John Hancock's parent just made its second mutual fund firm acquisition in the past month. Manulife confirmed that it bought AIC's Canadian retail fund business.
Also in September, Manulife subsidiary Elliott & Page bought Markland Street Asset Management, a Canadian closed-end fund manager.
Company Press Release
Toronto - Manulife Financial Corporation announced today that it has closed the transaction to purchase AIC’s Canadian retail investment fund business.
With the close of the transaction today, Manulife Mutual Funds, a Division of Elliott and Page Limited, will become the manager of AIC funds in Canada and Portland Investment Counsel (formerly AIC Investment Services) will continue as a fund sub-advisor for certain AIC funds. For a full list of the funds now being managed and their sub-advisors, please see the accompanying fact sheet, or visit www.manulifemutualfunds.ca.
“This is an excellent fit for Manulife and AIC Limited,” said Paul Rooney, President and Chief Executive Officer, Manulife Canada. “When coupled with Manulife’s solid wealth management services, this transaction strengthens our previously deep product line-up that meets the needs of investors and their advisors.”
Michael Lee-Chin, Executive Chairman of Portland Investment Counsel added: “We are committed to ensuring our clients continue to receive high-quality service and are very pleased that Manulife Financial is the purchaser of our retail fund business. They share our passion for providing advisors and clients with a broad array of products and services.”
Broadens Manulife’s wealth management reach
The acquisition of AIC funds creates significant scale and presence for Manulife in the Canadian retail investment fund market. Overall retail fund assets under management for Canadians will grow 38 per cent to approximately $13.9 billion1, based on latest industry figures.
MFC Global Investment Management will provide portfolio management services for most of the broadened fund family, while Portland Investment Counsel (formerly AIC Investment Services Inc.), Third Avenue Management and Brookfield Redding will remain as sub-advisors for a range of funds.
Effective on or about January 11, 2010, Ariel Investments will no longer act as sub-advisor for the AIC American Small to Mid Cap Fund, AIC American Focused Fund and AIC American Focused Corporate Class. Effective on or about January 11, 2010, Loomis Sayles will no longer act as sub-advisor for the AIC Global Fixed Income Fund. MFC Global Investment Management will retain sole responsibility for portfolio management of these funds.
“Both Manulife and AIC Limited have similar strong cultures designed to serve the needs of investors through independent advisors,” added Mr. Rooney.
“We now have an excellent opportunity to broaden Manulife’s position in Canada’s wealth management market, while providing AIC’s clients access to Manulife’s broad platform of insurance, wealth and banking products and services.”
“Manulife will continue to grow rapidly through the introduction of new and innovative products, the aggressive use of technology and expansion of our existing businesses. A key objective for Manulife is to help Canadians make better financial decisions and we welcome the opportunity to be of service to the advisors and clients of AIC Limited.”
Securities exchangeable into common shares of Manulife Financial Corporation will be issued in satisfaction of the purchase price. The transaction is expected to be accretive to Manulife earnings.
For more details and updates, please visit www.manulifemutualfunds.ca
About Portland Investment Counsel Inc.
Committed to the principles of disciplined long-term value investing, Portland Investment Counsel Inc. provides investment advisory and portfolio management services and products to individual private clients and to institutional investors across Canada, the U.S. and Caribbean, including foundations, universities and pension funds. With roots dating back to 1987, Portland Investment Counsel offers customized portfolios drawing on expertise in equity and fixed income management. In addition to this, Portland Investment Counsel currently sub-advises a number of third-party retail and closed-end mutual funds in Canada.
About Manulife Financial
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$421 billion (US$362 billion) as at June 30, 2009.
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.
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