2017 Q1 Proxy Vote
At Manulife Investments (“Manulife”), we are simplifying our mutual funds to make it easier for you to understand and achieve your investment goals. We are proposing two changes:
- Fixed Administration Fee for Manulife U.S. All Cap Equity Class (Advisor Series and Series T6) and Manulife Global Balanced Private Trust (Advisor Series, Series L, Series LT6, and Series T6) (the “FAF Funds”)
- Auditor change for the Manulife Tactical Income Fund.
Special meetings of investors in the above-listed funds/series will be held on or about February 16, 2017.
We strongly encourage you to read this letter and vote either online, by registered mail, fax, telephone, or in person. A Management Information Circular is also included which contains all the details of the two proposals. PLEASE ACT NOW AND VOTE BY FEBRUARY 14, 2017. Details on the voting process for each option can be found on the next page.
The following paragraphs will provide you an overview of the proposals, the potential benefits and key contact information for more details.
(i) Administration Fee Proposal
Adopt a simpler fee structure that will set a fixed rate for most of the Funds’ operating expenses.
Currently, the FAF Funds are required to pay their own operating expenses as part of the overall Management Expense Ratio (the “MER”). These operating expenses generally vary from year to year, which in turn causes the MER to fluctuate. An MER is an annual fee (shown as a percentage) which you pay through the Fund as an investor.
Effective on or after March 1, 2017, Manulife is proposing to introduce a fixed administration fee in place of most of the variable operating expenses charged to the FAF Funds in order to improve transparency and predictability. Manulife will pay the variable operating expenses and therefore will bear any fluctuations. From time to time, additional expenses can arise that are not covered by the fixed administration fee. While these expenses cannot all be predicted, we currently expect that, in many cases, we will reimburse the Funds or absorb such expenses rather than applying them to the Funds.
In the table below we list the impacted funds and the relative changes to the current MER. As highlighted in green these fees either stay the same or decrease.
|Fund Name and Series||Reported MER*||Future Expected MER||MER Change|
|Manulife U.S. All Cap Equity Class – Advisor Series||2.32%||2.32%||0.00%|
|Manulife U.S. All Cap Equity Class – Series T6||2.30%||2.23%||-0.07%|
|Manulife Global Balanced Private Trust – Advisor Series||2.08%||2.02%||-0.06%|
|Manulife Global Balanced Private Trust – Series L||2.24%||2.24%||0.00%|
|Manulife Global Balanced Private Trust – Series LT6||2.24%||2.21%||-0.03%|
|Manulife Global Balanced Private Trust – Series T6||2.08%||2.05%||-0.03%|
* Per most recent MRFP - October 31, 2016 for Manulife U.S. All Cap Equity Class and June 30, 2016 for Manulife Global Balanced Private Trust
In summary the benefits to you are:
• We expect the MER to be equal to or less than the most recent reported MER.
• Your fees are not likely to fluctuate, and this will allow for you to better understand what your ongoing fees will be.
• Manulife will assume the risk of future increases in most operating expenses
(ii) Change the Auditor Proposal
Effective by March 1, 2017, Manulife is proposing to change the auditor for the Manulife Tactical Income Fund from PricewaterhouseCoopers LLP to Ernst & Young LLP (“E&Y”). E&Y is already the auditor for the other investment funds managed by Manulife Investments.
Your vote is encouraged regardless of the number of securities you own. It is important that your voice is heard, whether or not you plan to attend the meeting in person. Votes can be registered online, by mail, fax, telephone, or in person.
Other than in person, proxies need to be received by 5:00pm (Toronto time) on February 14, 2017.
- Online at www.proxyvote.com. Control numbers are required and located below the fund on the proxy.
- By mail using the provided proxy voting form, ensuring the form is signed and all pages are returned.
- By fax at (905) 507-5352 (English) or (514) 281-8911 (French), ensuring the form is signed and all pages are sent.
- By telephone at 1-800-474-7493 (English) or 1-800-474-7501 (French). Control numbers are required and located below the fund on the proxy.
- In person at the special meeting scheduled for 10 a.m. (Toronto time) on February 16, 2017 at 200 Bloor Street East (South Tower), North American Life Room, Toronto, Ontario.
Who to contact if you have questions
Your advisor is always available to you if you have any questions about what these changes mean or about Manulife in general. If you received this information from your broker, custodian, nominee or other intermediary, please follow their instructions on how to register your vote.
Our Customer Service Centre is also available to you. You can reach us by phone or email.
|Phone:||1-888-588-7999||Monday to Friday, 8:00am to 8:00pm Toronto time||(English)|
|1-877-426-9991||Monday to Friday, 8:00am to 5:30pm Toronto time||(French)|
|Email:||firstname.lastname@example.org / email@example.com|
Alternatively, if you have any questions around voting procedures, you may contact Broadridge Financial Solutions, Inc. toll free at 1-855-887-2244.
Thank you for investing with Manulife! We value your business and look forward to working with you and your advisor to help meet your investment needs.
MANULIFE ASSET MANAGEMENT LIMITED,
as manager of the Manulife Investments mutual funds
President, Manulife Investments