Compliance Memo

Compliance Memorandum 2012-04; Change of fund risk rankings: Manulife Mutual
Funds

For more information, contact:

Compliance Team
compliance@gpwealth.ca

Date Issued:

August 8, 2012

We have been advised by Manulife Mutual Funds that they have recently made changes to the
risk rankings of a number of their funds. The mutual funds affected are noted on page two of
this memo below.

As a best practice, the portfolios of any clients holding any of these funds should be reviewed
for continued suitability of their portfolios. At a minimum, the KYC and portfolio review must
take place prior to any new trades in the affected plans.

Where the existing holdings now exceed the client’s stated “Plan Risk Tolerance”,
recommendations should be made to rebalance the portfolio to bring it into agreement with the
Risk Tolerance, Investment Objectives and Time Horizon previously noted for the client’s plan.

We must caution advisors against updating risk tolerance of client plans to simply match new
risk ranking of the existing holdings in an effort to keep the affected plans onside of KYC.

As always, if you have any questions or comments, contact the Compliance Department by email at compliance@gpwealth.ca.