Manulife Mutual Funds will no longer accept new or additional investments into 11 of its corporate class funds and pools.
This decision has been made in response to the federal government’s budget announcement on March 21, 2013, which included proposed changes that eliminate certain tax advantages enjoyed by investment funds that employ what are described as “character conversion transactions”—the use of forward agreements to obtain capital gains treatment on returns that would otherwise be fully taxable as ordinary income. Such forward agreements are used by a number of investment funds across the country, including the Manulife funds and pools listed below.
Manulife Mutual Funds believes it is in the best interest of existing investors in the following funds and pools to suspend further purchases until there is greater guidance from the federal government regarding this proposal.
- Manulife Corporate Bond Class
- Manulife Floating Rate Income Class
- Manulife Strategic Balanced Yield Class
- Manulife Strategic Income Class
- Manulife Structured Bond Class
- Manulife Yield Opportunities Class
- Manulife Balanced Private Pool
- Manulife Balanced Income Private Pool
- Manulife Canadian Fixed Income Private Pool
- Manulife Corporate Fixed Income Private Pool
- Manulife Global Fixed Income Private Pool
Investors are encouraged to speak with their financial advisor and/or tax advisor about their options regarding corporate class funds.