Manulife fund changes

TORONTO, Oct. 16 /CNW/ - Following the purchase of AIC's Canadian retail investment fund business last month, Manulife Mutual Funds, a division of Elliott & Page Limited, announced that it will be terminating four mutual funds and re-assigning portfolio management responsibilities of select AIC funds to MFC Global Investment Management.

As a result of the shift to MFC Global, some funds have experienced investment strategy changes effective October 13, 2009, while others will experience changes effective October 19, 2009. In addition, Manulife Mutual Funds also announced fee reductions effective November 2, 2009, on two of its money market funds in response to low interest rates on money market instruments in Canada and to maintain a positive yield for securityholders.

The acquisition of AIC funds in September created significant scale and presence for Manulife in the Canadian retail investment fund market. Overall retail fund assets under management for Canadians grew 38 per cent to approximately $13.9 billion, based on latest industry figures.

Fund Terminations
"We are closing four funds to both streamline our product offering and to reduce the costs associated with managing smaller funds," said Jeff Ray, Assistant Vice President, Mutual Fund Products. "This will allow Manulife Mutual Funds to concentrate resources in other mandates that will better serve the interests of our investors," added Mr. Ray.

Manulife will terminate the following four Manulife AIC Funds on or about
December 18, 2009.
- Value Leaders Maximum Growth Portfolio
- AIC American Advantage Corporate Class
- AIC Global Advantage Corporate Class
- AIC Global Premium Dividend Income Corporate Class

Prior to the termination date, securityholders of the terminating funds will receive a notice outlining their options to redeem their investments or to switch to another fund within the Manulife AIC Fund family.

Investment Strategy Changes
"While fund objectives will remain unchanged, some investment strategy changes will be implemented to more closely reflect the investment approach utilized by the MFC Global Investment Management portfolio team," said Mr. Ray.