Manulife Mutual Funds, now a division of the renamed Manulife Asset Management Limited, Monday announced a sweeping overhaul of its fund line-up.

The changes include the rebranding of former AIC and Manulife Mawer fund, fund mergers and terminations planned for October and November, and the launch of six new funds.

“Following the acquisition of the AIC retail mutual fund business in September 2009, Manulife Mutual Funds conducted a thorough review of all fund mandates with the goal of providing advisors and their clients a stronger, more efficient and focused product offering,” says Jeff Ray, assistant vice president, mutual fund products.

“As a result of this analysis, a number of fund mergers were recommended to eliminate funds with similar mandates, achieve greater economies of scale and concentrate resources to better serve the interests of investors,” Ray adds

Name changes to existing funds
In the first step of its line-up overhaul, Manulife renamed a number of existing funds by removing AIC and Mawer names, changed portfolio management responsibilities for two funds and sub-advisor responsibilities for one fund.

The following AIC funds were renamed:
– Manulife Advantage Fund formerly AIC Advantage Fund’
– Manulife Advantage Fund II formerly AIC Advantage Fund II;
– Manulife Advantage II Class formerly AIC Advantage II Corporate Class;
– Manulife American Advantage Fund formerly AIC American Advantage Fund;
– Manulife Bond Fund formerly AIC Bond Fund;
– Manulife Canadian Focused Fund formerly AIC Canadian Focused Fund;
– Manulife Canadian Focused Class formerly AIC Canadian Focused Corporate Class;
– Manulife Diversified Canada Fund formerly AIC Diversified Canada Fund;
– Manulife Diversified Canada Class formerly AIC Diversified Canada Corporate Class;
– Manulife Global Advantage Fund formerly AIC Global Advantage Fund;
– Manulife Global Dividend Income Fund formerly AIC Global Premium Dividend Income Fund;
– Manulife Global Focused Fund formerly AIC Global Focused Fund;
– Manulife Global Focused Class formerly AIC Global Focused Corporate Class;
– Manulife Global Infrastructure Fund formerly Brookfield Redding Global Infrastructure Fund;
– Manulife Global Infrastructure Class formerly Brookfield Redding Global Infrastructure Corporate Class;
– Manulife Global Real Estate Fund formerly AIC Global Real Estate Fund;
– Manulife Global Real Estate Class formerly AIC Global Real Estate Corporate Class;
– Manulife International Dividend Income Fund formerly Copernican International Dividend Income Fund;
– Manulife Monthly High Income Class formerly AIC Canadian Balanced Corporate Class;
– Manulife Preferred Income Fund formerly AIC Preferred Income Fund;
– Manulife Total Yield Class formerly AIC Total Yield Corporate Class;
– Manulife U.S. Opportunities Class formerly AIC American Focused Corporate Class; ;
– Manulife U.S. Opportunities Fund formerly AIC American Focused Fund; and
– Manulife Value Fund formerly AIC Value Fund.

The following funds sub-advised by Mawer Investment Management Limited were renamed:
– Manulife Canadian Bond Fund formerly Manulife Mawer Canadian Bond Fund;
– Manulife Canadian Investment Class formerly Manulife Mawer Canadian Equity Class;
– Manulife Diversified Investment Fund formerly Manulife Mawer Diversified Investment Fund;
– Manulife Global Equity Class formerly Manulife Mawer Global Equity Class;
– Manulife Global Small Cap Fund formerly Manulife Mawer Global Small Cap Fund;
– Manulife Tax-Managed Growth Fund formerly Manulife Mawer Tax-Managed Growth Fund;
– Manulife U.S. Equity Fund formerly Manulife Mawer U.S. Equity Fund; and
– Manulife World Investment Class formerly Manulife Mawer World Investment Class.

Three other funds were also renamed:
– Manulife China Class formerly Manulife China Opportunities Class;
– Manulife Japan Class formerly Manulife Japan Opportunities Class; and
– Manulife Total Global Equity Class formerly Manulife SEAMARK Total Global Equity Class.

Portfolio management changes
On or about September 1, the portfolio management for the Manulife Canadian Core Fund and Manulife Canadian Core Class will change to Ted Whitehead from Pat McHugh.

On or about December 1, the portfolio sub-advisor of Manulife Japan Class will change from Manulife Asset Management (Hong Kong) Limited in Hong Kong, China to MFC Global Investment Management (Japan) Limited in Tokyo, Japan. The portfolio manager of the fund will change at the same time to Hidehiro Tomioka from Linda Csellak.

Proposed fund mergers

Amalgamation of AIC Corporate Fund Inc. and Manulife Investment Exchange Funds Corp.
In an effort to create a stronger corporate class structure and to allow for tax-deferred switching between the AIC Corporate Classes and the Manulife Corporate Classes, the two separate corporate class structures will be amalgamated on a tax-deferred basis into a single corporate entity, Manulfie says. A special meeting will be held on October 13, securityholders of the AIC Corporate Classes to vote on this matter. Subject to securityholder and regulatory approvals, the amalgamation is expected to take place on October 23. The Independent Review Committee has provided its approval for the amalgamation, Manulife says.

Corporate Class Mergers
Manulife has also received approval from its Independent Review Committee for several tax-deferred corporate class mergers. Approval of securityholders of the continuing corporate classes is required, and approval of the securityholders of the AIC Corporate Classes to amalgamate AIC Corporate Fund Inc. with Manulife Investment Exchange Funds Corp. is also required. Special meetings involving these corporate classes will be held on October 13. Subject to receipt of securityholder and regulatory approvals, and, where applicable, the amalgamation of AIC Corporate Fund Inc. and Manulife Investment Exchange Funds Corp., the corporate class mergers are expected to be completed on October 23.

In the proposed corporate class mergers:
– Manulife Value Class continues as Manulife U.S. Opportunities Class;
– Manulife Canadian Money Market Class continues as Manulife Short-Term Yield Class;
– Manulife Global Core Class continues as Manulife Global Opportunities Class;
– Manulife Total Global Equity Class continues as Manulife Global Opportunities Class;
– Manulife U.S. Large Cap Value Class continues as Manulife U.S. Opportunities Class; and
– Manulife U.S. Mid-Cap Value Class continues as Manulife U.S. Opportunities Class Class.

Tax-Deferred Trust Fund Mergers
Manulife has received approval from its Independent Review Committee for several trust fund mergers, which did not require approval from securityholders. The following mergers are expected to be completed on November 19:
– Manulife Canadian Stock Fund into Manulife Canadian Value Fund;
– Manulife Balanced Fund into Manulife Monthly High Income Fund;
– Manulife Global Balanced Fund into Manulife Global Opportunities;
– Manulife Dividend Income Fund into Manulife Dividend Fund;
– Manulife Global Fixed Income Fund into Manulife Strategic Income Fund;
– Manulife Global Bond Fund into Manulife Strategic Income Fund;
– Manulife Canadian Money Market into Manulife Money Fund;
– Manulife Leaders Income Portfolio into Manulife Leaders Balanced Income Portfolio;
– Manulife Growth & Income Fund into Manulife Monthly High Income Fund; and
– Manulife Core Balanced Fund into Manulife Monthly High Income fund.

Taxable Trust Fund Mergers
Manulife says its has also received the Independent Review Committee’s recommendation to merge the several of its funds. Regulatory approvals and approvals by the securityholders of the terminating funds are required to complete these mergers. Special meetings will be held on or about October 13. Subject to receipt of all necessary approvals, the following mergers are also expected to be completed on November 19:
– Manulife Global Wealth Management Fund into Manulife Global Advantage Fund;
– Manulife American Small to Mid-Cap Fund into Manulife U.S. Mid-Cap Fund;
– Manulife Global Dividend Fund into Manulife Global Dividend Income Fund; and
– Manulife U.S. Value Fund into Manulife U.S. Opportunities Fund.

Fund closures
Manulife will terminate Class T4 securities of Manulife Leaders Income Portfolio on November 19.

Manulife will also cap all retail series of Manulife U.S. Money Market Fund, including systematic transfers, effective immediately. The fund will be terminated on November 19.

Six funds launched
“Income and yield continue to have prominent focus in investors’ portfolios,” says Ray. “With these new funds, Manulife continues to demonstrate leadership and our expertise in fixed income investing by increasing the choices advisors have when building their clients’ income portfolios.

The following new funds are now available for sale.

Manulife Strategic Income Class
This corporate class version of the 2010 Lipper Award-winning trust fund will also be managed by Dan Janis. The fund will strive to generate a return similar to that of a diversified portfolio primarily consisting of government and corporate debt securities from developed and emerging markets, and also U.S. government and agency securities and high yield bonds. This return may be generated primarily by entering into forward contracts.

Manulife Floating Rate Income Fund
This fund is intended appeal to fixed income investors who are concerned with rising interest rates. The fund invests in securities that pay variable, or floating, rates of interest. It can potentially have a unique role in income portfolios by diversifying interest rate sensitive investments and helping investors to diversify their fixed income portfolios.

Manulife Short Term Bond Fund
The role of this fund in a portfolio will be to reduce volatility or shorten duration. The fund is managed using an active, value-oriented investment style that is based on fundamental research. The portfolio advisor employs top-down economic research and bottom-up credit analysis that seeks to identify “pockets of value” and minimize downside risk. Terry Carr, who also co-manages the recently launched Manulife Yield Opportunities Fund, is the fund manager.

In addition to the new income funds, the firm also introduced two new Canadian equity funds and one new Canadian balanced fund. “The portfolio management strength on these funds really stands out,” says Ray. “They’ll be managed by experienced managers who currently oversee other top performing and award-winning funds in the Manulife Mutual Fund family.”

Manulife Canadian Opportunities Fund and Manulife Canadian Opportunities Class
To generate investment returns, these funds will focus on Canada but also employ “go anywhere” mandates. The fund managers can search both in Canada and globally, as well as by market capitalization and sector, for the best investment ideas and securities that are believed to be attractively priced with growth potential. Ted Whitehead, who is also lead manager of the 5-star rated Manulife Growth Opportunities Fund, will manage these new funds.

Manulife Canadian Balanced Fund
Strong management experience headlines this new fund with award-winning Mawer Investment Management Ltd. as sub-advisor and Craig Senyk as fund manager. Senyk also manages the Mawer Canadian Diversified Investment Fund, winner of the 2010 Lipper Award in the Global Balanced Equity category (3 and 10 years).

IE