Manulife Mutual Funds has announced changes to some of its mutual funds, including an increase to the distribution frequency of some funds.

On Friday, the firm said it would change the distribution frequency of the Manulife Dividend Fund and the Manulife Strategic Income Fund from quarterly to monthly.

In addition, it plans to add Series T and Elite T Series to the Manulife Monthly High Income Fund. Manulife’s Series T funds are designed for investors with non-registered accounts who are looking for regular, tax-efficient income. All, or a significant portion, of the distribution that these funds provide is classified as tax-free “return of capital” payments.

“Today’s announcement illustrates how Manulife Mutual Funds is continuously working to improve the features and benefits of our mutual funds to provide investors and their advisors with better options for generating income,” said Jeff Ray, assistant vice president of mutual fund products. “This will provide our income-oriented investors with added convenience and flexibility when planning their finances.”

Pending regulatory approval, Series T and Elite T Series options will be made available for the Manulife Monthly High Income Fund. The Series T option provides a 6% annual payout for investors looking to receive tax-efficient income. The Elite T series provides the same benefits but is designed to provide price breaks for investors with larger accounts.

Effective April 23, the Manulife Dividend Fund will change its distribution frequency from a quarterly target distribution of $0.10 to a monthly target of $0.033.

The Manulife Strategic Income Fund will also move from a quarterly pay out schedule to monthly distributions. The amount of the distribution will remain variable as outlined within the simplified prospectus.

IE