Manulife Investments is launching a tiered pricing model that will reduce fees for investors with higher individual and household account balances.
On October 1st, Manulife plans to introduce a fee structure that will reduce management fees for investors who meet certain eligibility requirements, such as reaching certain asset levels in their combined household holdings. "The fee reductions will not be limited to an individual fund; they will apply to the securityholder's total Manulife mutual fund holdings across all series," reads the announcement.
The company is also proposing to replace the variable operating expenses of some of its funds with fixed administration fees, and reduce management fees for others. A special meeting of securityholders will be held on or about November 16 to consider the proposed changes.
Simpler, predictable and competitive pricing
"Advisors and their investors are demanding simpler, predictable and competitive pricing," says Bernard Letendre, president of Manulife Investments. "Manulife is taking the necessary steps to meet these demands and provide better features to customers above and beyond investment performance. These changes will make it easier for advisors and investors to understand and access our investment platform."
The details of the tiered pricing and the fixed administration fees have not been released; they will be available when Manulife files its prospectus documents on August 2.