Manulife Strategic Income Opportunities Fund will convert to an open-ended fund on June 28, the fund’s manager, Toronto-based Manulife Asset Management Ltd. announced on Monday.
The conversion to an open-ended fund is in response to the federal government’s proposed changes in the 2013 budget to prohibit the use of “character conversion transactions,” which the fund currently employs.
Manulife Asset Management to close fund
The fund’s units will be delisted from the Toronto Stock Exchange on June 14, to allow for the conversion. On June 28, the outstanding fund units will convert to advisor series units on a one-for-one basis. The fund will be renamed the Manulife Global Tactical Credit Fund and will be an open-ended mutual fund with daily redeemable units at net asset value.
The fund’s investment objective will be to provide investors with monthly distributions as well as to protect their capital and to offer long-term capital appreciation opportunities. The fund will not employ leverage as part of an investment strategy. Finally, the management fee for the fund will increase to 1.70% from 1.50% per annum.