(d) Investmentexpenses The following table presents total investment expenses. For the years ended December 31, 2022 2021 Related to invested assets $ 718 $ 633 Related to segregated, mutual and other funds 1,145 1,347 Total investment expenses $ 1,863 $ 1,980 (e) Investmentproperties The following table presents the rental income and direct operating expenses of investment properties. For the years ended December 31, 2022 2021 Rental income from investment properties $ 825 $ 837 Direct operating expenses of rental investment properties (458) (464) Total $ 367 $ 373 (f) Mortgagesecuritization The Company securitizes certain insured and uninsured fixed and variable rate residential mortgages and Home Equity Lines of Credit (“HELOC”) through creation of mortgage-backed securities under the Canadian Mortgage Bond Program (“CMB”), and the HELOC securitization program. Benefits received from the securitization include interest spread between the asset and associated liability. There is no credit exposure from securitized mortgages under the Canada Mortgage and Housing Corporation (“CMHC”) sponsored CMB securitization program as they are insured by CMHC and other third-party insurance programs against borrowers’ default. Mortgages securitized in the Platinum Canadian Mortgage Trust II (“PCMT II”) program are uninsured. Cash flows received from the underlying securitized assets/mortgages are used to settle the related secured borrowing liability. For CMB transactions, receipts of principal are deposited into a trust account for settlement of the liability at time of maturity. These transferred assets and related cash flows cannot be transferred or used for other purposes. For the HELOC transactions, investors are entitled to periodic interest payments, and the remaining cash receipts of principal are allocated to the Company (the “Seller”) during the revolving period of the deal and are accumulated for settlement during an accumulation period or repaid to the investor monthly during a reduction period, based on the terms of the note. Securitized assets and secured borrowing liabilities As at December 31, 2022 Securitized assets Securitized Restricted cash and Secured borrowing (2) Securitization program mortgages short-term securities Total liabilities (1) HELOC securitization $ 2,880 $ 44 $2,924 $ 2,750 CMB securitization 2,318 – 2,318 2,273 Total $ 5,198 $ 44 $5,242 $ 5,023 As at December 31, 2021 Securitized assets Securitized Restricted cash and Secured borrowing (2) Securitization program mortgages short-term securities Total liabilities (1) HELOC securitization $ 2,618 $ 1 $ 2,619 $ 2,500 CMB securitization 2,075 – 2,075 2,098 Total $ 4,693 $ 1 $ 4,694 $ 4,598 (1) Manulife Bank, a subsidiary, securitizes a portion of its HELOC receivables through Platinum Canadian Mortgage Trust II (“PCMT II”). PCMT II funds the purchase of the co-ownership interests from Manulife Bank by issuing term notes collateralized by an underlying pool of uninsured HELOCs to institutional investors. The restricted cash balance for the HELOC securitization reflects a cash reserve fund established in relation to the transactions. The reserve will be drawn upon only in the event of insufficient cash flows from the underlying HELOCs to satisfy the secured borrowing liability. (2) The PCMT II notes payable have floating rates of interest and are secured by the PCMT II assets. Under the terms of the agreements, no principal is expected to be repaid within one year, $1,209 within 1-3 years, $1,049 within 3-5 years and $492 beyond 5 years. There is no specific maturity date for the contractual agreements. Under the terms of the notes, additional collateral must be provided to the series as added credit protection and the Series Purchase Agreements govern the amount of over-collateralization for each of the term notes outstanding. Manulife Bank also securitizes insured amortizing mortgages under the National Housing Act Mortgage-Backed Securities (“NHA MBS”) program sponsored by CMHC. Manulife Bank participates in CMB programs by selling NHA MBS securities to Canada Housing Trust (“CHT”), as a source of fixed rate funding. As at December 31, 2022, the fair value of securitized assets and associated liabilities were $5,167 and $4,865, respectively (2021 – $4,725 and $4,601). 164 | 2022AnnualReport | NotestoConsolidatedFinancialStatements