Manulife Mutual Funds has added a new dollar cost averaging fund to its current line-up of mutual funds, the company announced Tuesday.

Now available, the Manulife Dollar-Cost Averaging Fund provides investors with a systematic means of investing in the financial markets over time and provides a rate of return equivalent to the interest rate offered by the Manulife Bank Investment Savings Account.

The fund is ideally suited for investors looking for opportunities in the markets yet are unsure when to invest, Manulife Mutual Funds says.

An investment is made in the fund and then the money is automatically dollar cost averaged over a 12-month period into one or more Manulife mutual funds. Investors have the potential to benefit as more units can be purchased when prices are low and fewer units are bought when prices are high.

“Current market conditions make the introduction of a dollar cost averaging fund an ideal solution for investors who are unsure about the best time to invest,” says Jeff Ray, assistant vp with Manulife Mutual Funds. “Studies show that dollar cost averaging can be a smart way to take advantage of volatile markets. The Manulife Dollar-Cost Averaging Fund provides investors with a hands-off approach to gradually transition back into the markets while enjoying a highly competitive rate of return on monies allocated for future investment” he adds.

The fund will initially provide an investment return of 3.5% (annualized) until March 31, 2009. After this date, the return is expected to be equivalent to the rate of interest offered by the Manulife Bank Investment Savings Account.

Invesco Trimark Ltd. and AGF Management Inc. have announced similar funds.

IE