Manulife Mutual Funds is committed to sustaining a strong and efficient product line-up to serve investors needs. As such, Manulife Mutual Funds will make a number of changes to its fund offerings, including implementing certain fund mergers, a portfolio manager change, a fund name change and risk rating changes, subject to the receipt of all necessary regulatory and securityholder approvals.
Fund Mergers Manulife Mutual Funds announced plans today for a number of fund mergers. Manulife Mutual Funds intends to merge four funds on or about October 24, 2014, followed by mergers of 11 funds on or about November 7, 2014. These mergers are designed to simplify Manulife Mutual Funds investment platform, remove sub-scale products, and manage Manulife Investment Exchange Funds Corp. ("MIX Corp.") in response to the federal government enacted legislation to eliminate the use of derivative forward agreements to re-characterize fully taxable income into capital gains for tax purposes.
It s important that we respond to last year s Federal Budget announcement in a manner that is in the best interest of all investors in funds within the MIX Corp. With the elimination of forward contracts for income character conversion purposes, we are removing certain assets which are generating significant fully taxable income from MIX Corp. to the trust-equivalent funds in the best interest of the affected investors and to help ensure a strong, viable corporation for our investors, for years to come. said Derek Saliba, AVP, Mutual Funds, Manulife.
October 24, 2014 Fund Mergers (after the close of business on or about October 24, 2014, the Merger Date ) Manulife Mutual Funds has received from its Independent Review Committee the approval or recommendation for approval, as required, to proceed with plans for mergers of the following funds.
Each securityholder of a Terminating Fund and select Continuing Funds will receive advance notice of the mergers through a Notice of Termination or, in the case of those mergers that require securityholder approval, a Notice of Meeting and Management Information Circular, in accordance with applicable securities laws. Approval by securityholders of each of the following Continuing Funds: Manulife Preferred Income Class, Manulife Canadian Conservative Balanced Fund, Manulife Global Dividend Class, and Manulife Balanced Income Private Trust will also be required. Any necessary securityholder approvals would be sought at special meetings to be held on or about October 16, 2014 for securityholders of record as of September 8, 2014.
Each proposed merger will be effected on a taxable basis, with the exception of the mergers of Manulife Global Opportunities Balanced Fund and Manulife Global Opportunities Class, which will each be executed on a tax-deferred basis.