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Investment updates

2015

The following summarizes recent changes relating to the investment funds offered under the Manulife
Investment Watch (i-Watch®) and its respective investment manager(s). For more information,
call us at 1-800-242-1704.

AB

AllianceBernstein announces changes to its brand identity

On January 20, 2015, AllianceBernstein announced that they will now be known as AB going forward.

As a result of this announcement the name of the following Manulife fund offered on the Investment Watch (i-Watch®) will change on February 1, 2015:

Current Fund Name New Fund Name
Canadian Core Plus Bond Fund (AllianceBernstein) Canadian Core Plus Bond Fund (AB)

Aberdeen Asset Management Inc.

Aberdeen acquires FLAG Capital Management

On May 27, 2015, Aberdeen Asset Management announced that the firm has entered into an agreement to acquire FLAG Capital Management, LLC (“FLAG”). FLAG is a diversified private markets solutions business focused on venture capital, small- to mid-cap private equity, and real assets in the U.S., as well as private equity in the Asia-Pacific region. The business will be fully integrated into Aberdeen’s current private markets capability. The completion of the transaction is currently expected to close in the third quarter of 2015, pending regulatory requirements.

This acquisition is intended to strengthen and grow Aberdeen’s global alternatives platform and solutions provisions via multi-manager coverage of hedge funds, property and private market allocations, infrastructure investments and pan-alternatives capabilities. FLAG’s private equity teams in the U.S. and Asia will help broaden Aberdeen’s private markets solutions activity within the alternatives arena.

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards


Aberdeen senior management appointments

On June 25, 2015, Aberdeen Asset Management (“Aberdeen”) announced that Hugh Young, Managing Director, will take on a wider role within the firm, providing oversight for the Property and Fixed Income decisions as well as the Active Equities business.

As such, Aberdeen appointed Devan Kaloo, currently the Head of Global Emerging Markets, to succeed Hugh as the Global Head of Equities.

Devan, Pertti Vanhanen, Global Head of Property, and Brad Crombie, Global Head of Fixed Income reports to Hugh Young. The regional and global equity desk heads now reports to Devan. Hugh and Devan continue with their other existing responsibilities.

There are no changes to the investment process or the day to day management of the portfolios managed by these individuals.

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards.


Aberdeen acquires Arden Asset Management, LLC

On August 4, 2015, Aberdeen announced that they have entered into an agreement to acquire Arden Asset Management, LLC – a provider of hedge fund solutions to expand their hedge fund business. Arden’s business is complementary to Aberdeen’s existing hedge fund solutions capability and the two teams will be fully integrated.

This acquisition is intended to strengthen and grow Aberdeen’s global alternatives platform encompassing multi-manager research and selection across hedge funds, private equity, and property along with direct investments in infrastructure projects. The transaction is subject to several regulatory approvals and the aim is to complete the transaction during the fourth quarter of 2015.

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards

Beutel, Goodman & Company Ltd.

Restrictions Lifted for the Balanced Fund (Beutel Goodman)

We have been informed by Beutel, Goodman & Company Ltd. that the fund manager will be re-opening the Beutel Goodman Balanced Fund for all institutional investors. Beutel Goodman is the investment manager for the Manulife Balanced Fund (Beutel Goodman).

In February 2013, Beutel Goodman had announced that the fund would no longer accept contributions for new defined benefit clients. This announcement did not impact existing Manulife clients currently invested in the Balanced Fund (Beutel Goodman) and all existing clients were able to continue investing into the fund.

The Beutel Goodman Balanced Fund is the underlying fund for the Manulife Balanced Fund (Beutel Goodman).

New Co-Manager of Global Equity at Beutel Goodman

We have been informed by Beutel, Goodman & Company Ltd. that they are realigning portfolio management accountabilities for their non-domestic equity team. Effective February 20, 2015, a co-management structure will be implemented for all non-domestic portfolio strategies. Note that this structure was already in place for the US equity strategy. As a result, Colin Ramkissoon will co-manage the Global Equity strategy with Glenn Fortin, replacing KC Parker.

The Beutel Goodman Global Equity Fund is the underlying fund for the Manulife Global Equity Fund (Beutel Goodman).

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards.

BlackRock Asset Management Canada Limited

Portfolio Manager change for the LifePath Target Date Funds

On September 2015, we were notified that the former Head of US and Canada Defined Contribution of the BlackRock LifePath funds, Chip Castille, took on a new role as Chief Retirement Strategist for the firm. Anne Ackerley has succeeded Chip in the role and has been with BlackRock for over 15 years.

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards

BMO Asset Management

Benchmark Change for the BMO Asset Management Small Cap Fund

Effective March 31, 2015, the benchmark for the BMO Asset Management Small Cap Fund changed to the S&P/TSX SmallCap Index. The Fund previously used the BMO Capital Markets Small Cap Index (Blended). The change to the benchmark occurred as a result of the manager’s desire to align itself with industry standards and to use the most appropriate available benchmark. There are no concerns with this change.

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards

Dynamic Funds

Fidelity Investments Canada ULC

- i-Watch® Notice - Fidelity - Clearpath Enhancements - October 2015 (PDF)


Fidelity Investments Announces Departure of Portfolio Manager of Global Asset Allocation Fund

In January 2015, Fidelity Investments (Fidelity) announced that, effective January 30, 2015, Trevor Greetham, currently lead portfolio manager on the Global Asset Allocation Fund, will be leaving the firm. Kevin O’Nolan will join current co-portfolio manager Ayesha Akbar in the management of the Fund. The transition of portfolio management responsibilities will take place at close of business January 30, 2015. There is no change to the Fund’s investment style or objectives.

The Fidelity Global Asset Allocation Fund is the underlying fund for the Manulife Global Asset Allocation Fund (Fidelity) available on the Investment Watch (i-Watch®).

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards.

Jarislowsky Fraser limited

- i-Watch® Notice - Jarislowsky Fraser - Changes to the International Equity Fund - October 2015 (PDF)


Portfolio Manager updates

Effective February 1, 2015, Jarislowsky Fraser promoted several individuals within their Global Investment Team. Details are listed below:

Dan Hanson, CFA, Portfolio Manager, U.S. Equities, became a member of the Investment Strategy Committee (ISC), the firm’s central investment oversight body. The ISC is comprised of senior investment professionals and is responsible for approving all key investment decisions. Dan has been with the firm since 2013 and has 22 years of investment experience.

Kim White, CFA, stepped off the ISC but remains active in managing Fixed Income portfolios. Kim had contributed to the ISC for the past 15 years.

Stanley Wu, CFA, was promoted to Portfolio Manager, International Equities, and now co-manages international equities with Michel Brutti, Portfolio Manager, International Equities. Stanley is a member of the ISC and has been International Equity Manager since 2008. He joined the firm in 2005 as a Global Equity research analyst.

Charles Nadim, CFA, was promoted to Portfolio Manager, Canadian Equities, and now co-manages Canadian equities with Bernard Gauthier, Portfolio Manager, Canadian Equities. With 17 years of investment experience, Charles has been Canadian Equity Manager since 2012. He joined the firm in 2008 and has been both a North American and Global Equity research analyst.

Jeremy Schaal, CFA, was promoted to Associate Portfolio Manager, U.S. Equities, and now works closely with Dan Hanson. Jeremy joined the firm in 2005 and has been a North American Equity research analyst since 2007.

Given that the Jarislowsky Fraser funds are on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards

Personnel Update – promotions and new hires

Jarislowsky Fraser promoted several individuals within their investment teams and details are listed below:

Effective July 1, 2015, Drew Callander, CFA, was promoted to Partner. Drew is currently a Senior Research Analyst and is based in Toronto and has been with the firm since 2004.

Effective July 31, 2015, Marc Novakoff, CFA, Portfolio Manager, Global Equities, becomes a member of the Investment Strategy Committee (ISC). The ISC, the firm’s central investment oversight body, is comprised of senior investment professionals and is responsible for approving all key investment decisions. Marc has been with the firm since 2003 and has 13 years of investment experience.

The following are new hires within the investment teams: Christopher Knapp, CFA, joined the firm in January 2015 as a Research Analyst covering international equities and emerging markets. Prior to joining the firm, Chris spent five years as a Senior Research Analyst at a Chicago-based family office. He has a B.A. (Economics) from Yale University and an MBA from the University of Chicago Booth School of Business.

Scott Cochrane joined the firm in March 2015 as Associate, Alliances and Advisor Distribution, focused on working with the firm’s third party relationships. Prior to joining the firm, he was National Business Relationship Manager at The CUMIS Group. He has a BBA from Wilfrid Laurier University and the Certified Financial Planner (CFP) certification.

Shey Ylonen, CFA, joined the firm in May 2015 as Research Analyst covering international equities and emerging markets. Previously, Shey worked in corporate strategy and business development at Uranium One Inc., and as an equity research associate at TD Securities. He has a BBA (Honours) from Wilfred Laurier University.

Given that the Jarislowsky Fraser funds are on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm

Jarislowsky Fraser Announces Organizational Update to Canadian Equity Team

In February 2015, Jarislowsky Fraser Limited (Jarislowsky Fraser) announced that Charles Nadim has been promoted to Portfolio Manager, Canadian Equities, and will be co-managing Canadian Equities with Bernard Gauthier, Portfolio Manager, Canadian Equities. Mr. Nadim has been Canadian Equity Manager since 2012. He joined the firm in 2008 and has been both a North American and Global Equity research analyst.

The Jarislowsky Fraser Canadian Equity Fund is the underlying fund for the Manulife Canadian Equity Fund (Jarislowsky Fraser) available on the Investment Watch (i-Watch®).

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards.

HSBC

Invesco

Leith Wheeler

Manulife Asset Management

- i-Watch® Notice - MAM - Changes to MAM LDI Fund Benchmarks - December 2015 (PDF)
- i-Watch® Notice - MAM - Portfolio Solutions Group Changes - October 2015 (PDF)
- i-Watch® Notice - MAM - Changes to SLI index fund - October 2015 (PDF)
- i-Watch® Notice - MAM - Changes to SLI global & US dividend - September 2015 (PDF)
- i-Watch® Notice - MAM - Changes to SLI money market - September 2015 (PDF)


Manulife Asset Management Announces Important Changes to Investment Management Teams

The transaction to acquire Manulife’s Canadian operations closed on January 30, 2015, and the company is now part of Manulife. On May 28, 2015, as part of the planned integration process, Manulife Asset Management (MAM) implemented changes to some investment teams and capabilities. In general, these changes have retained a majority of the Montreal-based investment professionals and teams. Further, teams have been strengthened by the addition of experienced MAM portfolio managers. Additionally, Manulife’s i-Watch ® governance team is familiar with these portfolio managers and has monitored them regularly through their tenure at MAM.

MAM has offered expedited access to all the investment teams in the coming weeks. Our detailed assessment of these changes based on these meetings and inputs from our colleagues in the Manulife i-Watch ® governance teams will be reflected in the upcoming report cards. A brief summary of changes follows.

Effective May 28, 2015, the following funds and their underlying funds have had such changes take place:

  • Manulife Bond Fund (SLI)
  • Manulife Canadian Dividend Fund (SLMF)
  • Manulife Canadian Small-Cap Equity Fund (SLI)*
  • Manulife Canadian Value Equity Fund (SLI)
  • Manulife Diversified Fund (SLI)
  • Manulife Diversified Income Fund (SLMF)
  • Manulife Global Bond Fund (SLMF)
  • Manulife Long Term Bond Fund (SLI)*
  • Manulife Monthly Income Fund (SLMF)
  • Manulife Short Term Bond Fund (SLI)
  • Manulife Tactical Bond Fund (SLMF)
  • Manulife Tactical Income Fund (SLMF)
  • Manulife Diversified Tri-Plan Fund (SLI)
  • Manulife Equity Tri-Plan Fund (SLI)

* The following fund-of-funds are equally affected since they buy units of two of the funds listed above:

  • Manulife Target Date Fund series (Manulife)
  • Manulife Small Cap Portfolio Fund (Manulife)

The changes to the investment teams managing these funds are detailed below:

Fixed Income

The fixed income team responsible for all actively managed Canadian strategies will continue to be headed by Terry Carr, who is based in Toronto. Jean-Pierre D’Agnillo, Ara Froundjian and Jose Saracut have joined the team, expanding its membership to 14 investment professionals. This improves the depth of the professionals managing the Canadian fixed income strategies compared to the 10-person team who previously managed the strategies at SLI. Michel Pelletier, Maxime Gionet will be leaving the company. Marc Rouleau will be assuming a new role in the organization and will no longer be part of the Fixed Income team. The Manulife Bond Fund (SLI) and the Manulife Long-Term Bond Fund (SLI) will be co-managed by Terry Carr and Hosen Marjaee. The Manulife Short-Term Bond Fund (SLI) will be co-managed by Hosen Marjaee and Ara Froundjian. Terry Carr also assumes management of the tactical bond strategies.

On the global bond side, Ivan Francis will be leaving the company. The Manulife Global Bond Fund (SLMF) will be managed by Daniel Janis and Thomas Goggins of Manulife Asset Management (US) LLC and Kisoo Park of Manulife Asset Management (Hong Kong) Limited.

Canadian Equities

MAM has created a new, combined Canadian Fundamental Equity team with resources based in both Montreal and Toronto. The team will be led by Monika Skiba and encompasses 10 investment professionals. The team’s focus will continue to be on Core Canadian and Canadian Income / Dividend strategies exclusively. Steve Belisle and Marie-Eve Savard will become lead portfolio managers for the Manulife Canadian Dividend Fund (SLMF). Susan Da Sie will become lead portfolio manager for the Manulife Equity Tri-Plan Fund (SLI). Mark Pugsley and Philippe Capelle will be leaving the company.

The Canadian Small Cap strategy formerly managed by Mark Pugsley will be moved under the leadership of Ted Whitehead. MAM has moved the small cap strategy from a generalist team to a specialist team that focuses on small cap.

The Canadian Value Equity strategy formerly managed by Mark Pugsley will be moved to Alan Wicks’ team. The MAM Canadian Value team is an experienced group of eight investment professionals led by lead Portfolio Manager, Alan Wicks, who established the team in 1996.

Balanced

The overall investment strategy and asset allocation process is unchanged and going forward will leverage the global investment insights and capabilities of MAM.

The Canadian Asset Mix Committee will continue to establish the asset mix strategy for the Manulife Diversified Fund (SLI), Manulife Diversified Income Fund (SLMF), Manulife Tactical Income Fund (SLMF), Manulife Monthly Income Fund (SLMF) and the Manulife Diversified Tri-Plan Fund (SLI). Monika Skiba will chair the committee and Glen Martin will be responsible for the implementation of its decisions. This committee also includes Susan Da Sie and Terry Carr. Mr. Martin is supported by more than 25 experienced investment professionals located in Toronto, Boston and Hong Kong.

The membership of senior asset class professionals covers all relevant asset classes and sources of insight for Canadian-based asset allocation strategies.

Neil Matheson, who was handling the asset mix implementation of all balanced and diversified portfolios, is retiring and will be leaving MAM in the second half of the year after a smooth transition of his responsibilities.

The Manulife Diversified Fund (SLI) and Manulife Diversified Tri-Plan Fund (SLI) will continue to be managed under the same objectives and guidelines, and the overall investment strategy and asset allocation process will remain.

The investment strategy of these funds is comprised of four core asset classes, each of which will be managed as follows going forward:

  • The investment strategy of these funds are comprised of four core asset classes, each of which will be managed as follows going forward.
  • Susan Da Sie continues to manage the US equities portfolio by leveraging the insights of Manulife Asset Management US Core Value team in Boston. Following the announcement earlier this year, MAM expects that the US Core Value team will take over management of this portfolio directly under their US Large Cap Core Value Strategy over the next 3 – 6 months. This team, co-managed by portfolio managers Walter McCormick, Sandy Sanders and Jonathan White, have been working together for over a decade and average over 25 years of experience. The three portfolio managers in turn rely upon the six additional members of the team to perform research, generate ideas and uncover opportunities.
  • The International Equity portfolio is currently invested in a pooled vehicle managed by Manulife Investments Limited’s global equity team called the Manulife Asset Management Global Fund (formerly Manulife Global Fund). Over the next 3 – 6 months MAM expects to move this allocation to a Manulife Asset Management International Value Equity pooled fund managed by their International Value team, led by portfolio managers Wendell L. Perkins, Margaret (Peggy) A. McKay and Edward T. Maraccini. This team is located in Chicago, Illinois. Wendell, Peggy and Edward average 23 years of industry experience. The Strategy’s portfolio managers in turn rely upon the three additional members of the team to perform research, generate ideas and uncover opportunities.
Conclusion

All funds discussed in this update are on the Quality & Choice Investment Platform and monitored on an ongoing basis by Investment Program Team. The monitoring process includes regular complete due diligence meetings with fund managers. Additionally one-off meetings are scheduled to evaluate any possible impact of organizational changes such as this. MAM has offered expedited access to all the investment teams in the coming weeks. Our assessment of these changes, based on these meetings and inputs from our colleagues in the Manulife i-Watch ® governance teams will be reflected in the upcoming report cards.

Fund Name Previous Lead Managers New Lead Managers
Manulife Bond Fund (SLI) Michel Pelletier Terry Carr, Hosen Marjaee
Manulife Canadian Dividend Fund (SLMF) Neil Matheson, Steve Belisle Marie-Eve Savard, Steve Belisle
Manulife Canadian Small Cap Equity Fund (SLI) Mark Pugsley Ted Whitehead
Manulife Canadian Value Equity Fund (SLI) Mark Pugsley Alan Wicks
Manulife Diversified Fund (SLI) Neil Matheson, Susan Da Sie, Michel Pelletier Glen Martin, Susan Da Sie, Terry Carr, Hosen Marjaee
Manulife Diversified Income Fund (SLMF) Neil Matheson, Steve Belisle, Jean-Pierre D'Agnillo Glen Martin, Steve Belisle, Jean-Pierre D'Agnillo
Manulife Global Bond Fund (SLMF) Ivan Francis Dan Janis
Manulife Long-Term Bond Fund (SLI) Marc Rouleau Terry Carr, Hosen Marjaee
Manulife Monthly Income Fund (SLMF) Neil Matheson, Marie-Eve Savard, Jean-Pierre D'Agnillo Glen Martin, Marie-Eve Savard, Jean-Pierre D'Agnillo
Manulife Short Term Bond Fund (SLI) Ara Froundjian Ara Froundjian, Hosen Marjaee
Manulife Short Term Bond Fund (SLI) Marc Rouleau Terry Carr
Manulife Tactical Income Fund (SLMF) Neil Matheson, Steve Belisle, Jean-Pierre D'Agnillo Glen Martin, Steve Belisle, Jean-Pierre D'Agnillo
Manulife Diversified Tri-Plan Fund (SLI) Neil Matheson, Susan Da Sie, Michel Pelletier Glen Martin, Susan Da Sie, Terry Carr, Hosen Marjaee
Manulife Equity Tri-Plan Fund (SLI) Philippe Capelle Susan Da Sie

Mawer

Meritas

AllianceBernstein Hired as New Sub-Advisor to Meritas International Equity Fund

Effective April 10, 2015, OceanRock Investments appointed AllianceBernstein as the sub-advisor to the Meritas International Equity Fund.

AllianceBernstein has more than 40 years of experience in managing global investments and has over US$470 billion in assets under management. With AllianceBernstein’s commitment to delivering strong performance and responsible investing, OceanRock believes the sub-advisor will be able to perform in a variety of market environments and provide down-side protection in volatile periods.

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards.

MFS Investment Management Canada limited

MFS Corporate Events and changes

Effective January 1, 2015, the following senior management changes took place:

  • Mike Roberge, president and chief investment officer was promoted to co-chief executive officer (co-CEO). Mike will continue to report to Rob Manning, MFS' current chairman and chief executive officer focusing on the day-to-day management of MFS.
  • Rob Manning, will work alongside Mike as chairman and co-chief executive officer (co-CEO). Rob will continue to report to the Sun Life Board of Directors and will focus on the firm's overall strategic direction, working closely with MFS' clients and intermediaries around the world.
  • Kevin Beatty, director of Equity, North America, was promoted to chief investment officer, Global Equity, a newly created role that will assist in Mike Roberge's transition to Co-CEO. Kevin will report directly to Mike Roberge and will head up equity portfolio management and the firm's equity research divisions.
  • Bill Adams, MFS director of Fixed Income, was promoted to chief investment officer, Global Fixed Income, a newly created role also to assist in Mike Roberge's transition to Co-CEO. Bill will report directly to Mike and will head up the firm's fixed income portfolio management and fixed income research divisions.

On April 9, 2015, MFS announced that Tim Fagan, MFS' CCO, would resign at the end of May 2015. Tim made the decision to leave MFS to pursue a career in writing. Tim continued to serve in the CCO role until May 31, 2015.

On June 1, 2015, Brent Farmer, Vice President, Director of Corporate Risk and Compliance was appointed the interim CCO for the MFS Funds and for MFS. Brent held this role until July 13, 2015, when Marty Wolin was appointed Senior Vice President and Chief Compliance Officer.

  • Marty reports to Mark Polebaum, MFS' General Counsel on all compliance-related matters.
  • On July 15, 2015, the MFS Funds Board appointed Marty as the MFS Funds Chief Compliance Officer.

Given that several MFS funds are on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards


New Co-Manager of Canadian Fixed Income at MFS

We have been informed by MFS Investment Management of an update to their investment personnel. Effective immediately, Soami Kohly, a portfolio manager on the MFS Fixed Income team, will join portfolio manager and director of Fixed Income – Canada, Peter Kotsopoulos, on the portfolio management team for the strategies previously managed by Mr. Kotsopoulos and Paul Marcogliese. Mr. Marcogliese, a portfolio manager based out of the Toronto office, has left MFS to pursue other opportunities effective March 16, 2015.

The MFS Canadian Fixed Income Fund is the underlying fund for the Manulife Fixed Income Fund (MFS).

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards.

Pyramis

Russell Investments Canada limited

Third Avenue

T Rowe Price

Manulife Investments Inc.

- i-Watch® Notice - MAM - Changes to MAM LDI Fund Benchmarks - December 2015 (PDF)
- i-Watch® Notice - MAM - Portfolio Solutions Group Changes - October 2015 (PDF)
- i-Watch® Notice - MAM - Changes to SLI index fund - October 2015 (PDF)
- i-Watch® Notice - MAM - Changes to SLI global & US dividend - September 2015 (PDF)
- i-Watch® Notice - MAM - Changes to SLI money market - September 2015 (PDF)


Manulife Asset Management Announces Important Changes to Investment Management Teams

The transaction to acquire Manulife’s Canadian operations closed on January 30, 2015, and the company is now part of Manulife. On May 28, 2015, as part of the planned integration process, Manulife Asset Management (MAM) implemented changes to some investment teams and capabilities. In general, these changes have retained a majority of the Montreal-based investment professionals and teams. Further, teams have been strengthened by the addition of experienced MAM portfolio managers. Additionally, Manulife’s i-Watch ® governance team is familiar with these portfolio managers and has monitored them regularly through their tenure at MAM.

MAM has offered expedited access to all the investment teams in the coming weeks. Our detailed assessment of these changes based on these meetings and inputs from our colleagues in the Manulife i-Watch ® governance teams will be reflected in the upcoming report cards. A brief summary of changes follows.

Effective May 28, 2015, the following funds and their underlying funds have had such changes take place:

  • Manulife Bond Fund (SLI)
  • Manulife Canadian Dividend Fund (SLMF)
  • Manulife Canadian Small-Cap Equity Fund (SLI)*
  • Manulife Canadian Value Equity Fund (SLI)
  • Manulife Diversified Fund (SLI)
  • Manulife Diversified Income Fund (SLMF)
  • Manulife Global Bond Fund (SLMF)
  • Manulife Long Term Bond Fund (SLI)*
  • Manulife Monthly Income Fund (SLMF)
  • Manulife Short Term Bond Fund (SLI)
  • Manulife Tactical Bond Fund (SLMF)
  • Manulife Tactical Income Fund (SLMF)
  • Manulife Diversified Tri-Plan Fund (SLI)
  • Manulife Equity Tri-Plan Fund (SLI)

* The following fund-of-funds are equally affected since they buy units of two of the funds listed above:

  • Manulife Target Date Fund series (Manulife)
  • Manulife Small Cap Portfolio Fund (Manulife)

The changes to the investment teams managing these funds are detailed below:

Fixed Income

The fixed income team responsible for all actively managed Canadian strategies will continue to be headed by Terry Carr, who is based in Toronto. Jean-Pierre D’Agnillo, Ara Froundjian and Jose Saracut have joined the team, expanding its membership to 14 investment professionals. This improves the depth of the professionals managing the Canadian fixed income strategies compared to the 10-person team who previously managed the strategies at SLI. Michel Pelletier, Maxime Gionet will be leaving the company. Marc Rouleau will be assuming a new role in the organization and will no longer be part of the Fixed Income team. The Manulife Bond Fund (SLI) and the Manulife Long-Term Bond Fund (SLI) will be co-managed by Terry Carr and Hosen Marjaee. The Manulife Short-Term Bond Fund (SLI) will be co-managed by Hosen Marjaee and Ara Froundjian. Terry Carr also assumes management of the tactical bond strategies.

On the global bond side, Ivan Francis will be leaving the company. The Manulife Global Bond Fund (SLMF) will be managed by Daniel Janis and Thomas Goggins of Manulife Asset Management (US) LLC and Kisoo Park of Manulife Asset Management (Hong Kong) Limited.

Canadian Equities

MAM has created a new, combined Canadian Fundamental Equity team with resources based in both Montreal and Toronto. The team will be led by Monika Skiba and encompasses 10 investment professionals. The team’s focus will continue to be on Core Canadian and Canadian Income / Dividend strategies exclusively. Steve Belisle and Marie-Eve Savard will become lead portfolio managers for the Manulife Canadian Dividend Fund (SLMF). Susan Da Sie will become lead portfolio manager for the Manulife Equity Tri-Plan Fund (SLI). Mark Pugsley and Philippe Capelle will be leaving the company.

The Canadian Small Cap strategy formerly managed by Mark Pugsley will be moved under the leadership of Ted Whitehead. MAM has moved the small cap strategy from a generalist team to a specialist team that focuses on small cap.

The Canadian Value Equity strategy formerly managed by Mark Pugsley will be moved to Alan Wicks’ team. The MAM Canadian Value team is an experienced group of eight investment professionals led by lead Portfolio Manager, Alan Wicks, who established the team in 1996.

Balanced

The overall investment strategy and asset allocation process is unchanged and going forward will leverage the global investment insights and capabilities of MAM.

The Canadian Asset Mix Committee will continue to establish the asset mix strategy for the Manulife Diversified Fund (SLI), Manulife Diversified Income Fund (SLMF), Manulife Tactical Income Fund (SLMF), Manulife Monthly Income Fund (SLMF) and the Manulife Diversified Tri-Plan Fund (SLI). Monika Skiba will chair the committee and Glen Martin will be responsible for the implementation of its decisions. This committee also includes Susan Da Sie and Terry Carr. Mr. Martin is supported by more than 25 experienced investment professionals located in Toronto, Boston and Hong Kong.

The membership of senior asset class professionals covers all relevant asset classes and sources of insight for Canadian-based asset allocation strategies.

Neil Matheson, who was handling the asset mix implementation of all balanced and diversified portfolios, is retiring and will be leaving MAM in the second half of the year after a smooth transition of his responsibilities.

The Manulife Diversified Fund (SLI) and Manulife Diversified Tri-Plan Fund (SLI) will continue to be managed under the same objectives and guidelines, and the overall investment strategy and asset allocation process will remain.

The investment strategy of these funds is comprised of four core asset classes, each of which will be managed as follows going forward:

  • The investment strategy of these funds are comprised of four core asset classes, each of which will be managed as follows going forward.
  • Susan Da Sie continues to manage the US equities portfolio by leveraging the insights of Manulife Asset Management US Core Value team in Boston. Following the announcement earlier this year, MAM expects that the US Core Value team will take over management of this portfolio directly under their US Large Cap Core Value Strategy over the next 3 – 6 months. This team, co-managed by portfolio managers Walter McCormick, Sandy Sanders and Jonathan White, have been working together for over a decade and average over 25 years of experience. The three portfolio managers in turn rely upon the six additional members of the team to perform research, generate ideas and uncover opportunities.
  • The International Equity portfolio is currently invested in a pooled vehicle managed by Manulife Investments Limited’s global equity team called the Manulife Asset Management Global Fund (formerly Manulife Global Fund). Over the next 3 – 6 months MAM expects to move this allocation to a Manulife Asset Management International Value Equity pooled fund managed by their International Value team, led by portfolio managers Wendell L. Perkins, Margaret (Peggy) A. McKay and Edward T. Maraccini. This team is located in Chicago, Illinois. Wendell, Peggy and Edward average 23 years of industry experience. The Strategy’s portfolio managers in turn rely upon the three additional members of the team to perform research, generate ideas and uncover opportunities.
Conclusion

All funds discussed in this update are on the Quality & Choice Investment Platform and monitored on an ongoing basis by Investment Program Team. The monitoring process includes regular complete due diligence meetings with fund managers. Additionally one-off meetings are scheduled to evaluate any possible impact of organizational changes such as this. MAM has offered expedited access to all the investment teams in the coming weeks. Our assessment of these changes, based on these meetings and inputs from our colleagues in the Manulife i-Watch ® governance teams will be reflected in the upcoming report cards.

Fund Name Previous Lead Managers New Lead Managers
Manulife Bond Fund (SLI) Michel Pelletier Terry Carr, Hosen Marjaee
Manulife Canadian Dividend Fund (SLMF) Neil Matheson, Steve Belisle Marie-Eve Savard, Steve Belisle
Manulife Canadian Small Cap Equity Fund (SLI) Mark Pugsley Ted Whitehead
Manulife Canadian Value Equity Fund (SLI) Mark Pugsley Alan Wicks
Manulife Diversified Fund (SLI) Neil Matheson, Susan Da Sie, Michel Pelletier Glen Martin, Susan Da Sie, Terry Carr, Hosen Marjaee
Manulife Diversified Income Fund (SLMF) Neil Matheson, Steve Belisle, Jean-Pierre D'Agnillo Glen Martin, Steve Belisle, Jean-Pierre D'Agnillo
Manulife Global Bond Fund (SLMF) Ivan Francis Dan Janis
Manulife Long-Term Bond Fund (SLI) Marc Rouleau Terry Carr, Hosen Marjaee
Manulife Monthly Income Fund (SLMF) Neil Matheson, Marie-Eve Savard, Jean-Pierre D'Agnillo Glen Martin, Marie-Eve Savard, Jean-Pierre D'Agnillo
Manulife Short Term Bond Fund (SLI) Ara Froundjian Ara Froundjian, Hosen Marjaee
Manulife Short Term Bond Fund (SLI) Marc Rouleau Terry Carr
Manulife Tactical Income Fund (SLMF) Neil Matheson, Steve Belisle, Jean-Pierre D'Agnillo Glen Martin, Steve Belisle, Jean-Pierre D'Agnillo
Manulife Diversified Tri-Plan Fund (SLI) Neil Matheson, Susan Da Sie, Michel Pelletier Glen Martin, Susan Da Sie, Terry Carr, Hosen Marjaee
Manulife Equity Tri-Plan Fund (SLI) Philippe Capelle Susan Da Sie

Changes to the Investment Management Team of the Diversified Funds

On January 31, 2015, Manulife Investments Inc. (SLI) announced changes to the manager of the underlying funds composing their Diversified and Diversified Tri-Plan Funds.

Effective February 2, 2015, SLI, the current investment manager of the Manulife Diversified Fund and Manulife Diversified Tri-Plan Fund, intends to retain the services of its affiliate, Manulife Asset Management (US) LLC to act as sub-advisor for these two funds.

Given that this fund is on the Quality & Choice Investment Platform, the Investment Program Team has undertaken responsibility for the ongoing monitoring of this investment manager. As part of this process, we hold regular meetings with fund managers throughout the year where we discuss, amongst other things, items including this type of change. Furthermore, the Quality & Choice governance committee meets with the Investment Program Team on a regular basis to discuss the evaluation of the investment management firm. Rest assured that this event will be part of our assessment reflected in the report cards.