc. 4.875% 17/Nov/2025 153,490 160,174 0.34 195,000 Cardinal Health Inc. 3.750% 15/Sep/2025 197,126 212,750 0.45 255,000 CBS Corp. 3.500% 15/Jan/2025 254,781 263,806 0.56 249,000 CCO Holdings LLC 5.750% 15/Jan/2024 249,895 257,231 0.54 105,000 Chubb INA Holdings Inc. 3.350% 3/May/2026 106,735 111,778 0.23 100,000 Citigroup Inc. FRN 29/Dec/2049 104,493 99,419 0.22 190,000 Citigroup Inc. 6.250% 29/Jun/2017 149,283 138,924 0.29 96,000 Coca-Cola Company 1.800% 1/Sep/2016 97,846 96,182 0.20 185,000 Constellation Brands Inc. 3.750% 1/May/2021 186,466 191,685 0.40 288,000 Constellation Brands Inc. 4.250% 1/May/2023 291,560 297,000 0.63 225,000 Crown Americas LLC 4.500% 15/Jan/2023 219,125 230,074 0.48 125,000 Crown Cork & Seal Company 7.375% 130,853 138,172 0.29 15/Dec/2026 315,000 CVS Health Corp. 3.875% 20/Jul/2025 311,831 348,342 0.73 280,000 DaVita Healthcare Partners Inc. 5.125% 282,267 283,367 0.60 15/Jul/2024 80,000 Discover Financial Services 5.200% 86,713 87,631 0.18 27/Apr/2022 175,000 Eli Lilly & Company 2.750% 1/Jun/2025 174,662 185,687 0.39 225,000 Express Scripts Holding Company 3.500% 230,683 233,358 0.49 15/Jun/2024 165,000 Exxon Mobil Corporation 2.709% 6/Mar/2025 165,000 172,534 0.36 150,000 Ford Motor Company 4.750% 15/Jan/2043 146,886 158,957 0.33 128,000 Ford Motor Company 6.625% 1/Oct/2028 132,088 162,565 0.34

191 MANULIFE GLOBAL FUND STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 100,000 Ford Motor Company 6.625% 1/Oct/2028 124,442 127,004 0.27 130,000 General Electric Company 4.250% 109,230 93,914 0.20 17/Jan/2018 45,000 General Electric Company 6.250% 90,505 72,722 0.15 29/Sep/2020 120,000 General Motors Financial Company Inc. 120,185 126,738 0.27 4.375% 25/Sep/2021 45,000 Goodyear Tire & Rubber Company 8.750% 48,825 53,493 0.11 15/Aug/2020 235,000 HCA Inc. 5.000% 15/Mar/2024 235,420 242,542 0.51 245,000 HCA Inc. 7.500% 15/Feb/2022 263,457 277,879 0.58 35,000 HCA Inc. 8.000% 1/Oct/2018 36,296 39,212 0.08 124,000 Home Depot Inc. 2.700% 1/Apr/2023 124,250 130,167 0.27 150,000 Host Hotels & Resorts LP 4.750% 160,401 161,739 0.34 1/Mar/2023 1 iHeartCommunications Inc 14.000% 1 0 0.00 1/Feb/2021 a 45,000 Intel Corp. 1.350% 15/Dec/2017 45,175 45,242 0.10 140,000 Intel Corp. 3.700% 29/Jul/2025 143,098 156,420 0.33 22,000 International Business Machines Corp. 22,188 22,552 0.05 1.950% 12/Feb/2019 100,000 International Business Machines Corp. 162,701 143,746 0.30 2.750% 21/Dec/2020 180,000 Kraft Foods Group 6.125% 23/Aug/2018 200,657 197,716 0.42 215,000 L Brands Inc. 5.625% 15/Oct/2023 230,398 231,751 0.49 65,000 L Brands Inc. 6.875% 1/Nov/2035 71,481 66,067 0.14 240,000 L Brands Inc. 6.950% 1/Mar/2033 252,000 239,850 0.50 140,000 Lin Television 5.875% 15/Nov/2022 141,104 141,750 0.30 20,000 Lowe's Companys Inc. 2.500% 15/Apr/2026 19,840 20,417 0.04 84,000 Macy's Retail Holdings Inc. 7.875% 86,589 84,641 0.18 15/Aug/2036 220,000 Merck & Company Inc. 2.750% 10/Feb/2025 220,200 230,450 0.48 165,000 MetLife Inc. FRN 15/Dec/2036 164,248 176,291 0.37 200,000 Microsoft Corp. 3.125% 3/Nov/2025 199,948 214,903 0.45 95,000 Molson Coors Brewing Company 3.000% 94,853 95,188 0.20 15/Jul/2026 195,000 Nisource Finance Corp. 5.650% 1/Feb/2045 208,091 249,539 0.53 112,000 Pfizer Inc. 1.500% 15/Jun/2018 111,956 113,144 0.24 115,000 Philip Morris International Inc. 3.375% 117,576 125,027 0.26 11/Aug/2025 20,000 Praxair Inc. 3.200% 30/Jan/2026 21,266 21,813 0.05 95,000 Princeton University 5.700% 1/Mar/2039 126,269 135,176 0.28 100,000 Prudential Financial Inc. 5.875% 15/Sep/2042 103,426 107,980 0.23 220,000 Pvh Corp. 4.500% 15/Dec/2022 218,755 222,520 0.47 90,000 Regions Financial Corp. 7.375% 10/Dec/2037 78,410 115,063 0.24 110,000 Scripps Networks Interactive Inc. 3.950% 109,791 116,110 0.24 15/Jun/2025 240,000 Synovus Financial Corp. 5.125% 15/Jun/2017 247,470 244,294 0.51 335,000 Tenet Healthcare Corp. 4.375% 1/Oct/2021 323,733 333,617 0.70 185,000 Tenet Healthcare Corp. 6.000% 1/Oct/2020 188,281 195,978 0.41 145,000 Time Warner Inc. 3.875% 15/Jan/2026 144,896 156,952 0.33 131,000 T-Mobile Usa Inc. 6.250% 1/Apr/2021 131,766 136,955 0.29 70,000 T-Mobile USA Inc. 6.125% 15/Jan/2022 71,225 73,464 0.15

MANULIFE GLOBAL FUND 192 STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 155,000 T-Mobile USA Inc. 6.125% 15/Jan/2022 156,940 162,670 0.34 70,000 T-Mobile USA Inc. 6.500% 15/Jan/2026 73,488 73,749 0.16 265,000 UnitedHealth Group Inc. 3.750% 15/Jul/2025 264,282 291,028 0.61 291,000 USB Capital IX FRN 29/Oct/2049 206,829 237,276 0.50 98,000 Verizon Communications Inc. 4.272% 94,500 100,803 0.21 15/Jan/2036 270,000 Wachovia Capital Trust III FRN 29/Aug/2049 244,055 268,753 0.57 225,000 Walgreens Boots Alliance Inc. 3.800% 232,893 237,969 0.50 18/Nov/2024 220,000 Walt Disney Company 1.350% 16/Aug/2016 222,409 220,178 0.46 201,000 Wellcare Health Plans Inc. 5.750% 203,894 207,784 0.43 15/Nov/2020

13,961,219 14,446,220 30.36

Bonds Total 17,321,400 17,519,593 36.83

Equities

United States 1,825 Crown Castle International Corp. 1/Nov/2016 187,283 219,055 0.46 4,407 Dominion Resources Inc. 1/Jul/2017 228,591 224,933 0.47 3,540 Exelon Corp. 1/Jun/2017 180,814 171,265 0.36 9,800 First Niagara Financial Group Inc. 282,394 257,054 0.54 7,925 Hartford Financial Services Group Inc. 214,896 249,638 0.52 15/Apr/2042 310 M&T Bank Corp. 320,203 317,750 0.67 3,755 Nextera Energy Inc. 1/Sep/2018 215,930 236,903 0.50 5,135 Regions Financial Corp. 126,079 136,745 0.29 6,090 Synovus Financial Corp. 164,067 176,549 0.37 3,425 Tyson Foods Inc. 15/Jul/2017 172,297 244,094 0.51 4,555 US Bancorp 254,503 260,744 0.55 12,331 Wells Fargo & Company 320,965 355,592 0.75 4,175 Zions Bancorporation 15/Sep/2028 104,375 124,666 0.26

2,772,397 2,974,988 6.25

Equities Total 2,772,397 2,974,988 6.25

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 31,811,768 30,994,911 65.16

193 MANULIFE GLOBAL FUND STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Supranationals, Governments and Local Public Authorities, Debt Instruments

Canada 245,000 Canada (Govt of) 1.250% 1/Mar/2018 223,662 190,980 0.40 355,000 Canada (Govt of) 1.500% 1/Feb/2017 291,608 274,968 0.58 230,000 Export Developement Canada 4.875% 182,476 172,400 0.36 24/Jan/2019 447,000 Ontario (Province of) 1.900% 8/Sep/2017 356,166 349,117 0.74

1,053,912 987,465 2.08 Philippines 2,029,000 Philippine (Govt of) 4.625% 9/Sep/2040 40,700 44,614 0.09 5,186,416 Philippine (Govt of) 5.875% 16/Dec/2020 114,455 125,260 0.26 3,200,000 Philippine (Govt of) 6.500% 28/Apr/2021 78,778 78,984 0.17 4,975,000 Philippine (Govt of) 8.000% 19/Jul/2031 146,454 159,394 0.34

380,387 408,252 0.86 Supranational 215,000 Asian Development Bank 3.250% 20/Jul/2017 148,744 153,991 0.32 245,000 International Finance Corp. 3.625% 20/May/2020 169,269 179,870 0.38

318,013 333,861 0.70 United States 80,000 Connecticut (State of) 5.090% 1/Oct/2030 91,687 95,636 0.20 165,000 Denver (City of) 3.098% 15/Dec/2024 169,524 178,129 0.37 190,000 Energy Northwest Washington Electric 188,813 201,806 0.43 Revenue 2.814% 1/Jul/2024 180,000 Florida State Board of Administration Finance 180,000 187,290 0.39 Corp. 2.638% 1/Jul/2021 95,000 Georgia (State of) 4.250% 1/Feb/2030 100,942 105,276 0.22 140,000 Georgia (State of) 4.503% 1/Nov/2025 156,341 161,583 0.34 145,000 Health & Educational Facilities Authority of 145,000 156,645 0.33 the State of Missouri 3.471% 15/Jan/2036 115,000 Kansas Development Municipal 3.491% 115,000 124,317 0.26 15/Apr/2023 135,000 Kansas Development Municipal 3.641% 135,000 144,341 0.30 15/Apr/2024 75,000 Maryland (State of) 4.400% 1/Mar/2023 85,027 88,461 0.19 100,000 Oregon (State of) 5.742% 1/Aug/2024 120,683 122,549 0.26 135,000 Permanent University Fund 3.780% 1/Jul/2045 135,000 151,363 0.32 235,000 Port of Morrow 3.097% 1/Sep/2023 235,000 253,701 0.54 20,000 Texas (State of) 2.831% 1/Oct/2025 20,000 21,259 0.04 25,000 Texas (State of) 3.011% 1/Oct/2026 25,000 26,703 0.06 55,000 Texas (State of) 3.311% 1/Oct/2028 55,000 58,102 0.12 165,000 Texas Transportation 5.028% 1/Apr/2026 192,940 203,249 0.43 90,000 Utah (State of) 4.554% 1/Jul/2024 102,319 105,599 0.21 84,412 Virginia Housing Development Authority 84,412 84,449 0.18 3.250% 25/Jun/2042 95,000 Washington (State of) 1.430% 1/Aug/2019 94,999 96,927 0.20

2,432,687 2,567,385 5.39

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 4,184,999 4,296,963 9.03

MANULIFE GLOBAL FUND 194 STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Mortgage and Asset Backed Securities

United States 90,000 American Express Credit Account Master 90,573 90,404 0.19 Trust 1.490% 15/Apr/2020 75,794 Banc of America Commercial Mortgage Inc. 76,902 75,725 0.16 5.675% 10/Jul/2046 46,496 Bear Stearns Alt-A Trust FRN 25/Aug/2035 41,614 44,233 0.09 69,323 Bear Stearns Alt-A Trust FRN 25/Sep/2034 65,781 65,396 0.14 21,239 Bear Stearns Alt-A Trust FRN 25/Sep/2034 20,870 20,869 0.04 30,284 Bear Stearns Alt-A Trust FRN 25/Jan/2035 27,159 29,402 0.06 118,060 Equifirst Mortgage Loan Trust FRN 25/Apr/2035 115,551 115,400 0.24 77,957 Fannie Mae Connecticut Avenue Securities 78,042 77,444 0.16 FRN 25/May/2024 95,055 Fannie Mae Connecticut Avenue Securities 95,055 95,475 0.20 FRN 25/Apr/2028 52,172 Fannie Mae Connecticut Avenue Securities 52,172 52,506 0.11 FRN 25/Apr/2028 68,344 Fannie Mae Interest Strip 4.000% 25/Oct/2039 84,703 9,421 0.02 43,687 Fannie Mae Interest Strip 4.000% 25/Nov/2039 48,232 6,094 0.01 103,397 Fannie Mae Interest Strip 4.000% 25/Jan/2041 107,608 14,827 0.03 85,340 Fannie Mae Interest Strip 4.500% 25/Nov/2039 129,220 13,075 0.03 155,237 Fannie Mae Interest Strip 4.500% 25/Mar/2041 151,920 25,129 0.05 76,032 Fannie Mae Interest Strip 5.000% 25/Mar/2041 48,391 13,346 0.03 120,703 Fannie Mae Interest Strip 5.000% 25/Mar/2041 87,223 21,204 0.04 1,068,221 Fannie Mae Remics 3.500% 25/May/2043 224,707 121,224 0.26 142,613 Freddie Mac Structured Agency Credit Risk 142,613 143,641 0.30 Debt Notes FRN 25/Oct/2028 250,000 Freddie Mac Structured Agency Credit Risk 250,000 249,928 0.53 Debt Notes FRN 25/Oct/2027 238,720 GSAA Home Equity Trust FRN 25/Oct/2035 228,032 225,484 0.48 87,367 GSR Mortgage Loan Trust FRN 25/May/2034 85,469 86,949 0.18 145,215 JPMorgan Chase Commercial Mortgage 153,793 147,134 0.31 Securities Corp. FRN 12/Jan/2017 167,981 JPMorgan Chase Commercial Mortgage 154,687 167,773 0.35 Securities Corp. FRN 17/Apr/2045 190,000 LB-UBS Commercial Mortgage Trust 5.413% 189,763 190,685 0.40 15/Sep/2016 155,000 Massachusetts Institute of Technology 161,922 177,246 0.37 3.959% 1/Jul/2038 59,806 Merrill Lynch Mortgage Investors Trust Series 57,862 58,078 0.12 FRN 25/Oct/2035 13,008 MI-CFC Commercial Mortgage Trust 5.414% 13,914 13,013 0.03 12/Aug/2016 146,759 Morgan Stanley Capital 5.364% 15/Feb/2017 169,702 149,369 0.31 59,053 Opteum Mortgage Acceptance Corp. FRN 53,812 55,456 0.12 25/Nov/2035 215,879 Washington Mutual FRN 25/Apr/2045 201,351 202,876 0.43 118,094 Washington Mutual FRN 25/Oct/2033 119,939 115,369 0.25

3,528,582 2,874,175 6.04

Mortgage and Asset Backed Securities Total 3,528,582 2,874,175 6.04

195 MANULIFE GLOBAL FUND STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Bonds

Canada 120,000 Bank of Nova Scotia FRN 15/Jul/2016 120,605 120,018 0.25

120,605 120,018 0.25 Ireland 200,000 Grifols Worldwide Operations Limited 5.250% 205,175 204,266 0.43 1/Apr/2022

205,175 204,266 0.43 United States 100,000 Amherst College 4.100% 1/Nov/2045 100,000 113,375 0.24 175,000 Ascension Health 3.945% 15/Nov/2046 175,000 190,692 0.40 105,000 Bank of America Merrill Lynch FRN 80,850 87,743 0.18 1/Dec/2026 160,000 Duke Energy Florida Project Finance LLC 159,992 162,296 0.34 2.858% 1/Mar/2033 90,000 Duke University 4.077% 1/Oct/2048 90,000 103,712 0.22 104,000 Emera US Finance LP 3.550% 15/Jun/2026 104,229 106,460 0.22 340,000 Fifth Third Bancorp FRN 31/Dec/2049 340,000 318,198 0.68 130,000 First Niagara Financial Group Inc. 7.250% 133,497 153,722 0.32 15/Dec/2021 191,000 General Electric Company FRN 29/Dec/2049 163,922 202,681 0.43 300,000 Kraft Heinz Foods Company 3.950% 300,618 327,956 0.69 15/Jul/2025 95,000 Lamar Media Corp. 5.000% 1/May/2023 95,220 98,087 0.21 55,000 Lowe's Companys Inc. FRN 14/Sep/2018 55,532 55,491 0.12 130,000 Massachusetts Institute of Technology 135,685 144,693 0.31 3.308% 1/Jul/2026 95,000 Montefiore Medical Center 2.895% 95,000 98,516 0.21 20/Apr/2032 125,000 Outfront Media Cap LLC 5.625% 15/Feb/2024 126,902 129,062 0.27 230,000 QVC Inc. 4.450% 15/Feb/2025 229,898 231,524 0.48 155,000 QVC Inc. 5.950% 15/Mar/2043 158,408 146,315 0.31 65,000 Sirius XM Radio Inc. P.P. 144A 5.250% 65,695 68,392 0.14 15/Aug/2022 125,000 Stanford University 3.460% 1/May/2047 118,985 136,773 0.29 50,000 Texas Children's Hospital 3.368% 1/Oct/2029 50,630 54,684 0.11 100,000 University of Texas System 3.852% 100,000 114,031 0.24 15/Aug/2046 380,000 Zebra Technologies Company 7.250% 380,000 404,195 0.85 15/Oct/2022 190,000 Zions Bancorporation FRN 29/Dec/2049 190,000 182,497 0.37

3,450,063 3,631,095 7.63

Bonds Total 3,775,843 3,955,379 8.31

MANULIFE GLOBAL FUND 196 STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Bonds – convertibles

United States 90,000 Anthem Inc. 2.750% 15/Oct/2042 128,530 164,579 0.36 60,000 Mgic Investment 2.000% 1/Apr/2020 89,425 66,257 0.14

217,955 230,836 0.50

Bonds - convertibles Total 217,955 230,836 0.50

Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2) 11,707,379 11,357,353 23.88

Other transferable securities and money market instruments (2)

Mortgage and Asset Backed Securities

United States 51,401 Adjustable Rate Mortgage Trust FRN 47,147 50,579 0.11 25/Apr/2034 115,000 Americold LLC Trust FRN 14/Jan/2029 131,172 129,628 0.27 55,000 AOA Mortgage Trust FRN 13/Dec/2029 54,733 54,788 0.12 315,000 Applebees Funding LLC 4.277% 5/Sep/2044 316,881 321,274 0.68 86,168 Bear Stearns Adjustable Rate Mortgage Trust 86,599 86,056 0.18 FRN 25/Aug/2035 40,000 Bway FRN 10/Mar/2033 36,603 37,558 0.08 26,463 Chase Mortgage Finance Trust Series FRN 26,447 26,452 0.06 25/Feb/2037 332,938 CKE Restaurants Holdings Inc. 4.474% 332,937 333,650 0.70 20/Mar/2020 110,132 Commercial Mortgage Trust FRN 10/Jul/2038 110,784 110,184 0.23 150,000 Gahr Commercial Mortgage Trust 3.495% 146,261 149,544 0.31 15/Dec/2034 205,000 GS Mortgage Securities Corp. Trust FRN 204,999 205,780 0.44 15/Feb/2033 78,282 GSR Mortgage Loan Trust FRN 25/Sep/2035 79,358 78,047 0.16 73,855 Harborview Mortgage Loan Trust FRN 68,890 67,336 0.14 20/Jun/2035 48,940 Harborview Mortgage Loan Trust FRN 45,178 43,767 0.09 20/Jun/2035 1,182,819 Harborview Mortgage Loan Trust FRN 144,773 84,551 0.18 19/May/2035 72,285 Harborview Mortgage Loan Trust FRN 64,605 71,958 0.15 19/Jun/2034 84,306 Harborview Mortgage Loan Trust FRN 83,279 83,062 0.17 19/Nov/2034 113,339 Hilton USA Trust FRN 5/Nov/2030 113,339 112,980 0.24 39,792 Home Equity Asset Trust 1.953% 37,404 38,585 0.08 25/Jun/2033 935,082 Indymac Index Mortgage Loan Trust FRN 45,993 40,583 0.09 25/Oct/2036

197 MANULIFE GLOBAL FUND STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 925,271 Indymac Index Mortgage Loan Trust FRN 48,606 72,726 0.15 25/Oct/2036 125,000 JPMorgan Chase Commercial Mortgage 124,688 125,346 0.26 Securities Corp. FRN 15/Jul/2036 175,000 JPMorgan Chase Commercial Mortgage 174,125 165,815 0.35 Securities Corp. FRN 15/Jun/2019 34,498 Merrill Lynch Mortgage Investors Trust Series 34,002 34,535 0.07 FRN 25/Dec/2034 42,888 Merrill Lynch Mortgage Investors Trust Series 41,012 42,029 0.09 FRN 25/Oct/2036 60,660 Merrill Lynch Mortgage Investors Trust Series 61,161 60,637 0.13 FRN 25/Feb/2035 33,199 Morgan Stanley Mortgage Loan Trust FRN 32,037 32,641 0.07 25/Oct/2034 64,946 Sonic Capital LLC 4.472% 20/May/2046 64,946 65,777 0.14 58,420 Structured Asset Securities Corp. FRN 57,292 57,498 0.11 25/Dec/2033

2,815,251 2,783,366 5.85

Mortgage and Asset Backed Securities Total 2,815,251 2,783,366 5.85

Bonds

Canada 29,000 Burger King 6.000% 1/Apr/2022 29,793 29,974 0.06

29,793 29,974 0.06 Singapore 250,000 Hongkong Land Treasury Services Singapore 181,326 191,272 0.40 Pte Limited 3.860% 29/Dec/2017

181,326 191,272 0.40 United States 50,000 CIT Group Inc. 5.500% 15/Feb/2019 51,929 52,271 0.11 235,000 Forest Laboratories Inc. P.P. 144A 4.875% 235,001 261,309 0.55 15/Feb/2021 215,000 Forest Laboratories Inc. P.P. 144A 5.000% 216,045 239,591 0.50 15/Dec/2021 170,000 Sealed Air Corp. P.P. 144A 4.875% 170,485 177,650 0.37 1/Dec/2022 140,000 Sealed Air Corp. P.P. 144A 6.500% 157,470 159,600 0.34 1/Dec/2020 80,000 Sirius XM Radio Inc. P.P. 144A 5.875% 80,680 82,900 0.18 1/Oct/2020 20,000 Stone + Webster 0.000% 1/Jul/2017 a 0 10 0.00 125,000 Stone Company 0.000% 15/Mar/2017 a 0 78 0.00

911,610 973,409 2.05

Bonds Total 1,122,729 1,194,655 2.51

MANULIFE GLOBAL FUND 198 STRATEGIC INCOME FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Equities

United States 2,048 Vertis Holdings Inc. a 59,918 0 0.00

59,918 0 0.00

Equities Total 59,918 0 0.00

Total Other transferable securities and money market instruments (2) 3,997,898 3,978,021 8.36

Portfolio of Investments 47,517,045 46,330,285 97.40

Other Net Assets 1,238,946 2.60

Net Assets 47,569,231 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

199 MANULIFE GLOBAL FUND STRATEGIC INCOME FUND

Investment Objective: The sub-fund seeks a high level of current income. In pursuing this goal, the sub- fund invests primarily in the following types of securities:

(i) foreign government and corporate debt securities from developed and emerging markets

(ii) U.S. government and agency securities

(iii) U.S. high yield bonds

The sub-fund may also invest in preferred stock and other types of debt securities.

Although the sub-fund may invest up to 10% of its total assets in securities rated in default by Standard & Poor’s or Moody’s rating agencies (the expression “in default” in this context refers to securities that have missed one or more scheduled payments of interest or principal or have a rating of “D” by the rating agencies), it generally intends to keep its average credit quality in the investment grade range (AAA to BBB). There is no limit on the sub-fund’s average maturity.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Strategic Income Fund Class AA +3.00% Strategic Income Fund Class I2 +3.62% Strategic Income Fund Class S Hedged +3.10% Barclays Capital U.S. Aggregate Bond Index +2.04% Portfolio Review

The sub-fund’s short duration position relative to the Index was the largest detractor, as global government rates moved lower. The sub-fund’s sector allocation was also slightly negative, as overweights to Canada, Australia and New Zealand detracted but was partially offset by gains from convertible bonds. Also adding to performance was security selection within the sub-fund portfolio manager’s investment-grade corporate holdings. Currency management was a slight detractor, as underperformance due to positions in the New Zealand dollar, Mexican peso and Thai baht were partially offset by tactical positions in the Canadian dollar.

Market Review

Elevated financial market volatility was a consistent main theme over the past year. Concerns about global growth, continued uncertainty in Greece and the Fed decision on interest rates eroded risk appetites in the second half of 2015. The Fed ultimately delivered “lift-off” by initiating the normalisation of monetary policy in December. Investors shunned risk assets in equity and fixed income markets to start 2016 based on a concern that the Fed would hike rates too aggressively, coupled with a weaker growth outlook for China and further volatility in the price of oil. However, the tone from developed central banks turned dovish as a result, which sparked a recovery in risk assets that continued until late in the period, when an unexpected Leave victory in the long-awaited “Brexit” referendum threw global markets into turmoil. High- quality bonds once again touched new all-time lows in yield as risk assets initially sold off. However, a sense of near calm (or certainly complacency) quickly took over, and risk assets across the globe recovered some of their losses in many instances.

Global bond markets were generally mixed during the past year. Lower rates across developed markets boosted returns from high-quality government bonds while riskier assets underperformed, including global high-yield and emerging-markets debt.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 200 STRATEGIC INCOME FUND

Outlook

It is the sub-fund’s portfolio manager’s view that higher volatility will likely continue throughout 2016 across all asset classes (fixed income, equities, commodities, and foreign exchange) as a result of uncertainty in global growth, diverging central bank policies around the world and targeted market events like Brexit. The sub-fund’s portfolio manager will continue to maintain a defensive posture in the portfolio and will be watching the markets, looking for a number of different market-stabilising triggers before contemplating a significant increase in risk within the portfolio. These triggers could include, but are not limited to, increased visibility in the path of rate hikes by the Fed, confirmation of a bottoming in Europe, a better understanding of economic growth in China and a stabilisation of oil prices.

The sub-fund’s portfolio manager anticipates that the US economy should continue to grow at a moderate pace in the year ahead, outperforming most of its developed-market peers. The sub-fund’s portfolio manager believes external factors, such as foreign economic growth and relative yield levels across developed markets, may keep long-term rates in the US lower for an extended time. Given the absolute level of yields, the PM expects to maintain the sub-fund’s slightly lower duration bias. The sub-fund’s portfolio manager continues to embrace credit risk in the portfolio but recognise that sector, quality and issuer selection are more important factors today than they were earlier in the credit cycle. Selectiveness will be exercised in emerging-markets exposures, in recognition of likely wider performance deviations across countries, qualities and currencies moving forward. With regard to currencies, the sub-fund’s portfolio manager believes that (1) growth differentials, (2) diverging central bank policies and (3) structural positives should continue to be supportive for the US dollar.

201 MANULIFE GLOBAL FUND TAIWAN EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Taiwan 204,817 Adlink Technology Inc. 561,101 422,217 1.46 680,000 Advanced Semiconductor Engineering Inc. 800,859 772,557 2.68 861,000 Aerospace Industrial Development Corp. 1,036,173 1,174,366 4.07 373,000 Arcadyan Technology Corp. 690,979 684,508 2.37 737,000 Chilisin Electronics Corp. 1,029,930 1,377,630 4.77 1,206,000 China Life Insurance Company Limited 937,731 930,881 3.23 357,433 Chunghwa Telecom Company Limited 1,056,883 1,290,828 4.47 1,318,576 CTBC Financial Holding Company Limited 729,217 688,736 2.39 629,000 Ctci Corp. 900,546 916,423 3.18 77,000 Ennoconn Corp. 562,454 1,026,377 3.56 319,000 Formosa Chemicals & Fibre Corp. 673,895 800,983 2.78 211,000 Formosa Petrochemical Corp. 575,842 572,319 1.98 446,348 Formosa Plastics Corp. 1,062,253 1,076,468 3.73 470,834 Hon Hai Precision Industry Company Limited 1,081,822 1,204,119 4.17 197,000 Iron Force Industrial Company Limited 1,032,213 1,331,283 4.61 12,000 Largan Precision Company Limited 977,207 1,095,505 3.80 250,000 Namchow Chemical Industrial Limited 545,421 522,333 1.81 441,000 Powertech Technology Inc. 799,182 977,445 3.39 61,000 Poya Company Limited 621,148 676,956 2.35 318,000 Sercomm Corp. 789,667 709,753 2.46 92,000 Sporton International Inc. 543,487 474,843 1.65 561,334 Taiwan Semiconductor Manufacturing 1,635,023 2,827,629 9.79 Company Limited 208,000 Tci Company Limited 834,404 928,482 3.22 511,000 TTY Biopharm Company Limited 1,541,649 1,797,896 6.23 101,000 Tung Thih Electronic Company Limited 709,591 1,609,282 5.58 463,000 Txc Corp. 653,160 641,558 2.22 43,333 Voltronic Power Technology Corp. 257,455 603,133 2.09 1,596,000 Walsin Technology Corp. 952,095 1,447,125 5.02

23,591,387 28,581,635 99.06

Equities Total 23,591,387 28,581,635 99.06

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 23,591,387 28,581,635 99.06

Portfolio of Investments 23,591,387 28,581,635 99.06

Other Net Assets 269,839 0.94

Net Assets 28,851,474 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 202 TAIWAN EQUITY FUND

Investment Objective: The sub-fund aims to provide long-term capital growth for those who hold a long-term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long-term returns.

It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and equities of companies that are listed on any stock exchange in Taiwan; or companies covering the different sectors of the economy in Taiwan and which are listed on any stock exchange; or companies that derive a significant portion of their earnings from Taiwan. The sub-fund may also invest in convertible bonds and depositary receipts issued by such companies, debt obligations of the Government of Taiwan, collective investment schemes and closed-end funds. The remaining assets of the sub-fund may include bonds, deposits and other investments.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Taiwan Equity Fund Class AA -3.09% Taiwan TAIEX Index -11.09% PORTFOLIO REVIEW

The sub-fund’s performance was primarily attributable to strong stock selection decisions at the sector level. Asset allocation decisions also contributed positively to performance.

The consumer discretionary sector performed strongly on the back of the sub-fund’s holding in an auto parts company. The company manufactures automobile electronic components such as parking sensors and Bluetooth systems, and it performed strongly on the back of a recovering Chinese auto market. Earnings results continue to be stronger than expectations and management guidance. As a results, the sell side analyst community has revised their sales and profit forecasts upwards. We continue to like the company’s growth prospects on new products and market share gains. Our exposure to the healthcare sector also contributed positively to performance as the new President and her Cabinet are prioritising the passage of new drug amendment bills.

Key notable detractors include a manufacturer of LCD backlight units; the stock traded lower on the back of a dampened outlook due to weakness in client orders. This weakness came from technological product upgrades from their key clients. The company’s ability to source new clients and move into new segments with their existing product line up is a key concern.

Stock selection in a number of sectors was a positive contributing factor; particularly in reference to consumer discretionary, materials and industrials sectors.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

203 MANULIFE GLOBAL FUND TAIWAN EQUITY FUND

MARKET REVIEW

In Taiwan, the central bank lowered the benchmark interest rate four times over the past year to spur economic growth and boost real demand as export growth remained sluggish. The National Financial Stabilization Fund and four other government funds had bought more than NT$4 billion worth of stocks to help support the equity market in February, but announced plans to pull out as market sentiment had stabilised.

OUTLOOK

In Taiwan, while poor fundamentals in the first half of 2016 are being digested by the market, the portfolio manager (PM) notes that bearish sentiment will only intensify. The market generally expects replacement demand driven by the iPhone 7, as well as peak-season demand for low and mid-end smartphones to shed light on the 2016 second half outlook. However, PM believes the market’s high expectations could potentially result in more selling pressure if the aforementioned catalysts fail to deliver. PM is getting more constructive on auto parts companies after the correction as they are likely to see increasing electronic sensors per car in future new car models. PM expects the tech sector to outperform non-tech sectors in Taiwan in the second half of 2016 due to a weak Taiwan dollar, 2015 tech underperformance, attractive valuations and dividend yields, and a change in sentiment in the non-tech sectors from the fourth quarter of 2015. PM views healthcare and industrials favourably. PM is neutral on tech, telecom and consumer while maintaining our underweight view in materials and financials.

MANULIFE GLOBAL FUND 204 Turkey Equity Fund

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Turkey 40,986 Adel Kalemcilik Ticaret Ve Sanayi AS 312,835 242,273 0.73 955,813 Akbank TAS 2,989,037 2,708,981 8.12 134,615 Akcansa Cimento AS 709,974 629,813 1.89 182,714 Arcelik AS 1,032,359 1,195,966 3.59 105,450 Aselsan Elektronik Sanayi Ve Ticaret AS 166,546 344,932 1.03 69,696 Bim Birlesik Magazalar AS 1,406,826 1,348,906 4.04 244,875 Brisa Bridgestone Sabanci Sanayi Ve Ticaret AS 816,788 601,491 1.80 92,251 Coca-Cola Icecek AS 1,900,839 1,118,758 3.35 1,640,888 Emlak Konut Gayrimenkul Yatirim Ortakligi AS 1,934,855 1,618,476 4.85 542,586 Enka Insaat ve Sanayi AS 1,060,354 838,033 2.51 359,447 Haci Omer Sabanci Holding AS 1,622,136 1,168,291 3.50 1,620,507 Is Gayrimenkul Yatirim Ortakligi AS 831,754 946,664 2.84 349,378 Koc Holding AS 1,529,068 1,576,467 4.73 196,405 Migros Ticaret AS 1,138,561 1,117,053 3.35 319,144 Tav Havalimanlari Holding AS 1,899,979 1,380,297 4.14 244,601 Tofas Turk Otomobil Fabrik 1,458,640 1,998,770 5.99 100,614 Tupras-Turkiye Petrol Rafinerileri 2,450,990 2,217,634 6.65 33,298 Turk Traktor ve Ziraat Makineleri AS 882,914 969,134 2.91 311,352 Turkcell Iletisim Hizmet AS 1,743,761 1,135,566 3.40 1,169,926 Turkiye Garanti Bankasi AS 4,465,773 3,076,516 9.23 931,724 Turkiye Is Bankasi 2,342,138 1,445,524 4.33 2,288,618 Turkiye Sinai Kalkinma Bankasi AS 1,329,891 1,051,318 3.15 1,473,717 Turkiye Vakiflar Bankasi Tao 2,800,696 2,291,509 6.87 1,101,284 Yapi Ve Kredi Bankasi AS 2,445,776 1,510,048 4.53

39,272,490 32,532,420 97.53

Equities Total 39,272,490 32,532,420 97.53

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 39,272,490 32,532,420 97.53

Portfolio of Investments 39,272,490 32,532,420 97.53

Other Net Assets 824,231 2.47

Net Assets 33,356,651 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

205 MANULIFE GLOBAL FUND Turkey Equity Fund

Investment Objective: The sub-fund aims to provide long term capital growth for those who hold a long term investment view and who are prepared to accept significant fluctuations in the value of their investments in order to achieve long term returns. It is intended that the investments will be made on a diversified basis. The underlying investment portfolio will mainly consist of equity-related investments and securities of companies located in Turkey and other companies located outside Turkey whose income is predominantly derived from Turkey, all of which in accordance with the regulations, will be listed or traded on Regulated Markets as referred to in the Prospectus. The remaining assets of the sub- fund may include bonds, deposits and other investments.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

Turkey Equity Fund Class AA -13.51% MSCI Turkey 10/40 Index -10.24% PORTFOLIO REVIEW

Despite a strong performance from the Borsa Istanbul over the first few months of 2016, the sub-fund lost value over the full 12-month period ending 30 June 2016, the stockmarket having fallen sharply over the third quarter of 2015.

Positive contributors to the relative performance of the sub-fund were led by the zero-weight exposure to state lender Halkbank. Having de-rated on the back of concerns over government interference and waning returns, the bank continues to be exposed to headline risk over past dealings with a gold trader arrested in the US for conspiring to evade US sanctions against Iran. Conversely, the largest detractor was the zero-weight exposure to petrochemical manufacturer Petkim as its shares found support from a recovery in naphtha-ethylene spreads, which are key to its profitability.

Consumer goods group Arcelik was the most significant contributor to relative performance from within the sub-fund’s portfolio. Its share price rose strongly on the back of much better than expected results, with revenues strong and EBITDA margins expanding. Is REIT, one of Turkey’s largest real estate investment trusts, was another positive. The company offers a compelling investment case of increasing dividends and growth. Building on a defensive prime commercial real estate portfolio, investments are underway to increase leasable space significantly between 2016 and 2019. More notably, about two- thirds of new space has already been rented to Isbank for 25 years and the remaining space is being developed in prime areas of Istanbul and Izmir.

Performance was held back by a preference for steel maker Kardemir over Erdemir within the materials sector due to the former’s better longer term structural story. Erdemir’s share price fared better than Kardemir’s over the period under review as a result of its attractive dividend yield and export focus. However, the structural growth story behind Kardemir should drive a significant re-rating of the stock over the longer term.

Changes to the portfolio over the 12-month period under review included the addition of the conglomerate Koc Holding. Most of the company’s underlying subsidiaries posted market-beating results with upbeat outlooks while the NAV discount for Koc widened to multi-year lows, providing a good opportunity.

The portfolio’s exposure to the energy sector moved from underweight to overweight after increasing the holding in the oil refiner Tupras. The company stands to benefit from recent capital expenditure, coupled with higher demand for oil products in a low oil price environment.

MARKET REVIEW

The Borsa Istanbul endured a volatile 12-month period ending 30 June 2016, beset by political developments, albeit against a gradually improving economic backdrop. Despite periods of strong upward momentum, share prices nevertheless closed the period with substantial losses.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 206 Turkey Equity Fund

An inconclusive general election at the end of the first half of 2015 made for months of political uncertainty and policy paralysis, which dragged on share prices. Coalition negotiations eventually failed, leading to fresh elections in November. The governing AK Party then won an unexpectedly decisive victory and regained a comfortable majority in parliament. The new cabinet announced by Prime Minister Davutoglu was a balanced one, mostly made up of well-established names alongside some new faces close to President Erdogan. The new government immediately had to deal with the fallout from Turkey’s downing of a Russian jet over its Syrian border. Russia responded with economic sanctions including a ban on food imports as well as charter flights. The impact of these sanctions, particularly on a tourist trade already depressed by an upsurge in terrorist violence, began to bite as 2016 progressed leading to an apology from President Erdogan to President Putin, as a result of which the sanctions were eventually lifted. Prime Minister Davutoglu himself failed to stay in office for the entire period under review after a fallout with President Erdogan over his independence. Binali Yildirim, a long-time Erdogan confidante, thus became the new prime minister in May and installed an administration that was more closely aligned with President Erdogan, with a clear intent to prioritise his ultimate aim of moving to a presidential system and formalising his executive powers. These developments, the consequent uncertainty aside, were generally poorly received by financial markets, with the increasingly authoritarian nature of the Erdogan presidency not necessarily seen to be in the best interests of anyone other than Erdogan himself.

All this occurred against the backdrop of a resurgence in the conflict against the Kurdish minority, which some suspect to have been engineered to support the AK Party in the November election, as well as a number of disturbing acts of terrorist violence in the main centres of Ankara and Istanbul.

Share prices were however supported by an apparent improvement in economic activity. GDP grew by 3.8% in 2015 with the current account deficit also beginning to benefit from a weaker lira, which fell sharply against the US dollar over the period. With inflation moderating, the central bank was able to cut interest rates several times with the overnight lending rate falling from 10.75% to 9.00% over the period under review. The installation of a new central bank governor in April, an issue that had been concerning the markets for months, was welcomed with the lira and share prices gaining on the announcement. The latest data shows the economy continuing to improve, with GDP growing by 4.8% over the year to the first quarter.

OUTLOOK

Turkey is now free of political uncertainty until at least the next significant elections, scheduled for 2019. A strong single party government with a renewed commitment to structural reform should foster a period of stability. Although moves to promote a formal move to an executive presidency are to be expected, these should not unsettle markets unduly.

In the meantime, growth dynamics remain well supported and Turkey should continue to feature among the better macroeconomic stories in the region. Depressed oil prices, a better earnings outlook compared to other countries in the region, driven by the banks, the potential for macroeconomic policy to foster growth and attractive valuations should all be supportive of a better outlook for share prices over the period ahead.

On the other hand, the upsurge in terrorist violence, which shows little sign of abating, and the ongoing conflict in the Kurdish regions remain clear risks that may have some impact on share prices over the course of the year ahead. Any volatility that results may well provide some interesting investment opportunities.

207 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Supranationals, Governments and Local Public Authorities, Debt Instruments

Argentina 245,000 Argentina (Govt of) 7.500% 22/Apr/2026 245,000 266,173 0.14 140,204 Argentina (Govt of) 8.280% 31/Dec/2033 114,441 156,331 0.08 275,000 Buenos Aires (Provincia de) 7.875% 275,000 281,908 0.14 15/Jun/2027

634,441 704,412 0.36 United States 1,955,000 United States Treasury N/B 0.875% 1,951,513 1,963,400 1.00 15/Apr/2019 7,965,000 United States Treasury N/B 0.875% 7,968,532 8,000,157 4.10 15/Jun/2019 6,500,000 United States Treasury N/B 1.000% 6,500,640 6,547,100 3.35 15/May/2018 4,050,000 United States Treasury N/B 1.125% 4,043,532 4,074,996 2.08 28/Feb/2021 2,700,000 United States Treasury N/B 1.375% 2,660,977 2,746,617 1.40 31/Oct/2020 3,508,000 United States Treasury N/B 1.625% 3,478,329 3,552,672 1.82 15/May/2026 6,325,000 United States Treasury N/B 2.500% 6,276,033 6,609,625 3.39 15/Feb/2046 3,695,000 United States Treasury N/B 3.375% 4,261,403 4,568,810 2.34 15/May/2044

37,140,959 38,063,377 19.48

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 37,775,400 38,767,789 19.84

Bonds

Bermuda 135,000 Aircastle Limited 5.500% 15/Feb/2022 136,725 141,235 0.07 130,000 Aircastle Limited 6.250% 1/Dec/2019 142,550 140,914 0.07 75,000 Aircastle Limited 7.625% 15/Apr/2020 75,000 84,563 0.04

354,275 366,712 0.18 Canada 260,000 Cenovus Energy Inc. 4.450% 15/Sep/2042 201,596 203,529 0.10

201,596 203,529 0.10 Cayman Islands 225,000 Mizuho Financial Group Cayman 3 Limited 224,447 245,990 0.13 4.600% 27/Mar/2024

224,447 245,990 0.13

MANULIFE GLOBAL FUND 208 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

France 150,000 AXA SA 8.600% 15/Dec/2030 173,725 203,332 0.10 235,000 Credit Agricole SA FRN 29/Sep/2049 235,000 214,070 0.11 200,000 Credit Agricole SA FRN 29/Jan/2049 205,750 192,254 0.10 115,000 Electricite de France SA FRN 29/Jan/2049 113,899 110,429 0.06 255,000 Societe Generale FRN 29/Dec/2049 255,000 244,383 0.13 200,000 Societe Generale FRN 29/Nov/2049 207,000 198,629 0.10

1,190,374 1,163,097 0.60 Germany 198,000 Deutsche Bank AG 4.500% 1/Apr/2025 183,306 183,528 0.09

183,306 183,528 0.09 Guernsey – Channel Islands 154,228 Doric Nimrod Air Finance Alpha Limited 162,325 159,337 0.08 5.125% 30/Nov/2022

162,325 159,337 0.08 Ireland 250,000 Aquarius & Investments plc for Swiss 255,000 261,629 0.13 Reinsurance Company Limited FRN 1/Sep/2024

255,000 261,629 0.13 Israel 250,000 Israel Electric Corp. 5.625% 21/Jun/2018 250,000 264,623 0.14

250,000 264,623 0.14 Japan 414,000 Sumitomo Mitsui Banking Corp. 2.450% 420,255 422,251 0.22 10/Jan/2019

420,255 422,251 0.22 Jersey – Channel Islands 220,000 Delphi Automotive plc 4.250% 15/Jan/2026 219,872 241,486 0.12

219,872 241,486 0.12 Luxembourg 50,000 Actavis Funding SCS 3.800% 15/Mar/2025 48,572 52,125 0.03 165,000 Actavis Funding SCS 3.800% 15/Mar/2025 164,414 172,012 0.09 200,000 Altice Financing SA 6.625% 15/Feb/2023 198,000 196,029 0.10 155,000 ArcelorMittal 10.350% 1/Jun/2019 158,694 182,471 0.09 200,000 Millicom International Cellular SA 6.625% 219,000 204,906 0.10 15/Oct/2021 155,000 Telecom Italia Capital SA 7.200% 18/Jul/2036 158,681 156,183 0.08

947,361 963,726 0.49 Marshall Islands 255,000 Teekay Offshore Partners LP 6.000% 185,903 205,275 0.11 30/Jul/2019

185,903 205,275 0.11 Mexico 235,000 Credito Real SAB de CV 7.500% 13/Mar/2019 237,350 242,361 0.12 200,000 Nemak SAB de CV 5.500% 28/Feb/2023 209,500 207,400 0.11 160,000 Petroleos Mexicanos 4.875% 24/Jan/2022 159,943 163,223 0.08 200,000 Sixsigma Networks Mexico SA de CV 8.250% 200,000 198,279 0.10 7/Nov/2021

806,793 811,263 0.41

209 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Netherlands 250,000 Lukoil International Finance BV 3.416% 250,000 253,879 0.13 24/Apr/2018 152,000 Rabobank P.P. 144A FRN 30/Jun/2019 184,525 183,827 0.09 575,000 Shell International Finance BV 4.375% 572,058 628,234 0.32 11/May/2045

1,006,583 1,065,940 0.54 Puerto Rico 180,000 Popular Inc. 7.000% 1/Jul/2019 173,350 179,425 0.09

173,350 179,425 0.09 United Kingdom 230,000 Barclays plc 4.375% 12/Jan/2026 228,878 232,762 0.12 315,039 British Airways 4.625% 20/Jun/2024 315,039 335,211 0.17 100,000 HBOS plc 6.750% 21/May/2018 114,203 107,490 0.05 240,000 HSBC Holdings plc FRN 29/Dec/2049 240,000 240,132 0.12 180,000 International Game Tech P.P. 144A 6.500% 180,813 180,870 0.09 15/Feb/2025 640,000 Lloyds Banking Group plc 4.650% 637,346 648,129 0.32 24/Mar/2026 195,000 Lloyds Banking Group plc FRN 30/Apr/2049 206,944 189,521 0.10 210,000 Royal Bank of Scotland Group plc 4.800% 217,020 213,959 0.11 5/Apr/2026 225,000 Santander UK Group 4.750% 15/Sep/2025 224,379 222,068 0.11

2,364,622 2,370,142 1.19 United States 385,000 Abbvie Inc. 3.600% 14/May/2025 383,265 404,442 0.21 235,000 Air Lease Corp. 3.375% 15/Jan/2019 234,666 239,829 0.12 30,000 Air Lease Corp. 3.375% 15/Jan/2019 30,750 30,617 0.02 145,000 Air Lease Corp. 3.875% 1/Apr/2021 145,459 149,984 0.08 120,000 Air Lease Corp. 4.750% 1/Mar/2020 122,100 129,025 0.07 395,000 Aliance One International Inc. 9.875% 387,100 337,809 0.17 15/Jul/2021 340,000 Allegheny Technologies Inc. 9.375% 413,944 346,598 0.18 1/Jun/2019 265,000 Ally Financial Inc. 3.250% 5/Nov/2018 264,554 264,062 0.14 510,000 Ally Financial Inc. 5.125% 30/Sep/2024 507,406 518,822 0.26 315,000 American Honda Finance Corp. 1.700% 314,937 319,895 0.16 22/Feb/2019 245,000 American Tower Corp. 3.400% 15/Feb/2019 248,639 255,127 0.13 190,000 American Tower Corp. 4.700% 15/Mar/2022 189,857 209,573 0.11 690,000 Anheuser-Busch Inbev Finance Inc. 4.900% 690,732 814,904 0.42 1/Feb/2046 360,000 Assured Guaranty US Holdings Inc. 5.000% 368,505 391,660 0.20 1/Jul/2024 185,000 AT&T Inc. 4.750% 15/May/2046 180,448 190,743 0.10 105,000 Autonation Inc. 4.500% 1/Oct/2025 104,646 111,407 0.06 341,000 Bac Capital Trust XIV FRN 29/Sep/2049 266,863 255,799 0.13 70,000 Bank of America Corp. 3.950% 21/Apr/2025 69,794 71,337 0.04 145,000 Bank of America Corp. 4.200% 26/Aug/2024 144,894 150,272 0.08

MANULIFE GLOBAL FUND 210 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 70,000 Bank of America Corp. 4.200% 26/Aug/2024 70,430 72,545 0.04 230,000 Bank of America Corp. 4.250% 22/Oct/2026 229,399 238,355 0.12 390,000 Bank of America Corp. 4.450% 3/Mar/2026 390,894 410,773 0.21 245,000 Bank of America Corp. FRN 29/Sep/2049 245,000 248,688 0.13 80,000 Bank of America Corp. FRN 29/Sep/2049 81,263 81,204 0.04 150,000 Bank of America Corp. FRN 29/Dec/2049 150,000 158,906 0.08 330,000 Bank of America Corp. 6.875% 25/Apr/2018 352,351 360,274 0.18 50,000 Bank of America Corp. 6.875% 25/Apr/2018 60,763 54,587 0.03 365,000 Bank of America Corp. FRN 29/Jul/2049 393,825 362,372 0.19 280,000 Bankunited Inc. 4.875% 17/Nov/2025 277,273 289,346 0.15 195,000 Bear Stearns Companies Inc. 7.250% 202,452 212,466 0.11 1/Feb/2018 5,000 Beaver Valley II Funding 9.000% 1/Jun/2017 5,172 5,043 0.00 195,000 Bunge Limited Finance Corp. 8.500% 224,026 228,929 0.12 15/Jun/2019 250,000 Capital One 2.350% 17/Aug/2018 251,180 253,363 0.13 305,000 Capital One Financial 4.200% 29/Oct/2025 306,317 313,894 0.16 255,000 Capital One Financial FRN 29/Dec/2049 255,658 252,657 0.13 180,000 Capital One Financial Corp. 2.450% 180,312 183,296 0.09 24/Apr/2019 225,000 CC Holdings GS V 3.849% 15/Apr/2023 222,092 239,880 0.12 340,000 Celgene Corp. 5.000% 15/Aug/2045 340,332 378,636 0.19 225,000 Chemours Company 6.625% 15/May/2023 181,005 190,125 0.10 165,000 Cimarex Energy Company 4.375% 1/Jun/2024 166,447 172,986 0.09 295,000 Citigroup Inc. 4.500% 14/Jan/2022 313,827 325,869 0.17 300,000 Citigroup Inc. 4.600% 9/Mar/2026 300,165 317,351 0.16 365,000 Citigroup Inc. FRN 29/Dec/2049 365,169 375,154 0.19 165,000 Clear Channel Worldwide Holdings Inc. 172,046 165,139 0.08 6.500% 15/Nov/2022 100,000 CNA Finance Corp. 7.250% 15/Nov/2023 112,307 121,367 0.06 310,000 CNO Financial Group Inc. 5.250% 30/May/2025 317,009 317,363 0.16 375,000 Columbia Pipeline Group Inc. 4.500% 375,365 403,854 0.21 1/Jun/2025 141,000 Commercial Metals Company 7.350% 145,884 150,644 0.08 15/Aug/2018 195,000 Constellation Brands Inc. 4.250% 1/May/2023 194,248 201,094 0.10 105,000 Constellation Brands Inc. 4.750% 15/Nov/2024 105,725 109,619 0.06 380,000 Continental Resources Inc. 5.000% 389,868 369,466 0.19 15/Sep/2022 270,000 Credit Acceptance Corp. 6.125% 15/Feb/2021 269,550 260,141 0.13 225,000 Crown Castle International Corp. 4.450% 224,260 244,664 0.13 15/Feb/2026 350,000 CVS Health Corp 5.125% 20/Jul/2045 358,121 436,378 0.22 175,000 CVS Health Corp. 2.875% 1/Jun/2026 173,493 179,026 0.09 255,000 Dana Holding Corp. 6.000% 15/Sep/2023 255,725 259,086 0.13 200,000 DCP Midstream LLC 3.875% 15/Mar/2023 191,273 183,500 0.09 210,000 Dcp Midstream Operating LP 2.700% 197,400 201,583 0.10 1/Apr/2019 529,000 Delphi Corp. 5.000% 15/Feb/2023 564,015 561,236 0.29 310,000 Discover Bank 2.600% 13/Nov/2018 309,808 313,949 0.16

211 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 265,000 Discover Financial Services 5.200% 286,192 290,277 0.15 27/Apr/2022 290,000 Discover Financial Svs 3.950% 6/Nov/2024 293,604 299,474 0.15 180,000 Ebay Inc. 2.500% 9/Mar/2018 180,090 183,372 0.09 205,000 Ebay Inc. 3.800% 9/Mar/2022 204,532 216,735 0.11 495,000 Electronic Arts Inc. 4.800% 1/Mar/2026 495,560 535,619 0.27 165,000 Enbridge Energy Partners LP 4.375% 166,075 168,960 0.09 15/Oct/2020 220,000 Energy Transfer Partners LP 5.150% 214,714 203,867 0.10 15/Mar/2045 190,000 Energy Transfer Partners LP 9.700% 219,629 216,611 0.11 15/Mar/2019 245,000 Enova International Inc. 9.750% 1/Jun/2021 234,436 194,163 0.10 410,000 Express Scripts Holding Company FRN 408,333 451,640 0.23 25/Feb/2026 175,000 Ford Motor Company 4.750% 15/Jan/2043 179,358 185,450 0.09 200,000 Ford Motor Credit Company LLC 2.551% 200,000 203,547 0.10 5/Oct/2018 573,000 Ford Motor Credit Company LLC 5.875% 648,939 659,091 0.35 2/Aug/2021 100,000 Fresenius US Finance P.P. 144A 4.500% 100,000 102,969 0.05 15/Jan/2023 265,000 FS Investment Corp. 4.000% 15/Jul/2019 264,492 267,103 0.14 430,000 General Motors Company 4.875% 2/Oct/2023 438,300 458,505 0.24 300,000 General Motors Company 6.250% 2/Oct/2043 331,269 334,833 0.17 275,000 General Motors Financial Company Inc. 273,781 274,733 0.14 3.450% 10/Apr/2022 355,000 General Motors Financial Company Inc. 351,194 358,783 0.18 4.000% 15/Jan/2025 190,000 General Motors Financial Company Inc. 207,866 206,362 0.11 5.250% 1/Mar/2026 192,000 Goldman Sachs Capital II FRN 1/Dec/2049 142,010 143,534 0.07 175,000 Goldman Sachs Group Inc. 2.000% 174,514 176,570 0.09 25/Apr/2019 240,000 Goldman Sachs Group Inc. 3.750% 239,620 252,067 0.13 22/May/2025 170,000 Goldman Sachs Group Inc. 4.750% 177,637 188,972 0.10 21/Oct/2045 330,000 Hartford Financial Services Group Inc. 371,692 358,170 0.18 FRN 15/Jun/2038 195,000 HCA Inc. 5.250% 15/Apr/2025 195,000 203,771 0.10 55,000 HCA Inc. 5.250% 15/Apr/2025 57,081 57,474 0.03 175,000 HCA Inc. 5.250% 15/Jun/2026 178,713 181,893 0.09 205,000 HCA Inc. 7.500% 15/Feb/2022 210,675 232,511 0.12 170,000 Highwoods Realty Limited 5.850% 191,865 174,968 0.09 15/Mar/2017

MANULIFE GLOBAL FUND 212 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 265,000 Iron Mountain Inc. 5.750% 15/Aug/2024 264,081 263,406 0.13 310,000 Iron Mountain Inc. 6.000% 15/Aug/2023 313,838 327,326 0.17 45,000 Jefferies Group Inc. 6.875% 15/Apr/2021 50,969 51,022 0.03 290,000 Jefferies Group Inc. 6.875% 15/Apr/2021 304,894 328,811 0.17 195,000 Jefferies Group Inc. 8.500% 15/Jul/2019 241,315 223,608 0.11 285,000 JPMorgan Chase & Company 3.200% 284,877 293,323 0.15 15/Jun/2026 65,000 JPMorgan Chase & Company 4.625% 71,193 72,303 0.04 10/May/2021 460,000 JPMorgan Chase & Company 4.625% 515,054 511,681 0.26 10/May/2021 320,000 JPMorgan Chase & Company FRN 29/Dec/2049 320,400 319,640 0.16 540,000 JPMorgan Chase & Company FRN 29/Jan/2049 573,493 596,116 0.31 180,000 Kerr-Mcgee Corp. 6.950% 1/Jul/2024 201,274 208,661 0.11 138,000 Kinder Morgan Energy Partners LP 7.750% 138,869 156,288 0.08 15/Mar/2032 310,000 Kinder Morgan Inc. 5.550% 1/Jun/2045 294,185 315,472 0.16 175,000 L Brands Inc. 6.875% 1/Nov/2035 187,650 177,874 0.09 180,000 Lam Research Corp. 3.900% 15/Jun/2026 181,459 189,897 0.10 355,000 Leucadia National Corp. 5.500% 18/Oct/2023 350,176 360,153 0.18 315,000 LTD Brands Inc. 6.625% 1/Apr/2021 340,081 355,890 0.19 223,000 Macy’s Retail Holdings Inc. 7.875% 237,920 224,700 0.11 15/Aug/2036 175,000 Masco Corp. 4.375% 1/Apr/2026 176,181 180,573 0.09 170,000 Masco Corp. 4.450% 1/Apr/2025 170,923 176,650 0.09 15,000 Medtronic Inc. 4.625% 15/Mar/2045 15,824 17,664 0.01 215,000 Medtronic Inc. 4.625% 15/Mar/2045 214,424 253,186 0.13 220,000 MetLife Inc. FRN 15/Dec/2036 241,488 235,055 0.12 370,000 Microsoft Corp. 4.450% 3/Nov/2045 416,793 421,338 0.22 115,000 Molson Coors Brewing Company 1.450% 114,943 115,239 0.06 15/Jul/2019 280,000 Molson Coors Brewing Company 3.000% 279,566 280,553 0.14 15/Jul/2026 180,000 Morgan Stanley 2.450% 1/Feb/2019 180,142 183,516 0.09 260,000 Morgan Stanley 3.875% 27/Jan/2026 271,453 276,777 0.14 255,000 Morgan Stanley 5.500% 26/Jan/2020 297,070 284,060 0.15 60,000 Morgan Stanley 5.500% 26/Jan/2020 66,211 66,838 0.03 175,000 Morgan Stanley FRN 29/Dec/2049 176,969 173,286 0.09 515,000 Morgan Stanley 7.300% 13/May/2019 594,775 591,602 0.30 30,000 Morgan Stanley 7.300% 13/May/2019 34,441 34,462 0.02 80,000 Mplx LP 4.000% 15/Feb/2025 79,845 74,400 0.04 170,000 MPT Operating Partnership LP 6.375% 171,250 177,441 0.09 15/Feb/2022 125,000 MPT Operating Partnership LP 6.875% 126,019 129,766 0.07 1/May/2021 205,000 Nationstar Mortgage LLC 6.500% 1/Jul/2021 199,919 177,635 0.09 210,000 Nationstar Mortgage LLC 7.875% 1/Oct/2020 215,450 196,875 0.10

213 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 175,000 Nationstar Mortgage LLC 9.625% 1/May/2019 178,925 181,807 0.09 210,000 Newell Brands Inc. 4.200% 1/Apr/2026 209,576 227,936 0.12 105,000 Newell Rubbermaid 2.150% 15/Oct/2018 104,997 106,492 0.05 180,000 Nextera Energy Capital Holdings Inc. 2.300% 180,068 183,462 0.09 1/Apr/2019 390,000 NRG Energy Inc. 6.250% 1/May/2024 349,633 369,525 0.19 525,000 NRG Yield Operating LLC 5.375% 15/Aug/2024 461,587 524,999 0.26 215,000 Occidental Petroleum Corp. 3.400% 214,642 227,333 0.12 15/Apr/2026 185,000 Omega Healthcare Investors Inc. 4.500% 183,295 187,428 0.10 15/Jan/2025 195,000 Omega Healthcare Investors Inc. 4.950% 192,837 204,750 0.10 1/Apr/2024 110,000 Omega Healthcare Investors Inc. 5.250% 109,689 116,631 0.06 15/Jan/2026 210,000 Omnicom Group Inc. 3.600% 15/Apr/2026 210,339 220,665 0.12 240,000 Owens Corning 4.200% 15/Dec/2022 241,175 255,767 0.13 330,000 Pepsico Inc. 1.500% 22/Feb/2019 330,075 333,958 0.17 170,000 Prudential Financial Inc. FRN 15/Mar/2044 169,663 167,869 0.09 202,000 Prudential Financial Inc. 5.875% 15/Sep/2042 210,705 218,120 0.11 130,000 Radian Group Inc. 5.250% 15/Jun/2020 118,674 132,468 0.07 170,000 Radian Group Inc. 7.000% 15/Mar/2021 176,889 182,325 0.09 50,000 Regency Energy Partners LP 5.000% 49,579 51,202 0.03 1/Oct/2022 325,000 Regency Energy Partners LP 5.500% 316,852 327,779 0.17 15/Apr/2023 45,000 Regency Energy Partners LP 5.875% 44,290 48,072 0.02 1/Mar/2022 165,000 S&P Global Inc. 4.000% 15/Jun/2025 164,248 180,615 0.09 415,000 Santander Holdings USA Inc. 2.700% 414,917 416,629 0.21 24/May/2019 200,000 Scripps Networks 3.950% 15/Jun/2025 199,620 211,109 0.11 135,000 Scripps Networks Interactive Inc. 3.950% 133,935 142,499 0.07 15/Jun/2025 295,000 Select Medical Corp. 6.375% 1/Jun/2021 272,537 281,945 0.15 205,000 Service Corp. International 5.375% 215,828 211,908 0.11 15/May/2024 53,000 Sovereign Capital Trust VI 7.908% 56,989 54,628 0.02 13/Jun/2036 215,000 Stifel Financial Corp. 4.250% 18/Jul/2024 213,787 218,792 0.12

MANULIFE GLOBAL FUND 214 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 85,000 Summit Midstream Holdings LLC 7.500% 84,679 80,750 0.04 1/Jul/2021 215,000 Sunocologistics Partner 4.400% 1/Apr/2021 214,796 226,226 0.12 230,000 Supervalu Inc. 7.750% 15/Nov/2022 225,171 194,401 0.10 160,000 Synovus Financial Corp. 7.875% 15/Feb/2019 167,955 177,269 0.09 275,000 Tesoro Logistics LP 6.125% 15/Oct/2021 262,300 286,597 0.15 175,000 Tesoro Logistics LP 6.375% 1/May/2024 179,050 182,881 0.09 195,000 Time Warner Cable Inc. 8.250% 1/Apr/2019 253,050 226,433 0.11 60,000 Time Warner Cable Inc. 8.250% 1/Apr/2019 69,497 69,671 0.04 170,000 Time Warner Inc. 3.600% 15/Jul/2025 168,711 180,766 0.09 435,000 Time Warner Inc. 3.875% 15/Jan/2026 434,787 470,855 0.24 176,000 Time Warner Inc. 6.500% 15/Nov/2036 201,562 224,873 0.12 170,000 T-Mobile Usa Inc. 6.250% 1/Apr/2021 173,563 177,727 0.09 170,000 T-Mobile USA Inc. 6.125% 15/Jan/2022 176,875 178,412 0.09 350,000 Trinity Industries Inc. 4.550% 1/Oct/2024 341,181 330,085 0.17 270,000 Tutor Perini Corp. 7.625% 1/Nov/2018 276,201 273,414 0.14 55,000 Under Armour Inc. 3.250% 15/Jun/2026 54,767 55,595 0.03 40,000 United Rentals North 5.500% 15/Jul/2025 39,956 39,524 0.02 140,000 United Rentals North America Inc. 5.500% 140,000 138,334 0.07 15/Jul/2025 180,000 United Rentals North America Inc. 5.750% 180,450 181,193 0.09 15/Nov/2024 170,000 Vector Group Limited 7.750% 15/Feb/2021 175,244 177,863 0.09 395,000 Ventas Realty 3.500% 1/Feb/2025 383,694 405,396 0.21 180,000 Ventas Realty LP 3.750% 1/May/2024 181,629 188,545 0.10 315,000 Vereit Operating Partnership LP 4.600% 313,592 319,533 0.15 6/Feb/2024 170,000 Verisign Inc. 5.250% 1/Apr/2025 170,625 174,356 0.09 445,000 Verisk Analytics Inc. 4.000% 15/Jun/2025 456,397 465,848 0.24 180,000 Verizon Communications Inc. 4.400% 186,118 187,677 0.10 1/Nov/2034 175,000 Verizon Communications Inc. 5.012% 148,840 186,225 0.10 21/Aug/2054 190,000 Verizon Companymunications Inc. 4.672% 191,383 192,503 0.10 15/Mar/2055 575,000 Verizon Companymunications Inc. 4.862% 547,696 634,151 0.33 21/Aug/2046 345,000 Visa Inc. 3.150% 14/Dec/2025 343,737 368,798 0.19 365,000 Visa Inc. 4.300% 14/Dec/2045 364,389 425,604 0.21 275,000 Walgreens Boots Alliance Inc. 1.750% 275,342 277,045 0.14 30/May/2018 175,000 Wellcare Health Plans Inc. 5.750% 15/Nov/2020 180,030 180,906 0.09 175,000 Wells Fargo & Company 4.650% 4/Nov/2044 175,033 184,897 0.09 1,006,000 Wells Fargo & Company FRN 29/Dec/2049 1,060,134 1,059,874 0.55

215 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 105,000 Welltower Inc. 3.750% 15/Mar/2023 103,863 109,574 0.06 160,000 Williams Partners LP 4.875% 15/May/2023 158,748 154,603 0.08 401,000 Williams Partners LP 4.875% 15/Mar/2024 404,018 384,692 0.20 340,000 Zimmer Biomet Holdings 3.550% 1/Apr/2025 337,202 350,090 0.18

47,070,209 48,311,723 24.73

Bonds Total 56,016,271 57,419,676 29.35

Bonds – convertibles United States 108 Wells Fargo & Company 7.500% 31/Dec/2049 139,995 138,240 0.08

139,995 138,240 0.08

Bonds – convertibles Total 139,995 138,240 0.08

Equities

United States 5,500 Discover Financial Services 137,500 145,420 0.08 4,862 Dominion Resources Inc. 1/Jul/2017 250,072 248,157 0.12 2,224 Exelon Corp. 1/Jun/2017 111,200 107,597 0.06 4,500 FNB Corp. 112,500 138,589 0.07 14,519 GMAC Capital Trust I 15/Feb/2040 391,245 361,087 0.19 6,375 Goldman Sachs Group Inc. 159,375 167,789 0.08 4,212 Regions Financial Corp. 105,300 112,166 0.06

1,267,192 1,280,805 0.66

Equities Total 1,267,192 1,280,805 0.66

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 95,198,858 97,606,510 49.93

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Supranationals, Governments and Local Public Authorities, Debt Instruments

United States 410,000 State of Hawaii Department of Business 409,897 417,237 0.21 Economic Development & Tourism 1.467% 1/Jul/2022

MANULIFE GLOBAL FUND 216 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 1,905,000 United States Treasury Inflation Indexed 1,847,256 1,978,546 1.01 Bonds 0.377% 15/Jul/2025

2,257,153 2,395,783 1.22

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 2,257,153 2,395,783 1.22

Mortgage and Asset Backed Securities

United States 325,000 Ally Auto Receivables Trust 1.750% 325,026 328,829 0.17 15/May/2020 455,000 Ally Auto Receivables Trust 1.840% 455,660 461,358 0.24 15/Jan/2020 415,000 Ally Master Owner Trust 1.630% 15/May/2020 414,923 416,335 0.21 265,000 Ally Master Owner Trust 1.720% 15/Jul/2019 266,838 266,554 0.14 130,000 American Airlines 4.100% 15/Jan/2028 130,000 138,369 0.07 520,000 American Express Credit Account Master 520,614 523,668 0.27 Trust 1.430% 15/Jun/2020 700,000 Ba Credit Card Trust FRN 15/Sep/2020 699,768 704,934 0.36 283,807 Bear Stearns Alt-A Trust FRN 25/Aug/2035 249,750 269,991 0.14 575,000 Cabela’s Credit Card Master Note Trust FRN 574,911 578,469 0.30 15/Jun/2022 375,000 California Republic Auto Receivables Trust 374,249 377,072 0.19 1.750% 15/Jan/2021 175,000 California Republic Auto Receivables Trust 174,967 176,267 0.09 1.830% 15/Dec/2021 335,000 California Republic Auto Receivables Trust 335,626 333,865 0.17 1.840% 15/Jun/2020 790,000 Capital One Multi-asset Execution Trust 791,572 792,891 0.41 1.480% 15/Jul/2020 445,000 Capital One Multi-Asset Execution Trust 445,005 450,636 0.23 1.600% 17/May/2021 235,000 Carmax Auto Owner Trust 1.680% 15/Sep/2021 234,922 236,721 0.12 160,000 Carmax Auto Owner Trust 1.800% 15/Mar/2021 159,958 161,731 0.08 195,000 Carmax Auto Owner Trust 2.340% 15/Jun/2021 194,989 197,480 0.10 397,202 CarMax Auto Owner Trust 1.160% 17/Jun/2019 397,059 398,230 0.20 760,000 Chait 1.360% 15/Apr/2020 760,210 765,759 0.39 505,000 Chase Issuance Trust 1.370% 15/Jun/2021 504,999 508,136 0.26 535,000 Chase Issuance Trust 1.380% 15/Nov/2019 535,052 537,835 0.28 545,000 Chase Issuance Trust 1.590% 18/Feb/2020 545,614 551,025 0.28 500,000 Citibank Credit Card Issuance Trust 1.730% 499,930 506,521 0.26 9/Apr/2020 240,000 Citibank Credit Card Issuance Trust 5.650% 270,898 253,159 0.13 20/Sep/2019 190,000 CNH Equipment Trust 1.630% 15/Aug/2021 189,952 191,849 0.10 540,000 CNH Equipment Trust 1.660% 16/Nov/2020 539,943 544,409 0.28

217 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 20,812,567 Commercial Mortgage Pass Through 639,323 598,049 0.30 Certificate FRN 10/Jun/2046 2,964,648 Commercial Mortgage Pass Through 237,820 156,813 0.08 Certificate FRN 10/Feb/2047 160,000 Commercial Mortgage Pass Through 165,724 175,377 0.09 Certificate FRN 10/Oct/2048 150,000 Commercial Mortgage Pass Through 155,889 167,875 0.09 Certificate 4.934% 10/Feb/2022 290,000 Commercial Mortgage Pass Through 296,457 298,603 0.15 Certificate FRN 10/Apr/2024 470,000 Commercial Mortgage Pass Through 496,140 539,754 0.28 Certificate FRN 10/Sep/2023 980,000 Discover Card Execution Note Trust 1.640% 980,883 994,642 0.50 15/Jul/2021 552,750 Fannie Mae Pool 3.000% 1/Jul/2027 584,058 580,526 0.30 1,489,641 Fannie Mae Pool 3.000% 1/Oct/2042 1,498,253 1,546,391 0.79 294,493 Fannie Mae Pool 3.000% 1/Dec/2042 306,917 305,647 0.16 128,530 Fannie Mae Pool 3.000% 1/Mar/2043 129,393 133,831 0.07 180,978 Fannie Mae Pool 3.000% 1/May/2043 182,194 188,440 0.10 71,979 Fannie Mae Pool 3.500% 1/Feb/2026 76,500 76,434 0.04 467,775 Fannie Mae Pool 3.500% 1/Mar/2026 496,572 496,646 0.25 1,530,831 Fannie Mae Pool 3.500% 1/May/2042 1,606,416 1,628,935 0.83 1,068,238 Fannie Mae Pool 3.500% 1/Nov/2042 1,110,800 1,134,257 0.58 553,305 Fannie Mae Pool 3.500% 1/Apr/2043 589,443 588,349 0.30 1,122,030 Fannie Mae Pool 3.500% 1/Jul/2043 1,168,664 1,199,950 0.61 2,713,636 Fannie Mae Pool 3.500% 1/Apr/2045 2,862,463 2,881,196 1.47 89,540 Fannie Mae Pool 4.000% 1/Dec/2024 96,339 94,847 0.05 448,871 Fannie Mae Pool 4.000% 1/Sep/2040 482,694 483,651 0.25 2,502,346 Fannie Mae Pool 4.000% 1/Apr/2041 2,687,089 2,709,101 1.39 778,105 Fannie Mae Pool 4.000% 1/Sep/2041 835,916 837,084 0.43 819,270 Fannie Mae Pool 4.000% 1/Oct/2041 872,219 885,655 0.45 351,925 Fannie Mae Pool 4.000% 1/Jan/2042 368,971 382,844 0.20 375,133 Fannie Mae Pool 4.000% 1/Mar/2042 401,568 403,568 0.21 2,380,469 Fannie Mae Pool 4.000% 1/Nov/2043 2,529,063 2,591,404 1.33 633,350 Fannie Mae Pool 4.500% 1/Apr/2040 688,669 693,784 0.35 861,714 Fannie Mae Pool 4.500% 1/Sep/2040 923,515 944,224 0.48 1,462,777 Fannie Mae Pool 4.500% 1/May/2041 1,593,742 1,606,908 0.82 1,184,126 Fannie Mae Pool 4.500% 1/Jun/2041 1,263,938 1,305,277 0.67 179,932 Fannie Mae Pool 4.500% 1/Nov/2041 194,101 196,781 0.10 1,260,691 Fannie Mae Pool 4.500% 1/May/2042 1,377,010 1,391,357 0.71 1,374,144 Fannie Mae Pool 4.500% 1/Jul/2044 1,496,959 1,508,741 0.77 1,099,590 Fannie Mae Pool 5.000% 1/Apr/2035 1,202,569 1,227,278 0.63 310,746 Fannie Mae Pool 5.000% 1/Dec/2040 328,566 350,252 0.18 996,773 Fannie Mae Pool 5.500% 1/Feb/2035 1,089,996 1,131,006 0.58 70,134 Fannie Mae Pool 5.500% 1/Aug/2040 76,479 79,255 0.04 118,642 Fannie Mae Pool 6.000% 1/Aug/2035 130,228 136,729 0.07 613,666 Fannie Mae Pool 6.000% 1/Feb/2037 677,718 704,505 0.36 186,387 Fannie Mae Pool 6.500% 1/Jan/2039 207,412 214,888 0.11

MANULIFE GLOBAL FUND 218 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 38,033 Fannie Mae Pool 6.500% 1/Jun/2039 42,330 43,957 0.02 130,000 Ford Credit Auto Owner Trust 1.520% 129,979 130,941 0.07 15/Aug/2021 205,000 Ford Credit Auto Owner Trust 1.580% 204,968 206,534 0.11 15/Aug/2020 210,000 Ford Credit Auto Owner Trust – A 1.640% 210,042 212,186 0.11 15/Jun/2020 500,000 Ford Credit Floorplan Master Owner Trust A 499,857 500,846 0.26 1.400% 15/Aug/2019 450,000 Ford Credit Floorplan Master Owner Trust A 449,863 451,628 0.23 1.420% 15/Jan/2020 370,000 Ford Credit Floorplan Master Owner Trust A 370,463 371,959 0.19 1.490% 15/Sep/2019 11,961,415 Freddie Mac FRN 25/Jan/2022 400,918 366,952 0.19 5,565,574 Freddie Mac FRN 25/Jul/2022 507,581 350,462 0.18 1,429,850 Freddie Mac FRN 25/Dec/2021 156,966 86,425 0.04 1,702,048 Freddie Mac FRN 25/Jan/2022 187,072 105,829 0.05 414,302 Freddie Mac FRN 25/Jun/2022 48,499 29,770 0.02 1,586,428 Freddie Mac FRN 25/Mar/2019 140,385 55,825 0.03 4,397,881 Freddie Mac FRN 25/Jul/2019 433,550 189,798 0.10 1,893,179 Freddie Mac FRN 25/May/2019 171,065 79,934 0.04 457,342 Freddie Mac Gold Pool 3.000% 1/Mar/2043 459,700 475,812 0.24 86,082 Freddie Mac Gold Pool 3.500% 1/Feb/2026 91,462 91,678 0.05 897,715 Freddie Mac Gold Pool 3.500% 1/Apr/2044 933,342 957,485 0.49 307,116 Freddie Mac Gold Pool 4.000% 1/Jul/2040 314,746 333,344 0.17 829,153 Freddie Mac Gold Pool 4.000% 1/Nov/2043 871,910 898,706 0.46 416,068 Freddie Mac Gold Pool 5.000% 1/Mar/2041 442,007 459,504 0.24 420,000 Freddie Mac Structured Agency Credit Risk 420,000 426,699 0.22 Debt Notes FRN 25/Sep/2028 827,454 Ginnie Mae FRN 16/Jan/2053 98,759 55,266 0.03 110,000 GM Financial Automobile Leasing Trust 109,985 110,337 0.06 1.730% 20/Jun/2019 357,000 GM Financial Automobile Leasing Trust 356,900 359,613 0.18 1.850% 22/Jul/2019 4,960,328 GS Mortgage Securities Trust FRN 10/May/2045 405,278 408,657 0.21 580,000 Honda Auto Receivables Owner Trust 1.310% 579,804 583,812 0.30 15/Oct/2020 290,000 Honda Auto Receivables Owner Trust 1.470% 289,970 292,584 0.15 23/Aug/2021 404,000 Honda Auto Receivables Owner Trust 1.560% 404,325 408,711 0.21 18/Oct/2021 340,000 Honda Auto Receivables Owner Trust 1.620% 339,995 343,035 0.18 15/Aug/2022 340,000 Hyundai Auto Receivables Trust – A 1.370% 339,310 341,493 0.17 15/Jul/2020 200,000 Impac Secured Assets Cmn Owner Trust 185,625 177,788 0.09 FRN 25/Feb/2035 335,000 John Deere Owner Trust 1.500% 15/Jun/2021 334,933 335,050 0.17 161,000 John Deere Owner Trust 1.650% 15/Dec/2021 160,950 161,810 0.08 335,000 JPMBB Commercial Mortgage Securities 339,657 342,003 0.17 Trust FRN 15/Apr/2024

219 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 168,448 Merrill Lynch Mortgage Investors Trust Series 153,615 154,276 0.08 FRN 25/Sep/2035 191,000 MSBAM FRN 15/Jan/2023 190,449 191,429 0.10 610,000 Nissan Auto Receivables Owner Trust 1.500% 609,866 615,273 0.31 15/Sep/2021 180,000 Nissan Auto Receivables Owner Trust 1.540% 180,000 181,378 0.09 17/Oct/2022 470,000 Nissan Master Owner Trust Receivables 469,579 472,339 0.24 1.440% 15/Jan/2020 205,229 Opteum Mortgage Acceptance Corp Asset 200,939 199,380 0.10 Backed Pass-Through Certificates Series 20 FRN 25/Jul/2035 210,000 Soundview Home Loan Trust FRN 25/Nov/2035 191,100 201,298 0.10 150,000 Structured Asset Securities Corp Trust FRN 142,125 144,189 0.07 25/Sep/2035 270,000 Synchrony Credit Card Master Note Trust 269,943 275,045 0.14 2.040% 15/Mar/2022 220,000 Toyota Auto Receivables Owner Trust 1.440% 219,948 221,809 0.11 15/Apr/2020 215,000 Toyota Auto Receivables Owner Trust 1.520% 214,951 216,886 0.11 16/Aug/2021 300,000 Toyota Auto Receivables Owner Trust 1.740% 300,017 304,091 0.16 15/Sep/2020 65,000 Wells Fargo Commercial Mortgage Trust FRN 66,949 68,046 0.03 15/Dec/2047 185,000 Wells Fargo Commercial Mortgage Trust FRN 190,390 204,928 0.10 15/Sep/2058 850,000 Wells Fargo Home Equity Asset-Backed 830,874 823,347 0.43 Securities Trust FRN 25/Dec/2035 85,000 Wfrbs Commercial Mortgage Trust FRN 84,995 93,861 0.05 15/Aug/2046 145,000 Wfrbs Commercial Mortgage Trust FRN 148,231 165,294 0.08 15/Sep/2046 540,000 World Omni Auto Receivables Trust 1.770% 539,885 548,783 0.28 15/Sep/2021

60,137,157 60,071,032 30.73

Mortgage and Asset Backed Securities Total 60,137,157 60,071,032 30.73

Bonds

Netherlands 175,000 Mylan NV 2.500% 7/Jun/2019 174,804 176,823 0.09 580,000 Mylan NV 3.950% 15/Jun/2026 575,541 585,898 0.29

750,345 762,721 0.38 United States 38,758 America West Airlines 8.057% 2/Jul/2020 38,801 42,876 0.02 313,350 American Airlines 3.700% 1/May/2023 313,350 308,063 0.16 168,031 American Airlines 4.950% 15/Jan/2023 168,031 182,944 0.09 165,000 Ancestry.com Inc. 11.000% 15/Dec/2020 165,000 177,788 0.09 265,000 Ares Capital Corporation 3.875% 15/Jan/2020 264,949 275,015 0.13 194,000 Casella Waste Systems 7.750% 15/Feb/2019 187,695 197,215 0.10

MANULIFE GLOBAL FUND 220 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 85,000 Centene Escrow Corp 6.125% 15/Feb/2024 85,298 90,100 0.05 250,000 Charter Communications Operating LLC 252,716 299,756 0.15 6.484% 23/Oct/2045 185,367 Continental Airlines Inc. 5.983% 19/Apr/2022 189,084 207,898 0.11 76,554 Continental Airlines Inc. 6.250% 11/Apr/2020 76,554 81,549 0.04 57,858 Continental Airlines Inc. 6.545% 2/Feb/2019 61,308 61,547 0.03 14,589 Continental Airlines Inc. 6.648% 15/Sep/2017 14,137 14,927 0.01 35,842 Continental Airlines Inc. 6.900% 2/Jan/2018 37,911 36,425 0.02 2,005 Continental Airlines Inc. 8.307% 2/Apr/2018 2,105 2,135 0.00 86,461 Delta Air Lines Inc. 5.300% 15/Apr/2019 86,308 92,622 0.05 34,260 Delta Air Lines Inc. 6.200% 2/Jul/2018 34,260 36,659 0.02 214,825 Delta Air Lines Inc. 6.718% 2/Jan/2023 208,011 244,900 0.13 570,000 Diamond 1 Finance Corp. 6.020% 15/Jun/2026 569,726 591,489 0.31 80,000 Eldorado Resorts Inc. 7.000% 1/Aug/2023 80,338 83,600 0.04 145,000 Emera US Finance LP 3.550% 15/Jun/2026 144,601 148,430 0.08 295,000 Enterprise Products Operating LLC FRN 320,000 263,288 0.13 1/Aug/2066 465,000 Expedia Inc. 5.000% 15/Feb/2026 470,267 483,200 0.25 240,000 Fifth Third Bancorp FRN 31/Dec/2049 240,000 224,611 0.11 410,000 Frontier Communications Corp. 8.875% 427,518 436,570 0.22 15/Sep/2020 180,000 Gci Inc. 6.875% 15/Apr/2025 180,156 183,038 0.09 245,000 General Electric Capital Corp. FRN 15/Aug/2036 190,638 205,959 0.11 571,000 General Electric Company FRN 29/Dec/2049 498,767 605,920 0.31 175,000 GLP Capital LP 5.375% 15/Apr/2026 181,842 180,942 0.10 155,000 International Lease Finance Corp. P.P. 144A 159,948 169,919 0.09 7.125% 1/Sep/2018 210,000 Jo-Ann Stores Holdings Inc. P.P. 144A 9.750% 199,743 182,175 0.09 15/Oct/2019 310,000 Kraft Heinz Foods Company 2.000% 2/Jul/2018 309,786 313,920 0.17 205,000 Kraft Heinz Foods Company 5.200% 209,995 243,978 0.12 15/Jul/2045 250,000 Liberty Mutual Group P.P. 144A 7.800% 234,103 273,750 0.14 15/Mar/2037 200,000 Lifepoint Health Inc. 5.375% 1/May/2024 200,144 200,913 0.11 250,000 Manufacturers & Traders Trust Company FRN 262,281 247,274 0.13 1/Dec/2021 45,000 Match Group Inc. 6.375% 1/Jun/2024 45,000 46,575 0.02 190,000 Medco Health Solutions Inc. 7.125% 224,364 207,177 0.11 15/Mar/2018 195,000 Micron Technology Inc. 5.875% 15/Feb/2022 196,735 184,078 0.09 155,000 Mohegan Tribal Gaming Authority 9.750% 158,875 164,560 0.08 1/Sep/2021 185,000 Molina Healthcare 5.375% 15/Nov/2022 185,000 185,000 0.09 85,000 Mplx LP 4.875% 1/Dec/2024 86,381 82,892 0.04 295,000 Newstar Financial Inc. 7.250% 1/May/2020 292,583 279,433 0.14 117,404 Northwest Airlines 7.027% 1/Nov/2019 121,357 132,593 0.07 310,000 PNC Financial Services FRN 29/May/2049 303,300 299,094 0.15 385,000 PNC Financial Services FRN 31/Dec/2049 406,323 428,588 0.22 100,000 Qorvo Inc. 6.750% 1/Dec/2023 100,000 104,250 0.05 85,000 Qorvo Inc. 7.000% 1/Dec/2025 85,000 89,250 0.05 275,000 QVC Inc. 4.375% 15/Mar/2023 271,714 277,240 0.14

221 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 175,000 QVC Inc. 5.125% 2/Jul/2022 181,282 187,066 0.10 190,000 QVC Inc. 5.450% 15/Aug/2034 186,180 175,599 0.09 180,000 Revlon Consumer Products Corp. 5.750% 180,405 175,090 0.09 15/Feb/2021 207,000 Sirius XM Radio Inc. P.P. 144A 5.250% 217,918 217,803 0.11 15/Aug/2022 145,000 Southern California Edison Company FRN 147,613 161,607 0.08 29/Aug/2049 275,000 State Street Capital Trust IV FRN 15/Jun/2037 203,105 228,585 0.12 315,000 Teachers Insurance & Annuity Association of 355,990 429,632 0.23 America P.P. 144A 6.850% 16/Dec/2039 75,000 Tops Holding II Corp. 8.750% 15/Jun/2018 74,250 65,625 0.03 59,790 UAL 9.750% 15/Jan/2017 62,052 61,897 0.03 10,930 UAL 10.400% 1/Nov/2016 10,930 11,244 0.01 242,726 United Airlines 3.750% 3/Sep/2026 242,981 253,952 0.13 256,756 United Airlines 4.625% 3/Sep/2022 261,374 257,077 0.13 170,000 United Airlines Class A Pass Through Trust 170,000 173,553 0.09 3.450% 7/Jul/2028 139,903 US Airways Group Inc. 5.900% 1/Oct/2024 149,396 160,106 0.08 189,617 US Airways Group Inc. 6.250% 22/Apr/2023 199,352 213,083 0.11 50,000 Vista Outdoor Inc. 5.875% 1/Oct/2023 50,475 52,313 0.03 290,000 Voya Financial Inc. FRN 15/May/2053 291,266 273,806 0.14 36,443 Waterford 3 Fund 8.090% 2/Jan/2017 36,625 36,527 0.02 385,000 Whole Foods Market Inc. 5.200% 3/Dec/2025 385,423 413,996 0.21 185,000 Zebra Technologies Company 7.250% 189,880 196,779 0.10 15/Oct/2022

13,138,500 13,617,465 6.98

Bonds Total 13,888,845 14,380,186 7.36

Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2) 76,283,155 76,847,001 39.31

Other transferable securities and money market instruments (2)

Mortgage and Asset Backed Securities

United States 335,000 Americold LLC Trust FRN 14/Jan/2021 361,396 377,612 0.19 300,000 Applebees Funding LLC 4.277% 5/Sep/2044 301,875 305,975 0.16 398,000 Arbys 4.969% 30/Oct/2045 398,000 417,107 0.21 225,000 Bamll FRN 14/Apr/2033 208,773 190,579 0.10 115,000 BBCMS FRN 15/Feb/2028 115,000 112,705 0.06 290,000 BBCMS FRN 15/Sep/2032 289,099 293,492 0.15 320,000 Bhms Atls Mortgage Trust FRN 5/Jul/2033 320,000 306,733 0.16 180,000 Bway FRN 13/Jan/2035 179,999 174,517 0.09 420,000 Bway FRN 10/Mar/2033 383,966 394,355 0.20 225,000 Bxhtl FRN 15/May/2029 223,875 212,008 0.11

MANULIFE GLOBAL FUND 222 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 45,420 Citicorp Residential Mortgage Securities Inc. 44,057 47,045 0.02 5.436% 25/Jun/2037 245,000 Gahr Commercial Mortgage Trust 3.495% 229,254 235,692 0.12 15/Dec/2034 115,000 Gahr Commercial Mortgage Trust 3.495% 112,133 114,650 0.06 15/Dec/2034 355,000 GS Mortgage Securities Corp. Trust FRN 355,000 356,273 0.18 15/Feb/2033 300,000 GS Mortgage Securities Trust 3.932% 300,048 301,980 0.15 10/Oct/2035 533,768 Harborview Mortgage Loan Trust FRN 52,806 33,494 0.02 19/Apr/2045 238,466 Hilton USA Trust FRN 5/Nov/2030 238,466 237,709 0.12 305,000 Hilton USA Trust 4.407% 5/Nov/2030 310,963 307,267 0.16 1,482,584 Indymac Index Mortgage Loan Trust FRN 110,615 64,344 0.03 25/Oct/2036 1,612,305 Indymac Index Mortgage Loan Trust FRN 85,066 126,727 0.06 25/Oct/2036 225,000 JPMorgan Chase Commercial Mortgage 225,000 225,686 0.12 Securities Corp. FRN 15/Jul/2036 420,000 New Century Home Equity Loan Trust FRN 373,734 395,576 0.20 25/Mar/2035 887,741 Residential Accredit Loans Inc. FRN 76,180 90,274 0.05 25/Dec/2045 377,717 Saxon Asset Securities Trust FRN 25/Sep/2036 354,346 356,410 0.18 154,871 Sonic Capital LLC 4.472% 20/May/2046 154,871 156,853 0.08 180,000 Tmsq Mortgage Trust 3.963% 10/Oct/2036 175,990 171,193 0.09 420,000 Wells Fargo Commercial Mortgage Trust FRN 391,351 414,081 0.21 18/Mar/2020 615,350 Wendys Funding LLC 3.371% 15/Jun/2045 618,908 618,804 0.32

6,990,771 7,039,141 3.60

Mortgage and Asset Backed Securities Total 6,990,771 7,039,141 3.60

Bonds

Bermuda 290,000 Digicel Group Limited 8.250% 30/Sep/2020 313,200 242,604 0.12 200,000 Digicel Limited 6.750% 1/Mar/2023 174,000 170,866 0.09

487,200 413,470 0.21 Canada 210,000 Air Canada 6.625% 15/May/2018 216,038 215,250 0.11 85,000 MDC Partners Inc. 6.500% 1/May/2024 85,000 85,000 0.04 115,000 Norbord Inc. 6.250% 15/Apr/2023 115,000 118,306 0.06 210,000 Nova Chemicals Corp. 5.000% 1/May/2025 217,183 207,375 0.11 75,000 Open Text Corp. 5.875% 1/Jun/2026 75,000 75,428 0.04

708,221 701,359 0.36

223 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

France 125,000 AXA SA FRN 14/Dec/2036 132,188 131,824 0.07 160,000 Electricite de France SA 3.625% 13/Oct/2025 158,648 166,778 0.09

290,836 298,602 0.16 Germany 305,000 Commerzbank AG 8.125% 19/Sep/2023 319,694 355,038 0.18

319,694 355,038 0.18 Guernsey – Channel Islands 124,318 Doric Nimrod Air Two Limited 6.125% 125,095 126,182 0.06 30/Nov/2019

125,095 126,182 0.06 Netherlands 265,000 ING Bank NV 5.800% 25/Sep/2023 279,890 291,732 0.15

279,890 291,732 0.15 United Kingdom 91,112 British Airways 5.625% 20/Jun/2020 92,374 94,985 0.05

92,374 94,985 0.05 United States 250,000 Activision Blizzard Inc. P.P. 144A 6.125% 272,789 272,675 0.14 15/Sep/2023 270,000 Ahern Rentals Inc. P.P. 144A 7.375% 255,675 191,025 0.10 15/May/2023 307,836 American Airlines 7.000% 31/Jan/2018 328,949 321,303 0.16 95,000 Ancestry.com Inc. P.P. 144A 9.625% 95,050 97,138 0.05 15/Oct/2018 175,000 CCM Merger Inc. P.P. 144A 9.125% 1/May/2019 178,500 182,438 0.10 75,000 Covenant Surgical 8.750% 1/Aug/2019 75,188 72,375 0.04 285,000 Crown Castle Towers LLC P.P. 144A 4.883% 285,000 311,062 0.16 15/Aug/2020 160,000 Crown Castle Towers LLC 6.113% 15/Jan/2020 174,870 178,146 0.09 220,000 DCP Midstream LLC P.P. 144A FRN 220,000 156,200 0.08 21/May/2043 200,000 DCP Midstream LLC P.P. 144A 9.750% 266,344 219,000 0.11 15/Mar/2019 60,000 Diamond 1 Finance Corp. 7.125% 15/Jun/2024 60,000 62,579 0.03 60,000 Enersys P.P. 144A 5.000% 30/Apr/2023 60,175 59,625 0.03 145,000 Florida East Coast Holdings Corp. P.P. 144A 145,788 145,363 0.07 6.750% 1/May/2019

MANULIFE GLOBAL FUND 224 U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 40,000 Huntington Ingalls Industries 5.000% 40,000 41,920 0.02 15/Nov/2025 210,000 Huntington Ingalls Industries Inc. P.P. 144A 216,963 220,253 0.11 5.000% 15/Dec/2021 28,000 Kraft Heinz Foods Company P.P. 144A 4.875% 30,450 30,700 0.02 15/Feb/2025 50,000 McGraw-Hill Global Education Holdings LLC 50,000 51,875 0.03 7.875% 15/May/2024 40,000 Mednax Inc. 5.250% 1/Dec/2023 40,000 40,500 0.02 65,000 MetLife Capital Trust IV P.P. 144A 7.875% 82,063 78,000 0.04 15/Dec/2037 160,000 MetLife Capital Trust X P.P. 144A 9.250% 194,013 220,201 0.11 8/Apr/2038 95,000 Micron Technology Inc. 7.500% 15/Sep/2023 95,000 101,286 0.05 90,000 Midcontinent Communications 6.875% 90,000 92,700 0.05 15/Aug/2023 235,000 Platform Specialty Products Corp. P.P. 144A 234,810 207,387 0.10 6.500% 1/Feb/2022 90,000 Post Holdings Inc. 7.750% 15/Mar/2024 90,000 98,308 0.05 90,000 Prime Security Services Borrower LLC 9.250% 90,000 95,187 0.05 15/May/2023 280,000 Quicken Loans Inc. P.P. 144A 5.750% 267,597 269,126 0.14 1/May/2025 70,000 Quintiles Transnational Corp. P.P. 144A 71,750 71,400 0.04 4.875% 15/May/2023 195,000 Rackspace Hostin 6.500% 15/Jan/2024 195,000 194,025 0.10 170,000 Radio One Inc. P.P. 144A 9.250% 15/Feb/2020 153,313 150,450 0.08 215,000 Rain CII Carbon LLC P.P. 144A 8.250% 188,838 175,763 0.09 15/Jan/2021 210,000 S&P Global Inc. 4.400% 15/Feb/2026 209,267 236,230 0.12 100,000 Safway Group Holding P.P. 144A 7.000% 99,975 100,500 0.05 15/May/2018 48,000 Seminole Tribe P.P. 144A 6.535% 1/Oct/2020 46,750 48,210 0.02 225,000 Sinclair Television Group Inc. P.P. 144A 220,238 231,187 0.13 5.625% 1/Aug/2024 145,000 Sirius XM Radio Inc. P.P. 144A 5.375% 143,491 143,188 0.07 15/Apr/2025 200,000 Sirius XM Radio Inc. 5.375% 15/Jul/2026 200,000 197,354 0.10

225 MANULIFE GLOBAL FUND U.S. BOND FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 109,000 Spl Logistics Escrow LLC P.P. 144A 8.875% 109,485 84,475 0.04 1/Aug/2020 85,000 Stearns Holdings Inc. 9.375% 15/Aug/2020 84,788 79,369 0.04 335,000 Tops Holding/markets II P.P. 144A 8.000% 336,819 292,706 0.15 15/Jun/2022 165,000 Universal Health Services Inc. 4.750% 167,475 167,767 0.09 1/Aug/2022 15,919 Waterford Gaming P.P. 144A 8.625% 15,919 0 0.00 15/Sep/2049 a 325,000 XPO Logistics Inc. P.P. 144A 6.500% 311,087 310,602 0.15 15/Jun/2022 110,000 ZFS Finance USA P.P. 144A FRN 9/May/2037 120,725 110,275 0.06

6,614,144 6,409,873 3.28

Bonds Total 8,917,454 8,691,241 4.45

Bonds – convertibles

United States 135,000 NRG Yield Inc. 3.250% 1/Jun/2020 135,000 126,191 0.06

135,000 126,191 0.06

Bonds – convertibles Total 135,000 126,191 0.06

Total Other transferable securities and money market instruments (2) 16,043,225 15,856,573 8.11

Portfolio of Investments 187,525,238 190,310,084 97.35

Other Net Assets 5,183,727 2.65

Net Assets 195,493,811 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 226 U.S. BOND FUND

Investment Objective: The primary objective of this sub-fund is to maximize total returns from a combination of current income and capital appreciation. To pursue this objective, the sub-fund will normally invest its assets in U.S. dollars-denominated fixed-income securities with an intended average credit rating of A and above.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

U.S. Bond Fund Class AA +3.51% U.S. Bond Fund Class AA (HKD) +3.64% U.S. Bond Fund Class AA (HKD) Inc +3.72% U.S. Bond Fund Class AA Inc +3.53% U.S. Bond Fund Class I +3.70% U.S. Bond Fund Class I3 +4.84% Barclays Capital U.S. Aggregate Bond Index +6.00% Portfolio Review

The sub-fund’s duration positioning detracted from relative performance for the 12-month period. Throughout most of the period, the sub-fund’s duration (a measure of interest rate sensitivity) was slightly shorter than that of the benchmark, which meant that the sub-fund had less sensitivity to yield fluctuations than the benchmark did. As a result, when bond yields declined broadly during the reporting period, the sub-fund did not benefit as much as the benchmark.

Sector allocation aided performance compared with the benchmark. In particular, overweight positions in investment-grade corporate bonds and asset-backed securities (mainly backed by auto loans and credit card debt) added value, as did an underweight position in residential mortgage-backed securities. On the downside, the sub-fund’s position in high-yield corporate bonds weighed on relative results as this segment of the bond market underperformed during the reporting period.

Individual security selection detracted overall from performance versus the benchmark. Notable detractors included grocery retailer Tops Markets and energy producers Continental Resources and Plains Exploration & Production. Leading performance contributors included Mexican auto parts manufacturer Tenedora Nemak, healthcare provider Molina Healthcare, and movie theatre chain AMC Entertainment.

Market Review

The US bond market posted a solid gain for the 12 months ended 30 June 2016, as slowing economic growth led to declining bond yields. After growing at a robust 4% annual growth rate in the second quarter of 2015, the US economy decelerated over the ensuing quarters, slowing to a 2% annual growth rate in the third quarter and a 1.5% annual growth rate in the fourth quarter. Despite the slowdown, continued strength in employment growth led the Fed to raise its short-term interest rate target in late 2015. The December rate hike, which was the Fed’s first interest rate increase since 2006, lifted the federal funds rate from a range of 0%-0.25% to a range of 0.25%-0.50%.

Economic activity continued to moderate in the first half of 2016 as weak global growth and a stronger US dollar weighed on US exports. Even employment growth, which had been one of the stronger segments of the economy, began to slow toward the end of the 12-month period. Nonetheless, the unemployment rate finished the period at its lowest level since November 2007.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

227 MANULIFE GLOBAL FUND U.S. BOND FUND

Other factors buffeting the fixed-income markets during the 12-month period included a slowdown in global economic growth, particularly in China and other emerging markets; continued weakness in energy and commodity prices, primarily during the first half of the reporting period; continued geopolitical conflict in the Middle East and terrorist attacks around the globe; and the “Brexit” referendum – the UK’s vote in June 2016 to leave the EU.

The combination of decelerating economic growth, low inflation, and a flight to quality resulting from broader financial market volatility pushed US bond yields lower and bond prices higher for the 12-month period. Higher-quality bonds rallied the most, led by investment-grade corporate bonds, which also benefited from strong investor demand for yield. US Treasury bonds and commercial mortgage-backed securities also fared well during the period. Laggards included high-yield corporate bonds, which were left behind by the flight to quality, and residential mortgage-backed securities, which faced fears of increased refinancing activity as yields declined.

Outlook

Moderating US economic growth is likely to keep the Fed on hold through the end of 2016. Despite the muted economic backdrop, the sub-fund’s portfolio manager continues to see value in the credit-related sectors of the bond market. As US Treasury yields approach historically low levels, increased investor demand for higher yields should provide support for corporate bonds and other higher-yielding segments of the bond market.

Although the Fed has held short-term interest rates steady so far in 2016, the sub-fund’s portfolio manager expects interest rates to trend higher over time, and so the PM is maintaining a slightly shorter sub-fund duration compared with the benchmark.

The uncertainty surrounding the gradual process of Brexit could remain a source of volatility in the fixed- income markets going forward.

MANULIFE GLOBAL FUND 228 U.S. SMALL CAP EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Equities

Ireland 5,554 Fleetmatics Group plc 215,554 235,656 0.94

215,554 235,656 0.94 Israel 4,922 Nice Systems Limited – ADR 188,134 308,806 1.23

188,134 308,806 1.23 United Kingdom 22,768 Luxfer Holdings plc – ADR 396,775 272,305 1.08

396,775 272,305 1.08 United States 11,368 ABM Industries Inc. 333,395 406,974 1.62 6,766 Access National Corp. 110,817 131,125 0.52 5,191 Adamas Pharmaceuticals Inc. 68,243 79,526 0.32 12,898 AMC Entertainment Inc. – A 298,942 353,921 1.41 13,461 American Assets Trust Inc. 537,256 563,343 2.24 5,023 American Woodmark Corp. 342,238 329,408 1.31 31,824 Aratana Therapeutics Inc. 228,613 199,855 0.79 19,207 AVX Corp. 253,832 258,142 1.03 7,723 Banner Corp. 267,860 321,818 1.29 7,945 Barracuda Networks 203,806 118,063 0.47 25,235 BBCN Bancorp Inc. 337,500 370,198 1.48 3,754 Bio-Rad Laboratories Inc. – A 472,756 522,369 2.09 22,693 Brookline Bancorp Inc. 201,251 247,581 0.98 13,457 Build-A-Bear Workshop Inc. 224,594 177,498 0.71 13,074 Cadence Design Systems Inc. 175,446 315,933 1.25 16,859 Cardiovascular Systems Inc. 202,014 306,834 1.22 20,924 Central Garden & Pet Company 275,079 439,613 1.75 9,590 Cinemark Holdings Inc. 283,136 342,459 1.36 5,092 Circor International Inc. 224,144 283,879 1.13 4,364 Clarcor Inc. 245,874 259,614 1.03 9,673 Columbia Banking System Inc. 311,761 265,330 1.05 2,622 Cooper Companies Inc. 331,921 448,494 1.79 8,597 Copart Inc. 307,303 413,257 1.63 17,421 Del Frisco’s Restaurant Group Inc. 322,980 248,946 0.99 4,224 Deluxe Corp. 244,032 273,166 1.09 74,058 Derma Sciences Inc. 429,063 288,085 1.14 9,721 Emcor Group Inc. 444,229 468,747 1.86 8,862 Emergent Biosolutions Inc. 210,065 250,263 0.99 21,635 Enzo Biochem Inc. 62,977 126,565 0.50 8,308 Epr Properties 461,749 658,908 2.62 5,488 Esterline Technologies Corp. 425,294 328,292 1.30 4,303 Evercore Partners Inc. 184,423 182,017 0.72 9,656 Fiesta Restaurant Group Inc. 306,498 208,666 0.83 8,112 Finish Line – A 196,516 162,321 0.65 22,882 Five9 Inc. 120,438 263,372 1.05 4,809 Gentherm Inc. 161,110 160,765 0.64

229 MANULIFE GLOBAL FUND U.S. SMALL CAP EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 16,299 Golub Capital Bdc Inc. 281,201 294,686 1.17 5,938 Greatbatch Inc. 196,038 178,853 0.71 11,611 Halozyme Therapeutics Inc. 149,241 97,416 0.39 6,943 Hb Fuller Company 274,304 297,646 1.18 5,050 HSN Inc. 336,270 243,663 0.97 18,762 Hudson Pacific Properties Inc. 511,843 537,531 2.14 3,814 Integra Lifesciences Holdings Corp. 176,008 298,903 1.19 13,724 Integrated Device Technology Inc. 323,648 273,794 1.09 6,965 Inter Parfums Inc. 183,061 197,945 0.79 8,200 Interactive Intelligence Group Inc. 260,062 326,769 1.30 5,617 Logmein Inc. 245,762 359,039 1.42 20,190 Merit Medical Systems Inc. 378,428 391,888 1.56 6,742 Mks Instruments Inc. 255,587 281,546 1.12 9,665 Moelis & Company – A 269,318 213,113 0.85 11,233 Monotype Imaging Holdings Inc. 316,114 272,063 1.08 7,611 Nektar Therapeutics 84,605 105,184 0.42 9,851 Omeros Corp. 123,021 100,579 0.40 24,004 On Semiconductor Corp. 187,197 210,995 0.84 13,020 Orchids Paper Products 337,931 462,210 1.84 4,095 Parexel International Corp. 239,263 247,318 0.98 31,639 Park Sterling Corp. 233,217 221,157 0.88 5,247 Patterson Companies Inc. 240,927 249,652 0.99 16,578 Patterson-Uti Energy Inc. 262,025 342,999 1.36 20,376 Pennantpark 225,832 253,070 1.01 9,361 Portland General Electric Company 344,873 403,927 1.60 2,546 Qualys Inc. 54,233 74,878 0.30 24,644 Retail Opportunity Investments Corp. 422,049 533,789 2.12 37,702 Retailmenot Inc. 462,905 279,749 1.11 7,715 Sharps Compliance Corp. 36,990 33,869 0.13 9,055 Simpson Manufacturing Company Inc. 306,234 355,680 1.41 10,584 Ss&c Technologies Holdings Inc. 176,196 294,659 1.17 9,449 Synchronoss Technologies Inc. 369,073 297,266 1.18 6,640 Tenneco Inc. 291,056 302,850 1.20 9,952 Timken Company 316,793 298,162 1.18 3,786 Tupperware Brands Corp. 220,345 206,867 0.82 4,091 Unifirst Corp. 432,608 468,010 1.86 6,701 Unitil Corp. 238,673 283,720 1.13 12,298 Univest Corp. of Pennsylvania 251,649 252,232 1.00 22,220 Urban Edge Properties 477,660 653,713 2.60 3,374 Vail Resorts Inc. 246,624 464,431 1.84 6,246 Verint Systems Inc. 352,286 203,089 0.81 2,691 Watsco Inc. 234,807 371,331 1.48

21,133,112 23,011,588 91.47

MANULIFE GLOBAL FUND 230 U.S. SMALL CAP EQUITY FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Virgin Islands (British) 38,742 Amira Nature Foods Limited 285,219 290,565 1.15

285,219 290,565 1.15

Equities Total 22,218,794 24,118,920 95.87

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 22,218,794 24,118,920 95.87

Portfolio of Investments 22,218,794 24,118,920 95.87

Other Net Assets 1,039,468 4.13

Net Assets 25,158,388 100.00

(1) All securities classified under this section are listed on a stock-exchange. The notes to the Financial Statements form an integral part of these financial statements.

231 MANULIFE GLOBAL FUND U.S. SMALL CAP EQUITY FUND

Investment Objective: The sub-fund aims to make diversified investments mainly in equity-related investments and equities of smaller capitalization companies covering different sectors of the economy in the U.S. and which are listed on any stock exchange. The remaining assets of the sub-fund may include convertible bonds, bonds, deposits and other investments.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

U.S. Small Cap Equity Fund Class AA -3.65% Russell 2000 Index -6.73% Portfolio Review

Stock selection was the most significant contributor to the sub-fund’s performance. Significant individual contributors to performance included Central Garden & Pet, Enzo Biochem and Five9. Central Garden & Pet manufactures branded products for pets, lawns and gardens. The company has executed well lately, and investors have favoured the perceived safety of consumer staples stocks. Enzo Biochem runs a clinical laboratory in the New York City area and also holds some valuable patents. The company has been defending its patents and has prevailed in some lawsuits. Five9 makes cloud software for call centres. The company has benefited as call centres increasingly move away from on-premises information technology solutions.

Underweight exposure to the utilities sector detracted from performance. The sector outperformed as investors favoured defensive stocks and stocks with dividend yields. Significant individual detractors from performance included RCS Capital, Bristow Group and RetailMeNot. RCS provides tools for independent financial advisors. When sales were below expectations in 2015, it became apparent that the company had too much financial leverage. Bristow Group provides helicopter transportation for energy companies. The company was negatively affected when the price of oil dropped sharply during the past year. RetailMeNot provides online coupons. The company has struggled to adapt to the abrupt shift by consumers from shopping on desktop computers to shopping with mobile devices.

During the period, the sub-fund’s portfolio manager (PM) increased the sub-fund’s exposure to REITs to an overweight exposure. These stocks are usually owned for their yield, and the decision to increase exposure benefited the sub-fund’s performance.

Market Review

Central banks generally kept interest rates low during the period, which contributed to the outperformance of stocks with dividend yield, including real estate investment trusts (REITs). The Brexit vote, in which the UK voted to leave the EU, lowered economic forecasts and contributed to a further decline in global interest rates. Oil and natural gas prices rose somewhat, partly in response to supply disruptions.

Outlook

The PM remains cautious going into the coming period. As a result, the PM will seek idiosyncratic companies that can grow without the benefit of strong GDP growth. However, the PM will also require companies to have balance sheets strong enough to weather an economic downturn.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

MANULIFE GLOBAL FUND 232 U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Bonds

Bermuda 100,000 Aircastle Limited 5.000% 1/Apr/2023 100,000 101,586 0.14 440,000 Aircastle Limited 5.125% 15/Mar/2021 444,291 459,472 0.65 270,000 Weatherford International Limited 8.250% 264,600 254,946 0.36 15/Jun/2023

808,891 816,004 1.15 Cayman Islands 230,000 Vale Overseas Limited 5.875% 10/Jun/2021 230,000 230,536 0.32

230,000 230,536 0.32 France 355,000 Credit Agricole SA FRN 29/Jan/2049 356,903 341,251 0.48 275,000 Credit Agricole SA FRN 29/Dec/2049 278,713 274,630 0.39 300,000 Numericable Group SA 6.250% 15/May/2024 300,750 284,196 0.40

936,366 900,077 1.27 Ireland 832,000 Aercap Ireland Capital Limited 4.500% 840,320 852,233 1.19 15/May/2021 205,000 Aercap Ireland Capital Limited 4.625% 205,000 211,968 0.30 30/Oct/2020

1,045,320 1,064,201 1.49 Luxembourg 250,000 Arcelormittal 7.250% 25/Feb/2022 237,500 263,693 0.37 820,000 Intelsat Jackson Holdings SA 5.500% 511,675 510,450 0.72 1/Aug/2023 110,000 Intelsat Jackson Holdings SA 6.625% 97,213 70,950 0.10 15/Dec/2022 430,000 Wind Acquisition 7.375% 23/Apr/2021 430,000 409,887 0.58

1,276,388 1,254,980 1.77 Marshall Islands 540,000 Teekay Offshore Partners LP 6.000% 540,000 434,700 0.62 30/Jul/2019

540,000 434,700 0.62 Netherlands 210,000 Fiat Chrysler Auto 5.250% 15/Apr/2023 210,000 208,775 0.29 600,000 ING Groep NV FRN 31/Dec/2049 600,499 550,041 0.78 300,000 Myriad International Holdings 5.500% 285,750 312,036 0.44 21/Jul/2025

1,096,249 1,070,852 1.51

233 MANULIFE GLOBAL FUND U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United Kingdom 570,000 International Game Tech P.P. 144A 6.500% 550,948 572,756 0.80 15/Feb/2025 515,000 Lloyds Banking Group plc FRN 30/Apr/2049 546,885 500,531 0.71 300,000 Tullow Oil plc 6.000% 1/Nov/2020 306,750 242,528 0.34 320,000 Tullow Oil plc 6.250% 15/Apr/2022 328,800 256,014 0.36 360,000 Virgin Media Secured Finance plc 5.375% 362,800 369,289 0.52 15/Apr/2021

2,096,183 1,941,118 2.73 United States 205,000 Aecom 5.875% 15/Oct/2024 202,502 210,125 0.30 500,000 Aes Corp. 5.500% 15/Mar/2024 500,000 512,065 0.72 525,000 Alliance One International Inc. 9.875% 516,126 448,987 0.64 15/Jul/2021 120,000 Amc Networks Inc. 5.000% 1/Apr/2024 120,000 118,631 0.17 350,000 American Axle & Manufacturing Holdings Inc. 343,875 388,320 0.55 7.750% 15/Nov/2019 400,000 American Express Company FRN 400,000 382,716 0.54 29/Dec/2049 250,000 Amerigas Partners LP 5.625% 20/May/2024 250,000 250,675 0.35 230,000 Antero Resources Corp. 5.125% 1/Dec/2022 216,330 220,165 0.31 215,000 Approach Resources Inc. 7.000% 188,210 127,925 0.18 15/Jun/2021 345,000 Ashland Inc. 6.875% 15/May/2043 364,636 345,000 0.49 275,000 Ball Corp. 4.375% 15/Dec/2020 275,000 288,783 0.41 445,000 Ball Corp. 5.000% 15/Mar/2022 451,872 470,300 0.66 315,000 Beazer Homes USA Inc. 7.500% 15/Sep/2021 274,838 270,900 0.38 900,000 Cablevision Systems 5.875% 15/Sep/2022 908,750 808,254 1.13 150,000 Cablevision Systems Corp. 7.750% 156,000 159,818 0.23 15/Apr/2018 380,000 Cablevision Systems Corp. 8.000% 371,450 389,576 0.55 15/Apr/2020 360,000 CenturyLink Inc. 7.500% 1/Apr/2024 360,769 360,230 0.51 705,000 Chemours Company 6.625% 15/May/2023 659,662 595,725 0.83 265,000 Chemtura Corp. 5.750% 15/Jul/2021 272,950 268,165 0.38 650,000 CHS – Community Health Systems Inc. 680,188 568,701 0.80 6.875% 1/Feb/2022 225,000 Citigroup Inc. FRN 29/Jul/2049 228,467 223,211 0.31 450,000 Clear Channel Worldwide Holdings Inc. 474,188 450,380 0.63 6.500% 15/Nov/2022 290,000 Communications Sales & Leasing Inc. 8.250% 281,460 292,364 0.41 15/Oct/2023 1,000,000 Cooper Tire & Rubber Company 7.625% 1,035,000 1,084,999 1.53 15/Mar/2027 500,000 Crown Castle International Corp. 4.875% 511,693 550,545 0.78 15/Apr/2022 690,000 Davita Healthcare Partners Inc. 5.125% 694,000 698,297 0.98 15/Jul/2024 205,000 Dynagy Inc. 7.625% 1/Nov/2024 210,773 195,263 0.28 310,000 Electronic Arts Inc. 4.800% 1/Mar/2026 314,373 335,439 0.47 660,000 Enova International Inc. 9.750% 1/Jun/2021 666,144 523,050 0.74 125,000 Entercom Radio LLC 10.500% 1/Dec/2019 130,625 131,875 0.19 555,000 Freeport-McMoran Inc. 5.450% 15/Mar/2043 356,917 439,971 0.62

MANULIFE GLOBAL FUND 234 U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 415,000 Freeport-Mcmoran Oil & Gas LLC 6.875% 368,606 398,436 0.57 15/Feb/2023 255,000 Fresenius US Finance P.P. 144A 4.500% 255,000 262,570 0.37 15/Jan/2023 350,000 Frontier Communications Corp. 6.250% 339,750 332,407 0.47 15/Sep/2021 550,000 General Motors Company 4.000% 1/Apr/2025 537,450 555,269 0.79 420,000 Global Partners-GLP Finance 6.250% 419,550 350,700 0.49 15/Jul/2022 350,000 Goldman Sachs Group Inc. FRN 29/Dec/2049 349,563 345,406 0.49 275,000 Goodyear Tire & Rubber Company 5.000% 275,000 280,180 0.39 31/May/2026 565,000 Goodyear Tire & Rubber Company 7.000% 595,150 602,654 0.85 15/May/2022 245,000 Graphic Packaging Holding Company 4.875% 245,590 255,413 0.36 15/Nov/2022 425,000 Graphic Packaging International Inc. 4.750% 442,803 447,138 0.63 15/Apr/2021 300,000 Halcon Resources Corp. 9.750% 15/Jul/2020 225,250 70,500 0.10 970,000 HCA Inc. 5.375% 1/Feb/2025 988,181 994,468 1.40 150,000 HCA Inc. 7.500% 15/Feb/2022 171,000 170,130 0.24 420,000 Healthsouth Corp 5.750% 1/Nov/2024 422,100 423,457 0.60 680,000 Healthsouth Corp. 5.125% 15/Mar/2023 694,500 667,522 0.94 300,000 Hertz 6.250% 15/Oct/2022 309,750 307,718 0.43 360,000 Hertz Corp. 6.750% 15/Apr/2019 363,713 367,997 0.52 550,000 Iron Mountain Inc. 6.000% 15/Aug/2023 564,438 580,740 0.82 665,000 JPMorgan Chase & Company FRN 722,362 734,107 1.03 29/Jan/2049 500,000 Kinder Morgan Energy Partners LP 4.250% 456,020 506,853 0.71 1/Sep/2024 754,000 L Brands Inc. 6.950% 1/Mar/2033 806,542 753,532 1.06 660,000 Lear Corp. 5.250% 15/Jan/2025 659,375 697,422 0.98 200,000 Lennar Corp. 4.875% 15/Dec/2023 198,750 198,226 0.28 400,000 Leucadia National Corp. 5.500% 18/Oct/2023 413,800 405,806 0.57 315,000 Level 3 Financing 5.625% 1/Feb/2023 315,000 318,656 0.45 470,000 Lifepoint Health Inc. 5.875% 1/Dec/2023 470,000 490,570 0.69 355,000 MGM Resorts International 7.625% 356,775 365,474 0.52 15/Jan/2017 750,000 Morgan Stanley FRN 29/Dec/2049 757,030 742,654 1.05 300,000 Nationstar Mortgage LLC 6.500% 1/Jun/2022 288,705 252,267 0.36 565,000 Nationstar Mortgage LLC 7.875% 1/Oct/2020 573,033 529,687 0.74 110,000 Newfield Exploration Company 5.750% 110,825 110,995 0.16 30/Jan/2022 570,000 NRG Energy Inc. 6.250% 15/Jul/2022 522,038 556,577 0.78 685,000 NRG Yield Operating LLC 5.375% 638,375 685,000 0.98 15/Aug/2024 385,000 Oasis Petroleum Inc. 6.875% 15/Mar/2022 301,725 354,966 0.50 375,000 Outfront Media Cap LLC 5.875% 387,688 383,901 0.54 15/Mar/2025 230,000 Plains All American Pipeline LP 4.650% 216,276 231,141 0.33 15/Oct/2025 475,000 Post Holdings Inc. 7.375% 15/Feb/2022 486,146 500,118 0.70

235 MANULIFE GLOBAL FUND U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 100,000 PTC Inc. 6.000% 15/May/2024 100,000 104,005 0.15 440,000 Pvh Corp. 4.500% 15/Dec/2022 440,513 445,040 0.63 180,000 Radian Group Inc. 7.000% 15/Mar/2021 180,000 193,050 0.27 525,000 Reynolds Group Issuer Inc. 5.750% 540,618 539,997 0.76 15/Oct/2020 160,000 Rice Energy Inc. 7.250% 1/May/2023 144,223 163,600 0.23 175,000 S&P Global Inc. 6.550% 15/Nov/2037 183,829 217,270 0.31 392,000 Sanchez Energy Corp. 6.125% 15/Jan/2023 203,416 305,258 0.43 910,000 Select Medical Corp. 6.375% 1/Jun/2021 908,819 869,728 1.23 695,000 SM Energy Company 5.625% 1/Jun/2025 664,081 603,395 0.84 285,000 Sprint Communications Inc. 6.000% 274,871 220,254 0.31 15/Nov/2022 185,000 Sprint Corp. 7.875% 15/Sep/2023 131,350 151,120 0.21 425,000 Sprint Nextel Corp. 7.000% 15/Aug/2020 436,524 378,951 0.53 620,000 Summit Midstream Holdings LLC 7.500% 659,000 589,000 0.83 1/Jul/2021 400,000 Supervalu Inc. 7.750% 15/Nov/2022 344,513 338,088 0.48 125,000 Tenet Healthcare Corp. 4.375% 1/Oct/2021 118,212 124,484 0.18 195,000 Tesoro Corp. 5.125% 1/Apr/2024 191,875 196,219 0.28 500,000 T-Mobile USA Inc. 6.375% 1/Mar/2025 517,499 521,880 0.73 300,000 T-Mobile USA Inc. 6.500% 15/Jan/2026 300,000 316,068 0.45 200,000 T-Mobile USA Inc. 6.625% 1/Apr/2023 211,000 211,027 0.30 430,000 Toll Bros 4.875% 15/Nov/2025 430,000 433,324 0.61 185,000 Trinity Industries Inc. 4.550% 1/Oct/2024 181,763 174,474 0.25 65,000 Tronox Finance LLC 6.375% 15/Aug/2020 51,350 48,030 0.07 375,000 United Rentals North America Inc. 5.500% 375,000 370,538 0.52 15/Jul/2025 230,000 United Rentals North America Inc. 6.125% 230,000 238,748 0.34 15/Jun/2023 390,000 Vector Group Limited 7.750% 15/Feb/2021 406,012 408,038 0.57 175,000 Wellcare Health Plans Inc. 5.750% 182,875 180,906 0.25 15/Nov/2020 640,000 Wells Fargo & Company FRN 29/Dec/2049 643,149 658,567 0.92 490,000 Whiting Petroleum Corp. 5.750% 445,530 448,349 0.63 15/Mar/2021 635,000 Williams Partners LP 4.875% 15/Mar/2024 630,836 609,174 0.86 410,000 WPX Energy Inc. 5.250% 15/Sep/2024 328,950 362,850 0.51

39,120,465 38,762,544 54.64

Bonds Total 47,149,862 46,475,012 65.50

Bonds – convertibles

United States 288 Wells Fargo & Company 7.500% 31/Dec/2049 362,466 368,640 0.52

362,466 368,640 0.52

Bonds – convertibles Total 362,466 368,640 0.52

MANULIFE GLOBAL FUND 236 U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Equities

United States 3,100 American Tower Corp. 15/May/2017 310,000 348,595 0.49 9,100 Exelon Corp. 1/Jun/2017 454,065 440,258 0.62 23,150 GMAC Capital Trust I 15/Feb/2040 602,420 575,740 0.81 30,000 JPMorgan Chase & Company 750,000 779,100 1.10 5,000 Navient Corp. 63,576 58,000 0.08 970 Resolute Forest Products Inc. 0 4,831 0.01 3,457 SLM Corp. 146,204 167,837 0.24

2,326,265 2,374,361 3.35

Equities Total 2,326,265 2,374,361 3.35

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 49,838,593 49,218,013 69.37

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Bonds

Canada 500,000 Air Canada 8.750% 1/Apr/2020 540,000 532,500 0.75 500,000 Nova Chemicals Corp. 5.250% 1/Aug/2023 503,750 505,000 0.71 265,000 Novelis Inc. 8.750% 15/Dec/2020 258,247 278,250 0.39

1,301,997 1,315,750 1.85 United States 750,000 CCO Holdings LLC 5.125% 15/Feb/2023 743,187 756,294 1.07 420,000 Csi Compressco 7.250% 15/Aug/2022 413,734 350,700 0.49 250,000 Dish Dbs Corp. 7.875% 1/Sep/2019 271,370 275,676 0.39 520,000 Eldorado Resorts Inc. 7.000% 1/Aug/2023 526,875 543,400 0.76 510,000 Frontier Communications Corp. 11.000% 509,813 524,894 0.73 15/Sep/2025 520,000 Gci Inc. 6.875% 15/Apr/2025 525,530 528,777 0.74 135,000 GLP Capital LP 5.375% 15/Apr/2026 135,000 139,584 0.20 86,000 IAC/Interactivecorp 4.875% 30/Nov/2018 86,000 87,643 0.12 250,000 Iheartcommunication 10.625% 15/Mar/2023 228,265 176,250 0.25 361,000 Jo-Ann Stores Holdings Inc. P.P. 144A 9.750% 358,690 313,168 0.44 15/Oct/2019 494,000 Ladder Capital Finance 7.375% 1/Oct/2017 505,636 501,410 0.71 335,000 LMI Aerospace Inc. 7.375% 15/Jul/2019 336,873 340,025 0.47 800,000 Micron Technology Inc. 5.500% 1/Feb/2025 698,000 679,084 0.96 495,000 Mohegan Tribal Gaming Authority 9.750% 520,833 525,532 0.74 1/Sep/2021 255,000 Molina Healthcare 5.375% 15/Nov/2022 253,725 255,000 0.36 150,000 Newstar Financial Inc. 7.250% 1/May/2020 148,515 142,085 0.20 150,000 Newstar Financial Inc. 7.250% 1/May/2020 150,000 142,085 0.20 600,000 Outfront Media Cap LLC 5.625% 15/Feb/2024 605,750 619,500 0.87

237 MANULIFE GLOBAL FUND U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States (continued) 210,000 PBF Holding LLC – PBF Finance 7.000% 210,000 204,488 0.29 15/Nov/2023 500,000 Platform Specialty Products Corp. 10.375% 517,500 505,000 0.71 1/May/2021 200,000 Qorvo Inc. 7.000% 1/Dec/2025 200,000 210,000 0.30 400,000 QVC Inc. 4.450% 15/Feb/2025 373,616 402,650 0.57 700,000 Revlon Consumer Products Corp. 5.750% 701,392 680,904 0.95 15/Feb/2021 185,000 Sabine Pass Liquefaction LLC 5.875% 185,000 185,000 0.26 30/Jun/2026 315,000 SBA Companymunications 4.875% 311,890 314,226 0.44 15/Jul/2022 500,000 Windstream Corp. 7.500% 1/Jun/2022 397,500 444,768 0.63

9,914,694 9,848,143 13.85

Bonds Total 11,216,691 11,163,893 15.70

Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2) 11,216,691 11,163,893 15.70

Other transferable securities and money market instruments (2)

Mortgage and Asset Backed Securities

Cayman Islands 30,818 Lehman XS Net Interest Margin Notes 9.000% 29,104 0 0.00 28/Jan/2047 a

29,104 0 0.00

Mortgage and Asset Backed Securities Total 29,104 0 0.00

Bonds

Bermuda 300,000 Digicel Limited 6.750% 1/Mar/2023 272,100 256,299 0.36

272,100 256,299 0.36 Canada 290,000 MDC Partners Inc. 6.500% 1/May/2024 284,825 290,000 0.41

284,825 290,000 0.41 Luxembourg 272,027 Ardagh Finance Holding 8.625% 15/Jun/2019 285,152 273,387 0.39 500,000 Mallinckrodt 5.750% 1/Aug/2022 491,459 475,000 0.67

776,611 748,387 1.06

MANULIFE GLOBAL FUND 238 U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

United States 270,000 Chaparral Energy Inc. 7.625% 15/Nov/2022 207,000 160,650 0.23 220,000 CVR Partners LP 9.250% 15/Jun/2023 214,498 220,550 0.31 295,000 Energy Xxi Gulf Companyast Inc. P.P. 144A 284,305 119,475 0.17 11.000% 15/Mar/2020 200,000 Huntington Ingalls Industries 5.000% 202,623 209,600 0.30 15/Nov/2025 285,000 Kronos Acquisition Holdings 9.000% 256,886 280,725 0.40 15/Aug/2023 400,000 Micron Technology Inc. P.P. 144A 5.625% 330,938 335,252 0.47 15/Jan/2026 175,000 Nwh Escrow Corp. P.P. 144A 7.500% 164,500 130,375 0.18 1/Aug/2021 400,000 Ope Kag Finance Sub P.P. 144A 7.875% 400,000 398,000 0.56 31/Jul/2023 260,000 Permian Resources LLC 7.125% 1/Nov/2020 260,000 141,700 0.20 180,000 Platform Specialty Products Corp. 10.375% 180,000 181,350 0.26 1/May/2021 385,000 Rackspace Hostin 6.500% 15/Jan/2024 381,500 383,075 0.54 255,000 Radio One Inc. P.P. 144A 9.250% 233,569 225,675 0.32 15/Feb/2020 155,000 Rain CII Carbon LLC P.P. 144A 8.000% 161,160 134,850 0.19 1/Dec/2018 285,000 Sirius XM Radio Inc. 6.000% 15/Jul/2024 292,865 293,336 0.41 280,000 Southern States Cooperative P.P. 144A 275,920 211,400 0.30 10.000% 15/Aug/2021 1,440,000 Stone Company 0.000% 15/Mar/2017 a 0 900 0.00 25,000 Talen Energy Supply LLC 5.125% 15/Jul/2019 19,750 22,000 0.03 110,000 Time Inc. 5.750% 15/Apr/2022 96,787 103,629 0.15 195,000 XPO Logistics Inc. P.P. 144A 6.500% 190,787 186,362 0.26 15/Jun/2022 480,000 Zf North America Capital Inc. P.P. 144A 475,296 481,550 0.68 4.750% 29/Apr/2025

4,628,384 4,220,454 5.96

Bonds Total 5,961,920 5,515,140 7.79

Equities

United States 7,769 Muzak Holdings Escrow 0 0 0.00 27,353 Trump Entertainment Resorts Inc. a 2,371,750 3 0.00 4,462 Vertis Holdings Inc. a 461,111 0 0.00

2,832,861 3 0.00

Equities Total 2,832,861 3 0.00

239 MANULIFE GLOBAL FUND U.S. SPECIAL OPPORTUNITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Warrants Equity

Canada 8,881 Warrant On Mood Media Corp. – Wts 169,102 0 0.00 1/Jan/2049 a

169,102 0 0.00

Warrants Equity Total 169,102 0 0.00

Total Other transferable securities and money market instruments (2) 8,992,987 5,515,143 7.79

Portfolio of Investments 70,048,271 65,897,049 92.86

Other Net Assets 5,068,242 7.14

Net Assets 70,965,291 100.00

a Defaulted/Fair Valued by the Board of Directors. (1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 240 U.S. SPECIAL OPPORTUNITIES FUND

Investment Objective: The sub fund aims to maximize total returns from a combination of current income and capital appreciation. To pursue this objective, the sub-fund will primarily invest in U.S. and foreign fixed-income securities rated BB/Ba or lower and their unrated equivalents. PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

U.S. Special Opportunities Fund Class AA -0.39% U.S. Special Opportunities Fund Class AA Inc -0.39% U.S. Special Opportunities Fund Class I -0.18% U.S. Special Opportunities Fund Class T -0.55% BofA Merrill US High Yield Master II Index +1.71% PERFORMANCE FROM 18 JANUARY 2016 TO 30 June 2016

U.S. Special Opportunities Fund Class I3 +9.27% Portfolio Review Security selection contributed to the sub-fund’s performance, particularly across the consumer staples and consumer discretionary sectors and the electricity sub-sector. The sub-fund’s overweight position in the banking sub-sector, which outperformed, also contributed. Significant individual contributors to performance included Mohegan Tribal Gaming, transportation services company Teekay Offshore Partners and utilities services company Exelon Corporation. Mohegan Tribal Gaming and Teekay Offshore Partners benefited from favourable outlooks. The sub-fund’s underweight position in the technology sector, select holdings in the energy sector and security selection in the communications sub-sector detracted from performance. Individual detractors included media entertainment company iHeart Media, which struggled with a weak business outlook. In the energy sector, independent energy company Approach Resources detracted from performance as a result of volatility in the oil market. In the communications sub-sector, satellite operator Intelsat detracted from performance as a result of pricing concerns. Market Review For the one-year period ending in June, high-yield markets exhibited two distinct phases of performance – the first decidedly negative and the second resulting in robust positive returns. The main themes behind both phases were the same – expectations for Fed policy, the price of oil and the outlook for global growth. In the first part of the period, low commodity prices put a significant strain on the energy sector and the metals and mining sub-sector, causing default expectations to rise and risk assets to fall out of favour. In addition, questions about stabilisation in China, global growth conditions and the likelihood that the Fed would establish a rate hike schedule left many investors on the side-lines. After oil prices reached a low in mid-February, recovery in the commodities sectors remained a key theme for high-yield markets during the second half of the period. This was led by the performance of the energy sector, and the metals and mining sub-sector. After the February low, high-yield bonds provided solid gains, which were interrupted by increased volatility at the end of the period resulting from the surprise decision by UK voters to leave the EU. Expectations for accommodative central bank policies in response to global growth concerns and for deferred action from the Fed had a positive impact on demand for fixed-income assets offering additional yield in such a low interest rate environment. Outlook The sub-fund’s portfolio manager believes that corporate fundamentals remain sound in a variety of sectors, but that earnings growth has slowed materially. With a more benign US interest rate outlook, or at least a more measured course of action expected from the Fed and accommodative conditions elsewhere, the low global interest rate environment provides some support to sectors desired by yield- seeking investors. However, the sub-fund’s portfolio manager believes this same central bank message supporting low inflation and limited growth is cause for concern; particularly about the economic trajectory and business conditions affecting many bond issuers. With the possibility for elevated default activity, particularly from commodity-related industries, the sub-fund’s portfolio manager believes security selection and fundamental credit analysis will be critical elements of success in the leveraged credit markets. Broader market volatility causing wide price movements with limited volume – as recently experienced after Brexit – may also provide more reason to remain cautious for the coming period.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

241 MANULIFE GLOBAL FUND U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments admitted to an official exchange listing (1)

Supranationals, Governments and Local Public Authorities, Debt Instruments

United States 175,000 United States Treasury Inflation Indexed 174,750 178,128 2.14 Bonds 0.126% 15/Jul/2024 300,000 United States Treasury Inflation Indexed 316,253 322,906 3.88 Bonds 0.132% 15/Jan/2022 460,000 United States Treasury Inflation Indexed 456,677 489,026 5.87 Bonds 0.376% 15/Jul/2023 130,000 United States Treasury Inflation Indexed 144,832 145,044 1.74 Bonds 0.663% 15/Jul/2021 235,000 United States Treasury Inflation Indexed 269,772 274,562 3.30 Bonds 1.230% 15/Jan/2021 205,000 United States Treasury Inflation Indexed 244,400 241,960 2.91 Bonds 1.521% 15/Jan/2020 185,000 United States Treasury Inflation Indexed 221,479 215,248 2.59 Bonds 1.526% 15/Jul/2018 105,000 United States Treasury Inflation Indexed 128,708 124,504 1.50 Bonds 1.853% 15/Jan/2018 100,000 United States Treasury Inflation Indexed 131,804 144,282 1.73 Bonds FRN 15/Feb/2041 100,000 United States Treasury Inflation Indexed 149,830 144,914 1.74 Bonds 2.352% 15/Feb/2040 425,000 United States Treasury Inflation Indexed 508,776 508,105 6.10 Bonds 2.368% 15/Jan/2019 195,000 United States Treasury Inflation Indexed 261,481 276,610 3.33 Bonds 2.410% 15/Jan/2026 140,000 United States Treasury Inflation Indexed 207,250 197,878 2.38 Bonds 2.786% 15/Jan/2029 110,000 United States Treasury Inflation Indexed 124,262 160,162 1.93 Bonds 2.817% 15/Jan/2027 289,000 United States Treasury Inflation Indexed 432,801 437,976 5.26 Bonds 3.014% 15/Jan/2025 55,000 United States Treasury Inflation Indexed 104,425 108,678 1.31 Bonds 4.543% 15/Apr/2032 110,000 United States Treasury Inflation Indexed 208,567 225,344 2.71 Bonds 5.355% 15/Apr/2028 45,000 United States Treasury Inflation Indexed 91,961 94,421 1.14 Bonds 5.632% 15/Apr/2029

4,178,028 4,289,748 51.56

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 4,178,028 4,289,748 51.56

Total Transferable securities and money market instruments admitted to an official exchange listing (1) 4,178,028 4,289,748 51.56

MANULIFE GLOBAL FUND 242 U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2)

Supranationals, Governments and Local Public Authorities, Debt Instruments

United States 85,000 Fannie Mae 3.000% 29/Oct/2027 84,894 85,028 1.02 100,000 United States Treasury Inflation Indexed 102,457 103,258 1.24 Bonds 0.125% 15/Apr/2021 210,000 United States Treasury Inflation Indexed 217,007 218,793 2.63 Bonds 0.127% 15/Apr/2019 570,000 United States Treasury Inflation Indexed 593,966 598,661 7.19 Bonds 0.129% 15/Apr/2018 440,000 United States Treasury Inflation Indexed 448,774 462,001 5.55 Bonds 0.130% 15/Jan/2023 280,000 United States Treasury Inflation Indexed 303,827 297,613 3.58 Bonds 0.130% 15/Jul/2022 245,000 United States Treasury Inflation Indexed 246,030 254,459 3.06 Bonds 0.377% 15/Jul/2025 155,000 United States Treasury Inflation Indexed 162,104 164,343 1.98 Bonds 0.623% 15/Jan/2026 385,000 United States Treasury Inflation Indexed 399,888 413,292 4.97 Bonds 0.629% 15/Jan/2024 110,000 United States Treasury Inflation Indexed 110,376 111,558 1.34 Bonds 0.650% 15/Feb/2043 100,000 United States Treasury Inflation Indexed 89,884 102,181 1.23 Bonds 0.762% 15/Feb/2045 150,000 United States Treasury Inflation Indexed 162,850 159,375 1.92 Bonds 0.794% 15/Feb/2042 115,000 United States Treasury Inflation Indexed 121,229 125,387 1.51 Bonds 1.000% 15/Feb/2046 260,000 United States Treasury Inflation Indexed 301,141 306,216 3.68 Bonds 1.369% 15/Jul/2020 165,000 United States Treasury Inflation Indexed 178,065 195,964 2.36 Bonds 1.410% 15/Feb/2044 155,000 United States Treasury Inflation Indexed 166,875 207,054 2.49 Bonds 1.998% 15/Jan/2028

3,689,367 3,805,183 45.75

Supranationals, Governments and Local Public Authorities, Debt Instruments Total 3,689,367 3,805,183 45.75

243 MANULIFE GLOBAL FUND U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND

Portfolio of Investments as at 30 June 2016

Market % Quantity/ Cost Value of Net Par Value Description USD USD Assets

Mortgage and Asset Backed Securities

United States 184,054 Fannie Mae Remics 3.500% 25/Dec/2032 50,312 26,360 0.32

50,312 26,360 0.32

Mortgage and Asset Backed Securities Total 50,312 26,360 0.32

Total Transferable securities and money market instruments dealt in on another regulated market and recently issued transferable securities (2) 3,739,679 3,831,543 46.07

Other transferable securities and money market instruments (2)

Mortgage and Asset Backed Securities

United States 22,281 Bear Stearns Asset Backed Securities 5.250% 23,019 22,277 0.27 25/Oct/2034 273,751 Indymac Index Mortgage Loan Trust FRN 16,690 11,881 0.14 25/Oct/2036

39,709 34,158 0.41

Mortgage and Asset Backed Securities Total 39,709 34,158 0.41

Total Other transferable securities and money market instruments (2) 39,709 34,158 0.41

Portfolio of Investments 7,957,416 8,155,449 98.04

Other Net Assets 163,459 1.96

Net Assets 8,318,908 100.00

(1) All securities classified under this section are listed on a stock-exchange. (2) All securities classified under this section are unlisted. The notes to the Financial Statements form an integral part of these financial statements.

MANULIFE GLOBAL FUND 244 U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND

Investment Objective: The primary objective of this sub-fund is to maximize total returns, consistent with capital preservation, by investing in U.S. Treasury Inflation Protected Securities. In addition, the sub- fund may also invest in other types of inflation-indexed and non-inflation-indexed debt securities issued or guaranteed by the U.S. government, its agencies, instrumentalities and political sub-divisions.

PERFORMANCE FROM 1 JULY 2015 TO 30 June 2016*

U.S. Treasury Inflation-Protected Securities Fund Class AA +2.16% Barclays Capital U.S. Treasury inflation-protected securities Index +4.35% PERFORMANCE FROM 21 OCTOBER 2015 TO 30 June 2016

U.S. Treasury Inflation-Protected Securities Fund Class l3 +4.26% PERFORMANCE FROM 2 DECEMBER 2015 TO 30 June 2016

U.S. Treasury Inflation-Protected Securities Fund Class AA Inc +3.74% Portfolio Review

The sub-fund’s duration positioning detracted from relative performance for the 12-month period. Throughout most of the period, the sub-fund’s duration (a measure of interest rate sensitivity) was slightly shorter than that of the benchmark, which meant that the sub-fund had less sensitivity to yield fluctuations than the benchmark did. As a result, when TIPS yields declined overall, the sub-fund did not benefit as much as the index.

However, the sub-fund was positioned to benefit from a flatter yield curve (that is, a narrower gap between short- and long-term TIPS yields). This positioning aided sub-fund performance as the TIPS yield curve flattened overall during the 12-month period.

The sub-fund held a small position (approximately 2% on average for the period) in non-TIPS, primarily commercial and residential mortgage-backed securities. The non-TIPS holdings added value during the period as commercial mortgage-backed securities and non-government-agency residential mortgage- backed securities outperformed the TIPS market for the 12 months.

Market Review

US Treasury inflation-protected securities (TIPS) posted positive returns for the 12 months ended 30 June 2016. After bottoming in early 2015, the inflation rate has been gradually rising. For the 12 months ended 31 May 2016 (the most recent data available), the consumer price index (CPI) increased by 1.0%, while the “core” CPI (which excludes often-volatile food and energy prices) increased by 2.2%. By comparison, the CPI was unchanged for the prior 12 months, while the core CPI increased by 1.7%. Declining energy prices were responsible for the difference between the change in the CPI and core CPI; elsewhere, several other CPI components – most notably housing and healthcare costs – rose by more than 3% year-over-year.

On the economic front, the US economy decelerated during the 12-month period. After growing at a robust 4% annual growth rate in the second quarter of 2015, the US economy slowed to a 2% annual growth rate in the third quarter and a 1.5% annual growth rate in the fourth quarter. Despite the slowdown, continued strength in employment growth led the Fed to raise its short-term interest rate target in late 2015. The December rate hike, which was the Fed’s first interest rate increase since 2006, lifted the federal funds rate from a range of 0%-0.25% to a range of 0.25%-0.50%.

Economic activity continued to moderate in the first half of 2016 as weak global growth and a stronger US dollar weighed on US exports. Even employment growth, which had been one of the stronger segments of the economy in recent years, began to slow toward the end of the 12-month period. Nonetheless, the unemployment rate finished the period at its lowest level since November 2007.

* The performance return of the fund is calculated in U.S. dollar terms and includes dividends re-invested; whereas the index (or indices) is calculated in U.S. dollar terms and on total return basis.

245 MANULIFE GLOBAL FUND U.S. TREASURY INFLATION-PROTECTED SECURITIES FUND

Other factors buffeting the fixed-income markets during the 12-month period included a slowdown in global economic growth, particularly in China and other emerging markets; continued geopolitical conflict in the Middle East and terrorist attacks around the globe; and the “Brexit” referendum, the UK’s vote in June 2016 to leave the EU.

The combination of gradually rising inflation and a flight to quality resulting from broader market volatility led to higher demand for TIPS, pushing their yields lower and prices higher. Longer-term TIPS yields fell the most as the 10-year TIPS yield fell from 0.47% to 0.05%, while the 30-year TIPS yield declined from 1.12% to 0.69%. Shorter-term TIPS yields experienced a more modest decline: the two-year TIPS yield edged down from -0.59% to -0.72%, while the five-year TIPS yield fell from -0.04% to -0.40%.

The 10-year “breakeven” inflation rate, which reflects the market’s inflation expectations for the next 10 years, narrowed meaningfully over the 12 months, declining from 1.90% to 1.42%

Outlook

Moderating US economic growth is likely to keep inflation from accelerating meaningfully in the coming months. Consequently, the sub-fund’s portfolio manager is maintaining the sub-fund’s position in non- TIPS.

The Fed held short-term interest rates steady in the first half of 2016, and the sub-fund’s portfolio manager expects the US central bank to remain on hold through the end of the year. Nonetheless, with Treasury bond yields near historically low levels, the PM expects interest rates to trend higher over time. This is why the sub-fund will be maintaining a slightly shorter duration compared with the benchmark.

Despite the generally benign economic and inflationary environment, the sub-fund’s portfolio manager believes the uncertainty surrounding the gradual process of Brexit will remain a source of volatility in the fixed-income markets going forward.

MANULIFE GLOBAL FUND 246 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

1 General

Manulife Global Fund (the “Company”) was incorporated on 7 July 1987 as an open-ended investment company and is organised as a Société d’ Investissement à Capital Variable (“SICAV”) under Part I of the Law of 17 December 2010 as amended, of the Grand Duchy of Luxembourg.

The Company maintains separate accounts for each sub-fund to which the proceeds of issue of shares and the income arising from the investment of those proceeds are credited and against which expenses are allocated and charged, as appropriate, on an equitable basis. Upon redemption, shareholders are entitled only to their proportion of the net assets, as reflected in the relevant Net Asset Value, held in the account relating to the sub-fund in which their class of shares is designated. Separate Statements of Operations, Net Assets and Changes in Net Assets have accordingly been prepared for each sub-fund.

As of 30 June 2016, the Company is comprised of 27 sub-funds:

American Growth Fund ASEAN Equity Fund* Asia Total Return Fund Asia Value Dividend Equity Fund Asian Equity Fund Asian Small Cap Equity Fund China Value Fund Dragon Growth Fund Emerging Eastern Europe Fund European Growth Fund Global Contrarian Fund Global Equity Fund* Global Property Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Japanese Growth Fund Latin America Equity Fund Russia Equity Fund Strategic Income Fund Taiwan Equity Fund Turkey Equity Fund U.S. Bond Fund U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation-Protected Securities Fund

Please refer to the prospectus of the Company for details on the availability of respective share classes in the relevant jurisdictions.

* Refer to note 10

247 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

2 Accounting policies

2.1 Presentation of Financial Statements

The financial statements are prepared in accordance with Luxembourg regulations relating to undertakings for collective investments.

2.2 Investments

Listed securities and securities dealt in on another regulated market are valued on the basis of their last available market price at the “Valuation Point” on the year end date. The prospectus defines the “Valuation Point” as 4:00 p.m. (Luxembourg time) on each Business Day (or such other time as may be otherwise determined by the Directors).

Non-listed securities and money market instruments listed or dealt on a regulated market but in respect of which the last sales price is not representative of the fair value, are valued on the basis of their probable sales prices as determined with prudence and in good faith by the Board of Directors upon the advice of the Investment Managers. Liquid assets are valued at their face value with interest accrued; in the case of short-term instruments (especially discount instruments) that have a maturity of less than 90 days, the value of the instrument based on the net acquisition cost, is gradually adjusted to the repurchase price thereof while the investment return calculated on the net acquisition cost is kept constant. In the event of material changes in market conditions, the valuation basis of the investment is adjusted to the new market yields.

In the event of it being impossible or incorrect to carry out a valuation in accordance with the above rules owing to particular circumstances, the Board of Directors is entitled to use other generally recognized valuation principles upon the advice of the Investment Managers, in order to reach a proper valuation of the Company’s total assets.

Units of underlying UCI and UCITS (target funds) are valued on the basis of their last available Net Asset Value per unit or share reduced by any applicable charges.

Realised gains and losses on sales of investments in securities are determined on the basis of average cost.

Any resulting gains or losses are recognized in the Statement of Changes in Net Assets under the heading “Net profits/(losses) realised on sale of investments and options”. The net change in unrealised appreciation/(depreciation) on investments and options is included in the Statement of Changes in Net Assets under the heading “Net change in unrealised appreciation/(depreciation) on investments and options”.

Brokerage charges are taken into account in calculating the cost of investments.

As approved by the pricing committee, the valuation of Renminbi (“RMB”) Bonds, denominated in Chinese Renminbi (“CNY”) and traded through Hong Kong or Singapore, is done at the Hong Kong delivered Chinese Renminbi (“CNH”) foreign exchange rate. All securities subject to this specific pricing process are indicated in the portfolios with a “**”.

2.3 Investment Income

Dividends are credited to income on the date upon which the relevant securities are first listed as “ex-dividend”, net of any irrecoverable withholding tax. Bond and deposit interest income is accrued on a daily basis.

2.4 Foreign currency transaction

Amounts included in the Statement of Operations in foreign currency are translated into the accounting currency of the respective sub-funds at rates of exchange prevailing on the date of the transaction. Resulting translation gains and losses are recognized in the Statement of Operations in the year in which they occur.

MANULIFE GLOBAL FUND 248 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

2 Accounting policies (continued)

2.4 Foreign currency transaction (continued)

The financial statements and accounting records of each sub-fund are expressed in the reference currency of the relevant sub-fund. Transactions in currencies other than the sub- funds’ currency are translated into the sub-funds’ currency based on the exchange rates in effect at the date of the transaction.

Assets and liabilities denominated in other currencies are translated at the rate of exchange prevailing at the balance sheet date. Any resulting gains or losses are recognized in the Statement of Changes in Net Assets under the heading “Net profits/(losses) realised on foreign currency”.

The main exchange rates used as of 30 June 2016 are:

1 USD = 14.918693 ARS 1 USD = 1.407261 NZD 1.344719 AUD 3.292951 PEN 3.210902 BRL 47.047753 PHP 1.298399 CAD 3.973599 PLN 0.974750 CHF 4.066644 RON 662.251656 CLP 64.254964 RUB 6.670135 CNY 8.485579 SEK 2923.976608 COP 1.347700 SGD 24.386080 CZK 35.139504 THB 6.692589 DKK 2.884396 TRY 0.899564 EUR 32.259105 TWD 0.744241 GBP 14.717570 ZAR 7.758915 HKD 3.852451 ILS 284.910025 HUF 13211.784912 IDR 67.494600 INR 102.784958 JPY 1151.848140 KRW 18.528469 MXN 4.031494 MYR 8.376332 NOK

249 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

2 Accounting policies (continued)

2.5 Futures contracts

Outstanding futures contracts are valued at the reporting date at the last available market price of the instruments. The net change in unrealised appreciation/(depreciation) on futures is included in the Statement of Changes in Net Assets under the heading “Net change in unrealised appreciation/(depreciation) on futures contracts”. All margin amounts are included in “Cash at bank”.

The realised gain/(loss) on futures contracts is disclosed in the Statement of Changes in Net Assets under the heading “Net profits/(losses) realised on futures contracts”.

2.6 Forward foreign exchange contracts

Outstanding forward foreign exchange contracts are valued at the reporting date at the last available market price of the contract. The unrealised appreciation/(depreciation) on forward foreign exchange contracts is included in the Statement of Net Assets under the headings “Unrealised appreciation on forward foreign exchange contracts” and “Unrealised depreciation on forward foreign exchange contracts”.

Any resulting gains or losses are recognized in the Statement of Changes in Net Assets under the heading “Net profits/(losses) realised on forward foreign exchange contracts”. The net change in unrealised appreciation/(depreciation) on forward foreign exchange contracts is included in the Statement of Changes in Net Assets under the heading “Net change in unrealised appreciation/(depreciation) on forward foreign exchange contracts”.

2.7 Consolidation

The Company incorporated a Cypriot subsidiary, GFM Holdings (Cyprus) Limited, on 30 August 1996 (on behalf of the Emerging Eastern Europe Fund and the Russia Equity Fund). The Cypriot subsidiary is wholly owned and makes investments according to the Company’s investment policy. The Company invests through the Cypriot subsidiary in order to minimize the tax costs of investing in Russia. The consolidated statements of the Emerging Eastern Europe Fund and the Russia Equity Fund include the assets and liabilities of the respective sub-fund held by the subsidiary and the gains and losses of the respective sub-fund incurred by the subsidiary.

2.8 Formation expenses

Formation expenses are amortized over five years commencing from the inception date of the relevant share classes of the relevant sub-funds.

2.9 Combined figures

The combined Statement of Net Assets, the combined Statement of Operations and the Combined Statement of Changes in Net Assets are expressed in United States Dollars.

For this purpose, the corresponding statements of each sub-fund have been translated into United States Dollars at the exchange rate prevailing at the balance sheet date.

MANULIFE GLOBAL FUND 250 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

3 Expenses

3.1 Management Fees

The General Adviser is entitled to receive management fees at the percentage specified below per annum on the net asset value of the relevant class of shares in the relevant sub-fund, accrued and calculated on each Business Day and payable monthly in arrears:

Class AA Class AA (HKD) Class Class S Class A Class AA (HKD) Inc AA Inc Class HA Class HC Class HI Class I Class I2 Class I3 Class J Class S Hedge Class T Sub-Fund Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Annual Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee Fee (as a (as a (as a (as a (as a % (as a % (as a % (as a % (as a % (as a % (as a % (as a % maximum maximum maximum maximum (as a % (as a % (as a % p.a. of p.a. of p.a. of p.a. of p.a. of p.a. of p.a. of p.a. of % p.a. % p.a. % p.a. % p.a. p.a. of p.a. of p.a. of the net the net the net the net the net the net the net the net of the of the of the of the the net the net the net asset asset asset asset asset asset asset asset net asset net asset net asset net asset asset asset asset value value value value value value value value value value value value value value value of the of the of the of the of the of the of the of the of the of the of the of the of the of the of the relevant relevant relevant relevant relevant relevant relevant relevant relevant relevant relevant relevant relevant relevant relevant Class) Class) Class) Class) Class) Class) Class) Class) Class) Class) Class) Class) Class) Class) Class)

Equity Funds: American Growth Fund 1.50% 1.75% 1.75% N/A N/A 2.00% 2.30% 1.60% 1.10% 0.90% ** N/A N/A N/A N/A ASEAN Equity Fund* N/A 1.75% N/A N/A N/A N/A N/A N/A 1.00% N/A ** N/A N/A N/A N/A Asia Value Dividend Equity Fund N/A 1.75% N/A N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Asian Equity Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A ** N/A N/A N/A N/A Asian Small Cap Equity Fund N/A 1.75% 1.75% N/A N/A 2.20% 2.50% 1.70% 1.10% 0.90% ** N/A N/A N/A N/A China Value Fund 1.50% 1.75% N/A N/A N/A 2.00% 2.30% 1.60% N/A N/A N/A N/A N/A N/A N/A Dragon Growth Fund 1.50% 1.75% 1.75% N/A N/A N/A N/A N/A N/A N/A ** N/A N/A N/A N/A Emerging Eastern Europe Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A European Growth Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A ** N/A N/A N/A N/A Global Contrarian Fund N/A 1.75% 1.75% N/A N/A 2.00% 2.30% 1.60% 1.10% 0.90% ** N/A 1.50% N/A N/A Global Equity Fund* 1.50% 1.75% N/A N/A N/A N/A N/A N/A N/A N/A ** N/A N/A N/A N/A Global Property Fund N/A 1.75% 1.75% N/A N/A N/A N/A N/A 1.10% N/A ** N/A N/A N/A N/A Global Resources Fund N/A 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A ** N/A N/A N/A N/A Greater China Opportunities Fund N/A 1.75% N/A N/A N/A N/A N/A N/A 1.10% N/A ** N/A N/A N/A N/A Healthcare Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A ** N/A N/A N/A N/A India Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A 0.90% ** N/A N/A N/A N/A Japanese Growth Fund 1.50% 1.75% N/A N/A N/A N/A N/A N/A N/A N/A ** N/A N/A N/A N/A Latin America Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Russia Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Taiwan Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Turkey Equity Fund N/A 1.75% N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A U.S. Small Cap Equity Fund N/A 1.75% N/A N/A N/A 2.00% 2.30% 1.60% 1.10% N/A ** N/A N/A N/A N/A

Bond Funds: Asia Total Return Fund N/A 1.25% 1.25% 1.25% 1.25% 1.50% 2.00% 1.10% 1.00% 0.60% ** 0.50% N/A 1.25% N/A Strategic Income Fund N/A 1.25% 1.25% 1.25% 1.25% 1.60% 2.10% 1.20% 1.10% 0.60% ** 1.75% N/A 1.25% N/A U.S. Bond Fund N/A 1.25% 1.25% 1.25% 1.25% 1.50% 2.00% 1.10% 1.10% N/A ** N/A N/A N/A N/A U.S. Special Opportunities Fund N/A 1.25% 1.25% 1.25% 1.25% N/A N/A N/A 1.10% 0.60% ** N/A N/A N/A 1.25% U.S. Treasury Inflation-Protected Securities Fund N/A 1.25% N/A N/A 1.25% N/A N/A N/A 1.10% 0.60% ** N/A N/A N/A N/A The annual management fees payable by the sub-funds may be increased to a maximum of 6% of the Net Asset Value of the relevant sub-fund by giving not less than three months’ prior notice of the proposed increase to the Custodian and to the Shareholders of the relevant sub-fund. Any increases beyond the permitted maximum rate of 6% as prescribed in the Articles of Incorporation will require the approval of the Shareholders of the relevant sub-fund(s) passed by extraordinary resolution. The annual management fees payable has not increased to a maximum of 6% of Net Asset Value for any sub-fund during the current year.

* Refer to note 10 ** Separately agreed with the relevant Manulife entity

251 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

3 Expenses (continued)

3.2 Performance Fee

In addition to the management fee, an annual performance fee may be paid in respect of each of the Classes A, AA and AA Inc Shares if the Net Asset Value per Share of the relevant Class at the end of any particular performance period (after taking into account the performance fee accrued but unpaid for the performance period) is in excess of the target Net Asset Value per Share for that Class (the “Excess Return”). Performance fees can be levied in respect of each of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares. Currently, no performance fees are levied in respect of each of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares. However, the right to do so in respect of each of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares on such fee rate and calculation methodology to be determined is reserved, if the Directors so determine in the future. In the event of the imposition of such performance fees on any of the Classes AA (AUD Hedged), AA (CAD Hedged), AA (CAD), AA (HKD), AA (AUD Hedged) Inc, AA (CAD Hedged) Inc, AA (HKD) Inc, HA, HC, HI, I, I2, I2 SGD Hedged, I3, S, S Hedged and T Shares, at least one month’s notice (or such shorter notice as agreed with the relevant Shareholders of the relevant Class(es)) would be given. No performance fees are payable in respect of Class J Shares. Performance fees in respect of the Class A, Class AA and Class AA Inc Shares may be payable, equivalent to a maximum of 20% of such Excess Return multiplied by the average number of Shares in the relevant Class in issue during the performance period by reference to which the fee is payable. The target Net Asset Value per Share in each Class for the end of any particular performance period will be either: (a) (applicable to Asia Total Return Fund (up to 16 June 2014) and Asia Value Dividend Equity Fund only) the higher of (i) the target Net Asset Value per Share for the immediately preceding performance period; and (ii) the Net Asset Value per Share as at the close of business on the last Business Day in the immediately preceding performance period (after taking into account the performance fee paid for that performance period) (the “Low Tide Mark”); or (b) (applicable to all other sub-funds) 110% (adjusted proportionally for any period of more or less than 12 months) of such Low Tide Mark (the “10% Hurdle Return”) (the ”Target Net Asset Value per Share”). The initial Target Net Asset Value per Share for a Class will be either: (a) (applicable to Asia Total Return Fund (up to 16 June 2014) only) its initial offering price per Share; or (b) (applicable to all other sub-funds) 110% (adjusted proportionally for any period of less than 12 months) of its initial offering price per Share. A performance fee rate of up to the maximum rate of 20% may be imposed. In the event of any increase of performance fee from the current rate up to the maximum rate of 20%, at least one month’s prior notice would be given to affected Shareholders. The actual performance fee payable by, and the Target Net Asset Value Per Share applicable to, each sub-fund is set out in the table below: Performance Fee (as a % of the Excess Return) Target Net Asset Class A Class AA Class AA Inc Class T Value per Share Asia Total Return Fund*,** N/A 10% N/A N/A Low Tide Mark Asia Value Dividend Equity Fund N/A 15% 15% N/A Low Tide Mark All other Sub-Funds*** 8% 8% N/A 8% 10% Hurdle Return * This fee is waived since inception ** Up to 16 June 2014 only *** Starting 17 June 2014 only applicable to China Value Fund, Emerging Eastern Europe Fund, Latin America Equity Fund, Russia Equity Fund and Turkey Equity Fund.

MANULIFE GLOBAL FUND 252 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

3 Expenses (continued)

3.2 Performance Fee (continued) All performance fees applicable to Class A, Class AA and Class T Shares (as applicable) of the following sub-funds of the Company (in respect of which any of Manulife Asset Management (Hong Kong) Limited, Manulife Asset Management (US) LLC and Manulife Asset Management (Europe) Limited (as the case may be) currently acts as Investment Manager) are no longer payable with effect from 16 June 2014.

Manulife Asset Management Manulife Asset Management Manulife Asset Management (Hong Kong) Limited (US) LLC (Europe) Limited

ASEAN Equity Fund* American Growth Fund European Growth Fund Asia Total Return Fund Global Contrarian Fund Asian Equity Fund Global Equity Fund* Asian Small Cap Equity Fund Global Property Fund Dragon Growth Fund Global Resources Fund Greater China Opportunities Fund Healthcare Fund India Equity Fund Strategic Income Fund Japanese Growth Fund U.S. Bond Fund Taiwan Equity Fund U.S. Small Cap Equity Fund U.S. Special Opportunities Fund U.S. Treasury Inflation-Protected Securities Fund No performance fees have accrued, or are payable, in respect of Class A, Class AA or Class T Shares of any of the above sub-funds for the current performance period. The performance fee payable by each sub-fund is accrued on each Business Day throughout the relevant performance period and is payable as soon as reasonably practicable after the end of such performance period. The accrual is made based on the Net Asset Value per Share on each Business Day. If it exceeds the Target Net Asset Value per Share for that Class, a performance fee accrual will be made. If not, no performance fee accrual will be made. On each Business Day, the accrual made on the previous Business Day will continue to be reversed and a new performance fee accrual will be calculated and made in accordance with the above. The standing policy of the Company is that a relevant sub-fund which is entitled to levy a performance fee does not perform equalisation or issue different series of shares for the purposes of determining the performance fee payable. The Company’s methodology for calculating the performance fee involves adjusting the issue and redemption price per share to make provision for accrual for the performance fee upon the issue and redemption of shares during the relevant performance period.

* Refer to note 10

253 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

3 Expenses (continued)

3.3 Administration and Custodian fees From 1 July 2015 to 30 June 2016, Citibank Europe plc, Luxembourg Branch received fees as Administrator and Custodian at annual rates as follows:

Administration fee: The Company pays the fees of the Administrator, Registrar, Listing Agent, Paying Agent and Transfer Agent at commercial rates agreed between these parties and the Company, in addition to reasonable out-of-pocket expenses properly incurred in the course of carrying out their duties. The maximum fee paid for these services by the Company will be 0.5% p.a. of its Net Asset Value (excluding reasonable out-of-pocket expenses). The actual fees charged are 4 basis points p.a. on Net Asset Value per sub-fund below first USD 250 million and 3 basis points p.a. on Net Asset Value per sub-fund above USD 250 million, with a minimum of USD 10,000 per sub-fund p.a.

Custodian fee: The fee paid by the Company for this service varies depending upon the markets in which the assets of the Company are invested and custodied. It typically ranges from 0.003% p.a. of the value of the assets of a sub-fund of the Company which are held in developed markets to 0.40% p.a. of the value of the assets of such sub-funds which are held in emerging markets (excluding transaction charges and reasonable disbursements and out-of-pocket expenses). Settlement charges are on a per transaction basis, which vary depending on the countries of which the securities are settled. It ranges from USD 6 per transaction for developed markets to USD 130 per transaction in emerging markets. Reasonable expenses properly incurred by the Custodian or by other banks and financial institutions to which safekeeping of assets of the Company is entrusted are additional to the Custodian’s fee and will be borne by the Company. The Custodian’s fee normally includes the custody fees and certain transaction charges of the other banks and financial institutions. 3.4 Initial, Redemption and Switching Charges Although an initial charge of up to 6% may be deducted from any subscription monies received from investors, no such initial charge is presently levied on Shareholders in respect of Class A, Class HC, Class HI, Class I, I3 and Class J Shares. An initial charge of up to 3.5% of the subscription amount is levied in respect of all applications for class S Hedged Shares. An initial charge of up to 5% of the subscription amount is levied in respect of all applications for Class AA, Class AA (AUD Hedged), Class AA (CAD Hedged), Class AA (CAD), Class AA (HKD), Class AA Inc, Class AA (AUD Hedged) Inc, Class AA (CAD Hedged) Inc, Class AA (HKD) Inc, Class HA, Class I2, Class I2 SGD Hedged, Class S and Class T Shares.

MANULIFE GLOBAL FUND 254 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

3 Expenses (continued)

3.4 Initial, Redemption and Switching Charges (continued) Applicants are charged a redemption charge of a maximum of 1% of the Redemption Price if they redeem their Class A Shares within the first two years of subscribing for the relevant Shares. However, the Company may (by giving not less than three months’ notice to the Shareholders and the Custodian) increase or (without having to give any prior notice) decrease or waive the redemption charge. In any case, the redemption charge does not exceed a maximum of 1% of the Redemption Price. No redemption charge is presently levied in respect of Class AA, Class AA (AUD Hedged), Class AA (CAD Hedged), Class AA (CAD), Class A (HKD), Class AA Inc, Class AA (AUD Hedged) Inc, Class AA (CAD Hedged) Inc, Class AA (HKD) Inc, Class I, Class I2, Class I2 SGD Hedged, I3, Class J, Class S, Class S Hedged, or Class T Shares. A switching charge of up to 1% of the total Redemption Price payable on the Shares being redeemed shall apply in respect of all conversion requests received by the Company or the Distributor unless otherwise agreed with the relevant Shareholders. The Distributor is entitled to retain initial, switching and redemption charges (if any) payable by Shareholders as described in the latest prospectus. 3.5 Brokerage No transactions were entered into by the Company that were effected through Manulife and no commissions were paid to Manulife for any transactions. 3.6 Cash commissions All cash commissions received by the Investment Managers, Sub-Investment Managers or investment advisers or any of their associated persons arising out of the sale and purchase of investments for the Company are credited to the account of the relevant sub-fund managed or advised by such Investment Manager, Sub-Investment Manager or investment advisers. The prospectus allows the Investment Managers, Sub-Investment Managers or investment advisers or any of their associated persons to receive and retain goods and services and other soft dollar benefits which are of demonstrable benefit to the Shareholders as may be permitted under relevant regulations from brokers and other persons through whom such investment transactions are carried out. These goods and services include, but are not limited to, qualifying research services, computer hardware and software obtained to enhance investment decision making and appropriate order execution services. In all cases where such goods and services and other soft dollar benefits are retained by any of the Investment Managers, Sub-Investment Managers or investment advisers or any of their associated persons, such person shall ensure that transaction execution is consistent with best execution standards and that any brokerage fee borne by the relevant sub-fund does not exceed customary institutional full service brokerage rates for such transactions. No soft commission arrangements were entered into in respect of the Company’s transactions with brokers, except that of Manulife Asset Management (US) LLC which received soft commissions consistent with the principles set out herein. Details of soft commission are:

Investment Manager(s)/ Sub-Investment For the year ended For the year ended Manager(s)/ 30-Jun-16 30-Jun-15 Investment Adviser(s) Name of the sub-funds USD USD

Manulife Asset American Growth Fund 7,827 17,095 Management (US) Global Contrarian Fund 390 1,270 LLC Global Property Fund – 182 Healthcare Fund 14,560 6,989 U.S. Small Cap Equity Fund 2,068 3,384

255 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

3 Expenses (continued)

3.7 Transaction costs For the year ended 30 June 2016 and year ended 30 June 2015, the Company incurred transaction costs related to purchase or sale of financial instruments (securities and derivatives) as follows. These charges consist of broker fees and stamp duty tax and are included in the cost of investments.

Sub-Fund Transaction costs in USD For the For the year ended year ended 30 June 2016 30 June 2015

Equity Funds: American Growth Fund 66,554 120,917 ASEAN Equity Fund* 12,669 – Asia Value Dividend Equity Fund 63,393 74,096 Asian Equity Fund 2,069,060 2,859,059 Asian Small Cap Equity Fund 6,399,239 8,229,666 China Value Fund 1,319,700 3,671,037 Dragon Growth Fund 451,014 595,593 Emerging Eastern Europe Fund 114,056 156,539 European Growth Fund 408,852 280,089 Global Contrarian Fund 13,997 23,476 Global Equity Fund* 170,282 6,626 Global Property Fund 8,158 10,065 Global Resources Fund 9,316 62,179 Greater China Opportunities Fund 48,738 99,091 Healthcare Fund 202,753 201,784 India Equity Fund 1,468,174 1,267,985 Japanese Growth Fund 28,126 33,350 Latin America Equity Fund 99,266 119,783 Russia Equity Fund 124,295 252,586 Taiwan Equity Fund 129,541 149,585 Turkey Equity Fund 33,670 81,260 U.S. Small Cap Equity Fund 61,599 62,036

Bond Funds: Asia Total Return Fund 1,304 7,309 Strategic Income Fund 12,464 12,836 U.S. Bond Fund 5 – U.S. Special Opportunities Fund 870 3,630 U.S. Treasury Inflation-Protected Securities Fund – –

* Refer to note 10

MANULIFE GLOBAL FUND 256 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

3 Expenses (continued)

3.8 Directors fees and expenses For the year ended 30 June 2016 and year ended 30 June 2015, the Company incurred Directors fees and expenses as follows:

Sub-Fund Amounts in USD For the year For the year ended ended 30 June 2016 30 June 2015 Directors Directors Expenses Expenses

Equity Funds: American Growth Fund 3,549 2,713 ASEAN Equity Fund* 78 – Asia Value Dividend Equity Fund 251 199 Asian Equity Fund 1,564 1,302 Asian Small Cap Equity Fund 5,409 5,193 China Value Fund 13,792 11,745 Dragon Growth Fund 2,272 1,362 Emerging Eastern Europe Fund 1,523 1,485 European Growth Fund 1,533 1,206 Global Contrarian Fund 311 297 Global Equity Fund* 764 206 Global Property Fund 245 206 Global Resources Fund 493 481 Greater China Opportunities Fund 216 161 Healthcare Fund 4,667 2,433 India Equity Fund 2,854 2,127 Japanese Growth Fund 612 445 Latin America Equity Fund 778 921 Russia Equity Fund 1,370 1,148 Taiwan Equity Fund 432 384 Turkey Equity Fund 498 541 U.S. Small Cap Equity Fund 400 340

Bond Funds: Asia Total Return Fund 1,339 1,140 Strategic Income Fund 794 962 U.S. Bond Fund 2,405 1,674 U.S. Special Opportunities Fund 1,182 1,240 U.S. Treasury Inflation-Protected Securities Fund 118 128

49,449 40,039

* Refer to note 10

257 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

4 Taxation 4.1 Luxembourg The Company is not liable for any Luxembourg tax on profits or income, and dividends paid by the Company are not liable to any withholding tax, subject to certain conditions. The Company is liable in Luxembourg to a tax of 0.05% per annum in respect of the aggregate Net Asset Value of the Class A, Class AA, Class AA (AUD Hedged), Class AA (CAD Hedged), Class AA (CAD), Class AA (HKD), Class AA Inc, Class AA (AUD Hedged) Inc, Class AA (CAD Hedged) Inc, Class AA (HKD) Inc, Class HA, Class HC, Class I2, Class I2 SGD Hedged, Class T, Class S and Class S Hedged Shares of all the sub-funds, such tax being payable quarterly on the basis of the value of the net assets of the Company at the end of the relevant calendar quarter. The Company is liable in Luxembourg to a tax of 0.01% per annum in respect of the aggregate Net Asset Value of the Class HI, Class I, I3 and Class J Shares of all the sub-funds, such tax being payable quarterly on the basis of the value of the net assets of the Company at the end of the relevant calendar quarter. No stamp duty or other tax is payable in Luxembourg on the issue of Shares. No Luxembourg capital gains tax is payable on the realised or unrealised capital appreciation of the assets of the Company. Foreign income, capital gains, dividends and interest may be subject to withholding taxes or other taxes imposed by the country of origin concerned and such taxes may not be recoverable by the Company or its Shareholders. Where there is a reasonable likelihood that a tax liability will be incurred, such tax payable is provided for in the Net Asset Value.

MANULIFE GLOBAL FUND 258 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

4 Taxation (continued)

4.2 United Kingdom

The Directors have sought and gained approval for various Classes of the Company as “reporting funds” for UK taxation purposes for periods from 1 July 2011 onwards and to manage the affairs of the Company such that the relevant ongoing obligations which registration carries continue to be met.

The full list of Classes which have sought and gained “reporting funds” status is detailed below:

Reporting Fund, Sub-Fund Class with effect from

American Growth Fund A 1-Jul-11 American Growth Fund AA 1-Jul-11 American Growth Fund I 16-Oct-12 Asia Total Return Fund AA Inc* 1-Jul-11 Asia Total Return Fund I 1-Jul-11 Asia Value Dividend Equity Fund AA 1-Jul-11 Asian Equity Fund A 1-Jul-11 Asian Equity Fund AA 1-Jul-11 Asian Equity Fund I 1-Jul-11 Asian Small Cap Equity Fund AA 1-Jul-11 Asian Small Cap Equity Fund I 1-Jul-11 China Value Fund A 1-Jul-11 China Value Fund AA 1-Jul-11 Dragon Growth Fund A 1-Jul-11 Dragon Growth Fund AA (HKD)* 1-Jul-11 Emerging Eastern Europe Fund A 1-Jul-11 Emerging Eastern Europe Fund AA 1-Jul-11 European Growth Fund A 1-Jul-11 European Growth Fund AA 1-Jul-11 European Growth Fund I 6-Feb-14 Global Contrarian Fund AA 1-Jul-11 Global Contrarian Fund I2 1-Jul-12 Global Property Fund AA 1-Jul-11 Global Resources Fund AA 1-Jul-11 Greater China Opportunities Fund I 1-Jul-11

* Previously Class AA

259 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

4 Taxation (continued) 4.2 United Kingdom (continued) Reporting Fund, Sub-Fund Class with effect from Healthcare Fund AA 1-Jul-11 India Equity Fund AA 1-Jul-11 Global Equity Fund* A 1-Jul-11 Global Equity Fund* AA 1-Jul-11 Japanese Growth Fund A 1-Jul-11 Japanese Growth Fund AA 1-Jul-11 Latin America Equity Fund AA 1-Jul-11 Russia Equity Fund AA 1-Jul-11 Strategic Income Fund AA 1-Jul-11 Strategic Income Fund I2 1-Jul-12 Taiwan Equity Fund AA 1-Jul-11 Turkey Equity Fund AA 1-Jul-11 U.S. Bond Fund AA 1-Jul-11 U.S. Bond Fund I 2-Jun-14 U.S. Small Cap Equity Fund AA 1-Jul-11 U.S. Special Opportunities Fund AA 1-Jul-11 U.S. Special Opportunities Fund I 2-Jun-14 U.S. Treasury Inflation Protected Securities Fund AA 1-Jul-11 4.3 India Section 2(14)(b) of the Income-tax Act, 1961 (“the Act”) of India Income Tax provides any security held by foreign institutional investor which has invested in such security in accordance with the regulations made under the Securities and Exchange Board of India Act, 1992 would be treated as capital asset. Hence, any income arising from transfer of such security by a Foreign Portfolio Investor (FPI) would be in the nature of capital gain and subject to capital gain tax. For the year ended 30 June 2016 and year ended 30 June 2015, the total capital gain tax paid by the following sub funds are as follows:

Capital Gain Tax in USD For the For the year ended year ended Sub-Fund 30 June 2016 30 June 2015

Asian Equity Fund 10,188 777,390 Asian Small Cap Equity Fund – 4,067,634 India Equity Fund 1,268,147 3,433,526

* Refer to note 10

MANULIFE GLOBAL FUND 260 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

5 Dividend policy After deduction of the fees and charges and other expenses attributable to each of the sub- funds, at least 85% of the available net investment income of each sub-fund will be distributed to Shareholders. The following dividends were distributed to Shareholders during the year ended 30 June 2016 and year ended 30 June 2015:

For the year ended For the year ended 30 June 2016 30 June 2015 Dividend Per Distribution Dividend Per Distribution Name of Sub-Funds Class Currency Share Date Share Date Annual Dividend American Growth Fund I3 USD 0.00100085 6-Nov-15 – – Asia Total Return Fund AA USD 0.02807904 6-Nov-15 – – Asia Total Return Fund AA Inc USD 0.00147150 6-Nov-15 0.00138382 7-Nov-14 Asia Total Return Fund AA (HKD) Inc HKD 0.00909758 6-Nov-15 – – Asia Total Return Fund HA USD 0.00614057 6-Nov-15 0.00431360 7-Nov-14 Asia Total Return Fund HC USD 0.00621484 6-Nov-15 0.00435711 7-Nov-14 Asia Total Return Fund HI USD 0.00609688 6-Nov-15 0.00425684 7-Nov-14 Asia Total Return Fund I USD 0.05070625 6-Nov-15 0.04685740 7-Nov-14 Asia Total Return Fund J USD 0.00274307 6-Nov-15 – – Asian Equity Fund A USD 0.01497817 6-Nov-15 0.01272451 7-Nov-14 Asian Equity Fund AA USD 0.00326390 6-Nov-15 – – Asian Equity Fund I USD 0.01111821 6-Nov-15 0.00390423 7-Nov-14 Asian Equity Fund I3 USD 0.00503144 6-Nov-15 – – Asian Small Cap Equity Fund AA USD 0.01670127 6-Nov-15 – – Asian Small Cap Equity Fund AA (HKD) HKD 0.02136068 6-Nov-15 – – Asian Small Cap Equity Fund HA USD 0.00293841 6-Nov-15 – – Asian Small Cap Equity Fund HI USD 0.01045154 6-Nov-15 0.00039827 7-Nov-14 Asian Small Cap Equity Fund I USD 0.02367273 6-Nov-15 0.00835954 7-Nov-14 China Value Fund A USD 0.06033490 6-Nov-15 0.06080180 7-Nov-14 China Value Fund AA USD 0.01206135 6-Nov-15 0.01304136 7-Nov-14 China Value Fund HA USD 0.00233427 6-Nov-15 0.00310000 7-Nov-14 China Value Fund HI USD – – 0.00260575 7-Nov-14 Dragon Growth Fund A USD 0.01978451 6-Nov-15 0.01246567 7-Nov-14 Dragon Growth Fund AA (HKD) HKD 0.06673915 6-Nov-15 0.05737282 7-Nov-14 Emerging Eastern Europe Fund A USD 0.06976510 6-Nov-15 0.02852832 7-Nov-14 Emerging Eastern Europe Fund AA USD 0.01205096 6-Nov-15 0.00686644 7-Nov-14 European Growth Fund A USD 0.08798502 6-Nov-15 0.12986735 7-Nov-14 European Growth Fund AA USD 0.00222230 6-Nov-15 0.00455698 7-Nov-14 European Growth Fund I USD 0.00790454 6-Nov-15 0.00717431 7-Nov-14 European Growth Fund I3 USD 0.00436956 6-Nov-15 – – Global Contrarian Fund AA USD 0.00149062 6-Nov-15 – – Global Contrarian Fund HI USD 0.00351599 6-Nov-15 0.00118000 7-Nov-14 Global Contrarian Fund I2 USD 0.02872000 6-Nov-15 – – Global Contrarian Fund I3 USD 0.00354710 6-Nov-15 – – Global Contrarian Fund S SGD 0.04146222 6-Nov-15 – – Global Equity Fund* A USD 0.00172171 6-Nov-15 0.00622398 7-Nov-14 Global Property Fund AA USD 0.00086016 6-Nov-15 0.00763657 7-Nov-14 Global Property Fund AA (HKD) HKD 0.01103424 6-Nov-15 – – Greater China Opportunities Fund AA USD 0.00583169 6-Nov-15 0.00000505 7-Nov-14 Greater China Opportunities Fund I USD 0.02645032 6-Nov-15 0.00698299 7-Nov-14 Greater China Opportunities Fund I3 USD 0.01161668 6-Nov-15 – – Healthcare Fund I3 USD 0.00079520 6-Nov-15 – – India Equity Fund I2 USD 0.00056285 6-Nov-15 – – Japanese Growth Fund A USD 0.00822770 6-Nov-15 0.02051919 7-Nov-14 Japanese Growth Fund AA USD 0.00025533 6-Nov-15 – – Japanese Growth Fund I3 USD 0.00025871 6-Nov-15 – – Latin America Equity Fund AA USD 0.00039142 6-Nov-15 0.01306060 7-Nov-14 Russia Equity Fund AA USD 0.01061863 6-Nov-15 – – Strategic Income Fund AA USD 0.03815586 6-Nov-15 0.04817205 7-Nov-14 Strategic Income Fund HA USD 0.00820511 6-Nov-15 0.00974872 7-Nov-14 Strategic Income Fund HC USD 0.00829213 6-Nov-15 0.00984789 7-Nov-14

* Refer to note 10

261 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

5 Dividend policy (continued) For the year ended For the year ended 30 June 2016 30 June 2015 Dividend Per Distribution Dividend Per Distribution Name of Sub-Funds Class Currency Share Date Share Date Strategic Income Fund HI USD 0.00815179 6-Nov-15 0.00969924 7-Nov-14 Strategic Income Fund I2 USD 0.03370554 6-Nov-15 0.09787103 7-Nov-14 Strategic Income Fund J USD – – 0.00568416 7-Nov-14 Strategic Income Fund S Hedged SGD 0.00510052 6-Nov-15 – – Taiwan Equity Fund AA USD 0.00766509 6-Nov-15 0.00337738 7-Nov-14 U.S. Bond Fund AA USD 0.03933201 6-Nov-15 0.04757393 7-Nov-14 U.S. Bond Fund AA Inc USD 0.00222800 6-Nov-15 – – U.S. Bond Fund AA (HKD) HKD 0.06901132 6-Nov-15 – – U.S. Bond Fund AA (HKD) Inc HKD 0.03171532 6-Nov-15 – – U.S. Bond Fund HA USD 0.00526681 6-Nov-15 0.00618386 7-Nov-14 U.S. Bond Fund HC USD 0.00532851 6-Nov-15 0.00624674 7-Nov-14 U.S. Bond Fund HI USD 0.00517960 6-Nov-15 0.00614767 7-Nov-14 U.S. Bond Fund I USD 0.01025702 6-Nov-15 0.00038946 7-Nov-14 U.S. Bond Fund I3 USD 0.00389930 6-Nov-15 – – U.S. Small Cap Equity Fund I3 USD 0.00231091 6-Nov-15 – – U.S. Special Opportunities Fund AA USD 0.05615305 6-Nov-15 0.06521242 7-Nov-14 U.S. Special Opportunities Fund AA Inc USD 0.00125083 6-Nov-15 – – U.S. Special Opportunities Fund I USD 0.05066252 6-Nov-15 0.00112288 7-Nov-14 U.S. Special Opportunities Fund T USD 0.01118044 6-Nov-15 0.00158357 7-Nov-14 U.S. Treasury Inflation-Protected Securities Fund AA USD – – 0.00080405 7-Nov-14 Monthly Dividend Asia Total Return Fund AA Inc USD 0.00237315 16-Jul-15 0.00253731 17-Jul-14 Asia Total Return Fund AA (HKD) Inc HKD 0.00708458 16-Jul-15 – – Asia Total Return Fund HA USD 0.00190832 16-Jul-15 0.00203138 17-Jul-14 Asia Total Return Fund HC USD 0.00150777 16-Jul-15 0.00165418 17-Jul-14 Asia Total Return Fund HI USD 0.00226182 16-Jul-15 0.00236129 17-Jul-14 Asia Total Return Fund AA Inc USD 0.00206334 14-Aug-15 0.00271388 22-Aug-14 Asia Total Return Fund AA (HKD) Inc HKD 0.09833360 14-Aug-15 – – Asia Total Return Fund HA USD 0.00154463 14-Aug-15 0.00189477 22-Aug-14 Asia Total Return Fund HC USD 0.00111402 14-Aug-15 0.00143478 22-Aug-14 Asia Total Return Fund HI USD 0.00192026 14-Aug-15 0.00230058 22-Aug-14 Asia Total Return Fund AA Inc USD 0.00200013 14-Sep-15 0.00388011 19-Sep-14 Asia Total Return Fund AA (HKD) Inc HKD 0.02138300 14-Sep-15 – – Asia Total Return Fund HA USD 0.00150861 14-Sep-15 0.00188499 19-Sep-14 Asia Total Return Fund HC USD 0.00112592 14-Sep-15 0.00148951 19-Sep-14 Asia Total Return Fund HI USD 0.00184341 14-Sep-15 0.00223193 19-Sep-14 Asia Total Return Fund AA Inc USD 0.00194997 15-Oct-15 0.00208810 24-Oct-14 Asia Total Return Fund AA (HKD) Inc HKD 0.02112965 15-Oct-15 – – Asia Total Return Fund HA USD 0.00146303 15-Oct-15 0.00146998 24-Oct-14 Asia Total Return Fund HC USD 0.00107477 15-Oct-15 0.00103620 24-Oct-14 Asia Total Return Fund HI USD 0.00180560 15-Oct-15 0.00184092 24-Oct-14 Asia Total Return Fund AA Inc USD 0.00222387 13-Nov-15 0.00221999 21-Nov-14 Asia Total Return Fund AA (HKD) Inc HKD 0.02409114 13-Nov-15 – – Asia Total Return Fund HA USD 0.00172191 13-Nov-15 0.00159938 21-Nov-14 Asia Total Return Fund HC USD 0.00132705 13-Nov-15 0.00115289 21-Nov-14 Asia Total Return Fund HI USD 0.00207250 13-Nov-15 0.00199231 21-Nov-14 Asia Total Return Fund AA Inc USD 0.00256004 14-Dec-15 0.00195936 19-Dec-14 Asia Total Return Fund AA (HKD) Inc HKD 0.02682479 14-Dec-15 – – Asia Total Return Fund HA USD 0.00200681 14-Dec-15 0.00145995 19-Dec-14 Asia Total Return Fund HC USD 0.00163235 14-Dec-15 0.00107177 19-Dec-14 Asia Total Return Fund HI USD 0.00234515 14-Dec-15 0.00180474 19-Dec-14 Asia Total Return Fund AA Inc USD 0.00248996 15-Jan-16 0.00255446 23-Jan-15 Asia Total Return Fund AA (HKD) Inc HKD 0.02661183 15-Jan-16 – – Asia Total Return Fund HA USD 0.00198907 15-Jan-16 0.00187442 23-Jan-15 Asia Total Return Fund HC USD 0.00161274 15-Jan-16 0.00148799 23-Jan-15 Asia Total Return Fund HI USD 0.00232070 15-Jan-16 0.00221933 23-Jan-15 Asia Total Return Fund AA Inc USD 0.00230825 18-Feb-16 0.00232103 27-Feb-15 Asia Total Return Fund AA (HKD) Inc HKD 0.02527534 18-Feb-16 – –

MANULIFE GLOBAL FUND 262 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

5 Dividend policy (continued) For the year ended For the year ended 30 June 2016 30 June 2015 Dividend Per Distribution Dividend Per Distribution Name of Sub-Funds Class Currency Share Date Share Date Asia Total Return Fund HA USD – – 0.00169134 27-Feb-15 Asia Total Return Fund HC USD – – 0.00128722 27-Feb-15 Asia Total Return Fund HI USD – – 0.00204515 27-Feb-15 Asia Total Return Fund AA Inc USD 0.00267809 14-Mar-16 0.00159890 13-Mar-15 Asia Total Return Fund AA (HKD) Inc HKD 0.02909758 14-Mar-16 – – Asia Total Return Fund HA USD – – 0.00113505 13-Mar-15 Asia Total Return Fund HC USD – – 0.00075299 13-Mar-15 Asia Total Return Fund HI USD – – 0.00147145 13-Mar-15 Asia Total Return Fund AA Inc USD 0.00230621 15-Apr-16 0.00209374 16-Apr-15 Asia Total Return Fund AA (HKD) Inc HKD 0.02679950 15-Apr-16 0.01508967 16-Apr-15 Asia Total Return Fund HA USD – – 0.00153420 16-Apr-15 Asia Total Return Fund HC USD – – 0.00111523 16-Apr-15 Asia Total Return Fund HI USD – – 0.00189808 16-Apr-15 Asia Total Return Fund AA Inc USD 0.00184829 18-May-16 0.00261645 18-May-15 Asia Total Return Fund AA (HKD) Inc HKD 0.02052881 18-May-16 0.02715174 18-May-15 Asia Total Return Fund HA USD – – 0.00207048 18-May-15 Asia Total Return Fund HC USD – – 0.00168195 18-May-15 Asia Total Return Fund HI USD – – 0.00240837 18-May-15 Asia Total Return Fund AA Inc USD 0.00253698 14-Jun-16 0.00240209 15-Jun-15 Asia Total Return Fund AA (HKD) Inc HKD 0.02650152 14-Jun-16 0.02486339 15-Jun-15 Asia Total Return Fund HA USD – – 0.00190656 15-Jun-15 Asia Total Return Fund HC USD – – 0.00155116 15-Jun-15 Asia Total Return Fund HI USD – – 0.00220439 15-Jun-15 Asia Value Dividend Equity Fund AA Inc USD 0.00340000 16-Jul-15 – – Asia Value Dividend Equity Fund AA Inc USD 0.00339999 14-Aug-15 – – Asia Value Dividend Equity Fund AA Inc USD 0.00339999 14-Sep-15 – – Asia Value Dividend Equity Fund AA Inc USD 0.00340000 15-Oct-15 – – Asia Value Dividend Equity Fund AA Inc USD 0.00338889 13-Nov-15 – – Asia Value Dividend Equity Fund AA Inc USD 0.00341485 14-Dec-15 – – Asia Value Dividend Equity Fund AA Inc USD 0.00339999 15-Jan-16 0.00016518 23-Jan-15 Asia Value Dividend Equity Fund AA Inc USD 0.00339999 18-Feb-16 – – Asia Value Dividend Equity Fund AA Inc USD 0.00339999 14-Mar-16 – – Asia Value Dividend Equity Fund AA Inc USD 0.00340000 15-Apr-16 0.00337200 16-Apr-15 Asia Value Dividend Equity Fund AA Inc USD 0.00340000 18-May-16 0.00325565 18-May-15 Asia Value Dividend Equity Fund AA Inc USD 0.00339999 14-Jun-16 0.00334722 15-Jun-15 Strategic Income Fund HA USD 0.00121797 16-Jul-15 0.00186629 17-Jul-14 Strategic Income Fund HC USD 0.00081294 16-Jul-15 0.00148465 17-Jul-14 Strategic Income Fund HI USD 0.00146027 16-Jul-15 0.00220506 17-Jul-14 Strategic Income Fund S Hedged SGD 0.00181132 16-Jul-15 0.00350000 17-Jul-14 Strategic Income Fund HA USD 0.00142321 14-Aug-15 0.00167444 22-Aug-14 Strategic Income Fund HC USD 0.00098649 14-Aug-15 0.00120803 22-Aug-14 Strategic Income Fund HI USD 0.00180368 14-Aug-15 0.00208242 22-Aug-14 Strategic Income Fund S Hedged SGD 0.00218266 14-Aug-15 0.00350000 22-Aug-14 Strategic Income Fund HA USD 0.00192754 14-Sep-15 0.00178951 19-Sep-14 Strategic Income Fund HC USD 0.00153248 14-Sep-15 0.00139133 19-Sep-14 Strategic Income Fund HI USD 0.00227221 14-Sep-15 0.00213945 19-Sep-14 Strategic Income Fund S Hedged SGD 0.00274238 14-Sep-15 0.00228960 19-Sep-14 Strategic Income Fund HA USD 0.00172809 15-Oct-15 0.00169984 24-Oct-14 Strategic Income Fund HC USD 0.00131676 15-Oct-15 0.00126320 24-Oct-14 Strategic Income Fund HI USD 0.00208890 15-Oct-15 0.00208089 24-Oct-14 Strategic Income Fund S Hedged SGD 0.00234097 15-Oct-15 0.00229292 24-Oct-14 Strategic Income Fund HA USD 0.00159279 13-Nov-15 0.00166882 21-Nov-14 Strategic Income Fund HC USD 0.00118411 13-Nov-15 0.00122142 21-Nov-14 Strategic Income Fund HI USD 0.00195211 13-Nov-15 0.00206164 21-Nov-14 Strategic Income Fund S Hedged SGD 0.00226668 13-Nov-15 0.00234379 21-Nov-14 Strategic Income Fund HA USD 0.00191118 14-Dec-15 0.00162189 19-Dec-14 Strategic Income Fund HC USD 0.00152003 14-Dec-15 0.00123280 19-Dec-14 Strategic Income Fund HI USD 0.00225325 14-Dec-15 0.00196345 19-Dec-14

263 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

5 Dividend policy (continued) For the year ended For the year ended 30 June 2016 30 June 2015 Dividend Per Distribution Dividend Per Distribution Name of Sub-Funds Class Currency Share Date Share Date Strategic Income Fund S Hedged SGD 0.00244630 14-Dec-15 0.00223656 19-Dec-14 Strategic Income Fund HA USD 0.00151777 15-Jan-16 0.00184795 23-Jan-15 Strategic Income Fund HC USD 0.00113114 15-Jan-16 0.00146081 23-Jan-15 Strategic Income Fund HI USD 0.00185218 15-Jan-16 0.00219068 23-Jan-15 Strategic Income Fund S Hedged SGD 0.00211461 15-Jan-16 0.00238526 23-Jan-15 Strategic Income Fund HA USD – – 0.00135543 27-Feb-15 Strategic Income Fund HC USD – – 0.00094567 27-Feb-15 Strategic Income Fund HI USD – – 0.00171202 27-Feb-15 Strategic Income Fund S Hedged SGD 0.00180956 18-Feb-16 0.00196035 27-Feb-15 Strategic Income Fund HA USD – – 0.00146008 13-Mar-15 Strategic Income Fund HC USD – – 0.00106921 13-Mar-15 Strategic Income Fund HI USD – – 0.00180425 13-Mar-15 Strategic Income Fund S Hedged SGD 0.00188385 14-Mar-16 0.00201553 13-Mar-15 Strategic Income Fund HA USD – – 0.00135972 16-Apr-15 Strategic Income Fund HC USD – – 0.00093026 16-Apr-15 Strategic Income Fund HI USD – – 0.00173874 16-Apr-15 Strategic Income Fund S Hedged SGD 0.00231345 15-Apr-16 0.00191491 16-Apr-15 Strategic Income Fund HA USD – – 0.00156766 18-May-15 Strategic Income Fund HC USD – – 0.00117684 18-May-15 Strategic Income Fund HI USD – – 0.00191360 18-May-15 Strategic Income Fund S Hedged SGD 0.00204424 18-May-16 0.00209753 18-May-15 Strategic Income Fund HA USD – – 0.00179417 15-Jun-15 Strategic Income Fund HC USD – – 0.00144654 15-Jun-15 Strategic Income Fund HI USD – – 0.00210988 15-Jun-15 Strategic Income Fund S Hedged SGD 0.00185540 14-Jun-16 0.00236104 15-Jun-15 U.S. Bond Fund AA Inc USD 0.00187758 16-Jul-15 – – U.S. Bond Fund AA (HKD) Inc HKD 0.02346841 16-Jul-15 – – U.S. Bond Fund HA USD 0.00170055 16-Jul-15 0.00212200 17-Jul-14 U.S. Bond Fund HC USD 0.00129942 16-Jul-15 0.00174740 17-Jul-14 U.S. Bond Fund HI USD 0.00205901 16-Jul-15 0.00245220 17-Jul-14 U.S. Bond Fund AA Inc USD 0.00581020 14-Aug-15 – – U.S. Bond Fund AA (HKD) Inc HKD 0.04013900 14-Aug-15 – – U.S. Bond Fund HA USD 0.00158948 14-Aug-15 0.00184491 22-Aug-14 U.S. Bond Fund HC USD 0.00115539 14-Aug-15 0.00138995 22-Aug-14 U.S. Bond Fund HI USD 0.00196927 14-Aug-15 0.00223999 22-Aug-14 U.S. Bond Fund AA Inc USD 0.00197941 14-Sep-15 0.00253874 19-Sep-14 U.S. Bond Fund AA (HKD) Inc HKD 0.01995272 14-Sep-15 0.03350576 19-Sep-14 U.S. Bond Fund HA USD 0.00143144 14-Sep-15 0.00190650 19-Sep-14 U.S. Bond Fund HC USD 0.00103647 14-Sep-15 0.00151537 19-Sep-14 U.S. Bond Fund HI USD 0.00177341 14-Sep-15 0.00225587 19-Sep-14 U.S. Bond Fund AA Inc USD 0.00188812 15-Oct-15 0.00206677 24-Oct-14 U.S. Bond Fund AA (HKD) Inc HKD 0.01879432 15-Oct-15 0.02156957 24-Oct-14 U.S. Bond Fund HA USD 0.00129705 15-Oct-15 0.00188590 24-Oct-14 U.S. Bond Fund HC USD 0.00088603 15-Oct-15 0.00145894 24-Oct-14 U.S. Bond Fund HI USD 0.00165410 15-Oct-15 0.00226397 24-Oct-14 U.S. Bond Fund AA Inc USD 0.00188937 13-Nov-15 0.00011630 21-Nov-14 U.S. Bond Fund AA (HKD) Inc HKD 0.01221878 13-Nov-15 0.02201129 21-Nov-14 U.S. Bond Fund HA USD 0.00132445 13-Nov-15 0.00176332 21-Nov-14 U.S. Bond Fund HC USD 0.00091461 13-Nov-15 0.00131555 21-Nov-14 U.S. Bond Fund HI USD 0.00168269 13-Nov-15 0.00215516 21-Nov-14 U.S. Bond Fund AA Inc USD 0.00062545 14-Dec-15 0.00138007 19-Dec-14

MANULIFE GLOBAL FUND 264 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

5 Dividend policy (continued) For the year ended For the year ended 30 June 2016 30 June 2015 Dividend Per Distribution Dividend Per Distribution Name of Sub-Funds Class Currency Share Date Share Date U.S. Bond Fund AA (HKD) Inc HKD 0.01881555 14-Dec-15 0.01393878 19-Dec-14 U.S. Bond Fund HA USD 0.00143527 14-Dec-15 0.00170413 19-Dec-14 U.S. Bond Fund HC USD 0.00104832 14-Dec-15 0.00131412 19-Dec-14 U.S. Bond Fund HI USD 0.00177286 14-Dec-15 0.00204331 19-Dec-14 U.S. Bond Fund AA Inc USD 0.00468105 15-Jan-16 0.00272920 23-Jan-15 U.S. Bond Fund AA (HKD) Inc HKD 0.01845524 15-Jan-16 0.02445025 23-Jan-15 U.S. Bond Fund HA USD 0.00128431 15-Jan-16 0.00215296 23-Jan-15 U.S. Bond Fund HC USD 0.00090078 15-Jan-16 0.00176615 23-Jan-15 U.S. Bond Fund HI USD 0.00162102 15-Jan-16 0.00245461 23-Jan-15 U.S. Bond Fund AA Inc USD 0.00127004 18-Feb-16 0.00190694 27-Feb-15 U.S. Bond Fund AA (HKD) Inc HKD 0.01944883 18-Feb-16 0.02339872 27-Feb-15 U.S. Bond Fund HA USD – – 0.00193150 27-Feb-15 U.S. Bond Fund HC USD – – 0.00152102 27-Feb-15 U.S. Bond Fund HI USD – – 0.00229124 27-Feb-15 U.S. Bond Fund AA Inc USD 0.00205058 14-Mar-16 0.00067126 13-Mar-15 U.S. Bond Fund AA (HKD) Inc HKD 0.02048343 14-Mar-16 0.02020730 13-Mar-15 U.S. Bond Fund HA USD – – 0.00162061 13-Mar-15 U.S. Bond Fund HC USD – – 0.00123144 13-Mar-15 U.S. Bond Fund HI USD – – 0.00196606 13-Mar-15 U.S. Bond Fund AA Inc USD 0.00192425 15-Apr-16 0.00243049 16-Apr-15 U.S. Bond Fund AA (HKD) Inc HKD 0.01992691 15-Apr-16 0.02449042 16-Apr-15 U.S. Bond Fund HA USD – – 0.00200400 16-Apr-15 U.S. Bond Fund HC USD – – 0.00157679 16-Apr-15 U.S. Bond Fund HI USD – – 0.00238265 16-Apr-15 U.S. Bond Fund AA Inc USD 0.00295704 18-May-16 0.00624332 18-May-15 U.S. Bond Fund AA (HKD) Inc HKD 0.01966352 18-May-16 0.02199604 18-May-15 U.S. Bond Fund HA USD – – 0.00179564 18-May-15 U.S. Bond Fund HC USD – – 0.00140513 18-May-15 U.S. Bond Fund HI USD – – 0.00214124 18-May-15 U.S. Bond Fund AA Inc USD 0.00226190 14-Jun-16 0.00298459 15-Jun-15 U.S. Bond Fund AA (HKD) Inc HKD 0.02259879 14-Jun-16 0.02893306 15-Jun-15 U.S. Bond Fund HA USD – – 0.00191920 15-Jun-15 U.S. Bond Fund HC USD – – 0.00157043 15-Jun-15 U.S. Bond Fund HI USD – – 0.00223044 15-Jun-15 U.S. Special Opportunities Fund AA Inc USD 0.00326626 16-Jul-15 – – U.S. Special Opportunities Fund T USD 0.00350796 16-Jul-15 0.00565370 17-Jul-14 U.S. Special Opportunities Fund AA Inc USD 0.00323900 14-Aug-15 – – U.S. Special Opportunities Fund T USD 0.00355641 14-Aug-15 0.00374851 22-Aug-14 U.S. Special Opportunities Fund AA Inc USD 0.00340064 14-Sep-15 – – U.S. Special Opportunities Fund T USD 0.00369997 14-Sep-15 0.00523523 19-Sep-14 U.S. Special Opportunities Fund AA Inc USD 0.00354327 15-Oct-15 0.00480072 24-Oct-14 U.S. Special Opportunities Fund T USD 0.00396486 15-Oct-15 0.00745503 24-Oct-14 U.S. Special Opportunities Fund AA Inc USD 0.00360405 13-Nov-15 0.00381547 21-Nov-14 U.S. Special Opportunities Fund T USD 0.00401766 13-Nov-15 0.00560317 21-Nov-14 U.S. Special Opportunities Fund AA Inc USD 0.00383025 14-Dec-15 0.00343061 19-Dec-14 U.S. Special Opportunities Fund T USD 0.00424661 14-Dec-15 0.00746419 19-Dec-14 U.S. Special Opportunities Fund AA Inc USD 0.00346779 15-Jan-16 0.00437721 23-Jan-15 U.S. Special Opportunities Fund T USD 0.00392133 15-Jan-16 0.02860740 23-Jan-15 U.S. Special Opportunities Fund AA Inc USD 0.00335534 18-Feb-16 0.00385630 27-Feb-15 U.S. Special Opportunities Fund T USD 0.00398214 18-Feb-16 0.01092220 27-Feb-15

265 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

5 Dividend policy (continued) For the year ended For the year ended 30 June 2016 30 June 2015 Dividend Per Distribution Dividend Per Distribution Name of Sub-Funds Class Currency Share Date Share Date U.S. Special Opportunities Fund AA Inc USD 0.00376611 14-Mar-16 0.00342972 13-Mar-15 U.S. Special Opportunities Fund T USD 0.00407584 14-Mar-16 0.00401535 13-Mar-15 U.S. Special Opportunities Fund AA Inc USD 0.00353159 15-Apr-16 0.00395360 16-Apr-15 U.S. Special Opportunities Fund T USD 0.00383675 15-Apr-16 0.00469468 16-Apr-15 U.S. Special Opportunities Fund AA Inc USD 0.00355882 18-May-16 0.00364788 18-May-15 U.S. Special Opportunities Fund T USD 0.00372528 18-May-16 0.00421724 18-May-15 U.S. Special Opportunities Fund AA Inc USD 0.00330080 14-Jun-16 0.00341965 15-Jun-15 U.S. Special Opportunities Fund T USD 0.00341567 14-Jun-16 0.00367505 15-Jun-15

Quarterly Dividend Asia Total Return Fund J USD 0.00946687 16-Jul-15 – – Asia Total Return Fund J USD 0.00829136 15-Oct-15 – – Asia Total Return Fund J USD 0.00945952 15-Jan-16 – – Asia Total Return Fund J USD 0.00969818 15-Apr-16 0.01550905 16-Apr-15 Strategic Income Fund J USD – – 0.01180081 17-Jul-14 Strategic Income Fund J USD – – 0.00964133 24-Oct-14 Strategic Income Fund J USD – – 0.01164365 23-Jan-15 Strategic Income Fund J USD – – 0.00942796 16-Apr-15 6 Changes in the Portfolio of Investments

The detail of all transactions on portfolio of investments over the year is available from Citibank Europe plc, Luxembourg Branch, the Company’s administrative agent, upon request.

7 Financial instruments

Forward foreign exchange contracts

The Company has entered into forward foreign exchange contracts as hedges against fluctuations in foreign exchange rates.

As at 30 June 2016, the Company has outstanding forward foreign exchange contracts as follows:

Asia Total Return Fund

Appreciation/ Purchased Maturity (Depreciation) Amount Currency Sold Amount Currency Counterparty Date (USD)

3,259,417 USD 13,356,600 MYR Australia New Zealand Bank 29-Jul-16 (84,007) 1,650,000 USD 1,934,460,000 KRW HSBC New York 29-Jul-16 (29,459) 1,650,000 USD 1,884,382,500 KRW Australia New Zealand Bank 29-Jul-16 14,017 1,884,382,500 KRW 1,621,644 USD Australia New Zealand Bank 29-Jul-16 14,339 4,179,999 USD 55,757,000,000 IDR Royal Bank of 29-Jul-16 (38,591) Canada Toronto 2,253,078 USD 3,200,000 NZD Royal Bank of 29-Jul-16 (17,374) Canada Toronto 1,979,196 USD 2,680,000 AUD Australia New Zealand Bank 29-Jul-16 (11,596) 3,996,856 USD 5,426,572 SGD Australia New Zealand Bank 29-Jul-16 (28,669) 891,616 USD 1,048,960,000 KRW Australia New Zealand Bank 29-Jul-16 (19,069) 1,650,000 USD 1,900,800,000 KRW Australia New Zealand Bank 5-Aug-16 (46)

Total net unrealised appreciation on forward foreign exchange contract (200,455)

MANULIFE GLOBAL FUND 266 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

7 Financial instruments (continued)

Forward foreign exchange contracts (continued)

Asian Small Cap Equity Fund

Appreciation/ (Depreciation) Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD)

2,077,579 SGD 1,536,856 USD Citibank London 1-Jul-16 4,718 4,159,249 SGD 3,076,738 USD Citibank London 1-Jul-16 9,444 149 USD 201 SGD Citibank London 5-Jul-16 – 197,501 USD 1,532,766 HKD Citibank London 5-Jul-16 (63)

Total net unrealised appreciation on forward foreign exchange contract 14,099

Global Contrarian Fund

Appreciation/ (Depreciation) Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD)

1,117,038 USD 975,000 EUR Goldman Sachs 3-Aug-16 31,754 481,780 USD 52,224,960 JPY HSBC New York 3-Aug-16 (26,856) 90,405 USD 80,000 EUR Royal Bank of 3-Aug-16 1,358 Canada Toronto

Total net unrealised appreciation on forward foreign exchange contract 6,256

Global Equity Fund*

Appreciation/ (Depreciation) Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD)

53,166,812 JPY 518,084 USD BBH New York 1-Jul-16 (821) 1,356,072 USD 1,200,000 EUR Royal Bank of 3-Aug-16 20,363 Canada Toronto 3,011,125 USD 326,406,000 JPY HSBC New York 3-Aug-16 (167,852) 6,369,981 USD 5,560,000 EUR Goldman Sachs 3-Aug-16 181,086

Total net unrealised appreciation on forward foreign exchange contract 32,776

Global Resources Fund

Depreciation Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD)

165,204 USD 214,655 CAD Citibank London 5-Jul-16 (121) 82,635 USD 107,371 CAD Citibank London 5-Jul-16 (61)

Total net unrealised appreciation on forward foreign exchange contract (182)

* Refer to note 10

267 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

7 Financial instruments (continued)

Forward foreign exchange contracts (continued)

Strategic Income Fund

Appreciation/ (Depreciation) Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD) 2,967,062 USD 4,042,318 AUD Australia New Zealand Bank 3-Aug-16 (35,165) 1,025,548 USD 8,337,709 SEK Citibank New York 3-Aug-16 41,428 2,747,733 USD 3,764,875 SGD HSBC New York 3-Aug-16 (45,038) 1,029,374 USD 18,713,512 MXN State Street Corp 3-Aug-16 22,774 3,361,898 USD 4,958,552 NZD State Street Corp 3-Aug-16 (155,567) 975,631 USD 7,999,504 NOK Goldman Sachs 3-Aug-16 20,667 395,760 USD 274,005 GBP HSBC New York 3-Aug-16 27,487 679,944 USD 920,000 AUD Morgan Stanley 3-Aug-16 (3,333) Capital Services New York 17,459 SGD 12,945 USD Citibank London 29-Jul-16 7 28,341 USD 38,177 SGD Citibank London 29-Jul-16 20 38,177 SGD 28,357 USD Citibank London 5-Jul-16 (29) 2,771 USD 3,757 SGD Citibank London 29-Jul-16 (16) 3,757 SGD 2,773 USD Citibank London 5-Jul-16 15 38,705 SGD 28,573 USD Citibank London 29-Jul-16 138 20,274,143 SGD 14,966,311 USD Citibank London 29-Jul-16 73,373 2,667,532 MXN 140,000 USD State Street Corp 3-Aug-16 3,497 26,484 SGD 19,555 USD Citibank London 29-Jul-16 91 14,931 SGD 11,068 USD Citibank London 29-Jul-16 8 11,075 USD 14,931 SGD Citibank London 1-Jul-16 (4) 101,381 USD 136,769 SGD Citibank London 29-Jul-16 (76) 2,661,274 MXN 140,000 USD State Street Corp 3-Aug-16 3,161 1,838 SGD 1,374 USD Citibank London 29-Jul-16 (10) 25,806 USD 35,000 SGD HSBC New York 3-Aug-16 (156) 313,762 USD 425,000 AUD State Street Corp 3-Aug-16 (1,883) 103,199 USD 140,000 SGD HSBC New York 3-Aug-16 (652) 570,981 CAD 450,000 USD Royal Bank of 3-Aug-16 (10,191) Canada Toronto 707,158 CAD 555,000 USD Toronto-Dominion 3-Aug-16 (10,298) Bank 147,980 SGD 2,000,000 MXN Goldman Sachs 3-Aug-16 2,190 148,685 SGD 2,000,000 MXN Goldman Sachs 3-Aug-16 2,714 129,037 SGD 1,742,000 MXN Goldman Sachs 3-Aug-16 2,016 445,572 USD 573,005 CAD Toronto-Dominion 3-Aug-16 4,202 Bank 554,342 USD 712,330 CAD Royal Bank of 3-Aug-16 5,655 Canada Toronto

Total net unrealised depreciation on forward foreign exchange contract (52,975)

As at 30 June 2015, the Company has outstanding forward foreign exchange contracts as follows:

Asia Total Return Fund

Appreciation Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD) 3,195,915 USD 4,150,000 AUD HSBC New York 31-Jul-15 956 2,198,720 USD 3,200,000 NZD HSBC New York 31-Jul-15 36,284 3,977,991 USD 5,350,000 SGD HSBC New York 31-Jul-15 5,330

Total net unrealised appreciation on forward foreign exchange contract 42,570

MANULIFE GLOBAL FUND 268 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

7 Financial instruments (continued)

Forward foreign exchange contracts (continued)

Asian Small Cap Equity Fund

Depreciation Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD)

2,029,031 USD 15,732,499 HKD Citibank London 2-Jul-15 (398) 3,727,765 USD 28,903,970 HKD Citibank London 2-Jul-15 (732) 1,377,141 USD 10,677,941 HKD Citibank London 2-Jul-15 (270) 2,058,471 USD 15,960,763 HKD Citibank London 2-Jul-15 (404) 1,413,676 USD 10,961,364 HKD Citibank London 2-Jul-15 (296) 1,874,556 USD 14,534,933 HKD Citibank London 2-Jul-15 (392) 3,291,864 USD 25,524,453 HKD Citibank London 2-Jul-15 (689) 1,680,407 USD 13,029,536 HKD Citibank London 2-Jul-15 (352) 1,434,299 USD 11,121,266 HKD Citibank London 2-Jul-15 (300) 2,546,620 USD 19,745,983 HKD Citibank London 2-Jul-15 (533) 3,665,952 USD 28,425,059 HKD Citibank London 2-Jul-15 (767) 2,942,690 USD 22,817,033 HKD Citibank London 2-Jul-15 (616) 1,119,582 USD 1,453,521 AUD Citibank London 1-Jul-15 (1,518) 1,110,184 USD 1,441,320 AUD Citibank London 1-Jul-15 (1,506)

Total net unrealised depreciation on forward foreign exchange contract* (8,773)

Strategic Income Fund

Appreciation/ (Depreciation) Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD)

11,762,763 USD 14,198,772 CAD Toronto-Dominion Bank 30-Jul-15 350,028 2,119,020 USD 1,395,313 GBP HSBC New York 30-Jul-15 (78,489) 1,156,278 USD 1,539,652 NZD Toronto-Dominion Bank 30-Jul-15 116,030 1,691,328 USD 14,086,223 SEK Citibank New York 30-Jul-15 (17,954) 1,703,915 USD 12,914,820 NOK Jaron London Goldman Sachs 30-Jul-15 59,282 1,003,831 USD 1,339,513 SGD Bank of Montreal 30-Jul-15 9,159 167,679 CAD 185,000 NZD JP Morgan Chase New York 30-Jul-15 9,775 425,000 EUR 313,994 GBP JP Morgan Chase New York 30-Jul-15 (18,423) 5,487,211 USD 6,932,674 AUD Australia New Zealand Bank 30-Jul-15 149,947 276,983 GBP 370,000 EUR HSBC New York 30-Jul-15 21,733 650,000 GBP 1,318,467 SGD HSBC New York 30-Jul-15 44,668 425,000 GBP 648,179 USD Deutsche Bank AG London 30-Jul-15 21,158 265,000 USD 321,275 CAD Royal Bank of Canada 30-Jul-15 6,764 Toronto 536,312 CAD 443,486 USD Bank of Nova Scotia 30-Jul-15 (12,402) 578,871 CAD 650,000 NZD Royal Bank of Canada 30-Jul-15 26,063 Toronto 234,504 CAD 265,000 NZD US Bancorp Investments 30-Jul-15 9,419 1,795,376 CAD 2,020,000 NZD Royal Bank of Canada 30-Jul-15 78,114 Toronto 860,749 CAD 970,000 NZD Australia New Zealand Bank 30-Jul-15 36,392 180,000 EUR 201,663 USD State Street Corp 30-Jul-15 (23) 2,649,897 USD 2,370,000 EUR Citibank New York 30-Jul-15 (5,022) 1,391,163 SEK 167,610 USD State Street Corp 30-Jul-15 1,201 264,125 NZD 192,019 USD State Street Corp 30-Jul-15 (13,510) 497,334 AUD 391,031 USD State Street Corp 30-Jul-15 (8,129) 895,107 CAD 718,875 USD State Street Corp 30-Jul-15 607 600,000 CAD 484,790 USD Bank of Montreal 30-Jul-15 (2,513) 300,000 EUR 328,245 USD Bank of Montreal 30-Jul-15 7,821 854,572 NOK 113,052 USD State Street Corp 30-Jul-15 (4,224)

* Represents foreign exchange spot contract

269 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

7 Financial instruments (continued)

Forward foreign exchange contracts (continued)

Strategic Income Fund (continued)

Appreciation/ (Depreciation) Purchased Amount Currency Sold Amount Currency Counterparty Maturity Date (USD)

1,481,523 NOK 188,706 USD Standard Chartered Bank 30-Jul-15 (37) New York 721,444 CAD 579,194 USD Standard Chartered Bank 30-Jul-15 698 New York 973,246 AUD 741,467 USD Standard Chartered Bank 30-Jul-15 7,844 New York 779,877 NZD 555,569 USD Standard Chartered Bank 30-Jul-15 (28,489) New York 58,319 GBP 89,192 USD Standard Chartered Bank 30-Jul-15 2,655 New York 281,755 USD 255,000 EUR Deutsche Bank AG London 30-Jul-15 (3,900) 343,234 CAD 275,000 USD Bank of Montreal 30-Jul-15 890 1,137,107 CAD 1,295,000 NZD Canadian Imperial Bank of 30-Jul-15 38,883 Commerce 150,000 EUR 168,720 USD Standard Chartered Bank 30-Jul-15 (687) New York 400,000 SGD 296,630 USD Standard Chartered Bank 30-Jul-15 397 New York 250,000 CAD 202,749 USD Standard Chartered Bank 30-Jul-15 (1,801) New York 695,000 NZD 484,554 USD Toronto-Dominion Bank 30-Jul-15 (14,838) 350,000 SEK 42,584 USD Deutsche Bank AG London 30-Jul-15 (113) 625,000 NOK 79,565 USD Deutsche Bank AG London 30-Jul-15 27 429,796 AUD 331,630 USD Toronto-Dominion Bank 30-Jul-15 (726) 140,000 USD 172,781 CAD Bank of Montreal 30-Jul-15 1,120 350,000 NZD 243,667 USD Australia New Zealand Bank 30-Jul-15 (7,119) 171,333 USD 245,463 NZD Bank of Montreal 30-Jul-15 5,452 164,219 USD 236,627 NZD Australia New Zealand Bank 30-Jul-15 4,307 150,054 USD 218,419 NZD Toronto-Dominion Bank 30-Jul-15 2,442 1,456 SGD 1,092 USD Citibank London 31-Jul-15 (10) 5,084 USD 6,838 SGD Citibank London 1-Jul-15 3 6,838 SGD 5,082 USD Citibank London 31-Jul-15 (4) 120,068 USD 161,638 SGD Citibank London 31-Jul-15 43 33,731,195 SGD 25,081,193 USD Citibank London 31-Jul-15 (33,959) 16,154 USD 21,750 SGD Citibank London 31-Jul-15 4 2,174 USD 2,920 SGD Citibank London 2-Jul-15 4 2,920 SGD 2,173 USD Citibank London 31-Jul-15 (5) 8,828 SGD 6,572 USD Citibank London 1-Jul-15 (13) 6,571 USD 8,828 SGD Citibank London 31-Jul-15 16 770,000 CAD 835,601 SGD Standard Chartered Bank 30-Jul-15 (1,569) New York 45,572 USD 61,613 SGD Citibank London 31-Jul-15 (180) 2,309 USD 3,113 SGD Citibank London 3-Jul-15 (3) 3,113 SGD 2,308 USD Citibank London 31-Jul-15 3 227,513 SGD 168,791 USD Citibank London 2-Jul-15 246 168,645 USD 227,513 SGD Citibank London 31-Jul-15 (296) 13,349 USD 18,000 SGD Citibank London 31-Jul-15 (17) 5,291 USD 7,144 SGD Citibank London 6-Jul-15 (17) 7,144 SGD 5,289 USD Citibank London 31-Jul-15 15 14,792 SGD 10,955 USD Citibank London 3-Jul-15 35 10,945 USD 14,792 SGD Citibank London 31-Jul-15 (38)

Total net unrealised appreciation on forward foreign exchange contract 758,735

MANULIFE GLOBAL FUND 270 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

7 Financial instruments (continued)

Financial future contracts

As at 30 June 2016, the Company has outstanding financial futures contracts as follows:

Asia Total Return Fund

Local Market Unrealised Short Trade Type of Commitment (in Price (in Trade Appreciation Maturity Date quantity Contract Counterparty Currency collateral Trade currency) currency) (USD)

21-Sep-16 (50) 10 Year US Treasury Chicago Board of USD Cash 6,653,125 133 (189,063) Note Future (CBT) Trade (CBOT) 30-Sep-16 (52) 5 Year US Treasury Chicago Board of USD Cash 6,348,469 122 (117,276) Note Future (CBT) Trade (CBOT)

Total net unrealised depreciation on financial future contract (306,339)

The amount of collateral against futures contract for the Asia Total Return Fund amounted to USD 114,300 (counterparty: UBS).

As at 30 June 2015, the Company has outstanding financial futures contracts as follows:

Asia Total Return Fund

Local Market Unrealised Maturity Short Trade Type of Commitment (in Price (in Trade Appreciation Date quantity Contract Counterparty Currency collateral Trade currency) currency) (USD)

21-Sep-15 (20) 10 Year US Treasury Chicago Board of USD Cash 2,524,063 126 22,188 Note Future (CBT) Trade (CBOT)

Total net unrealised appreciation on financial future contract 22,188

The amount of collateral against futures contract for the Asia Total Return Fund amounted to USD 29,700 (counterparty: UBS).

271 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

7 Financial instruments (continued)

Options

As at 30 June 2016, the Company has no outstanding option. The Company may purchase and write (sell) options.

The risk associated with purchasing an option is that the Company pays a premium whether or not the option is exercised. Additionally, the Company bears the risk of loss of the premium and any change in market value should the counterparty not perform under the contract. Put and call options purchased are accounted for in the same manner as portfolio securities. The cost of securities acquired through the exercise of call options are decreased by the premiums paid.

When the sub-fund writes an option, the premium received by the sub-fund is recorded as a liability and is subsequently adjusted to the current market value of the option written. In writing covered options, the sub-fund bears market risk of an unfavourable change in the price of the security underlying the written option. Exercise of an option written by the sub-fund could result in the sub-fund selling or buying a security at a price different from the current market value. Losses from written market index options may be unlimited.

Premiums received from writing options which expire unexercised are recorded by the sub-fund on the expiration date as realised gains from options transactions. The difference between the premium and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realised gain, or if the premium is less than the amount paid for the closing purchase transaction, as a realised loss. If a written call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether the sub-fund has realised a gain or a loss. If a written put option is exercised, the premium reduces the cost basis of the security purchased by the sub-fund.

MANULIFE GLOBAL FUND 272 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

8 Global Exposure

The following sections indicate whether the UCITS global exposure is managed under a commitment approach or an absolute Value at Risk (absolute VaR) approach.

For sub-funds managed under a VaR approach, additional information is provided on the VaR model, the regulatory VaR limit usage and the level of leverage reached1.

The following table sets out the relative approaches for the global exposure calculations of each sub-fund:

Name of Sub-Funds Global Exposure Calculation Equity Funds:

American Growth Fund Commitment Approach2 ASEAN Equity Fund Commitment Approach Asia Value Dividend Equity Fund Commitment Approach Asian Equity Fund Commitment Approach Asian Small Cap Equity Fund Commitment Approach China Value Fund Commitment Approach Dragon Growth Fund Commitment Approach Emerging Eastern Europe Fund Commitment Approach European Growth Fund Commitment Approach Global Contrarian Fund Commitment Approach Global Equity Fund Commitment Approach Global Property Fund Commitment Approach Global Resources Fund Commitment Approach Greater China Opportunities Fund Commitment Approach Healthcare Fund Commitment Approach India Equity Fund Commitment Approach Japanese Growth Fund Commitment Approach Latin America Equity Fund Commitment Approach Russia Equity Fund Commitment Approach Taiwan Equity Fund Commitment Approach Turkey Equity Fund Commitment Approach U.S. Small Cap Equity Fund Commitment Approach

Bond Funds: Asia Total Return Fund Commitment Approach Strategic Income Fund Absolute VaR Approach3 U.S. Bond Fund Commitment Approach U.S. Special Opportunities Fund Commitment Approach U.S. Treasury Inflation-Protected Securities Fund Commitment Approach

1 In line with CSSF circular 11/512, the numerical information observation year cover the period from 1 July 2015 to 30 June 2016. 2 The Commitment Approach is used for the sub-funds with low derivative usage or funds which limit their derivatives commitment to 100% or less of their Net Asset Value. 3 The Absolute VaR Approach is used for the sub-funds managed with an absolute return target and/or absolute volatility limit.

273 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

8 Global Exposure (continued)

Information on the VaR Limit Usage & Level of Leverage

The level of leverage is an indication of the derivative usage and of any leverage generated by the reinvestment of cash received as collateral when using efficient portfolio management techniques.

Strategic Income Fund is the only sub-fund using Absolute VaR Approach.

VaR limit utilization:

• Lowest 1 Day VaR: -0.61%

• Highest 1 Day VaR: -0.35%

• Average 1 Day VaR utilization limit: -0.43%

Leverage level utilization (Sum of notionals):

• Highest Leverage level: 133.5%

• Average Leverage level: 81.3%

Type of model: Barclays Point, a Fixed Income Risk Management Analytics tool.

• Unilateral confidence interval of 99%

• Holding period equivalent to 1 day

• Effective observation year from 1 July 2015 to 30 June 2016.

9 Related Party Disclosures

All transactions with related parties were entered into in the ordinary course of business and under normal commercial terms.

For the year ended 30 June 2016, the main related parties of the Company are the following:

• Manulife Asset Management International Holdings Limited in its capacities as the General Adviser and Distributor;

• The Investment Managers and Sub-Investment Managers;

• GFM Holdings (Cyprus) Limited a wholly-owned subsidiary incorporated in Cyprus for which Emerging Eastern Europe Fund and Russia Equity Fund may invest in the Russian market through.

MANULIFE GLOBAL FUND 274 NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

9 Related Party Disclosures (continued)

The General Adviser and Distributor, the Investment Managers and the Sub-Investment Managers may be members of the Manulife Group. The transactions with Manulife Group are the following:

– Management fees and performance fees charged by the General Adviser (please refer to Note 3.1 and 3.2);

– On-going fees paid by Manulife Asset Management (Hong Kong) Limited and later reimbursed by the Company for USD 18,167;

– Subscriptions and redemption of units in the sub-funds from seed capital, insurance schemes and feeder funds owned by Manulife Group.

In order to enable GFM Holdings (Cyprus) Limited to seek to achieve the investment objective of the Emerging Eastern Europe Fund and Russia Equity Fund, Manulife Global Fund engages in lending to GFM Holdings (Cyprus) Limited through an unsecured interest bearing, non recourse, multi currency loan facility.

There are no existing or proposed service contracts between any of the Directors and the Company. The Directors are entitled to such remuneration as may be voted to them by the Company in general meetings.

10 Important events

With effect from 10 July 2015, Mr Gianni Fiacco has been appointed as non-resident Conducting Person of the Company and as Director of the Company in place of Mrs Donna Cotter.

The sub-fund International Growth Fund has been renamed Global Equity Fund with its Investment Manager, Manulife Asset Management (Europe) Limited, replaced by Manulife Asset Management (US) LLC as the new Investment Manager, with effect from 1 October 2015.

With effect from 1 October 2015,the Board has decided to amend the investment policies of the Asia Value Dividend Equity Fund, Asian Equity Fund, Asian Small Cap Equity Fund, China Value Fund, Dragon Growth Fund and Greater China Opportunities Fund to reflect that each such Sub- Fund may invest directly in certain China A-Shares listed on the Shanghai Stock Exchange in Mainland China via the Shanghai – Hong Kong Stock Connect Scheme.

With effect from 1 October 2015, Schroder Investment Management (Hong Kong) Limited has been removed as Sub-Investment Manager of the Taiwan Equity Fund. Manulife Asset Management (Taiwan) Co., Limited has been appointed as the non-discretionary Investment Advisor of the Investment Manager in respect of the sub-fund.

The sub-fund ASEAN Equity Fund has been launched on 2 October 2015.

275 MANULIFE GLOBAL FUND NOTES TO THE FINANCIAL STATEMENTS For the year ended 30 June 2016

11 Subsequent events

The following dividends in respect of the current year were distributed to Shareholders after the year ended 30 June 2016:

Dividend Distribution Name of Sub-Funds Class Currency Per Share Date

Monthly Dividend Asia Total Return Fund AA Inc USD 0.00400000 15-Jul-16 Asia Total Return Fund AA (HKD) Inc HKD 0.04000000 15-Jul-16 Asia Value Dividend Equity Fund AA Inc USD 0.00340000 15-Jul-16 Strategic Income Fund S Hedged SGD 0.00185063 15-Jul-16 U.S. Bond Fund AA Inc USD 0.00191311 15-Jul-16 U.S. Bond Fund AA (HKD) Inc HKD 0.01989099 15-Jul-16 U.S. Special Opportunities Fund AA Inc USD 0.00337547 15-Jul-16 U.S. Special Opportunities Fund T USD 0.00371335 15-Jul-16

Quarterly Dividend Asia Total Return Fund J USD 0.00902900 15-Jul-16

MANULIFE GLOBAL FUND 276 INFORMATION FOR SHAREHOLDERS

GENERAL INFORMATION

Authorised Status

The Company qualifies as an undertaking for collective investment in transferable securities (“UCITS”) under Part I of the Law of 17 December 2010 of the Grand Duchy of Luxembourg, as amended.

Dividend Payment

When a dividend is declared at an Annual General Meeting:

– registered Shareholders who have requested that dividends of any sub-fund be re-invested automatically in further shares of the sub-fund will receive an appropriate number of additional shares. Such shares will be issued on the dealing day following the date of payment of the dividend. Shareholders should note that dividend re-investment represents a distribution of income and should be recorded as such on the Shareholders tax return;

– other registered Shareholders will be sent a cheque at the date of payment for the appropriate amount.

277 MANULIFE GLOBAL FUND