Annual Report December 31, 2018

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POOLED & INDEXED FUNDS POOLED & INDEXED FUNDS ANNUAL REPORT Table of Contents

Independent Auditor’s Report 1 Manulife Asset Management Bond Fund 33

Manulife Asset Management Canadian Equity Fund 3 Manulife Asset Management Long Term Bond Fund 40

Manulife Canadian Equity Index Fund (Manulife Asset Manulife Canadian Bond Index Fund (Manulife Asset Management) 5 Management) 45

Manulife Capped Canadian Equity Fund (Manulife Asset Manulife Asset Management Real Return Bond Fund 65 Management) 10 Manulife Asset Management Diversified Fund 67 Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) 12 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) 75 Manulife Asset Management Canadian Small-Cap Equity Fund 17 Manulife Money Market Fund (Manulife Asset Management) 81 Manulife Equity Tri-Plan Fund (Manulife Asset Management) 20 Manulife Canadian Pooled Real Estate Fund 83

Manulife US Equity Index Fund (Manulife Asset Manulife Canadian Mortgage Fund 88 Management) 23 Notes to Financial Statements 93 Manulife SLI US Equity Non-Registered Fund 30 INDEPENDENT AUDITOR’S REPORT

To the Contractholders of Individual Variable Insurance Contracts of the following Segregated Funds of The Manufacturers Life Insurance Company:

Manulife Asset Management Canadian Equity Fund Manulife Canadian Equity Index Fund (Manulife Asset Management) Manulife Capped Canadian Equity Fund (Manulife Asset Management) Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) Manulife Asset Management Canadian Small-Cap Equity Fund Manulife Equity Tri-Plan Fund (Manulife Asset Management) Manulife US Equity Index Fund (Manulife Asset Management) Manulife SLI US Equity Non-Registered Fund Manulife Asset Management Bond Fund Manulife Asset Management Long Term Bond Fund Manulife Canadian Bond Index Fund (Manulife Asset Management) Manulife Asset Management Real Return Bond Fund Manulife Asset Management Diversified Fund Manulife Diversified Tri-Plan Fund (Manulife Asset Management) Manulife Money Market Fund (Manulife Asset Management) Manulife Canadian Pooled Real Estate Fund Manulife Canadian Mortgage Fund (collectively, the “Funds”)

Opinion We have audited the financial statements of the Funds, which comprise the statements of financial position as at December 31, 2018 and 2017, and the statements of comprehensive income, statements of changes in net assets attributable to contractholders and statements of cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies. In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Funds as at December 31, 2018 and 2017, and their financial performance and their cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRSs).

Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Funds in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with IFRSs, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Funds’ ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Funds or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Funds’ financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with Canadian generally accepted auditing standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian generally accepted auditing standards, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit 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 Funds’ internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. • Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Funds’ ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Funds to cease to continue as a going concern. • Evaluate the overall presentation, structure, and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Waterloo, Canada April 5, 2019 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT CANADIAN EQUITY FUND MANULIFE ASSET MANAGEMENT CANADIAN EQUITY FUND

STATEMENTS OF COMPREHENSIVE INCOME Cash flows from operating activities Increase (decrease) in net assets attributable to For the years ended December 31 2018 2017 contractholders (26,129) 45,396 ($ in thousands except for per unit amounts) Adjustments for: Change in unrealized foreign exchange gain (loss) Income on currency (8) 6 Interest for allocation purposes 55 35 Realized gain (loss) on sales of investments (31,919) (47,860) Dividend income 10,877 10,613 Change in unrealized appreciation (depreciation) in Foreign exchange gain (loss) on income 8 (14) the value of investments 68,916 12,772 Foreign exchange gain (loss) on currency 9 (6) Purchases of investments (889,061) (637,421) Income from securities lending 29 23 Proceeds from disposition of investments 919,319 684,090 Other income (loss) 189 1 Realized gain (loss) on sales of investments 31,919 47,860 Interest, dividends and other receivables (231) (299) Change in unrealized appreciation (depreciation) in Accrued expenses and other liabilities (2) (3) the value of investments (68,916) (12,772) Net cash provided by (used in) operating (25,830) 45,740 activities 40,885 56,681 Expenses Cash flows from financing activities Administration fees 137 146 Proceeds from sale of units 59,949 66,461 Transaction costs 162 198 Payments for units redeemed (101,220) (122,646) 299 344 Net cash provided by (used in) financing Increase (decrease) in net assets attributable activities (41,271) (56,185) to contractholders (26,129) 45,396 Change in unrealized foreign exchange gain (loss) Increase (decrease) in net assets attributable to contractholders per unit on currency 8 (6) Group pension units (96.72) 146.24 Net increase (decrease) in cash (386) 496 Cash (bank overdraft) beginning of year 483 (7) Cash (bank overdraft) end of year 105 483 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 55 35 Dividends received, net of foreign withholding taxes 10,646 10,314

The accompanying notes are an integral part of the financial statements.

3 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT CANADIAN EQUITY FUND MANULIFE ASSET MANAGEMENT CANADIAN EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) Information Technology 9.6% 153,923 CGI Group, Inc., Class A 7,317 12,853 EQUITIES 98.5% 11,452 Constellation Software, Inc. 10,275 10,007 Canada 98.5% 266,378 Open Text Corp. 8,878 11,854 Energy 15.1% 527,871 Canadian Natural Resources Ltd. 17,339 17,388 26,470 34,714 258,339 Enbridge, Inc. 12,845 10,956 Communication Services 9.6% 115,697 Parkland Fuel Corp. 3,297 4,089 390,499 BCE, Inc. 20,755 21,060 89,337 PrairieSky Royalty Ltd. 2,038 1,579 77,336 Cogeco Communications, Inc. 5,366 5,087 460,693 Suncor Energy, Inc. 17,815 17,566 291,569 Quebecor, Inc., Class B 5,903 8,380 625,320 Whitecap Resources, Inc. 4,648 2,720 32,024 34,527 57,982 54,298 Real Estate 0.8% Materials 9.7% 127,759 Altus Group Ltd. 3,505 3,024 98,304 Agnico Eagle Mines Ltd. 5,670 5,417 274,183 CCL Industries, Inc., Class B 13,940 13,726 319,481 354,994 42,999 First Quantum Minerals Ltd. 699 475 SHORT-TERM INVESTMENTS 1.2% 35,816 Franco-Nevada Corp. 2,927 3,429 4,180 Merit Trust, 247,519 Goldcorp, Inc. 6,200 3,309 1.95%, Jan 02, 2019 4,180 4,179 313,706 Lundin Mining Corp. 1,798 1,769 Investments 323,661 359,173 69,735 Nutrien Ltd. 3,505 4,471 75,520 Teck Resources Ltd. 2,252 2,219 Transaction costs (92) 36,991 34,815 Total investments 323,569 359,173 Industrials 10.8% Other assets less liabilities 0.3% 1,093 187,952 CAE, Inc. 2,937 4,716 Net assets attributable to 74,392 Canadian National Railway Co. 2,246 7,522 contractholders 100.0% 360,266 53,838 Canadian Pacific Railway Ltd. 11,364 13,042 141,221 Morneau Shepell, Inc. 3,836 3,536 CONCENTRATION RISK 56,996 Toromont Industries Ltd. 1,797 3,092 The following table summarizes the Fund’s concentration risk. 67,709 Waste Connections, Inc. 6,859 6,861 % of net assets attributable to 29,039 38,769 contractholders Consumer Discretionary 4.8% Portfolio by category December 31, 2018 December 31, 2017 202,501 Dollarama, Inc. 6,275 6,575 Equities 82,624 Magna International, Inc. 3,640 5,120 Canada 78,406 Restaurant Brands International, Inc. 5,040 5,592 Energy 15.1 19.1 14,955 17,287 Materials 9.7 9.1 Industrials 10.8 10.7 Consumer Staples 5.3% Consumer Discretionary 4.8 9.8 124,783 Empire Co., Ltd., Class A 3,299 3,598 Consumer Staples 5.3 4.6 193,181 Loblaw Cos., Ltd. 9,768 11,805 Financials 32.8 33.6 96,335 Saputo, Inc. 4,007 3,775 Information Technology 9.6 7.5 Communication Services 9.6 2.8 17,074 19,178 Real Estate 0.8 1.3 Financials 32.8% Short-Term Investments 1.2 1.2 249,822 Brookfield Asset Management, Inc., Class A 10,386 13,071 Other assets less liabilities 0.3 0.3 145,693 Canadian Imperial Bank of Commerce 15,861 14,814 100.0 100.0 108,213 Intact Financial Corp. 9,398 10,734 154,037 Royal Bank of Canada 10,911 14,393 260,112 Sun Life Financial, Inc. 11,272 11,780 310,882 The Bank of Nova Scotia 21,408 21,155 425,974 The Toronto-Dominion Bank 19,017 28,907 49,875 TMX Group Ltd. 3,188 3,528 101,441 118,382

The accompanying notes are an integral part of the financial statements.

4 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 379,513 502,820 beginning of year 493,268 506,411 Cash 200 267 Increase (decrease) in net assets attributable to Margin deposited on derivatives 1,601 539 contractholders (35,585) 40,383 Subscriptions receivable 195 395 Security transactions Interest, dividends and other receivables 1,176 1,194 Proceeds from units issued 92,859 131,434 Derivative assets 1 86 Redemption of units (168,570) (184,960) 382,686 505,301 Total security transactions (75,711) (53,526) Liabilities Net assets attributable to contractholders - end of Current liabilities year 381,972 493,268 Redemptions payable 444 - Payable on investments purchased - 12,020 Accrued expenses and other liabilities 11 13 STATEMENTS OF CASH FLOWS Derivative liabilities 259 - 714 12,033 For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Net assets attributable to contractholders 381,972 493,268 Net assets attributable to contractholders per unit Cash flows from operating activities Group pension units 42.39 46.49 Increase (decrease) in net assets attributable to contractholders (35,585) 40,383 Adjustments for: STATEMENTS OF COMPREHENSIVE INCOME Change in unrealized foreign exchange gain (loss) on currency (2) 1 For the years ended December 31 2018 2017 Realized gain (loss) on sales of investments (15,124) (16,996) ($ in thousands except for per unit amounts) Realized gain (loss) on derivatives (31) (721) Change in unrealized appreciation (depreciation) in Income the value of investments 63,740 (10,311) Interest for allocation purposes 340 359 Change in unrealized appreciation (depreciation) in Dividend income 12,709 11,947 the value of derivatives 344 (112) Foreign exchange gain (loss) on income 9 (12) Purchases of investments (1,681,370) (1,225,947) Foreign exchange gain (loss) on currency 4 (1) Proceeds from disposition of investments 1,744,072 1,267,394 Income from securities lending 277 170 Other income (loss) 224 - Margin on derivatives (1,062) 444 Realized gain (loss) on sales of investments 15,124 16,996 Interest, dividends and other receivables 18 90 Realized gain (loss) on derivatives 31 721 Accrued expenses and other liabilities (2) 9 Change in unrealized appreciation (depreciation) in Net cash provided by (used in) operating the value of investments (63,740) 10,311 activities 74,998 54,234 Change in unrealized appreciation (depreciation) in Cash flows from financing activities the value of derivatives (344) 112 Proceeds from sale of units 93,059 131,039 (35,366) 40,603 Payments for units redeemed (168,126) (185,041) Expenses Net cash provided by (used in) financing Administration fees 152 151 activities (75,067) (54,002) Interest expense & bank charges 1 - Foreign withholding taxes 22 1 Change in unrealized foreign exchange gain (loss) Transaction costs 44 68 on currency 2 (1) 219 220 Net increase (decrease) in cash (69) 232 Cash (bank overdraft) beginning of year 267 36 Increase (decrease) in net assets attributable to contractholders (35,585) 40,383 Cash (bank overdraft) end of year 200 267 Increase (decrease) in net assets attributable to contractholders per unit Supplemental information on cash flows from operating activities: Group pension units (3.61) 3.91 Interest received, net of foreign withholding taxes 340 358 Dividends received, net of foreign withholding taxes 12,727 12,035 Interest paid 1 -

The accompanying notes are an integral part of the financial statements.

5 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) 32,574 Detour Gold Corp. 514 376 29,507 Eldorado Gold Corp. 1,338 118 EQUITIES 97.5% 31,308 First Majestic Silver Corp. 359 251 Canada 96.1% 128,099 First Quantum Minerals Ltd. 2,192 1,414 Energy 17.3% 29,715 Fortuna Silver Mines, Inc. 205 149 65,761 ARC Resources Ltd. 1,563 533 34,629 Franco-Nevada Corp. 1,828 3,315 102,948 Baytex Energy Corp. 1,794 248 161,571 Goldcorp, Inc. 4,939 2,160 49,410 Birchcliff Energy Ltd. 387 150 48,548 HudBay Minerals, Inc. 486 314 73,544 Cameco Corp. 1,547 1,138 86,695 IAMGOLD Corp. 754 434 224,106 Canadian Natural Resources Ltd. 7,544 7,382 12,129 Interfor Corp. 201 175 189,497 Cenovus Energy, Inc. 4,667 1,819 10,391 Intertape Polymer Group, Inc. 163 176 45,601 CES Energy Solutions Corp. 273 144 99,526 Ivanhoe Mines Ltd. 203 236 14,907 Computer Modelling Group Ltd. 180 91 232,310 Kinross Gold Corp. 2,061 1,022 102,172 Crescent Point Energy Corp. 3,376 423 34,705 Kirkland Lake Gold Ltd. 355 1,236 375,496 Enbridge, Inc. 17,216 15,925 11,892 Labrador Iron Ore Royalty Corp. 337 288 176,967 Encana Corp. 3,289 1,394 57,468 Lucara Diamond Corp. 208 85 16,505 Enerflex Ltd. 207 264 118,575 Lundin Mining Corp. 649 669 45,287 Enerplus Corp. 855 481 13,828 MAG Silver Corp. 230 138 23,933 Ensign Energy Services, Inc. 341 115 14,485 Methanex Corp. 571 951 17,153 Freehold Royalties Ltd. 307 142 56,226 Nevsun Resources Ltd. 236 337 26,796 Gibson Energy, Inc. 583 500 107,540 New Gold, Inc. 729 113 56,030 Husky Energy, Inc. 1,430 791 9,683 Norbid, Inc. 331 352 43,991 Imperial Oil Ltd. 1,856 1,522 41,415 NOVAGOLD Resources, Inc. 226 224 74,532 Inter Pipeline Ltd. 1,892 1,441 113,749 Nutrien Ltd. 7,398 7,294 28,376 Kelt Exploration Ltd. 289 132 114,922 OceanaGold Corp. 303 572 38,887 Keyera Corp. 1,113 1,004 17,731 Osisko Gold Royalties Ltd. 284 212 19,434 Kinder Morgan Canada Ltd. 327 310 28,489 Pan American Silver Corp. 516 568 46,329 MEG Energy Corp. 1,108 357 34,090 Pretium Resources, Inc. 342 394 18,309 Mullen Group Ltd. 363 223 33,935 Sandstorm Gold Ltd. 230 214 58,567 NexGen Energy Ltd. 200 141 60,504 SEMAFO, Inc. 273 179 41,843 NuVista Energy Ltd. 299 171 22,341 SSR Mining, Inc. 319 369 28,883 Parex Resources, Inc. 358 472 10,440 Stella-Jones, Inc. 463 414 24,736 Parkland Fuel Corp. 528 874 58,218 Tahoe Resources, Inc. 860 289 13,811 Pason Systems, Inc. 241 253 93,789 Teck Resources Ltd. 2,640 2,756 94,041 Pembina Pipeline Corp. 3,252 3,810 15,779 Torex Gold Resources, Inc. 250 205 30,636 Peyto Exploration & Development Corp. 761 217 183,219 Turquoise Hill Resources Ltd. 1,017 412 38,774 PrairieSky Royalty Ltd. 1,168 685 9,982 West Fraser Timber Co., Ltd. 373 673 54,589 Precision Drilling Corp. 501 129 72,218 Western Forest Products, Inc. 173 137 30,092 Secure Energy Services, Inc. 341 211 82,494 Wheaton Precious Metals Corp. 2,071 2,198 51,143 Seven Generations Energy Ltd. 1,031 570 5,677 Winpak Ltd. 271 271 13,024 ShawCor Ltd. 442 216 176,349 Yamana Gold, Inc. 1,731 566 300,563 Suncor Energy, Inc. 10,238 11,460 27,648 TORC Oil & Gas Ltd. 284 121 49,355 41,959 47,010 Tourmaline Oil Corp. 1,608 798 Industrials 10.4% 169,747 TransCanada Corp. 8,044 8,275 11,133 Aecon Group, Inc. 150 196 28,336 Vermilion Energy, Inc. 1,440 815 50,302 Air Canada 313 1,306 77,255 Whitecap Resources, Inc. 860 336 14,169 ATS Automation Tooling Systems, Inc. 202 204 84,103 66,083 6,894 Badger Daylighting Ltd. 197 222 394,898 Bombardier, Inc. 1,554 802 Materials 11.0% 3,656 Boyd Group Income Fund 234 413 43,583 Agnico Eagle Mines Ltd. 1,781 2,401 49,484 CAE, Inc. 583 1,242 54,600 Alacer Gold Corp. 272 138 135,311 Canadian National Railway Co. 6,479 13,681 72,540 Alamos Gold, Inc. 689 356 26,445 Canadian Pacific Railway Ltd. 3,082 6,406 183,883 B2Gold Corp. 524 734 26,007 Chorus Aviation, Inc. 235 147 216,955 Barrick Gold Corp. 5,884 3,999 5,364 Exchange Income Corp. 218 152 11,683 Canfor Corp. 194 193 31,252 Finning International, Inc. 728 744 12,437 Cascades, Inc. 203 127 10,994 Maxar Technologies Ltd. 695 179 26,822 CCL Industries, Inc., Class B 475 1,343 11,891 Morneau Shepell, Inc. 239 298 39,608 Centerra Gold, Inc. 357 232 10,080 NFI Group, Inc. 334 343 17,206 Chemtrade Logistics Income Fund 347 180 9,764 Richelieu Hardware Ltd. 296 222

The accompanying notes are an integral part of the financial statements.

6 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 20,186 Ritchie Bros. Auctioneers, Inc. 488 901 Financials 32.1% 11,537 Russel Metals, Inc. 282 246 6,781 Alaris Royalty Corp. 215 115 32,620 SNC-Lavalin Group, Inc. 1,430 1,498 118,797 Bank of Montreal 7,692 10,596 21,142 Stantec, Inc. 489 632 162,479 Brookfield Asset Management, Inc., Class A 4,389 8,501 15,428 TFI International, Inc. 305 545 82,296 Canadian Imperial Bank of Commerce 6,834 8,368 33,775 Thomson Reuters Corp. 1,172 2,227 16,529 Canadian Western Bank 451 430 15,134 Toromont Industries Ltd. 407 821 42,041 CI Financial Corp. 1,196 727 13,631 Transcontinental, Inc. 236 263 59,437 ECN Capital Corp. 184 205 48,963 Waste Connections, Inc. 2,580 4,961 80,495 Element Fleet Management Corp. 893 556 21,173 Westjet Airlines Ltd. 409 381 5,160 Fairfax Financial Holdings Ltd. 2,435 3,101 8,462 Westshore Terminals Investment Corp. 231 174 7,091 Genworth MI Canada, Inc. 197 285 11,838 WSP Global, Inc. 393 694 51,424 Great-West Lifeco, Inc. 1,439 1,449 11,929 Home Capital Group, Inc. 307 172 23,961 39,900 15,664 IGM Financial, Inc. 681 486 Consumer Discretionary 4.2% 20,320 Industrial Alliance Insurance & Financial 11,893 Aritzia, Inc. 181 195 Services, Inc. 776 885 7,996 BRP, Inc. 319 283 25,863 Intact Financial Corp. 1,682 2,565 10,902 Canada Goose Holdings, Inc. 473 651 7,818 Laurentian Bank of Canada 370 298 11,213 Canadian Tire Corp., Ltd., Class A 909 1,601 368,788 Manulife Financial Corp. 6,893 7,143 54,694 Dollarama, Inc. 718 1,776 62,393 National Bank of Canada 2,401 3,497 38,414 Gildan Activewear, Inc. 836 1,592 15,160 Onex Corp. 718 1,127 10,650 Great Canadian Gaming Corp. 231 510 68,193 Power Corp. of Canada 1,933 1,673 22,480 Hudson’s Bay Co. 394 164 45,114 Power Financial Corp. 1,373 1,165 8,501 Linamar Corp. 294 385 267,754 Royal Bank of Canada 16,601 25,019 57,806 Magna International, Inc. 2,018 3,582 112,096 Sun Life Financial, Inc. 3,730 5,077 16,027 Martinrea International, Inc. 170 174 227,999 The Bank of Nova Scotia 12,968 15,515 3,648 MTY Food Group, Inc. 230 221 340,783 The Toronto-Dominion Bank 14,702 23,126 46,940 Restaurant Brands International, Inc. 2,222 3,348 6,633 TMX Group Ltd. 361 469 6,473 Sleep Country Canada Holdings, Inc. 202 129 5,478 Spin Master Corp. 246 210 91,421 122,550 40,604 The Stars Group, Inc. 1,515 915 Information Technology 3.9% 7,856 Uni-Select, Inc. 218 152 90,402 BlackBerry Ltd. 1,836 878 11,176 15,888 22,051 Celestica, Inc. 273 264 46,198 CGI Group, Inc., Class A 1,446 3,857 Consumer Staples 3.9% 3,662 Constellation Software, Inc. 917 3,200 81,276 Alimentation Couche-Tard, Inc., Class B 1,909 5,519 3,549 Enghouse Systems Ltd. 188 236 25,592 Cott Corp. 298 486 4,836 Kinaxis, Inc. 251 319 29,683 Empire Co., Ltd., Class A 694 856 49,894 Open Text Corp. 1,022 2,220 13,738 George Weston Ltd. 1,063 1,237 17,575 Shopify, Inc. 2,172 3,318 33,469 Loblaw Cos., Ltd. 1,375 2,045 6,698 Sierra Wireless, Inc. 294 123 14,328 Maple Leaf Foods, Inc. 226 392 14,283 The Descartes Systems Group, Inc. 242 514 44,758 Metro, Inc. 975 2,119 5,458 Premium Brands Holdings Corp. 336 409 8,641 14,929 41,177 Saputo, Inc. 996 1,614 Communication Services 5.8% 9,049 The North West Co., Inc. 211 284 166,871 BCE, Inc. 7,179 8,999 8,083 14,961 11,768 Cineplex, Inc. 387 299 4,282 Cogeco Communications, Inc. 208 282 Health Care 1.5% 33,613 Quebecor, Inc., Class B 448 966 39,912 Aphria, Inc. 569 313 66,755 Rogers Communications, Inc., Class B 2,665 4,670 185,173 Aurora Cannabis, Inc. 1,720 1,256 81,998 Shaw Communications, Inc., Class B 1,893 2,026 57,191 Bausch Health Cos., Inc. 5,114 1,444 111,154 TELUS Corp. 3,445 5,030 40,121 Canopy Growth Corp. 649 1,469 39,443 Chartwell Retirement Residences 415 539 16,225 22,272 31,213 Cronos Group, Inc. 435 449 Utilities 3.2% 16,410 Extendicare, Inc. 122 104 87,451 Algonquin Power & Utilities Corp. 918 1,201 20,438 Knight Therapeutics, Inc. 200 157 50,267 AltaGas Ltd. 1,541 699 12,238 Sienna Senior Living, Inc. 216 193 13,958 Atco Ltd. 493 539 9,440 5,924 12,758 Boralex, Inc. 260 215 22,165 Canadian Utilities Ltd. 695 694 18,932 Capital Power Corp. 448 503

The accompanying notes are an integral part of the financial statements.

7 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 43,289 Emera, Inc. 1,632 1,892 United States 0.0% 79,291 Fortis, Inc. 2,903 3,609 Energy 0.0% 56,469 Hydro One Ltd. 1,320 1,143 72,705 Gran Tierra Energy, Inc. 403 217 20,510 Innergex Renewable Energy, Inc. 229 257 330,175 372,504 21,972 Northland Power, Inc. 385 477 32,494 Superior Plus Corp. 368 315 SHORT-TERM INVESTMENTS 1.9% 53,142 TransAlta Corp. 822 297 7,010 Merit Trust, 19,044 TransAlta Renewables, Inc. 238 197 1.95%, Jan 02, 2019 7,009 7,009 12,252 12,038 Investments 337,184 379,513 Real Estate 2.8% Transaction costs (15) 19,298 Allied Properties REIT 620 855 Total investments 337,169 379,513 6,938 Altus Group Ltd. 199 164 25,121 Artis REIT 338 232 Derivative assets 0.0% 1 6,951 Boardwalk REIT 416 263 Derivative liabilities (0.1%) (259) 26,995 Canadian Apartment Properties REIT 648 1,196 Other assets less liabilities 0.7% 2,717 42,857 Choice Properties REIT 527 494 Net assets attributable to 5,349 Colliers International Group, Inc. 218 403 contractholders 100.0% 381,972 33,807 Cominar REIT 577 379 16,644 Crombie REIT 214 208 CONCENTRATION RISK 35,686 Dream Global REIT 343 425 The following table summarizes the Fund’s concentration risk. 9,259 Dream Office REIT 271 206 32,195 First Capital Realty, Inc. 603 607 % of net assets attributable to contractholders 5,794 FirstService Corp. 226 543 Portfolio by category December 31, 2018 December 31, 2017 8,498 Granite REIT 330 452 53,079 H&R Real Estate Investment Trust 1,162 1,096 Equities 19,678 InterRent REIT 232 257 Canada 15,855 Killam Apartment REIT 220 253 Energy 17.3 19.1 10,438 Northview Apartment REIT 231 255 Materials 11.0 11.1 57,014 RioCan REIT 1,512 1,357 Industrials 10.4 9.2 Consumer Discretionary 4.2 5.3 22,188 Smart REIT 607 684 Consumer Staples 3.9 3.6 25,781 Tricon Capital Group, Inc. 279 250 Health Care 1.5 0.9 9,773 10,579 Financials 32.1 33.7 Information Technology 3.9 3.1 324,430 367,083 Communication Services 5.8 4.6 Global 1.4% Utilities 3.2 2.8 Materials 0.1% Real Estate 2.8 2.6 14,015 Endeavour Mining Corp. 300 313 Global Materials 0.1 0.1 Industrials 0.1% Industrials 0.1 0.1 7,625 Brookfield Business Partners LP 287 317 Utilities 0.8 0.9 Utilities 0.8% Real Estate 0.4 0.2 51,448 Brookfield Infrastructure Partners LP 2,693 2,425 United States 23,050 Brookfield Renewable Partners LP 739 815 Energy - 0.1 Short-Term Investments 1.9 4.6 3,432 3,240 Derivative liabilities (0.1) - Real Estate 0.4% Other assets less liabilities 0.7 (2.0) 60,565 Brookfield Property Partners LP 1,323 1,334 100.0 100.0 5,342 5,204

The accompanying notes are an integral part of the financial statements.

8 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

FUTURES CONTRACTS (0.1%) Commitment Unrealized No. of Contract Futures Delivery amount Price as at gain/(loss) contracts price contracts date ($) (’000) December 31, 2018 (CAD $) (’000) 2 CAD 855.05 S&P TSX 60 Index Future Mar 14, 2019 CAD 343 CAD 857.30 1 Derivative assets 1 2 CAD 869.40 S&P TSX 60 Index Future Mar 14, 2019 CAD 343 CAD 857.30 (5) 7 CAD 877.10 S&P TSX 60 Index Future Mar 14, 2019 CAD 1,200 CAD 857.30 (28) 44 CAD 883.04 S&P TSX 60 Index Future Mar 14, 2019 CAD 7,544 CAD 857.30 (226) Derivative liabilities (259) Total (258)

The accompanying notes are an integral part of the financial statements.

9 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CAPPED CANADIAN EQUITY FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CAPPED CANADIAN EQUITY FUND (MANULIFE ASSET MANAGEMENT)

Cash flows from operating activities STATEMENTS OF COMPREHENSIVE INCOME Increase (decrease) in net assets attributable to contractholders (6,739) 19,725 For the years ended December 31 2018 2017 Adjustments for: ($ in thousands except for per unit amounts) Change in unrealized foreign exchange gain (loss) on currency (12) 11 Income Realized gain (loss) on sales of investments (24,272) (18,584) Interest for allocation purposes 32 20 Change in unrealized appreciation (depreciation) in Dividend income 4,024 4,607 the value of investments 34,956 3,328 Foreign exchange gain (loss) on income 3 (7) Purchases of investments (529,122) (498,515) Foreign exchange gain (loss) on currency 3 (11) Proceeds from disposition of investments 596,186 519,422 Income from securities lending 11 10 Interest, dividends and other receivables 51 (131) Other income (loss) 4 - Accrued expenses and other liabilities (2) (1) Realized gain (loss) on sales of investments 24,272 18,584 Change in unrealized appreciation (depreciation) in Net cash provided by (used in) operating the value of investments (34,956) (3,328) activities 71,046 25,255 (6,607) 19,875 Cash flows from financing activities Expenses Proceeds from sale of units 21,895 9,619 Administration fees 53 64 Payments for units redeemed (93,172) (34,679) Transaction costs 79 86 Net cash provided by (used in) financing 132 150 activities (71,277) (25,060) Increase (decrease) in net assets attributable Change in unrealized foreign exchange gain (loss) to contractholders (6,739) 19,725 on currency 12 (11) Increase (decrease) in net assets attributable to contractholders per unit Net increase (decrease) in cash (231) 195 Group pension units (1.39) 3.07 Cash (bank overdraft) beginning of year 346 162 Cash (bank overdraft) end of year 127 346 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 32 20 Dividends received, net of foreign withholding taxes 4,075 4,475

The accompanying notes are an integral part of the financial statements.

10 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CAPPED CANADIAN EQUITY FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CAPPED CANADIAN EQUITY FUND (MANULIFE ASSET MANAGEMENT)

The accompanying notes are an integral part of the financial statements.

11 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT)

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 191,476 235,985 beginning of year 236,578 253,165 Cash 110 147 Increase (decrease) in net assets attributable to Margin deposited on derivatives 586 236 contractholders (17,742) 20,767 Subscriptions receivable 2,234 - Security transactions Interest, dividends and other receivables 590 585 Proceeds from units issued 30,447 20,040 Derivative assets 21 45 Redemption of units (54,422) (57,394) 195,017 236,998 Total security transactions (23,975) (37,354) Liabilities Net assets attributable to contractholders - end of year 194,861 236,578 Current liabilities Redemptions payable 17 414 Accrued expenses and other liabilities 6 6 STATEMENTS OF CASH FLOWS Derivative liabilities 133 - For the years ended December 31 2018 2017 156 420 ($ in thousands except for per unit amounts) Net assets attributable to contractholders 194,861 236,578 Net assets attributable to contractholders per unit Cash flows from operating activities Group pension units 28.46 31.23 Increase (decrease) in net assets attributable to contractholders (17,742) 20,767 Adjustments for: STATEMENTS OF COMPREHENSIVE INCOME Change in unrealized foreign exchange gain (loss) on currency (1) 1 For the years ended December 31 2018 2017 Realized gain (loss) on sales of investments (8,685) (10,062) ($ in thousands except for per unit amounts) Realized gain (loss) on derivatives 384 (328) Change in unrealized appreciation (depreciation) in Income the value of investments 32,504 (3,858) Interest for allocation purposes 188 166 Change in unrealized appreciation (depreciation) in Dividend income 6,392 6,307 the value of derivatives 157 (58) Foreign exchange gain (loss) on income 4 - Purchases of investments (998,222) (1,378,745) Foreign exchange gain (loss) on currency 2 (1) Proceeds from disposition of investments 1,018,528 1,409,644 Income from securities lending 137 87 Margin on derivatives (350) 431 Other income (loss) (1) - Realized gain (loss) on sales of investments 8,685 10,062 Interest, dividends and other receivables (5) 55 Realized gain (loss) on derivatives (384) 328 Accrued expenses and other liabilities - 4 Change in unrealized appreciation (depreciation) in Net cash provided by (used in) operating the value of investments (32,504) 3,858 activities 26,568 37,851 Change in unrealized appreciation (depreciation) in Cash flows from financing activities the value of derivatives (157) 58 Proceeds from sale of units 28,213 20,040 (17,638) 20,865 Payments for units redeemed (54,819) (57,906) Expenses Net cash provided by (used in) financing Administration fees 78 74 activities (26,606) (37,866) Foreign withholding taxes 16 1 Transaction costs 10 23 Change in unrealized foreign exchange gain (loss) on currency 1 (1) 104 98 Net increase (decrease) in cash (38) (15) Increase (decrease) in net assets attributable Cash (bank overdraft) beginning of year 147 163 to contractholders (17,742) 20,767 Cash (bank overdraft) end of year 110 147 Increase (decrease) in net assets attributable to contractholders per unit Group pension units (2.39) 2.57 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 188 166 Dividends received, net of foreign withholding taxes 6,387 6,362

The accompanying notes are an integral part of the financial statements.

12 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT)

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) 16,333 Detour Gold Corp. 258 188 14,795 Eldorado Gold Corp. 579 59 EQUITIES 95.9% 15,698 First Majestic Silver Corp. 173 126 Canada 94.5% 64,230 First Quantum Minerals Ltd. 941 709 Energy 17.0% 14,900 Fortuna Silver Mines, Inc. 103 74 32,974 ARC Resources Ltd. 774 267 17,363 Franco-Nevada Corp. 876 1,662 51,619 Baytex Energy Corp. 897 124 81,013 Goldcorp, Inc. 2,021 1,083 24,775 Birchcliff Energy Ltd. 222 75 24,343 HudBay Minerals, Inc. 257 157 36,876 Cameco Corp. 813 571 43,470 IAMGOLD Corp. 315 218 112,369 Canadian Natural Resources Ltd. 3,128 3,701 6,082 Interfor Corp. 98 88 95,016 Cenovus Energy, Inc. 2,032 912 5,210 Intertape Polymer Group, Inc. 83 88 22,865 CES Energy Solutions Corp. 133 72 49,903 Ivanhoe Mines Ltd. 98 118 7,475 Computer Modelling Group Ltd. 89 46 116,483 Kinross Gold Corp. 1,160 513 51,230 Crescent Point Energy Corp. 1,603 212 17,401 Kirkland Lake Gold Ltd. 149 619 188,278 Enbridge, Inc. 8,030 7,985 5,963 Labrador Iron Ore Royalty Corp. 166 145 88,733 Encana Corp. 1,613 699 28,815 Lucara Diamond Corp. 104 43 8,276 Enerflex Ltd. 93 132 59,455 Lundin Mining Corp. 374 335 22,707 Enerplus Corp. 471 241 6,934 MAG Silver Corp. 114 69 12,000 Ensign Energy Services, Inc. 159 58 7,263 Methanex Corp. 235 477 8,601 Freehold Royalties Ltd. 149 71 28,192 Nevsun Resources Ltd. 127 169 13,436 Gibson Energy, Inc. 291 251 53,921 New Gold, Inc. 314 57 28,094 Husky Energy, Inc. 677 396 4,855 Norbid, Inc. 157 176 22,058 Imperial Oil Ltd. 853 763 20,766 NOVAGOLD Resources, Inc. 126 113 37,371 Inter Pipeline Ltd. 945 723 57,035 Nutrien Ltd. 2,813 3,657 14,228 Kelt Exploration Ltd. 141 66 57,623 OceanaGold Corp. 168 287 19,498 Keyera Corp. 534 503 8,890 Osisko Gold Royalties Ltd. 139 106 9,744 Kinder Morgan Canada Ltd. 164 155 14,285 Pan American Silver Corp. 267 285 23,230 MEG Energy Corp. 626 179 17,093 Pretium Resources, Inc. 174 198 9,180 Mullen Group Ltd. 155 112 17,016 Sandstorm Gold Ltd. 116 108 29,366 NexGen Energy Ltd. 101 71 30,337 SEMAFO, Inc. 135 89 20,981 NuVista Energy Ltd. 146 86 11,202 SSR Mining, Inc. 188 185 14,482 Parex Resources, Inc. 180 237 5,235 Stella-Jones, Inc. 232 207 12,403 Parkland Fuel Corp. 260 438 29,191 Tahoe Resources, Inc. 425 145 6,925 Pason Systems, Inc. 113 127 47,027 Teck Resources Ltd. 1,113 1,382 47,153 Pembina Pipeline Corp. 1,590 1,910 7,912 Torex Gold Resources, Inc. 128 103 15,361 Peyto Exploration & Development Corp. 363 109 91,868 Turquoise Hill Resources Ltd. 488 207 19,442 PrairieSky Royalty Ltd. 572 344 5,005 West Fraser Timber Co., Ltd. 164 338 27,371 Precision Drilling Corp. 228 65 36,211 Western Forest Products, Inc. 86 68 15,088 Secure Energy Services, Inc. 166 106 41,363 Wheaton Precious Metals Corp. 847 1,102 25,644 Seven Generations Energy Ltd. 513 286 2,846 Winpak Ltd. 136 136 6,530 ShawCor Ltd. 184 108 88,423 Yamana Gold, Inc. 818 284 150,706 Suncor Energy, Inc. 4,908 5,746 13,863 TORC Oil & Gas Ltd. 139 61 22,388 21,037 23,572 Tourmaline Oil Corp. 789 400 Industrials 10.3% 85,113 TransCanada Corp. 3,734 4,149 5,582 Aecon Group, Inc. 87 98 14,208 Vermilion Energy, Inc. 675 409 25,222 Air Canada 150 655 38,736 Whitecap Resources, Inc. 414 169 7,104 ATS Automation Tooling Systems, Inc. 99 102 39,667 33,135 3,457 Badger Daylighting Ltd. 97 111 198,006 Bombardier, Inc. 823 402 Materials 10.8% 1,833 Boyd Group Income Fund 119 207 21,853 Agnico Eagle Mines Ltd. 853 1,203 24,812 CAE, Inc. 285 623 27,377 Alacer Gold Corp. 152 69 67,847 Canadian National Railway Co. 2,739 6,860 36,372 Alamos Gold, Inc. 310 179 13,260 Canadian Pacific Railway Ltd. 1,380 3,212 92,201 B2Gold Corp. 260 368 13,040 Chorus Aviation, Inc. 117 74 108,784 Barrick Gold Corp. 2,806 2,005 2,689 Exchange Income Corp. 110 76 5,858 Canfor Corp. 84 97 15,670 Finning International, Inc. 331 373 6,236 Cascades, Inc. 102 64 5,513 Maxar Technologies Ltd. 311 90 13,449 CCL Industries, Inc., Class B 214 673 5,962 Morneau Shepell, Inc. 115 149 19,860 Centerra Gold, Inc. 171 116 5,054 NFI Group, Inc. 164 172 8,627 Chemtrade Logistics Income Fund 171 90 4,896 Richelieu Hardware Ltd. 148 111

The accompanying notes are an integral part of the financial statements.

13 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 10,121 Ritchie Bros. Auctioneers, Inc. 248 452 Financials 31.5% 5,785 Russel Metals, Inc. 129 123 3,400 Alaris Royalty Corp. 109 58 16,356 SNC-Lavalin Group, Inc. 615 751 59,566 Bank of Montreal 3,666 5,313 10,601 Stantec, Inc. 228 317 81,469 Brookfield Asset Management, Inc., Class A 2,093 4,262 7,736 TFI International, Inc. 138 273 41,264 Canadian Imperial Bank of Commerce 3,344 4,196 16,935 Thomson Reuters Corp. 645 1,117 8,288 Canadian Western Bank 191 216 7,588 Toromont Industries Ltd. 169 412 21,080 CI Financial Corp. 555 364 6,835 Transcontinental, Inc. 133 132 29,802 ECN Capital Corp. 100 103 24,550 Waste Connections, Inc. 1,282 2,488 40,361 Element Fleet Management Corp. 538 279 10,617 Westjet Airlines Ltd. 187 191 2,587 Fairfax Financial Holdings Ltd. 1,047 1,555 4,243 Westshore Terminals Investment Corp. 111 87 3,555 Genworth MI Canada, Inc. 98 143 5,936 WSP Global, Inc. 198 348 25,784 Great-West Lifeco, Inc. 723 727 5,981 Home Capital Group, Inc. 137 86 11,158 20,006 7,854 IGM Financial, Inc. 313 244 Consumer Discretionary 4.1% 10,189 Industrial Alliance Insurance & Financial 5,963 Aritzia, Inc. 91 98 Services, Inc. 360 444 4,009 BRP, Inc. 155 142 12,968 Intact Financial Corp. 760 1,286 5,466 Canada Goose Holdings, Inc. 236 326 3,920 Laurentian Bank of Canada 168 149 5,622 Canadian Tire Corp., Ltd., Class A 395 803 184,914 Manulife Financial Corp. 4,273 3,582 27,424 Dollarama, Inc. 298 890 31,285 National Bank of Canada 1,050 1,753 19,261 Gildan Activewear, Inc. 384 798 7,601 Onex Corp. 308 565 5,340 Great Canadian Gaming Corp. 118 256 34,193 Power Corp. of Canada 976 839 11,272 Hudson’s Bay Co. 199 82 22,621 Power Financial Corp. 676 584 4,262 Linamar Corp. 136 193 134,255 Royal Bank of Canada 7,476 12,545 28,985 Magna International, Inc. 892 1,796 56,206 Sun Life Financial, Inc. 2,093 2,546 8,036 Martinrea International, Inc. 80 87 114,321 The Bank of Nova Scotia 5,852 7,779 1,829 MTY Food Group, Inc. 116 111 170,872 The Toronto-Dominion Bank 6,633 11,595 23,536 Restaurant Brands International, Inc. 1,108 1,679 3,326 TMX Group Ltd. 182 235 3,245 Sleep Country Canada Holdings, Inc. 100 65 2,747 Spin Master Corp. 121 105 43,721 61,448 20,359 The Stars Group, Inc. 753 459 Information Technology 3.9% 3,939 Uni-Select, Inc. 109 76 45,329 BlackBerry Ltd. 1,120 440 5,291 7,966 11,056 Celestica, Inc. 182 132 23,164 CGI Group, Inc., Class A 653 1,934 Consumer Staples 3.9% 1,836 Constellation Software, Inc. 463 1,605 40,752 Alimentation Couche-Tard, Inc., Class B 860 2,768 1,779 Enghouse Systems Ltd. 94 118 12,832 Cott Corp. 155 244 2,425 Kinaxis, Inc. 123 160 14,884 Empire Co., Ltd., Class A 314 429 25,017 Open Text Corp. 449 1,113 6,889 George Weston Ltd. 571 620 8,813 Shopify, Inc. 1,103 1,664 16,782 Loblaw Cos., Ltd. 696 1,026 3,359 Sierra Wireless, Inc. 145 62 7,184 Maple Leaf Foods, Inc. 115 196 7,161 The Descartes Systems Group, Inc. 124 258 22,442 Metro, Inc. 429 1,062 2,737 Premium Brands Holdings Corp. 164 205 4,456 7,486 20,646 Saputo, Inc. 428 809 Communication Services 5.7% 4,537 The North West Co., Inc. 105 143 83,671 BCE, Inc. 3,491 4,512 3,837 7,502 5,901 Cineplex, Inc. 176 150 2,147 Cogeco Communications, Inc. 88 141 Health Care 1.5% 16,854 Quebecor, Inc., Class B 201 485 20,012 Aphria, Inc. 278 157 33,471 Rogers Communications, Inc., Class B 1,159 2,342 92,848 Aurora Cannabis, Inc. 832 630 41,114 Shaw Communications, Inc., Class B 863 1,016 28,676 Bausch Health Cos., Inc. 2,199 724 55,734 TELUS Corp. 1,516 2,522 20,117 Canopy Growth Corp. 300 736 19,777 Chartwell Retirement Residences 212 270 7,494 11,168 15,650 Cronos Group, Inc. 218 225 Utilities 3.1% 8,228 Extendicare, Inc. 62 52 43,849 Algonquin Power & Utilities Corp. 459 602 10,248 Knight Therapeutics, Inc. 101 79 25,204 AltaGas Ltd. 731 350 6,135 Sienna Senior Living, Inc. 108 97 6,998 Atco Ltd. 193 270 4,310 2,970 6,397 Boralex, Inc. 131 108 11,114 Canadian Utilities Ltd. 292 348 9,493 Capital Power Corp. 231 253

The accompanying notes are an integral part of the financial statements.

14 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 21,706 Emera, Inc. 761 949 United States 0.1% 39,757 Fortis, Inc. 1,393 1,809 Energy 0.1% 28,314 Hydro One Ltd. 663 573 36,461 Gran Tierra Energy, Inc. 200 109 10,284 Innergex Renewable Energy, Inc. 116 129 156,109 186,776 11,017 Northland Power, Inc. 191 239 16,293 Superior Plus Corp. 196 158 SHORT-TERM INVESTMENTS 2.4% 26,646 TransAlta Corp. 443 149 4,700 Merit Trust, 9,549 TransAlta Renewables, Inc. 118 99 1.95%, Jan 02, 2019 4,699 4,700 5,918 6,036 Investments 160,808 191,476 Real Estate 2.7% Transaction costs (3) 9,676 Allied Properties REIT 315 429 Total investments 160,805 191,476 3,479 Altus Group Ltd. 98 82 12,596 Artis REIT 173 116 Derivative assets 0.0% 21 3,485 Boardwalk REIT 212 132 Derivative liabilities (0.1%) (133) 13,536 Canadian Apartment Properties REIT 339 600 Other assets less liabilities 1.8% 3,497 21,489 Choice Properties REIT 264 248 Net assets attributable to 2,682 Colliers International Group, Inc. 100 202 contractholders 100.0% 194,861 16,951 Cominar REIT 307 190 8,346 Crombie REIT 111 104 CONCENTRATION RISK 17,893 Dream Global REIT 177 213 The following table summarizes the Fund’s concentration risk. 4,643 Dream Office REIT 142 103 16,143 First Capital Realty, Inc. 295 304 % of net assets attributable to contractholders 2,905 FirstService Corp. 115 272 Portfolio by category December 31, 2018 December 31, 2017 4,261 Granite REIT 167 227 26,614 H&R Real Estate Investment Trust 595 550 Equities 9,867 InterRent REIT 116 129 Canada 7,950 Killam Apartment REIT 110 127 Energy 17.0 19.1 5,234 Northview Apartment REIT 120 128 Materials 10.8 11.1 28,587 RioCan REIT 772 680 Industrials 10.3 9.1 Consumer Discretionary 4.1 5.3 11,125 Smart REIT 316 343 Consumer Staples 3.9 3.6 12,927 Tricon Capital Group, Inc. 138 125 Health Care 1.5 0.9 4,982 5,304 Financials 31.5 33.8 Information Technology 3.9 3.1 153,222 184,058 Communication Services 5.7 4.6 Global 1.3% Utilities 3.1 2.8 Materials 0.1% Real Estate 2.7 2.6 7,027 Endeavour Mining Corp. 150 157 Global Materials 0.1 0.1 Industrials 0.1% Industrials 0.1 0.1 3,823 Brookfield Business Partners LP 144 159 Utilities 0.8 0.9 Utilities 0.8% Real Estate 0.3 0.3 25,797 Brookfield Infrastructure Partners LP 1,344 1,216 United States 11,557 Brookfield Renewable Partners LP 375 409 Energy 0.1 0.1 Short-Term Investments 2.4 2.3 1,719 1,625 Derivative liabilities (0.1) - Real Estate 0.3% Other assets less liabilities 1.8 0.2 30,368 Brookfield Property Partners LP 674 668 100.0 100.0 2,687 2,609

The accompanying notes are an integral part of the financial statements.

15 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN EQUITY CAPPED INDEX FUND (MANULIFE ASSET MANAGEMENT)

FUTURES CONTRACTS (0.1%) Commitment Unrealized No. of Contract Futures Delivery amount Price as at gain/(loss) contracts price contracts date ($) (’000) December 31, 2018 (CAD $) (’000) 2 CAD 829.60 S&P TSX 60 Index Future Mar 14, 2019 CAD 343 CAD 857.30 11 2 CAD 836.30 S&P TSX 60 Index Future Mar 14, 2019 CAD 343 CAD 857.30 8 1 CAD 853.80 S&P TSX 60 Index Future Mar 14, 2019 CAD 171 CAD 857.30 1 2 CAD 855.10 S&P TSX 60 Index Future Mar 14, 2019 CAD 343 CAD 857.30 1 Derivative assets 21 1 CAD 877.10 S&P TSX 60 Index Future Mar 14, 2019 CAD 171 CAD 857.30 (4) 25 CAD 883.04 S&P TSX 60 Index Future Mar 14, 2019 CAD 4,287 CAD 857.30 (129) Derivative liabilities (133) Total (112)

The accompanying notes are an integral part of the financial statements.

16 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT CANADIAN SMALL-CAP EQUITY FUND MANULIFE ASSET MANAGEMENT CANADIAN SMALL-CAP EQUITY FUND

Net assets attributable to contractholders 160,425 187,742 For the years ended December 31 2018 2017 Net assets attributable to contractholders per unit ($ in thousands except for per unit amounts) Group pension units 70.21 83.29 Cash flows from operating activities Increase (decrease) in net assets attributable to STATEMENTS OF COMPREHENSIVE INCOME contractholders (28,334) 8,022 Adjustments for: For the years ended December 31 2018 2017 Change in unrealized foreign exchange gain (loss) ($ in thousands except for per unit amounts) on currency (1) 1 Realized gain (loss) on sales of investments (9,875) (2,991) Income Realized gain (loss) on derivatives - 1 Interest for allocation purposes 233 97 Change in unrealized appreciation (depreciation) in Dividend income 3,317 2,856 the value of investments 41,719 (2,216) Foreign exchange gain (loss) on income (1) (38) Purchases of investments (1,813,487) (639,878) Foreign exchange gain (loss) on currency 319 (1) Proceeds from disposition of investments 1,808,925 643,700 Income from securities lending 74 254 Interest, dividends and other receivables (116) 2 Other income (loss) (6) - Accrued expenses and other liabilities (1) 3 Realized gain (loss) on sales of investments 9,875 2,991 Realized gain (loss) on derivatives - (1) Net cash provided by (used in) operating Change in unrealized appreciation (depreciation) in activities (1,170) 6,644 the value of investments (41,719) 2,216 Cash flows from financing activities (27,908) 8,374 Proceeds from sale of units 39,119 33,609 Expenses Payments for units redeemed (38,048) (41,199) Administration fees 60 58 Net cash provided by (used in) financing Other operating expenses - 1 activities 1,071 (7,590) Foreign withholding taxes 49 35 Transaction costs 317 258 Change in unrealized foreign exchange gain (loss) on currency 1 (1) 426 352 Net increase (decrease) in cash (99) (946) Increase (decrease) in net assets attributable Cash (bank overdraft) beginning of year 154 1,101 to contractholders (28,334) 8,022 Cash (bank overdraft) end of year 56 154 Increase (decrease) in net assets attributable to contractholders per unit Group pension units (12.86) 3.44 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 233 97 Dividends received, net of foreign withholding taxes 3,157 2,822

The accompanying notes are an integral part of the financial statements.

17 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT CANADIAN SMALL-CAP EQUITY FUND MANULIFE ASSET MANAGEMENT CANADIAN SMALL-CAP EQUITY FUND

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) Financials 3.6% 126,838 Canadian Western Bank 4,056 3,303 EQUITIES 92.6% 55,103 Industrial Alliance Insurance & Financial Canada 87.1% Services, Inc. 2,952 2,401 Energy 17.0% 607,266 CES Energy Solutions Corp. 2,530 1,913 7,008 5,704 292,214 Enerplus Corp. 4,107 3,103 Information Technology 6.0% 339,737 Freehold Royalties Ltd. 4,615 2,810 645,176 Alithya Group, Inc., Series A 2,918 2,065 122,793 Gibson Energy, Inc. 2,674 2,294 50,138 Kinaxis, Inc. 2,728 3,304 514,312 Kelt Exploration Ltd. 3,079 2,386 116,509 The Descartes Systems Group, Inc. 1,657 4,198 282,588 Parex Resources, Inc. 3,029 4,620 89,703 Parkland Fuel Corp. 2,338 3,170 7,303 9,567 366,282 Secure Energy Services, Inc. 3,467 2,568 Communication Services 1.6% 368,295 Tamarack Valley Energy Ltd. 1,115 869 92,095 Quebecor, Inc., Class B 2,053 2,647 124,571 Vermilion Energy, Inc. 5,898 3,583 Utilities 5.4% 32,852 27,316 359,273 Algonquin Power & Utilities Corp. 4,245 4,933 Materials 14.6% 379,086 Superior Plus Corp. 4,557 3,669 25,194 Agnico Eagle Mines Ltd. 1,371 1,388 8,802 8,602 441,985 B2Gold Corp. 1,669 1,764 Real Estate 11.1% 369,191 Chemtrade Logistics Income Fund 6,740 3,869 128,446 Northview Apartment REIT 3,314 3,144 100,439 First Quantum Minerals Ltd. 1,834 1,109 270,245 Pure Multi-Family REIT LP 2,344 2,278 207,241 Fortuna Silver Mines, Inc. 1,470 1,036 1,560,771 StorageVault Canada, Inc. 3,948 3,699 217,925 HudBay Minerals, Inc. 2,063 1,408 433,191 Tricon Capital Group, Inc. 4,646 4,198 210,315 Interfor Corp. 3,636 3,033 260,026 WPT Industrial REIT 4,085 4,564 81,623 IPL Plastics, Inc. 1,100 816 159,452 Kirkland Lake Gold Ltd. 1,901 5,676 18,337 17,883 259,036 Lundin Mining Corp. 1,681 1,461 147,227 139,732 546,146 Neo Lithium Corp. 1,008 339 76,443 Neo Performance Materials, Inc. 1,325 1,177 United States 5.5% 125,260 SEMAFO, Inc. 467 369 Energy 1.9% 992,644 Gran Tierra Energy, Inc. 3,562 2,958 26,265 23,445 Industrials 0.5% Industrials 14.3% 16,659 BWX Technologies, Inc. 1,301 870 66,754 Ag Growth International, Inc. 3,556 3,124 118,517 ATS Automation Tooling Systems, Inc. 1,475 1,705 Consumer Staples 0.9% 33,034 Boyd Group Income Fund 1,277 3,731 12,425 Post Holdings, Inc. 1,331 1,512 50,724 Cargojet, Inc. 3,591 3,591 Financials 0.8% 93,969 Finning International, Inc. 3,052 2,236 13,070 Comerica, Inc. 1,424 1,226 274,643 People Corp. 2,038 2,001 Information Technology 1.4% 61,371 Richelieu Hardware Ltd. 788 1,393 47,566 Ceridian HCM Holding, Inc. 2,088 2,241 112,712 Russel Metals, Inc. 3,074 2,404 215,074 Savaria Corp. 3,441 2,809 9,706 8,807 22,292 22,994 156,933 148,539 Consumer Discretionary 6.4% SHORT-TERM INVESTMENTS 6.7% 62,823 Great Canadian Gaming Corp. 3,196 3,007 USD 2,500 Federal Home Loan Bank Discount Notes, 27,532 MTY Food Group, Inc. 1,784 1,670 2.13%, Jan 02, 2019 3,414 3,414 146,848 Park Lawn Corp. 2,985 3,386 7,410 Merit Trust, 55,552 Spin Master Corp. 1,847 2,133 1.95%, Jan 02, 2019 7,409 7,409 9,812 10,196 10,823 10,823 Consumer Staples 5.4% Investments 167,756 159,362 236,379 Andrew Peller Ltd. 3,947 3,236 Transaction costs (106) 177,371 Mav Beauty Brands, Inc. 2,345 1,894 41,916 Metro, Inc. 1,968 1,984 Total investments 167,650 159,362 20,942 Premium Brands Holdings Corp. 1,245 1,568 Other assets less liabilities 0.7% 1,063 9,505 8,682 Net assets attributable to Health Care 1.7% contractholders 100.0% 160,425 171,253 Sienna Senior Living, Inc. 2,998 2,696

The accompanying notes are an integral part of the financial statements.

18 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT CANADIAN SMALL-CAP EQUITY FUND MANULIFE ASSET MANAGEMENT CANADIAN SMALL-CAP EQUITY FUND

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Equities Canada Energy 17.0 20.1 Materials 14.6 21.6 Industrials 14.3 16.3 Consumer Discretionary 6.4 6.3 Consumer Staples 5.4 3.4 Health Care 1.7 2.5 Financials 3.6 3.2 Information Technology 6.0 6.1 Communication Services 1.6 - Utilities 5.4 4.9 Real Estate 11.1 5.7 United States Energy 1.9 1.4 Industrials 0.5 0.5 Consumer Staples 0.9 - Financials 0.8 1.3 Information Technology 1.4 0.6 Global Information Technology - 2.0 Short-Term Investments 6.7 3.8 Other assets less liabilities 0.7 0.3 100.0 100.0

The accompanying notes are an integral part of the financial statements.

19 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE EQUITY TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE EQUITY TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

Net assets attributable to contractholders 40,014 50,979 Cash flows from operating activities Net assets attributable to contractholders per unit Increase (decrease) in net assets attributable to Group pension units 313.65 316.84 contractholders (220) 5,995 Adjustments for: Change in unrealized foreign exchange gain (loss) STATEMENTS OF COMPREHENSIVE INCOME on currency (3) 8 Realized gain (loss) on sales of investments (5,143) (2,079) For the years ended December 31 2018 2017 Realized gain (loss) on derivatives 500 (799) ($ in thousands except for per unit amounts) Change in unrealized appreciation (depreciation) in the value of investments 5,503 (2,190) Income Change in unrealized appreciation (depreciation) in Interest for allocation purposes 6 3 the value of derivatives 533 (66) Dividend income 1,194 1,020 Purchases of investments (30,071) (29,223) Foreign exchange gain (loss) on income 3 (56) Proceeds from disposition of investments 38,915 34,701 Foreign exchange gain (loss) on currency 11 (8) Interest, dividends and other receivables (40) (6) Income from securities lending 1 3 Accrued expenses and other liabilities (1) - Other income (loss) 43 - Realized gain (loss) on sales of investments 5,143 2,079 Net cash provided by (used in) operating Realized gain (loss) on derivatives (500) 799 activities 9,973 6,341 Change in unrealized appreciation (depreciation) in Cash flows from financing activities the value of investments (5,503) 2,190 Proceeds from sale of units 2,626 3,039 Change in unrealized appreciation (depreciation) in Payments for units redeemed (13,145) (9,145) the value of derivatives (533) 66 Net cash provided by (used in) financing (135) 6,096 activities (10,519) (6,106) Expenses Administration fees 15 17 Change in unrealized foreign exchange gain (loss) Foreign withholding taxes 43 61 on currency 3 (8) Transaction costs 27 23 Net increase (decrease) in cash (546) 235 Cash (bank overdraft) beginning of year 707 480 85 101 Increase (decrease) in net assets attributable Cash (bank overdraft) end of year 164 707 to contractholders (220) 5,995 Supplemental information on cash flows from operating activities: Increase (decrease) in net assets attributable to contractholders per unit Interest received, net of foreign withholding taxes 6 3 Group pension units (1.58) 35.15 Dividends received, net of foreign withholding taxes 892 959

The accompanying notes are an integral part of the financial statements.

20 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE EQUITY TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE EQUITY TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

The accompanying notes are an integral part of the financial statements.

21 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE EQUITY TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE EQUITY TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Equities Canada Energy 7.8 12.8 Materials 3.5 3.0 Industrials 1.6 3.3 Consumer Discretionary 3.1 6.3 Consumer Staples 3.1 1.6 Financials 17.8 17.1 Information Technology 6.2 5.3 Communication Services 8.9 1.7 Real Estate 1.0 1.4 United States Materials 1.1 - Industrials 6.5 5.9 Consumer Discretionary 3.5 3.1 Consumer Staples 1.3 - Health Care 6.9 6.0 Financials 5.0 6.9 Information Technology 8.2 13.3 Communication Services 1.9 - Global Materials - 0.7 Industrials 1.8 3.0 Consumer Staples 2.0 - Health Care 5.6 4.4 Information Technology 4.0 1.9 Short-Term Investments - 0.7 Derivative assets - 0.3 Derivative liabilities (1.0) - Other assets less liabilities 0.2 1.3 100.0 100.0

FORWARD FOREIGN CURRENCY CONTRACTS (1.0%) Purchased currency Sold currency Valueasat Valueasat Unrealized Counter- Settlement December 31, 2018 December 31, 2018 gain/loss party credit Contract price date Currency ($) (’000) Currency ($) (’000) ($) (’000) Counterparty rating CAD 1.33748 Apr 26, 2019 CAD 802 USD 817 (15) Royal Bank of Canada AA- CAD 1.29208 Feb 28, 2019 CAD 400 USD 422 (22) Bank of Montreal A+ CAD 1.32460 Mar 29, 2019 CAD 993 USD 1,022 (29) Bank of Montreal A+ CAD 1.34267 May 31, 2019 CAD 4,565 USD 4,628 (63) Bank of Montreal A+ CAD 1.30028 Jan 31, 2019 CAD 5,214 USD 5,472 (258) Bank of Montreal A+ Derivative liabilities (387)

The accompanying notes are an integral part of the financial statements.

22 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 401,976 427,515 beginning of year 429,154 410,059 Cash 1,004 980 Increase (decrease) in net assets attributable to Margin deposited on derivatives 2,074 326 contractholders 20,910 53,102 Subscriptions receivable 2,262 677 Security transactions Interest, dividends and other receivables 397 435 Proceeds from units issued 98,116 67,798 Derivative assets 19 64 Redemption of units (141,801) (101,805) 407,732 429,997 Total security transactions (43,685) (34,007) Liabilities Net assets attributable to contractholders - end of Current liabilities year 406,379 429,154 Redemptions payable 604 800 Payable on investments purchased 273 - Accrued expenses and other liabilities 12 12 STATEMENTS OF CASH FLOWS Derivative liabilities 464 31 1,353 843 For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Net assets attributable to contractholders 406,379 429,154 Net assets attributable to contractholders per unit Cash flows from operating activities Group pension units 31.96 30.77 Increase (decrease) in net assets attributable to contractholders 20,910 53,102 Adjustments for: STATEMENTS OF COMPREHENSIVE INCOME Realized gain (loss) on sales of investments (30,499) (19,877) Realized gain (loss) on derivatives 181 (1,990) For the years ended December 31 2018 2017 Change in unrealized appreciation (depreciation) in ($ in thousands except for per unit amounts) the value of investments 17,891 (23,292) Change in unrealized appreciation (depreciation) in Income the value of derivatives 478 (73) Interest for allocation purposes 817 7 Purchases of investments (1,621,633) (305,909) Dividend income 8,951 9,165 Proceeds from disposition of investments 1,659,872 331,888 Foreign exchange gain (loss) on income 53 33 Margin on derivatives (1,748) 705 Foreign exchange gain (loss) on currency 488 - Interest, dividends and other receivables 38 88 Income from securities lending 24 33 Accrued expenses and other liabilities - 9 Other income (loss) 23 - Realized gain (loss) on sales of investments 30,499 19,877 Net cash provided by (used in) operating Realized gain (loss) on derivatives (181) 1,990 activities 45,490 34,651 Change in unrealized appreciation (depreciation) in Cash flows from financing activities the value of investments (17,891) 23,292 Proceeds from sale of units 96,531 67,121 Change in unrealized appreciation (depreciation) in Payments for units redeemed (141,997) (101,930) the value of derivatives (478) 73 Net cash provided by (used in) financing 22,305 54,470 activities (45,466) (34,809) Expenses Administration fees 154 134 Net increase (decrease) in cash 24 (158) Interest expense & bank charges - 1 Cash (bank overdraft) beginning of year 980 1,138 Foreign withholding taxes 1,234 1,227 Cash (bank overdraft) end of year 1,004 980 Transaction costs 7 6 Supplemental information on cash flows from operating activities: 1,395 1,368 Interest received, net of foreign withholding taxes 817 7 Increase (decrease) in net assets attributable Dividends received, net of foreign withholding taxes 7,393 8,020 to contractholders 20,910 53,102 Interest paid - 1 Increase (decrease) in net assets attributable to contractholders per unit Group pension units 1.52 3.69

The accompanying notes are an integral part of the financial statements.

23 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) Industrials 8.4% 8,015 3M Co. 794 2,086 EQUITIES 97.4% 1,981 A. O. Smith Corp. 137 116 United States 93.7% 1,687 Alaska Air Group, Inc. 142 140 Energy 4.9% 5,616 American Airlines Group, Inc. 393 246 6,945 Anadarko Petroleum Corp. 437 416 3,177 AMETEK, Inc. 159 294 5,241 Apache Corp. 460 188 5,891 Arconic, Inc. 350 136 7,084 Baker Hughes, a GE Co. 367 208 8,119 Caterpillar, Inc. 638 1,409 5,916 Cabot Oil & Gas Corp. 112 181 1,898 CH Robinson Worldwide, Inc. 120 218 26,307 Chevron Corp. 2,362 3,909 1,198 Cintas Corp. 58 275 1,306 Cimarex Energy Co. 196 110 2,865 Copart, Inc. 212 187 2,744 Concho Resources, Inc. 400 385 11,042 CSX Corp. 202 937 15,853 ConocoPhillips 1,032 1,350 2,033 Cummins, Inc. 121 371 6,451 Devon Energy Corp. 404 199 4,431 Deere & Co. 350 903 2,124 Diamondback Energy, Inc. 312 269 8,620 Delta Air Lines, Inc. 220 588 7,985 EOG Resources, Inc. 460 951 2,024 Dover Corp. 107 196 58,289 Exxon Mobil Corp. 4,619 5,429 8,611 Emerson Electric Co. 440 703 12,055 Halliburton Co. 453 438 1,650 Equifax, Inc. 72 210 1,493 Helmerich & Payne, Inc. 70 98 2,389 Expeditors International of Washington, Inc. 113 222 3,449 Hess Corp. 227 191 3,932 Fastenal Co. 132 281 2,165 HollyFrontier Corp. 207 151 3,333 FedEx Corp. 353 734 26,190 Kinder Morgan, Inc. 1,053 550 1,794 Flowserve Corp. 60 93 11,454 Marathon Oil Corp. 370 224 1,927 Fluor Corp. 104 85 9,510 Marathon Petroleum Corp. 476 766 4,048 Fortive Corp. 265 374 5,242 National Oilwell Varco, Inc. 286 184 1,951 Fortune Brands Home & Security, Inc. 142 101 2,739 Newfield Exploration Co. 152 55 3,834 General Dynamics Corp. 308 823 6,620 Noble Energy, Inc. 276 170 119,774 General Electric Co. 3,689 1,238 10,396 Occidental Petroleum Corp. 706 871 1,610 Harris Corp. 97 296 5,687 ONEOK, Inc. 283 419 10,196 Honeywell International, Inc. 617 1,840 5,852 Phillips 66 231 688 594 Huntington Ingalls Industries, Inc. 170 154 2,357 Pioneer Natural Resources Co. 258 423 4,201 Illinois Tool Works, Inc. 239 727 5,856 Valero Energy Corp. 243 600 1,634 Jacobs Engineering Group, Inc. 107 130 16,700 Williams Cos., Inc. 566 503 1,198 JB Hunt Transport Services, Inc. 126 152 17,018 19,926 1,400 Kansas City Southern 163 183 1,089 L3 Technologies, Inc. 111 258 Materials 2.1% 3,406 Lockheed Martin Corp. 363 1,218 3,023 Air Products & Chemicals, Inc. 310 661 4,213 Masco Corp. 104 168 1,450 Albemarle Corp. 150 153 3,748 Norfolk Southern Corp. 220 766 1,198 Avery Dennison Corp. 68 147 2,386 Northrop Grumman Corp. 204 798 4,649 Ball Corp. 96 292 4,803 PACCAR, Inc. 210 375 1,840 Celanese Corp. 217 226 1,833 Parker-Hannifin Corp. 129 373 3,199 CF Industries Holdings, Inc. 80 190 2,039 Quanta Services, Inc. 53 84 31,613 DowDuPont, Inc. 1,369 2,309 3,926 Raytheon Co. 253 822 1,936 Eastman Chemical Co. 78 193 2,986 Republic Services, Inc. 92 294 3,503 Ecolab, Inc. 209 705 1,678 Robert Half International, Inc. 58 131 1,845 FMC Corp. 68 186 1,662 Rockwell Automation, Inc. 104 342 19,854 Freeport-McMoRan, Inc. 562 280 2,011 Rollins, Inc. 105 99 1,394 International Flavors & Fragrances, Inc. 113 256 1,427 Roper Industries, Inc. 135 519 5,602 International Paper Co. 208 309 773 Snap-on, Inc. 41 153 863 Martin Marietta Materials, Inc. 125 203 6,974 Southwest Airlines Co. 114 443 4,859 Mosaic Co. 261 194 2,071 Stanley Black & Decker, Inc. 145 339 7,308 Newmont Mining Corp. 347 346 3,343 Textron, Inc. 127 210 4,334 Nucor Corp. 223 307 7,272 The Boeing Co. 612 3,203 1,295 Packaging Corporation of America 177 148 672 TransDigm Group, Inc. 237 312 3,316 PPG Industries, Inc. 139 463 10,153 Union Pacific Corp. 417 1,917 2,176 Sealed Air Corp. 58 103 3,138 United Continental Holdings, Inc. 238 359 1,134 The Sherwin-Williams Co. 119 609 9,571 United Parcel Service, Inc., Class B 809 1,275 1,812 Vulcan Materials Co. 122 244 1,105 United Rentals, Inc. 144 155 3,495 WestRock Co. 265 180 11,174 United Technologies Corp. 922 1,625 5,364 8,704 2,257 Verisk Analytics, Inc., Class A 241 336

The accompanying notes are an integral part of the financial statements.

24 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 5,404 Waste Management, Inc. 225 657 2,610 Under Armour, Inc., Class C 139 58 633 WW Grainger, Inc. 70 244 4,494 VF Corp. 126 438 2,461 Xylem, Inc. 71 224 885 Whirlpool Corp. 80 129 1,340 Wynn Resorts Ltd. 143 181 17,754 34,147 4,303 Yum! Brands, Inc. 182 540 Consumer Discretionary 9.3% 13,251 37,898 996 Advance Auto Parts, Inc. 201 214 5,655 Amazon.com, Inc. 1,671 11,601 Consumer Staples 7.2% 347 AutoZone, Inc. 77 397 25,885 Altria Group, Inc. 1,286 1,746 3,225 Best Buy Co., Inc. 137 233 7,737 Archer-Daniels-Midland Co. 268 433 638 Booking Holdings, Inc. 252 1,501 2,309 Brown-Forman Corp., Class B 59 150 2,862 BorgWarner, Inc. 104 136 2,636 Campbell Soup Co. 109 119 2,419 CarMax, Inc. 65 207 3,407 Church & Dwight Co., Inc. 203 306 335 Chipotle Mexican Grill, Inc. 92 198 11,939 Colgate-Palmolive Co. 545 971 1,700 Darden Restaurants, Inc. 77 232 6,689 Conagra Brands, Inc. 197 195 3,610 Dollar General Corp. 202 533 2,283 Constellation Brands, Inc. 103 502 3,293 Dollar Tree, Inc. 190 406 6,036 Costco Wholesale Corp. 494 1,679 4,702 DR Horton, Inc. 122 223 6,174 Coty, Inc. 192 55 12,462 eBay, Inc. 449 478 3,027 Estee Lauder Cos., Inc. 137 538 1,629 Expedia, Inc. 128 251 8,240 General Mills, Inc. 308 438 1,602 Foot Locker, Inc. 133 116 1,942 Hershey Co. 112 284 53,985 Ford Motor Co. 660 564 3,726 Hormel Foods Corp. 52 217 2,973 Gap, Inc. 76 105 3,467 Kellogg Co. 192 270 18,075 General Motors Co. 701 826 4,763 Kimberly-Clark Corp. 356 741 2,010 Genuine Parts Co. 104 264 8,584 Kraft Heinz Co. 775 505 2,816 H&R Block, Inc. 65 98 2,001 Lamb Weston Holdings, Inc. 204 201 4,940 Hanesbrands, Inc. 209 84 1,682 McCormick & Co., Inc. 86 320 2,282 Harley-Davidson, Inc. 110 106 2,564 Molson Coors Brewing Co. 155 197 1,600 Hasbro, Inc. 61 178 20,017 Mondelez International, Inc., Class A 642 1,094 4,085 Hilton Worldwide Holdings, Inc. 376 401 5,510 Monster Beverage Corp. 159 370 2,285 Kohl’s Corp. 131 207 19,435 PepsiCo, Inc. 1,409 2,933 3,128 L Brands, Inc. 106 110 21,401 Philip Morris International, Inc. 1,387 1,951 1,783 Leggett & Platt, Inc. 46 87 6,598 Sysco Corp. 229 565 4,068 Lennar Corp., Class A 195 217 1,755 The Clorox Co. 132 370 4,358 LKQ Corp. 181 141 52,745 The Coca-Cola Co. 1,857 3,411 11,057 Lowe’s Cos., Inc. 352 1,395 1,558 The JM Smucker Co. 123 199 4,207 Macy’s, Inc. 136 171 11,020 The Kroger Co. 171 414 3,901 Marriott International, Inc., Class A 235 578 34,300 The Procter & Gamble Co. 2,467 4,306 4,716 Mattel, Inc. 124 64 4,054 Tyson Foods, Inc., Class A 105 296 10,613 McDonald’s Corp. 704 2,574 11,069 Walgreens Boots Alliance, Inc. 551 1,033 6,883 MGM Resorts International 294 228 19,605 Wal-Mart Stores, Inc. 1,213 2,494 869 Mohawk Industries, Inc. 138 139 16,278 29,303 5,957 Newell Rubbermaid, Inc. 254 151 17,545 Nike, Inc., Class B 384 1,777 Health Care 14.3% 1,571 Nordstrom, Inc. 64 100 24,179 Abbott Laboratories 1,352 2,389 1,104 O’Reilly Automotive, Inc. 61 519 20,709 AbbVie, Inc. 918 2,607 3,581 PulteGroup, Inc. 59 127 625 ABIOMED, Inc. 312 277 1,051 PVH Corp. 131 133 4,410 Agilent Technologies, Inc. 167 406 757 Ralph Lauren Corp. 76 107 3,082 Alexion Pharmaceuticals, Inc. 361 410 5,122 Ross Stores, Inc. 115 582 1,002 Align Technology, Inc. 200 287 17,085 Starbucks Corp. 330 1,503 2,156 AmerisourceBergen Corp. 69 219 4,032 Tapestry, Inc. 165 186 8,771 Amgen, Inc. 631 2,332 7,166 Target Corp. 409 647 3,562 Anthem, Inc. 272 1,278 3,248 The Goodyear Tire & Rubber Co. 73 90 6,807 Baxter International, Inc. 388 612 15,553 The Home Depot, Inc. 785 3,650 3,692 Becton Dickinson and Co. 485 1,136 17,044 The TJX Cos., Inc. 203 1,041 2,773 Biogen, Inc. 255 1,140 1,493 Tiffany & Co. 78 164 19,051 Boston Scientific Corp. 316 920 1,669 Tractor Supply Co. 133 190 22,472 Bristol-Myers Squibb Co. 854 1,595 778 Ulta Salon Cosmetics & Fragrance, Inc. 204 260 4,102 Cardinal Health, Inc. 251 250 2,554 Under Armour, Inc., Class A 153 62 9,637 Celgene Corp. 389 844

The accompanying notes are an integral part of the financial statements.

25 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 2,836 Centene Corp. 277 447 2,073 Cincinnati Financial Corp. 90 219 4,564 Cerner Corp. 161 327 33,631 Citigroup, Inc. 2,662 2,391 5,241 Cigna Corp. 632 1,359 6,421 Citizens Financial Group, Inc. 195 261 17,807 CVS Health Corp. 993 1,593 4,926 CME Group, Inc. 509 1,266 8,490 Danaher Corp. 454 1,196 2,229 Comerica, Inc. 111 209 1,738 DaVita, Inc. 62 122 4,627 Discover Financial Services 111 373 3,047 Dentsply Sirona, Inc. 167 155 3,492 E*TRADE Financial Corp. 98 209 2,888 Edwards Lifesciences Corp. 143 604 9,004 Fifth Third Bancorp 205 289 12,981 Eli Lilly & Co. 775 2,052 2,303 First Republic Bank 273 273 17,807 Gilead Sciences, Inc. 523 1,521 4,088 Franklin Resources, Inc. 149 166 3,698 HCA Holdings, Inc. 344 629 14,620 Huntington Bancshares, Inc. 165 238 2,098 Henry Schein, Inc. 185 225 7,856 Intercontinental Exchange, Inc. 298 808 3,728 Hologic, Inc. 172 209 3,808 Jefferies Financial Group, Inc. 123 90 1,887 Humana, Inc. 120 738 45,789 JPMorgan Chase & Co. 2,236 6,105 1,187 IDEXX Laboratories, Inc. 189 302 14,214 KeyCorp 221 287 2,024 Illumina, Inc. 488 829 2,969 Lincoln National Corp. 138 208 2,418 Incyte Corp. 417 210 3,809 Loews Corp. 150 237 1,572 Intuitive Surgical, Inc. 229 1,028 1,933 M&T Bank Corp. 214 378 2,180 IQVIA Holdings, Inc. 263 346 6,918 Marsh & McLennan Cos., Inc. 265 754 36,923 Johnson & Johnson 2,802 6,508 13,557 MetLife, Inc. 648 760 1,396 Laboratory Corp. of America Holdings 127 241 2,287 Moody’s Corp. 109 437 2,690 McKesson Corp. 191 406 18,007 Morgan Stanley 755 975 35,803 Merck & Co., Inc. 1,650 3,736 1,217 MSCI, Inc. 227 245 345 Mettler-Toledo International, Inc. 183 266 1,578 Nasdaq, Inc. 56 176 2,428 Nektar Therapeutics 319 109 3,059 Northern Trust Corp. 205 349 1,518 PerkinElmer, Inc. 46 163 5,212 People’s United Financial, Inc. 101 103 79,588 Pfizer, Inc. 2,217 4,745 3,629 Principal Financial Group, Inc. 157 219 1,872 Quest Diagnostics, Inc. 106 213 8,038 Progressive Corp. 206 662 1,070 Regeneron Pharmaceuticals, Inc. 289 546 5,677 Prudential Financial, Inc. 381 632 1,956 ResMed, Inc. 193 304 1,758 Raymond James Financial, Inc. 185 179 4,274 Stryker Corp. 317 915 14,255 Regions Financial Corp. 207 260 673 The Cooper Cos., Inc. 164 234 3,463 S&P Global, Inc. 188 804 5,543 Thermo Fisher Scientific, Inc. 428 1,694 5,246 State Street Corp. 347 452 13,247 UnitedHealth Group, Inc. 791 4,507 6,191 SunTrust Banks, Inc. 291 427 1,180 Universal Health Services, Inc. 148 188 729 SVB Financial Group 252 189 1,254 Varian Medical Systems, Inc. 73 194 9,107 Synchrony Financial 372 292 3,520 Vertex Pharmaceuticals, Inc. 321 797 3,299 T. Rowe Price Group, Inc. 180 416 1,040 Waters Corp. 68 268 16,553 The Charles Schwab Corp. 378 939 685 WellCare Health Plans, Inc. 269 221 4,764 The Goldman Sachs Group, Inc. 772 1,087 2,816 Zimmer Biomet Holdings, Inc. 240 399 4,911 The Hartford Financial Services Group, Inc. 249 298 6,603 Zoetis, Inc. 249 771 6,361 The PNC Financial Services Group, Inc. 440 1,016 3,643 The Travelers Cos., Inc. 210 596 25,005 58,019 1,420 Torchmark Corp. 41 145 Financials 12.4% 20,915 U.S. Bancorp 700 1,305 732 Affiliated Managers Group, Inc. 161 97 2,997 Unum Group 78 120 10,453 Aflac, Inc. 284 650 58,333 Wells Fargo & Co. 2,021 3,671 4,743 Allstate Corp. 240 535 2,664 Zions Bancorporation 110 148 9,644 American Express Co. 515 1,256 28,589 50,451 12,172 American International Group, Inc. 1,474 655 1,917 Ameriprise Financial, Inc. 95 273 Information Technology 19.0% 2,542 Arthur J Gallagher & Co. 164 256 6,722 Adobe Systems, Inc. 352 2,077 723 Assurant, Inc. 41 88 12,111 Advanced Micro Devices, Inc. 219 305 125,684 Bank of America Corp. 2,775 4,230 2,243 Akamai Technologies, Inc. 96 187 12,532 Bank of New York Mellon Corp. 494 806 647 Alliance Data Systems Corp. 181 133 10,611 BB&T Corp. 408 628 4,151 Amphenol Corp., Class A 114 459 26,786 Berkshire Hathaway, Inc., Class B 2,775 7,470 5,092 Analog Devices, Inc. 320 597 1,673 BlackRock, Inc. 380 898 1,155 ANSYS, Inc. 189 226 1,642 Brighthouse Financial, Inc. 126 68 62,074 Apple, Inc. 2,307 13,373 6,516 Capital One Financial Corp. 410 673 13,560 Applied Materials, Inc. 280 606 1,532 Cboe Global Markets, Inc. 168 205 713 Arista Networks, Inc. 282 205

The accompanying notes are an integral part of the financial statements.

26 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 3,019 Autodesk, Inc. 157 530 4,236 Alphabet, Inc., Class C 2,935 5,992 6,028 Automatic Data Processing, Inc. 329 1,080 100,219 AT&T, Inc. 3,906 3,907 5,692 Broadcom Ltd. 774 1,977 4,638 CBS Corp., Class B 140 277 1,624 Broadridge Financial Solutions, Inc. 244 214 13,026 CenturyLink, Inc. 417 270 3,875 Cadence Design Systems, Inc. 181 230 2,428 Charter Communications, Inc. 868 945 61,906 Cisco Systems, Inc. 1,649 3,664 62,521 Comcast Corp., Class A 1,086 2,908 1,766 Citrix Systems, Inc. 84 247 2,147 Discovery Communications, Inc., Class A 83 73 7,995 Cognizant Technology Solutions Corp. 240 693 4,921 Discovery Communications, Inc., Class C 186 155 11,003 Corning, Inc. 249 454 3,140 DISH Network Corp. 256 107 3,852 DXC Technology Co. 360 280 4,176 Electronic Arts, Inc. 204 450 833 F5 Networks, Inc. 108 184 33,080 Facebook, Inc. 2,763 5,923 4,505 Fidelity National Information Services, Inc. 227 631 5,259 Interpublic Group of Cos., Inc. 75 148 5,488 Fiserv, Inc. 85 551 6,005 Netflix, Inc. 304 2,195 1,227 FleetCor Technologies, Inc. 358 311 5,442 News Corp., Class A 90 84 1,892 FLIR Systems, Inc. 65 113 1,559 News Corp., Class B 26 25 1,994 Fortinet, Inc. 206 192 3,074 Omnicom Group, Inc. 150 307 1,244 Gartner, Inc. 182 217 1,560 Take-Two Interactive Software, Inc. 219 219 2,168 Global Payments, Inc. 209 305 1,402 TripAdvisor, Inc. 47 103 19,606 Hewlett Packard Enterprise Co. 388 354 14,536 Twenty-First Century Fox, Inc., Class A 307 955 21,818 HP, Inc. 871 610 6,730 Twenty-First Century Fox, Inc., Class B 240 439 62,836 Intel Corp. 1,744 4,028 9,958 Twitter, Inc. 515 391 12,505 International Business Machines Corp. 1,660 1,941 56,902 Verizon Communications, Inc. 2,627 4,369 3,573 Intuit, Inc. 184 961 4,843 Viacom, Inc., Class B 234 170 494 IPG Photonics Corp. 154 76 20,500 Walt Disney Co. 982 3,070 1,076 Jack Henry & Associates, Inc. 201 186 21,823 40,026 4,724 Juniper Networks, Inc. 120 174 2,562 Keysight Technologies, Inc. 196 217 Utilities 3.3% 2,106 KLA-Tencor Corp. 102 257 9,072 AES Corp. 155 179 2,136 Lam Research Corp. 123 397 3,270 Alliant Energy Corp. 168 189 12,515 MasterCard, Inc., Class A 504 3,225 3,344 Ameren Corp. 149 298 3,796 Maxim Integrated Products, Inc. 282 264 6,793 American Electric Power Co., Inc. 312 693 3,269 Microchip Technology, Inc. 155 321 2,475 American Water Works Co., Inc. 227 307 15,423 Micron Technology, Inc. 272 668 6,911 CenterPoint Energy, Inc. 147 266 106,417 Microsoft Corp. 4,042 14,763 3,882 CMS Energy Corp. 90 263 2,252 Motorola Solutions, Inc. 148 354 4,298 Consolidated Edison, Inc. 242 449 3,470 NetApp, Inc. 123 283 9,041 Dominion Resources, Inc. 490 882 8,399 NVIDIA Corp. 406 1,531 2,515 DTE Energy Co. 141 379 37,034 Oracle Corp. 1,003 2,284 9,817 Duke Energy Corp. 661 1,157 4,386 Paychex, Inc. 170 390 4,464 Edison International 208 346 16,218 PayPal Holdings, Inc. 903 1,863 2,511 Entergy Corp. 215 295 1,722 Qorvo, Inc. 175 143 3,633 Evergy, Inc. 254 282 16,689 QUALCOMM, Inc. 851 1,297 4,342 Eversource Energy 157 386 2,430 Red Hat, Inc. 96 583 13,322 Exelon Corp. 678 821 10,533 Salesforce.com, Inc. 536 1,970 6,674 FirstEnergy Corp. 332 342 2,452 Skyworks Solutions, Inc. 290 224 6,581 NextEra Energy, Inc. 512 1,562 8,797 Symantec Corp. 219 227 5,018 NiSource, Inc. 122 174 2,070 Synopsys, Inc. 198 238 3,994 NRG Energy, Inc. 103 216 13,222 Texas Instruments, Inc. 490 1,707 7,086 PG&E Corp. 343 230 6,128 The Western Union Co. 129 143 1,534 Pinnacle West Capital Corp. 73 179 2,300 Total System Services, Inc. 64 255 9,927 PPL Corp. 340 384 1,471 VeriSign, Inc. 84 298 6,980 Public Service Enterprise Group, Inc. 265 496 24,195 Visa, Inc., Class A 758 4,360 1,955 SCANA Corp. 87 128 3,991 Western Digital Corp. 197 202 3,772 Sempra Energy 276 557 2,862 Xerox Corp. 153 77 14,168 The Southern Co. 621 850 3,499 Xilinx, Inc. 132 407 4,364 WEC Energy Group, Inc. 176 413 7,083 Xcel Energy, Inc. 194 477 28,170 77,319 7,738 13,200 Communication Services 9.9% 10,509 Activision Blizzard, Inc. 519 668 Real Estate 2.9% 4,117 Alphabet, Inc., Class A 2,644 5,876 1,483 Alexandria Real Estate Equities, Inc. 222 233

The accompanying notes are an integral part of the financial statements.

27 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 6,065 American Tower Corp., Class A 418 1,310 3,031 Norwegian Cruise Line Holdings Ltd. 218 175 2,156 Apartment Investment & Management Co. 57 129 2,348 Royal Caribbean Cruises Ltd. 225 314 1,909 AvalonBay Communities, Inc. 260 454 1,097 1,415 2,115 Boston Properties, Inc. 212 325 4,403 CBRE Group, Inc. 104 241 Health Care 0.8% 5,713 Crown Castle International Corp. 440 848 4,372 Allergan PLC 942 798 2,851 Digital Realty Trust, Inc. 366 415 18,503 Medtronic PLC 1,237 2,299 4,896 Duke Realty Corp. 170 173 7,066 Mylan NV 226 265 1,107 Equinix, Inc. 396 533 1,725 Perrigo Co. PLC 222 91 5,088 Equity Residential 268 459 2,627 3,453 905 Essex Property Trust, Inc. 182 303 1,733 Extra Space Storage, Inc. 216 214 Financials 0.6% 1,007 Federal Realty Investment Trust 208 162 3,324 Aon PLC 182 660 6,586 HCP, Inc. 242 251 6,347 Chubb Ltd. 610 1,120 10,165 Host Hotels & Resorts, Inc. 193 231 559 Everest Re Group Ltd. 189 166 3,922 Iron Mountain, Inc. 142 174 5,630 Invesco Ltd. 145 129 5,776 Kimco Realty Corp. 151 116 1,792 Willis Towers Watson PLC 315 371 1,450 Macerich Co. 103 86 1,441 2,446 1,559 Mid-America Apartment Communities, Inc. 185 204 Information Technology 0.6% 8,672 Prologis, Inc. 370 696 8,779 Accenture PLC, Class A 667 1,691 2,067 Public Storage 246 571 3,580 Seagate Technology PLC 113 188 4,069 Realty Income Corp. 270 350 4,724 TE Connectivity Ltd. 191 488 2,322 Regency Centers Corp. 210 186 1,556 SBA Communications Corp. 300 344 971 2,367 4,260 Simon Property Group, Inc. 484 977 11,083 15,122 1,186 SL Green Realty Corp. 196 128 3,805 UDR, Inc. 178 206 200,029 395,831 4,931 Ventas, Inc. 275 395 SHORT-TERM INVESTMENTS 1.5% 2,372 Vornado Realty Trust 214 201 USD 4,500 Federal Home Loan Bank Discount Notes, 5,176 Welltower, Inc. 323 491 2.13%, Jan 02, 2019 6,145 6,145 10,382 Weyerhaeuser Co. 355 310 Investments 206,174 401,976 7,956 11,716 Transaction costs (2) 188,946 380,709 Total investments 206,172 401,976 Global 3.7% Derivative assets 0.0% 19 Energy 0.3% Derivative liabilities (0.1%) (464) 19,072 Schlumberger Ltd. 1,413 940 Other assets less liabilities 1.2% 4,848 5,854 TechnipFMC PLC 266 156 Net assets attributable to 1,679 1,096 contractholders 100.0% 406,379 Materials 0.5% 7,586 Linde PLC 1,121 1,617 4,330 LyondellBasell Industries NV 252 492 1,373 2,109 Industrials 0.6% 1,302 Allegion PLC 64 142 5,979 Eaton Corp. PLC 280 561 4,948 IHS Markit Ltd. 308 324 3,392 Ingersoll-Rand PLC 176 423 12,767 Johnson Controls International PLC 752 517 4,882 Nielsen Holdings PLC 210 155 2,211 Pentair PLC 105 114 1,895 2,236 Consumer Discretionary 0.3% 3,627 Aptiv PLC 157 305 5,525 Carnival Corp. 248 372 1,649 Garmin Ltd. 74 143 2,046 Michael Kors Holdings Ltd. 175 106

The accompanying notes are an integral part of the financial statements.

28 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE US EQUITY INDEX FUND (MANULIFE ASSET MANAGEMENT)

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Equities United States Energy 4.9 5.4 Materials 2.1 2.7 Industrials 8.4 9.2 Consumer Discretionary 9.3 11.3 Consumer Staples 7.2 7.9 Health Care 14.3 12.4 Financials 12.4 13.5 Information Technology 19.0 21.8 Communication Services 9.9 2.0 Utilities 3.3 2.8 Real Estate 2.9 2.8 Global Energy 0.3 0.5 Materials 0.5 0.2 Industrials 0.6 0.6 Consumer Discretionary 0.3 0.4 Health Care 0.8 0.8 Financials 0.6 0.6 Information Technology 0.6 1.0 Short-Term Investments 1.5 3.7 Derivative liabilities (0.1) - Other assets less liabilities 1.2 0.4 100.0 100.0

FUTURES CONTRACTS (0.1%) Commitment Unrealized No. of Contract Futures Delivery amount Price as at gain/(loss) contracts price contracts date ($) (’000) December 31, 2018 (CAD $) (’000) 2 USD 2,370.75 Mini-sized S&P 500 future Mar 15, 2019 USD 251 USD 2,505.25 18 1 USD 2,495.50 Mini-sized S&P 500 future Mar 15, 2019 USD 125 USD 2,505.25 1 Derivative assets 19 1 USD 2,549.25 Mini-sized S&P 500 future Mar 15, 2019 USD 125 USD 2,505.25 (3) 5 USD 2,619.25 Mini-sized S&P 500 future Mar 15, 2019 USD 626 USD 2,505.25 (39) 43 USD 2,649.05 Mini-sized S&P 500 future Mar 15, 2019 USD 5,386 USD 2,505.25 (422) Derivative liabilities (464) Total (445)

The accompanying notes are an integral part of the financial statements.

29 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE SLI US EQUITY NON-REGISTERED FUND MANULIFE SLI US EQUITY NON-REGISTERED FUND

Cash flows from operating activities STATEMENTS OF COMPREHENSIVE INCOME Increase (decrease) in net assets attributable to contractholders 96 1,036 For the years ended December 31 2018 2017 Adjustments for: ($ in thousands except for per unit amounts) Change in unrealized foreign exchange gain (loss) on currency (1) - Income Realized gain (loss) on sales of investments (485) (1,036) Interest for allocation purposes 3 - Change in unrealized appreciation (depreciation) in Dividend income 148 128 the value of investments 518 100 Foreign exchange gain (loss) on income 1 (3) Purchases of investments (8,673) (18,771) Foreign exchange gain (loss) on currency 4 - Proceeds from disposition of investments 8,665 19,265 Realized gain (loss) on sales of investments 485 1,036 Interest, dividends and other receivables (3) 2 Change in unrealized appreciation (depreciation) in the value of investments (518) (100) Net cash provided by (used in) operating activities 117 596 123 1,061 Expenses Cash flows from financing activities Administration fees 3 3 Proceeds from sale of units 655 1,107 Foreign withholding taxes 20 17 Payments for units redeemed (835) (1,667) Transaction costs 4 5 Net cash provided by (used in) financing 27 25 activities (180) (560) Increase (decrease) in net assets attributable Change in unrealized foreign exchange gain (loss) to contractholders 96 1,036 on currency 1 - Net increase (decrease) in cash (63) 36 Increase (decrease) in net assets attributable to contractholders per unit Group pension units 0.38 3.99 Cash (bank overdraft) beginning of year 227 191 Cash (bank overdraft) end of year 165 227 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 3 - Dividends received, net of foreign withholding taxes 125 114

The accompanying notes are an integral part of the financial statements.

30 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE SLI US EQUITY NON-REGISTERED FUND MANULIFE SLI US EQUITY NON-REGISTERED FUND

The accompanying notes are an integral part of the financial statements.

31 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE SLI US EQUITY NON-REGISTERED FUND MANULIFE SLI US EQUITY NON-REGISTERED FUND

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Equities United States Energy 3.6 5.6 Materials 4.0 3.5 Industrials 6.6 8.7 Consumer Discretionary 11.0 13.9 Consumer Staples 4.3 6.0 Health Care 15.6 12.9 Financials 8.4 11.1 Information Technology 17.0 22.4 Communication Services 12.7 1.3 Utilities 3.6 2.6 Real Estate 3.7 3.2 Global Energy 0.6 - Industrials 0.5 0.7 Consumer Discretionary - 0.5 Health Care 3.0 2.0 Financials - 0.5 Information Technology 1.4 1.9 Canada Consumer Discretionary 1.5 - Consumer Staples 0.5 0.7 Other assets less liabilities 2.0 2.5 100.0 100.0

The accompanying notes are an integral part of the financial statements.

32 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT BOND FUND MANULIFE ASSET MANAGEMENT BOND FUND

Net assets attributable to contractholders 602,001 793,494 Cash flows from operating activities Net assets attributable to contractholders per unit Increase (decrease) in net assets attributable to Group pension units 612.42 605.76 contractholders 5,248 23,584 Adjustments for: Change in unrealized foreign exchange gain (loss) STATEMENTS OF COMPREHENSIVE INCOME on currency (5) (4) Realized gain (loss) on sales of investments 9,043 2,400 For the years ended December 31 2018 2017 Realized gain (loss) on derivatives 1,248 (559) ($ in thousands except for per unit amounts) Change in unrealized appreciation (depreciation) in the value of investments 6,338 13 Income Change in unrealized appreciation (depreciation) in Interest for allocation purposes 22,888 25,529 the value of derivatives 1,295 (187) Foreign exchange gain (loss) on income - (55) Purchases of investments (2,091,750) (1,200,606) Foreign exchange gain (loss) on currency 443 4 Proceeds from disposition of investments 2,265,609 1,227,115 Income from securities lending 46 49 Margin on derivatives (1,614) (157) Other income (loss) 125 - Realized gain (loss) on sales of investments (9,043) (2,400) Interest, dividends and other receivables 907 410 Realized gain (loss) on derivatives (1,248) 559 Accrued expenses and other liabilities (5) 2 Change in unrealized appreciation (depreciation) in Net cash provided by (used in) operating the value of investments (6,338) (13) activities 196,314 52,011 Change in unrealized appreciation (depreciation) in Cash flows from financing activities the value of derivatives (1,295) 187 Proceeds from sale of units 137,332 156,114 5,578 23,860 Payments for units redeemed (333,413) (208,267) Expenses Net cash provided by (used in) financing Administration fees 243 275 activities (196,081) (52,153) Interest expense & bank charges 2 1 Foreign withholding taxes 85 - Change in unrealized foreign exchange gain (loss) on currency 5 4 330 276 Net increase (decrease) in cash 233 (142) Increase (decrease) in net assets attributable Cash (bank overdraft) beginning of year 140 278 to contractholders 5,248 23,584 Cash (bank overdraft) end of year 378 140 Increase (decrease) in net assets attributable to contractholders per unit Group pension units 4.36 17.17 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 23,710 26,024 Interest paid 2 1

The accompanying notes are an integral part of the financial statements.

33 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT BOND FUND MANULIFE ASSET MANAGEMENT BOND FUND

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) 955 Canadian Imperial Bank of Commerce, 3.30%, May 26, 2025 965 968 BONDS 98.4% 650 Canadian Imperial Bank of Commerce, FRN Canada 90.8% 3.42%, Jan 26, 2026 666 654 Corporate Bonds 44.6% 655 Canadian Imperial Bank of Commerce, FRN 2,122 407 International, Inc., 3.45%, Apr 04, 2028 655 648 5.75%, Feb 14, 2036 2,628 2,628 330 Canadian Western Bank, 2,500 407 International, Inc., 2.88%, Mar 01, 2021 330 329 3.60%, May 21, 2047 2,497 2,421 2,600 Capital Desjardins, Inc., 270 AIMCo Realty Investors LP, 5.19%, May 05, 2020 2,938 2,683 3.37%, Jun 01, 2027 270 273 911 Central 1 Credit Union, 920 Alberta Powerline LP, 1.87%, Mar 16, 2020 911 901 4.07%, Dec 01, 2053 920 942 1,270 Central 1 Credit Union, 1,200 Allied Properties REIT, 2.60%, Nov 07, 2022 1,270 1,244 3.64%, Apr 21, 2025 1,156 1,157 1,240 Chartwell Retirement Residences, 820 AltaGas Ltd., 4.21%, Apr 28, 2025 1,243 1,255 3.98%, Oct 04, 2027 820 790 4,540 Choice Properties LP, 970 AltaGas Ltd., 3.60%, Apr 20, 2020 4,660 4,576 4.99%, Oct 04, 2047 970 881 880 Choice Properties REIT, 2,355 Bank of Montreal, 2.30%, Sep 14, 2020 871 870 1.88%, Mar 31, 2021 2,359 2,314 875 Choice Properties REIT, 3,600 Bank of Montreal, 4.90%, Jul 05, 2023 942 918 2.27%, Jul 11, 2022 3,600 3,532 1,235 Choice Properties REIT, 5,990 Bank of Montreal, 4.29%, Feb 08, 2024 1,235 1,264 2.70%, Sep 11, 2024 5,974 5,903 4,350 CU, Inc., 698 Bank of Montreal, 3.96%, Jul 27, 2045 4,715 4,452 3.12%, Sep 19, 2024 704 700 10 CU, Inc., 650 Bank of Montreal, 3.55%, Nov 22, 2047 10 9 3.32%, Jun 01, 2026 663 652 1,418 Enbridge Southern Lights LP, 740 Bell Canada, Inc., 4.01%, Jun 30, 2040 1,418 1,395 3.25%, Jun 17, 2020 751 745 5,480 Enbridge, Inc., 1,200 Bell Canada, Inc., 3.19%, Dec 05, 2022 5,650 5,466 3.00%, Oct 03, 2022 1,182 1,190 3,315 Enbridge, Inc., FRN 175 Bell Canada, Inc., 5.38%, Sep 27, 2077 3,201 3,063 3.55%, Mar 02, 2026 174 174 2,655 Enbridge, Inc., FRN 1,380 Bell Canada, Inc., 6.63%, Apr 12, 2078 2,724 2,669 3.60%, Sep 29, 2027 1,376 1,358 545 Enercare Solutions, Inc., 1,630 Bell Canada, Inc., 3.38%, Feb 21, 2022 545 543 3.80%, Aug 21, 2028 1,621 1,614 2,250 EPCOR Utilities, Inc., 2,275 Bell Canada, Inc., 4.55%, Feb 28, 2042 2,634 2,513 7.85%, Apr 02, 2031 2,744 3,039 540 EPCOR Utilities, Inc., 400 Bell Canada, Inc., 3.55%, Nov 27, 2047 540 519 4.75%, Sep 29, 2044 396 400 1,150 Fairfax Financial Holdings Ltd., 221 Bell Canada, Inc., 4.70%, Dec 16, 2026 1,146 1,177 4.45%, Feb 27, 2047 211 211 755 Fairfax Financial Holdings Ltd., 1,450 Brookfield Asset Management, Inc., 4.25%, Dec 06, 2027 755 740 3.80%, Mar 16, 2027 1,449 1,398 USD 785 Fairfax Financial Holdings Ltd., 1,055 Brookfield Infrastructure Finance ULC, 4.85%, Apr 17, 2028 987 1,032 3.54%, Oct 30, 2020 1,055 1,066 640 Fédération des caisses Desjardins du Québec, 530 Brookfield Infrastructure Finance ULC, 2.09%, Jan 17, 2022 640 627 3.45%, Mar 11, 2022 530 530 1,660 Fédération des caisses Desjardins du Québec, 1,365 Brookfield Infrastructure Finance ULC, 3.06%, Sep 11, 2023 1,660 1,668 4.19%, Sep 11, 2028 1,365 1,352 2,385 First Capital Realty, Inc., 3,000 Canadian Imperial Bank of Commerce, 5.60%, Apr 30, 2020 2,586 2,468 1.64%, Jul 12, 2021 2,999 2,919 4,300 First Capital Realty, Inc., 1,365 Canadian Imperial Bank of Commerce, 4.50%, Mar 01, 2021 4,766 4,420 2.90%, Sep 14, 2021 1,365 1,370 151 First Nations Finance Authority, 1,315 Canadian Imperial Bank of Commerce, 3.40%, Jun 26, 2024 160 156 2.97%, Jul 11, 2023 1,315 1,317

The accompanying notes are an integral part of the financial statements.

34 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT BOND FUND MANULIFE ASSET MANAGEMENT BOND FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 395 First Nations Finance Authority, 660 National Bank of Canada, FRN 3.05%, Jun 01, 2028 387 395 3.18%, Feb 01, 2028 660 645 650 Ford Credit Canada Co., 250 Newfoundland and Labrador Hydro, 2.71%, Feb 23, 2022 650 617 3.60%, Dec 01, 2045 237 253 2,360 Ford Credit Canada Co., 2,705 North Battleford Power LP, 2.77%, Jun 22, 2022 2,360 2,226 4.96%, Dec 31, 2032 2,705 2,965 655 Ford Credit Canada Co., 664 Northwestconnect Group Partnership, 3.74%, May 08, 2023 655 626 5.95%, Apr 30, 2041 668 785 700 FortisBC Energy, Inc., 950 OMERS Realty Corp., 3.67%, Apr 09, 2046 714 690 3.24%, Oct 04, 2027 950 955 600 FortisBC Energy, Inc., 6,086 Ontario School Boards Financing Corp., 3.85%, Dec 07, 2048 599 608 6.55%, Oct 19, 2026 6,817 6,944 3,395 General Motors Financial of Canada Ltd., 3,255 OPB Finance Trust, 3.08%, May 22, 2020 3,394 3,387 1.88%, Feb 24, 2022 3,176 3,195 480 Greater Toronto Airports Authority, 2,380 Pembina Pipeline Corp., 5.30%, Feb 25, 2041 629 606 2.99%, Jan 22, 2024 2,369 2,315 7,250 Great-West Lifeco, Inc., 1,270 Pembina Pipeline Corp., 4.65%, Aug 13, 2020 8,148 7,481 3.71%, Aug 11, 2026 1,292 1,254 802 H&R REIT, 900 Pembina Pipeline Corp., 4.45%, Mar 02, 2020 827 815 4.02%, Mar 27, 2028 900 895 905 Health Montreal Collective LP, 1,520 Pembina Pipeline Corp., 6.72%, Sep 30, 2049 905 1,164 4.74%, Jan 21, 2047 1,519 1,459 2,680 HSBC Bank Canada, 5,892 PSP Capital, Inc., 2.91%, Sep 29, 2021 2,688 2,679 1.73%, Jun 21, 2022 5,724 5,776 880 HSBC Bank Canada, 4,191 PSP Capital, Inc., 2.17%, Jun 29, 2022 880 855 2.09%, Nov 22, 2023 4,205 4,117 900 HSBC Bank Canada, 14,614 PSP Capital, Inc., 2.54%, Jan 31, 2023 900 881 3.29%, Apr 04, 2024 15,971 15,165 900 Hydro One, Inc., 2,503 PSP Capital, Inc., 3.91%, Feb 23, 2046 926 901 3.00%, Nov 05, 2025 2,499 2,555 935 Hydro One, Inc., 865 Reliance LP, 3.63%, Jun 25, 2049 929 889 3.84%, Mar 15, 2025 865 851 1,028 Hydro-Québec, 3,550 RioCan REIT, 4.00%, Feb 15, 2055 1,253 1,223 3.85%, Jun 28, 2019 3,802 3,573 935 Inter Pipeline Ltd., 2,880 RioCan REIT, 2.73%, Apr 18, 2024 935 891 2.83%, Oct 03, 2022 2,880 2,816 850 Ivanhoe Cambridge II, Inc., 775 Rogers Communications, Inc., 2.91%, Jun 27, 2023 850 850 2.80%, Mar 13, 2019 797 776 4,750 Laurentian Bank of Canada, 4,000 Royal Bank of Canada, 2.81%, Jun 13, 2019 4,749 4,755 1.65%, Jul 15, 2021 3,997 3,894 790 Laurentian Bank of Canada, 2,330 Royal Bank of Canada, 2.50%, Jan 23, 2020 789 787 2.00%, Mar 21, 2022 2,270 2,273 750 Loblaw Cos., Ltd., 1,470 Royal Bank of Canada, 3.92%, Jun 10, 2024 750 764 3.30%, Sep 26, 2023 1,470 1,477 1,745 Manulife Bank of Canada, 3,000 Royal Bank of Canada, 1.92%, Sep 01, 2021 1,745 1,703 2.48%, Jun 04, 2025 2,983 2,981 1,220 Manulife Bank of Canada, 650 Royal Bank of Canada, 2.08%, May 26, 2022 1,220 1,186 3.45%, Sep 29, 2026 666 654 1,140 Manulife Financial Corp., 6,795 Royal Bank of Canada, FRN 3.32%, May 09, 2028 1,140 1,135 3.04%, Jul 17, 2024 6,799 6,808 3,595 Manulife Financial Corp., FRN 1,710 Shaw Communications, Inc., 3.05%, Aug 20, 2029 3,595 3,507 5.50%, Dec 07, 2020 1,901 1,788 2,035 Morguard Corp., 1,830 Shaw Communications, Inc., 4.09%, May 14, 2021 2,044 2,038 3.15%, Feb 19, 2021 1,850 1,830 355 Morguard Corp., 1,451 Shaw Communications, Inc., 4.33%, Sep 15, 2022 357 356 3.80%, Nov 02, 2023 1,451 1,460 2,250 National Bank of Canada, 815 Shaw Communications, Inc., 1.74%, Mar 03, 2020 2,252 2,231 3.80%, Mar 01, 2027 814 798

The accompanying notes are an integral part of the financial statements.

35 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT BOND FUND MANULIFE ASSET MANAGEMENT BOND FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 735 Smart REIT, 470 VW Credit Canada, Inc., 4.05%, Jul 27, 2020 757 746 3.70%, Nov 14, 2022 469 474 150 Smart REIT, 130 Winnipeg Airport Authority, Inc., 3.73%, Jul 22, 2022 151 151 3.66%, Sep 30, 2047 130 130 985 Smart REIT, 273,386 268,611 3.99%, May 30, 2023 1,007 996 485 SNC-Lavalin Group, Inc., Provincial Bonds 33.4% 2.69%, Nov 24, 2020 485 481 11,770 Financement-Québec, 3,105 Sun Life Capital Trust II, 5.25%, Jun 01, 2034 13,145 14,714 5.86%, Dec 31, 2108 3,436 3,193 2,305 Labrador-Island Link Funding Trust, 1,335 Sun Life Financial, Inc., 3.76%, Jun 01, 2033 2,348 2,562 4.57%, Aug 23, 2021 1,334 1,395 2,000 Province of Alberta, 4,565 Sun Life Financial, Inc., 2.55%, Jun 01, 2027 1,987 1,956 2.60%, Sep 25, 2025 4,568 4,544 1,321 Province of Alberta, 1,275 Sun Life Financial, Inc., 2.90%, Dec 01, 2028 1,301 1,320 2.75%, Nov 23, 2027 1,274 1,255 6,083 Province of Alberta, 1,120 Sun Life Financial, Inc., 3.30%, Dec 01, 2046 6,420 6,080 3.05%, Sep 19, 2028 1,096 1,109 179 Province of Alberta, 2,360 TELUS Corp., 3.05%, Dec 01, 2048 175 171 3.60%, Jan 26, 2021 2,421 2,391 1,201 Province of Alberta, 220 TELUS Corp., 3.10%, Jun 01, 2050 1,198 1,162 3.63%, Mar 01, 2028 214 216 3,646 Province of British Columbia, 60 The Bank of Nova Scotia, 2.85%, Jun 18, 2025 3,912 3,712 2.09%, Sep 09, 2020 60 59 4,925 Province of British Columbia, 100 The Bank of Nova Scotia, 6.35%, Jun 18, 2031 7,106 6,712 1.90%, Dec 02, 2021 100 97 3,285 Province of British Columbia, 4,490 The Bank of Nova Scotia, 4.70%, Jun 18, 2037 4,241 4,050 2.36%, Nov 08, 2022 4,438 4,403 1,554 Province of British Columbia, 1,880 The Bank of Nova Scotia, 2.95%, Jun 18, 2050 1,505 1,521 2.98%, Apr 17, 2023 1,878 1,884 772 Province of Manitoba, 5,015 The Bank of Nova Scotia, 2.55%, Jun 02, 2026 768 760 2.29%, Jun 28, 2024 5,015 4,839 2,774 Province of Manitoba, 495 The Empire Life Insurance Co., FRN 2.60%, Jun 02, 2027 2,731 2,723 3.66%, Mar 15, 2028 495 498 7,115 Province of Manitoba, 8,000 The Toronto-Dominion Bank, 4.05%, Sep 05, 2045 7,469 7,977 2.62%, Dec 22, 2021 8,306 7,971 481 Province of Manitoba, 570 The Toronto-Dominion Bank, 3.40%, Sep 05, 2048 483 486 3.23%, Jul 24, 2024 577 578 350 Province of New Brunswick, 1,405 The Toronto-Dominion Bank, 2.35%, Aug 14, 2027 327 335 3.59%, Sep 14, 2028 1,405 1,399 251 Province of New Brunswick, 3,855 The Toronto-Dominion Bank, FRN 3.10%, Aug 14, 2028 250 254 2.69%, Jun 24, 2025 3,867 3,841 3,707 Province of New Brunswick, 1,815 The Toronto-Dominion Bank, FRN 3.10%, Aug 14, 2048 3,607 3,497 3.22%, Jul 25, 2029 1,818 1,767 1,300 Province of Nova Scotia, 3,285 Thomson Reuters Corp., 5.80%, Jun 01, 2033 1,655 1,707 3.31%, Nov 12, 2021 3,287 3,318 1,122 Province of Nova Scotia, 660 Toromont Industries Ltd., 3.45%, Jun 01, 2045 1,153 1,163 3.84%, Oct 27, 2027 660 663 USD 636 Province of Ontario, 325 Toronto Hydro Corp., 3.40%, Oct 17, 2023 824 887 3.49%, Feb 28, 2048 325 311 17,407 Province of Ontario, 855 TransCanada PipeLines Ltd., 3.50%, Jun 02, 2024 19,039 18,242 4.33%, Sep 16, 2047 855 811 21,096 Province of Ontario, 380 TransCanada PipeLines Ltd., 2.60%, Jun 02, 2025 21,284 21,058 4.18%, Jul 03, 2048 380 350 5,029 Province of Ontario, 255 Union Gas Ltd., 2.40%, Jun 02, 2026 4,979 4,925 3.59%, Nov 22, 2047 255 241 1,515 Province of Ontario, 900 VW Credit Canada, Inc., 2.60%, Jun 02, 2027 1,482 1,494 2.90%, Mar 29, 2021 899 894 7,459 Province of Ontario, 2.90%, Jun 02, 2028 7,378 7,508

The accompanying notes are an integral part of the financial statements.

36 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT BOND FUND MANULIFE ASSET MANAGEMENT BOND FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 7,000 Province of Ontario, 1,415 Canadian Government Bond, 5.85%, Mar 08, 2033 9,638 9,247 2.00%, Jun 01, 2028 1,366 1,419 8,975 Province of Ontario, 1,116 Canadian Government Bond, 4.60%, Jun 02, 2039 10,323 10,895 2.25%, Jun 01, 2029 1,135 1,144 6,320 Province of Ontario, 503 Canadian Government Bond, 2.90%, Dec 02, 2046 6,075 5,965 5.75%, Jun 01, 2029 677 680 441 Province of Ontario, 441 Canadian Government Bond, 2.80%, Jun 02, 2048 413 409 5.75%, Jun 01, 2033 623 642 4,054 Province of Ontario, 600 Canadian Government Bond, 2.90%, Jun 02, 2049 3,821 3,840 5.00%, Jun 01, 2037 864 859 10,675 Province of Quebec, 3,837 Canadian Government Bond, 3.50%, Dec 01, 2022 11,629 11,132 3.50%, Dec 01, 2045 5,188 4,855 1,978 Province of Quebec, 809 Canadian Government Bond, 3.75%, Sep 01, 2024 2,068 2,105 1.25%, Dec 01, 2047 1,037 991 2,638 Province of Quebec, 24,631 Canadian Government Bond, 2.75%, Sep 01, 2025 2,601 2,661 2.75%, Dec 01, 2048 26,502 27,698 5,176 Province of Quebec, 2,806 Canadian Government Bond, 2.75%, Sep 01, 2028 5,014 5,168 2.00%, Dec 01, 2051 2,572 2,685 3,800 Province of Quebec, 1,742 Canadian Government Bond, 6.00%, Oct 01, 2029 5,166 4,896 2.75%, Dec 01, 2064 1,988 2,046 1,100 Province of Quebec, 250 Canadian Government Real Return Bond, 6.25%, Jun 01, 2032 1,508 1,499 4.25%, Dec 01, 2026 499 489 13,235 Province of Quebec, 260 Canadian Government Real Return Bond, 5.00%, Dec 01, 2038 15,430 16,917 0.50%, Dec 01, 2050 258 248 1,768 Province of Quebec, 1,180 CPPIB Capital, Inc., 3.50%, Dec 01, 2045 1,991 1,880 3.00%, Jun 15, 2028 1,180 1,198 2,019 Province of Quebec, 750 Export Development Canada, 3.50%, Dec 01, 2048 2,178 2,162 1.80%, Sep 01, 2022 749 741 602 Province of Saskatchewan, 62,050 63,351 3.05%, Dec 02, 2028 597 611 1,000 Province of Saskatchewan, Municipal Bonds 2.3% 3.90%, Jun 02, 2045 1,169 1,110 351 City of Montreal, 1,262 Province of Saskatchewan, 3.00%, Sep 01, 2027 349 351 2.75%, Dec 02, 2046 1,187 1,141 718 City of Montreal, 2,017 Province of Saskatchewan, 3.15%, Sep 01, 2028 708 722 3.30%, Jun 02, 2048 2,042 2,034 715 City of Montreal, 154 Province of Saskatchewan, 3.50%, Dec 01, 2038 716 717 3.10%, Jun 02, 2050 153 150 1,000 City of Ottawa, 4.60%, Jul 14, 2042 1,282 1,187 199,770 200,798 1,313 City of Ottawa, Federal Bonds 10.5% 3.10%, Jul 27, 2048 1,265 1,230 2,298 Canada Housing Trust No. 1, 1,314 City of Toronto, 2.55%, Dec 15, 2023 2,307 2,323 3.50%, Jun 02, 2036 1,313 1,326 3,000 Canada Housing Trust No. 1, 800 City of Toronto, 1.90%, Sep 15, 2026 2,861 2,886 3.20%, Aug 01, 2048 798 758 1,023 Canada Housing Trust No. 1, 446 City of Vancouver, 2.35%, Jun 15, 2027 1,004 1,014 3.10%, Sep 21, 2028 446 451 43 Canada Housing Trust No. 1, 976 City of Winnipeg, 2.65%, Mar 15, 2028 42 44 5.20%, Jul 17, 2036 973 1,194 8,388 Canada Housing Trust No. 1, 1,291 Municipal Finance Authority of British 2.65%, Dec 15, 2028 8,331 8,483 Columbia, 460 Canadian Government Bond, 2.80%, Dec 03, 2023 1,290 1,306 1.00%, Sep 01, 2022 437 446 1,162 Municipal Finance Authority of British 1,690 Canadian Government Bond, Columbia, 1.75%, Mar 01, 2023 1,666 1,681 4.95%, Dec 01, 2027 1,193 1,349 455 Canadian Government Bond, 463 Regional Municipality of Peel, 2.50%, Jun 01, 2024 463 469 2.30%, Nov 02, 2026 461 443 320 Canadian Government Bond, 1.50%, Jun 01, 2026 301 310

The accompanying notes are an integral part of the financial statements.

37 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT BOND FUND MANULIFE ASSET MANAGEMENT BOND FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 1,393 Regional Municipality of Peel, 706 International Bank for Reconstruction & 5.10%, Jun 29, 2040 1,642 1,747 Development, 762 South Coast British Columbia Transportation 2.25%, Jan 17, 2023 702 706 Authority, 1,103 International Bank for Reconstruction & 3.25%, Nov 23, 2028 761 777 Development, 13,197 13,558 2.50%, Aug 03, 2023 1,099 1,117 827 International Finance Corp., 548,403 546,318 2.38%, Jul 19, 2023 823 830 United States 6.5% 4,633 4,901 Corporate Bonds 5.4% 1,380 AT&T, Inc., Corporate Bonds 0.3% 4.00%, Nov 25, 2025 1,376 1,376 975 BP Capital Markets PLC, 3,585 Bank of America Corp., FRN 3.47%, May 15, 2025 975 977 2.60%, Mar 15, 2023 3,556 3,515 700 HSBC Holdings PLC, 1,255 Bank of America Corp., FRN 3.20%, Dec 05, 2023 693 690 3.30%, Apr 24, 2024 1,255 1,248 300 Transurban Finance Co. Pty Ltd., 4,540 Bank of America Corp., FRN 4.56%, Nov 14, 2028 300 314 3.41%, Sep 20, 2025 4,523 4,500 1,968 1,981 3,770 Citigroup, Inc., 6,601 6,882 3.39%, Nov 18, 2021 3,775 3,803 USD 400 Great-West Lifeco Finance 2018 LP, 594,233 592,264 4.05%, May 17, 2028 511 556 SHORT-TERM INVESTMENTS 1.0% 1,280 JPMorgan Chase & Co., USD 3,300 Federal Home Loan Bank Discount Notes, 3.19%, Mar 05, 2021 1,287 1,290 2.13%, Jan 02, 2019 4,506 4,506 1,690 Metropolitan Life Global Funding I, 1,260 Merit Trust, 3.03%, Jun 11, 2020 1,758 1,699 1.95%, Jan 02, 2019 1,260 1,260 5,350 Morgan Stanley, 5,766 5,766 3.00%, Feb 07, 2024 5,349 5,210 1,520 The Goldman Sachs Group, Inc., FRN Total investments 599,999 598,030 3.31%, Oct 31, 2025 1,520 1,475 Derivative assets 0.0% 108 3,370 Wells Fargo & Co., Derivative liabilities (0.2%) (1,139) 2.22%, Mar 15, 2021 3,403 3,315 Other assets less liabilities 0.8% 5,002 4,680 Wells Fargo & Co., Net assets attributable to 2.09%, Apr 25, 2022 4,678 4,527 contractholders 100.0% 602,001 32,991 32,514 Federal Bonds 1.1% CONCENTRATION RISK USD 1,854 United States Treasury Note, The following table summarizes the Fund’s concentration risk. 2.88%, Aug 15, 2028 2,414 2,572 % of net assets attributable to USD 946 United States Treasury Note, contractholders 2.25%, Aug 15, 2046 1,144 1,104 Portfolio by category December 31, 2018 December 31, 2017 USD 410 United States Treasury Note, Bonds 3.00%, May 15, 2047 539 558 Canada USD 102 United States Treasury Note, Corporate Bonds 44.6 40.5 2.75%, Nov 15, 2047 130 132 Provincial Bonds 33.4 31.6 USD 1,606 United States Treasury Note, Federal Bonds 10.5 16.1 3.00%, Aug 15, 2048 2,011 2,184 Municipal Bonds 2.3 3.8 United States 6,238 6,550 Corporate Bonds 5.4 3.9 39,229 39,064 Federal Bonds 1.1 0.4 Global 1.1% Global Supranational Bonds 0.8 0.2 Supranational Bonds 0.8% Corporate Bonds 0.3 0.5 704 European Investment Bank, Short-Term Investments 1.0 2.4 2.38%, Jan 18, 2023 702 708 Derivative liabilities (0.2) - 1,390 Inter-American Development Bank, Other assets less liabilities 0.8 0.6 4.40%, Jan 26, 2026 1,307 1,540 100.0 100.0

The accompanying notes are an integral part of the financial statements.

38 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT BOND FUND

FORWARD FOREIGN CURRENCY CONTRACTS (0.1%) Purchased currency Sold currency Valueasat Valueasat Unrealized Counter- Settlement December 31, 2018 December 31, 2018 gain/loss party credit Contract price date Currency ($) (’000) Currency ($) (’000) ($) (’000) Counterparty rating USD 0.75470 Jan 31, 2019 USD 3,685 CAD 3,578 107 Royal Bank of Canada AA- Derivative assets 107 CAD 1.34703 Jan 31, 2019 CAD 1,215 USD 1,231 (16) Royal Bank of Canada AA- CAD 1.31881 Jan 31, 2019 CAD 15,624 USD 16,168 (544) Royal Bank of Canada AA- Derivative liabilities (560) Total (453) FUTURES CONTRACTS (0.1%) Commitment Unrealized No. of Contract Futures Delivery amount Price as at gain/(loss) contracts price contracts date ($) (’000) December 31, 2018 (CAD $) (’000) (10) CAD 136.80 Canada 10y Bond Future Mar 20, 2019 CAD 1,368 CAD 136.77 1 Derivative assets 1 (5) USD 140.13 30-Year U.S. Treasury Bonds Future Mar 29, 2019 USD 730 USD 146.00 (40) (34) USD 112.74 5-Year U.S. Treasury Note Future Mar 29, 2019 USD 3,899 USD 114.69 (90) (10) USD 139.16 30-Year U.S. Treasury Bonds Future Mar 29, 2019 USD 1,460 USD 146.00 (94) (12) USD 139.35 30-Year U.S. Treasury Bonds Future Mar 29, 2019 USD 1,752 USD 146.00 (109) (90) EUR 161.79 Euro Bond Future Mar 07, 2019 EUR 14,719 EUR 163.54 (246) Derivative liabilities (579) Total (578)

The accompanying notes are an integral part of the financial statements.

39 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 305,319 443,151 beginning of year 448,198 488,274 Cash 207 1,079 Increase (decrease) in net assets attributable to Margin deposited on derivatives 518 211 contractholders (3,024) 33,711 Subscriptions receivable 126 317 Security transactions Receivable from investments sold - 1,628 Proceeds from units issued 38,171 65,195 Interest, dividends and other receivables 1,649 2,321 Redemption of units (178,293) (138,982) Derivative assets 36 368 Total security transactions (140,122) (73,787) 307,855 449,075 Net assets attributable to contractholders - end of Liabilities year 305,052 448,198 Current liabilities Redemptions payable 2,514 678 Accrued expenses and other liabilities 9 12 STATEMENTS OF CASH FLOWS Derivative liabilities 280 187 2,803 877 For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Net assets attributable to contractholders 305,052 448,198 Net assets attributable to contractholders per unit Cash flows from operating activities Group pension units 25.70 25.73 Increase (decrease) in net assets attributable to contractholders (3,024) 33,711 Adjustments for: STATEMENTS OF COMPREHENSIVE INCOME Change in unrealized foreign exchange gain (loss) on currency (21) 19 For the years ended December 31 2018 2017 Realized gain (loss) on sales of investments (5,737) (4,120) ($ in thousands except for per unit amounts) Realized gain (loss) on derivatives 122 (311) Change in unrealized appreciation (depreciation) in Income the value of investments 21,177 (11,610) Interest for allocation purposes 12,745 17,553 Change in unrealized appreciation (depreciation) in Foreign exchange gain (loss) on income - 157 the value of derivatives 425 (102) Foreign exchange gain (loss) on currency 321 (19) Purchases of investments (1,526,219) (895,706) Income from securities lending 14 23 Proceeds from disposition of investments 1,650,117 949,225 Other income (loss) 6 - Realized gain (loss) on sales of investments 5,737 4,120 Margin on derivatives (307) (211) Realized gain (loss) on derivatives (122) 311 Interest, dividends and other receivables 672 799 Change in unrealized appreciation (depreciation) in Accrued expenses and other liabilities (3) 8 the value of investments (21,177) 11,610 Net cash provided by (used in) operating Change in unrealized appreciation (depreciation) in activities 137,202 71,702 the value of derivatives (425) 102 Cash flows from financing activities (2,901) 33,857 Proceeds from sale of units 38,362 67,693 Expenses Payments for units redeemed (176,457) (138,314) Administration fees 122 143 Net cash provided by (used in) financing Interest expense & bank charges 1 3 activities (138,095) (70,621) 123 146 Change in unrealized foreign exchange gain (loss) Increase (decrease) in net assets attributable on currency 21 (19) to contractholders (3,024) 33,711 Net increase (decrease) in cash (893) 1,081 Increase (decrease) in net assets attributable to contractholders per unit Cash (bank overdraft) beginning of year 1,079 17 Group pension units (0.22) 1.72 Cash (bank overdraft) end of year 207 1,079 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 13,417 15,232 Interest paid 1 3

The accompanying notes are an integral part of the financial statements.

40 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) 1,907 Province of Quebec, 2.75%, Sep 01, 2028 1,848 1,904 BONDS 99.3% 1,227 Province of Quebec, Canada 98.3% 6.00%, Oct 01, 2029 1,535 1,581 Provincial Bonds 50.4% 3,475 Province of Quebec, 8,600 Financement-Québec, 5.00%, Dec 01, 2038 4,530 4,442 5.25%, Jun 01, 2034 9,966 10,751 19,011 Province of Quebec, 3,100 Labrador-Island Link Funding Trust, 3.50%, Dec 01, 2045 20,233 20,211 3.76%, Jun 01, 2033 3,167 3,445 6,483 Province of Quebec, 2,575 Province of Alberta, 3.50%, Dec 01, 2048 7,003 6,942 3.45%, Dec 01, 2043 2,686 2,642 538 Province of Saskatchewan, 1,000 Province of Alberta, 3.05%, Dec 02, 2028 537 546 3.30%, Dec 01, 2046 1,059 999 2,785 Province of Saskatchewan, 5,669 Province of Alberta, 4.75%, Jun 01, 2040 3,113 3,429 3.05%, Dec 01, 2048 5,535 5,421 1,822 Province of Saskatchewan, 990 Province of Alberta, 3.30%, Jun 02, 2048 1,882 1,838 3.10%, Jun 01, 2050 974 958 76 Province of Saskatchewan, 191 Province of British Columbia, 3.10%, Jun 02, 2050 75 74 2.95%, Dec 18, 2028 195 195 184 Province of Saskatchewan, 3,505 Province of British Columbia, 2.95%, Jun 02, 2058 177 172 4.70%, Jun 18, 2037 4,497 4,321 3,820 Province of British Columbia, 152,113 153,682 4.30%, Jun 18, 2042 4,108 4,591 Corporate Bonds 26.4% 145 Province of British Columbia, 1,135 407 International, Inc., 3.20%, Jun 18, 2044 159 148 5.75%, Feb 14, 2036 1,392 1,406 2,131 Province of British Columbia, 1,550 407 International, Inc., 2.95%, Jun 18, 2050 2,050 2,086 4.45%, Nov 15, 2041 1,542 1,704 3,130 Province of Manitoba, 1,650 407 International, Inc., 4.60%, Mar 05, 2038 3,444 3,704 3.65%, Sep 08, 2044 1,645 1,615 2,300 Province of Manitoba, 170 407 International, Inc., 2.85%, Sep 05, 2046 2,095 2,090 3.60%, May 21, 2047 167 165 2,405 Province of Manitoba, 350 407 International, Inc., 3.40%, Sep 05, 2048 2,532 2,431 3.72%, May 11, 2048 350 346 758 Province of Manitoba, 1,115 Aéroports de Montréal, 3.20%, Mar 05, 2050 741 739 5.67%, Oct 16, 2037 1,307 1,448 408 Province of New Brunswick, 140 AIMCo Realty Investors LP, 3.10%, Aug 14, 2028 407 413 3.37%, Jun 01, 2027 140 142 3,550 Province of New Brunswick, 900 Alberta Powerline LP, 5.50%, Jan 27, 2034 4,235 4,488 4.07%, Mar 01, 2054 900 926 1,095 Province of New Brunswick, 320 AltaGas Canada, Inc., 4.55%, Mar 26, 2037 1,219 1,270 4.26%, Dec 05, 2028 320 326 1,414 Province of New Brunswick, 1,300 AltaGas Ltd., 3.10%, Aug 14, 2048 1,361 1,334 4.50%, Aug 15, 2044 1,195 1,101 1,358 Province of Newfoundland and Labrador, 500 AltaGas Ltd., 2.85%, Jun 02, 2028 1,344 1,344 4.99%, Oct 04, 2047 500 454 2,220 Province of Nova Scotia, 2,475 AltaLink LP, 5.80%, Jun 01, 2033 2,807 2,915 3.72%, Dec 03, 2046 2,457 2,451 1,812 Province of Nova Scotia, 1,206 Arrow Lakes Power Corp., 3.45%, Jun 01, 2045 1,983 1,879 5.52%, Apr 05, 2041 1,224 1,431 3,050 Province of Ontario, 2,141 Bell Canada, Inc., 5.85%, Mar 08, 2033 4,234 4,029 4.45%, Feb 27, 2047 2,206 2,040 28,779 Province of Ontario, 300 Bruce Power LP, 3.45%, Jun 02, 2045 30,039 30,034 4.01%, Jun 21, 2029 300 301 3,120 Province of Ontario, 600 Bruce Power LP, 2.90%, Dec 02, 2046 2,949 2,945 4.13%, Jun 21, 2033 600 586 6,345 Province of Ontario, USD 480 CDP Financial, Inc., 2.80%, Jun 02, 2048 5,795 5,881 5.60%, Nov 25, 2039 773 823 12,131 Province of Ontario, 40 CU, Inc., 2.90%, Jun 02, 2049 11,599 11,490 5.58%, May 26, 2038 47 50

The accompanying notes are an integral part of the financial statements.

41 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 4,130 CU, Inc., 680 IGM Financial, Inc., 4.09%, Sep 02, 2044 4,176 4,302 4.56%, Jan 25, 2047 680 697 200 CU, Inc., 4,570 Muskrat Falls Transmission Assets Funding 3.55%, Nov 22, 2047 198 190 Trust, 424 CU, Inc., 3.83%, Jun 01, 2037 4,734 5,226 3.95%, Nov 23, 2048 424 432 500 NAV CANADA, 550 Enbridge Gas Distribution, Inc., 3.29%, Mar 30, 2048 500 483 4.00%, Aug 22, 2044 557 559 168 Newfoundland and Labrador Hydro, 2,000 Enbridge Gas Distribution, Inc., 3.60%, Dec 01, 2045 159 170 3.51%, Nov 29, 2047 2,033 1,875 1,900 North West Redwater Partnership / NWR 2,050 Enbridge Pipelines, Inc., Financing Co., Ltd., 4.13%, Aug 09, 2046 2,056 1,922 3.65%, Jun 01, 2035 1,899 1,822 470 Enbridge, Inc., 1,588 Northwestconnect Group Partnership, 4.57%, Mar 11, 2044 477 453 5.95%, Apr 30, 2041 1,869 1,880 2,084 Enbridge, Inc., FRN 1,500 Pembina Pipeline Corp., 5.38%, Sep 27, 2077 2,017 1,925 4.81%, Mar 25, 2044 1,498 1,448 1,512 Enbridge, Inc., FRN 1,749 Plenary Properties LTAP LP, 6.63%, Apr 12, 2078 1,547 1,520 6.29%, Jan 31, 2044 2,197 2,251 715 EPCOR Utilities, Inc., 235 Power Corp. of Canada, 4.55%, Feb 28, 2042 780 799 4.46%, Jul 27, 2048 235 236 646 EPCOR Utilities, Inc., 1,190 Power Financial Corp., 3.55%, Nov 27, 2047 646 621 6.90%, Mar 11, 2033 1,456 1,544 424 EPCOR Utilities, Inc., 250 Rogers Communications, Inc., 3.95%, Nov 26, 2048 424 437 6.11%, Aug 25, 2040 310 295 548 First Nations Finance Authority, 1,000 Scotiabank Capital Trust, FRN 3.05%, Jun 01, 2028 544 548 5.65%, Dec 31, 2056 1,078 1,180 1,420 FortisAlberta, Inc., 1,385 Shaw Communications, Inc., 5.37%, Oct 30, 2039 1,751 1,737 6.75%, Nov 09, 2039 1,536 1,652 427 FortisAlberta, Inc., 100 South Coast British Columbia Transportation 3.73%, Sep 18, 2048 427 422 Authority, 135 FortisBC Energy, Inc., 3.15%, Nov 16, 2048 100 95 6.05%, Feb 15, 2038 139 176 1,745 Spy Hill Power LP, 570 FortisBC Energy, Inc., 4.14%, Mar 31, 2036 1,741 1,798 5.20%, Dec 06, 2040 573 692 1,445 TELUS Corp., 1,635 FortisBC Energy, Inc., 4.75%, Jan 17, 2045 1,443 1,421 3.67%, Apr 09, 2046 1,679 1,612 2,125 TELUS Corp., 300 FortisBC Energy, Inc., 4.40%, Jan 29, 2046 2,124 1,977 3.85%, Dec 07, 2048 300 304 1,440 The 55 Ontario School Board Trust, 300 Greater Toronto Airports Authority, 5.90%, Jun 02, 2033 1,656 1,859 3.26%, Jun 01, 2037 300 291 421 The Hospital for Sick Children, 1,065 Greater Toronto Airports Authority, 3.42%, Dec 07, 2057 421 407 5.63%, Jun 07, 2040 1,266 1,394 700 Toronto Hydro Corp., 940 Greater Toronto Airports Authority, 3.49%, Feb 28, 2048 699 669 5.30%, Feb 25, 2041 1,079 1,186 1,000 TransCanada PipeLines Ltd., 2,085 Health Montreal Collective LP, 4.35%, Jun 06, 2046 1,018 956 6.72%, Sep 30, 2049 2,384 2,681 305 TransCanada PipeLines Ltd., 1,078 Hospital Infrastructure Partners NOH 4.18%, Jul 03, 2048 305 281 Partnership, 2,000 TransCanada PipeLines Ltd., FRN 5.44%, Jan 31, 2045 1,093 1,266 4.65%, May 18, 2077 2,000 1,792 2,250 Hydro One, Inc., 497 Trillium Health Partners Volunteers, 4.17%, Jun 06, 2044 2,315 2,345 3.70%, Dec 20, 2058 497 495 970 Hydro One, Inc., 424 Vancouver Airport Authority, 3.63%, Jun 25, 2049 970 922 3.66%, Nov 23, 2048 424 437 385 Hydro-Québec, 79,220 80,417 5.00%, Feb 15, 2050 512 526 751 Hydro-Québec, Federal Bonds 18.4% 4.00%, Feb 15, 2055 909 894 706 Canadian Government Bond, 2.00%, Jun 01, 2028 690 708

The accompanying notes are an integral part of the financial statements.

42 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 4,931 Canadian Government Bond, USD 475 United States Treasury Note, 2.25%, Jun 01, 2029 4,974 5,056 2.88%, Aug 15, 2028 614 659 1,672 Canadian Government Bond, USD 626 United States Treasury Note, 5.75%, Jun 01, 2029 2,261 2,259 3.00%, Aug 15, 2048 814 851 8,599 Canadian Government Bond, 1,556 1,637 5.75%, Jun 01, 2033 12,148 12,523 6,153 Canadian Government Bond, Corporate Bonds 0.2% 5.00%, Jun 01, 2037 8,771 8,813 375 AT&T, Inc., 8,000 Canadian Government Bond, 5.10%, Nov 25, 2048 373 358 3.50%, Dec 01, 2045 10,663 10,122 295 Manulife Finance Delaware LP, 522 Canadian Government Bond, 5.06%, Dec 15, 2041 299 317 1.25%, Dec 01, 2047 683 640 672 675 8,572 Canadian Government Bond, 2,228 2,312 2.75%, Dec 01, 2048 9,321 9,640 4,399 Canadian Government Bond, Global 0.3% 2.00%, Dec 01, 2051 3,980 4,210 Corporate Bonds 0.3% 180 Canadian Government Bond, 775 Transurban Finance Co. Pty Ltd., 2.75%, Dec 01, 2064 209 211 4.56%, Nov 14, 2028 775 810 450 Canadian Government Real Return Bond, 299,089 302,873 0.50%, Dec 01, 2050 448 430 SHORT-TERM INVESTMENTS 0.8% 1,484 CPPIB Capital, Inc., USD 700 Federal Home Loan Bank Discount Notes, 3.00%, Jun 15, 2028 1,503 1,506 2.13%, Jan 02, 2019 956 956 55,651 56,118 1,490 Merit Trust, Municipal Bonds 3.1% 1.95%, Jan 02, 2019 1,490 1,490 2,985 City of Montreal, 2,446 2,446 4.25%, Dec 01, 2032 2,996 3,305 Total investments 301,535 305,319 181 City of Montreal, 4.10%, Dec 01, 2034 197 196 Derivative assets 0.0% 36 273 City of Montreal, Derivative liabilities (0.1%) (280) 3.50%, Dec 01, 2038 273 274 Other assets less liabilities (0.0%) (23) 403 City of Ottawa, Net assets attributable to 3.25%, Nov 10, 2047 402 390 contractholders 100.0% 305,052 744 City of Ottawa, 3.10%, Jul 27, 2048 710 697 CONCENTRATION RISK 1,019 City of Toronto, The following table summarizes the Fund’s concentration risk. 3.50%, Jun 02, 2036 1,036 1,028 1,905 City of Toronto, % of net assets attributable to contractholders 5.20%, Jun 01, 2040 2,274 2,408 416 City of Toronto, Portfolio by category December 31, 2018 December 31, 2017 4.15%, Mar 10, 2044 414 460 Bonds 400 City of Toronto, Canada 3.20%, Aug 01, 2048 399 379 Provincial Bonds 50.4 51.4 250 City of Vancouver, Corporate Bonds 26.4 25.3 Federal Bonds 18.4 13.3 2.85%, Nov 03, 2027 249 248 Municipal Bonds 3.1 4.1 119 Regional Municipality of Peel, United States 5.10%, Jun 29, 2040 152 149 Federal Bonds 0.5 - 9,102 9,534 Corporate Bonds 0.2 0.9 Global 296,086 299,751 Supranational Bonds - 0.7 United States 0.7% Corporate Bonds 0.3 - Federal Bonds 0.5% Short-Term Investments 0.8 3.1 USD 95 United States Treasury Inflation Indexed Derivative assets - 0.1 Bonds, Derivative liabilities (0.1) - 1.00%, Feb 15, 2048 128 127 Other assets less liabilities - 1.1 100.0 100.0

The accompanying notes are an integral part of the financial statements.

43 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT LONG TERM BOND FUND

The accompanying notes are an integral part of the financial statements.

44 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 3,111,414 3,431,828 beginning of year 3,443,563 3,750,352 Cash - 17 Increase (decrease) in net assets attributable to Subscriptions receivable 2,451 16,250 contractholders 42,315 87,277 Receivable from investments sold 1,120 - Security transactions Interest, dividends and other receivables 16,346 17,646 Proceeds from units issued 753,195 802,497 3,131,331 3,465,741 Redemption of units (1,117,058) (1,196,563) Liabilities Total security transactions (363,863) (394,066) Current liabilities Net assets attributable to contractholders - end of Bank overdraft 112 - year 3,122,015 3,443,563 Redemptions payable 9,114 13,422 Payable on investments purchased - 8,663 Accrued expenses and other liabilities 90 93 STATEMENTS OF CASH FLOWS 9,316 22,178 For the years ended December 31 2018 2017 Net assets attributable to contractholders 3,122,015 3,443,563 ($ in thousands except for per unit amounts) Net assets attributable to contractholders per unit Group pension units 28.33 27.93 Cash flows from operating activities Increase (decrease) in net assets attributable to contractholders 42,315 87,277 STATEMENTS OF COMPREHENSIVE INCOME Adjustments for: Realized gain (loss) on sales of investments 8,552 (4,563) For the years ended December 31 2018 2017 Change in unrealized appreciation (depreciation) in ($ in thousands except for per unit amounts) the value of investments 50,650 21,102 Purchases of investments (1,737,454) (2,041,802) Income Proceeds from disposition of investments 1,988,883 2,322,700 Interest for allocation purposes 101,798 104,349 Interest, dividends and other receivables 1,300 1,914 Income from securities lending 421 472 Accrued expenses and other liabilities (3) 67 Other income (loss) 415 - Realized gain (loss) on sales of investments (8,552) 4,563 Net cash provided by (used in) operating Change in unrealized appreciation (depreciation) in activities 354,243 386,695 the value of investments (50,650) (21,102) Cash flows from financing activities 43,432 88,282 Proceeds from sale of units 766,994 798,036 Payments for units redeemed (1,121,366) (1,184,757) Expenses Administration fees 1,113 1,005 Net cash provided by (used in) financing Interest expense & bank charges 4 - activities (354,372) (386,721) 1,117 1,005 Net increase (decrease) in cash (129) (26) Increase (decrease) in net assets attributable Cash (bank overdraft) beginning of year 17 43 to contractholders 42,315 87,277 Cash (bank overdraft) end of year (112) 17 Increase (decrease) in net assets attributable to contractholders per unit Supplemental information on cash flows from operating activities: Group pension units 0.36 0.70 Interest received, net of foreign withholding taxes 103,098 86,703 Interest paid 4 -

The accompanying notes are an integral part of the financial statements.

45 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) 24,489 Canadian Government Bond, 3.50%, Jun 01, 2020 27,134 25,055 BONDS 99.6% 4,000 Canadian Government Bond, Canada 99.2% 1.75%, Aug 01, 2020 3,977 3,994 Federal Bonds 33.2% 36,765 Canadian Government Bond, 16,055 Canada Housing Trust No. 1, 0.75%, Sep 01, 2020 36,348 36,109 3.75%, Mar 15, 2020 16,382 16,406 7,000 Canadian Government Bond, 12,825 Canada Housing Trust No. 1, 2.00%, Nov 01, 2020 6,976 7,017 1.20%, Jun 15, 2020 12,817 12,695 43,920 Canadian Government Bond, 12,190 Canada Housing Trust No. 1, 0.75%, Mar 01, 2021 43,528 42,889 1.45%, Jun 15, 2020 12,207 12,109 300 Canadian Government Bond, 24,585 Canada Housing Trust No. 1, 10.50%, Mar 15, 2021 494 356 1.25%, Dec 15, 2020 24,558 24,246 24,495 Canadian Government Bond, 7,180 Canada Housing Trust No. 1, 3.25%, Jun 01, 2021 27,187 25,290 3.35%, Dec 15, 2020 7,410 7,368 25,680 Canadian Government Bond, 20,910 Canada Housing Trust No. 1, 0.75%, Sep 01, 2021 25,495 24,941 1.25%, Jun 15, 2021 20,997 20,517 23,860 Canadian Government Bond, 14,820 Canada Housing Trust No. 1, 0.50%, Mar 01, 2022 22,978 22,859 3.80%, Jun 15, 2021 15,637 15,439 18,800 Canadian Government Bond, 7,940 Canada Housing Trust No. 1, 2.75%, Jun 01, 2022 19,993 19,342 1.15%, Dec 15, 2021 7,924 7,724 22,190 Canadian Government Bond, 9,210 Canada Housing Trust No. 1, 1.00%, Sep 01, 2022 21,334 21,495 1.50%, Dec 15, 2021 9,204 9,052 16,670 Canadian Government Bond, 14,655 Canada Housing Trust No. 1, 1.75%, Mar 01, 2023 16,408 16,579 2.65%, Mar 15, 2022 14,857 14,887 17,623 Canadian Government Bond, 21,821 Canada Housing Trust No. 1, 1.50%, Jun 01, 2023 17,422 17,339 1.75%, Jun 15, 2022 21,912 21,510 4,655 Canadian Government Bond, 34,605 Canada Housing Trust No. 1, 8.00%, Jun 01, 2023 7,001 5,853 2.40%, Dec 15, 2022 34,859 34,829 11,695 Canadian Government Bond, 21,800 Canada Housing Trust No. 1, 2.00%, Sep 01, 2023 11,646 11,755 2.35%, Jun 15, 2023 21,801 21,872 3,000 Canadian Government Bond, 8,250 Canada Housing Trust No. 1, 2.25%, Mar 01, 2024 3,028 3,052 2.35%, Sep 15, 2023 8,112 8,274 25,782 Canadian Government Bond, 6,935 Canada Housing Trust No. 1, 2.50%, Jun 01, 2024 27,189 26,573 3.15%, Sep 15, 2023 6,959 7,201 25,026 Canadian Government Bond, 11,000 Canada Housing Trust No. 1, 2.25%, Jun 01, 2025 26,160 25,532 2.55%, Dec 15, 2023 11,043 11,121 2,980 Canadian Government Bond, 16,500 Canada Housing Trust No. 1, 9.00%, Jun 01, 2025 4,719 4,248 2.90%, Jun 15, 2024 16,887 16,971 26,534 Canadian Government Bond, 10,835 Canada Housing Trust No. 1, 1.50%, Jun 01, 2026 26,459 25,746 2.55%, Mar 15, 2025 11,282 10,946 27,392 Canadian Government Bond, 6,005 Canada Housing Trust No. 1, 1.00%, Jun 01, 2027 24,727 25,393 1.95%, Dec 15, 2025 5,911 5,829 6,572 Canadian Government Bond, 6,248 Canada Housing Trust No. 1, 8.00%, Jun 01, 2027 10,577 9,644 2.25%, Dec 15, 2025 6,390 6,184 10,695 Canadian Government Bond, 13,975 Canada Housing Trust No. 1, 2.00%, Jun 01, 2028 10,511 10,729 1.90%, Sep 15, 2026 13,679 13,444 6,000 Canadian Government Bond, 6,875 Canada Housing Trust No. 1, 2.25%, Jun 01, 2029 5,974 6,152 2.35%, Jun 15, 2027 6,797 6,813 19,741 Canadian Government Bond, 11,710 Canada Housing Trust No. 1, 5.75%, Jun 01, 2029 27,551 26,674 2.65%, Mar 15, 2028 11,626 11,848 21,790 Canadian Government Bond, 9,760 Canada Housing Trust No. 1, 5.75%, Jun 01, 2033 30,443 31,734 2.65%, Dec 15, 2028 9,653 9,871 23,594 Canadian Government Bond, 14,635 Canadian Government Bond, 5.00%, Jun 01, 2037 32,518 33,794 1.25%, Feb 01, 2020 14,503 14,547 28,300 Canadian Government Bond, 40,375 Canadian Government Bond, 4.00%, Jun 01, 2041 35,165 37,345 1.50%, Mar 01, 2020 41,109 40,224 24,032 Canadian Government Bond, 16,630 Canadian Government Bond, 3.50%, Dec 01, 2045 31,903 30,406 1.75%, May 01, 2020 16,593 16,613

The accompanying notes are an integral part of the financial statements.

46 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 22,786 Canadian Government Bond, 5,275 Province of British Columbia, 2.75%, Dec 01, 2048 24,701 25,624 3.70%, Dec 18, 2020 5,440 5,440 7,710 Canadian Government Bond, 1,170 Province of British Columbia, 2.00%, Dec 01, 2051 7,081 7,378 9.95%, May 15, 2021 1,779 1,379 9,071 Canadian Government Bond, 1,190 Province of British Columbia, 2.75%, Dec 01, 2064 10,647 10,652 4.80%, Jun 15, 2021 1,343 1,265 2,000 CPPIB Capital, Inc., 2,400 Province of British Columbia, 1.40%, Jun 04, 2020 1,996 1,982 3.25%, Dec 18, 2021 2,499 2,472 11,270 CPPIB Capital, Inc., 4,000 Province of British Columbia, 3.00%, Jun 15, 2028 11,270 11,438 2.70%, Dec 18, 2022 4,033 4,057 1,810 Export Development Canada, 2,450 Province of British Columbia, 1.80%, Sep 01, 2022 1,807 1,787 8.00%, Sep 08, 2023 3,421 3,046 3,300 Province of British Columbia, 1,043,456 1,035,296 3.30%, Dec 18, 2023 3,263 3,435 Provincial Bonds 32.3% 500 Province of British Columbia, 5,550 Financement-Québec, 9.00%, Aug 23, 2024 748 668 5.25%, Jun 01, 2034 5,983 6,938 4,880 Province of British Columbia, 5,250 Labrador-Island Link Funding Trust, 2.85%, Jun 18, 2025 5,045 4,968 3.76%, Jun 01, 2033 5,347 5,835 2,290 Province of British Columbia, 2,000 Labrador-Island Link Funding Trust, 2.30%, Jun 18, 2026 2,282 2,241 3.85%, Dec 01, 2053 2,039 2,330 1,360 Province of British Columbia, 1,875 Province of Alberta, 2.55%, Jun 18, 2027 1,357 1,346 1.25%, Jun 01, 2020 1,862 1,855 600 Province of British Columbia, 7,240 Province of Alberta, 5.62%, Aug 17, 2028 670 739 1.35%, Sep 01, 2021 7,075 7,079 2,310 Province of British Columbia, 5,615 Province of Alberta, 2.95%, Dec 18, 2028 2,328 2,355 1.60%, Sep 01, 2022 5,508 5,464 6,065 Province of British Columbia, 1,500 Province of Alberta, 5.70%, Jun 18, 2029 7,173 7,641 2.55%, Dec 15, 2022 1,498 1,508 2,587 Province of British Columbia, 2,725 Province of Alberta, 6.35%, Jun 18, 2031 3,489 3,526 2.65%, Sep 01, 2023 2,724 2,744 590 Province of British Columbia, 1,100 Province of Alberta, 5.40%, Jun 18, 2035 726 772 3.40%, Dec 01, 2023 1,099 1,144 1,945 Province of British Columbia, 1,500 Province of Alberta, 4.70%, Jun 18, 2037 2,317 2,398 3.10%, Jun 01, 2024 1,500 1,538 3,525 Province of British Columbia, 6,725 Province of Alberta, 4.95%, Jun 18, 2040 4,128 4,566 2.35%, Jun 01, 2025 6,757 6,595 5,905 Province of British Columbia, 7,110 Province of Alberta, 4.30%, Jun 18, 2042 6,472 7,097 2.20%, Jun 01, 2026 7,109 6,841 7,600 Province of British Columbia, 6,085 Province of Alberta, 3.20%, Jun 18, 2044 6,864 7,751 2.55%, Jun 01, 2027 6,020 5,953 9,395 Province of British Columbia, 3,960 Province of Alberta, 2.80%, Jun 18, 2048 8,953 8,906 2.90%, Dec 01, 2028 3,923 3,956 2,180 Province of British Columbia, 1,000 Province of Alberta, 2.95%, Jun 18, 2050 2,124 2,134 2.90%, Sep 20, 2029 991 991 1,400 Province of Manitoba, 2,800 Province of Alberta, 4.75%, Feb 11, 2020 1,539 1,442 3.50%, Jun 01, 2031 2,853 2,932 1,600 Province of Manitoba, 2,130 Province of Alberta, 4.15%, Jun 03, 2020 1,638 1,647 3.90%, Dec 01, 2033 2,301 2,315 1,000 Province of Manitoba, 383 Province of Alberta, 1.60%, Sep 05, 2020 998 992 4.50%, Dec 01, 2040 458 456 2,900 Province of Manitoba, 4,825 Province of Alberta, 1.55%, Sep 05, 2021 2,899 2,851 3.45%, Dec 01, 2043 5,005 4,950 3,490 Province of Manitoba, 8,770 Province of Alberta, 2.55%, Jun 02, 2023 3,377 3,501 3.30%, Dec 01, 2046 8,939 8,765 4,340 Province of Manitoba, 12,820 Province of Alberta, 3.30%, Jun 02, 2024 4,566 4,499 3.05%, Dec 01, 2048 12,550 12,259 3,225 Province of Manitoba, 2,430 Province of Alberta, 2.45%, Jun 02, 2025 3,227 3,183 3.10%, Jun 01, 2050 2,388 2,351

The accompanying notes are an integral part of the financial statements.

47 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 280 Province of Manitoba, 2,800 Province of New Brunswick, 7.75%, Dec 22, 2025 391 368 3.55%, Jun 03, 2043 2,648 2,860 5,020 Province of Manitoba, 2,000 Province of New Brunswick, 2.55%, Jun 02, 2026 5,108 4,946 3.80%, Aug 14, 2045 2,097 2,133 3,285 Province of Manitoba, 1,110 Province of New Brunswick, 2.60%, Jun 02, 2027 3,229 3,224 3.10%, Aug 14, 2048 1,084 1,047 3,515 Province of Manitoba, 1,500 Province of New Brunswick, 3.00%, Jun 02, 2028 3,487 3,544 3.55%, Jun 03, 2055 1,526 1,529 1,335 Province of Manitoba, 390 Province of Newfoundland and Labrador, 5.70%, Mar 05, 2037 1,553 1,773 10.95%, Apr 15, 2021 628 464 1,525 Province of Manitoba, 3,000 Province of Newfoundland and Labrador, 4.60%, Mar 05, 2038 1,580 1,805 2.30%, Jun 02, 2025 2,926 2,921 2,605 Province of Manitoba, 350 Province of Newfoundland and Labrador, 4.65%, Mar 05, 2040 2,618 3,128 9.15%, Jul 07, 2025 454 481 1,880 Province of Manitoba, 1,030 Province of Newfoundland and Labrador, 4.10%, Mar 05, 2041 2,100 2,101 3.00%, Jun 02, 2026 1,051 1,040 900 Province of Manitoba, 925 Province of Newfoundland and Labrador, 4.40%, Mar 05, 2042 895 1,051 6.15%, Apr 17, 2028 1,183 1,157 1,100 Province of Manitoba, 1,385 Province of Newfoundland and Labrador, 3.35%, Mar 05, 2043 997 1,099 2.85%, Jun 02, 2028 1,372 1,370 2,490 Province of Manitoba, 550 Province of Newfoundland and Labrador, 4.05%, Sep 05, 2045 2,646 2,792 6.55%, Oct 17, 2030 546 733 3,680 Province of Manitoba, 695 Province of Newfoundland and Labrador, 2.85%, Sep 05, 2046 3,481 3,345 5.60%, Oct 17, 2033 802 880 3,660 Province of Manitoba, 400 Province of Newfoundland and Labrador, 3.40%, Sep 05, 2048 3,722 3,700 5.70%, Oct 17, 2035 451 519 1,940 Province of Manitoba, 615 Province of Newfoundland and Labrador, 3.20%, Mar 05, 2050 1,907 1,892 4.50%, Apr 17, 2037 606 705 600 Province of Manitoba, 1,225 Province of Newfoundland and Labrador, 3.15%, Sep 05, 2052 610 576 4.65%, Oct 17, 2040 1,190 1,448 3,060 Province of New Brunswick, 2,490 Province of Newfoundland and Labrador, 4.50%, Jun 02, 2020 3,122 3,164 3.30%, Oct 17, 2046 2,422 2,406 2,100 Province of New Brunswick, 2,550 Province of Newfoundland and Labrador, 3.35%, Dec 03, 2021 2,130 2,164 3.70%, Oct 17, 2048 2,721 2,659 1,000 Province of New Brunswick, 4,445 Province of Nova Scotia, 1.55%, May 04, 2022 970 975 4.10%, Jun 01, 2021 4,737 4,644 5,150 Province of New Brunswick, 400 Province of Nova Scotia, 2.85%, Jun 02, 2023 5,238 5,226 4.45%, Oct 24, 2021 391 424 1,575 Province of New Brunswick, 500 Province of Nova Scotia, 3.65%, Jun 03, 2024 1,599 1,657 2.15%, Jun 01, 2025 500 486 1,390 Province of New Brunswick, 1,780 Province of Nova Scotia, 2.60%, Aug 14, 2026 1,389 1,370 2.10%, Jun 01, 2027 1,739 1,689 2,180 Province of New Brunswick, 830 Province of Nova Scotia, 2.35%, Aug 14, 2027 2,112 2,089 6.60%, Jun 01, 2027 1,048 1,066 670 Province of New Brunswick, 630 Province of Nova Scotia, 3.10%, Aug 14, 2028 668 678 6.60%, Dec 01, 2031 708 872 910 Province of New Brunswick, 950 Province of Nova Scotia, 5.65%, Dec 27, 2028 1,041 1,115 5.80%, Jun 01, 2033 968 1,247 945 Province of New Brunswick, 970 Province of Nova Scotia, 5.50%, Jan 27, 2034 1,047 1,195 4.90%, Jun 01, 2035 995 1,187 1,605 Province of New Brunswick, 1,915 Province of Nova Scotia, 4.65%, Sep 26, 2035 1,542 1,874 4.50%, Jun 01, 2037 1,830 2,266 1,895 Province of New Brunswick, 356 Province of Nova Scotia, 4.55%, Mar 26, 2037 1,821 2,198 4.70%, Jun 01, 2041 439 439 950 Province of New Brunswick, 1,000 Province of Nova Scotia, 4.80%, Sep 26, 2039 1,176 1,149 4.40%, Jun 01, 2042 1,106 1,191 1,675 Province of New Brunswick, 400 Province of Nova Scotia, 4.80%, Jun 03, 2041 1,709 2,039 3.45%, Jun 01, 2045 420 415

The accompanying notes are an integral part of the financial statements.

48 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 3,225 Province of Nova Scotia, 15,205 Province of Ontario, 3.50%, Jun 02, 2062 3,261 3,428 4.65%, Jun 02, 2041 17,956 18,724 20,350 Province of Ontario, 18,085 Province of Ontario, 4.20%, Jun 02, 2020 21,621 20,961 3.50%, Jun 02, 2043 18,669 18,988 21,000 Province of Ontario, 22,960 Province of Ontario, 4.00%, Jun 02, 2021 22,159 21,897 3.45%, Jun 02, 2045 22,733 23,961 10,050 Province of Ontario, 26,585 Province of Ontario, 1.35%, Mar 08, 2022 9,853 9,762 2.90%, Dec 02, 2046 25,570 25,091 25,900 Province of Ontario, 23,460 Province of Ontario, 3.15%, Jun 02, 2022 27,097 26,591 2.80%, Jun 02, 2048 22,255 21,743 2,325 Province of Ontario, 17,790 Province of Ontario, 9.50%, Jul 13, 2022 3,503 2,879 2.90%, Jun 02, 2049 16,977 16,850 2,000 Province of Ontario, 291 Province of Prince Edward Island, 1.95%, Jan 27, 2023 2,033 1,968 8.50%, Dec 15, 2023 384 369 25,270 Province of Ontario, 400 Province of Prince Edward Island, 2.85%, Jun 02, 2023 25,151 25,685 2.35%, Aug 25, 2025 399 387 11,730 Province of Ontario, 250 Province of Prince Edward Island, 2.60%, Sep 08, 2023 11,697 11,797 6.25%, Jan 29, 2032 286 329 825 Province of Ontario, 225 Province of Prince Edward Island, 7.50%, Feb 07, 2024 1,090 1,018 5.60%, Feb 21, 2034 244 284 22,110 Province of Ontario, 100 Province of Prince Edward Island, 3.50%, Jun 02, 2024 22,986 23,171 5.30%, May 19, 2036 105 124 1,500 Province of Ontario, 515 Province of Prince Edward Island, 2.65%, Feb 05, 2025 1,496 1,507 4.65%, Nov 19, 2037 495 601 24,615 Province of Ontario, 500 Province of Prince Edward Island, 2.60%, Jun 02, 2025 24,997 24,570 4.60%, May 19, 2041 496 589 1,941 Province of Ontario, 450 Province of Prince Edward Island, 8.50%, Dec 02, 2025 2,763 2,640 3.65%, Jun 27, 2042 450 462 13,070 Province of Ontario, 800 Province of Prince Edward Island, 2.40%, Jun 02, 2026 13,121 12,799 3.60%, Jan 17, 2053 738 816 2,515 Province of Ontario, 800 Province of Prince Edward Island, 8.00%, Jun 02, 2026 3,534 3,406 3.85%, Jul 17, 2054 796 841 1,000 Province of Ontario, 10,480 Province of Quebec, 8.00%, Dec 02, 2026 1,508 1,367 4.50%, Dec 01, 2020 11,470 10,957 900 Province of Ontario, 14,080 Province of Quebec, 6.95%, Feb 03, 2027 1,028 1,161 4.25%, Dec 01, 2021 15,427 14,884 18,780 Province of Ontario, 2,650 Province of Quebec, 2.60%, Jun 02, 2027 18,661 18,524 1.65%, Mar 03, 2022 2,625 2,606 5,995 Province of Ontario, 16,115 Province of Quebec, 7.60%, Jun 02, 2027 8,459 8,154 3.50%, Dec 01, 2022 17,208 16,805 17,250 Province of Ontario, 2,700 Province of Quebec, 2.90%, Jun 02, 2028 17,072 17,363 9.38%, Jan 16, 2023 4,065 3,419 1,175 Province of Ontario, 3,050 Province of Quebec, 6.25%, Aug 25, 2028 1,387 1,496 2.45%, Mar 01, 2023 3,048 3,066 8,879 Province of Ontario, 14,135 Province of Quebec, 6.50%, Mar 08, 2029 11,658 11,674 3.00%, Sep 01, 2023 14,351 14,484 6,130 Province of Ontario, 13,290 Province of Quebec, 6.20%, Jun 02, 2031 7,704 8,189 3.75%, Sep 01, 2024 13,945 14,144 6,935 Province of Ontario, 1,900 Province of Quebec, 5.85%, Mar 08, 2033 8,629 9,161 5.35%, Jun 01, 2025 2,369 2,199 11,090 Province of Ontario, 1,040 Province of Quebec, 5.60%, Jun 02, 2035 13,322 14,605 2.60%, Jul 06, 2025 1,038 1,043 12,370 Province of Ontario, 6,915 Province of Quebec, 4.70%, Jun 02, 2037 14,986 15,034 2.75%, Sep 01, 2025 7,072 6,977 9,925 Province of Ontario, 4,470 Province of Quebec, 4.60%, Jun 02, 2039 11,248 12,049 8.50%, Apr 01, 2026 6,572 6,157 600 Province of Ontario, 10,690 Province of Quebec, 5.65%, Jul 13, 2039 684 814 2.50%, Sep 01, 2026 10,693 10,561

The accompanying notes are an integral part of the financial statements.

49 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 11,810 Province of Quebec, Corporate Bonds 31.5% 2.75%, Sep 01, 2027 11,917 11,827 2,500 407 International, Inc., 10,230 Province of Quebec, 4.30%, May 26, 2021 2,473 2,587 2.75%, Sep 01, 2028 10,090 10,215 1,510 407 International, Inc., 5,155 Province of Quebec, 2.47%, Sep 08, 2022 1,510 1,485 6.00%, Oct 01, 2029 6,829 6,642 2,000 407 International, Inc., 7,280 Province of Quebec, 3.35%, May 16, 2024 1,998 2,048 6.25%, Jun 01, 2032 9,061 9,919 935 407 International, Inc., 6,700 Province of Quebec, 6.47%, Jul 27, 2029 1,088 1,201 5.75%, Dec 01, 2036 9,152 9,140 625 407 International, Inc., 6,905 Province of Quebec, 3.43%, Jun 01, 2033 624 623 5.00%, Dec 01, 2038 7,308 8,826 1,170 407 International, Inc., 15,500 Province of Quebec, 5.96%, Dec 03, 2035 1,227 1,519 5.00%, Dec 01, 2041 18,169 20,189 567 407 International, Inc., 12,565 Province of Quebec, 4.45%, Nov 15, 2041 615 623 4.25%, Dec 01, 2043 14,576 14,947 760 407 International, Inc., 18,780 Province of Quebec, 3.65%, Sep 08, 2044 759 744 3.50%, Dec 01, 2045 19,350 19,965 550 407 International, Inc., 19,505 Province of Quebec, 3.30%, Mar 27, 2045 549 506 3.50%, Dec 01, 2048 21,203 20,888 460 407 International, Inc., 595 Province of Saskatchewan, 3.83%, May 11, 2046 459 464 3.90%, Jul 28, 2020 595 612 1,100 407 International, Inc., 700 Province of Saskatchewan, 3.60%, May 21, 2047 1,099 1,065 9.60%, Feb 04, 2022 1,087 850 330 407 International, Inc., 1,000 Province of Saskatchewan, 3.72%, May 11, 2048 330 326 3.20%, Jun 03, 2024 1,031 1,032 1,000 407 International, Inc., 260 Province of Saskatchewan, 3.98%, Sep 11, 2052 999 1,019 8.75%, May 30, 2025 379 351 1,450 407 International, Inc., 2,930 Province of Saskatchewan, 4.68%, Oct 07, 2053 1,510 1,671 2.55%, Jun 02, 2026 2,972 2,893 1,586 Acces Recherche Montreal SEC, 2,040 Province of Saskatchewan, 7.07%, Dec 31, 2042 1,586 2,178 2.65%, Jun 02, 2027 2,036 2,015 960 Aéroports de Montréal, 820 Province of Saskatchewan, 6.55%, Oct 11, 2033 1,137 1,302 3.05%, Dec 02, 2028 816 832 700 Aéroports de Montréal, 1,000 Province of Saskatchewan, 5.17%, Sep 17, 2035 691 846 5.75%, Mar 05, 2029 1,295 1,245 600 Aéroports de Montréal, 1,520 Province of Saskatchewan, 3.92%, Sep 26, 2042 600 633 6.40%, Sep 05, 2031 2,064 2,059 1,500 Aéroports de Montréal, 1,400 Province of Saskatchewan, 3.92%, Jun 12, 2045 1,500 1,583 5.80%, Sep 05, 2033 1,562 1,840 575 Aéroports de Montréal, 1,462 Province of Saskatchewan, 3.36%, Apr 24, 2047 575 553 4.75%, Jun 01, 2040 1,701 1,800 410 AIMCo Realty Investors LP, 600 Province of Saskatchewan, 2.27%, Jun 26, 2024 410 395 3.40%, Feb 03, 2042 603 614 740 AIMCo Realty Investors LP, 2,800 Province of Saskatchewan, 3.37%, Jun 01, 2027 740 748 3.90%, Jun 02, 2045 2,969 3,107 200 AIMCo Realty Investors LP, 3,450 Province of Saskatchewan, 3.04%, Jun 01, 2028 200 196 2.75%, Dec 02, 2046 3,146 3,118 600 Alectra, Inc., 4,705 Province of Saskatchewan, 2.49%, May 17, 2027 600 575 3.30%, Jun 02, 2048 4,791 4,746 1,000 Alectra, Inc., 1,320 Province of Saskatchewan, 3.96%, Jul 30, 2042 1,000 1,031 3.10%, Jun 02, 2050 1,302 1,284 410 Algonquin Power Co., 1,020 Province of Saskatchewan, 4.09%, Feb 17, 2027 410 410 3.75%, Mar 05, 2054 1,107 1,129 1,340 Alimentation Couche-Tard, Inc., 1,870 Province of Saskatchewan, 3.06%, Jul 26, 2024 1,340 1,296 2.95%, Jun 02, 2058 1,798 1,750 1,700 Alimentation Couche-Tard, Inc., 3.60%, Jun 02, 2025 1,700 1,677 997,156 1,008,597

The accompanying notes are an integral part of the financial statements.

50 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 1,731 Alliance Pipeline LP, 2,720 Bank of Montreal, 7.18%, Jun 30, 2023 2,095 1,919 2.70%, Dec 09, 2026 2,719 2,645 780 AltaGas Canada, Inc., 4,895 Bank of Montreal, 4.26%, Dec 05, 2028 779 794 3.19%, Mar 01, 2028 4,873 4,902 240 AltaGas Ltd., 2,000 Bank of Montreal, FRN 3.98%, Oct 04, 2027 240 231 3.34%, Dec 08, 2025 2,030 2,011 1,000 AltaGas Ltd., 2,000 Bank of Montreal, FRN 4.50%, Aug 15, 2044 969 847 2.57%, Jun 01, 2027 1,964 1,947 650 AltaGas Ltd., 1,340 bcIMC Realty Corp., 4.99%, Oct 04, 2047 650 590 3.00%, Mar 31, 2027 1,340 1,325 4,000 AltaLink LP, 500 Bell Canada, Inc., 3.62%, Sep 17, 2020 4,000 4,071 3.54%, Jun 12, 2020 500 505 4,000 AltaLink LP, 950 Bell Canada, Inc., 3.40%, Jun 06, 2024 4,129 4,108 3.25%, Jun 17, 2020 949 956 2,000 AltaLink LP, 3,000 Bell Canada, Inc., 2.75%, May 29, 2026 1,975 1,969 3.15%, Sep 29, 2021 2,988 3,008 67 AltaLink LP, 2,600 Bell Canada, Inc., 5.38%, Mar 26, 2040 84 83 3.00%, Oct 03, 2022 2,598 2,578 360 AltaLink LP, 1,000 Bell Canada, Inc., 4.87%, Nov 15, 2040 360 420 3.35%, Mar 22, 2023 998 1,001 1,000 AltaLink LP, 1,000 Bell Canada, Inc., 4.46%, Nov 08, 2041 1,018 1,107 4.70%, Sep 11, 2023 999 1,053 1,100 AltaLink LP, 2,870 Bell Canada, Inc., 3.99%, Jun 30, 2042 1,100 1,140 3.35%, Mar 12, 2025 2,866 2,834 360 AltaLink LP, 2,300 Bell Canada, Inc., 3.72%, Dec 03, 2046 360 357 3.55%, Mar 02, 2026 2,291 2,285 1,500 AltaLink LP, 860 Bell Canada, Inc., 4.27%, Jun 06, 2064 1,500 1,638 2.90%, Aug 12, 2026 858 814 1,937 Arctic Infrastructure LP, 1,280 Bell Canada, Inc., 5.09%, Jun 30, 2047 1,937 2,172 3.60%, Sep 29, 2027 1,276 1,259 2,707 Arrow Lakes Power Corp., 1,920 Bell Canada, Inc., 5.52%, Apr 05, 2041 2,707 3,210 3.80%, Aug 21, 2028 1,918 1,902 740 Atco Ltd., 970 Bell Canada, Inc., 5.50%, Nov 01, 2078 740 741 6.55%, May 01, 2029 1,071 1,169 2,000 Bank of Montreal, 650 Bell Canada, Inc., 2.84%, Jun 04, 2020 2,085 2,008 7.85%, Apr 02, 2031 796 868 2,000 Bank of Montreal, 950 Bell Canada, Inc., 2.10%, Oct 06, 2020 2,000 1,983 7.30%, Feb 23, 2032 1,082 1,218 3,120 Bank of Montreal, 825 Bell Canada, Inc., 1.88%, Mar 31, 2021 3,120 3,066 6.10%, Mar 16, 2035 822 972 5,000 Bank of Montreal, 1,000 Bell Canada, Inc., 3.40%, Apr 23, 2021 5,009 5,078 6.17%, Feb 26, 2037 1,007 1,189 5,470 Bank of Montreal, 550 Bell Canada, Inc., 1.61%, Oct 28, 2021 5,433 5,302 4.75%, Sep 29, 2044 545 549 4,710 Bank of Montreal, 700 Bell Canada, Inc., 2.12%, Mar 16, 2022 4,762 4,613 4.35%, Dec 18, 2045 703 656 2,230 Bank of Montreal, 2,220 Bell Canada, Inc., 2.27%, Jul 11, 2022 2,230 2,188 2.70%, Feb 27, 2047 2,217 2,144 2,250 Bank of Montreal, 1,090 Bell Canada, Inc., 2.89%, Jun 20, 2023 2,250 2,249 4.45%, Feb 27, 2047 1,080 1,039 3,390 Bank of Montreal, 750 BMW Canada, Inc., 2.70%, Sep 11, 2024 3,390 3,341 1.88%, Dec 11, 2020 750 738 372 Bank of Montreal, 450 BMW Canada, Inc., 3.12%, Sep 19, 2024 375 373 1.83%, Jun 15, 2021 450 439 1,730 Bank of Montreal, 470 Bridging North America GP, 4.61%, Sep 10, 2025 1,912 1,896 4.34%, Aug 31, 2053 487 511 2,600 Bank of Montreal, 650 British Columbia Ferry Services, Inc., 3.32%, Jun 01, 2026 2,646 2,608 6.25%, Oct 13, 2034 739 856

The accompanying notes are an integral part of the financial statements.

51 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 291 British Columbia Ferry Services, Inc., 2,260 Canadian Imperial Bank of Commerce, 5.02%, Mar 20, 2037 280 344 2.47%, Dec 05, 2022 2,260 2,224 1,211 British Columbia Ferry Services, Inc., 2,630 Canadian Imperial Bank of Commerce, 4.70%, Oct 23, 2043 1,231 1,423 2.97%, Jul 11, 2023 2,629 2,635 3,550 Brookfield Asset Management, Inc., 4,510 Canadian Imperial Bank of Commerce, 3.80%, Mar 16, 2027 3,549 3,424 3.30%, May 26, 2025 4,510 4,573 850 Brookfield Asset Management, Inc., 2,200 Canadian Imperial Bank of Commerce, FRN 5.95%, Jun 14, 2035 977 940 3.42%, Jan 26, 2026 2,247 2,213 1,000 Brookfield Infrastructure Finance ULC, 3,080 Canadian Imperial Bank of Commerce, FRN 3.45%, Mar 11, 2022 1,018 1,000 3.45%, Apr 04, 2028 3,079 3,046 2,240 Brookfield Infrastructure Finance ULC, 1,000 Canadian National Railway Co., 3.32%, Feb 22, 2024 2,249 2,190 2.80%, Sep 22, 2025 997 998 980 Brookfield Infrastructure Finance ULC, 1,000 Canadian National Railway Co., 4.19%, Sep 11, 2028 980 971 3.95%, Sep 22, 2045 997 1,031 330 Brookfield Property Finance ULC, 900 Canadian National Railway Co., 4.12%, Oct 19, 2021 330 333 3.60%, Aug 01, 2047 894 875 1,500 Brookfield Property Finance ULC, 800 Canadian National Railway Co., 4.35%, Jul 03, 2023 1,500 1,505 3.60%, Jul 31, 2048 788 778 131 Brookfield Renewable Kwagis Holding, Inc., 3,750 Canadian Natural Resources Ltd., 4.45%, Dec 31, 2053 143 138 2.05%, Jun 01, 2020 3,749 3,699 2,250 Brookfield Renewable Partners ULC, 3,020 Canadian Natural Resources Ltd., 3.63%, Jan 15, 2027 2,249 2,159 3.31%, Feb 11, 2022 3,020 3,017 185 Brookfield Renewable Partners ULC, 1,500 Canadian Natural Resources Ltd., 4.25%, Jan 15, 2029 185 182 3.42%, Dec 01, 2026 1,500 1,441 695 Brookfield Renewable Partners ULC, 670 Canadian Natural Resources Ltd., 5.84%, Nov 05, 2036 707 762 4.85%, May 30, 2047 670 665 1,470 Bruce Power LP, 825 Canadian Pacific Railway Co., 2.84%, Jun 23, 2021 1,470 1,465 6.45%, Nov 17, 2039 883 1,098 1,580 Bruce Power LP, 1,500 Canadian Tire Corp., Ltd., 4.01%, Jun 21, 2029 1,580 1,586 3.17%, Jul 06, 2023 1,500 1,485 1,400 Bruce Power LP, 255 Canadian Tire Corp., Ltd., 4.13%, Jun 21, 2033 1,400 1,366 6.45%, Feb 24, 2034 255 304 2,000 Cadillac Fairview Finance Trust, 800 Canadian Tire Corp., Ltd., 4.31%, Jan 25, 2021 1,999 2,082 5.61%, Sep 04, 2035 923 884 1,500 Caisse centrale Desjardins, 1,260 Canadian Utilities Ltd., 1.75%, Mar 02, 2020 1,500 1,487 3.12%, Nov 09, 2022 1,324 1,276 2,870 Cameco Corp., 1,380 Canadian Western Bank, 3.75%, Nov 14, 2022 2,870 2,854 2.75%, Jun 29, 2020 1,380 1,377 1,000 Cameco Corp., 1,580 Canadian Western Bank, 4.19%, Jun 24, 2024 1,000 998 2.88%, Mar 01, 2021 1,580 1,573 300 Canada Life Assurance Co., 450 Canadian Western Bank, 6.40%, Dec 11, 2028 331 377 2.79%, Sep 13, 2021 450 445 50 Canada Life Capital Trust, 1,125 Canadian Western Bank, 7.53%, Jun 30, 2052 68 68 2.74%, Jun 16, 2022 1,125 1,106 2,000 Canada Post Corp., 380 Canadian Western Bank, 4.36%, Jul 16, 2040 2,286 2,491 2.92%, Dec 15, 2022 380 374 2,675 Canadian Imperial Bank of Commerce, 2,909 Capital City Link GP, 1.85%, Jul 14, 2020 2,670 2,646 4.39%, Mar 31, 2046 2,909 3,109 1,510 Canadian Imperial Bank of Commerce, 2,000 Capital Desjardins, Inc., 1.90%, Apr 26, 2021 1,509 1,483 5.19%, May 05, 2020 2,000 2,064 1,900 Canadian Imperial Bank of Commerce, 2,000 Capital Desjardins, Inc., 1.64%, Jul 12, 2021 1,899 1,849 4.95%, Dec 15, 2026 2,071 2,107 1,770 Canadian Imperial Bank of Commerce, 1,000 CARDS II Trust, 2.90%, Sep 14, 2021 1,770 1,776 2.16%, Oct 15, 2020 1,000 991 1,950 Canadian Imperial Bank of Commerce, 300 Caterpillar Financial Services Ltd., 2.04%, Mar 21, 2022 1,949 1,904 2.80%, Jun 08, 2021 300 301 3,870 Canadian Imperial Bank of Commerce, 1,318 CDP Financial, Inc., 2.30%, Jul 11, 2022 3,870 3,798 4.60%, Jul 15, 2020 1,338 1,366

The accompanying notes are an integral part of the financial statements.

52 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 2,050 Central 1 Credit Union, 200 CU, Inc., 1.87%, Mar 16, 2020 2,049 2,029 6.22%, Mar 06, 2024 202 232 2,640 Central 1 Credit Union, 710 CU, Inc., 2.60%, Nov 07, 2022 2,639 2,586 5.90%, Nov 20, 2034 796 888 1,110 Central 1 Credit Union, FRN 175 CU, Inc., 3.06%, Oct 14, 2026 1,110 1,096 5.18%, Nov 21, 2035 177 207 740 Chartwell Retirement Residences, 60 CU, Inc., 3.79%, Dec 11, 2023 740 741 5.03%, Nov 20, 2036 57 70 3,000 Choice Properties LP, 600 CU, Inc., 3.60%, Apr 20, 2020 3,208 3,024 5.56%, Oct 30, 2037 621 744 2,500 Choice Properties REIT, 800 CU, Inc., 2.30%, Sep 14, 2020 2,487 2,472 5.58%, May 26, 2038 802 993 1,400 Choice Properties REIT, 100 CU, Inc., 3.50%, Feb 08, 2021 1,400 1,410 6.50%, Mar 07, 2039 104 137 655 Choice Properties REIT, 66 CU, Inc., 3.01%, Mar 21, 2022 655 648 4.54%, Oct 24, 2041 75 73 750 Choice Properties REIT, 1,000 CU, Inc., 3.20%, Mar 07, 2023 750 739 3.81%, Sep 10, 2042 1,000 997 963 Choice Properties REIT, 1,800 CU, Inc., 4.90%, Jul 05, 2023 973 1,011 4.72%, Sep 09, 2043 1,800 2,052 690 Choice Properties REIT, 1,500 CU, Inc., 4.29%, Feb 08, 2024 690 706 4.09%, Sep 02, 2044 1,500 1,563 3,450 Choice Properties REIT, 1,000 CU, Inc., 3.56%, Sep 09, 2024 3,450 3,399 3.96%, Jul 27, 2045 1,000 1,023 560 Choice Properties REIT, 820 CU, Inc., 3.55%, Jan 10, 2025 560 550 3.76%, Nov 19, 2046 820 811 500 Choice Properties REIT, 1,010 CU, Inc., 4.06%, Nov 24, 2025 500 501 3.55%, Nov 22, 2047 1,010 959 830 Choice Properties REIT, 780 CU, Inc., 4.18%, Mar 08, 2028 830 822 3.95%, Nov 23, 2048 780 796 150 Choice Properties REIT, 50 CU, Inc., 5.27%, Mar 07, 2046 150 158 4.95%, Nov 18, 2050 50 60 1,880 CI Financial Corp., 800 CU, Inc., 3.52%, Jul 20, 2023 1,880 1,871 4.21%, Oct 29, 2055 800 845 150 CI Financial Corp., 1,000 CU, Inc., 3.90%, Sep 27, 2027 150 147 4.59%, Oct 24, 2061 1,000 1,130 640 CIBC Capital Trust, 970 Daimler Canada Finance, Inc., 10.25%, Jun 30, 2108 852 775 1.57%, May 25, 2020 970 953 3,630 CIBC Capital Trust, FRN 1,500 Daimler Canada Finance, Inc., 9.98%, Jun 30, 2108 4,437 3,755 1.91%, Jul 08, 2021 1,500 1,460 255 Clarica Life Insurance Co., 475 Daimler Canada Finance, Inc., 6.30%, May 15, 2028 244 311 2.23%, Dec 16, 2021 475 464 1,480 Clover LP, 680 Daimler Canada Finance, Inc., 4.22%, Jun 30, 2034 1,480 1,542 3.05%, May 16, 2022 680 679 170 Concordia University, 260 Daimler Canada Finance, Inc., 6.55%, Sep 02, 2042 193 246 3.30%, Aug 16, 2022 260 261 1,740 Cordelio Amalco GP I, 750 Daimler Canada Finance, Inc., 4.09%, Sep 30, 2034 1,740 1,778 2.57%, Nov 22, 2022 750 733 300 CT REIT, 1,320 Dollarama, Inc., 2.16%, Jun 01, 2021 300 293 2.34%, Jul 22, 2021 1,320 1,291 1,130 CT REIT, 930 Dollarama, Inc., 3.29%, Jun 01, 2026 1,130 1,077 2.20%, Nov 10, 2022 930 889 130 CT REIT, 420 Dollarama, Inc., 3.47%, Jun 16, 2027 130 124 3.55%, Nov 06, 2023 418 419 470 CU, Inc., 300 Enbridge Gas Distribution, Inc., 11.77%, Nov 30, 2020 827 548 4.04%, Nov 23, 2020 300 308 2,500 CU, Inc., 350 Enbridge Gas Distribution, Inc., 4.80%, Nov 22, 2021 2,855 2,650 4.77%, Dec 17, 2021 354 370

The accompanying notes are an integral part of the financial statements.

53 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 350 Enbridge Gas Distribution, Inc., 460 Enbridge, Inc., 3.15%, Aug 22, 2024 349 352 4.87%, Nov 21, 2044 464 457 300 Enbridge Gas Distribution, Inc., 2,060 Enbridge, Inc., FRN 3.31%, Sep 11, 2025 300 303 5.38%, Sep 27, 2077 2,060 1,903 300 Enbridge Gas Distribution, Inc., 913 Enbridge, Inc., FRN 2.50%, Aug 05, 2026 300 286 6.63%, Apr 12, 2078 913 918 715 Enbridge Gas Distribution, Inc., 234 Enercare Solutions, Inc., 6.10%, May 19, 2028 773 858 4.60%, Feb 03, 2020 241 238 1,130 Enbridge Gas Distribution, Inc., 370 Enercare Solutions, Inc., 6.16%, Dec 16, 2033 1,268 1,439 3.99%, Feb 21, 2024 370 368 1,500 Enbridge Gas Distribution, Inc., 640 Énergir, Inc., 5.21%, Feb 25, 2036 1,762 1,754 5.45%, Jul 12, 2021 666 685 250 Enbridge Gas Distribution, Inc., 300 Énergir, Inc., 4.00%, Aug 22, 2044 232 254 9.00%, May 16, 2025 439 401 870 Enbridge Gas Distribution, Inc., 405 Énergir, Inc., 3.51%, Nov 29, 2047 870 816 7.20%, Nov 19, 2027 511 526 400 Enbridge Gas Distribution, Inc., 400 Énergir, Inc., 4.95%, Nov 22, 2050 399 471 7.05%, Oct 30, 2030 463 536 990 Enbridge Pipelines, Inc., 250 Énergir, Inc., 4.45%, Apr 06, 2020 990 1,011 6.30%, Oct 31, 2033 248 326 1,990 Enbridge Pipelines, Inc., 100 Énergir, Inc., 2.93%, Nov 30, 2022 1,990 1,986 5.70%, Jul 10, 2036 104 125 2,255 Enbridge Pipelines, Inc., 70 Énergir, Inc., 8.20%, Feb 15, 2024 3,232 2,760 3.28%, Oct 09, 2046 70 65 190 Enbridge Pipelines, Inc., 510 Énergir, Inc., 3.00%, Aug 10, 2026 190 184 3.53%, May 16, 2047 509 492 265 Enbridge Pipelines, Inc., 750 ENMAX Corp., 6.55%, Nov 17, 2027 308 317 3.84%, Jun 05, 2028 750 766 220 Enbridge Pipelines, Inc., 230 EPCOR Utilities, Inc., 6.05%, Feb 12, 2029 245 257 6.65%, Apr 15, 2038 265 320 490 Enbridge Pipelines, Inc., 1,700 EPCOR Utilities, Inc., 5.35%, Nov 10, 2039 490 543 5.75%, Nov 24, 2039 2,004 2,181 450 Enbridge Pipelines, Inc., 890 EPCOR Utilities, Inc., 5.33%, Apr 06, 2040 450 499 3.55%, Nov 27, 2047 890 855 2,200 Enbridge Pipelines, Inc., 380 Fair Hydro Trust, 4.55%, Sep 29, 2045 2,250 2,205 3.36%, May 15, 2033 380 385 640 Enbridge Pipelines, Inc., 2,500 Fairfax Financial Holdings Ltd., 4.13%, Aug 09, 2046 640 600 5.84%, Oct 14, 2022 2,758 2,706 970 Enbridge, Inc., 760 Fairfax Financial Holdings Ltd., 4.53%, Mar 09, 2020 970 989 4.95%, Mar 03, 2025 794 798 2,500 Enbridge, Inc., 1,420 Fairfax Financial Holdings Ltd., 4.26%, Feb 01, 2021 2,596 2,561 4.70%, Dec 16, 2026 1,415 1,453 2,000 Enbridge, Inc., 1,865 Fairfax Financial Holdings Ltd., 3.19%, Dec 05, 2022 1,999 1,995 4.25%, Dec 06, 2027 1,865 1,828 1,560 Enbridge, Inc., 1,640 Fédération des caisses Desjardins du 3.20%, Jun 08, 2027 1,559 1,485 Québec, 450 Enbridge, Inc., 2.09%, Jan 17, 2022 1,640 1,606 7.22%, Jul 24, 2030 445 553 3,010 Fédération des caisses Desjardins du 100 Enbridge, Inc., Québec, 5.57%, Nov 14, 2035 101 109 2.39%, Aug 25, 2022 3,010 2,959 700 Enbridge, Inc., 2,000 Fédération des caisses Desjardins du 5.75%, Sep 02, 2039 699 778 Québec, 820 Enbridge, Inc., 3.06%, Sep 11, 2023 2,000 2,010 5.12%, Sep 28, 2040 891 841 150 Finning International, Inc., 1,650 Enbridge, Inc., 2.84%, Sep 29, 2021 150 150 4.24%, Aug 27, 2042 1,584 1,508 1,980 First Capital Realty, Inc., 1,815 Enbridge, Inc., 5.60%, Apr 30, 2020 2,036 2,049 4.57%, Mar 11, 2044 1,816 1,750

The accompanying notes are an integral part of the financial statements.

54 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 2,543 First Capital Realty, Inc., 146 FortisBC Energy, Inc., 4.50%, Mar 01, 2021 2,618 2,614 6.95%, Sep 21, 2029 174 194 850 First Capital Realty, Inc., 888 FortisBC Energy, Inc., 3.90%, Oct 30, 2023 860 856 5.90%, Feb 26, 2035 947 1,125 2,000 First Capital Realty, Inc., 320 FortisBC Energy, Inc., 4.79%, Aug 30, 2024 2,080 2,095 5.55%, Sep 25, 2036 321 397 130 First Capital Realty, Inc., 1,500 FortisBC Energy, Inc., 3.60%, May 06, 2026 130 126 6.00%, Oct 02, 2037 2,017 1,956 465 First Capital Realty, Inc., 575 FortisBC Energy, Inc., 3.75%, Jul 12, 2027 465 449 5.80%, May 13, 2038 576 735 2,190 First Capital Realty, Inc., Series S 200 FortisBC Energy, Inc., 4.32%, Jul 31, 2025 2,241 2,228 6.55%, Feb 24, 2039 234 277 2,785 First National Financial Corp., 150 FortisBC Energy, Inc., 4.01%, Apr 09, 2020 2,784 2,797 5.20%, Dec 06, 2040 150 182 300 First Nations Finance Authority, 1,000 FortisBC Energy, Inc., 3.40%, Jun 26, 2024 319 310 4.25%, Dec 09, 2041 1,144 1,068 1,250 Ford Credit Canada Co., 215 FortisBC Energy, Inc., 2.92%, Sep 16, 2020 1,250 1,231 3.78%, Mar 06, 2047 215 216 1,070 Ford Credit Canada Co., 80 FortisBC Energy, Inc., 2.58%, May 10, 2021 1,070 1,033 3.69%, Oct 30, 2047 80 79 1,780 Ford Credit Canada Co., 370 FortisBC Energy, Inc., 3.28%, Jul 02, 2021 1,780 1,740 3.85%, Dec 07, 2048 369 375 740 Ford Credit Canada Co., 200 FortisBC, Inc., 2.71%, Feb 23, 2022 740 702 5.60%, Nov 09, 2035 196 245 2,230 Ford Credit Canada Co., 340 FortisBC, Inc., 2.77%, Jun 22, 2022 2,230 2,104 6.10%, Jun 02, 2039 471 447 845 Ford Credit Canada Co., 500 FortisBC, Inc., 3.35%, Sep 19, 2022 845 804 5.00%, Nov 24, 2050 499 599 1,050 Ford Credit Canada Co., 2,000 GE Capital Canada Funding Co., 3.74%, May 08, 2023 1,050 1,004 4.60%, Jan 26, 2022 2,098 2,014 1,880 Fortified Trust, 2,880 General Motors Financial of Canada Ltd., 2.16%, Oct 23, 2020 1,880 1,865 3.08%, May 22, 2020 2,879 2,873 3,020 Fortified Trust, 925 General Motors Financial of Canada Ltd., 1.67%, Jul 23, 2021 3,020 2,940 3.00%, Feb 26, 2021 925 915 750 Fortis, Inc., 2,380 General Motors Financial of Canada Ltd., 2.85%, Dec 12, 2023 750 740 2.60%, Jun 01, 2022 2,378 2,285 500 Fortis, Inc., 3,000 Genesis Trust II, 6.51%, Jul 04, 2039 501 648 1.70%, Apr 15, 2020 3,000 2,969 500 FortisAlberta, Inc., 1,407 George Weston Ltd., 6.22%, Oct 31, 2034 592 646 4.12%, Jun 17, 2024 1,412 1,431 215 FortisAlberta, Inc., 1,000 George Weston Ltd., 5.40%, Apr 21, 2036 206 259 7.10%, Feb 05, 2032 1,194 1,233 1,100 FortisAlberta, Inc., 2,000 Glacier Credit Card Trust, 5.37%, Oct 30, 2039 1,102 1,346 2.24%, Sep 20, 2020 2,000 1,985 150 FortisAlberta, Inc., 890 Glacier Credit Card Trust, 4.27%, Sep 22, 2045 150 161 2.05%, Sep 20, 2022 890 862 240 FortisAlberta, Inc., 630 Glacier Credit Card Trust, 3.34%, Sep 21, 2046 240 221 3.14%, Sep 20, 2023 630 633 115 FortisAlberta, Inc., 341 Grand Renewable Solar LP, 4.99%, Jan 03, 2047 105 138 3.93%, Jan 31, 2035 341 341 260 FortisAlberta, Inc., 2,575 Greater Toronto Airports Authority, 3.67%, Sep 09, 2047 260 254 6.45%, Dec 03, 2027 3,267 3,268 635 FortisAlberta, Inc., 124 Greater Toronto Airports Authority, 3.73%, Sep 18, 2048 635 628 6.45%, Jul 30, 2029 137 147 250 FortisAlberta, Inc., 2,255 Greater Toronto Airports Authority, 4.80%, Oct 27, 2050 250 292 7.05%, Jun 12, 2030 2,884 3,065 775 FortisAlberta, Inc., 265 Greater Toronto Airports Authority, 3.98%, Oct 23, 2052 774 791 7.10%, Jun 04, 2031 322 366

The accompanying notes are an integral part of the financial statements.

55 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 600 Greater Toronto Airports Authority, 750 Hydro One, Inc., 6.98%, Oct 15, 2032 719 835 1.84%, Feb 24, 2021 750 737 1,585 Greater Toronto Airports Authority, 1,050 Hydro One, Inc., 6.47%, Feb 02, 2034 1,800 2,133 2.57%, Jun 25, 2021 1,050 1,047 360 Greater Toronto Airports Authority, 2,100 Hydro One, Inc., 3.26%, Jun 01, 2037 360 349 3.20%, Jan 13, 2022 2,290 2,123 25 Greater Toronto Airports Authority, 375 Hydro One, Inc., 5.63%, Jun 07, 2040 25 33 2.77%, Feb 24, 2026 375 365 900 Greater Toronto Airports Authority, 1,330 Hydro One, Inc., 5.30%, Feb 25, 2041 982 1,136 6.93%, Jun 01, 2032 1,577 1,770 1,740 Great-West Lifeco, Inc., 510 Hydro One, Inc., 4.65%, Aug 13, 2020 1,738 1,795 6.35%, Jan 31, 2034 589 658 965 Great-West Lifeco, Inc., 1,439 Hydro One, Inc., 6.74%, Nov 24, 2031 982 1,259 5.36%, May 20, 2036 1,561 1,713 1,040 Great-West Lifeco, Inc., 150 Hydro One, Inc., 6.67%, Mar 21, 2033 1,152 1,358 6.03%, Mar 03, 2039 164 195 236 H&R REIT, 1,585 Hydro One, Inc., 4.45%, Mar 02, 2020 242 240 5.49%, Jul 16, 2040 1,993 1,952 240 H&R REIT, 950 Hydro One, Inc., 3.42%, Jan 23, 2023 240 236 4.39%, Sep 26, 2041 1,115 1,021 1,500 H&R REIT, 1,200 Hydro One, Inc., 3.37%, Jan 30, 2024 1,512 1,457 4.59%, Oct 09, 2043 1,486 1,331 5,250 Health Montreal Collective LP, 745 Hydro One, Inc., 6.72%, Sep 30, 2049 5,250 6,751 4.17%, Jun 06, 2044 761 776 3,000 Hollis Receivables Term Trust II, 335 Hydro One, Inc., 1.79%, Feb 26, 2020 3,016 2,975 3.91%, Feb 23, 2046 337 335 750 Honda Canada Finance, Inc., 500 Hydro One, Inc., 1.82%, Dec 07, 2021 750 727 3.72%, Nov 18, 2047 500 485 1,650 Honda Canada Finance, Inc., 1,330 Hydro One, Inc., 2.27%, Jul 15, 2022 1,650 1,610 3.63%, Jun 25, 2049 1,330 1,264 1,880 Honda Canada Finance, Inc., 750 Hydro One, Inc., 2.54%, Mar 01, 2023 1,880 1,841 3.79%, Jul 31, 2062 793 718 670 Honda Canada Finance, Inc., 2,960 Hydro-Québec, 3.18%, Aug 28, 2023 670 672 11.00%, Aug 15, 2020 4,779 3,379 1,764 Hospital Infrastructure Partners NOH 130 Hydro-Québec, Partnership, 10.50%, Oct 15, 2021 217 159 5.44%, Jan 31, 2045 1,764 2,073 1,238 Hydro-Québec, 4,000 HSBC Bank Canada, 9.63%, Jul 15, 2022 1,874 1,543 2.94%, Jan 14, 2020 4,000 4,014 1,280 Hydro-Québec, 4,840 HSBC Bank Canada, 6.00%, Aug 15, 2031 1,706 1,686 1.82%, Jul 07, 2020 4,840 4,775 4,555 Hydro-Québec, 2,000 HSBC Bank Canada, 6.50%, Feb 15, 2035 5,706 6,508 2.45%, Jan 29, 2021 2,000 1,984 2,655 Hydro-Québec, 3,100 HSBC Bank Canada, 6.00%, Feb 15, 2040 3,133 3,812 2.91%, Sep 29, 2021 3,161 3,098 3,060 Hydro-Québec, 740 HSBC Bank Canada, 5.00%, Feb 15, 2045 3,563 4,053 2.17%, Jun 29, 2022 740 719 3,520 Hydro-Québec, 1,430 HSBC Bank Canada, 5.00%, Feb 15, 2050 4,090 4,813 2.54%, Jan 31, 2023 1,430 1,399 4,940 Hydro-Québec, 1,500 HSBC Bank Canada, 4.00%, Feb 15, 2055 5,805 5,878 3.25%, Sep 15, 2023 1,500 1,506 560 IGM Financial, Inc., 1,400 Husky Energy, Inc., 3.44%, Jan 26, 2027 560 555 3.60%, Mar 10, 2027 1,397 1,346 505 IGM Financial, Inc., 1,500 Hydro One, Inc., 6.65%, Dec 13, 2027 476 615 1.62%, Apr 30, 2020 1,500 1,482 255 IGM Financial, Inc., 1,000 Hydro One, Inc., 7.45%, May 09, 2031 323 334 4.40%, Jun 01, 2020 1,000 1,025 465 IGM Financial, Inc., 7.11%, Mar 07, 2033 576 602

The accompanying notes are an integral part of the financial statements.

56 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 805 IGM Financial, Inc., 930 Laurentian Bank of Canada, 6.00%, Dec 10, 2040 1,013 979 3.45%, Jun 27, 2023 930 920 370 IGM Financial, Inc., 2,500 Loblaw Cos., Ltd., 4.56%, Jan 25, 2047 370 379 5.22%, Jun 18, 2020 2,726 2,586 430 IGM Financial, Inc., 1,000 Loblaw Cos., Ltd., 4.12%, Dec 09, 2047 430 410 4.86%, Sep 12, 2023 1,021 1,056 430 IGM Financial, Inc., 200 Loblaw Cos., Ltd., 4.17%, Jul 13, 2048 430 414 3.92%, Jun 10, 2024 200 204 943 Industrial Alliance Insurance & Financial 100 Loblaw Cos., Ltd., Services, Inc., 4.49%, Dec 11, 2028 100 103 3.30%, Sep 15, 2028 943 945 1,000 Loblaw Cos., Ltd., 1,135 Intact Financial Corp., 6.50%, Jan 22, 2029 1,044 1,180 2.85%, Jun 07, 2027 1,135 1,082 1,055 Loblaw Cos., Ltd., 600 Intact Financial Corp., 6.05%, Jun 09, 2034 997 1,216 6.40%, Nov 23, 2039 737 791 800 Loblaw Cos., Ltd., 600 Intact Financial Corp., 6.15%, Jan 29, 2035 877 931 5.16%, Jun 16, 2042 664 685 480 Loblaw Cos., Ltd., 831 Integrated Team Solutions PCH Partnership, 5.90%, Jan 18, 2036 465 547 4.88%, May 31, 2046 831 952 100 Loblaw Cos., Ltd., 937 Integrated Team Solutions SJHC Partnership, 6.45%, Mar 01, 2039 99 122 5.95%, Nov 30, 2042 937 1,156 2,000 Lower Mattagami Energy LP, 4,000 Inter Pipeline Ltd., 4.33%, May 18, 2021 2,262 2,076 3.45%, Jul 20, 2020 4,000 4,030 2,000 Lower Mattagami Energy LP, 750 Inter Pipeline Ltd., 3.42%, Jun 20, 2024 2,135 2,054 2.61%, Sep 13, 2023 750 719 200 Lower Mattagami Energy LP, 370 Inter Pipeline Ltd., 2.31%, Oct 21, 2026 200 189 2.73%, Apr 18, 2024 370 353 84 Lower Mattagami Energy LP, 1,331 Inter Pipeline Ltd., 5.14%, May 18, 2041 102 102 3.17%, Mar 24, 2025 1,332 1,283 1,800 Lower Mattagami Energy LP, 1,160 Inter Pipeline Ltd., 4.18%, Feb 23, 2046 1,800 1,920 3.48%, Dec 16, 2026 1,160 1,117 2,400 Manitoba Telecom Services, Inc., 1,408 Inter Pipeline Ltd., 4.00%, May 27, 2024 2,398 2,456 4.64%, May 30, 2044 1,460 1,335 750 Manulife Bank of Canada, 1,500 Ivanhoe Cambridge II, Inc., 1.92%, Sep 01, 2021 750 732 2.91%, Jun 27, 2023 1,500 1,500 1,800 Manulife Bank of Canada, 1,020 John Deere Canada Funding, Inc., 2.08%, May 26, 2022 1,800 1,750 1.60%, Jul 13, 2020 1,019 1,005 560 Manulife Bank of Canada, 1,200 John Deere Canada Funding, Inc., 2.84%, Jan 12, 2023 560 556 2.05%, Sep 17, 2020 1,199 1,188 1,580 Manulife Financial Corp., FRN 750 John Deere Canada Funding, Inc., 3.05%, Aug 20, 2029 1,580 1,541 2.63%, Sep 21, 2022 750 743 920 McGill University, 100 John Deere Canada Funding, Inc., 6.15%, Sep 22, 2042 1,043 1,281 2.70%, Jan 17, 2023 100 99 455 McGill University, 435 John Deere Canada Funding, Inc., 3.98%, Jan 29, 2056 455 492 3.02%, Jul 13, 2023 435 436 830 Metro, Inc., 300 John Deere Financial, Inc., 3.20%, Dec 01, 2021 830 831 3.07%, Jul 23, 2021 300 302 1,230 Metro, Inc., 620 Keyera Corp., 3.39%, Dec 06, 2027 1,226 1,178 3.93%, Jun 21, 2028 620 611 810 Metro, Inc., 1,943 Kingston Solar LP, 5.97%, Oct 15, 2035 746 939 3.57%, Jul 31, 2035 1,943 1,894 290 Metro, Inc., 3,300 Laurentian Bank of Canada, 5.03%, Dec 01, 2044 290 303 2.50%, Jan 23, 2020 3,282 3,286 780 Metro, Inc., 1,622 Laurentian Bank of Canada, 4.27%, Dec 04, 2047 732 726 2.75%, Apr 22, 2021 1,617 1,603 101 Milit-Air, Inc., 750 Laurentian Bank of Canada, 5.75%, Jun 30, 2019 101 102 3.00%, Sep 12, 2022 749 735 230 Morguard Corp., 4.09%, May 14, 2021 230 230

The accompanying notes are an integral part of the financial statements.

57 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 1,000 Muskrat Falls / Labrador Transmission Assets 88 North West Redwater Partnership / NWR Funding Trust, Financing Co., Ltd., 3.63%, Jun 01, 2029 1,017 1,089 4.35%, Jan 10, 2039 93 90 3,750 Muskrat Falls / Labrador Transmission Assets 1,520 North West Redwater Partnership / NWR Funding Trust, Financing Co., Ltd., 3.86%, Dec 01, 2048 3,917 4,393 4.05%, Jul 22, 2044 1,652 1,493 2,820 National Bank of Canada, 623 Northwestconnect Group Partnership, 1.74%, Mar 03, 2020 2,811 2,796 5.95%, Apr 30, 2041 780 738 2,020 National Bank of Canada, 800 NOVA Gas Transmission Ltd., 1.81%, Jul 26, 2021 2,020 1,973 9.90%, Dec 16, 2024 1,166 1,071 5,230 National Bank of Canada, 1,296 Nova Scotia Power, Inc., 2.11%, Mar 18, 2022 5,253 5,115 8.85%, May 19, 2025 1,791 1,677 2,840 National Bank of Canada, 1,000 Nova Scotia Power, Inc., 1.96%, Jun 30, 2022 2,808 2,756 6.95%, Aug 25, 2033 1,223 1,352 900 National Bank of Canada, FRN 75 Nova Scotia Power, Inc., 3.18%, Feb 01, 2028 900 879 5.67%, Nov 14, 2035 75 91 569 NAV CANADA, 100 Nova Scotia Power, Inc., 7.56%, Mar 01, 2027 656 671 5.95%, Jul 27, 2039 100 128 680 NAV CANADA, 465 Nova Scotia Power, Inc., 7.40%, Jun 01, 2027 955 901 4.15%, Mar 06, 2042 467 479 640 NAV CANADA, 700 Nova Scotia Power, Inc., 3.29%, Mar 30, 2048 640 618 4.50%, Jul 20, 2043 705 755 175 NBC Asset Trust, 1,000 Nova Scotia Power, Inc., 7.45%, Dec 31, 2049 175 186 3.61%, May 01, 2045 1,000 939 887 Newfoundland and Labrador Hydro, 450 OMERS Realty Corp., 8.40%, Feb 27, 2026 1,261 1,199 3.20%, Jul 24, 2020 450 454 1,500 Newfoundland and Labrador Hydro, 380 OMERS Realty Corp., 6.65%, Aug 27, 2031 1,699 2,021 1.82%, May 09, 2022 380 368 780 Newfoundland and Labrador Hydro, 2,500 OMERS Realty Corp., 3.60%, Dec 01, 2045 739 790 3.36%, Jun 05, 2023 2,671 2,550 520 Nissan Canada Financial Services, Inc., 840 OMERS Realty Corp., 1.75%, Apr 09, 2020 520 513 2.86%, Feb 23, 2024 840 838 1,880 Nissan Canada Financial Services, Inc., 1,330 OMERS Realty Corp., 2.42%, Oct 19, 2020 1,880 1,860 3.24%, Oct 04, 2027 1,330 1,337 360 Nissan Canada Financial Services, Inc., 680 OMERS Realty Corp., 2.61%, Mar 05, 2021 360 356 3.63%, Jun 05, 2030 680 696 1,480 Nissan Canada Financial Services, Inc., 1,290 Ontario Electricity Financial Corp., 3.15%, Sep 14, 2021 1,480 1,480 10.00%, Feb 06, 2020 1,983 1,401 2,987 North Battleford Power LP, 200 Ontario Electricity Financial Corp., 4.96%, Dec 31, 2032 2,987 3,274 11.50%, Nov 27, 2020 353 235 2,000 North West Redwater Partnership / NWR 1,025 Ontario Electricity Financial Corp., Financing Co., Ltd., 10.13%, Oct 15, 2021 1,585 1,240 2.10%, Feb 23, 2022 1,990 1,945 1,650 Ontario Electricity Financial Corp., 2,585 North West Redwater Partnership / NWR 8.90%, Aug 18, 2022 2,361 2,018 Financing Co., Ltd., 760 Ontario Electricity Financial Corp., 3.20%, Apr 24, 2026 2,703 2,548 8.50%, May 26, 2025 1,129 1,014 740 North West Redwater Partnership / NWR 1,200 Ontario Electricity Financial Corp., Financing Co., Ltd., 8.25%, Jun 22, 2026 1,730 1,634 2.80%, Jun 01, 2027 738 701 910 Ontario Power Generation, Inc., 1,300 North West Redwater Partnership / NWR 3.84%, Jun 22, 2048 910 866 Financing Co., Ltd., 429 Ontario School Boards Financing Corp., 4.15%, Jun 01, 2033 1,441 1,328 5.80%, Nov 07, 2028 526 487 1,720 North West Redwater Partnership / NWR 750 OPB Finance Trust, Financing Co., Ltd., 2.95%, Feb 02, 2026 750 754 3.65%, Jun 01, 2035 1,719 1,649 3,422 OPB Finance Trust, 2,620 North West Redwater Partnership / NWR 2.98%, Jan 25, 2027 3,416 3,431 Financing Co., Ltd., 1,065 Original Wempi, Inc., 4.75%, Jun 01, 2037 3,027 2,829 4.31%, Feb 13, 2024 1,151 1,089

The accompanying notes are an integral part of the financial statements.

58 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 650 Ottawa Macdonald-Cartier International 380 RioCan REIT, Airport Authority, 3.21%, Sep 29, 2023 380 373 3.93%, Jun 09, 2045 650 668 3,900 Rogers Communications, Inc., 180 Ottawa-Carleton Catholic District School 4.70%, Sep 29, 2020 4,241 4,019 Board, 5,000 Rogers Communications, Inc., 6.50%, Mar 22, 2022 191 200 5.34%, Mar 22, 2021 5,173 5,245 1,240 Pembina Pipeline Corp., 500 Rogers Communications, Inc., 2.99%, Jan 22, 2024 1,231 1,206 4.00%, Jun 06, 2022 498 513 1,000 Pembina Pipeline Corp., 1,000 Rogers Communications, Inc., 3.54%, Feb 03, 2025 1,014 989 6.68%, Nov 04, 2039 999 1,253 750 Pembina Pipeline Corp., 1,455 Rogers Communications, Inc., 3.71%, Aug 11, 2026 750 741 6.11%, Aug 25, 2040 1,454 1,716 3,500 Pembina Pipeline Corp., 1,000 Rogers Communications, Inc., 4.24%, Jun 15, 2027 3,500 3,561 6.56%, Mar 22, 2041 1,211 1,242 1,200 Pembina Pipeline Corp., 4,500 Royal Bank of Canada, 4.02%, Mar 27, 2028 1,200 1,193 1.92%, Jul 17, 2020 4,496 4,457 347 Pembina Pipeline Corp., 3,150 Royal Bank of Canada, 4.75%, Apr 30, 2043 354 332 2.86%, Mar 04, 2021 3,150 3,162 1,250 Pembina Pipeline Corp., 5,300 Royal Bank of Canada, 4.81%, Mar 25, 2044 1,262 1,207 2.03%, Mar 15, 2021 5,298 5,227 1,765 Pembina Pipeline Corp., 1,510 Royal Bank of Canada, 4.74%, Jan 21, 2047 1,736 1,694 1.65%, Jul 15, 2021 1,510 1,470 2,221 Plenary Health Care Partnerships 1,975 Royal Bank of Canada, Humber LP, 1.58%, Sep 13, 2021 1,975 1,916 4.90%, May 31, 2039 2,221 2,455 8,530 Royal Bank of Canada, 2,014 Plenary Properties LTAP LP, 1.97%, Mar 02, 2022 8,587 8,319 6.29%, Jan 31, 2044 2,131 2,592 2,960 Royal Bank of Canada, 428 Power Corp. of Canada, 2.00%, Mar 21, 2022 2,960 2,887 8.57%, Apr 22, 2039 429 651 3,225 Royal Bank of Canada, 550 Power Corp. of Canada, 2.36%, Dec 05, 2022 3,225 3,165 4.81%, Jan 31, 2047 550 571 4,850 Royal Bank of Canada, 950 Power Corp. of Canada, 2.95%, May 01, 2023 4,850 4,861 4.46%, Jul 27, 2048 950 955 3,700 Royal Bank of Canada, 565 Power Financial Corp., 3.30%, Sep 26, 2023 3,700 3,717 6.90%, Mar 11, 2033 690 733 6,000 Royal Bank of Canada, 1,830 PSP Capital, Inc., 2.99%, Dec 06, 2024 6,000 6,014 3.03%, Oct 22, 2020 1,868 1,860 2,200 Royal Bank of Canada, 2,640 PSP Capital, Inc., 2.48%, Jun 04, 2025 2,198 2,186 1.34%, Aug 18, 2021 2,639 2,583 2,030 Royal Bank of Canada, 2,230 PSP Capital, Inc., 4.93%, Jul 16, 2025 2,056 2,259 1.73%, Jun 21, 2022 2,230 2,186 2,000 Royal Bank of Canada, 2,640 PSP Capital, Inc., 3.45%, Sep 29, 2026 2,036 2,013 2.09%, Nov 22, 2023 2,640 2,593 291 Royal Bank of Canada, FRN 3,781 PSP Capital, Inc., 3.04%, Jul 17, 2024 293 292 3.29%, Apr 04, 2024 3,824 3,923 3,325 Royal Bank of Canada, FRN 1,600 PSP Capital, Inc., 3.31%, Jan 20, 2026 3,387 3,341 3.00%, Nov 05, 2025 1,597 1,633 1,510 Saputo, Inc., 365 Reliance LP, 2.20%, Jun 23, 2021 1,510 1,480 3.84%, Mar 15, 2025 365 359 740 Saputo, Inc., 5,300 RioCan REIT, 1.94%, Jun 13, 2022 740 710 3.62%, Jun 01, 2020 5,388 5,352 885 Saputo, Inc., 2,000 RioCan REIT, 2.83%, Nov 21, 2023 885 860 3.75%, May 30, 2022 2,011 2,023 530 Saputo, Inc., 775 RioCan REIT, 3.60%, Aug 14, 2025 530 528 2.83%, Oct 03, 2022 775 758 1,644 Scotiabank Capital Trust, FRN 1,200 RioCan REIT, 5.65%, Dec 31, 2056 1,687 1,940 3.73%, Apr 18, 2023 1,202 1,207 1,080 Scotiabank Tier I Trust, 7.80%, Jun 30, 2108 1,105 1,106

The accompanying notes are an integral part of the financial statements.

59 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 1,470 Shaw Communications, Inc., 700 TELUS Communications, Inc., 5.50%, Dec 07, 2020 1,462 1,537 9.65%, Apr 08, 2022 1,042 834 2,200 Shaw Communications, Inc., 310 TELUS Communications, Inc., 4.35%, Jan 31, 2024 2,238 2,265 8.80%, Sep 22, 2025 420 398 440 Shaw Communications, Inc., 1,090 TELUS Corp., 3.80%, Mar 01, 2027 440 431 3.20%, Apr 05, 2021 1,087 1,095 3,100 Shaw Communications, Inc., 2,860 TELUS Corp., 4.40%, Nov 02, 2028 3,091 3,107 2.35%, Mar 28, 2022 2,852 2,792 2,670 Shaw Communications, Inc., 1,500 TELUS Corp., 6.75%, Nov 09, 2039 2,905 3,185 3.35%, Mar 15, 2023 1,432 1,502 430 Simon Fraser University, 1,875 TELUS Corp., 5.61%, Jun 10, 2043 483 563 3.35%, Apr 01, 2024 1,864 1,866 1,400 Sinai Health System, 3,000 TELUS Corp., 3.53%, Jun 09, 2056 1,400 1,357 3.75%, Jan 17, 2025 3,125 3,032 900 Smart REIT, 260 TELUS Corp., 3.44%, Aug 28, 2026 901 857 3.63%, Mar 01, 2028 257 255 275 SmartCentres REIT, 366 TELUS Corp., 2.88%, Mar 21, 2022 275 270 4.40%, Apr 01, 2043 363 343 750 SmartCentres REIT, 660 TELUS Corp., 2.99%, Aug 28, 2024 751 715 5.15%, Nov 26, 2043 657 687 355 SmartCentres REIT, 2,730 TELUS Corp., 3.83%, Dec 21, 2027 355 342 4.85%, Apr 05, 2044 2,691 2,729 650 SNC-Lavalin Group, Inc., 1,000 TELUS Corp., 2.69%, Nov 24, 2020 650 645 4.40%, Jan 29, 2046 1,000 930 830 SNC-Lavalin Group, Inc., 1,270 TELUS Corp., 3.24%, Mar 02, 2023 830 818 4.70%, Mar 06, 2048 1,270 1,240 1,424 SNC-Lavalin Innisfree McGill Finance, Inc., 2,000 Teranet Holdings LP, 6.63%, Jun 30, 2044 1,469 1,826 5.75%, Dec 17, 2040 2,413 2,037 2,000 SSL Finance, Inc. / SSL Financement, Inc., 2,700 The 55 Ontario School Board Trust, 4.18%, Apr 30, 2049 2,000 1,957 5.90%, Jun 02, 2033 2,773 3,486 220 Sun Life Capital Trust, 470 The Bank of Nova Scotia, 7.09%, Jun 30, 2052 262 287 2.27%, Jan 13, 2020 476 469 370 Sun Life Capital Trust II, 6,000 The Bank of Nova Scotia, 5.86%, Dec 31, 2108 373 381 2.13%, Jun 15, 2020 6,015 5,964 1,000 Sun Life Financial, Inc., 1,875 The Bank of Nova Scotia, 2.77%, May 13, 2024 1,000 1,001 2.09%, Sep 09, 2020 1,875 1,859 800 Sun Life Financial, Inc., 4,000 The Bank of Nova Scotia, 2.60%, Sep 25, 2025 799 796 3.27%, Jan 11, 2021 4,000 4,046 750 Sun Life Financial, Inc., 4,000 The Bank of Nova Scotia, 2.75%, Nov 23, 2027 750 738 2.87%, Jun 04, 2021 4,000 4,013 2,100 Sun Life Financial, Inc., 3,230 The Bank of Nova Scotia, 3.05%, Sep 19, 2028 2,097 2,079 1.90%, Dec 02, 2021 3,229 3,150 1,295 Sun Life Financial, Inc., 2,230 The Bank of Nova Scotia, 5.40%, May 29, 2042 1,200 1,490 1.83%, Apr 27, 2022 2,229 2,160 2,800 Suncor Energy, Inc., 3,595 The Bank of Nova Scotia, 3.10%, Nov 26, 2021 2,921 2,811 2.36%, Nov 08, 2022 3,594 3,525 2,038 Suncor Energy, Inc., 1,650 The Bank of Nova Scotia, 3.00%, Sep 14, 2026 2,028 1,973 2.98%, Apr 17, 2023 1,649 1,653 1,920 Suncor Energy, Inc., 2,230 The Bank of Nova Scotia, 5.39%, Mar 26, 2037 2,071 2,192 2.29%, Jun 28, 2024 2,230 2,152 750 Suncor Energy, Inc., 3,000 The Bank of Nova Scotia, 4.34%, Sep 13, 2046 749 754 3.04%, Oct 18, 2024 3,000 3,007 740 TD Capital Trust IV, 540 The Bank of Nova Scotia, 6.63%, Jun 30, 2108 740 802 8.90%, Jun 20, 2025 790 716 1,980 TD Capital Trust IV, 2,570 The Bank of Nova Scotia, 9.52%, Jun 30, 2108 2,517 2,044 2.62%, Dec 02, 2026 2,486 2,482 75 TELUS Communications, Inc., 5,010 The Bank of Nova Scotia, 10.65%, Jun 19, 2021 110 88 3.10%, Feb 02, 2028 4,970 4,980

The accompanying notes are an integral part of the financial statements.

60 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 750 The Empire Life Insurance Co., 1,000 Toronto Hydro Corp., 3.38%, Dec 16, 2026 750 751 5.54%, May 21, 2040 1,251 1,265 1,400 The Manufacturers Life Insurance Co., 1,000 Toronto Hydro Corp., 2.81%, Feb 21, 2024 1,400 1,401 3.55%, Jul 28, 2045 998 970 3,000 The Manufacturers Life Insurance Co., 320 Toronto Hydro Corp., 2.64%, Jan 15, 2025 3,000 2,999 3.49%, Feb 28, 2048 320 306 1,500 The Manufacturers Life Insurance Co., 750 Toyota Credit Canada, Inc., 2.10%, Jun 01, 2025 1,500 1,485 1.80%, Feb 19, 2020 749 744 1,000 The Manufacturers Life Insurance Co., 1,500 Toyota Credit Canada, Inc., 3.18%, Nov 22, 2027 1,000 1,003 2.05%, May 20, 2020 1,499 1,489 2,100 The Toronto-Dominion Bank, 380 Toyota Credit Canada, Inc., 1.69%, Apr 02, 2020 2,100 2,080 2.20%, Feb 25, 2021 379 376 750 The Toronto-Dominion Bank, 300 Toyota Credit Canada, Inc., 2.56%, Jun 24, 2020 750 750 1.75%, Jul 21, 2021 299 292 3,970 The Toronto-Dominion Bank, 3,000 Toyota Credit Canada, Inc., 2.05%, Mar 08, 2021 3,943 3,919 2.02%, Feb 28, 2022 2,999 2,921 3,800 The Toronto-Dominion Bank, 300 Toyota Credit Canada, Inc., 1.68%, Jun 08, 2021 3,801 3,723 2.35%, Jul 18, 2022 300 294 3,800 The Toronto-Dominion Bank, 450 Toyota Credit Canada, Inc., 2.62%, Dec 22, 2021 3,825 3,786 2.62%, Oct 11, 2022 450 444 6,345 The Toronto-Dominion Bank, 500 Toyota Credit Canada, Inc., 1.99%, Mar 23, 2022 6,253 6,194 2.70%, Jan 25, 2023 500 493 900 The Toronto-Dominion Bank, 1,730 Toyota Credit Canada, Inc., 3.01%, May 30, 2023 900 905 3.04%, Jul 12, 2023 1,730 1,728 6,150 The Toronto-Dominion Bank, 790 TransCanada PipeLines Ltd., 3.23%, Jul 24, 2024 6,497 6,238 11.80%, Nov 20, 2020 1,259 915 125 The Toronto-Dominion Bank, 5,000 TransCanada PipeLines Ltd., 9.15%, May 26, 2025 174 168 3.65%, Nov 15, 2021 5,249 5,103 2,220 The Toronto-Dominion Bank, 495 TransCanada PipeLines Ltd., 3.59%, Sep 14, 2028 2,220 2,211 9.95%, Dec 01, 2022 752 613 1,670 The Toronto-Dominion Bank, 2,260 TransCanada PipeLines Ltd., 4.86%, Mar 04, 2031 1,802 1,773 3.69%, Jul 19, 2023 2,276 2,308 2,720 The Toronto-Dominion Bank, Deposit Note 1,546 TransCanada PipeLines Ltd., 1.91%, Jul 18, 2023 2,728 2,608 8.29%, Feb 05, 2026 2,102 1,982 3,616 The Toronto-Dominion Bank, FRN 314 TransCanada PipeLines Ltd., 2.69%, Jun 24, 2025 3,629 3,603 7.31%, Jan 15, 2027 313 389 2,100 The Toronto-Dominion Bank, FRN 350 TransCanada PipeLines Ltd., 2.98%, Sep 30, 2025 2,124 2,100 7.90%, Apr 15, 2027 460 449 5,950 The Toronto-Dominion Bank, FRN 750 TransCanada PipeLines Ltd., 3.22%, Jul 25, 2029 5,950 5,793 3.39%, Mar 15, 2028 750 729 380 The University of Western Ontario, 250 TransCanada PipeLines Ltd., 3.39%, Dec 04, 2057 380 372 6.89%, Aug 07, 2028 264 308 1,700 Thomson Reuters Corp., 200 TransCanada PipeLines Ltd., 3.31%, Nov 12, 2021 1,763 1,717 6.50%, Dec 09, 2030 234 237 1,709 THP Partnership, 705 TransCanada PipeLines Ltd., 4.39%, Oct 31, 2046 1,709 1,839 8.23%, Jan 16, 2031 991 952 385 TMX Group Ltd., 870 TransCanada PipeLines Ltd., 3.00%, Dec 11, 2024 385 380 8.05%, Feb 17, 2039 1,340 1,238 1,010 TMX Group Ltd., 2,030 TransCanada PipeLines Ltd., 3.78%, Jun 05, 2028 1,010 1,021 4.55%, Nov 15, 2041 2,014 2,004 680 Toromont Industries Ltd., 1,560 TransCanada PipeLines Ltd., 3.84%, Oct 27, 2027 680 684 4.35%, Jun 06, 2046 1,556 1,491 500 Toronto Hydro Corp., 1,000 TransCanada PipeLines Ltd., 3.54%, Nov 18, 2021 500 513 4.33%, Sep 16, 2047 1,000 949 2,800 Toronto Hydro Corp., 1,680 TransCanada PipeLines Ltd., 2.91%, Apr 10, 2023 2,799 2,817 4.18%, Jul 03, 2048 1,679 1,549 650 Toronto Hydro Corp., 620 Trillium Health Partners Volunteers, 2.52%, Aug 25, 2026 650 631 3.70%, Dec 20, 2058 620 617

The accompanying notes are an integral part of the financial statements.

61 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 534 UMH Energy Partnership, 100 Westcoast Energy, Inc., 7.59%, May 08, 2041 532 738 4.79%, Oct 28, 2041 95 103 75 Union Gas Ltd., 719 Winnipeg Airport Authority, Inc., 4.85%, Apr 25, 2022 75 80 5.21%, Sep 28, 2040 830 825 480 Union Gas Ltd., 246 Winnipeg Airport Authority, Inc., 3.19%, Sep 17, 2025 480 482 6.10%, Nov 20, 2040 246 306 325 Union Gas Ltd., 1,160 Winnipeg Airport Authority, Inc., 2.81%, Jun 01, 2026 325 316 3.66%, Sep 30, 2047 1,160 1,165 750 Union Gas Ltd., 392 York Region District School Board, 2.88%, Nov 22, 2027 749 728 6.45%, Jun 04, 2024 409 433 1,690 Union Gas Ltd., 600 York University, 5.46%, Sep 11, 2036 1,650 2,029 6.48%, Mar 07, 2042 701 870 490 Union Gas Ltd., 950 York University, 5.20%, Jul 23, 2040 488 582 3.58%, May 26, 2056 950 936 1,550 Union Gas Ltd., 978,270 983,254 4.20%, Jun 02, 2044 1,551 1,625 300 Union Gas Ltd., Municipal Bonds 2.2% 3.80%, Jun 01, 2046 300 295 3,500 City of Montreal, 505 Union Gas Ltd., 3.50%, Sep 01, 2023 3,479 3,630 3.59%, Nov 22, 2047 504 477 1,500 City of Montreal, 750 University of British Columbia, 3.50%, Sep 01, 2024 1,578 1,558 4.82%, Jul 26, 2035 901 878 1,325 City of Montreal, 320 University of Guelph, 2.75%, Sep 01, 2026 1,323 1,306 6.24%, Oct 10, 2042 454 446 920 City of Montreal, 750 University of Ottawa, 3.00%, Sep 01, 2027 919 919 6.28%, Apr 15, 2043 1,093 1,072 1,170 City of Montreal, 650 University of Ottawa, 3.15%, Sep 01, 2028 1,165 1,177 3.26%, Oct 12, 2056 650 602 1,000 City of Montreal, 1,000 University of Toronto, 4.25%, Dec 01, 2032 938 1,107 4.25%, Dec 07, 2051 1,026 1,133 1,500 City of Montreal, 1,050 Vancouver Airport Authority, 4.10%, Dec 01, 2034 1,542 1,624 3.66%, Nov 23, 2048 1,050 1,081 1,300 City of Montreal, 500 Vancouver Fraser Port Authority, 3.15%, Dec 01, 2036 1,277 1,249 4.63%, Apr 20, 2020 500 511 640 City of Montreal, 740 Ventas Canada Finance Ltd., 3.50%, Dec 01, 2038 641 642 2.55%, Mar 15, 2023 740 716 1,700 City of Montreal, 700 Ventas Canada Finance Ltd., 6.00%, Jun 01, 2043 1,895 2,399 4.13%, Sep 30, 2024 720 718 900 City of Ottawa, 750 Veresen, Inc., 3.10%, Jul 27, 2048 858 843 3.43%, Nov 10, 2021 750 754 2,000 City of Ottawa, 1,500 VW Credit Canada, Inc., 4.20%, Jul 30, 2053 1,995 2,300 2.90%, Mar 29, 2021 1,498 1,491 2,000 City of Toronto, 740 VW Credit Canada, Inc., 3.50%, Dec 06, 2021 2,018 2,064 3.70%, Nov 14, 2022 739 746 2,000 City of Toronto, 750 VW Credit Canada, Inc., 3.90%, Sep 29, 2023 2,273 2,112 3.25%, Mar 29, 2023 749 742 1,000 City of Toronto, 3,650 Wells Fargo Canada Corp., 3.40%, May 21, 2024 997 1,033 3.04%, Jan 29, 2021 3,706 3,667 500 City of Toronto, 100 Westcoast Energy, Inc., 2.45%, Feb 06, 2025 492 490 9.90%, Jan 10, 2020 147 107 940 City of Toronto, 2,200 Westcoast Energy, Inc., 2.40%, Jun 24, 2026 940 907 4.57%, Jul 02, 2020 2,233 2,256 890 City of Toronto, 2,000 Westcoast Energy, Inc., 2.40%, Jun 07, 2027 888 849 3.12%, Dec 05, 2022 1,999 2,003 500 City of Toronto, 525 Westcoast Energy, Inc., 2.95%, Apr 28, 2035 457 471 8.85%, Jul 21, 2025 664 682 2,510 City of Toronto, 1,150 Westcoast Energy, Inc., 3.50%, Jun 02, 2036 2,502 2,533 6.75%, Dec 15, 2027 1,139 1,401 1,515 City of Toronto, 5.20%, Jun 01, 2040 1,768 1,915

The accompanying notes are an integral part of the financial statements.

62 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 775 City of Toronto, 2,200 South Coast British Columbia Transportation 4.70%, Jun 10, 2041 850 922 Authority, 800 City of Toronto, 4.45%, Jun 09, 2044 2,228 2,571 3.80%, Dec 13, 2042 797 841 2,187 The Regional Municipality of York, 1,390 City of Toronto, 4.00%, Jun 30, 2021 2,394 2,278 3.25%, Jun 24, 2046 1,352 1,327 1,170 The Regional Municipality of York, 650 City of Toronto, 2.60%, Dec 15, 2025 1,160 1,152 3.20%, Aug 01, 2048 648 616 380 The Regional Municipality of York, 780 City of Vancouver, 2.50%, Jun 02, 2026 389 370 4.50%, Jun 01, 2020 777 806 1,000 The Regional Municipality of York, 450 City of Winnipeg, 3.65%, May 13, 2033 887 1,042 5.20%, Jul 17, 2036 441 551 2,150 The Regional Municipality of York, 940 Municipal Finance Authority of British 4.05%, May 01, 2034 2,219 2,338 Columbia, 66,221 68,563 4.45%, Jun 01, 2020 941 971 1,000 Municipal Finance Authority of British 3,085,103 3,095,710 Columbia, Global 0.4% 1.75%, Oct 15, 2020 999 993 Supranational Bonds 0.2% 1,250 Municipal Finance Authority of British 1,000 Inter-American Development Bank, Columbia, 1.88%, Mar 20, 2020 1,026 999 1.65%, Apr 19, 2021 1,248 1,234 800 Inter-American Development Bank, 2,020 Municipal Finance Authority of British 4.40%, Jan 26, 2026 942 887 Columbia, 3,000 International Bank for Reconstruction & 4.15%, Jun 01, 2021 2,215 2,110 Development, 690 Municipal Finance Authority of British 1.13%, Mar 11, 2020 3,011 2,972 Columbia, 1,130 International Bank for Reconstruction & 2.15%, Dec 01, 2022 690 682 Development, 2,350 Municipal Finance Authority of British 2.25%, Jan 17, 2023 1,123 1,129 Columbia, 6,102 5,987 3.75%, Sep 26, 2023 2,439 2,476 1,600 Municipal Finance Authority of British Corporate Bonds 0.2% Columbia, 1,500 Asian Development Bank, 2.80%, Dec 03, 2023 1,598 1,619 2.25%, Sep 16, 2021 1,575 1,505 1,975 Municipal Finance Authority of British 4,200 International Bank for Reconstruction & Columbia, Development, 2.95%, Oct 14, 2024 2,085 2,007 1.25%, Mar 18, 2021 4,169 4,138 1,000 Municipal Finance Authority of British 5,744 5,643 Columbia, 11,846 11,630 2.65%, Oct 02, 2025 997 996 1,410 Municipal Finance Authority of British United States 0.0% Columbia, Corporate Bonds 0.0% 4.95%, Dec 01, 2027 1,493 1,636 1,295 Manulife Finance Delaware LP, 1,270 Municipal Finance Authority of British 5.06%, Dec 15, 2041 1,134 1,394 Columbia, 3,098,083 3,108,734 3.05%, Oct 23, 2028 1,269 1,281 SHORT-TERM INVESTMENTS 0.1% 1,160 Regional Municipality of Peel, 2,680 Merit Trust, 5.10%, Jun 29, 2040 1,183 1,455 1.95%, Jan 02, 2019 2,680 2,680 1,500 Regional Municipality of Peel, 3.85%, Oct 30, 2042 1,513 1,596 Total investments 3,100,763 3,111,414 600 Regional Municipality of York, Other assets less liabilities 0.3% 10,601 4.50%, Jun 30, 2020 598 621 1,530 South Coast British Columbia Transportation Net assets attributable to Authority, contractholders 100.0% 3,122,015 3.25%, Nov 23, 2028 1,528 1,560 1,165 South Coast British Columbia Transportation Authority, 4.65%, Jun 20, 2041 1,338 1,384

The accompanying notes are an integral part of the financial statements.

63 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT) MANULIFE CANADIAN BOND INDEX FUND (MANULIFE ASSET MANAGEMENT)

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Bonds Canada Federal Bonds 33.2 34.6 Provincial Bonds 32.3 32.0 Corporate Bonds 31.5 30.5 Municipal Bonds 2.2 1.9 Global Supranational Bonds 0.2 0.1 Corporate Bonds 0.2 0.2 Short-Term Investments 0.1 0.4 Other assets less liabilities 0.3 0.3 100.0 100.0

The accompanying notes are an integral part of the financial statements.

64 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT REAL RETURN BOND FUND MANULIFE ASSET MANAGEMENT REAL RETURN BOND FUND

Cash flows from operating activities STATEMENTS OF COMPREHENSIVE INCOME Increase (decrease) in net assets attributable to contractholders (34) 552 For the years ended December 31 2018 2017 Adjustments for: ($ in thousands except for per unit amounts) Realized gain (loss) on sales of investments (409) (623) Change in unrealized appreciation (depreciation) in Income the value of investments 2,037 1,735 Interest for allocation purposes 1,597 1,686 Purchases of investments (22,354) (23,251) Income from securities lending 5 3 Proceeds from disposition of investments 22,059 26,448 Other income (loss) 16 - Interest, dividends and other receivables (10) 10 Realized gain (loss) on sales of investments 409 623 Accrued expenses and other liabilities - 1 Change in unrealized appreciation (depreciation) in the value of investments (2,037) (1,735) Net cash provided by (used in) operating activities 1,289 4,872 (10) 577 Cash flows from financing activities Expenses Proceeds from sale of units 9,591 9,802 Administration fees 24 25 Payments for units redeemed (10,902) (14,597) 24 25 Net cash provided by (used in) financing Increase (decrease) in net assets attributable activities (1,311) (4,795) to contractholders (34) 552 Net increase (decrease) in cash (22) 77 Increase (decrease) in net assets attributable to contractholders per unit Cash (bank overdraft) beginning of year 84 7 Group pension units (0.02) 0.15 Cash (bank overdraft) end of year 62 84 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 1,587 1,696

The accompanying notes are an integral part of the financial statements.

65 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT REAL RETURN BOND FUND MANULIFE ASSET MANAGEMENT REAL RETURN BOND FUND

SCHEDULE OF INVESTMENT PORTFOLIO As at December 31, 2018

PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) BONDS 99.7% Canada 99.7% Federal Bonds 87.8% 6,480 Canadian Government Bond, 1.50%, Dec 01, 2044 8,465 8,793 6,400 Canadian Government Bond, 1.25%, Dec 01, 2047 7,737 7,844 4,100 Canadian Government Real Return Bond, 4.25%, Dec 01, 2021 7,762 7,299 4,307 Canadian Government Real Return Bond, 4.25%, Dec 01, 2026 8,592 8,426 4,931 Canadian Government Real Return Bond, 4.00%, Dec 01, 2031 10,073 10,218 4,689 Canadian Government Real Return Bond, 3.00%, Dec 01, 2036 7,971 8,408 5,575 Canadian Government Real Return Bond, 2.00%, Dec 01, 2041 7,667 8,438 3,450 Canadian Government Real Return Bond, 0.50%, Dec 01, 2050 3,368 3,296 61,635 62,722 Provincial Bonds 11.9% 109 Province of Manitoba, 2.00%, Dec 01, 2036 129 143 2,501 Province of Ontario, 2.00%, Dec 01, 2036 2,878 3,380 630 Province of Quebec, 4.50%, Dec 01, 2021 1,019 961 922 Province of Quebec, 4.50%, Dec 01, 2026 1,716 1,705 799 Province of Quebec, 4.25%, Dec 01, 2031 1,419 1,485 555 Province of Quebec, 3.25%, Dec 01, 2036 795 825 7,956 8,499 Total investments 69,591 71,221 Other assets less liabilities 0.3% 230 Net assets attributable to contractholders 100.0% 71,451

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Bonds Canada Federal Bonds 87.8 87.5 Provincial Bonds 11.9 12.1 Other assets less liabilities 0.3 0.4 100.0 100.0

The accompanying notes are an integral part of the financial statements.

66 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 700,288 800,047 beginning of year 820,141 843,502 Cash 439 1,611 Increase (decrease) in net assets attributable to Margin deposited on derivatives 458 45 contractholders (28,151) 66,070 Subscriptions receivable 905 176 Security transactions Receivable from investments sold 63 - Proceeds from units issued 120,624 123,332 Interest, dividends and other receivables 1,645 18,351 Redemption of units (210,358) (212,763) Derivative assets - 54 Total security transactions (89,734) (89,431) 703,798 820,284 Net assets attributable to contractholders - end of Liabilities year 702,256 820,141 Current liabilities Redemptions payable 1,217 102 Accrued expenses and other liabilities 20 24 STATEMENTS OF CASH FLOWS Derivative liabilities 305 17 1,542 143 For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Net assets attributable to contractholders 702,256 820,141 Net assets attributable to contractholders per unit Cash flows from operating activities Group pension units 116.77 121.86 Increase (decrease) in net assets attributable to contractholders (28,151) 66,070 Adjustments for: STATEMENTS OF COMPREHENSIVE INCOME Distributions from underlying funds (14,685) - Change in unrealized foreign exchange gain (loss) For the years ended December 31 2018 2017 on currency (41) 40 ($ in thousands except for per unit amounts) Realized gain (loss) on sales of investments (23,168) (31,446) Realized gain (loss) on derivatives 194 (39) Income Change in unrealized appreciation (depreciation) in Interest for allocation purposes 7,332 6,772 the value of investments 79,773 1,555 Dividend income 7,084 29,687 Change in unrealized appreciation (depreciation) in Distribution income from underlying funds 14,685 - the value of derivatives 342 (31) Foreign exchange gain (loss) on income 5 100 Purchases of investments (2,104,682) (1,121,583) Foreign exchange gain (loss) on currency (46) (40) Income from securities lending 80 80 Proceeds from disposition of investments 2,162,264 1,187,896 Other income (loss) 295 3 Margin on derivatives (413) (45) Realized gain (loss) on sales of investments 23,168 31,446 Interest, dividends and other receivables 16,706 (11,683) Realized gain (loss) on derivatives (194) 39 Accrued expenses and other liabilities (4) (1) Change in unrealized appreciation (depreciation) in Net cash provided by (used in) operating the value of investments (79,773) (1,555) activities 88,135 90,733 Change in unrealized appreciation (depreciation) in the value of derivatives (342) 31 Cash flows from financing activities Proceeds from sale of units 119,895 123,476 (27,706) 66,563 Payments for units redeemed (209,243) (212,661) Expenses Net cash provided by (used in) financing Administration fees 257 282 activities (89,348) (89,185) Interest expense & bank charges 3 4 Foreign withholding taxes 62 78 Change in unrealized foreign exchange gain (loss) Transaction costs 123 129 on currency 41 (40) 445 493 Net increase (decrease) in cash (1,213) 1,548 Cash (bank overdraft) beginning of year 1,611 103 Increase (decrease) in net assets attributable to contractholders (28,151) 66,070 Cash (bank overdraft) end of year 439 1,611 Increase (decrease) in net assets attributable to contractholders per unit Supplemental information on cash flows from operating activities: Group pension units (4.52) 9.19 Interest received, net of foreign withholding taxes 7,179 7,007 Dividends received, net of foreign withholding taxes 6,927 17,692 Interest paid 3 4

The accompanying notes are an integral part of the financial statements.

67 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) Communication Services 2.9% 234,439 BCE, Inc. 12,496 12,643 EQUITIES 30.4% 46,815 Cogeco Communications, Inc. 3,232 3,079 Canada 30.4% 175,006 Quebecor, Inc., Class B 3,681 5,030 Energy 4.7% 322,476 Canadian Natural Resources Ltd. 10,615 10,622 19,409 20,752 154,061 Enbridge, Inc. 7,479 6,534 Real Estate 0.3% 69,052 Parkland Fuel Corp. 1,996 2,440 76,215 Altus Group Ltd. 2,091 1,804 53,633 PrairieSky Royalty Ltd. 1,225 948 276,574 Suncor Energy, Inc. 10,781 10,546 195,863 213,247 372,343 Whitecap Resources, Inc. 2,748 1,620 MUTUAL FUNDS 25.8% 34,844 32,710 8,153,392 Manulife Asset Management US Large Cap Core Pooled Fund 89,042 80,200 Materials 3.0% 6,088,751 Manulife International Equity (83) Fund UT 108,036 101,285 58,915 Agnico Eagle Mines Ltd. 3,381 3,246 164,428 CCL Industries, Inc., Class B 8,414 8,231 197,078 181,485 25,838 First Quantum Minerals Ltd. 414 285 BONDS 24.6% 21,465 Franco-Nevada Corp. 1,795 2,055 Canada 22.4% 148,344 Goldcorp, Inc. 3,550 1,984 Corporate Bonds 8.8% 186,893 Lundin Mining Corp. 1,093 1,054 343 407 International, Inc., 41,692 Nutrien Ltd. 2,155 2,673 3.83%, May 11, 2046 363 346 44,995 Teck Resources Ltd. 1,346 1,323 265 407 International, Inc., 22,148 20,851 3.60%, May 21, 2047 263 257 100 407 International, Inc., Industrials 3.3% 3.72%, May 11, 2048 100 99 112,179 CAE, Inc. 1,881 2,815 60 AIMCo Realty Investors LP, 44,639 Canadian National Railway Co. 1,828 4,513 3.37%, Jun 01, 2027 60 61 32,307 Canadian Pacific Railway Ltd. 6,944 7,826 135 Alberta Powerline LP, 84,744 Morneau Shepell, Inc. 2,292 2,122 4.07%, Dec 01, 2053 135 138 33,994 Toromont Industries Ltd. 1,171 1,844 250 Allied Properties REIT, 40,649 Waste Connections, Inc. 4,119 4,119 3.64%, Apr 21, 2025 241 241 18,235 23,239 1,840 AltaGas Ltd., Consumer Discretionary 1.5% 3.57%, Jun 12, 2023 1,866 1,817 121,576 Dollarama, Inc. 3,839 3,948 310 AltaGas Ltd., 49,255 Magna International, Inc. 2,370 3,052 3.98%, Oct 04, 2027 309 299 46,795 Restaurant Brands International, Inc. 3,026 3,337 140 AltaGas Ltd., 4.50%, Aug 15, 2044 129 118 9,235 10,337 175 AltaLink LP, Consumer Staples 1.6% 3.72%, Dec 03, 2046 182 173 74,916 Empire Co., Ltd., Class A 1,990 2,160 280 Bank of Montreal, 115,876 Loblaw Cos., Ltd. 5,960 7,081 1.88%, Mar 31, 2021 281 275 57,837 Saputo, Inc. 2,404 2,267 870 Bank of Montreal, 10,354 11,508 2.12%, Mar 16, 2022 882 852 600 Bank of Montreal, Financials 10.1% 2.27%, Jul 11, 2022 600 589 149,979 Brookfield Asset Management, Inc., Class A 6,495 7,847 180 Bank of Montreal, 89,820 Canadian Imperial Bank of Commerce 9,776 9,133 2.70%, Sep 11, 2024 177 177 64,968 Intact Financial Corp. 5,748 6,444 50 Bank of Montreal, 92,278 Royal Bank of Canada 6,859 8,622 3.32%, Jun 01, 2026 51 50 156,164 Sun Life Financial, Inc. 6,875 7,073 725 Bell Canada, Inc., 186,319 The Bank of Nova Scotia 13,102 12,679 3.60%, Sep 29, 2027 724 713 255,350 The Toronto-Dominion Bank 12,366 17,328 950 Bell Canada, Inc., 29,873 TMX Group Ltd. 1,950 2,113 3.80%, Aug 21, 2028 942 941 63,171 71,239 450 Bell Canada, Inc., Information Technology 3.0% 2.70%, Feb 27, 2047 456 434 92,465 CGI Group, Inc., Class A 4,729 7,721 199 Bell Canada, Inc., 6,879 Constellation Software, Inc. 6,161 6,011 4.45%, Feb 27, 2047 199 190 158,983 Open Text Corp. 5,486 7,075 225 Brookfield Asset Management, Inc., 3.80%, Mar 16, 2027 225 217 16,376 20,807

The accompanying notes are an integral part of the financial statements.

68 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 195 Brookfield Infrastructure Finance ULC, 330 Fédération des caisses Desjardins du Québec, 3.54%, Oct 30, 2020 195 197 3.06%, Sep 11, 2023 330 332 100 Brookfield Infrastructure Finance ULC, 24 First Nations Finance Authority, 3.45%, Mar 11, 2022 100 100 3.40%, Jun 26, 2024 26 25 400 Brookfield Infrastructure Finance ULC, 78 First Nations Finance Authority, 4.19%, Sep 11, 2028 395 396 3.05%, Jun 01, 2028 76 78 310 Canadian Imperial Bank of Commerce, 1,645 Ford Credit Canada Co., 2.90%, Sep 14, 2021 310 311 2.58%, May 10, 2021 1,618 1,588 310 Canadian Imperial Bank of Commerce, 110 Ford Credit Canada Co., 2.97%, Jul 11, 2023 310 311 3.35%, Sep 19, 2022 110 105 230 Canadian Imperial Bank of Commerce, 85 Ford Credit Canada Co., 3.30%, May 26, 2025 232 233 3.74%, May 08, 2023 85 81 50 Canadian Western Bank, 65 FortisBC Energy, Inc., 2.88%, Mar 01, 2021 50 50 3.69%, Oct 30, 2047 65 64 3,045 Capital Desjardins, Inc., 140 FortisBC Energy, Inc., 5.19%, May 05, 2020 3,280 3,142 3.85%, Dec 07, 2048 140 142 144 Central 1 Credit Union, 890 General Motors Financial of Canada Ltd., 1.87%, Mar 16, 2020 144 142 3.08%, May 22, 2020 890 888 220 Central 1 Credit Union, 335 Greater Toronto Airports Authority, 2.60%, Nov 07, 2022 220 215 3.26%, Jun 01, 2037 333 325 1,415 Choice Properties LP, 116 H&R REIT, 3.60%, Apr 20, 2020 1,450 1,426 4.45%, Mar 02, 2020 120 118 1,300 Choice Properties REIT, 110 Health Montreal Collective LP, 3.01%, Mar 21, 2022 1,295 1,286 6.72%, Sep 30, 2049 110 141 85 Choice Properties REIT, 1,640 HSBC Bank Canada, 4.29%, Feb 08, 2024 85 87 2.91%, Sep 29, 2021 1,650 1,639 35 CT REIT, 135 HSBC Bank Canada, 3.87%, Dec 07, 2027 35 34 2.17%, Jun 29, 2022 135 131 270 CU, Inc., 300 Husky Energy, Inc., 4.09%, Sep 02, 2044 291 281 3.60%, Mar 10, 2027 299 288 375 CU, Inc., 170 Hydro One, Inc., 3.96%, Jul 27, 2045 407 384 3.63%, Jun 25, 2049 169 162 150 CU, Inc., 210 Hydro-Québec, 3.76%, Nov 19, 2046 149 148 4.00%, Feb 15, 2055 256 250 95 CU, Inc., 65 Inter Pipeline Ltd., 3.55%, Nov 22, 2047 95 90 2.73%, Apr 18, 2024 65 62 135 Enbridge Gas Distribution, Inc., 100 Inter Pipeline Ltd., 4.00%, Aug 22, 2044 143 137 3.48%, Dec 16, 2026 100 96 240 Enbridge Pipelines, Inc., 200 Ivanhoe Cambridge II, Inc., 4.13%, Aug 09, 2046 241 225 2.91%, Jun 27, 2023 200 200 148 Enbridge Southern Lights LP, 1,175 Laurentian Bank of Canada, 4.01%, Jun 30, 2040 148 145 2.81%, Jun 13, 2019 1,175 1,176 115 Enbridge, Inc., 465 Laurentian Bank of Canada, 3.20%, Jun 08, 2027 108 109 2.50%, Jan 23, 2020 464 463 1,165 Enbridge, Inc., FRN 190 Loblaw Cos., Ltd., 5.38%, Sep 27, 2077 1,111 1,076 3.92%, Jun 10, 2024 190 193 420 Enbridge, Inc., FRN 720 Manulife Bank of Canada, 6.63%, Apr 12, 2078 432 422 2.08%, May 26, 2022 720 700 455 EPCOR Utilities, Inc., 240 Manulife Financial Corp., 3.55%, Nov 27, 2047 458 437 3.32%, May 09, 2028 240 239 380 Fairfax Financial Holdings Ltd., 100 Manulife Financial Corp., FRN 4.95%, Mar 03, 2025 402 399 3.05%, Aug 20, 2029 100 98 55 Fairfax Financial Holdings Ltd., 110 Morguard Corp., 4.70%, Dec 16, 2026 55 56 4.09%, May 14, 2021 110 110 455 Fairfax Financial Holdings Ltd., 75 Morguard Corp., 4.25%, Dec 06, 2027 449 446 4.33%, Sep 15, 2022 75 75 60 Fédération des caisses Desjardins du Québec, 295 Nissan Canada Financial Services, Inc., 2.09%, Jan 17, 2022 60 59 2.42%, Oct 19, 2020 295 292

The accompanying notes are an integral part of the financial statements.

69 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 965 Nissan Canada Financial Services, Inc., 970 Sun Life Capital Trust II, 2.61%, Mar 05, 2021 961 955 5.86%, Dec 31, 2108 1,074 998 135 Nissan Canada Financial Services, Inc., 540 Sun Life Financial, Inc., 3.15%, Sep 14, 2021 135 135 4.57%, Aug 23, 2021 572 564 320 North Battleford Power LP, 115 Sun Life Financial, Inc., 4.96%, Dec 31, 2032 320 351 2.60%, Sep 25, 2025 115 114 427 Northwestconnect Group Partnership, 1,240 Sun Life Financial, Inc., 5.95%, Apr 30, 2041 430 506 3.10%, Feb 19, 2026 1,249 1,244 180 OMERS Realty Corp., 120 TELUS Corp., 3.24%, Oct 04, 2027 180 181 3.60%, Jan 26, 2021 123 122 3,057 Ontario School Boards Financing Corp., 1,590 TELUS Corp., 6.55%, Oct 19, 2026 3,424 3,488 3.20%, Apr 05, 2021 1,609 1,597 1,200 Pembina Pipeline Corp., 385 TELUS Corp., 2.99%, Jan 22, 2024 1,189 1,167 3.75%, Mar 10, 2026 407 387 185 Pembina Pipeline Corp., 50 TELUS Corp., 3.71%, Aug 11, 2026 189 183 3.63%, Mar 01, 2028 49 49 300 Pembina Pipeline Corp., 600 The Bank of Nova Scotia, 4.81%, Mar 25, 2044 303 290 1.90%, Dec 02, 2021 588 585 35 Pembina Pipeline Corp., 790 The Bank of Nova Scotia, 4.74%, Jan 21, 2047 35 34 2.36%, Nov 08, 2022 781 775 347 PSP Capital, Inc., 2,735 The Bank of Nova Scotia, 2.09%, Nov 22, 2023 347 341 2.98%, Apr 17, 2023 2,735 2,741 604 PSP Capital, Inc., 315 The Bank of Nova Scotia, 3.00%, Nov 05, 2025 603 617 2.29%, Jun 28, 2024 315 304 925 Reliance LP, 75 The Empire Life Insurance Co., FRN 3.84%, Mar 15, 2025 915 910 3.66%, Mar 15, 2028 75 75 630 RioCan REIT, 630 The Manufacturers Life Insurance Co., 3.85%, Jun 28, 2019 676 634 3.18%, Nov 22, 2027 630 632 415 RioCan REIT, 1,215 The Toronto-Dominion Bank, 2.83%, Oct 03, 2022 415 406 3.23%, Jul 24, 2024 1,235 1,232 975 RioCan REIT, 430 The Toronto-Dominion Bank, FRN 3.21%, Sep 29, 2023 966 957 2.69%, Jun 24, 2025 427 428 80 Rogers Communications, Inc., 278 The Toronto-Dominion Bank, FRN 6.56%, Mar 22, 2041 80 99 3.22%, Jul 25, 2029 278 271 30 Royal Bank of Canada, 500 Toromont Industries Ltd., 2.03%, Mar 15, 2021 30 30 3.84%, Oct 27, 2027 501 503 460 Royal Bank of Canada, 50 Toronto Hydro Corp., 2.00%, Mar 21, 2022 448 449 3.49%, Feb 28, 2048 50 48 290 Royal Bank of Canada, 450 Toyota Credit Canada, Inc., 3.30%, Sep 26, 2023 290 291 2.05%, May 20, 2020 456 447 50 Royal Bank of Canada, 150 Toyota Credit Canada, Inc., 3.45%, Sep 29, 2026 51 50 2.70%, Jan 25, 2023 150 148 1,440 Shaw Communications, Inc., 125 TransCanada PipeLines Ltd., 5.50%, Dec 07, 2020 1,557 1,506 4.33%, Sep 16, 2047 125 119 350 Shaw Communications, Inc., 35 Union Gas Ltd., 3.80%, Nov 02, 2023 350 352 3.59%, Nov 22, 2047 35 33 1,385 Shaw Communications, Inc., 1,863 VW Credit Canada, Inc., 4.35%, Jan 31, 2024 1,453 1,426 2.90%, Mar 29, 2021 1,862 1,851 90 Smart REIT, 110 VW Credit Canada, Inc., 4.05%, Jul 27, 2020 93 91 3.70%, Nov 14, 2022 110 111 445 Smart REIT, 20 Winnipeg Airport Authority, Inc., 3.73%, Jul 22, 2022 449 448 3.66%, Sep 30, 2047 20 20 265 Smart REIT, 62,959 62,199 3.99%, May 30, 2023 271 268 105 SNC-Lavalin Group, Inc., Federal Bonds 6.9% 2.69%, Nov 24, 2020 105 104 81 Canada Housing Trust No. 1, 142 SNC-Lavalin Group, Inc., 2.35%, Jun 15, 2023 81 81 3.24%, Mar 02, 2023 142 140 755 Canada Housing Trust No. 1, 2.55%, Dec 15, 2023 758 763

The accompanying notes are an integral part of the financial statements.

70 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 22 Canada Housing Trust No. 1, 334 Province of Alberta, 1.95%, Dec 15, 2025 22 21 3.05%, Dec 01, 2048 326 319 564 Canada Housing Trust No. 1, 239 Province of Alberta, 2.25%, Dec 15, 2025 565 558 3.10%, Jun 01, 2050 238 231 5,000 Canada Housing Trust No. 1, 550 Province of British Columbia, 1.90%, Sep 15, 2026 4,785 4,810 2.85%, Jun 18, 2025 587 560 2,209 Canada Housing Trust No. 1, 457 Province of British Columbia, 2.35%, Jun 15, 2027 2,205 2,189 2.95%, Dec 18, 2028 460 466 3 Canada Housing Trust No. 1, 520 Province of British Columbia, 2.65%, Mar 15, 2028 3 3 4.70%, Jun 18, 2037 665 641 4,332 Canada Housing Trust No. 1, 1,463 Province of British Columbia, 2.65%, Dec 15, 2028 4,352 4,381 2.80%, Jun 18, 2048 1,373 1,387 15 Canadian Government Bond, 354 Province of British Columbia, 0.75%, Mar 01, 2021 14 15 2.95%, Jun 18, 2050 342 347 18,890 Canadian Government Bond, 850 Province of Manitoba, 3.25%, Jun 01, 2021 20,396 19,504 2.55%, Jun 02, 2026 840 837 1,179 Canadian Government Bond, 1,562 Province of Manitoba, 1.50%, Jun 01, 2023 1,196 1,160 2.60%, Jun 02, 2027 1,518 1,533 985 Canadian Government Bond, 853 Province of Manitoba, 2.50%, Jun 01, 2024 1,000 1,015 3.00%, Jun 02, 2028 845 860 70 Canadian Government Bond, 640 Province of Manitoba, 1.50%, Jun 01, 2026 66 68 4.05%, Sep 05, 2045 672 718 1,922 Canadian Government Bond, 65 Province of Manitoba, 1.00%, Jun 01, 2027 1,747 1,782 3.40%, Sep 05, 2048 65 66 200 Canadian Government Bond, 120 Province of New Brunswick, 2.00%, Jun 01, 2028 193 201 3.10%, Aug 14, 2028 120 122 271 Canadian Government Bond, 103 Province of New Brunswick, 2.25%, Jun 01, 2029 275 278 3.10%, Aug 14, 2048 101 97 265 Canadian Government Bond, 1,250 Province of Nova Scotia, 5.75%, Jun 01, 2033 373 386 2.10%, Jun 01, 2027 1,181 1,186 1,105 Canadian Government Bond, 295 Province of Nova Scotia, 5.00%, Jun 01, 2037 1,587 1,583 5.80%, Jun 01, 2033 376 387 225 Canadian Government Bond, USD 136 Province of Ontario, 4.00%, Jun 01, 2041 289 297 3.40%, Oct 17, 2023 176 190 1,845 Canadian Government Bond, 3,439 Province of Ontario, 3.50%, Dec 01, 2045 2,472 2,334 2.60%, Jun 02, 2025 3,491 3,433 177 Canadian Government Bond, 330 Province of Ontario, 1.25%, Dec 01, 2047 227 217 2.60%, Jun 02, 2027 323 326 5,069 Canadian Government Bond, 1,629 Province of Ontario, 2.75%, Dec 01, 2048 5,449 5,700 2.90%, Jun 02, 2028 1,611 1,640 298 Canadian Government Bond, 150 Province of Ontario, 2.00%, Dec 01, 2051 264 285 6.50%, Mar 08, 2029 201 197 246 Canadian Government Bond, 600 Province of Ontario, 2.75%, Dec 01, 2064 278 289 5.85%, Mar 08, 2033 839 793 52 Canadian Government Real Return Bond, 2,805 Province of Ontario, 0.50%, Dec 01, 2050 51 50 4.60%, Jun 02, 2039 3,226 3,405 280 CPPIB Capital, Inc., 135 Province of Ontario, 3.00%, Jun 15, 2028 280 284 2.90%, Dec 02, 2046 125 127 250 Export Development Canada, 2,606 Province of Ontario, 1.80%, Sep 01, 2022 250 247 2.80%, Jun 02, 2048 2,416 2,415 2,744 Province of Ontario, 49,178 48,501 2.90%, Jun 02, 2049 2,615 2,599 Provincial Bonds 6.3% 423 Province of Quebec, 1,740 Financement-Québec, 3.75%, Sep 01, 2024 442 450 5.25%, Jun 01, 2034 1,878 2,175 564 Province of Quebec, 4,400 Province of Alberta, 2.75%, Sep 01, 2025 556 569 2.55%, Jun 01, 2027 4,293 4,304 3,240 Province of Quebec, 282 Province of Alberta, 2.75%, Sep 01, 2027 3,235 3,245 2.90%, Dec 01, 2028 278 282

The accompanying notes are an integral part of the financial statements.

71 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 1,141 Province of Quebec, 465 Bank of America Corp., FRN 2.75%, Sep 01, 2028 1,105 1,139 2.60%, Mar 15, 2023 461 456 150 Province of Quebec, 1,185 Bank of America Corp., FRN 6.00%, Oct 01, 2029 186 193 3.30%, Apr 24, 2024 1,187 1,178 900 Province of Quebec, 715 Bank of America Corp., FRN 5.00%, Dec 01, 2038 1,022 1,150 3.41%, Sep 20, 2025 712 709 1,348 Province of Quebec, USD 90 Great-West Lifeco Finance 2018 LP, 3.50%, Dec 01, 2045 1,339 1,433 4.05%, May 17, 2028 115 125 2,479 Province of Quebec, 190 JPMorgan Chase & Co., 3.50%, Dec 01, 2048 2,667 2,655 3.19%, Mar 05, 2021 195 192 124 Province of Saskatchewan, 2,910 Metropolitan Life Global Funding I, 3.05%, Dec 02, 2028 123 126 3.03%, Jun 11, 2020 2,947 2,926 1,084 Province of Saskatchewan, 815 Metropolitan Life Global Funding I, 2.75%, Dec 02, 2046 984 980 3.11%, Apr 16, 2021 824 821 493 Province of Saskatchewan, 825 Morgan Stanley, 3.30%, Jun 02, 2048 503 497 3.00%, Feb 07, 2024 825 803 32 Province of Saskatchewan, 709 The Goldman Sachs Group, Inc., 3.10%, Jun 02, 2050 32 31 2.43%, Apr 26, 2023 711 684 120 The Goldman Sachs Group, Inc., FRN 43,375 44,111 3.31%, Oct 31, 2025 120 116 Municipal Bonds 0.4% 495 Wells Fargo & Co., 173 City of Montreal, 2.22%, Mar 15, 2021 500 487 3.15%, Sep 01, 2028 171 174 335 Wells Fargo & Co., 610 City of Montreal, 2.09%, Apr 25, 2022 335 324 4.25%, Dec 01, 2032 606 675 125 City of Montreal, 9,261 9,150 3.50%, Dec 01, 2038 125 125 Federal Bonds 0.3% 282 City of Toronto, USD 371 United States Treasury Note, 3.50%, Jun 02, 2036 282 285 2.88%, Aug 15, 2028 483 515 114 City of Toronto, USD 301 United States Treasury Note, 3.20%, Aug 01, 2048 114 108 2.25%, Aug 15, 2046 364 351 89 City of Vancouver, USD 17 United States Treasury Note, 3.10%, Sep 21, 2028 89 90 2.75%, Nov 15, 2047 22 22 285 City of Winnipeg, USD 732 United States Treasury Note, 5.20%, Jul 17, 2036 284 349 3.00%, Aug 15, 2048 911 995 317 Municipal Finance Authority of British 1,780 1,883 Columbia, 2.80%, Dec 03, 2023 317 321 11,041 11,033 147 Municipal Finance Authority of British Global 0.6% Columbia, Supranational Bonds 0.4% 4.95%, Dec 01, 2027 148 170 95 European Investment Bank, 91 Regional Municipality of Peel, 2.38%, Jan 18, 2023 95 95 2.30%, Nov 02, 2026 91 87 1,835 Inter-American Development Bank, 51 Regional Municipality of Peel, 4.40%, Jan 26, 2026 1,722 2,033 5.10%, Jun 29, 2040 65 64 95 International Bank for Reconstruction & 187 South Coast British Columbia Transportation Development, Authority, 2.25%, Jan 17, 2023 94 95 3.25%, Nov 23, 2028 187 191 230 International Bank for Reconstruction & 121 The Regional Municipality of York, Development, 2.35%, Jun 09, 2027 117 115 2.50%, Aug 03, 2023 229 233 2,596 2,754 170 International Finance Corp., 2.38%, Jul 19, 2023 169 171 158,108 157,565 2,309 2,627 United States 1.6% Corporate Bonds 1.3% Corporate Bonds 0.2% 330 AT&T, Inc., 205 BP Capital Markets PLC, 4.00%, Nov 25, 2025 329 329 3.47%, May 15, 2025 205 206 640 Heathrow Funding Ltd., 3.40%, Mar 08, 2028 639 624

The accompanying notes are an integral part of the financial statements.

72 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE CONCENTRATION RISK NO. OF UNITS NAME ($) (’000) ($) (’000) The following table summarizes the Fund’s concentration risk. 800 HSBC Holdings PLC, % of net assets attributable to 3.20%, Dec 05, 2023 792 789 contractholders 75 Transurban Finance Co. Pty Ltd., Portfolio by category December 31, 2018 December 31, 2017 4.56%, Nov 14, 2028 75 78 Equities 1,711 1,697 Canada Energy 4.7 5.9 4,020 4,324 Materials 3.0 2.8 173,169 172,922 Industrials 3.3 3.3 Consumer Discretionary 1.5 3.0 SHORT-TERM INVESTMENTS 13.7% Consumer Staples 1.6 1.4 11,150 Canadian Treasury Bill, Financials 10.1 10.3 1.73%, Jan 04, 2019 11,148 11,148 Information Technology 3.0 2.3 47,450 Canadian Treasury Bill, Communication Services 2.9 0.8 1.31%, Jan 10, 2019 47,166 47,428 Real Estate 0.3 0.4 13,700 Canadian Treasury Bill, Mutual Funds 25.8 27.8 1.57%, Jan 24, 2019 13,594 13,685 Bonds 19,450 Canadian Treasury Bill, Canada 1.49%, Feb 07, 2019 19,410 19,417 Corporate Bonds 8.8 5.5 USD 1,600 Federal Home Loan Bank Discount Notes, Federal Bonds 6.9 13.5 2.13%, Jan 02, 2019 2,185 2,185 Provincial Bonds 6.3 3.7 1,980 Merit Trust, Municipal Bonds 0.4 0.3 1.95%, Jan 02, 2019 1,980 1,980 United States Corporate Bonds 1.3 0.4 95,483 95,843 Federal Bonds 0.3 0.1 EXCHANGE-TRADED FUNDS 5.2% Floating Rate Notes - 0.1 173,700 iShares MSCI EAFE ETF 14,514 13,945 Global 682,526 iShares S&P/TSX 60 Index ETF 14,609 14,756 Supranational Bonds 0.4 0.2 Corporate Bonds 0.2 - 23,700 SPDR S&P 500 ETF Trust 8,280 8,090 Short-Term Investments 13.7 9.6 37,403 36,791 Exchange-Traded Funds 5.2 6.1 Investments 698,996 700,288 Other assets less liabilities 0.3 2.5 100.0 100.0 Transaction costs (58) Total investments 698,938 700,288 Derivative liabilities (0.0%) (305) Other assets less liabilities 0.3% 2,273 Net assets attributable to contractholders 100.0% 702,256

The accompanying notes are an integral part of the financial statements.

73 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE ASSET MANAGEMENT DIVERSIFIED FUND

FUTURES CONTRACTS (0.0%) Commitment Unrealized No. of Contract Futures Delivery amount Price as at gain/(loss) contracts price contracts date ($) (’000) December 31, 2018 (CAD $) (’000) (3) CAD 136.80 Canada 10y Bond Future Mar 20, 2019 CAD 410 CAD 136.77 - Derivative assets - (2) USD 112.74 5-Year U.S. Treasury Note Future Mar 29, 2019 USD 229 USD 114.69 (5) (3) CAD 134.32 Canada 10y Bond Future Mar 20, 2019 CAD 410 CAD 136.77 (7) (1) USD 140.13 30-Year U.S. Treasury Bonds Future Mar 29, 2019 USD 146 USD 146.00 (8) (2) CAD 132.30 Canada 10y Bond Future Mar 20, 2019 CAD 274 CAD 136.77 (9) (2) CAD 132.30 Canada 10y Bond Future Mar 20, 2019 CAD 274 CAD 136.77 (9) (3) CAD 132.56 Canada 10y Bond Future Mar 20, 2019 CAD 410 CAD 136.77 (13) (7) CAD 133.98 Canada 10y Bond Future Mar 20, 2019 CAD 957 CAD 136.77 (19) (3) USD 139.16 30-Year U.S. Treasury Bonds Future Mar 29, 2019 USD 438 USD 146.00 (28) (13) EUR 161.79 Euro Bond Future Mar 07, 2019 EUR 2,126 EUR 163.54 (36) (7) USD 139.35 30-Year U.S. Treasury Bonds Future Mar 29, 2019 USD 1,022 USD 146.00 (64) Derivative liabilities (198) Total (198)

The accompanying notes are an integral part of the financial statements.

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STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 122,337 147,984 beginning of year 151,612 170,365 Cash 236 353 Increase (decrease) in net assets attributable to Margin deposited on derivatives 159 - contractholders (5,291) 12,785 Subscriptions receivable 121 28 Security transactions Receivable from investments sold 4 - Proceeds from units issued 8,218 8,960 Interest, dividends and other receivables 242 3,465 Redemption of units (31,572) (40,498) 123,099 151,830 Total security transactions (23,354) (31,538) Liabilities Net assets attributable to contractholders - end of year 122,967 151,612 Current liabilities Redemptions payable 58 213 Accrued expenses and other liabilities 4 5 STATEMENTS OF CASH FLOWS Derivative liabilities 70 - For the years ended December 31 2018 2017 132 218 ($ in thousands except for per unit amounts) Net assets attributable to contractholders 122,967 151,612 Net assets attributable to contractholders per unit Cash flows from operating activities Group pension units 170.03 177.68 Increase (decrease) in net assets attributable to contractholders (5,291) 12,785 Adjustments for: STATEMENTS OF COMPREHENSIVE INCOME Distributions from underlying funds (2,606) - Change in unrealized foreign exchange gain (loss) For the years ended December 31 2018 2017 on currency (8) 2 ($ in thousands except for per unit amounts) Realized gain (loss) on sales of investments (4,011) (7,623) Realized gain (loss) on derivatives 2 - Income Change in unrealized appreciation (depreciation) in Interest for allocation purposes 1,142 1,238 the value of investments 14,436 2,740 Dividend income 1,285 6,696 Change in unrealized appreciation (depreciation) in Distribution income from underlying funds 2,606 - the value of derivatives 70 - Foreign exchange gain (loss) on income 1 39 Purchases of investments (539,482) (242,415) Foreign exchange gain (loss) on currency 157 (2) Proceeds from disposition of investments 557,304 268,964 Income from securities lending 22 19 Other income (loss) 68 - Margin on derivatives (159) - Realized gain (loss) on sales of investments 4,011 7,623 Interest, dividends and other receivables 3,223 (3,042) Realized gain (loss) on derivatives (2) - Accrued expenses and other liabilities (1) - Change in unrealized appreciation (depreciation) in Net cash provided by (used in) operating the value of investments (14,436) (2,740) activities 23,477 31,411 Change in unrealized appreciation (depreciation) in Cash flows from financing activities the value of derivatives (70) - Proceeds from sale of units 8,125 8,993 (5,216) 12,873 Payments for units redeemed (31,727) (40,285) Expenses Net cash provided by (used in) financing Administration fees 47 55 activities (23,602) (31,292) Interest expense & bank charges 1 1 Foreign withholding taxes 9 9 Change in unrealized foreign exchange gain (loss) Transaction costs 18 23 on currency 8 (2) 75 88 Net increase (decrease) in cash (125) 119 Cash (bank overdraft) beginning of year 353 236 Increase (decrease) in net assets attributable to contractholders (5,291) 12,785 Cash (bank overdraft) end of year 236 353 Increase (decrease) in net assets attributable to contractholders per unit Supplemental information on cash flows from operating activities: Group pension units (6.76) 13.21 Interest received, net of foreign withholding taxes 1,112 1,314 Dividends received, net of foreign withholding taxes 1,264 2,633 Interest paid 1 1

The accompanying notes are an integral part of the financial statements.

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MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) 30 Central 1 Credit Union, 2.60%, Nov 07, 2022 30 29 MUTUAL FUNDS 25.1% 330 Choice Properties REIT, 1,276,235 Manulife Asset Management US Large Cap 3.01%, Mar 21, 2022 328 326 Core Pooled Fund 14,181 12,553 85 Choice Properties REIT, 1,099,976 Manulife International Equity (83) Fund UT 19,517 18,298 4.29%, Feb 08, 2024 85 87 33,698 30,851 5 CT REIT, BONDS 23.8% 3.87%, Dec 07, 2027 5 5 Canada 22.3% 103 CU, Inc., Corporate Bonds 9.1% 4.09%, Sep 02, 2044 110 107 78 407 International, Inc., 80 Enbridge Gas Distribution, Inc., 5.75%, Feb 14, 2036 97 97 4.00%, Aug 22, 2044 84 81 86 407 International, Inc., 36 Enbridge Pipelines, Inc., 3.60%, May 21, 2047 85 83 4.13%, Aug 09, 2046 36 34 10 407 International, Inc., 78 Enbridge Southern Lights LP, 3.72%, May 11, 2048 10 10 4.01%, Jun 30, 2040 78 77 20 Alberta Powerline LP, 55 Enbridge, Inc., 4.07%, Dec 01, 2053 20 20 3.20%, Jun 08, 2027 52 52 203 AltaGas Ltd., 178 Enbridge, Inc., FRN 3.57%, Jun 12, 2023 204 200 5.38%, Sep 27, 2077 169 164 79 AltaGas Ltd., 90 Enbridge, Inc., FRN 3.98%, Oct 04, 2027 79 76 6.63%, Apr 12, 2078 93 90 30 AltaGas Ltd., 98 Fairfax Financial Holdings Ltd., 4.50%, Aug 15, 2044 28 25 4.95%, Mar 03, 2025 103 103 464 Bank of Montreal, 55 Fairfax Financial Holdings Ltd., 1.61%, Oct 28, 2021 447 450 4.25%, Dec 06, 2027 54 54 30 Bank of Montreal, 240 Fédération des caisses Desjardins du Québec, 2.70%, Sep 11, 2024 29 30 2.09%, Jan 17, 2022 240 235 5 Bank of Montreal, 60 Fédération des caisses Desjardins du Québec, 3.32%, Jun 01, 2026 5 5 3.06%, Sep 11, 2023 60 60 114 Bell Canada, Inc., 105 Ford Credit Canada Co., 3.25%, Jun 17, 2020 115 115 2.58%, May 10, 2021 103 101 180 Bell Canada, Inc., 10 Ford Credit Canada Co., 3.00%, Oct 03, 2022 177 178 3.74%, May 08, 2023 10 10 60 Bell Canada, Inc., 10 FortisBC Energy, Inc., 3.80%, Aug 21, 2028 60 59 3.69%, Oct 30, 2047 10 10 55 Bell Canada, Inc., 10 General Motors Financial of Canada Ltd., 4.45%, Feb 27, 2047 55 52 3.08%, May 22, 2020 10 10 80 Brookfield Infrastructure Finance ULC, 50 Health Montreal Collective LP, 3.54%, Oct 30, 2020 80 81 6.72%, Sep 30, 2049 50 64 50 Brookfield Infrastructure Finance ULC, 260 Honda Canada Finance, Inc., 4.19%, Sep 11, 2028 50 50 2.49%, Dec 19, 2022 254 255 60 Canadian Imperial Bank of Commerce, 155 HSBC Bank Canada, 1.90%, Apr 26, 2021 59 59 2.91%, Sep 29, 2021 155 155 55 Canadian Imperial Bank of Commerce, 210 HSBC Bank Canada, 2.90%, Sep 14, 2021 55 55 2.54%, Jan 31, 2023 206 206 60 Canadian Imperial Bank of Commerce, 25 Hydro One, Inc., 2.97%, Jul 11, 2023 60 60 3.63%, Jun 25, 2049 25 24 40 Canadian Imperial Bank of Commerce, 30 Hydro-Québec, 3.30%, May 26, 2025 40 41 4.00%, Feb 15, 2055 37 36 5 Canadian Imperial Bank of Commerce, FRN 40 Ivanhoe Cambridge II, Inc., 3.42%, Jan 26, 2026 5 5 2.91%, Jun 27, 2023 40 40 67 Canadian Imperial Bank of Commerce, FRN 215 Laurentian Bank of Canada, 3.45%, Apr 04, 2028 67 66 2.81%, Jun 13, 2019 215 215 20 Canadian Western Bank, 115 Laurentian Bank of Canada, 2.88%, Mar 01, 2021 20 20 2.50%, Jan 23, 2020 115 115 150 Capital Desjardins, Inc., 50 Manulife Financial Corp., 5.19%, May 05, 2020 169 155 3.32%, May 09, 2028 50 50

The accompanying notes are an integral part of the financial statements.

76 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 35 Morguard Corp., 334 Sun Life Financial, Inc., 4.09%, May 14, 2021 35 35 3.10%, Feb 19, 2026 336 335 15 Morguard Corp., 150 Sun Life Financial, Inc., 4.33%, Sep 15, 2022 15 15 2.75%, Nov 23, 2027 147 148 40 Nissan Canada Financial Services, Inc., 434 TELUS Corp., 2.42%, Oct 19, 2020 40 40 3.20%, Apr 05, 2021 439 436 234 Nissan Canada Financial Services, Inc., 120 TELUS Corp., 2.61%, Mar 05, 2021 233 231 3.63%, Mar 01, 2028 119 118 25 Nissan Canada Financial Services, Inc., 60 The Bank of Nova Scotia, 3.15%, Sep 14, 2021 25 25 1.90%, Dec 02, 2021 59 59 47 North Battleford Power LP, 45 The Bank of Nova Scotia, 4.96%, Dec 31, 2032 47 51 2.36%, Nov 08, 2022 45 44 84 Northwestconnect Group Partnership, 409 The Bank of Nova Scotia, 5.95%, Apr 30, 2041 85 100 2.98%, Apr 17, 2023 409 410 20 OMERS Realty Corp., 5 The Bank of Nova Scotia, 3.24%, Oct 04, 2027 20 20 2.58%, Mar 30, 2027 5 5 642 Ontario School Boards Financing Corp., 225 The Manufacturers Life Insurance Co., 6.55%, Oct 19, 2026 719 733 3.18%, Nov 22, 2027 225 226 5 OPB Finance Trust, 399 The Toronto-Dominion Bank, 2.98%, Jan 25, 2027 5 5 3.23%, Jul 24, 2024 405 405 296 Pembina Pipeline Corp., 50 The Toronto-Dominion Bank, 2.99%, Jan 22, 2024 289 288 3.59%, Sep 14, 2028 50 50 40 Pembina Pipeline Corp., 90 The Toronto-Dominion Bank, FRN 4.81%, Mar 25, 2044 40 39 2.69%, Jun 24, 2025 89 90 80 PSP Capital, Inc., 10 The Toronto-Dominion Bank, FRN 3.29%, Apr 04, 2024 87 83 3.22%, Jul 25, 2029 10 10 112 PSP Capital, Inc., 115 Thomson Reuters Corp., 3.00%, Nov 05, 2025 112 114 3.31%, Nov 12, 2021 115 116 116 Reliance LP, 20 TMX Group Ltd., 3.84%, Mar 15, 2025 115 114 3.00%, Dec 11, 2024 20 20 135 RioCan REIT, 100 TMX Group Ltd., 3.85%, Jun 28, 2019 145 136 3.78%, Jun 05, 2028 100 101 247 RioCan REIT, 15 Toromont Industries Ltd., 3.21%, Sep 29, 2023 244 242 3.84%, Oct 27, 2027 15 15 35 RioCan REIT, 5 Toronto Hydro Corp., 3.29%, Feb 12, 2024 35 34 3.49%, Feb 28, 2048 5 5 130 Royal Bank of Canada, 15 Toyota Credit Canada, Inc., 2.95%, May 01, 2023 130 130 2.70%, Jan 25, 2023 15 15 50 Royal Bank of Canada, 10 TransCanada PipeLines Ltd., 3.30%, Sep 26, 2023 50 50 3.39%, Mar 15, 2028 10 10 418 Royal Bank of Canada, 25 TransCanada PipeLines Ltd., 2.33%, Dec 05, 2023 405 407 4.18%, Jul 03, 2048 25 23 5 Royal Bank of Canada, 20 VW Credit Canada, Inc., 3.45%, Sep 29, 2026 5 5 3.70%, Nov 14, 2022 20 20 249 Royal Bank of Canada, FRN 5 Winnipeg Airport Authority, Inc., 3.31%, Jan 20, 2026 251 250 3.66%, Sep 30, 2047 5 5 115 Shaw Communications, Inc., 11,262 11,234 5.50%, Dec 07, 2020 125 120 65 Shaw Communications, Inc., Federal Bonds 6.7% 3.80%, Nov 02, 2023 65 65 680 Canada Housing Trust No. 1, 177 Shaw Communications, Inc., 1.75%, Jun 15, 2022 663 670 4.35%, Jan 31, 2024 185 182 102 Canada Housing Trust No. 1, 148 Smart REIT, 2.55%, Dec 15, 2023 102 103 3.73%, Jul 22, 2022 149 149 5 Canada Housing Trust No. 1, 65 Sun Life Financial, Inc., 2.65%, Mar 15, 2028 5 5 4.57%, Aug 23, 2021 65 68 1,158 Canada Housing Trust No. 1, 50 Sun Life Financial, Inc., 2.65%, Dec 15, 2028 1,139 1,172 2.60%, Sep 25, 2025 50 50 4,060 Canadian Government Bond, 3.25%, Jun 01, 2021 4,384 4,192

The accompanying notes are an integral part of the financial statements.

77 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 10 Canadian Government Bond, Municipal Bonds 0.4% 1.50%, Jun 01, 2026 9 10 25 City of Montreal, 15 Canadian Government Bond, 3.15%, Sep 01, 2028 25 25 2.00%, Jun 01, 2028 15 15 155 City of Montreal, 210 Canadian Government Bond, 4.25%, Dec 01, 2032 154 172 5.75%, Jun 01, 2033 321 306 47 City of Toronto, 3 Canadian Government Bond, 3.20%, Aug 01, 2048 47 44 5.00%, Jun 01, 2037 5 4 15 City of Winnipeg, 661 Canadian Government Bond, 5.20%, Jul 17, 2036 15 18 3.50%, Dec 01, 2045 888 836 59 Municipal Finance Authority of British 771 Canadian Government Bond, Columbia, 2.75%, Dec 01, 2048 836 867 2.80%, Dec 03, 2023 59 60 70 CPPIB Capital, Inc., 65 Municipal Finance Authority of British 3.00%, Jun 15, 2028 70 71 Columbia, 8,437 8,251 4.95%, Dec 01, 2027 64 75 35 South Coast British Columbia Transportation Provincial Bonds 6.1% Authority, 170 Financement-Québec, 3.25%, Nov 23, 2028 35 36 5.25%, Jun 01, 2034 185 213 125 Labrador-Island Link Funding Trust, 399 430 3.76%, Jun 01, 2033 127 139 27,472 27,432 770 Province of Alberta, United States 1.3% 2.55%, Jun 01, 2027 744 753 Corporate Bonds 1.0% 30 Province of Alberta, 55 AT&T, Inc., 3.30%, Dec 01, 2046 32 30 4.00%, Nov 25, 2025 55 55 63 Province of Alberta, 212 Bank of America Corp., FRN 3.05%, Dec 01, 2048 62 60 3.30%, Apr 24, 2024 212 211 750 Province of British Columbia, 205 Citigroup, Inc., 2.85%, Jun 18, 2025 755 764 3.39%, Nov 18, 2021 205 207 115 Province of British Columbia, 297 Metropolitan Life Global Funding I, 6.35%, Jun 18, 2031 165 157 3.03%, Jun 11, 2020 300 298 50 Province of Manitoba, 208 Metropolitan Life Global Funding I, 2.60%, Jun 02, 2027 50 49 3.11%, Apr 16, 2021 210 209 750 Province of Manitoba, 100 Morgan Stanley, 3.00%, Jun 02, 2028 743 756 3.00%, Feb 07, 2024 100 97 100 Province of Manitoba, 29 The Goldman Sachs Group, Inc., 3.40%, Sep 05, 2048 101 101 2.43%, Apr 26, 2023 29 28 55 Province of Nova Scotia, 35 The Goldman Sachs Group, Inc., FRN 5.80%, Jun 01, 2033 70 72 3.31%, Oct 31, 2025 35 34 750 Province of Ontario, 70 Wells Fargo & Co., 2.60%, Jun 02, 2025 737 749 2.09%, Apr 25, 2022 70 68 320 Province of Ontario, 4.60%, Jun 02, 2039 366 388 1,216 1,207 140 Province of Ontario, Federal Bonds 0.3% 2.90%, Dec 02, 2046 130 132 USD 53 United States Treasury Note, 1,390 Province of Ontario, 2.25%, Aug 15, 2046 64 62 2.80%, Jun 02, 2048 1,284 1,288 USD 101 United States Treasury Note, 110 Province of Quebec, 3.13%, May 15, 2048 135 141 6.00%, Oct 01, 2029 140 142 USD 90 United States Treasury Note, 210 Province of Quebec, 3.00%, Aug 15, 2048 112 122 5.00%, Dec 01, 2038 241 268 311 325 120 Province of Quebec, 3.50%, Dec 01, 2045 125 128 1,527 1,532 887 Province of Quebec, Global 0.2% 3.50%, Dec 01, 2048 941 950 Corporate Bonds 0.2% 375 Province of Saskatchewan, 40 BP Capital Markets PLC, 3.30%, Jun 02, 2048 376 378 3.47%, May 15, 2025 40 40 7,374 7,517

The accompanying notes are an integral part of the financial statements.

78 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 108 Heathrow Funding Ltd., 7,446 Intact Financial Corp. 661 739 3.40%, Mar 08, 2028 107 105 10,577 Royal Bank of Canada 794 988 100 HSBC Holdings PLC, 17,898 Sun Life Financial, Inc. 797 811 3.20%, Dec 05, 2023 99 99 21,346 The Bank of Nova Scotia 1,491 1,452 15 Transurban Finance Co. Pty Ltd., 29,743 The Toronto-Dominion Bank 1,448 2,018 4.56%, Nov 14, 2028 15 16 3,425 TMX Group Ltd. 227 242 261 260 7,290 8,194 Supranational Bonds 0.0% Information Technology 1.9% 32 International Finance Corp., 10,593 CGI Group, Inc., Class A 551 884 2.38%, Jul 19, 2023 32 32 801 Constellation Software, Inc. 719 700 18,244 Open Text Corp. 632 812 293 292 1,902 2,396 29,292 29,256 Communication Services 1.9% EQUITIES 19.9% 26,822 BCE, Inc. 1,426 1,446 Canada 19.9% 5,220 Cogeco Communications, Inc. 361 343 Energy 3.0% 20,027 Quebecor, Inc., Class B 420 576 36,098 Canadian Natural Resources Ltd. 1,262 1,189 17,645 Enbridge, Inc. 850 748 2,207 2,365 7,928 Parkland Fuel Corp. 232 280 Real Estate 0.2% 6,136 PrairieSky Royalty Ltd. 143 108 8,736 Altus Group Ltd. 245 207 31,641 Suncor Energy, Inc. 1,251 1,207 22,617 24,441 42,860 Whitecap Resources, Inc. 329 187 EXCHANGE-TRADED FUNDS 16.6% 4,067 3,719 31,300 iShares MSCI EAFE ETF 2,615 2,513 Materials 1.9% 694,216 iShares S&P/TSX 60 Index ETF 14,104 15,009 6,751 Agnico Eagle Mines Ltd. 384 372 8,700 SPDR S&P 500 ETF Trust 3,114 2,970 18,830 CCL Industries, Inc., Class B 981 943 19,833 20,492 3,025 First Quantum Minerals Ltd. 50 33 2,461 Franco-Nevada Corp. 203 236 SHORT-TERM INVESTMENTS 14.1% 16,996 Goldcorp, Inc. 405 227 270 Canadian Treasury Bill, 21,450 Lundin Mining Corp. 128 121 1.73%, Jan 04, 2019 270 270 4,849 Nutrien Ltd. 254 311 13,500 Canadian Treasury Bill, 5,205 Teck Resources Ltd. 155 153 1.36%, Jan 10, 2019 13,461 13,494 2,560 2,396 1,400 Canadian Treasury Bill, 1.57%, Jan 24, 2019 1,389 1,398 Industrials 2.2% USD 150 Federal Home Loan Bank Discount Notes, 12,865 CAE, Inc. 218 323 2.13%, Jan 02, 2019 205 205 5,111 Canadian National Railway Co. 212 517 1,930 Merit Trust, 3,698 Canadian Pacific Railway Ltd. 803 896 1.95%, Jan 02, 2019 1,930 1,930 9,606 Morneau Shepell, Inc. 261 241 3,915 Toromont Industries Ltd. 139 212 17,255 17,297 4,650 Waste Connections, Inc. 471 471 Investments 122,695 122,337 2,104 2,660 Transaction costs (8) Consumer Discretionary 1.0% Total investments 122,687 122,337 13,933 Dollarama, Inc. 443 453 5,653 Magna International, Inc. 274 350 Derivative liabilities (0.1%) (70) 5,372 Restaurant Brands International, Inc. 350 383 Other assets less liabilities 0.6% 700 1,067 1,186 Net assets attributable to contractholders 100.0% 122,967 Consumer Staples 1.1% 8,586 Empire Co., Ltd., Class A 226 247 13,274 Loblaw Cos., Ltd. 673 811 6,629 Saputo, Inc. 276 260 1,175 1,318 Financials 6.7% 17,160 Brookfield Asset Management, Inc., Class A 740 898 10,291 Canadian Imperial Bank of Commerce 1,132 1,046

The accompanying notes are an integral part of the financial statements.

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MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT) MANULIFE DIVERSIFIED TRI-PLAN FUND (MANULIFE ASSET MANAGEMENT)

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Mutual Funds 25.1 29.1 Bonds Canada Corporate Bonds 9.1 3.8 Federal Bonds 6.7 15.4 Provincial Bonds 6.1 1.5 Municipal Bonds 0.4 0.2 United States Corporate Bonds 1.0 0.3 Federal Bonds 0.3 - Global Corporate Bonds 0.2 - Supranational Bonds - 0.3 Equities Canada Energy 3.0 4.2 Materials 1.9 2.0 Industrials 2.2 2.3 Consumer Discretionary 1.0 2.1 Consumer Staples 1.1 1.0 Financials 6.7 7.3 Information Technology 1.9 1.7 Communication Services 1.9 0.6 Real Estate 0.2 0.3 Exchange-Traded Funds 16.6 14.1 Short-Term Investments 14.1 11.4 Derivative liabilities (0.1) - Other assets less liabilities 0.6 2.4 100.0 100.0

FORWARD FOREIGN CURRENCY CONTRACTS (0.0%) Purchased currency Sold currency Valueasat Valueasat Unrealized Counter- Settlement December 31, 2018 December 31, 2018 gain/loss party credit Contract price date Currency ($) (’000) Currency ($) (’000) ($) (’000) Counterparty rating CAD 1.33627 Jan 31, 2019 CAD 8 USD 8 - Royal Bank of Canada AA- CAD 1.34703 Jan 31, 2019 CAD 41 USD 42 (1) Royal Bank of Canada AA- CAD 1.31887 Jan 31, 2019 CAD 314 USD 325 (11) Royal Bank of Canada AA- Derivative liabilities (12) FUTURES CONTRACTS (0.1%) Commitment Unrealized No. of Contract Futures Delivery amount Price as at gain/(loss) contracts price contracts date ($) (’000) December 31, 2018 (CAD $) (’000) (13) CAD 132.30 Canada 10y Bond Future Mar 20, 2019 CAD 1,778 CAD 136.77 (58) Derivative liabilities (58)

The accompanying notes are an integral part of the financial statements.

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MANULIFE MONEY MARKET FUND (MANULIFE ASSET MANAGEMENT) MANULIFE MONEY MARKET FUND (MANULIFE ASSET MANAGEMENT)

STATEMENTS OF COMPREHENSIVE INCOME Cash flows from operating activities Increase (decrease) in net assets attributable to For the years ended December 31 2018 2017 contractholders 5,739 4,152 ($ in thousands except for per unit amounts) Adjustments for: Purchases of investments (2,363,837) (1,660,293) Income Proceeds from disposition of investments 2,355,385 1,807,979 Interest for allocation purposes 5,782 4,269 Interest, dividends and other receivables 42 579 Income from securities lending 3 10 Accrued expenses and other liabilities 1 5 Other income (loss) 67 - Net cash provided by (used in) operating 5,852 4,279 activities (2,670) 152,422 Expenses Cash flows from financing activities Administration fees 113 127 Proceeds from sale of units 253,800 178,077 113 127 Payments for units redeemed (251,123) (330,516) Increase (decrease) in net assets attributable Net cash provided by (used in) financing to contractholders 5,739 4,152 activities 2,677 (152,439) Increase (decrease) in net assets attributable to contractholders per unit Net increase (decrease) in cash 7(17) Group pension units 2.37 1.30 Cash (bank overdraft) beginning of year 3 20 Cash (bank overdraft) end of year 10 3 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 5,824 4,521

The accompanying notes are an integral part of the financial statements.

81 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE MONEY MARKET FUND (MANULIFE ASSET MANAGEMENT) MANULIFE MONEY MARKET FUND (MANULIFE ASSET MANAGEMENT)

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) Treasury Bills 10.7% 6,000 Canadian Treasury Bill, SHORT-TERM INVESTMENTS 74.4% 1.33%, Jan 04, 2019 5,995 5,999 Commercial Paper 34.9% 21,075 Province of Manitoba, 10,570 Banner Trust, 1.85%, Jan 09, 2019 21,001 21,067 2.12%, Jan 10, 2019 10,548 10,564 9,500 Province of New Brunswick, 5,000 Banner Trust, 1.81%, Jan 17, 2019 9,484 9,493 2.15%, Jan 15, 2019 4,990 4,995 10,000 Banner Trust, 36,480 36,559 2.13%, Jan 22, 2019 9,948 9,987 Provincial Bonds 9.5% 1,200 Honda Canada Finance, Inc., 23,500 Province of Alberta, 2.05%, Jan 09, 2019 1,195 1,199 1.90%, Feb 19, 2019 23,423 23,441 4,800 Honda Canada Finance, Inc., 9,000 Province of Manitoba, 2.11%, Jan 14, 2019 4,791 4,796 1.89%, Feb 20, 2019 8,970 8,977 6,000 Honda Canada Finance, Inc., 32,393 32,418 2.13%, Feb 01, 2019 5,982 5,988 3,000 Honda Canada Finance, Inc., 253,745 254,134 2.11%, Feb 06, 2019 2,989 2,993 BONDS 25.6% 5,000 Honda Canada Finance, Inc., Canada 25.6% 2.16%, Feb 11, 2019 4,983 4,987 Corporate Bonds 25.6% 3,160 Merit Trust, 18,136 Canadian Imperial Bank of Commerce, 1.95%, Jan 02, 2019 3,160 3,160 2.43%, May 08, 2019 18,136 18,141 5,500 Merit Trust, 2,000 Canadian Imperial Bank of Commerce, 2.12%, Jan 10, 2019 5,489 5,497 2.43%, Jun 07, 2019 2,000 2,000 10,500 Merit Trust, 9,000 National Bank of Canada, 2.13%, Jan 22, 2019 10,445 10,486 2.39%, Jun 11, 2019 9,000 9,002 7,600 OMERS Finance Trust, 16,000 Royal Bank of Canada, 2.08%, Jan 16, 2019 7,584 7,593 2.37%, Jun 19, 2019 16,000 16,006 9,000 OMERS Finance Trust, 8,500 Royal Bank of Canada, 2.08%, Jan 17, 2019 8,981 8,991 2.42%, Aug 01, 2019 8,500 8,503 14,000 Prime Trust, 4,600 The Bank of Nova Scotia, 2.12%, Jan 10, 2019 13,972 13,991 2.37%, Jun 14, 2019 4,600 4,602 10,000 Prime Trust, 29,000 The Bank of Nova Scotia, 2.12%, Jan 11, 2019 9,980 9,993 2.40%, Aug 27, 2019 29,000 29,013 14,000 Zeus Receivables Trust, 2.12%, Jan 10, 2019 13,972 13,991 87,236 87,267 119,009 119,211 Total investments 340,981 341,401 Banker’s Acceptance 19.3% Other assets less liabilities 0.0% 26 15,000 Bank of Montreal, Net assets attributable to 2.08%, Jan 10, 2019 14,969 14,991 contractholders 100.0% 341,427 4,000 Bank of Montreal, 2.13%, Jan 14, 2019 3,993 3,997 CONCENTRATION RISK 12,000 Bank of Montreal, The following table summarizes the Fund’s concentration risk. 2.08%, Jan 18, 2019 11,970 11,987 % of net assets attributable to 3,000 Canadian Imperial Bank of Commerce, contractholders 2.08%, Jan 16, 2019 2,993 2,997 Portfolio by category December 31, 2018 December 31, 2017 4,000 National Bank of Canada, Short-Term Investments 2.07%, Jan 11, 2019 3,992 3,997 Commercial Paper 34.8 44.3 6,000 National Bank of Canada, Banker’s Acceptance 19.3 - 2.19%, Jan 18, 2019 5,992 5,994 Treasury Bills 10.8 19.2 8,000 Royal Bank of Canada, Provincial Bonds 9.5 0.6 2.08%, Jan 09, 2019 7,985 7,996 Bonds 4,000 The Toronto-Dominion Bank, Canada 2.13%, Jan 14, 2019 3,993 3,997 Corporate Bonds 25.6 35.8 10,000 The Toronto-Dominion Bank, Other assets less liabilities - 0.1 2.08%, Jan 17, 2019 9,976 9,990 100.0 100.0 65,863 65,946

The accompanying notes are an integral part of the financial statements.

82 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN POOLED REAL ESTATE FUND MANULIFE CANADIAN POOLED REAL ESTATE FUND

STATEMENTS OF FINANCIAL POSITION STATEMENTS OF CHANGES IN NET ASSETS ATTRIBUTABLE TO As at December 31, December 31, CONTRACTHOLDERS 2018 2017 ($ in thousands except for per unit amounts) For the years ended December 31 2018 2017 ($ in thousands except for per unit amounts) Assets Current assets Net assets attributable to contractholders - Investments, at fair value 1,969,484 1,948,153 beginning of year 1,707,543 1,838,489 Cash 8,938 3,239 Increase (decrease) in net assets attributable to Subscriptions receivable 4,200 39 contractholders 144,544 83,753 Interest, dividends and other receivables 9,408 31,576 Security transactions Prepaid expenses 4,448 4,425 Proceeds from units issued 312,718 213,081 1,996,478 1,987,432 Redemption of units (354,530) (427,780) Liabilities Total security transactions (41,812) (214,699) Current liabilities Net assets attributable to contractholders - end of Redemptions payable 9,286 - year 1,810,275 1,707,543 Accrued expenses and other liabilities 25,096 21,475 Loan payable 7,000 135,000 Taxes payable on real estate 2,431 29,870 STATEMENTS OF CASH FLOWS Financing on real estate 7,936 34,926 Deferred tenants revenues 4,353 3,613 For the years ended December 31 2018 2017 Tenant deposits 1,530 1,930 ($ in thousands except for per unit amounts) Non-current liabilities Financing on real estate 122,507 46,837 Cash flows from operating activities Deferred tenants revenues - 26 Increase (decrease) in net assets attributable to Tenant deposits 6,064 6,212 contractholders 144,544 83,753 186,203 279,889 Adjustments for: Realized gain (loss) on sales of investments (63,183) (10,092) Net assets attributable to contractholders 1,810,275 1,707,543 Change in unrealized appreciation (depreciation) in Net assets attributable to contractholders per unit the value of investments 14,054 22,203 Group pension units 218.21 200.84 Purchases of investments (625,616) (896,816) Proceeds from disposition of investments 645,789 857,386 Interest, dividends and other receivables 22,168 (15,097) STATEMENTS OF COMPREHENSIVE INCOME Prepaid expenses (23) (448) Financing on real estate 48,680 22,755 For the years ended December 31 2018 2017 Taxes payable on real estate, deferred tenant ($ in thousands except for per unit amounts) revenues and tenant deposits (27,273) 15,509 Amortization of tenant incentives and leasing cost 8,498 9,620 Income Accrued expenses and other liabilities 3,621 3,523 Real estate income 150,962 144,034 Other property income 36,143 34,738 Net cash provided by (used in) operating Less real estate operating expenses (87,449) (79,959) activities 171,259 92,296 99,656 98,813 Cash flows from financing activities Interest for allocation purposes 389 348 Proceeds from sale of units 308,557 213,295 Other income (loss) 447 15 Payments for units redeemed (345,244) (437,304) Realized gain (loss) on sales of investments 63,183 10,092 Loan payable (128,000) 135,000 Change in unrealized appreciation (depreciation) in Change in unrealized gain (loss) on financing on the value of investments (14,054) (22,203) real estate (873) (334) Change in unrealized gain (loss) on financing on real Net cash provided by (used in) financing estate 873 334 activities (165,560) (89,343) 150,494 87,399 Net increase (decrease) in cash 5,699 2,953 Expenses Cash (bank overdraft) beginning of year 3,239 286 Administration fees 1,616 1,832 Interest expense & bank charges 3,098 1,084 Cash (bank overdraft) end of year 8,938 3,239 Appraisal fees 1,236 730 Supplemental information on cash flows from operating activities: 5,950 3,646 Interest received, net of foreign withholding taxes 389 349 Increase (decrease) in net assets attributable Interest paid 3,098 1,084 to contractholders 144,544 83,753 Increase (decrease) in net assets attributable to contractholders per unit Group pension units 17.32 9.17

The accompanying notes are an integral part of the financial statements.

83 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN POOLED REAL ESTATE FUND

SCHEDULE OF INVESTMENT PORTFOLIO As at December 31, 2018

YEAR OF DATE OF LAST TOTAL SPACE SPACE LEASED FINANCING ON AVERAGE COST FAIR VALUE IDENTIFIER PURCHASE APPRAISAL (SQUARE FEET) (SQUARE FEET) % LEASED REAL ESTATE ($) (’000) ($) (’000) ($) (’000)

REAL ESTATE 108.1% Industrial 40.4% Ontario 24.8% TOR720 2018 Dec-2018 110,108 110,108 100 - 43,430 43,400 TOR124P 2011 Nov-2018 254,578 254,578 100 - 20,807 32,200 TOR141P 2017 Dec-2018 291,686 291,685 100 12,689 28,144 31,200 TOR126P 2012 Nov-2018 197,633 197,633 100 - 17,826 28,600 TOR116P 2011 Dec-2018 178,303 178,303 100 - 16,164 24,100 TOR118P 2011 Nov-2018 168,796 168,796 100 - 15,114 22,500 OTT054P 2012 Dec-2018 133,072 133,072 100 - 17,567 20,400 TOR113P 2008 Oct-2018 264,600 264,600 100 - 16,486 19,065 OTT053P 2012 Dec-2018 116,221 116,221 100 - 14,295 18,300 OTT049P 2012 Nov-2018 119,626 119,626 100 - 16,846 18,000 TOR109P 2007 Oct-2018 101,337 99,311 98 - 9,590 17,800 TOR112P 2007 Nov-2018 141,349 132,424 94 - 9,668 17,200 TOR122P 2011 Nov-2018 103,565 103,565 100 - 15,796 16,300 OTT052P 2012 Nov-2018 112,886 102,716 91 - 14,386 15,400 OTT051P 2012 Nov-2018 105,855 105,855 100 - 13,048 15,200 TOR092 2003 Dec-2018 93,918 75,083 80 - 6,462 13,900 OTT046P - OTT047P 2008 Dec-2018 87,361 61,874 71 - 10,815 13,500 TOR098 2006 Oct-2018 75,075 75,075 100 - 8,105 13,100 TOR110P 2007 Nov-2018 86,114 86,114 100 - 7,210 12,800 OTT050P 2012 Nov-2018 85,393 85,393 100 - 9,884 11,900 TOR034 1984 Oct-2018 49,136 49,136 100 - 1,837 8,400 TOR121P 2011 Nov-2018 64,274 64,274 100 - 8,163 8,300 TOR120P 2011 Nov-2018 42,876 42,876 100 - 5,327 6,000 OTT043 2004 Oct-2018 37,875 37,875 100 - 2,449 4,700 TOR044 1994 Dec-2018 20,513 - - - 1,013 4,100 TOR043 1994 Oct-2018 24,572 24,572 100 - 926 3,400 TOR039 1994 Dec-2018 20,482 20,482 100 - 721 2,800 TOR040 1994 Dec-2018 16,809 16,809 100 - 865 2,700 TOR123P 2011 Nov-2018 10,514 7,500 71 - 1,232 1,900 OTT045P 2008 Oct-2018 11,415 11,415 100 - 1,114 1,300

12,689 335,290 448,465

Alberta 8.9% EDM051P 2011 Oct-2018 260,916 189,151 73 - 21,441 20,500 EDM053P 2013 Nov-2018 246,000 246,000 100 - 22,006 18,000 EDM038 2004 Nov-2018 97,383 88,634 91 - 9,418 14,700 EDM012-014 1983 Nov-2018 80,089 72,639 91 - 3,253 12,400 EDM036 2003 Nov-2018 113,704 113,704 100 - 5,682 12,300 EDM049P 2010 Oct-2018 60,107 45,208 75 - 10,434 11,300 CAL029 1995 Nov-2018 57,337 57,337 100 - 2,817 9,900 CAL055 1996 Nov-2018 57,345 51,585 90 - 2,772 9,300 CAL059 2000 Nov-2018 57,779 30,339 53 - 5,227 9,300 EDM052P 2011 Oct-2018 58,828 51,260 87 - 6,554 8,100 EDM048P 2007 Oct-2018 43,360 43,360 100 - 5,448 6,580 EDM056P 2013 Dec-2018 57,800 24,461 42 - 6,066 5,950 EDM054P 2013 Dec-2018 45,462 45,462 100 - 5,722 5,400 EDM055P 2013 Dec-2018 48,431 43,713 90 - 4,670 4,800 EDM047 2007 Nov-2018 37,335 37,335 100 - 5,816 4,600 EDM046 2005 Oct-2018 42,969 24,162 56 - 2,326 4,000 EDM057P 2013 Nov-2018 23,341 17,553 75 - 3,180 3,400

- 122,832 160,530

Quebec 3.1% MTL087 2004 Oct-2018 120,000 120,000 100 - 12,686 15,500 MTL102P 2010 Dec-2018 107,648 107,648 100 - 9,987 14,800 MTL103P 2010 Nov-2018 145,078 145,078 100 - 9,436 13,000

The accompanying notes are an integral part of the financial statements.

84 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN POOLED REAL ESTATE FUND

MTL096 2005 Nov-2018 77,830 77,830 100 - 3,920 5,400 MTL105P 2010 Dec-2018 26,089 - - - 3,739 4,600 MTL095 2005 Nov-2018 43,500 43,500 100 - 2,360 3,700

- 42,128 57,000

British Columbia 2.1% VAN032 2007 Oct-2018 103,081 103,081 100 - 11,081 19,800 VAN007 1994 Oct-2018 97,598 97,598 100 - 4,550 17,800

- 15,631 37,600

Nova Scotia 1.5% HAL002P 2014 Dec-2018 126,077 111,579 88 4,251 11,784 11,300 HAL003P 2014 Dec-2018 118,657 118,657 100 - 8,556 9,000 HAL004P 2014 Dec-2018 73,944 48,528 66 - 8,777 7,700

4,251 29,117 28,000

Retail 36.1% British Columbia 20.5% VAN039P 2015 Dec-2018 439,634 410,601 93 - 128,506 132,300 VAN038P 2014 Dec-2018 279,384 267,935 96 35,192 78,789 81,100 VAN035P 2011 Oct-2018 151,267 137,631 91 - 41,495 61,600 VAN036P 2011 Nov-2018 81,471 81,471 100 - 32,501 41,100 VAN037P 2012 Dec-2018 225,456 211,152 94 - 33,277 33,600 VAN034P 2011 Nov-2018 63,201 63,201 100 - 11,356 12,100 VAN033P 2011 Nov-2018 71,381 62,017 87 - 9,643 9,400

35,192 335,567 371,200

Ontario 9.3% TOR132P 2016 Nov-2018 92,916 83,981 90 - 18,839 20,400 TOR136P 2016 Dec-2018 65,085 64,032 98 - 17,796 18,000 TOR140P 2016 Nov-2018 90,842 90,842 100 - 14,498 16,000 TOR134P 2016 Nov-2018 129,809 95,700 74 - 10,738 14,100 TOR135P 2016 Nov-2018 126,288 75,778 60 - 12,642 13,800 TOR137P 2016 Nov-2018 63,157 61,957 98 - 13,527 13,700 TOR139P 2016 Nov-2018 29,228 29,228 100 - 11,365 12,300 TOR100P 2007 Oct-2018 23,845 23,845 100 - 7,443 11,000 TOR138P 2016 Oct-2018 27,375 27,375 100 - 9,795 10,400 TOR133P 2016 Nov-2018 46,902 46,902 100 - 7,766 10,100 TOR101P 2007 Dec-2018 40,009 40,009 100 - 7,744 9,100 TOR115P 2008 Oct-2018 17,837 17,837 100 - 7,055 7,600 OTT055P 2016 Nov-2018 16,910 16,910 100 - 6,467 6,380 TOR114P 2008 Oct-2018 79,630 14,680 19 - 15,426 5,300

- 161,101 168,180

Quebec 5.0% MTL106P 2011 Oct-2018 155,175 142,809 92 - 34,728 35,400 MTL111P 2016 Dec-2018 152,687 96,222 63 - 30,475 28,400 MTL004 1984 Dec-2018 94,633 76,678 81 - 6,805 9,500 MTL100 2006 Oct-2018 25,876 23,861 93 - 5,703 7,200 MTL110P 2016 Dec-2018 18,889 18,889 100 - 4,241 4,900 MTL088 2004 Dec-2018 25,760 25,760 100 - 3,663 4,500 MTL092 2005 Nov-2018 8,713 5,150 59 - 2,080 1,900

- 87,695 91,800

Nova Scotia 1.3% HAL001P 2014 Dec-2018 176,399 175,176 99 - 23,786 23,100

Office 26.7% Alberta 13.2% CAL069P 2012 Oct-2018 194,865 119,934 61 - 102,751 51,700 CAL063P 2010 Dec-2018 103,207 91,904 89 - 40,415 39,600 CAL068P 2012 Nov-2018 138,442 131,488 95 17,691 67,058 38,400

The accompanying notes are an integral part of the financial statements.

85 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN POOLED REAL ESTATE FUND

CAL065P 2011 Oct-2018 103,301 103,301 100 - 33,846 24,900 CAL064P 2010 Dec-2018 59,969 59,969 100 - 23,422 21,900 EDM039-40-41 2004 Dec-2018 76,034 76,034 100 - 8,403 15,800 EDM050P 2010 Oct-2018 47,583 47,583 100 - 13,809 15,200 EDM034 2003 Nov-2018 75,338 65,360 87 - 5,462 13,200 EDM042-43-44 2004 Dec-2018 75,438 58,157 77 - 6,526 13,000 CAL061 2005 Oct-2018 22,058 22,058 100 - 4,539 6,100

17,691 306,231 239,800

Ontario 7.3% TOR130P 2014 Oct-2018 96,171 96,171 100 - 35,149 33,700 TOR125P 2011 Nov-2018 112,940 109,690 97 - 28,323 30,900 OTT048P 2012 Oct-2018 128,706 128,706 100 - 23,823 26,500 TOR127P 2014 Dec-2018 62,482 62,482 100 - 14,734 15,600 TOR131P 2014 Nov-2018 35,721 35,721 100 - 7,730 9,000 TOR128P 2014 Dec-2018 37,851 37,851 100 - 7,905 6,700 OTT044 2007 Dec-2018 15,827 15,827 100 - 3,894 6,000 TOR129P 2014 Dec-2018 22,720 22,720 100 - 4,312 4,100

- 125,870 132,500

Quebec 4.4% MTL107P 2015 Oct-2018 85,889 85,889 100 9,130 20,223 22,500 MTL113P 2017 Dec-2018 50,000 50,000 100 7,563 12,099 14,800 MTL104P 2010 Dec-2018 52,875 52,876 100 - 8,010 11,100 MTL108P 2015 Oct-2018 36,400 36,400 100 4,150 8,371 9,200 MTL109P 2015 Dec-2018 31,603 31,603 100 3,320 6,301 7,500 MTL116P 2017 Dec-2018 18,501 18,501 100 1,465 2,882 4,300 MTL117P 2017 Dec-2018 16,964 16,964 100 1,332 2,865 4,200 MTL114P 2017 Dec-2018 19,518 17,628 90 1,643 3,405 3,400 MTL115P 2017 Dec-2018 19,614 - - 683 2,383 2,900

29,286 66,539 79,900

British Columbia 1.5% VAN040P 2015 Nov-2018 77,563 70,333 91 - 20,225 26,700

New Brunswick 0.3% ATL001P 2008 Oct-2018 28,107 28,107 100 - 7,412 4,700

Other 2.6% Quebec 2.6% MTL112P 2017 Dec-2018 249,328 245,952 99 11,919 39,979 46,200

Residential 2.0% Quebec 2.0% MTL118P 2018 Oct-2018 280,100 269,850 96 19,415 34,520 36,210

Land 0.3% Alberta 0.3% CAL039-40 1993 Oct-2018 28,774 14,234 49 - 2,002 5,100

130,443 1,755,925 1,956,985

The accompanying notes are an integral part of the financial statements.

86 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN POOLED REAL ESTATE FUND MANULIFE CANADIAN POOLED REAL ESTATE FUND

PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) SHORT-TERM INVESTMENTS 0.7% 800 Bank of Montreal, 1.23%, Jan 18, 2019 799 799 500 Canadian Treasury Bill, 0.08%, Jan 10, 2019 500 500 6,800 Canadian Treasury Bill 0.49%, Jan 24, 2019 6,793 6,793 1,500 Canadian Treasury Bill, 1.20%, Feb 07, 2019 1,498 1,497 2,910 Toronto Hydro Corp., 1.00%, Jan 02, 2019 2,910 2,910 12,500 12,499 Total investments 1,768,425 1,969,484 Other assets less liabilities (8.8%) (159,209) Net assets attributable to contractholders 100.0% 1,810,275

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Real Estate Industrial Ontario 24.8 23.4 Alberta 8.9 10.0 Quebec 3.1 3.1 British Columbia 2.1 2.3 Nova Scotia 1.5 1.6 Retail British Columbia 20.5 22.5 Ontario 9.3 10.4 Quebec 5.0 5.8 Nova Scotia 1.3 1.4 Office Alberta 13.2 16.1 Ontario 7.3 7.3 Quebec 4.4 4.4 British Columbia 1.5 1.5 New Brunswick 0.3 - Nova Scotia - 0.3 Other Quebec 2.6 - Residential Quebec 2.0 2.4 Land Alberta 0.3 - Short-Term Investments 0.7 1.6 Other assets less liabilities (8.8) (14.1) 100.0 100.0

The accompanying notes are an integral part of the financial statements.

87 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN MORTGAGE FUND MANULIFE CANADIAN MORTGAGE FUND

Cash flows from operating activities STATEMENTS OF COMPREHENSIVE INCOME Increase (decrease) in net assets attributable to contractholders 5,791 3,280 For the years ended December 31 2018 2017 Adjustments for: ($ in thousands except for per unit amounts) Change in unrealized appreciation (depreciation) in the value of investments 1,598 3,156 Income Purchases of investments (458,405) (536,773) Interest for allocation purposes 7,457 6,503 Proceeds from disposition of investments 435,565 499,416 Other income (loss) 12 - Interest, dividends and other receivables (135) (38) Change in unrealized appreciation (depreciation) in Accrued expenses and other liabilities (29) 50 the value of investments (1,598) (3,156) Net cash provided by (used in) operating 5,871 3,347 activities (15,615) (30,909) Expenses Cash flows from financing activities Administration fees 73 66 Proceeds from sale of units 73,764 94,238 Interest expense & bank charges 7 1 Payments for units redeemed (61,161) (60,311) 80 67 Net cash provided by (used in) financing Increase (decrease) in net assets attributable activities 12,603 33,927 to contractholders 5,791 3,280 Net increase (decrease) in cash (3,012) 3,018 Increase (decrease) in net assets attributable to contractholders per unit Cash (bank overdraft) beginning of year 3,032 14 Group pension units 12.66 7.94 Cash (bank overdraft) end of year 20 3,032 Supplemental information on cash flows from operating activities: Interest received, net of foreign withholding taxes 7,457 6,503 Interest paid 7 1

The accompanying notes are an integral part of the financial statements.

88 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN MORTGAGE FUND MANULIFE CANADIAN MORTGAGE FUND

SCHEDULE OF INVESTMENT PORTFOLIO PAR VALUE ($) (’000)/ As at December 31, 2018 NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) Nova Scotia 4.8% 460 Mort 930QFUII8, MORTGAGES 96.5% 2.48%, Apr 01, 2019 460 460 Office 39.7% 7,544 Mort 933JBKII7, British Columbia 22.6% 3.21%, Dec 05, 2022 7,544 7,418 3,316 Mort 930PXWII6, 3,914 Mort 932QEXII1, 3.36%, Jun 01, 2019 3,316 3,325 3.32%, Jan 05, 2023 3,914 3,855 1,841 Mort 930PXFII3, 486 Mort 962SEHII5, 3.50%, Mar 01, 2020 1,841 1,832 3.19%, Feb 01, 2024 486 472 371 Mort 930QHDII4, 2.64%, Feb 01, 2021 371 368 12,404 12,205 1,422 Mort 930QHMII4, Quebec 1.2% 2.85%, Feb 01, 2022 1,422 1,392 935 Mort 930SDUII6, 1,657 Mort 930QHLII6, 2.72%, Sep 01, 2023 935 905 2.98%, Feb 01, 2022 1,657 1,624 2,209 Mort 962ZDZII0, 4,490 Mort 930PYNII5, 2.86%, Jul 01, 2024 2,209 2,115 2.78%, May 01, 2022 4,490 4,361 478 Mort 929PANII4, 3,144 3,020 2.93%, May 01, 2022 478 467 Alberta 1.1% 434 Mort 931JYPII3, 483 Mort 933TCEII8, 2.93%, Jun 01, 2022 434 422 3.58%, Apr 01, 2021 483 480 630 Mort 932TXWII6, 2,342 Mort 930QFQII7, 3.41%, Oct 01, 2022 630 624 3.51%, Oct 15, 2022 2,342 2,295 1,947 Mort 932SBXII0, 2,825 2,775 3.22%, Dec 01, 2022 1,947 1,914 1,190 Mort 931YVTII5, New Brunswick 0.7% 3.47%, Aug 01, 2023 1,190 1,187 1,750 Mort 934KSHII2, 2,925 Mort 933CRZII2, 3.80%, Oct 05, 2022 1,750 1,770 3.47%, Aug 01, 2023 2,925 2,918 100,519 100,186 2,152 Mort 930QHHII5, Retail 25.9% 2.77%, Sep 01, 2023 2,152 2,084 Ontario 18.0% 5,369 Mort 933ALNII9, 486 Mort 933EGRII8, 3.61%, Oct 01, 2023 5,369 5,431 3.36%, May 01, 2019 486 486 1,892 Mort 933RPFII5, 7,502 Mort 930PXYII2, 3.68%, Oct 01, 2023 1,892 1,904 5.32%, Jun 01, 2020 7,502 7,754 2,176 Mort 931KXUII0, 1,742 Mort 930PYSII4, 3.30%, Sep 01, 2024 2,176 2,135 3.20%, Jul 01, 2020 1,742 1,728 7,860 Mort 932RJSII5, 1,544 Mort 963DXPII8, 4.14%, Nov 01, 2024 7,860 7,807 2.80%, Sep 01, 2020 1,544 1,527 17,000 Mort 933IMSII0, 4,705 Mort 930QHSII1, 3.47%, Sep 01, 2025 17,000 17,193 2.74%, Dec 01, 2020 4,705 4,658 57,150 56,988 512 Mort 930QHYII8, Ontario 9.3% 2.94%, Jul 01, 2021 512 503 6,339 Mort 930QFKII0, 430 Mort 928VXGII2, 2.33%, Feb 01, 2019 6,339 6,338 2.77%, May 01, 2022 430 417 5,946 Mort 930PXZII9, 576 Mort 931YFMII8, 4.96%, Sep 01, 2020 5,946 6,102 2.73%, Jun 01, 2022 576 561 1,150 Mort 930PYTII2, 1,301 Mort 933ABFII7, 2.73%, Oct 01, 2020 1,150 1,135 3.39%, Dec 01, 2022 1,301 1,280 2,829 Mort 932RCYII9, 791 Mort 962EAVII9, 3.49%, Nov 01, 2020 2,829 2,802 3.13%, Jun 01, 2023 791 769 493 Mort 963RVWII4, 493 Mort 933DGJII8, 3.78%, Apr 01, 2023 493 490 3.68%, Jun 01, 2023 493 493 1,489 Mort 933MRBII3, 4,266 Mort 930PYFII2, 3.68%, Jul 05, 2023 1,489 1,484 3.83%, Jun 01, 2023 4,266 4,311 5,000 Mort 964FZRII6, 3,300 Mort 933KSQII3, 4.12%, Dec 05, 2025 5,000 5,077 3.94%, Dec 15, 2023 3,300 3,338 23,246 23,428

The accompanying notes are an integral part of the financial statements.

89 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN MORTGAGE FUND MANULIFE CANADIAN MORTGAGE FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) 7,300 Mort 964GAJII9, New Brunswick 0.2% 3.94%, Dec 15, 2023 7,300 7,378 456 Mort 930LWYII2, 4,437 Mort 963DBEII7, 2.72%, Sep 01, 2023 456 439 3.36%, Sep 01, 2024 4,437 4,344 65,425 65,264 4,291 Mort 931KYGII0, 3.38%, Sep 01, 2024 4,291 4,194 Residential 17.5% 494 Mort 933DAZII8, Ontario 14.6% 4.01%, May 01, 2025 494 496 5,209 Mort 930PYLII9, 1,242 Mort 933FJUII5, 3.52%, Feb 01, 2019 5,209 5,215 3.98%, Sep 01, 2025 1,243 1,250 5,474 Mort 930PYUII9, 2.71%, Dec 01, 2020 5,474 5,429 45,413 45,487 4,653 Mort 930PYVII7, British Columbia 3.6% 2.71%, Dec 01, 2020 4,653 4,615 463 Mort 930QHEII2, 4,516 Mort 930QHPII7, 2.63%, May 01, 2021 463 454 2.71%, Dec 01, 2020 4,516 4,479 493 Mort 933TDMII9, 6,752 Mort 930QHQII5, 3.60%, May 01, 2021 493 492 2.71%, Dec 01, 2020 6,752 6,696 691 Mort 930QHJII1, 1,316 Mort 930QHUII6, 2.56%, Dec 01, 2021 691 673 3.51%, Dec 01, 2022 1,316 1,308 523 Mort 930QHNII2, 492 Mort 933TDLII1, 2.84%, Feb 01, 2022 523 509 3.58%, Apr 01, 2023 492 489 479 Mort 931WQNII8, 495 Mort 963WDDII5, 2.78%, Jun 01, 2022 479 465 3.71%, Jun 01, 2023 495 497 2,284 Mort 932XDCII3, 2,872 Mort 931ESBII2, 3.39%, Nov 01, 2022 2,284 2,255 2.93%, Nov 15, 2023 2,872 2,755 2,441 Mort 932XDBII5, 479 Mort 930WDTII0, 3.39%, Dec 01, 2022 2,441 2,416 2.84%, Jun 01, 2024 479 459 481 Mort 932PWKII1, 479 Mort 962ZCSII7, 3.79%, Mar 01, 2023 481 479 2.84%, Jun 01, 2024 479 459 545 Mort 934JVWII8, 1,936 Mort 930PYJII4, 3.56%, Jul 01, 2023 545 546 3.78%, Feb 01, 2025 1,936 1,955 896 Mort 933FLYII4, 2,456 Mort 930PYBII1, 3.62%, Oct 01, 2023 896 900 3.86%, Feb 01, 2025 2,456 2,485 9,296 9,189 37,129 36,841 Quebec 2.0% Quebec 2.2% 556 Mort 930QFFII1, 2,036 Mort 930QFEII4, 2.66%, May 01, 2021 556 546 2.59%, Jul 01, 2021 2,036 1,992 4,558 Mort 930PYXII3, 2,500 Mort 933FTCII4, 3.10%, Oct 05, 2022 4,558 4,522 3.56%, Jan 01, 2024 2,500 2,508 1,094 Mort 933CRYII5, 5,114 5,068 3.54%, Aug 01, 2025 1,094 1,088 Saskatchewan 0.8% 5,630 5,588 1,972 Mort 932FQVII6, 3.66%, Jan 01, 2025 1,972 1,958 British Columbia 0.4% 492 Mort 963SRPII2, Alberta 0.7% 3.16%, Apr 01, 2021 492 490 1,373 Mort 932JGYII3, 467 Mort 963DRMII2, 3.39%, Dec 01, 2020 1,373 1,362 3.17%, Sep 15, 2022 467 458 468 Mort 930QFSII3, 2.55%, Oct 01, 2021 468 457 959 948 1,841 1,819 Nova Scotia 0.3% 464 Mort 930QFVII6, Nova Scotia 0.3% 2.53%, Jul 01, 2021 464 453 674 Mort 963ACNII2, 485 Mort 931VECII7, 2.79%, Jul 01, 2020 674 665 2.72%, Jun 10, 2022 485 469 Manitoba 0.3% 949 922 659 Mort 930QMMII8, 2.56%, Nov 10, 2021 659 639 44,667 44,299

The accompanying notes are an integral part of the financial statements.

90 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN MORTGAGE FUND MANULIFE CANADIAN MORTGAGE FUND

PAR VALUE ($) (’000)/ PAR VALUE ($) (’000)/ NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF SHARES / AVERAGE COST FAIR VALUE NO. OF UNITS NAME ($) (’000) ($) (’000) NO. OF UNITS NAME ($) (’000) ($) (’000) Industrial 11.7% Quebec 1.8% Ontario 6.3% 1,089 Mort 930PXJII5, 2,614 Mort 930PYMII7, 3.40%, Feb 01, 2019 1,089 1,089 3.59%, Mar 01, 2019 2,614 2,619 999 Mort 930PYWII5, 2,368 Mort 930QFJII3, 2.99%, Sep 01, 2022 999 978 2.78%, Oct 01, 2020 2,368 2,351 644 Mort 963YKYII7, 232 Mort 930QFLII8, 3.49%, Aug 01, 2023 644 643 2.28%, Mar 01, 2021 232 229 1,133 Mort 930GBGII5, 466 Mort 930PYQII8, 2.71%, Sep 01, 2023 1,133 1,096 3.31%, Jun 01, 2021 466 461 795 Mort 933FLCII2, 492 Mort 933RKDII5, 3.67%, Sep 01, 2023 795 798 3.59%, Jun 01, 2021 492 490 4,660 4,604 1,958 Mort 930QFMII6, 2.41%, Aug 01, 2021 1,958 1,909 Alberta 0.8% 394 Mort 930QFNII4, 949 Mort 930PXKII2, 2.32%, Aug 10, 2021 394 382 3.48%, Nov 01, 2019 949 951 472 Mort 930QMJII5, 650 Mort 964HMEII5, 3.11%, Nov 01, 2021 472 460 3.94%, Nov 01, 2020 650 652 533 Mort 930QMKII2, 461 Mort 930QMLII0, 2.67%, Dec 01, 2021 533 519 3.00%, Oct 01, 2021 461 449 442 Mort 931WGAII7, 2,060 2,052 3.17%, Aug 01, 2022 442 436 Nova Scotia 0.4% 750 Mort 932TSFII9, 1,080 Mort 930QFTII1, 2.99%, Sep 01, 2022 750 736 2.74%, Jul 01, 2020 1,080 1,070 1,415 Mort 931ENWII1, 3.33%, Jan 01, 2023 1,415 1,395 Manitoba 0.4% 1,334 Mort 933FHZII6, 836 Mort 930PXLII0, 3.56%, Aug 01, 2023 1,334 1,338 2.43%, Mar 01, 2020 836 829 645 Mort 933CRSII8, 29,872 29,541 3.67%, Aug 01, 2023 645 642 468 Mort 930LDCII1, Other 1.7% British Columbia 1.7% 2.76%, Sep 01, 2023 468 450 1,995 Mort 930QFYII0, 542 Mort 931FXGII2, 2.66%, Oct 01, 2020 1,995 1,974 3.86%, Feb 01, 2024 542 531 2,482 Mort 932YHCII7, 972 Mort 931ECZII6, 3.22%, Dec 01, 2022 2,482 2,440 3.46%, Nov 01, 2024 972 957 4,477 4,414 16,097 15,905 244,960 243,704 British Columbia 2.0% 1,272 Mort 930QFZII7, SHORT-TERM INVESTMENTS 3.2% 2.83%, Oct 01, 2020 1,272 1,259 6,000 Canadian Treasury Bill, 465 Mort 930QHFII9, 1.20%, Feb 07, 2019 5,990 5,990 2.91%, Jun 01, 2021 465 458 2,090 Toronto Hydro Corp., 488 Mort 930QHKII8, 1.00%, Jan 02, 2019 2,090 2,090 2.56%, Dec 01, 2021 488 472 8,080 8,080 491 Mort 963QXGII9, 3.69%, Mar 01, 2023 491 488 Total investments 253,040 251,784 494 Mort 933DHJII7, Other assets less liabilities 0.3% 684 3.77%, Jun 01, 2023 494 496 Net assets attributable to 500 Mort 934JVCII2, contractholders 100.0% 252,468 3.59%, Jul 01, 2023 500 504 467 Mort 930QHGII7, 2.66%, Sep 01, 2023 467 451 962 Mort 931DXPII7, 3.71%, Oct 01, 2024 962 953 5,139 5,081

The accompanying notes are an integral part of the financial statements.

91 POOLED & INDEXED FUNDS ANNUAL REPORT

MANULIFE CANADIAN MORTGAGE FUND MANULIFE CANADIAN MORTGAGE FUND

CONCENTRATION RISK The following table summarizes the Fund’s concentration risk.

% of net assets attributable to contractholders Portfolio by category December 31, 2018 December 31, 2017

Mortgages Office British Columbia 22.6 11.3 Ontario 9.3 7.6 Nova Scotia 4.8 5.4 Quebec 1.2 1.4 Alberta 1.1 1.0 New Brunswick 0.7 - Retail Ontario 18.0 16.3 British Columbia 3.6 4.4 Quebec 2.0 2.5 Saskatchewan 0.8 - Alberta 0.7 0.2 Nova Scotia 0.3 0.5 Manitoba 0.3 0.3 New Brunswick 0.2 - Residential Ontario 14.6 15.9 Quebec 2.2 0.9 British Columbia 0.4 1.9 Nova Scotia 0.3 0.4 Industrial Ontario 6.3 6.5 British Columbia 2.0 3.3 Quebec 1.8 3.0 Alberta 0.8 3.2 Nova Scotia 0.4 0.5 Manitoba 0.4 0.4 Other British Columbia 1.7 - Short-Term Investments 3.2 11.5 Other assets less liabilities 0.3 1.6 100.0 100.0

The accompanying notes are an integral part of the financial statements.

92 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

1. THE FUNDS

MLI (the “Manager”) is a subsidiary of MFC. The Manager is the sole issuer of the group variable annuity contract providing for investment in each Fund (individually, the “Fund”, and collectively, the “Funds”). The assets of the Funds are owned by the Manager but are segregated from other assets of the Manager under the Insurance Companies Act. The Funds are not separate legal entities. The investment objective of each Fund is to combine and manage money contributed by contractholders with similar investment goals. The Funds may invest in equities, fixed income securities, derivatives, underlying funds or some combination thereof according to their investment objectives and strategies. Investments may be held for income or capital appreciation or both. Contractholders share the Fund’s income, expenses, and any gains or losses the Fund makes on its investments generally in proportion to the value of the securities it owns. The Funds may earn interest or other amounts, dividends, capital gains or a combination of these on their investments. The Manager’s principal place of business is 500 King Street North, Waterloo, Ontario, N2J 4C6, Canada. These financial statements were approved by the Manager on April 5, 2019. The inception date of each of the Funds are as follows:

Date of Date of Fund inception Fund inception

Manulife Asset Management Canadian Equity Fund July 31, 1966 Manulife Asset Management Bond Fund July 31, 1968 Manulife Canadian Equity Index Fund (Manulife Asset August 31, 1998 Manulife Asset Management Long Term Bond Fund December 22, 2003 Management) Manulife Canadian Bond Index Fund (Manulife Asset August 31, 1998 Manulife Capped Canadian Equity Fund (Manulife Asset December 29, 2000 Management) Management) Manulife Asset Management Real Return Bond Fund December 22, 2003 Manulife Canadian Equity Capped Index Fund (Manulife Asset March 21, 2001 Manulife Asset Management Diversified Fund December 31, 1987 Management) Manulife Diversified Tri-Plan Fund (Manulife Asset Management) November 30, 1973 Manulife Asset Management Canadian Small-Cap Equity Fund October 1, 1996 Manulife Money Market Fund (Manulife Asset Management) November 30, 1975 Manulife Equity Tri-Plan Fund (Manulife Asset Management) September 15, 1969 Manulife Canadian Pooled Real Estate Fund December 31, 1982 Manulife US Equity Index Fund (Manulife Asset Management) August 31, 1998 Manulife Canadian Mortgage Fund March 1, 1969 Manulife SLI US Equity Non-Registered Fund June 26, 1997

The Statements of Financial Position of the Funds are as at December 31, 2018 and 2017. The Statements of Comprehensive Income, Statements of Changes in Net Assets Attributable to Contractholders and Statements of Cash Flows are for the years ended December 31, 2018 and 2017. The Schedule of Investment Portfolio is as at December 31, 2018.

Abbreviations legend

The following is a list of abbreviations used in these financial statements: Currency abbreviations Other abbreviations CAD - Canadian Dollar ADR - American Depository Receipt EUR - Euro ETF - Exchange-Traded Fund USD - United States Dollar FRN - Floating Rate Note FVTPL - Fair Value Through Profit or Loss IAS - International Accounting Standard(s) IASB - International Accounting Standards Board IFRS - International Financial Reporting Standard(s) MAML - Manulife Asset Management Limited MFC - Manulife Financial Corporation MLI - The Manufacturers Life Insurance Company NAV - Net Asset Value NAVPU - Net Asset Value Per Unit REIT - Real Estate Investment Trust

2. SIGNIFICANT ACCOUNTING POLICIES

These financial statements have been prepared in accordance with IFRS as issued by the IASB. The significant accounting policies set out below have been consistently applied within these financial statements.

93 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

a) IFRS 9, Financial Instruments adoption

The IASB issued the final version of IFRS 9, Financial Instruments that replaces IAS 39, Financial Instruments: Recognition and Measurement. IFRS 9 brings together all three aspects of the accounting for financial instruments: classification and measurement, impairment and hedge accounting. The new standard requires financial assets to be either carried at amortized cost, at FVTPL or at fair value recognized in other comprehensive income based on the Funds’ business model for managing financial assets and the contractual cash flow characteristics of the financial statements. Effective January 1, 2018, the Funds retrospectively adopted IFRS 9 without restatement. Upon transition from IAS 39 to IFRS 9, the Funds’ financial assets and liabilities previously designated as FVTPL or classified as held for trading underIAS39arenow classified as FVTPL. Financial assets that were previously classified as loans and receivable under IAS 39 are now classified as amortized cost. The classification and measurement of other liabilities under the new standard remains generally unchanged. As a result of the transition to IFRS 9, there were no changes in the measurement for any of the financial assets and financial liabilities in the current or comparative period. Assessment and the application of the business model approach are areas of accounting judgment.

b) IFRS 15, Revenue from Contracts with Customers adoption

Effective January 1, 2018, Manulife Canadian Pooled Real Estate Fund adopted IFRS 15, Revenue from Contracts with Customers. The principles in IFRS 15 provide a more structured approach to measuring and recording revenue. IFRS 15 was adopted with modified retrospective method. The pattern of revenue recognition has remained unchanged upon adoption of the standard. Base rent, realty tax and insurance recoveries are accounted for pursuant to IAS 17, Leases, hence are outside the scope of IFRS 15 and covered under the income recognition section below (refer to Note 2k). Common area maintenance recoveries from tenants are within the scope of IFRS 15 as they represent a single performance obligation provided to tenants over time. These tenant recoveries are recognized as other property income in the year in which the applicable costs are incurred.

c) Critical accounting estimates and judgments

The preparation of the Funds’ financial statements requires the Manager to make judgments, estimates and assumptions that affect the reported amounts recognized in the financial statements and disclosure of contingent liabilities. However, uncertainty about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future periods. The following is a discussion of the most significant accounting judgments and estimates made in preparing the financial statements:

Estimates

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, which have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are discussed below. The Manager based the assumptions and estimates on parameters available when the financial statements were prepared. However, existing circumstances and assumptions about future developments may change due to market changes or circumstances arising beyond the control of the Manager. Such changes are reflected in the assumptions when they occur.

The Manager believes that the estimates used in preparing the financial statements are reasonable and prudent. Actual results could differ from these estimates and thedifferencecouldbematerial.

Fair value measurement of derivatives and securities not quoted in an active market

When the fair values of financial assets and financial liabilities recorded in the Statements of Financial Position cannot be derived from active markets, their fair value is determined using a variety of valuation techniques that include the use of reputable pricing sources, indicative prices from market makers or valuation models. The inputs to valuation models are taken from observable markets where possible, but where this is not feasible, estimation is required in establishing fair values. The estimates include consideration of liquidity and model inputs related to items such as credit risk (both own and counterparty’s), correlation and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments in the Statements of Financial Position and the level at which the instruments are disclosed in the fair value hierarchy.

Determination of functional currency

Certain Funds earn investment returns in CAD and foreign currencies based on the investments held. Expenses are incurred in CAD. Because the Funds do not earn returns solely in CAD, the primary indicators of functional currency are viewed to be mixed and secondary indicators have been considered. The subscriptions and redemptions of the units are denominated in CAD and the performance is measured and reported to the contractholders in CAD. The Manager considers the CAD as the currency that most faithfully represents the economic effects of the underlying transactions, events and conditions. The financial statements are therefore presented in CAD which is the functional and presentation currency.

d) Financial Instruments

Recognition and derecognition

All financial instruments are recognized at fair value upon initial recognition when a Fund becomes a party to the contractual requirements of the financial instruments. A financial asset is derecognized when the right to receive cash flows from the asset has expired or the Funds have substantially transferred all risks and rewards of ownership. A financial liability is derecognized when the obligation under the liability is discharged, cancelled or expired.

94 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

Classification

In classifying and measuring financial instruments held by the Funds, the Manager is required to assess the Funds’ business model, the manner in which all financial assets and financial liabilities are managed and performance evaluated as a group on a fair value basis and the contractual cash flow characteristics of these financial instruments. The Funds’ portfolio of financial assets is managed and evaluated on a fair value basis. Consequently, the Funds classify and measure all investments and derivatives at FVTPL. All other assets and liabilities are subsequently measured at amortized cost in accordance with IFRS 9. The Funds’ obligations for net assets attributable to contractholders are classified as financial liabilities in accordance with the requirements of IAS 32, Financial Instruments: Presentation and are presented at the redemption amount.

Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Term deposits, commercial paper, banker’s acceptances, bills, bonds, debentures, asset-backed securities, term-loans and other debt-like obligations are valued at the most recent mean of the evaluated bid and ask price or yield equivalent as obtained from one or more recognized independent pricing vendors. All exchange-traded equities, options and derivatives are valued at the last quoted trade price at the close of trading on the reporting date where the last traded price falls within that day’s bid-ask spread. In circumstances where the last traded price is not within the bid-ask spread, the Manager determines the point within the bid-ask spread that is the most representative of fair value based on the specific facts and circumstances. The Funds’ policy is to recognize transfers into and out of the fair value hierarchy levels as of the date of the event or change in circumstances giving rise to the transfer.

The Manager may make use of a fair value pricing policy which applies a fair value factor adjustment to quoted or published prices of non-North American equities for significant events occurring between the earlier close of non-North American markets and the time at which NAV is determined. Hence, the final fair value of equities used may differ from the actual closing traded market price of the securities on their primary exchange.

Investments in underlying funds are valued at their NAV calculated by the manager of the underlying fund in accordance with the constating documents of the underlying fund. If the NAV is unavailable, underlying funds are valued using the last published NAV or at the fair value as determined by the Manager using observable market inputs, whichever is deemed to be the best representation of fair value of the underlying funds.

The fair value of financial assets and liabilities that are not traded in an active market, including over-the-counter derivatives, is determined using recognized valuation techniques. The Manager uses a variety of methods and makes assumptions that are based on market conditions existing at each reporting date. Valuation techniques include the use of comparable recent arm’s length transactions, comparable similar other instruments, discounted cash flow analysis, options pricing models and others commonly used by market participants making maximum use of observable inputs. Over-the-counter derivatives (such as forward foreign currency contracts) are valued based on the difference between the contract forward rate and the rate prevailing on the reporting date.

e) Offsetting

Financial assets and liabilities are not offset unless there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle the liability simultaneously. The Funds may enter into various master netting agreements or similar agreements that do not meet the criteria for offsetting in the Statements of Financial Position but still allow for the related amounts to be set off in certain circumstances, such as bankruptcy or termination of the contracts.

f) Investments in subsidiaries, associates and interests in unconsolidated structured entities

A structured entity is an entity that has been designed so that voting or similar rights are not the dominant factor in deciding who controls the entity, such as when any voting rights relate to administrative tasks only and the relevant activities are directed by means of contractual arrangements. Subsidiaries are all entities, including investments in other investment entities, over which the Funds have control. The Funds control an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. The Manager has determined that Funds are each an investment entity as defined by IFRS 10, Consolidated Financial Statements and as such, the Funds account for subsidiaries at fair value. Disclosures with respect to the Funds’ interest in structured entities are included in Note 8, as applicable.

g) Impairment of financial assets at amortized cost

At each reporting date, the Manager assesses whether there is objective evidence that a financial asset at amortized cost is impaired. If such evidence exists, the Funds recognize an impairment loss as the difference between the amortized cost of the financial asset and the present value of the estimated future cash flows, discounted using the instrument’s original effective interest rate. Impairment loss on financial assets at amortized cost are reversed in subsequent periods if the amount of the loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized.

h) Cash

Cash represents cash at the bank and is carried at amortized cost, which approximates its fair value. Cash is held with the Funds’ custodian, a Canadian financial institution.

i) Investment transactions

Investment transactions are recorded on a trade date basis. Realized gain or loss on sales of investments and change in unrealized appreciation (depreciation) in the value of investments are determined on an average cost basis.

95 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

j) Transaction costs

Transaction costs are incremental costs that are directly attributable to the acquisition or disposal of an investment, which include fees and commissions paid to brokers and dealers, levies by regulatory agencies and securities exchanges, and transfer taxes and duties. Transaction costs incurred in the purchase and sale of securities are recognized immediately as expenses for financial reporting purposes, and are included in the Statements of Comprehensive Income.

k) Income recognition

Income from investments is recognized on an accrual basis. Real estate income is shown in the Statements of Comprehensive Income of Manulife Canadian Pooled Real Estate Fund and includes rental income. Rental income is recognized on a straight-line basis over the term of the lease. Lease incentives are recognized as an integral part of the total rental income and are also spread over the term of the lease. Contingent rents are recognized as revenue in the period in which they are earned. Other property income shown in the Statements of Comprehensive Income of Manulife Canadian Pooled Real Estate Fund consists mainly of recoveries income from tenants, which is recognized as revenue in the year in which the applicable costs are incurred. The Manager has determined that there are no financing components related to any income earned from service contracts. There is also no material contract assets and liabilities related to the recoveries from tenants. Interest for allocation purposes shown in the Statements of Comprehensive Income represents the coupon interest received by the Funds accounted for on an accrual basis. The Funds do not amortize premiums paid or discounts received on the purchase of fixed income securities except for zero coupon bonds which are amortized on a straight-line basis.

Dividend income or distributions are recognized on the ex-dividend or distribution record date, respectively.

Distributions from the underlying funds can include dividends, interest for allocation purposes and capital gains, the proceeds of which are used to purchase additional units in the underlying funds. Distributions are recognized at the date of the distribution by the underlying funds and shown separately as distribution income from underlying funds in the Statements of Comprehensive Income.

l) Foreign exchange translations

The Funds’ functional and presentation currency is CAD.

Foreign currency transactions and balances are translated into the functional currency on the following basis:

i) Fair value of investments and other assets and liabilities are translated to functional currency at the rate of exchange in effect on the applicable valuation date, as quoted by a recognized source. ii) Purchases and sales of investments, income and expenses are translated to functional currency at the rate of exchange prevailing on the respective dates of such transactions. iii) Realized and unrealized foreign currency gains (losses) on investments are included in realized gain (loss) on sales of investments and change in unrealized appreciation (depreciation) in the value of investments, respectively in the Statements of Comprehensive Income. iv) Realized foreign currency gains (losses) on income are included in foreign exchange gain (loss) on income in the Statements of Comprehensive Income. v) Realized and unrealized foreign currency gains or losses on cash held in a foreign currency are included in foreign exchange gain (loss) on currency in the Statements of Comprehensive Income.

m) Futures contracts

Certain Funds may enter into standard exchange-traded futures contracts to gain broad exposure to stock markets and to hedge foreign currency fluctuations, with the benefits of low transaction costs and high liquidity, provided their use is consistent with the Funds’ investment objectives and strategies as permitted by applicable securities legislation. Upon entering into a futures contract, a Fund is required to deposit, either in cash or securities, an amount equal to a certain percentage of the purchase price indicated in the futures contract. The fair value of a futures contract fluctuates daily, and cash settlements are made daily by the Fund equal to the unrealized appreciation or depreciation on a “mark to market” basis. The unrealized appreciation (depreciation) is recorded and is accounted for as change in net unrealized appreciation (depreciation) in the value of derivatives in the Statements of Comprehensive Income. Upon the expiration or closing of the futures contract, realized gains or losses are recognized, and are recorded as realized gain (loss) on derivatives in the Statements of Comprehensive Income. Margin paid or deposited in respect of futures contracts is reflected in the Statements of Financial Position, as margin payable for derivatives and margin deposited on derivatives. Any change in the variation margin requirement is settled daily.

n) Forward foreign currency contracts

Certain Funds may enter into forward foreign currency contracts in a manner consistent with the investment objective and strategy of each Fund and as permitted by applicable securities legislation. Foreign currency exchange spot contracts and forward foreign currency exchange contracts are valued based on the difference between the contract forward rate and the rate prevailing on a reporting date. Realized and unrealized gains (losses) on forward foreign currency contracts are recorded in realized gain (loss) on derivatives and change in unrealized appreciation (depreciation) in the value of derivatives in the Statements of Comprehensive Income. Credit ratings on counterparties are based on the ratings from Standard & Poor’s.

o) Securities lending

The Funds may lend portfolio securities from time to time in order to earn additional income. The loaned assets will not exceed 50% of the fair value of the assets of the Fund at any time. The minimum allowable collateral is 102% of the fair value of the loaned securities. The fair value of the loaned securities is determined at the close of any valuation date. The securities on loan continue to be disclosed in the Schedule of Investment Portfolio and in the Statements of Financial Position of the Funds.

Any cash collateral received is included in the Statements of Financial Position in cash collateral received for securities on loan, if applicable.

96 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

For those Funds engaged in securities lending, the amount of securities loaned and the value of collateral received is disclosed in Note 9, where applicable. Income earned from securities lending is included in income from securities lending in the Statements of Comprehensive Income.

p) Real estate and mortgage investments

Real estate investments are properties held to earn rental income or for capital appreciation and are presented as such in the Statements of Financial Position of Manulife Canadian Pooled Real Estate Fund. They are initially recorded at cost, including transaction costs, and subsequently measured at fair value with changes in fair value recognized in the Statements of Comprehensive Income. Fair value is determined without any deduction for transaction costs that may be incurred on sale or other disposal. Initial direct costs incurred in arranging an operating lease are added to the carrying amount of real estate investments and are recognized as an expense over the lease term on the same basis as the lease income (refer to Note 2k). The fair value of financing on real estate is estimated as the net present value of expected future cash flows using current market interest rates. Mortgage investments are valued at the net present value of expected future cash flows using current market interest rates.

q) Increase (decrease) in net assets attributable to contractholders per unit

Increase (decrease) in net assets attributable to contractholders per unit in the Statements of Comprehensive Income represents the increase (decrease) in net assets attributable to contractholders for the year, divided by the weighted average number of units outstanding during the year.

r) Foreign withholding tax

The Funds may incur withholding taxes imposed by certain countries on investment income and capital gains. Such income and gains are recorded on a gross basis and the related withholding taxes are shown as a separate expense in the Statements of Comprehensive Income.

s) New IFRS standards issued but not yet effective

IFRS 16, Leases

In January 2016, the IASB issued IFRS 16, Leases which replaces IAS 17, Leases and its associated interpretative guidance. IFRS 16 applies a control model to the identification of leases, distinguishing between a lease and a service contract based on whether the customer controls the asset being leased. For those assets determined to meet the definition of a lease, IFRS 16 introduces significant changes to the accounting by lessees, introducing a single, on-balance sheet accounting model that is similar to current finance lease accounting, with limited exceptions for short-term leases or leases of low-value assets. Lessor accounting remainssimilartocurrent accounting practice. The standard is effective for annual periods beginning on or after January 1, 2019, with early application permitted for entities that apply IFRS 15. No impact on the net assets and the results of the Funds is expected from the adoption of IFRS 16.

There are no other standards, interpretations or amendments to existing standards that are not yet effective that would be expected to have significant impact on the Funds.

3. FINANCIAL INSTRUMENT RISKS

Management of financial instrument risks

The Funds may be exposed to a variety of financial risks: credit risk, liquidity risk and market risk (including interest rate risk, currency risk, concentration risk and other market risk). The Funds’ overall risk management program seeks to maximize the returns derived for the level of risk to which the Fund is exposed, and seeks to minimize potential adverse effects on the Fund’s financial performance. The value of investments within the Funds’ holdings can fluctuate on a daily basis as a result of changes in interest rates, economic conditions and market and company news related to specific securities within the Funds. The Funds’ risk management practice includes the monitoring of compliance to investment policy and guidelines. The Manager manages the potential effects of these financial risks on the Funds’ performance by employing and overseeing professional and experienced portfolio advisors that regularly monitor the Funds’ positions, market events and diversify investment portfolios within the constraints of the investment guidelines. The Manager maintains a risk management practice that includes monthly and quarterly monitoring of the returns based risk profile of the Funds. The Manager also monitors compliance with investment restrictions to ensure that each Fund is being managed in accordance with their stated investment objectives and strategies. Some Funds specialize in a particular industry, or in a single country or geographic region of the world. These Funds may therefore be more volatile than more broadly diversified Funds. The overall risk management program of such Funds seeks to minimize the potentially adverse effect of risk on each Fund’s financial performance in a manner consistent with its investment objective. Fund on Fund portfolios are rebalanced by buying or selling the underlying funds in these portfolios based solely on the strategic asset allocation model and not on the specific securities in the Underlying Funds. To help to achieve consistent stable and robust returns over the long term, each Fund is diversified by asset class, region, and management style and strategies. Each portfolio is designed for a defined level of risk.

Financial instrument risk

a) Credit risk

Credit risk is the risk that the issuer of a debt security or counterparty to a financial instrument will fail to pay the interest or to repay the principal or discharge an obligation or commitment that it has entered into with the Fund. The carrying value of investments as presented in the Schedule of Investment Portfolio represents the maximum credit risk exposure as at December 31, 2018. This also applies to other assets, as they have short terms to settlement. The midpoint credit rating from Standard & Poor’s has been used in the risk disclosures, except for mortgage investments in Manulife Canadian Mortgage Fund, which are performed internally and presented on a basis consistent with Standard & Poor’s.

97 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

All transactions in listed securities are settled/paid for upon delivery using approved brokers. The risk of default is considered minimal, as delivery of securities sold is only made once the broker has received payment. Payment is made on a purchase once the securities have been received by the broker.A trade will fail if either party fails to meet its obligation. Since money market funds primarily invest in securities with maturities less than one year, their exposure to credit risk is minimal. Credit risk is presented on debt securities (excluding short-term investments) and derivative assets. The Funds may be exposed to indirect credit risk in the event that the underlying fund holds debt securities and/or derivative assets. The following table summarizes the Funds’ exposure to credit risk as a percentage of net assets attributable to contractholders.

Credit ratings (%) of net assets attributable to contractholders As at December 31, AAA AA A BBB N/R Total

Manulife Equity Tri-Plan Fund (Manulife Asset Management) 2017 0.1 0.2 - - - 0.3 Manulife Asset Management Bond Fund 2018 21.0 21.7 36.6 18.9 0.2 98.4 2017 25.4 19.2 35.8 16.4 0.2 97.0 Manulife Asset Management Long Term Bond Fund 2018 25.9 23.0 40.0 10.4 - 99.3 2017 21.0 23.1 42.0 9.6 - 95.7 Manulife Canadian Bond Index Fund (Manulife Asset Management) 2018 38.4 18.3 31.3 11.6 - 99.6 2017 40.2 16.2 32.4 10.5 - 99.3 Manulife Asset Management Real Return Bond Fund 2018 87.8 7.0 4.9 - - 99.7 2017 87.5 7.0 5.1 - - 99.6 Manulife Asset Management Diversified Fund 2018 8.2 4.7 7.0 4.7 - 24.6 2017 14.4 2.5 4.5 2.4 - 23.8 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) 2018 8.1 4.3 7.1 4.2 0.1 23.8 2017 16.1 1.4 1.8 2.1 0.1 21.5 Manulife Canadian Mortgage Fund 2018 4.0 14.3 69.7 8.5 - 96.5 2017 4.6 17.7 54.6 10.0 - 86.9 Manulife Canadian Pooled Real Estate Fund was exposed to credit risk through accounts receivable from tenants. The risk was not significant as exposure to any concentration of individual tenants was minimal.

b) Interest rate risk

The interest rate risk is presented on debt securities (excluding short-term investments). All short-term investments have a maturity of less than one year.The Funds are exposed to the risk that the fair value of interest-bearing financial instruments will fluctuate due to changes in the prevailing levels of market interest rates. Other assets and liabilities are either short-term in nature or non-interest-bearing. Generally, the fair value of fixed income securities will vary inversely in relation to a change in interest rates. As interest rates rise, the fair value of fixed income securities falls and vice versa. The magnitude of the fall and rise will generally be greater for long-term fixed income securities than for short-term fixed income securities. Since money market funds primarily invest in securities with maturities less than one year, their exposure to interest rate risk is minimal. The Funds may be exposed to indirect interest rate risk in the event that the underlying fund holds debt securities. Had the prevailing interest rates raised or lowered by 25 basis points (0.25%) with all other variables held constant, based on duration for bonds using earlier of contractual re-pricing or maturity date, net assets attributable to contractholders would have decreased or increased, respectively, by approximately the amount presented in the column ЉImpact on net assetsЉ. In practice, actual results may differ from this sensitivity analysis and the difference could be material.

Remaining term to maturity Impact on As at December 31, < 1 year 1-3 years 3-5 years > 5 years Total net assets

Manulife Asset Management Bond Fund 2018 9,104 80,753 84,263 418,144 592,264 11,816 2017 9,259 96,461 155,151 508,669 769,540 15,376

98 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

Remaining term to maturity Impact on As at December 31, < 1 year 1-3 years 3-5 years > 5 years Total net assets

Manulife Asset Management Long Term Bond Fund 2018 - - - 302,873 302,873 11,418 2017 - - - 429,062 429,062 17,194 Manulife Canadian Bond Index Fund (Manulife Asset Management) 2018 102 748,707 584,292 1,775,633 3,108,734 57,900 2017 2,495 789,980 701,077 1,925,818 3,419,370 65,462 Manulife Asset Management Real Return Bond Fund 2018 - 8,260 - 62,961 71,221 2,616 2017 141 - 8,500 63,913 72,554 2,748 Manulife Asset Management Diversified Fund 2018 1,810 42,573 19,889 108,650 172,922 3,273 2017 651 12,694 31,696 149,929 194,970 5,454 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) 2018 351 7,352 4,206 17,347 29,256 554 2017 - 1,929 5,416 25,275 32,620 973 Manulife Canadian Mortgage Fund 2018 20,483 72,295 92,490 58,436 243,704 2,050 2017 31,052 77,326 54,047 41,367 203,792 1,490 A significant portion of Manulife Canadian Pooled Real Estate Fund’s liabilities is included in financing on real estate, which is interest-bearing at fixed rates and is recorded at fair value in the Statements of Financial Position. Management’s best estimate of the effect on net assets due to an increase or decrease by 0.25% in prevailing interest rates, with all other variables held constant, is a decrease or increase in net assets, respectively, by $1,480 as at December 31, 2018, and $449 as at December 31, 2017.

c) Currency risk

Currency risk arises from financial instruments that are denominated in a currency other than the functional currency of each Fund. The Funds are exposed to the risk that the fair value of securities denominated in other currencies will fluctuate due to changes in exchange rates. The Schedule of Investment Portfolio identifies all fixed income securities denominated in foreign currencies. Fixed income securities are presumed to be denominated in the Fund’s presentation currency unless otherwise noted. Equities trading in foreign markets are also exposed to currency risk as the price in local terms on the foreign stock exchange is converted to the functional currency to determine fair value.

The foreign currency exposure amounts are based on the fair value of the Funds’ holdings and the underlying notional amounts of any derivative contracts. The investments include both monetary and non-monetary instruments.

The Funds may be exposed to indirect currency risk in the event the underlying funds invest in foreign currency denominated instruments.

The following table summarizes the Funds’ exposure to currency risk. Had the Canadian dollar strengthened or weakened by 1% as at December 31, 2018 (5% as at December 31, 2017) in relation to all currencies, with all other variables held constant, net assets attributable to contractholders would have decreased or increased by the amount presented in the column ЉImpact on net assetsЉ. In practice, actual results may differ from this sensitivity analysis and the difference could be material.

As at December 31, 2018 2017 Financial Financial instruments Net %of Impact instruments Net %of Impact excluding currency net on net excluding currency net on net Currency derivatives Derivatives exposure assets assets derivatives Derivatives exposure assets assets

Manulife Asset Management Canadian Equity Fund USD 238 - 238 0.1 436 - 436 0.1 Total 238 - 238 0.1 2 436 - 436 0.1 22 Manulife Canadian Equity Index Fund (Manulife Asset Management) USD 274 - 274 0.1 220 - 220 - Total 274 - 274 0.1 3 220 - 220 - 11 Manulife Capped Canadian Equity Fund (Manulife Asset Management) USD 153 - 153 0.1 322 - 322 0.2 Total 153 - 153 0.1 2 322 - 322 0.2 16

99 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) USD 137 - 137 0.1 108 - 108 - Total 137 - 137 0.1 1 108 - 108 - 5 Manulife Asset Management Canadian Small-Cap Equity Fund USD 14,012 - 14,012 8.7 12,864 - 12,864 6.9 Total 14,012 - 14,012 8.7 140 12,864 - 12,864 6.9 643 Manulife Equity Tri-Plan Fund (Manulife Asset Management) EUR 1 - 1 - - - - - USD 19,186 (12,361) 6,825 17.1 23,759 (9,146) 14,613 28.7 Total 19,187 (12,361) 6,826 17.1 68 23,759 (9,146) 14,613 28.7 731 Manulife US Equity Index Fund (Manulife Asset Management) USD 402,646 (445) 402,201 99.0 428,267 33 428,300 99.8 Total 402,646 (445) 402,201 99.0 4,022 428,267 33 428,300 99.8 21,415 Manulife SLI US Equity Non-Registered Fund USD 8,321 - 8,321 98.1 8,284 - 8,284 96.7 Total 8,321 - 8,321 98.1 83 8,284 - 8,284 96.7 414 Manulife Asset Management Bond Fund EUR 151 (246) (95) - 21 6 27 - USD 13,733 (14,047) (314) (0.1) 8,519 (4,192) 4,327 0.5 Total 13,884 (14,293) (409) (0.1) (4) 8,540 (4,186) 4,354 0.5 217 Manulife Asset Management Long Term Bond Fund EUR 89 (134) (45) - 73 63 136 - USD 3,536 (3,494) 42 - 5,565 (2,779) 2,786 0.6 Total 3,625 (3,628) (3) - - 5,638 (2,716) 2,922 0.6 146 Manulife Asset Management Diversified Fund EUR 31 (36) (5) - 5 - 5 - USD 26,871 (3,494) 23,377 3.3 29,480 (672) 28,808 3.5 Total 26,902 (3,530) 23,372 3.3 234 29,485 (672) 28,813 3.5 1,440 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) EUR 1 - 1 - - - - - USD 6,220 (375) 5,845 4.8 6,677 - 6,677 4.4 Total 6,221 (375) 5,846 4.8 58 6,677 - 6,677 4.4 334

d) Concentration risk

Concentration risk arises as a result of the concentration of exposures within the same category, whether it is geographical location, product type, industry sector or counterparty type. Effective September 2018, Morgan Stanley Capital International announced a restructuring of the Global Industry Classification Standard by redefining and renaming some sectors. The concentration risk table in the Schedule of Investment Portfolio reflects this new classification on a prospective basis.

e) Other market risk

The value of units of a Fund that invests in securities is directly related to the fair value of those investments held by that Fund. The fair value of those investments will increase or decrease depending on the financial performance of the issuers and general economic, political, tax and market conditions. All securities present a risk of loss of capital. The Manager manages this risk through a careful selection of securities and other financial instruments within the parameters of the Funds’ investment strategies. Except for options written and futures contracts held short (if any), the maximum risk resulting from financial instruments is equivalent to their fair values. Possible losses from options written and futures contracts held short can be unlimited. The Funds’ equity, debt and derivative instruments are susceptible to market price risk arising from uncertainties about future prices of the instruments.

100 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

Since money market funds primarily invest in investments that are short-term in nature, their exposure to other market risk is minimal. The impact on net assets attributable to contractholders of the Funds due to a 5% change in NAV of the Funds, with all other variables held constant, is summarized in the table below. In practice, actual results may differ from this sensitivity analysis and the difference could be material.

As at December 31, 2018 2017

Manulife Asset Management Canadian Equity Fund 18,013 21,060 Manulife Canadian Equity Index Fund (Manulife Asset Management) 19,099 24,012 Manulife Capped Canadian Equity Fund (Manulife Asset Management) 5,537 9,325 Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) 9,743 11,525 Manulife Asset Management Canadian Small-Cap Equity Fund 8,021 9,004 Manulife Equity Tri-Plan Fund (Manulife Asset Management) 2,001 2,491 Manulife US Equity Index Fund (Manulife Asset Management) 20,319 20,587 Manulife SLI US Equity Non-Registered Fund 424 418 Manulife Asset Management Bond Fund 30,100 39,675 Manulife Asset Management Long Term Bond Fund 15,253 22,410 Manulife Canadian Bond Index Fund (Manulife Asset Management) 156,101 172,178 Manulife Asset Management Real Return Bond Fund 3,573 3,641 Manulife Asset Management Diversified Fund 35,113 41,007 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) 6,148 7,581 Manulife Canadian Mortgage Fund 12,623 11,711 f) Liquidity risk

The following paragraph relates to all Funds, with the exception of Manulife Canadian Pooled Real Estate Fund and Manulife Canadian Mortgage Fund.

Liquidity risk is the risk that a Fund may not be able to settle or meet its obligations associated with financial liabilities on time. Each Fund is exposed to daily cash redemptions of units. The Funds are primarily invested in securities that are traded in active markets and can be readily disposed of. All other liabilities of the Funds, other than derivatives, mature in six months or less. In addition, the Funds try to maintain sufficient cash positions to meet liquidity requirements. The Funds also have the ability to borrow up to 5% of their net assets attributable to contractholders for the purpose of funding redemptions.

From time to time, certain Funds may enter into certain financial instruments transactions which are not traded in an organized market and may be illiquid. The Funds restrict such investments to 10% of the investments in the Funds to maintain liquidity.

Manulife Canadian Pooled Real Estate Fund was exposed to liquidity risk through cash redemptions of units since the real estate investments were not actively traded and, to a lesser extent, by the financing on real estate. Manulife Canadian Mortgage Fund was exposed to liquidity risk through daily cash redemptions of units since the mortgage investments were not actively traded. The Funds retained cash and/or short-term investments to maintain liquidity for the purpose of funding redemptions. However, where cash and short-term investments could not support redemption requests in the short term, contractual provisions exist under segregated fund policies to address and mitigate liquidity risks.

Units are redeemable on demand at the contractholder’s option. All other financial liabilities have a contractual maturity date of less than three months, except for financing on real estate and tenant deposits in Manulife Canadian Pooled Real Estate Fund. The undiscounted cash flows payable by remaining contractual maturity date for financing on real estate and tenant deposits in Manulife Canadian Pooled Real Estate Fund were as follows:

As at December 31, < 1 year 1-5 years > 5 years Total

Financing on real estate 2018 12,649 110,097 26,561 149,307 2017 37,532 38,750 12,147 88,429 Tenant deposits 2018 1,530 3,630 2,434 7,594 2017 1,930 3,397 2,716 8,043 g) Fair value measurement

The Funds classify each financial instrument into one of three fair value levels within the fair value hierarchy. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are: Level 1 – for unadjusted quoted prices in active markets for identical assets or liabilities, Level 2 – for inputs, other than quoted prices included in Level 1, that are observable for the asset or liabilities, either directly (i.e. as prices) or indirectly (i.e. derived from prices), and Level 3 – for inputs that are based on unobservable market data.

101 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

If inputs of different levels are used to measure an asset’s or liability’s fair value, the classification within the hierarchy is based on the lowest level input that is significant to the fair value measurement. All fair value measurements are recurring. For financial instruments whose fair values approximate their carrying values, given their short term nature, the carrying values of financial instruments measured at amortized cost approximate their fair values. Fair values are classified as Level 1 when the related security or derivative is actively traded and a quoted price is available. If an instrument classified as Level 1 subsequently ceases to be actively traded, it is transferred out of Level 1. In such cases, instruments are reclassified into Level 2, unless the measurement of its fair value requires the use of significant unobservable inputs, in which case it is classified as Level 3. The models used to determine fair value measurements included in the financial statements of the Funds including Level 3 measurements, are validated and periodically reviewed by experienced personnel of the Manager, independent of the party that created them. The Manager considers and reviews the appropriateness of the valuation models, the valuation results, as well as any adjustments to the prices or estimates used by these models. At each financial reporting date, the Manager reviews and approves all Level 3 fair value measurements. The following discussion relates to all fair value measurements in all Funds, with the exception of real estate investments and financing on real estate in Manulife Canadian Pooled Real Estate Fund and mortgage investments in Manulife Canadian Mortgage Fund. These fair value measurements are discussed in Note 3h.

Equities The Funds’ equity positions are classified as Level 1 when the security is actively traded and a reliable price is observable. In cases where the fair value is determined using observable market data, the position is classified as Level 2, unless the determination of fair value requires significant unobservable data, in which case the classification is Level 3. Certain of the Funds’ equities may not trade frequently and therefore observable prices may not be available. Where fair value factors are applied to the close price, the positions are classified as Level 2 unless the determination of fair value requires significant unobservable data, in which case the classification is Level 3.

Bonds and short-term investments

Bonds include primarily government and corporate bonds, which are valued using models with inputs including interest rate curves, credit spreads and volatilities. The inputs that are significant to valuation are generally observable and therefore the Funds’ bonds and short-term investments have been classified as Level 2, unless the determination of fair value requires significant unobservable input, in which they are classified as Level 3.

Derivative assets and liabilities

Derivative assets and liabilities may consist of forward foreign currency contracts, futures contracts, options contracts and swap contracts. Contracts for which counterparty credit spreads are observable and reliable, or for which the credit-related inputs are determined not to be significant to fair value, are classified as Level 2. Exchange-traded options and futures are classified as Level 1. If a determination of fair value requires significant unobservable input, they are classified as Level 3.

Underlying funds

Investments in underlying funds that are ETFs or mutual funds are classified as Level 1, as they are actively redeemable and reliable prices are observable. Investments in underlying funds that are pooled funds or segregated funds are classified as Level 2.

Fair value hierarchy

The following table summarizes the inputs used in valuing the Funds’ financial instruments carried at fair value.

As at December 31, 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Manulife Asset Management Canadian Equity Fund Equities 354,994 - - 354,994 421,209 - - 421,209 Short-Term Investments - 4,179 - 4,179 - 5,219 - 5,219 Total 354,994 4,179 - 359,173 421,209 5,219 - 426,428 Manulife Canadian Equity Index Fund (Manulife Asset Management) Equities 372,504 - - 372,504 480,234 - - 480,234 Short-Term Investments - 7,009 - 7,009 - 22,586 - 22,586 Derivative Assets 1 - - 1 86 - - 86 Derivative Liabilities (259) - - (259) - - - - Total 372,246 7,009 - 379,255 480,320 22,586 - 502,906 Manulife Capped Canadian Equity Fund (Manulife Asset Management) Equities 108,206 - - 108,206 186,494 - - 186,494 Short-Term Investments - 2,060 - 2,060 - 1,520 - 1,520 Total 108,206 2,060 - 110,266 186,494 1,520 - 188,014

102 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

As at December 31, 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) Equities 186,776 - - 186,776 230,499 - - 230,499 Short-Term Investments - 4,700 - 4,700 - 5,486 - 5,486 Derivative Assets 21 - - 21 45 - - 45 Derivative Liabilities (133) - - (133) - - - - Total 186,664 4,700 - 191,364 230,544 5,486 - 236,030 Manulife Asset Management Canadian Small-Cap Equity Fund Equities 148,539 - - 148,539 177,844 2,243 - 180,087 Short-Term Investments - 10,823 - 10,823 - 7,135 - 7,135 Total 148,539 10,823 - 159,362 177,844 9,378 - 187,222 Manulife Equity Tri-Plan Fund (Manulife Asset Management) Equities 40,336 - - 40,336 49,436 388 - 49,824 Short-Term Investments - - - - - 360 - 360 Derivative Assets - - - - - 146 - 146 Derivative Liabilities - (387) - (387) - - - - Total 40,336 (387) - 39,949 49,436 894 - 50,330 Manulife US Equity Index Fund (Manulife Asset Management) Equities 395,831 - - 395,831 411,730 - - 411,730 Short-Term Investments - 6,145 - 6,145 - 15,785 - 15,785 Derivative Assets 19 - - 19 64 - - 64 Derivative Liabilities (464) - - (464) (31) - - (31) Total 395,386 6,145 - 401,531 411,763 15,785 - 427,548 Manulife SLI US Equity Non-Registered Fund Equities 8,311 - - 8,311 8,353 - - 8,353 Manulife Asset Management Bond Fund Short-Term Investments - 5,766 - 5,766 - 18,973 - 18,973 Bonds - 592,264 - 592,264 - 769,540 - 769,540 Derivative Assets 1 107 - 108 177 245 - 422 Derivative Liabilities (579) (560) - (1,139) (9) (149) - (158) Total (578) 597,577 - 596,999 168 788,609 - 788,777 Manulife Asset Management Long Term Bond Fund Short-Term Investments - 2,446 - 2,446 - 14,089 - 14,089 Bonds - 302,873 - 302,873 - 429,062 - 429,062 Derivative Assets - 36 - 36 147 221 - 368 Derivative Liabilities (134) (146) - (280) (6) (181) - (187) Total (134) 305,209 - 305,075 141 443,191 - 443,332 Manulife Canadian Bond Index Fund (Manulife Asset Management) Short-Term Investments - 2,680 - 2,680 - 12,458 - 12,458 Bonds - 3,108,734 - 3,108,734 - 3,419,370 - 3,419,370 Total - 3,111,414 - 3,111,414 - 3,431,828 - 3,431,828 Manulife Asset Management Real Return Bond Fund Bonds - 71,221 - 71,221 - 72,554 - 72,554 Manulife Asset Management Diversified Fund Equities 213,247 - - 213,247 298,475 - - 298,475 Short-Term Investments - 95,843 - 95,843 - 78,765 - 78,765 Exchange-Traded Funds 36,791 - - 36,791 - - - - Mutual Funds - 181,485 - 181,485 - 227,837 - 227,837 Bonds - 172,922 - 172,922 - 194,970 - 194,970 Derivative Assets - - - - 27 27 - 54 Derivative Liabilities (198) (107) - (305) (3) (14) - (17) Total 249,840 450,143 - 699,983 298,499 501,585 - 800,084

103 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

As at December 31, 2018 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

Manulife Diversified Tri-Plan Fund (Manulife Asset Management) Equities 24,441 - - 24,441 53,994 - - 53,994 Short-Term Investments - 17,297 - 17,297 - 17,335 - 17,335 Exchange-Traded Funds 20,492 - - 20,492 - - - - Mutual Funds - 30,851 - 30,851 - 44,035 - 44,035 Bonds - 29,256 - 29,256 - 32,620 - 32,620 Derivative Liabilities (58) (12) - (70) - - - - Total 44,875 77,392 - 122,267 53,994 93,990 - 147,984 Manulife Money Market Fund (Manulife Asset Management) Short-Term Investments - 254,134 - 254,134 - 213,574 - 213,574 Bonds - 87,267 - 87,267 - 119,375 - 119,375 Total - 341,401 - 341,401 - 332,949 - 332,949 Manulife Canadian Pooled Real Estate Fund Short-Term Investments - 12,499 - 12,499 - 28,068 - 28,068 Manulife Canadian Mortgage Fund Short-Term Investments - 8,080 - 8,080 - 26,750 - 26,750 Mortgages - - 243,704 243,704 - - 203,792 203,792 Total - 8,080 243,704 251,784 - 26,750 203,792 230,542

Transfers between levels

There were no significant transfers between levels during the years ended December 31, 2018 and 2017.

Reconciliation of Level 3

Refer to Note 3h for a reconciliation of mortgage investments measured at fair value using unobservable inputs.

h) Real estate and mortgage investments

Changes in real estate investments

The table below is a reconciliation of real estate investments presented in the Statements of Financial Position of Manulife Canadian Pooled Real Estate Fund:

Tenant incentives, Realized and Balance - Additions - deferred rent change in Balance - beginning subsequent and leasing unrealized end of For the years ended December 31, of year Purchases expenditure costs gain (loss) Disposals year

Manulife Canadian Pooled Real Estate Fund 2018 1,920,085 77,632 23 30,219 49,129 (120,103) 1,956,985 2017 1,850,770 89,713 28 20,608 (12,111) (28,923) 1,920,085 The change in unrealized gain (loss) included in the Statements of Comprehensive Income for real estate investments held as at December 31, 2018 was ($66,365), and as at December 31, 2017 was ($11,669).

Future minimum lease rental receivables The future minimum lease rental receivables, excluding chargebacks to tenants, under non-cancellable operating leases on real estate investments in Manulife Canadian Pooled Real Estate Fund are as follows:

As at December 31, < 1 year 1-5 years > 5 years Total

Manulife Canadian Pooled Real Estate Fund 2018 97,209 264,979 126,066 488,254 2017 101,437 274,135 140,174 515,746

104 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

Fair value of real estate investments and fair value hierarchy Fair value of real estate investments in Manulife Canadian Pooled Real Estate Fund is determined predominantly by using the direct capitalization and discounted cash flow method (supported by market evidence and other valuation methods). The valuation techniques used include both observable and unobservable inputs. Inputs include existing and assumed tenancies, market data from recent comparable transactions, future economic outlook and market risk assumptions, overall capitalization rates, discount rates and terminal capitalization rates. All properties are valued by professional qualified independent appraisers on a quarterly basis. The valuations are performed in a manner consistent with generally accepted appraisal standards in Canada and are supported by market evidence. For each property, one full external appraisal is performed annually and, for the other three quarters, an external appraisal update is performed. All appraisal reports are reviewed and approved by Manulife Asset Management Private Markets (Canada) Corp., the portfolio manager of Manulife Canadian Pooled Real Estate Fund. All appraisals are based on the highest and best use of the property, which may differ from its current use. None of the properties have a current use different from the highest and best use. As at December 31, 2018 and 2017, real estate investments were classified as Level 3 within the fair value hierarchy. There were no transfers between levels during the years ended December 31, 2018 and 2017. The following were the significant unobservable inputs used to determine the fair value:

Range Range (weighted average) (weighted average) Unobservable input Description Fair value sensitivity December 31, 2018 December 31, 2017

Discount rate The discount rate is derived An increase (decrease) in the 5.75% - 9.50% (6.87%) 5.75% - 9.50% (6.92%) from market activity across discount rate would various property types and decrease (increase) the fair geographic regions and is value. the rate used to convert future payments into fair value over a specified hold period. Terminal capitalization rate The terminal capitalization An increase (decrease) in the 4.75% - 8.75% (6.08%) 4.75% - 8.75% (6.16%) rate is derived from market terminal capitalization rate activity across various would decrease (increase) property types and the fair value. geographic regions and is a reflection of the relationship between a property’s stabilized net operating income expectancy and its fair value at the end of a specified hold period. Overall capitalization rate The overall capitalization rate An increase (decrease) in the 3.75% - 8.50% (5.85%) 4.50% - 8.50% (5.96%) is derived from market overall capitalization rate activity across various would decrease (increase) property types and the fair value. geographic regions and is a reflection of the relationship between a property’s stabilized net operating income expectancy and its fair value.

Fair value of financing on real estate and fair value hierarchy Fair value of financing on real estate in Manulife Canadian Pooled Real Estate Fund is determined using valuation techniques that include both observable and unobservable inputs. The significant unobservable input used to determine fair value is credit spreads. As such, as at December 31, 2018 and 2017, financing on real estate was classified as Level 3 within the fair value hierarchy. There were no transfers between levels during the years ended December 31, 2018 and 2017.

105 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

The table below is a reconciliation of Level 3 fair value measurements: Difference between principal Balance - Assumed amount and Change in Balance - beginning upon amount Principal unrealized end of For the years ended December 31, of year Advances Discharges acquisition assumed payments gain (loss) year

Manulife Canadian Pooled Real Estate Fund 2018 81,763 65,000 (32,077) 19,802 - (3,172) (873) 130,443 2017 59,008 25,313 - - - (2,224) (334) 81,763 The aggregate carrying value of financing on real estate was $130,519 as at December 31, 2018, and $80,966 as at December 31, 2017.

Collateral pledged for financing on real estate The fair value of real estate investments pledged as collateral for financing on real estate in Manulife Canadian Pooled Real Estate Fund was $313,210 as at December 31, 2018 and $209,890 as at December 31, 2017.

Fair value of mortgage investments and fair value hierarchy

Fair value of mortgage investments in Manulife Canadian Mortgage Fund is determined using valuation techniques that include both observable and unobservable inputs. The significant unobservable input used to determine fair value is credit spreads. As such, as at December 31, 2018 and 2017, mortgage investments were classified as Level 3 within the fair value hierarchy.

The table below is a reconciliation of Level 3 fair value measurements:

For the years ended December 31, Financial assets (liabilities) Balance - Change in Balance - beginning Net transfers Net realized unrealized end of of year Purchases Sales in (out) gain (loss) gain (loss) year Manulife Canadian Mortgage Fund 2018 Mortgages 203,792 76,150 (34,635) - - (1,603) 243,704 2017 Mortgages 189,729 54,571 (37,365) - - (3,143) 203,792 The total change in unrealized loss on Level 3 instruments continued to be held as at December 31, 2018 was $1,603 ($3,143 as at December 31, 2017).

As at December 31, 2018 and 2017, should current credit spreads, a significant unobservable input, have increased or decreased by 0.25%, with all other variables remaining constant, the fair value of mortgage investments would have decreased or increased, respectively, by $2,050 as at December 31, 2018, and $1,490 as at December 31, 2017.

4. UNITS OF THE FUNDS

Units issued and outstanding represent the capital of each Fund. Each Fund is authorized to issue an unlimited number of units with no par value, which are redeemable at the option of the contractholder at their current NAVPU. Each Fund has a contractual obligation to repurchase or redeem its units for cash or another financial assets and as such, the outstanding units are classified as a financial liability. The Funds have no restrictions or specific capital requirements other than minimum subscription requirements. The Funds endeavour to invest the proceeds received from subscriptions in appropriate investments in conjunction with their investment objectives while remaining in compliance with regulatory requirements. The Funds maintain sufficient liquidity to meet redemptions, such liquidity being augmented by short-term borrowings or disposal of investments where necessary. The following table shows changes in each Fund’s units.

For the years ended December 31, (’000)

2018 2017 Units, Units, beginning Units Units Units, end beginning Units Units Units, end of year issued redeemed of year of year issued redeemed of year Manulife Asset Management Canadian Equity Fund Group pension units 283 40 (67) 256 322 47 (86) 283 Manulife Canadian Equity Index Fund (Manulife Asset Management) Group pension units 10,611 2,027 (3,628) 9,010 11,883 2,978 (4,250) 10,611

106 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

For the years ended December 31, (’000)

2018 2017 Units, Units, beginning Units Units Units, end beginning Units Units Units, end of year issued redeemed of year of year issued redeemed of year Manulife Capped Canadian Equity Fund (Manulife Asset Management) Group pension units 5,956 700 (2,903) 3,753 6,789 322 (1,155) 5,956 Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) Group pension units 7,576 1,005 (1,734) 6,847 8,850 735 (2,009) 7,576 Manulife Asset Management Canadian Small-Cap Equity Fund Group pension units 2,254 490 (459) 2,285 2,349 468 (563) 2,254 Manulife Equity Tri-Plan Fund (Manulife Asset Management) Group pension units 161 8 (41) 128 182 10 (31) 161 Manulife US Equity Index Fund (Manulife Asset Management) Group pension units 13,949 2,992 (4,225) 12,716 15,104 4,036 (5,191) 13,949 Manulife SLI US Equity Non-Registered Fund Group pension units 255 18 (23) 250 273 35 (53) 255 Manulife Asset Management Bond Fund Group pension units 1,310 228 (555) 983 1,397 261 (348) 1,310 Manulife Asset Management Long Term Bond Fund Group pension units 17,421 1,511 (7,062) 11,870 20,373 2,896 (5,848) 17,421 Manulife Canadian Bond Index Fund (Manulife Asset Management) Group pension units 123,280 27,059 (40,118) 110,221 137,642 33,672 (48,034) 123,280 Manulife Asset Management Real Return Bond Fund Group pension units 3,381 441 (502) 3,320 3,603 466 (688) 3,381 Manulife Asset Management Diversified Fund Group pension units 6,730 998 (1,714) 6,014 7,486 1,057 (1,813) 6,730 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) Group pension units 853 46 (176) 723 1,035 54 (236) 853 Manulife Money Market Fund (Manulife Asset Management) Group pension units 2,427 1,811 (1,794) 2,444 3,541 1,375 (2,489) 2,427 Manulife Canadian Pooled Real Estate Fund Group pension units 8,502 1,486 (1,692) 8,296 9,603 1,229 (2,330) 8,502 Manulife Canadian Mortgage Fund Group pension units 444 139 (115) 468 379 183 (118) 444

5. TAXATION

The Funds are deemed to be trusts under the provisions of the Income Tax Act (Canada) (the ЉActЉ). The Funds’ income and net capital gains and losses are deemed to be allocated to the beneficiaries so that the Funds will not be liable for tax under Part I of the Act. Accordingly, the Funds do not record income tax provisions. Any tax benefit of non-capital loss carry-forwards, where applicable, has not been reflected as a deferred income tax asset in the Statements of Financial Position. Starting in 2018, non-capital losses may be used to reduce future taxable amounts, and can be carried forward for up to twenty years. The following table summarizes non-capital tax loss carry-forwards, if any.

As at December 31, 2018 2017

Non capital Expiry Non capital Expiry losses date losses date

Manulife Canadian Mortgage Fund 1 2038 N/A N/A

6. RELATED PARTY TRANSACTIONS

The Funds may be invested in securities of MFC or other related parties of MFC. Details of such investments, if any, are included in the Schedule of Investment Portfolio. The Funds’ investments in underlying funds managed by MAML, if any, are related party investments. All investment transactions relating to these underlying funds are at the NAVPU of each underlying fund. The Funds receive distribution income from these underlying funds based on the Funds’ percentage ownership of each underlying fund. Details of such investments, if any, are included in the Schedule of Investment Portfolio.

107 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

The related parties’ investments in the Funds are as follows:

As at December 31, 2018 2017

%ofNAV %ofNAV Fair value of the Fund Fair value of the Fund

Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) 157,795 81.0 192,480 81.4 Manulife Asset Management Canadian Small-Cap Equity Fund 1,859 1.2 2,014 1.1 Manulife US Equity Index Fund (Manulife Asset Management) 137,075 33.7 170,541 39.7 Manulife Canadian Bond Index Fund (Manulife Asset Management) 153,420 4.9 153,126 4.4 Manulife Money Market Fund (Manulife Asset Management) 993 0.3 1,086 0.3 Manulife Canadian Pooled Real Estate Fund 38,751 2.1 33,943 2.0

Management fees The Manager is responsible for the overall operations of the Funds and provides administrative services to the Funds including, but not limited to, reporting the NAV of the Funds and arranging for or providing all services relating to issuing and redeeming units of the Funds.

The Manager charges management fees outside of the Funds. The management fees may be charged directly to the plan sponsor, or may be charged by the client administration system. The management fees are included in redemption of units in the Statements of Changes in Net Assets Attributable to Contractholders.

Fixed administration fees

The Manager pays the operating expenses of the Funds in exchange for the payment of a fixed rate administration fee by the Funds to the Manager, if applicable. The operating expenses include, but are not limited to, accounting and bookkeeping fees, audit and legal fees and expenses, safekeeping and custodial fees, administration costs, financial reporting costs, and other types of communications that the Manager is required to prepare for a Fund so that the Fund complies with all applicable laws.

7. OFFSETTING OF FINANCIAL ASSETS AND LIABILITIES

As at December 31, 2018 and 2017, the Funds, where applicable, were subject to International Swaps and Derivatives Association master netting arrangements with their derivative counterparties. All of the derivative assets and liabilities of the Funds, where applicable, are held with these counterparties and the margin balance maintained by the Funds is for the purpose of providing collateral on derivative positions.

Each party has the option to settle all open contracts on a net basis in the event of default of the other party, such as failure to pay or deliver; misrepresentation or breach of agreement; or bankruptcy.

The following table presents the Funds’ financial assets and liabilities subject to offsetting, enforceable master netting arrangements and similar agreements. The table is presented by type of financial instrument and shows the net impact on the Fund’s Statements of Financial Position if all set-off rights were exercised.

As at December 31, 2018 2017 Amounts eligible for offset Amounts eligible for offset Gross Gross assets/ Financial Collateral assets/ Financial Collateral (liabilities) instruments received/(paid) Net (liabilities) instruments received/(paid) Net

Manulife Equity Tri-Plan Fund (Manulife Asset Management) Derivative assets Forward foreign currency - - - - 146 - - 146 Total - - - - 146 - - 146 Derivative liabilities Forward foreign currency (387) - - (387) - - - - Total (387) - - (387) - - - - Manulife Asset Management Bond Fund Derivative assets Forward foreign currency 107 (107) - - 245 149 - 394 Total 107 (107) - - 245 149 - 394 Derivative liabilities Forward foreign currency (560) 107 - (453) (149) (149) - (298) Total (560) 107 - (453) (149) (149) - (298)

108 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

Manulife Asset Management Long Term Bond Fund Derivative assets Forward foreign currency 36 (36) - - 221 181 - 402 Total 36 (36) - - 221 181 - 402 Derivative liabilities Forward foreign currency (146) 36 - (110) (181) (181) - (362) Total (146) 36 - (110) (181) (181) - (362) Manulife Asset Management Diversified Fund Derivative assets Forward foreign currency - - - - 27 14 - 41 Total - - - - 27 14 - 41 Derivative liabilities Forward foreign currency (107) - - (107) (14) (14) - (28) Total (107) - - (107) (14) (14) - (28) Manulife Diversified Tri-Plan Fund (Manulife Asset Management) Derivative liabilities Forward foreign currency (12) - - (12) - - - - Total (12) - - (12) - - - -

8. INVESTMENTS IN ASSOCIATES, SUBSIDIARIES AND STRUCTURED ENTITIES

The Funds consider all of their investments in underlying funds to be investments in unconsolidated structured entities.

The purpose of the underlying fund(s) is to invest funds solely for returns from capital appreciation, investment income, or both.

The underlying funds finance their operations by issuing redeemable units which are puttable at the holder’s option and entitles the holder to a proportional stake in the respective underlying fund’s net assets. The Funds hold redeemable units in each of their underlying funds. The carrying amount of the Funds’ interests in the underlying fund(s) is recognized in investments, at fair value in the Statements of Financial Position. The carrying amount of the Funds’ interests in the underlying fund(s) is equal to the maximum exposure to loss. The change in fair value of each underlying fund is included in change in unrealized appreciation (depreciation) in the value of investments in the Statements of Comprehensive Income.

The Funds’ investments in underlying funds are subject to the terms and conditions of the respective underlying funds’ offering documents and are susceptible to market price risk arising from uncertainties about future values of those underlying funds. The Funds have the right to request redemption of its investment in an underlying fund on a daily basis. Once the Funds have disposed of units of an underlying fund, the Funds cease to be exposed to any risk from that underlying fund. Certain Funds may invest in ETFs. The Manager has determined that ETFs are unconsolidated structured entities. An ETF is an investment fund traded on a stock exchange. An ETF holds assets such as stocks, commodities, or bonds, and trades close to its NAV over the course of the trading day. Most ETFs track an index, such as a stock index or bond index. ETFs finance their operations by issuing redeemable units which are puttable at the holders’ option and entitles the holder to a proportionate stake in the ETF’s assets. The fair value of the ETFs represents the maximum exposure to losses at each year end. Certain Funds may invest in mortgage-related and other asset-backed securities. These securities include mortgage pass-through securities, collateralized mortgage obligations, commercial mortgage-backed securities, asset-backed securities, collateralized debt obligations and other securities that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property or other types of loans. The Manager has determined that issuers of such securities are also unconsolidated structured entities. The debt and equity securities issued by these issuers may include tranches with varying levels of subordination. These securities may provide a monthly payment which consists of both interest and principal payments. Mortgage-related securities are created from pools of residential or commercial mortgage loans, including mortgage loans made by savings and loan institutions, mortgage bankers, commercial banks and others. Asset-backed securities are created from many types of assets, including auto loans, credit card receivables, home equity loans, and student loans. The fair value of mortgage-related and other asset-backed securities are listed in the Schedule of Investment Portfolio of each Fund, as applicable. This amount represents the maximum exposure to losses at each year end.

109 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

All investments in underlying funds that are structured entities are disclosed in the table below.

As at December 31, 2018 2017 Fair value of Fair value of Net assets of investment in Net assets of investment in Underlying fund name underlying fund underlying fund underlying fund underlying fund

Manulife Asset Management Diversified Fund iShares MSCI EAFE ETF 84,873,817 13,945 105,977,710 13,514 iShares S&P/TSX 60 Index ETF 8,773,400 14,756 13,906,856 24,102 Manulife Asset Management International Equity II Pooled Fund - - 191,974 122,223 Manulife Asset Management US Large Cap Core Pooled Fund 281,099 80,200 382,192 105,614 Manulife International Equity (83) Fund UT 162,853 101,285 - - SPDR S&P 500 ETF Trust 327,936,775 8,090 340,440,095 12,639 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) iShares MSCI EAFE ETF 84,873,817 2,513 105,977,710 943 iShares S&P/TSX 60 Index ETF 8,773,400 15,009 13,906,856 18,176 Manulife Asset Management International Equity II Pooled Fund - - 191,974 24,697 Manulife Asset Management US Large Cap Core Pooled Fund 281,099 12,553 382,192 19,339 Manulife International Equity (83) Fund UT 162,853 18,298 - - SPDR S&P 500 ETF Trust 327,936,775 2,970 340,440,095 2,274

9. SECURITIES LENDING

Collateral held is in the form of securities of or guaranteed by the Government of Canada, Canadian provincial and municipal governments, or by the United States government, or by other governments with appropriate credit ratings, or by a Canadian financial institution, but may include commercial paper with an approved credit rating and/or convertible securities. The outstanding fair value of the securities on loan and the collateral received by the Funds is as follows:

Securities Collateral Collateral of As at December 31, on loan received securities loaned (%)

Manulife Asset Management Canadian Equity Fund 2018 15,604 16,384 105 2017 37,140 38,997 105 Manulife Canadian Equity Index Fund (Manulife Asset Management) 2018 35,659 37,442 105 2017 50,735 53,272 105 Manulife Capped Canadian Equity Fund (Manulife Asset Management) 2018 4,855 5,098 105 2017 7,501 7,876 105 Manulife Canadian Equity Capped Index Fund (Manulife Asset Management) 2018 16,705 17,540 105 2017 20,775 21,814 105 Manulife Asset Management Canadian Small-Cap Equity Fund 2018 18,916 19,862 105 2017 31,882 33,476 105 Manulife Equity Tri-Plan Fund (Manulife Asset Management) 2018 1,586 1,665 105 2017 2,304 2,419 105 Manulife US Equity Index Fund (Manulife Asset Management) 2018 23,178 24,337 105 2017 27,266 28,629 105 Manulife SLI US Equity Non-Registered Fund 2018 301 316 105 2017 318 334 105 Manulife Asset Management Bond Fund 2018 66,211 69,521 105 2017 61,051 64,104 105 Manulife Asset Management Long Term Bond Fund 2018 45,857 48,150 105

110 POOLED & INDEXED FUNDS ANNUAL REPORT

NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017 ($ in thousands except for per unit amounts)

Securities Collateral Collateral of As at December 31, on loan received securities loaned (%)

2017 25,872 27,166 105 Manulife Canadian Bond Index Fund (Manulife Asset Management) 2018 874,092 917,797 105 2017 732,566 769,195 105 Manulife Asset Management Real Return Bond Fund 2018 8,164 8,572 105 2017 550 578 105 Manulife Asset Management Diversified Fund 2018 151,123 158,679 105 2017 140,598 147,628 105 Manulife Diversified Tri-Plan Fund (Manulife Asset Management) 2018 27,551 28,928 105 2017 38,942 40,889 105 Manulife Money Market Fund (Manulife Asset Management) 2017 20,775 21,814 105

10. COMMITMENTS

In the normal course of business, various contractual commitments are outstanding which are not reflected in the annual financial statements. Outstanding contractual commitments were as follows:

As at December 31, < 1 year 1-5 years Total Manulife Canadian Pooled Real Estate Fund Capital commitments 2018 687 - 687 2017 10,231 6,791 17,022 Other commitments 2018 20,290 5,027 25,317 2017 12,208 - 12,208 Manulife Canadian Mortgage Fund Commitments to extend credit 2017 1,450 - 1,450

11. CREDIT FACILITY

Manulife Canadian Pooled Real Estate Fund may borrow through an unsecured credit facility with a major Canadian chartered bank. On March 13, 2017, Manulife Canadian Pooled Real Estate Fund entered into a senior unsecured revolving credit facility that allows it to borrow, at its option and subject to it meeting certain terms as outlined in the credit agreement, up to a maximum of $150,000 with an accordion option up to $50,000. Effective January 5, 2018 the borrowing limit was increased from $150,000 to $300,000 with the accordion option removed. The credit facility is repayable on demand. The minimum and maximum amount borrowed during the year ended December 31, 2018 was $7,000 and $175,000, respectively ($5,000 and $40,000, respectively for the year ended December 31, 2017). As at December 31, 2018, the amount of the loan facility outstanding was $7,000 ($135,000 as at December 31, 2017) which has an interest rate of 4.15% (3.40% as at December 31, 2017). In addition, Manulife Canadian Pooled Real Estate Fund is required to pay standby fees of 0.14% per annum on the average daily unutilized amount of the loan facility, payable monthly. Loan interest payable is accounted for on an accrual basis.

12. COMPARATIVE BALANCES

The comparative financial statements have been reclassified from the statements previously presented in order to conform to the presentation of the current year financial statements. Certain balances have been combined or disaggregated in order to conform to the current year’s classification of financial statement items.

111 MANULIFE CAN BE FOUND ON THE INTERNET AT WWW.MANULIFE.COM.

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04/19