Manulife signs agreement with AIC Limited to acquire AIC Canadian retail investment funds



    Purchase to significantly expand Manulife wealth management business

    TORONTO, Aug. 12 /CNW/ - 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 '945' on the SEHK. Manulife Financial can be found on the Internet
at www.manulife.com.

    
    -------------------------
    (1) Source: Investment Funds Institute of Canada, as of July 31, 2009


    August 12, 2009

                                 FACT SHEET:
                                 -----------

       Manulife to acquire AIC Limited retail investment fund business
       ---------------------------------------------------------------
    

    Once complete, the acquisition of AIC Limited's retail investment fund
business by Manulife Financial will create significant scale and presence for
Manulife's individual wealth management business across Canada.
    At AIC Limited, key members of its portfolio management team will return
to their asset management roots by creating a sub-advisory business focused on
high net-worth individuals, plus will continue to act as a sub-advisor for
Manulife Mutual Funds.
    The businesses based in Burlington and Toronto, Ontario currently have
almost $13.7 billion(*) in combined investment funds assets under management
across Canada.
    AIC Limited and Manulife have a strong strategic fit with complementary
investment platforms.

    
    Highlights:
    -----------

    -  The transaction provides Manulife the opportunity to leverage its
       operational, investment and distribution strengths.

    -  Combination of AIC's high-quality, focused asset management style with
       Manulife's already strong fund portfolio will grow Manulife's retail
       mutual funds business and add AIC's unique value investment style to
       complement funds offered across Canada.

    -  AIC Limited, founded in 1985, is Canada's largest privately-held
       mutual fund company with $3.8 billion(*) in retail investment fund
       assets under management.

    -  Manulife Mutual Funds, with roots dating back to 1949, currently
       manages approximately CDN $9.9 billion(*) in assets through its
       growing families of mutual funds.

    -------------------------
    (*) Source: Investment Funds Institute of Canada as of July 31, 2009
    




For further information:

For further information: Media contacts: Tom Nunn, Manulife Financial,
(519) 594-8578, tom_nunn@manulife.com or Terri Oswald, AIC Limited,
1-888-710-4242, ext. 4345, toswald@aic.com


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