With inflation raging, investors need creative tools to protect their portfolios. Look no further than Manulife Financial Corporation (MFC), a diversified financial services giant doubling as an inflation hedge. MFC provides far more than mundane banking or insurance.

 

This $45 billion titan operates an extensive asset management arm spanning public and private markets. That exposes investors to assets actually benefiting from inflation. 

 

Stealth Returns

 

MFC's 14.85% return year-to-date crushes the S&P/TSX Composite index's measly 3.25% gain.

 

The contrast is even starker over the past year, with MFC skyrocketing 34.91% while the index lumbered to an 8.25% return. Zoom out further; MFC's outperformance is undeniable.

 

The past three years have seen MFC surge 42.99%, dwarfing the index's 7.45%. And over the past five years, MFC has delivered a staggering 84.81% return, more than doubling the index's 33.25% gain. Suffice it to say that MFC offers returns that are far beyond boring old benchmarks. 

 

This company knows how to generate alpha.

 

 

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Great Diversification Play

MFC provides far more than just banking. The company operates extensive insurance, wealth management, and asset management arms. That diverse blend of businesses smooths out volatility. 

 

MFC boasts a global footprint spanning Canada, the U.S., and Asia. In the U.S., it operates as John Hancock, a trusted household name. With diversified operations across continents, MFC avoids concentration risk.

 

For investors seeking alternative asset exposure without committing solely to a Brookfield (BAM) or Blackstone (BX), MFC offers a compelling diversified option.

 

Why bet on just private equity or real estate when you can get a piece of them all?

 

Wall Street is Waking Up

While overlooked by many US investors, MFC is gaining Wall Street's attention.

Its steady share growth shows prudent alternative investments in high-demand markets.

 

Though smaller than titans like Blackrock and Brookfield, MFC makes an excellent medium-cap portfolio addition. 

 

Its accessibility lets everyday investors tap into alternatives previously restricted to institutions and the ultra-rich.

 

The Fundamentals Pack a Punch:

Beyond its stealthy returns, MFC boasts an income investor's dream dividend yield of 4.64%. That's a welcome inflation offset. And at a PE ratio of just 14.85, MFC offers growth at a value price. 

 

This isn't some overvalued tech darling. 

 

Operationally, MFC continues humming along. Trailing twelve-month revenue hit $27.47 billion, providing plenty of fuel for future growth.

 

And net income reached $4.26 billion, showcasing profitability. Ample liquidity positions MFC to capitalize on potential opportunities. Its total cash position stands tall at $27.13 billion.

 

A reasonable debt-to-equity ratio of 48.44% provides additional flexibility. In short, MFC provides an alluring blend of income, growth, and inflation protection at a reasonable valuation. 

An ideal recipe for today's prickly environment. 

 

At around $25 per share, MFC offers retail investors access to institutional-grade alternative asset exposure. MFC's multi-year track record of steady share price appreciation shows its managers know how to invest skillfully across asset classes.

 

It's important to note that owning MFC stock differs from directly holding alternatives like real estate or infrastructure because you invest in the investor rather than the asset itself. However, its impressive performance suggests MFC's managers allocate capital effectively to profit from inflationary trends.

 

With an attractive dividend yield, reasonable valuation, and diversified business mix, MFC belongs in most long-term investor portfolios. This unheralded giant offers an all-weather blend of income, growth, and inflation protection.

 

Stocks.News does not own positions in companies mentioned.