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Manulife closes 12 segregated funds as a result of mergers of mutual funds


Alain Thériault

January 26, 2018 09:45

Due to the many mergers of mutual funds thatManulife Investments intends to make, 12 segregated funds will go to the hatch on 9 march 2018, of which several funds of the range Ideal.

After the 9 march, Manulife will not accept any new deposit or incoming transfer in these funds. The direct debits in force before that date, and incoming wire transfers will be maintained, says the insurer. They may, however, be increased.

The investments transferred in the spring

«The investments made in the fund closed to new subscriptions as well as investments that regular force before the date of closure will be transferred to the replacement fund during the spring,» says Manulife.

The segregated fund referred to are :

– Corporate bond fund Ideal canadian

– Income fund conservative Ideal

– Monetary fund Ideal

– Bond fund short-term Ideal

– Monthly high income fund u.s. non-covered Ideal

– Opportunities balanced fund Manulife canadian

– Manulife canadian opportunities fund

– Fund high yield bond Manulife

– Manulife money fund

– Bond fund Manulife short term

– Dividend class americans Manulife

– Fund separate Mandate private fixed Income Manulife american

Manulife said to shut down these segregated funds to new subscriptions in order to facilitate their dissolution. It will take place at a time of numerous mergers of mutual funds corresponding planning Manulife Investments, the 20th of April for seven mutual funds, and may 25, for the other 13.

Simplify and streamline

In the wake of the 20 mergers of mutual funds, certain segregated funds will be at the same time their management costs decrease, and other their investment risk increase, so that their investment objectives will be modified in the common fund.

Manulife investments explains that she performs these changes to eliminate duplicates and streamline its platform for advisers and investors. «These changes simplify our product offering to enable us to offer our clients and our consultants a platform for streamlined high-quality funds,» said Bernard Letendre, head of the wealth management and asset, Canada, and president and chief executive officer, Manulife Investments.

In the mergers that would have led to higher management fees, Manulife Investments to retain, rather the lower management fee. «If there is a place, Manulife will proceed to the creation of new series of the fund, to maintain the reduced management fee «, states the company.

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