Manulife Mutual Funds Streamlines Fund Family

TORONTO, Aug. 23 /CNW/ - Manulife Mutual Funds, a division of Manulife Asset Management Limited, is undertaking a number of fund mergers and closures in October/November 2010 to streamline and enhance its fund line-up. "Following the acquisition of the AIC retail mutual fund business in September 2009, Manulife Mutual Funds conducted a thorough review of all fund mandates with the goal of providing advisors and their clients a stronger, more efficient and focused product offering. As a result of this analysis, a number of fund mergers were recommended to eliminate funds with similar mandates, achieve greater economies of scale and concentrate resources to better serve the interests of investors," said Jeff Ray, Assistant Vice President, Mutual Fund Products.

Amalgamation of AIC Corporate Fund Inc. and Manulife Investment Exchange Funds Corp. (MIX) (on or about October 23, 2010)

In an effort to create a stronger corporate class structure and to allow for tax-deferred switching between the AIC Corporate Classes and the Manulife Corporate Classes, the two separate corporate class structures will be amalgamated on a tax-deferred basis into a single corporate entity. A special meeting will be held on or about October 13, 2010 for securityholders of the AIC Corporate Classes to vote on this matter and, subject to securityholder and regulatory approvals, the amalgamation is expected to take place on or about October 23, 2010. The Independent Review Committee has provided its approval for the amalgamation.

Corporate Class Mergers (on or about October 23, 2010)

Manulife Mutual Funds has also received approval from its Independent Review Committee for the following tax-deferred corporate class mergers. Approval of securityholders of the continuing corporate classes is required, and approval of the securityholders of the AIC Corporate Classes to amalgamate AIC Corporate Fund Inc. with Manulife Investment Exchange Funds Corp. is also required. Special meetings involving these corporate classes will be held on or about October 13, 2010 to approve the mergers and amalgamation. Subject to receipt of securityholder and any required regulatory approvals, and, where applicable, the amalgamation of AIC Corporate Fund Inc. and Manulife Investment Exchange Funds Corp., the corporate class mergers are expected to be completed on or about October 23, 2010.

    << ------------------------------------------------------------------------- Terminating Fund                  Continuing Fund ------------------------------------------------------------------------- Manulife Value Class (formerly    Manulife U.S. Opportunities Class AIC Value Corporate Class)        (formerly AIC American Focused Corporate Class) ------------------------------------------------------------------------- Manulife Canadian Money Market    Manulife Short-Term Yield Class Class (formerly AIC Money Market Corporate Class) ------------------------------------------------------------------------- Manulife Global Core Class        Manulife Global Opportunities Class ------------------------------------------------------------------------- Manulife Total Global Equity      Manulife Global Opportunities Class Class (formerly SEAMARK Total Global Equity Class) ------------------------------------------------------------------------- Manulife U.S. Large Cap Value     Manulife U.S. Opportunities Class Class                             (formerly AIC American Focused Corporate Class) ------------------------------------------------------------------------- Manulife U.S. Mid-Cap Value       Manulife U.S. Opportunities Class Class                             (formerly AIC American Focused Corporate Class) ------------------------------------------------------------------------- >> 

Tax-Deferred Trust Fund Mergers (on or about November 19, 2010)

Manulife Mutual Funds has received approval from its Independent Review Committee for the following trust fund mergers. While securityholders of the terminating funds listed below did not have to approve the mergers, each securityholder of a terminating fund will be provided with advanced notice of the mergers in accordance with applicable securities laws. These fund mergers are expected to be completed on or about November 19, 2010.

    << ------------------------------------------------------------------------- Terminating Fund                  Continuing Fund ------------------------------------------------------------------------- Manulife Canadian Stock Fund      Manulife Canadian Value Fund (formerly AIC Canadian Equity Fund) ------------------------------------------------------------------------- Manulife Balanced Fund (formerly  Manulife Monthly High Income Fund AIC Canadian Balanced Fund) ------------------------------------------------------------------------- Manulife Global Balanced Fund     Manulife Global Opportunities (formerly AIC Global Balanced     Balanced Fund Fund) ------------------------------------------------------------------------- Manulife Dividend Income Fund     Manulife Dividend Fund (formerly AIC Dividend Income Fund) ------------------------------------------------------------------------- Manulife Global Fixed Income      Manulife Strategic Income Fund Fund (formerly AIC Global Fixed Income Fund) ------------------------------------------------------------------------- Manulife Global Bond Fund         Manulife Strategic Income Fund (formerly AIC Global Bond Fund) ------------------------------------------------------------------------- Manulife Canadian Money Market    Manulife Money Fund Fund (formerly AIC Money Market Fund) ------------------------------------------------------------------------- Manulife Leaders Income           Manulife Leaders Balanced Income Portfolio (formerly Value         Portfolio (formerly Value Leaders Leaders Income Portfolio)         Balanced Income Portfolio) ------------------------------------------------------------------------- Manulife Growth & Income Fund     Manulife Monthly High Income Fund ------------------------------------------------------------------------- Manulife Core Balanced Fund       Manulife Monthly High Income fund ------------------------------------------------------------------------- >> 

Taxable Trust Fund Mergers (on or about November 19, 2010)

Manulife Mutual Funds has also received the Independent Review Committee's recommendation to merge the trust funds listed below. Regulatory approvals and approvals by the securityholders of the terminating funds are required to complete these mergers. Special meetings will be held on or about October 13, 2010 to approve the mergers involving these funds. Subject to receipt of all necessary approvals, these fund mergers are expected to be completed on or about November 19, 2010.

    << ------------------------------------------------------------------------- Terminating Fund                  Continuing Fund ------------------------------------------------------------------------- Manulife Global Wealth            Manulife Global Advantage Fund Management Fund (formerly AIC     (formerly AIC Global Advantage Fund) Global Wealth Management Fund) ------------------------------------------------------------------------- Manulife American Small to        Manulife U.S. Mid-Cap Fund Mid-Cap Fund (formerly AIC American Small to Mid-Cap Fund) ------------------------------------------------------------------------- Manulife Global Dividend Fund     Manulife Global Dividend Income Fund (formerly AIC Global Premium Dividend Income Fund) ------------------------------------------------------------------------- Manulife U.S. Value Fund          Manulife U.S. Opportunities Fund (formerly AIC American Focused Fund) ------------------------------------------------------------------------- >> 

Effective as of the close of business on or about October 18, 2010 in the case of a Merger between two corporate classes, and on or about November 15, 2010, in the case of a Merger between two mutual fund trusts, each Terminating Fund will cease distribution of new securities (except purchases under existing pre-authorized chequing plans and dollar cost averaging plans). Securityholders will have the right to redeem the securities of each Terminating Fund up to the close of business on the Merger Date in the case of a Merger between two mutual fund trusts, and up to close of business on or about the business day prior to the Merger Date in the case of a Merger between two corporate classes. Following the Merger, pre-authorized chequing plans, systematic withdrawal plans and dollar cost averaging plans, which had been established with respect to a Terminating Fund will be re-established with respect to the Continuing Fund unless securityholders advise otherwise. Each Terminating Fund is intended to be wound-up on or as soon as possible after the Merger Date.

Fund Closures

Manulife Leaders Income Portfolio (formerly Value Leaders Income Portfolio) (Class T4 Only)

Manulife Mutual Funds has announced that it will terminate Class T4 securities of the Manulife Leaders Income Portfolio on or about November 19, 2010.

Manulife U.S. Money Market Fund (formerly AIC U.S. Money Market Fund)

Manulife Mutual Funds will also cap all retail series of the Manulife U.S. Money Market Fund, including systematic transfers, effective immediately. The Fund will be terminated on or about November 19, 2010.

About Manulife Investments

Manulife Investments is the brand name describing certain Canadian subsidiaries and operating divisions of Manulife Financial Corporation that offer personal wealth management products and services in Canada. As one of Canada's leading integrated financial services providers, Manulife Investments offers a variety of products and services including segregated funds, mutual funds, annuities and guaranteed investment contracts.

About Manulife Financial

Manulife Financial is a leading Canadian-based financial services group operating in 22 countries and territories worldwide. For more than 120 years, clients have looked to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We provide asset management services to institutional customers worldwide as well as reinsurance solutions, specializing in life and property and casualty retrocession. Funds under management by Manulife Financial and its subsidiaries were Cdn$454 billion (US$428 billion) as at June 30, 2010. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.