Manulife Financial Corporation announced that it has closed the transaction to purchase AIC’s Canadian retail investment fund business.

With the close of the transaction, Manulife Mutual Funds, a Division of Elliott and Page Limited, will become the manager of AIC funds in Canada and Portland Investment Counsel (formerly AIC Investment Services) will continue as a fund sub-advisor for certain AIC funds.

Manulife says the acquisition of AIC funds creates significant scale and presence for the company in the Canadian retail investment fund market. Overall retail fund assets under management for Canadians will grow 38 per cent to approximately $13.9 billion, based on latest industry figures.

MFC Global Investment Management will provide portfolio management services for most of the broadened fund family, while Portland Investment Counsel, Third Avenue Management and Brookfield Redding will remain as sub-advisors for a range of funds.