Manulife converts strategic income fund

Manulife is converting its Strategic Income Opportunities Fund into an open-ended mutual fund, effective June 28, 2013.

On June 14, 2013, the units of the fund will be delisted from the TSX at the close of business.

And on this date, the outstanding units of the fund will also be automatically converted to Advisor Series Units on a one-for-one basis. The fund will become an open-ended mutual fund with daily redeemable units. Also, its name will be changes to the Manulife Global Tactical Credit Fund.

Manulife Asset Management says the tax advantaged characterization of distributions received by unit holders will cease on the expiration of the fund’s forward agreement following the its distribution for the month of June 2013.

Following the conversion, the fund will no longer utilize forward purchase and sale agreements to obtain exposure to an underlying reference portfolio. It will instead invest directly in securities.

As a result, the fund will provide unit holders with monthly distributions. In addition, its management fee will increase from approximately 1.5% per annum to 1.7% per annum.

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Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.