Manulife Financial Corporation closed the deal Friday on its purchase of AIC's Canadian retail fund business, and will assume management control of the new assets on a phased basis, between October and January next year.

Michael Lee Chin's Portland Investment Counsel Inc, formerly known as AIC Investment Services Inc, will, as part of the deal, act as sub-advisor on 18 AIC and Copernican branded funds.

Third Avenue Management and Brookfield Redding will also remain as sub-advisors, Manulife said, but it will be taking over funds now managed by Ariel Investments and Loomis Sayles on January 11.

Part ownership

The deal gives Lee Chin part ownership in Manulife Financial, but the parties remained mum on the details including the percentage share involved.

"The transaction between AIC and Manulife Financial was a private transaction, hence, we have no comment on the matter," said a Portland Investment Counsel spokeswoman Tuesday, responding to Wednesday Business' queries.

A release issued by Manulife said "securities exchangeable into common shares of Manulife Financial Corporation will be issued in satisfaction of the purchase price".

The company also said the transaction was "expected to be accretive to Manulife earnings", suggesting it expected a positive boost to its bottomline and higher earnings per share from the deal.

Strengthening transaction

The transaction grows Manulife Canada's assets by 38 per cent to an estimated C$13.9 billion.

"When coupled with Manulife's solid wealth management services, this transaction strengthens our previously deep product line-up that meets the needs of investors and their advisors," said Manulife Canada president and CEO, Paul Rooney.

Still Canada remains a small part of the Manulife's global operation which at June 2009 had C$421 billion (US$362 billion) of funds under management.

According to Rooney, the deal will give AIC's clients access to a broader platform of insurance, banking and wealth products and services.

lavern.clarke@gleanerjm.com