Manulife Investment Management announces reduction of management fees on six mutual funds and outcome of fund mergers and terminations

News Release

C$ unless otherwise stated
TSX/NYSE/PSE: MFC             SEHK: 945
For Immediate Release
October 1, 2020

Toronto – Manulife Investment Management Limited (“the Manager”) today announced a reduction of management fees on certain mutual funds, the outcome of a securityholder vote on a fund merger and the termination and final valuation of Manulife Floating Rate Senior Loan Fund and of Manulife U.S. Regional Bank Trust.

Reduction of Management Fees 

A reduction of management fees on the following six mutual funds will be effective on or about October 1, 2020:

Fund Name

Series

Existing Management Fee (%)

New Management Fee (%)

Manulife U.S. All Cap Equity Fund

 

Advisor Series/ Series T

1.86

 

1.76

 

Series F/Series FT

0.88

0.78

Manulife U.S. All Cap Equity Class

 

Advisor Series/ Series T

1.86

1.76

 

Series F/Series FT

0.88

0.78

Manulife U.S. Dollar U.S. All Cap Equity Fund

 

Advisor Series/ Series T

1.86

1.76

 

Series F/Series FT

0.88

0.78

Manulife U.S. Dividend Income Fund

 

Advisor Series/Series T

1.86

1.80

Series F/Series FT

0.83

0.77

Manulife U.S. Dividend Income Class

 

Advisor Series/Series T

1.86

1.80

Series F/Series FT

0.83

0.77

Manulife U.S. Equity Fund

 

Advisor Series/Series T

1.98

 

1.86

Series F/Series FT

0.90

0.78

It is expected that the reduction in management fees should have a corresponding impact on the management expense ratio of the funds over time.

“Keeping our customers at the centre of all we do, we’ve identified an opportunity to improve the pricing attractiveness of six of our mutual fund products,” said Bernard Letendre, Head of Wealth and Asset Management, Canada. “Our team regularly reviews our fund lineup with this in mind and as a result of this ongoing process, we have lowered the management fees on several U.S. equity funds.”

Securityholder Approval to Merge Funds

Manulife Investment Management have received the required approvals from applicable securityholders to proceed with the previously announced proposed merger of the Manulife Floating Rate Income Fund into the Manulife U.S. Unconstrained Bond Fund, effective on or about October 23, 2020.

In addition to the receipt of the requisite securityholder approval, the merger of these funds also received on September 9, 2020, the approval of the Canadian securities regulators to effect this merger.

Previously Announced Fund Terminations

Further to its announcement on July 28, 2020, Manulife Investment Management Limited, the Manager of Manulife Floating Rate Senior Loan Fund and Manulife U.S. Regional Bank Trust (collectively, the “Funds”) announces that the Funds were terminated effective September 30, 2020 (the “Termination Date”). The Class A Units (TSX: MFR.UN) of Manulife Floating Rate Senior Loan Fund and Class A Units (TSX: MBK.UN) of Manulife U.S. Regional Bank Trust were delisted from the Toronto Stock Exchange as at the close of business on September 30, 2020.

As at the Termination Date, the final net asset value per Class A Unit and final net asset value per Class U Unit of Manulife Floating Rate Senior Loan Fund was $6.0088 and USD$4.5657, respectively. As at the Termination Date, the final net asset value per Class A Unit and final net asset value per Class U Unit of Manulife U.S. Regional Bank Trust was $6.3800 and USD$6.9480, respectively.  Payment of the termination proceeds will be made on or about October 7, 2020 to the beneficial holders of such units through CDS Clearing and Depository Services Inc.

About Manulife Investment Management

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than a century of financial stewardship and the full resources of our parent company to serve individuals, institutions, and retirement plan members worldwide. Headquartered in Toronto, our leading capabilities in public and private markets are strengthened by an investment footprint that spans 17 countries and territories. We complement these capabilities by providing access to a network of unaffiliated asset managers from around the world. We’re committed to investing responsibly across our businesses. We develop innovative global frameworks for sustainable investing, collaboratively engage with companies in our securities portfolios, and maintain a high standard of stewardship where we own and operate assets, and we believe in supporting financial well-being through our workplace retirement plans. Today, plan sponsors around the world rely on our retirement plan administration and investment expertise to help their employees plan for, save for, and live a better retirement.

As of June 30, 2020, Manulife Investment Management had CAD$900 billion (US$660 billion) in assets under management and administration. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com.

About Manulife

Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups and institutions. At the end of 2019, we had more than 35,000 employees, over 98,000 agents, and thousands of distribution partners, serving almost 30 million customers. As of June 30, 2020, we had $1.2 trillion (US$0.9 trillion) in assets under management and administration, and in the previous 12 months we made $30.6 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 155 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.

Media Contact                                                 

Brooke Tucker-Reid
Manulife
647-528-9601
Brooke_Tucker-Reid@Manulife.com