Manulife Investments, a division of Manulife Asset Management Ltd. (MAM), intends to launch a new asset-allocation program as well as merge several of its funds, the firm announced on Thursday.
The changes, which are subject to the approval of regulators and securityholders, are billed as a move to simplify the company’s offering.
Manulife Investments has filed a preliminary prospectus and other supporting documents for Manulife Asset Allocation Portfolios, which are expected to launch on or about May 5.
MAM will manage the four individual portfolios — Manulife Conservative Portfolio, Manulife Moderate Portfolio Manulife Balanced Portfolio, Manulife Growth Portfolio — that fall under the new program.
In addition, Manulife Investments plans to fold 12 of its existing funds into the four new portfolios introduced. (A full list of the affected funds is available in the company’s news release.)
“These portfolios help remove uncertainty and confusion from investing,” says Bernard Letendre, president of Manulife Investments, in a statement. “These sophisticated multi-asset portfolios provide advisors and investors institutional quality management in an easy-to-access solution.”
All fund mergers — except for that of Manulife Leaders Opportunities Portfolio, Manulife Portrait Dividend Growth & Income Portfolio Class, and Manulife Portrait Growth Portfolio Class — are going to be “effected on a tax-deferred basis,” the announcement says. The three exceptions will be implemented on a taxable basis.
A special meeting of securityholders will be convened to secure their approval, which has been set for on or about May 18. The meeting is only open to those who hold the securities on record as of April 3.
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