Purchase significantly expands Manulife wealth management business

TORONTO - Manulife Financial Corporation announced that it has closed the transaction to purchase AIC's Canadian retail investment fund business.

With the close of the transaction Friday September 25, 2009, Manulife Mutual Funds, a Division of Elliott and Page Limited, became 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. "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 billion(1), 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 http://www.manulifemutualfunds.ca