Manulife Investments is expanding its fixed administration fee model to include two more funds.
Manulife announced yesterday that it plans to replace certain operating expenses of the Manulife U.S. All Cap Equity Class (Advisor Series and Series T6) and the Manulife Global Balanced Private Trust (Advisor Series, Series L, Series LT6, Series T6) with fixed administration fees.
As we reported several months ago, Manulife has overhauled its pricing structure for a number of funds. The company says the changes will result in management expense ratios (MERs) that are either lower or equal to the fund's most recently published MER. In addition, the Manulife says its new model offers increased certainty and transparency of fund MERs and protection against increases in MERs. Under the fixed admin fee program, Manulife Investments also assumes the risk of future increases in operating expenses.
Securityholder approval is required before the proposed changes can take place. Investors who own these funds and series as of January 16, 2017 will be sent materials for the meetings which are scheduled to take place on February 16, 2017.