Manulife Asset Management Expands Client Solutions Through Recently-Added LDI Capabilities
26 Feb, 2015, 14:55 ET
- Institutional clients' needs supported by strong quantitative team
- Liability Driven Investing assets now exceed US$10 Billion
TORONTO, MONTREAL and BOSTON, Feb. 26, 2015 /PRNewswire/ -- Manulife Asset Management has significantly expanded its liability driven investing (LDI) capabilities as a result of Manulife's acquisition of the Canadian operations of Standard Life, which closed late last month. The combination of the two firms means that clients now have access to an array of new products in addition to Manulife Asset Management's existing strengths in asset allocation solutions.
"Liability driven investing is of great interest to defined benefit pension plans and other institutions as they seek to de-risk their plans in a strategic manner," said Barry Evans, Global Chief Operating Officer and President, Manulife Asset Management, U.S. "Manulife's acquisition combines two teams with insurance and risk management in their DNA, ready to provide a full spectrum of offerings, from pooled vehicles to customized managed solutions for the larger end of the market. We now bring to the table dedicated LDI capabilities with a deep quantitative focus and strong actuarial depth, managing assets that exceed US$10 billion."
Under the leadership of Roger Renaud – now President, Canada, for Manulife Asset Management – Standard Life Investments' Canadian business significantly developed its LDI solutions to meet the risk management needs of defined benefit pension plans and other clients.
"For us, LDI is a framework for solutions to which we bring a multi-asset reach in a holistic, yet customized, risk management approach that extends beyond fixed income alone. We are excited to work with clients on this, and we also see a lot of appetite on their part for Outsourced Chief Investment Officer (OCIO) services," said Emmanuel Matte, head of the Global Investment Solutions Team.
"We are pleased by these new opportunities to expand our product offerings for our clients," said Claude Turcot, head of the Quantitative team managing LDI mandates. "Our team of actuarial and investment experts has been providing de-risking strategies since the 1990's and is looking forward to bringing these solutions to Manulife's clients around the globe."
Manulife Asset Management's existing asset allocation solutions are a complementary fit with capabilities the new team brings to the firm. Those include:
- Manulife Asset Management's asset allocation team, the Portfolio Solutions Group (PSG), which manages US$113 billion in asset allocation portfolios worldwide,* including Target Date and Target Risk funds.
- Manulife Asset Management created and patented Target De-Risking Funds, a suite of funds for small- and mid-sized pension plans, akin to LDI, that match evolving funded status with an appropriate pre-determined investment strategy. The funds and the underlying de-risking model were awarded a patent last year from the United States Patent and Trademark Office. Another patent is pending in Canada.
- In Asia, PSG expanded its global footprint into the retail space, launching a series of dynamic asset allocation funds in Singapore, the Philippines, Malaysia and Taiwan.
- Manulife's Passive Investment Desk manages more than C$40 billion in assets covering 11 unique indexes globally. Alongside these products, the team also provides custom index solutions based on client needs.
Manulife clients are also able to benefit from customized solutions through access to potentially higher yielding real private asset investment strategies such as commercial real estate, oil and gas, timberland, farmland and biomass renewable energy. Manulife's wide array of private asset strategies also includes fixed income diversification strategies such as commercial mortgages and private placement debt, as well as mezzanine financing. Private asset strategies are offered through Manulife Asset Management Private Markets.
* All figures are as at December 31, 2014
About Manulife Asset Management
Manulife Asset Management is the global asset management arm of Manulife, providing comprehensive asset management solutions for investors. This investment expertise extends across a broad range of public and private asset classes, as well as asset allocation solutions. As at December 31, 2014, assets under management for Manulife Asset Management were approximately C$321 billion (US$277 billion).
Manulife Asset Management's public markets units have investment expertise across a broad range of asset classes including public equity and fixed income, and asset allocation strategies. Offices with full investment capabilities are located in the United States, Canada, the United Kingdom, Japan, Hong Kong, Singapore, Taiwan, Indonesia, Thailand, Vietnam, Malaysia, and the Philippines. In addition, Manulife Asset Management has a joint venture asset management business in China, Manulife TEDA. The public markets units of Manulife Asset Management also provide investment management services to affiliates' retail clients through product offerings of Manulife and John Hancock. John Hancock Asset Management and Declaration Management and Research are units of Manulife Asset Management.
Additional information about Manulife Asset Management may be found at ManulifeAM.com.
About Manulife Asset Management Private Markets
Manulife Asset Management Private Markets has investment expertise in several private asset classes, including commercial real estate, timberland and farmland, biomass renewable energy, oil and gas, private equity and mezzanine debt. Manulife Asset Management Private Markets also partners with Manulife's specialized private asset investment teams to invest in private placement debt and commercial mortgages. Hancock Natural Resources Group, Manulife Real Estate, John Hancock Real Estate, NAL Resources, Regional Power, Manulife Capital, and Hancock Capital Management are units of Manulife Asset Management Private Markets. As at December 31, 2014, Manulife's assets under management in private asset classes were C$83 billion (US$71 billion), including assets managed by and for Manulife's general fund and external clients. Additional information may be found at ManulifeAM.com/PrivateMarkets.
Manulife Asset Management Private Markets recently acquired Standard Life Investments (Real Estate) Inc., now known as Manulife Asset Management Private Markets (Canada) Corp., and is in the process of transitioning them fully into our business operations. Unless otherwise specified, information for Manulife Asset Management Private Markets globally may not apply to Manulife Asset Management Private Markets (Canada) Corp.
Manulife is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. We operate as John Hancock in the U.S. and as Manulife in other parts of the world. We provide strong, reliable, trustworthy and forward-thinking solutions for our customers' significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife and its subsidiaries were approximately C$691 billion (US$596 billion) as at December 31, 2014.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife can be found on the Internet at manulife.com.
SOURCE Manulife Asset Management
For further information: Beth McGoldrick, [email protected], (617) 663-4751; Brian Carmichael, [email protected], (617) 663-4748, http://www.manulife.com
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