Manulife Financial Corp. has signed an agreement to buy the Canadian retail investment fund business of AIC Ltd., a private company controlled by billionaire Michael Lee-Chin.

3-month TSX chart for Manulife Financial The companies didn't disclose the price of the deal, which is subject to regulatory approval.

AIC, based in Burlington, Ont., has about $3.8 billion in mutual fund assets under management. Manulife said Wednesday the deal will boost its mutual fund assets to about $13.7 billion.

"This is a great fit for Manulife and AIC Limited," said Paul Rooney, CEO of Manulife Canada. "When coupled with Manulife's solid wealth management services, this agreement will strengthen our already strong product line-up that meets the needs of investors and their advisors."

Lee-Chin, ranked 701st on Forbes magazine's 2009 list of the world's billionaires, acquired AIC in 1987, when it had less than $1 million in assets under management. He currently controls AIC through Portland Holdings Inc., a privately held company with investments in a variety of industries.

"This sale reflects our overall strategy to return to our roots of managing money and concentrate on our investment advisory services," Lee-Chin said in a news release.

"We are committed to ensuring our clients continue to receive high-quality service and are very pleased that Manulife Financial is the purchaser of our retail fund business since they share our passion for providing advisors and clients with a broad array of products and services," he said.

Shares of Manulife closed up 23 cents to $22.42 on the Toronto Stock Exchange.