Agenda

Global and local market in 2008

Manulife Progressive Fund

MAFPF1 Performance Update

Mark Cañizares
[MAFPF1] performance in 2008
Head of Equities
Manulife Vietnam Fund Management Co. Ltd.

Equity market outlook for 2009

27 March 2009

2 27 March 2009

Global Markets in Crisis in 2008

Global economic weakness concerns by

2H08

Oil falls 73% from its peak in June/08

Wheat prices collapse 50% from March/08 peak
Global and Local markets in 2008
CRB Index drops 52% from June/08 high

Corporate events in 2008

Lehman Brothers files for Bankruptcy

US government infuses AIG with USD 85 Billion

Merrill Lynch is sold to Bank of America

Citigroup is bailed out by the US government

3 27 March 2009 4 27 March 2009

1
 General Weakness Globally in 2008 VN Market in 2008

VN Index dropped 66%

77% down from the peak in March 16/07

Market capitalization fell to USD 10 Bil

Market cap to GDP at 10%, Asia’s smallest

Liquidity conditions worsened

Daily Value Traded dropped to USD 25 Mil by 4Q
2008 Performance in USD (USD 65 Mil in 1Q08)
MSCI Asia Ex-Japan : -53.31%
US S&P 500 : -36.91%
UK FTSE 100 : -49.43%
Average daily value turnover CY08: USD 39 Mil
MSCI Asia Ex-Japan: -54%
Japan Nikkei 225 : -27.53%
(CY07: 61 Mil USD)

5 27 March 2009 6 27 March 2009

Daily equity turnover declined

VN Index: Key Events in 2008 indicating lack of interest
1000 SBV begins
raising rates Average Daily Stock Turnover in 2008*
900 Inflation 160
Inflation Peaks at 28%
800 rises to 140
15.7%
700 Base 120
Base rate rate at
600 peaks at 14% SBV starts 8.5%,
100
to cut rates 450bps
500 cut
80
400
60
Trading Trading
300 limits limits
frozen restored 40
200 +/-1% Trading
limits
20
100 widened
+/-3%
0
0 Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
4 -Jul
18 -Jul

7-N ov
2 1-N ov
6-Jun
20-Jun
4 -Ja n
18-Ja n

1-Au g
15-Au g
29-Au g

10 -O ct
24 -O ct
14-M ar
28-M ar
11-A pr
25-A pr
9-M a y
23-M a y

5-De c
19-De c
1-Feb
15-Feb
29-Feb

12-S ep
26-S ep

Source: Bloomberg
* HoSE and HaSTC, USD Millions

Source: Bloomberg, MVFM

7 27 March 2009 8 27 March 2009

2
 MAFPF1 Performance Summary
MAFPF1 NAV movement vs. VN Index
1.2

0.8

0.6

Manulife Progressive Fund [MAFPF1] 0.4

VNI
MA F
0.2
2008 Performance 0

10/5/2007

11/5/2007

12/5/2007

1/5/2008

2/5/2008

3/5/2008

4/5/2008

5/5/2008

6/5/2008

7/5/2008

8/5/2008

9/5/2008

10/5/2008

11/5/2008

12/5/2008

1/5/2009

2/5/2009
Source: Bloomberg, MVFM data

VN Index MAFPF1 Diff (% pts)

Full Year 2008** -66% -53% 13%
1-mo* 5% 8% 3%
3-mo* -13% -8% 5%
6-mo* -46% -36% 10%
S o urce: M V FM , B lo o mb erg * NA V as o f 19 -M ar-0 9 **N A V C hang e fro m 2 8 /Dec/0 8 vs 2 /Jan/0 9

9 27 March 2009 10 27 March 2009

MAFPF1 Sector Positioning in 2008 Top 5 Holdings in 2008

35
Top 5 Holdings Performance in 2008
30
Rev Growth NI Growth ROE P/E Price Perf
25 MFC
VNM 23.5% 27.6% 27.85% 12 -48%
20 VN Index
15
VSH 30.7% 44.4% 17.81% 10 -36%
10 DHG 19.2% 6.9% 19.36% 15 -48%
5 DPM 71.4% 3.7% 30.32% 10 -51%
0 PVD 35.8% 62.1% 46.30% 12 -29%
C a s h/F ix e d Inte r es t
C on s u m e r G o o ds

T e le c o m m u n ic a tio ns
H e a lth C a re

O il & G as
F in an c ia ls

In d u s tr ia ls

U tilities

B a s ic M ate r ia ls

T e c h no lo gy

VN Index 30.0% 8.0% 16% 7 -66%

S o urce: M V FM Estimates; B lo o mb erg , Y ear End Pos itio ns as o f December 3 1/2 0 08

Key Qualities:

Earnings defensive
Key Portfolio Attributes
Source: Bloomberg, MVFM data as of Dec 31/2008

Majority of earnings stream from core businesses

Defensive
Stable growth profile

Minimal exposure to financials

11 27 March 2009 12 27 March 2009

3
 Key sectors/Thematics in 2008
Oil, steel

Invested in the first half to take advantage of
high oil prices and reduced exposure going into
4Q as price corrections set in

Bonds Equity Market Outlook

5 month holding period for a VGB (sold in 4Q) to
take advantage of abnormal yields. (Net gain
+30%)

Defensives and Non-Cyclicals

Persistent theme throughout 2008 given global
and local macro concerns

13 27 March 2009 14 27 March 2009

Economy: Challenging but still growing Corporate Earnings: Cleaner

Key Macroeconomic Data
2005 2006 2007 2008A 2009F* Corporate Earnings Outlook
GDP 8.4 8.2 8.5 6.23 4.75 2008 2009 2010 2011
Fixed investment 9.7 9.9 23 22.2 9.4 Earnings growth -50% to +25% -30% to +10% 0% to +10% +10%
Exports - Goods 22.5 22.1 22.7 29.5 -5.2 Core Business % of Earnings <50% >75% >75% >75%
Imports - Goods 15.7 33.4 32.6 28.3 -7.9
Agri-Fertilizers Agri-Fertilizers Agri-Fertilizers
Industrial production 25.5 16 16.7 14.6 14.2 Key Sectors Utilities Utilities Utilities Utilities
Consumer prices (yoy) 8.3 6.6 12.6 19.8 9.6 with Visible earnings Consumer-Non Cycl Consumer-Non Cycl Consumer-Non Cycl Consumer-Non Cycl
expansion Exports - Seafood Exports - Seafood Exports - Seafood Exports - Seafood
Pharmaceuticals Pharmaceuticals Pharmaceuticals Pharmaceuticals
Current account (% GDP) 0.4 0.5 10 -13.5 -8.5
Banks Banks
Budget balance (% GDP) -4.9 -5 -5 -4.4 -6.8 Properties Properties
Telecoms* Telecoms* Telecoms*
VND/USD 15,866 16,006 16,096 16,977 18,000 Oil & Gas Services Oil & Gas Services
So urce: M V FM Est imat es; A g greg at ed Lo cal B roker Es timat es *Current ly und er rep resent ed

Short-term lending rate (%) 7.8 7.8 8.3 17.0 7.5

5-year interest rate (%)* 8.8 8.3 8.7 9.0 7.5
* Fo recas ts ag g reg ated fro m GS O, EIU, A DB , IM F, W o rld B ank, HS B C, B M I, CLSA as o f M arch 2 0 0 9

15 27 March 2009 16 27 March 2009

4

Valuations: Pointing to an upside

At least a 15% DCF upside from current
levels

Despite a Cost of Equity assumption of 18%

P/E multiples have collapsed to 5x-10x

Trailing VN Index PE is 9.8x

Forward 2009 PE: 11.5x*, at par with most SEA
markets
*Assuming 15% earnings decline
17 27 March 2009
MAFPF1: Still well-positioned to
take advantage of the recovery

Equity markets will reflect strong macro
fundamentals

Markets will continue to be a leading economic
indicator

Quality of corporate earnings will increase as
companies go back to core businesses

Valuations to expand once confidence on
corporate returns
19 27 March 2009
MAFPF1: Still positioned to take
advantage of the recovery

Economy to remain robust

One of the four countries in Asia to have positive
GDP growth in 2009*

Economic growth underpinned by Industrialization

WTO membership to continue increasing
integration with global economy

Demographics remain very favorable

Domestic consumption remains robust
*Economic Intelligence Unit,
February report
18 27 March 2009
MAFPF1: Still well-positioned to
take advantage of the recovery

MAFPF1 continues to have high exposure to
the equity market

Key tilts remain in the sectors where earnings is
of high quality, visible, and sustainable

Robust risk control systems ensure that
MAFPF1 doesn’t take unnecessary risks for
investors
20 27 March 2009
5
 MAFPF1 Month-to-date return

Manulife Progressive
Fund

Winner of Asia Asset

Management 2008
'Best of the Best'
award for

Most Innovative
Product (Vietnam)

Source: Bloomberg
Attribution of ex-cash returns from the period Feb 27/09 – March 25/09

21 27 March 2009 22 27 March 2009

DISCLAIMER Too much cash in a rallying market

This document does not constitute or form part of an offer to sell or an

invitation to purchase or subscribe for shares or other securities, nor may it
or any part of it, nor the fact of its distribution, form the basis of, or be
relied upon in connection with, any contract relating thereto.

The information contained herein is for background purposes only, has not
been verified and is subject to amendment, revision and updating. No
representation or warranty, express or implied, is made as to the fairness,
accuracy or completeness of the information contained herein and no
reliance should be placed upon it.

Investment involves risk. Past performance is no guide to future

performance. Please refer to the relevant MAFPF1 Prospectus for further
details"
Source: Screen grab from http://www.hsc.com.vn, Mar/23/2009
The performance data contained within this material represents past
performance, which does not guarantee future results. The return and
principal value of an investment will fluctuate, so that shares, when
• Inability to buy back is persistent in VN
redeemed, may be worth more or less than the original cost. Due to market
volatility, the fund’s current performance may be higher or lower and is – Not only in the small caps but even in blue chips
subject to substantial changes

23 27 March 2009 24 27 March 2009

6
 Comparative 2008 NAV performance
amongst equity funds MAFPF1 2008 Portfolio Holdings

Fund Name (Reuters Code) 2008 NAV performance (%) Positions as of December 31, 2008
Vietnam Emerging Equity Fund (LCFR03) -70.7 Ticker Name Ticker Name
PXP Vietnam Fund (LCFR03) -70.5 ACB Asia Commercial Bank IMP Imexpharm Pharmaceutical Jsc
Vietnam Enterprise Inv'ts Ltd (LCFR03) -61.9 HDC Ba Ria - Vung Tau House Deve KDC Kinhdo Corp
Vietnam Growth Fund (LCFR03) -61.4
ABT Bentre Aqua Product Import A PVD Petrovietnam Drilling And We
JF Vietnam Opportunities Fund -61.3
BMC Binh Dinh Minerals Jsc DPM Petrovietnam Fert & Chemical
SC5 Construction Jsc No 5 PPC Pha Lai Thermal Power Jsc
Vietnam Holding (VNHq.L) -60.6
FPT Fpt Corp REE Refrigeration Electrical Eng
Blackhorse Enhanced Vietnam Inc -59.9
ACL Cuulong Fish Jsc STB Saigon Thuong Tin Commercial
Vietnam Dragon Fund (LCFR03) -59.8
DPR Dong Phu Rubber Jsc SZL Sonadezi Long Thanh Sharehol
Vietnam Lotus Fund (LCFR03) -59.5
PVC Drilling Mud Jsc ITA Tan Tao Investment Industry
DWS Vietnam Fund (LCFR03) -53.8
GMD Gemadept Corp TDH Thu Duc Housing Development
Indochina Capital Vietnam Holdings (IDCH.L) -52.8 DHG Dhg Pharmaceutical Jsc TAC Tuong An Vegetable Oil Jsc
Manulife Progressive Fund (MAFPF1.HM)* -52.0 CII Hcm City Infrastructure Inv VCB Vietcombank
VinaCapital Vietnam Opportunity Fund Ltd (VOF.L) -46.7 HBC Hoa Binh Construction And Re VNM Viet Nam Dairy Products Jsc
Vietnam Emerging Market Fund -44.2 HRC Hoa Binh Rubber Jsc VSH Vinh Son - Song Hinh Hydropo
Vietnam Azalea Fund -41.5 HPG Hoa Phat Group Jsc
Vietnam Equity Holding (/3MS.DE) -27.4 Source: MVFM

*MAFPF1 data (Jan/4/08 vs Jan9/09 official NAVPS)

Source: Bloomberg; LCF Rothschild Emerging Market Funds Research Weekly Parity Sheet, Mar16/09

25 27 March 2009 26 27 March 2009