Manulife Mutual Funds has received securityholder approval to implement a corporate class structure amalgamation and a number of fund mergers, the fund manager said Friday.

The overhaul follows from the acquisition of the AIC retail mutual fund business in September 2009.

“The corporate class structure amalgamation and fund mergers were recommended with the goal of providing advisors and their clients a stronger, more efficient and focused product offering. Eliminating funds with similar mandates helps us to achieve greater economies of scale and concentrate resources in other areas to better serve the interests of investors,” says Jeff Ray, assistant vice president, mutual funds and structured products.

Amalgamation of AIC Corporate Fund Inc. and Manulife Investment Exchange Funds Corp.
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 under the Manulife Exchange Funds Corp. name. Securityholders of AIC Corporate Fund Inc. voted in favour of the amalgamation with Manulife Investment Exchange Funds Corp., which is expected to take effect on October 23.

Corporate Class mergers
Manulife Mutual Funds also received approval from securityholders of the continuing funds for several tax-deferred corporate class mergers. Three of the corporate class mergers were also contingent upon the approval of the corporate class structure amalgamation. The following mergers are expected to be completed on October 23:

> Manulife Value Class merges into Manulife U.S. Opportunities Class;
> Manulife Canadian Money Market Class merges into Manulife Short-Term Yield Class;
> Manulife Global Core Class merges into Manulife Global Opportunities Class;
> Manulife Total Global Equity Class merges into Manulife Global Opportunities Class;
> Manulife U.S. Large Cap Value Class merges into Manulife U.S. Opportunities Class; and
> Manulife U.S. Mid-Cap Value Class merges into Manulife U.S. Opportunities Class.

Taxable trust fund mergers
Securityholders of the terminating funds also voted in favour of four taxable trust fund mergers. The mergers are expected to be completed on November 19.

> Manulife Global Wealth Management Fund merges into Manulife Global Advantage Fund;
> Manulife American Small to Mid-Cap Fund merges into Manulife U.S. Mid-Cap Fund;
> Manulife Global Dividend Fund merges into Manulife Global Dividend Income Fund
> Manulife U.S. Value Fund merges into Manulife U.S. Opportunities Fund.

Tax-deferred trust fund mergers
The following fund mergers are expected to be completed on November 19:

> Manulife Canadian Stock Fund merges into Manulife Canadian Value Fund;
> Manulife Balanced Fund merges into Manulife Monthly High Income Fund;
> Manulife Global Balanced Fund merges into Manulife Global Opportunities Balanced Fund;
> Manulife Dividend Income Fund merges into Manulife Dividend Fund;
> Manulife Global Fixed Income Fund merges into Manulife Strategic Income Fund;
> Manulife Global Bond Fund merges into Manulife Strategic Income Fund;
> Manulife Canadian Money Market Fund merges into Manulife Money Fund;
> Manulife Leaders Income Portfolio merges into Manulife Leaders Balanced Income Portfolio;
> Manulife Growth & Income Fund merges into Manulife Monthly High Income Fund; and
> Manulife Core Balanced Fund merges into Manulife Monthly High Income fund.

Fund closures
Manulife Mutual Funds previously announced that it will terminate Class T4 securities of the Manulife Leaders Income Portfolio on November 19.

It also capped all retail series of the Manulife U.S. Money Market Fund, including systematic transfers. The fund will be terminated on November 19.

IE