Ex-Div Reminder for Manulife Financial's Class 1 Shares Series 1

On 2/24/14, Manulife Financial Corp.'s Non-cumulative Rate Reset Class 1 Shares Series 1 (TSX: MFC-PRE.TO) will trade ex-dividend, for its quarterly dividend of $0.35, payable on 3/19/14. As a percentage of MFC.PRE's recent share price of $25.63, this dividend works out to approximately 1.37%, so look for shares of MFC.PRE to trade 1.37% lower — all else being equal — when MFC.PRE shares open for trading on 2/24/14. On an annualized basis, the current yield is approximately 5.47%.

As of last close, MFC.PRE was trading at a 2.44% premium to its liquidation preference amount. It should be noted that the preferred shares are convertible, with a conversion ratio of The holders of Series 1 Preferred Shares will have the right, at their option, to convert their shares into Non-cumulative Floating Rate Class 1 Shares Series 2 (the Series 2 Preferred Shares) of MFC, subject to certain conditions, on September 19, 2014 and on September 19 every five years thereafter. The holders of Series 2 Preferred Shares will be entitled to receive floating rate non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the 19th day of March, June, September and December in each year (the initial quarterly dividend period and each subsequent quarterly dividend period is referred to as a Quarterly Floating Rate Period), in the amount per share determined by multiplying the applicable Floating Quarterly Dividend Rate (as defined herein) by $25.00. The Floating Quarterly Dividend Rate will be equal to the sum of the T-Bill Rate (as defined herein) plus 3.23% (calculated on the basis of the actual number of days elapsed in the applicable Quarterly Floating Rate Period divided by 365) determined on the 30th day prior to the first day of the applicable Quarterly Floating Rate Period. See Details of the Offering.. Investors should keep in mind that the shares are not cumulative, meaning that in the event of a missed payment, the company does not have to pay the balance of missed dividends to preferred shareholders before resuming a common dividend. The chart below shows the one year performance of MFC.PRE shares, versus MFC:

Performance Comparison Chart

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