Purchase to significantly expand Manulife wealth management business
TORONTO, Aug. 12 2009 – Manulife Financial and AIC Limited announced today that Manulife has signed an agreement to acquire AIC’s Canadian retail investment fund business.
Under the agreement, Manulife Mutual Funds would manage all AIC funds in Canada and AIC would continue to act as a fund sub-advisor for Manulife Mutual Funds.
“This is a great 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 agreement will strengthen our already strong product line-up that meets the needs of investors and their advisors.”
Michael Lee-Chin, Executive Chairman of AIC Limited, added: “This sale reflects our overall strategy to return to our roots of managing money and concentrate on our investment advisory services. 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, since they share our passion for providing advisors and clients with a broad array of products and services.”
Broadens Manulife’s wealth management reach
Once complete, the acquisition of AIC funds by Manulife will create significant scale and presence in the retail investment fund market. Overall retail fund assets under management for Canadians would grow to approximately $13.7 billion(1).
“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 fund clients access to Manulife’s broad platform of insurance, wealth and banking products and services.”
“This is a significant boost to Manulife’s wealth management business in Canada, particularly since it adds top-quality funds and AIC’s focused investment style to our already-strong lineup of funds,” said Mr. Rooney.
“Manulife Financial 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.”
The transaction is subject to regulatory and stock exchange approvals and certain fund unit holder approvals. 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 AIC Limited
AIC commenced operations in 1985 and has grown to become one of Canada’s largest privately-held mutual fund companies, with mutual fund assets under management of approximately $3.8 billion. For more information, please visit www.aic.com.
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 ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.