Mr. Tom Nunn reports

MANULIFE MUTUAL FUNDS STREAMLINES FUND FAMILY

Manulife Mutual Funds, a division of Manulife Financial Corp.'s Manulife Asset Management Ltd., is undertaking a number of fund mergers and closures in October and November, 2010, to streamline and enhance its fund lineup.

"Following the acquisition of the AIC retail mutual fund business in September, 2009, Manulife Mutual Funds conducted a thorough review of all fund mandates with the goal of providing advisers and their clients a stronger, more efficient and focused product offering. As a result of this analysis, a number of fund mergers were recommended to eliminate funds with similar mandates, achieve greater economies of scale and concentrate resources to better serve the interests of investors," said Jeff Ray, assistant vice-president, mutual fund products.

Amalgamation of AIC Corporate Fund Inc. and Manulife Investment Exchange Funds Corp. (MIX) (on or about Oct. 23, 2010)

In an effort to create a stronger corporate class structure and to allow for tax-deferred switching between the AIC and Manulife corporate classes, the two separate corporate class structures will be amalgamated on a tax-deferred basis into a single corporate entity. A special meeting will be held on or about Oct. 13, 2010, for securityholders of the AIC corporate classes to vote on this matter, and, subject to securityholder and regulatory approvals, the amalgamation is expected to take place on or about Oct. 23, 2010. The independent review committee has provided its approval for the amalgamation.

Corporate class mergers (on or about Oct. 23, 2010)

Manulife Mutual Funds has also received approval from its independent review committee for the following tax-deferred corporate class mergers. Approval of securityholders of the continuing corporate classes is required, and approval of the securityholders of the AIC corporate classes to amalgamate AIC Corporate Fund with Manulife Investment Exchange Funds is also required. Special meetings involving these corporate classes will be held on or about Oct. 13, 2010, to approve the mergers and amalgamation. Subject to receipt of securityholder and any required regulatory approvals, and, where applicable, the amalgamation of AIC Corporate Fund and Manulife Investment Exchange Funds, the corporate class mergers are expected to be completed on or about Oct. 23, 2010.

                       CORPORATE CLASS MERGERS                       

Terminating fund                  Continuing fund

Manulife Value Class (formerly    Manulife U.S. Opportunities Class
AIC Value Corporate Class)        (formerly AIC American Focused
                                  Corporate Class)

Manulife Canadian Money Market    Manulife Short-Term Yield Class
Class (formerly AIC Money Market
Corporate Class)

Manulife Global Core Class        Manulife Global Opportunities Class

Manulife Total Global Equity      Manulife Global Opportunities Class
Class (formerly SEAMARK Total
Global Equity Class)

Manulife U.S. Large Cap Value     Manulife U.S. Opportunities Class
Class                             (formerly AIC American Focused
                                  Corporate Class)

Manulife U.S. Mid-Cap Value       Manulife U.S. Opportunities Class
Class                             (formerly AIC American Focused
                                  Corporate Class)

Tax-deferred trust fund mergers (on or about Nov. 19, 2010)

Manulife Mutual Funds has received approval from its independent review committee for the following trust fund mergers. While securityholders of the terminating funds listed in the table entitled, "Tax-deferred trust fund mergers," did not have to approve the mergers, each securityholder of a terminating fund will be provided with advanced notice of the mergers in accordance with applicable securities laws. These fund mergers are expected to be completed on or about Nov. 19, 2010.

                  TAX-DEFERRED TRUST FUND MERGERS               

Terminating fund                  Continuing fund

Manulife Canadian Stock Fund      Manulife Canadian Value Fund
(formerly AIC Canadian Equity
Fund)

Manulife Balanced Fund (formerly  Manulife Monthly High Income Fund
AIC Canadian Balanced Fund)

Manulife Global Balanced Fund     Manulife Global Opportunities
(formerly AIC Global Balanced     Balanced Fund
Fund)

Manulife Dividend Income Fund     Manulife Dividend Fund
(formerly AIC Dividend Income
Fund)

Manulife Global Fixed Income      Manulife Strategic Income Fund
Fund (formerly AIC Global Fixed
Income Fund)

Manulife Global Bond Fund         Manulife Strategic Income Fund
(formerly AIC Global Bond Fund)

Manulife Canadian Money Market    Manulife Money Fund
Fund (formerly AIC Money Market
Fund)

Manulife Leaders Income           Manulife Leaders Balanced Income
Portfolio (formerly Value         Portfolio (formerly Value Leaders
Leaders Income Portfolio)         Balanced Income Portfolio)

Manulife Growth & Income Fund     Manulife Monthly High Income Fund

Manulife Core Balanced Fund       Manulife Monthly High Income fund

Taxable trust fund mergers (on or about Nov. 19, 2010)

Manulife Mutual Funds has also received the independent review committee's recommendation to merge the trust funds listed in the table entitled, "Taxable trust fund mergers." Regulatory approvals and approvals by the securityholders of the terminating funds are required to complete these mergers. Special meetings will be held on or about Oct. 13, 2010, to approve the mergers involving these funds. Subject to receipt of all necessary approvals, these fund mergers are expected to be completed on or about Nov. 19, 2010.

                     TAXABLE TRUST FUND MERGERS                        

Terminating fund                  Continuing fund

Manulife Global Wealth            Manulife Global Advantage Fund
Management Fund (formerly AIC     (formerly AIC Global Advantage Fund)
Global Wealth Management Fund)

Manulife American Small to        Manulife U.S. Mid-Cap Fund
Mid-Cap Fund (formerly AIC
American Small to Mid-Cap Fund)

Manulife Global Dividend Fund     Manulife Global Dividend Income Fund
                                  (formerly AIC Global Premium Dividend
                                  Income Fund)

Manulife U.S. Value Fund          Manulife U.S. Opportunities Fund
                                  (formerly AIC American Focused Fund)

Effective as of the close of business on or about Oct. 18, 2010, in the case of a merger between two corporate classes, and on or about Nov. 15, 2010, in the case of a merger between two mutual fund trusts, each terminating fund will cease distribution of new securities (except purchases under existing preauthorized chequing plans and dollar-cost-averaging plans). Securityholders will have the right to redeem the securities of each terminating fund up to the close of business on the merger date in the case of a merger between two mutual fund trusts, and up to close of business on or about the business day prior to the merger date in the case of a merger between two corporate classes. Following the merger, preauthorized chequing plans, systematic withdrawal plans and dollar-cost-averaging plans that had been established with respect to a terminating fund will be re-established with respect to the continuing fund unless securityholders advise otherwise. Each terminating fund is intended to be wound up on or as soon as possible after the merger date.

Fund closures

Manulife Leaders Income Portfolio (formerly Value Leaders Income Portfolio) (Class T4 only)

Manulife Mutual Funds will terminate Class T4 securities of the Manulife Leaders Income Portfolio on or about Nov. 19, 2010.

Manulife U.S. Money Market Fund (formerly AIC U.S. Money Market Fund)

Manulife Mutual Funds will also cap all retail series of the Manulife U.S. Money Market Fund, including systematic transfers, effective immediately. The fund will be terminated on or about Nov. 19, 2010.