Manulife Mutual Funds will terminate four mutual funds and re-assign portfolio management responsibilities of select AIC funds to MFC Global Investment Management, the company said Friday.

Manulife purchased AIC’s Canadian retail investment fund business last month.

As a result of the shift to MFC Global, some funds have experienced investment strategy changes effective October 13, while others will experience changes effective October 19, Manulife says.

“We are closing four funds to both streamline our product offering and to reduce the costs associated with managing smaller funds,” says Jeff Ray, assistant vice president, mutual fund products. “This will allow Manulife Mutual Funds to concentrate resources in other mandates that will better serve the interests of our investors,” adds Mr. Ray.

On December 18, Manulife will terminate Value Leaders Maximum Growth Portfolio, AIC American Advantage Corporate Class, AIC Global Advantage Corporate Class, and AIC Global Premium Dividend Income Corporate Class.


Investment strategy changes

“While fund objectives will remain unchanged, some investment strategy changes will be implemented to more closely reflect the investment approach utilized by the MFC Global Investment Management portfolio team,” says Ray.

The following funds

On October 13, AIC Canadian Equity Fund, AIC Money Market Fund/AIC Money Market Corporate Class, AIC U.S. Money Market Fund, and AIC Bond Fund will undergo investment strategy changes.

AIC Global Balanced Fund,AIC Global Bond Fund, AIC Global Premium Dividend Income Fund/AIC Global Premium Dividend Income Corporate Class, AIC Total Yield Corporate Class, and Copernican International Dividend Income Fund will undergo investment strategy changes on October 19.

Money market fee reductions

In addition, Manulife also announced fee reductions effective November 2, on two of its money market funds in response to low interest rates on money market instruments in Canada and to maintain a positive yield for securityholders.

The management fee for AIC U.S. Money Market Fund and AIC Money Market Corporate Class will fall to 0.50% from 0.75%. The front-end trailing commission on both funds will also be reduced on a temporary basis to 0%.

IE