- Assets under management reached CAD$434.7 billion as of June 30, 2016
- Continued strong long-term performance across most asset classes
- Senior appointments demonstrate significant distribution and investment expansion
- Thought leadership provides meaningful analysis of Brexit
TORONTO and BOSTON, Sept. 13, 2016 /CNW/ -- Manulife Asset Management, the investment management arm of Manulife (TSX, NYSE: MFC), generated CAD$6.1 (US$4.6) billion gross and CAD$2.4 (US$1.8) billion net in institutional new sales globally in the first half of 2016.1
Assets managed by Manulife Asset Management reached CAD$434.7 (US$334.2) billion as of June 30, 2016.2 Institutional assets managed by Manulife Asset Management reached CAD$73.9 (US$56.8) billion at June 30, 2016, over 14% higher than a year ago.
"We continue to grow our wealth and asset management business by delivering solutions that meet our clients' needs," said Warren A. Thomson, Chairman of Manulife Asset Management. "I was delighted to see Manulife Asset Management increase its ranking from 32nd to 28th place in Pensions & Investments' institutional money manager survey this spring."3
"Now, more than ever, we see opportunity in leveraging Manulife's 100-plus years of expertise in risk and liability management," said Kai Sotorp, President and CEO, Manulife Asset Management. "Market volatility and a prevailing low yield environment speak to leveraging our private markets and active management capabilities for outcome-oriented solutions. Many investors seek alternatives to low yield bonds and greater certainty in attaining their long-term investing objectives."
At June 30, 2016, funds managed by Manulife Asset Management had 98 Four- or Five-Star Morningstar rated funds,4 an increase of three funds since December 31, 2015.
The firm continued to provide investors globally with strong investment results with two-thirds of our asset classes outperforming their benchmarks and peers on a 3- and 5-year basis.5
New mandates year-to-date include:
- Awarded CAD$575 million in a custom LDI mandate from a Canadian corporation.
- US$385 million funded in Strategic Fixed Income across five US clients.
- US$380 million funded in US Core Plus Fixed Income across a sub-advisory mandate and a defined contribution separate account mandate.
- US$340 million funded in Japan Core Fixed Income Active from a Japanese government client.
- US$265 million funded in Strategic Fixed Income from a Japanese pension fund.
- US SMA sales of over US$412 million.
In May, Manulife US Real Estate Investment Trust (REIT) began trading on the Singapore Exchange Securities Trading Limited (SGX) with US$519 million AUM.6 The Manulife US REIT demonstrates our ability to create innovative solutions that meet the needs of our customers globally. The launch supports our strategy to expand our presence in Asia, and reinforces Manulife Real Estate's reputation as a world-class real estate investment manager.
"The launch of our Singapore REIT in May was a seminal event, being the first Asian REIT with a pure-play US office property focus. We brought an attractive yield strategy to our clients in that region, demonstrating the strength of leveraging our boutique investment approach," said Mr. Sotorp. "We will similarly develop innovative investment solutions in public securities, ranging from expanding our liability-driven investment platform, where we recently won a CAD$575 million mandate in Canada, to Liquid Alternatives. To lead our expansion in the latter we recently appointed Chris Fellingham to the newly created role of Global Head of Liquid Alternatives."
In the first half of 2016, Manulife Asset Management announced the following:
- Frances Donald was named Senior Economist. She plays a key role in Manulife Asset Management's Canadian and Asian economic analysis and forecasting activities.
- Diana Stockwell was named Head of Latin American Sales and Relationship Management, supporting the firm's distribution initiative there.
- Nadine Chakar was named Global Head of Operations and Data Management, Investment Division. She is responsible for directing global operations for Manulife's Investment Division, including operations supporting Manulife Asset Management.
- Marco Zanuso was named Head of Distribution, EMEA ex UK. He oversees a team of distribution specialists building business relationships with institutional and wholesale clients.
- James Wheeler was named Head of Sales and Relationship Management, Nordics and the Netherlands. He oversees business development in those strategically important markets.
- Othman Domiati was named Head of Sales and Relationship Management, Middle East. He is responsible for the firm's sales efforts in that region.
- Roger Renaud was appointed Global Chief Operating Officer, bringing his wealth of expertise and deep knowledge of global asset management practices to the role.
- Alan Burnett was named Head of Wholesale Sales and Relationship Management, UK & Ireland. Alan focuses on the evolving needs of fund buyers in the wholesale markets in the UK and Ireland.
- Martin Powis was named Head of Institutional Sales and Relationship Management, UK & Ireland. He oversees the development of relationships with corporate and public pension funds.
- Chris Fellingham was named Head of Liquid Alternative Strategies. He is leading the expansion of the firm's range of absolute return and outcome-oriented capabilities, including stand-alone and multi-asset class strategy solutions.
Megan Greene, Manulife Asset Management's Chief Economist, wrote an immediate analysis of the UK's surprise decision to give up its EU membership. In the note, she reiterated that Brexit is unlikely to be an unmitigated disaster for the United Kingdom, and outlined the medium and long-term challenges ahead, not just for the UK, but also for Europe. It was one of the most-read analyses published by the firm in the last year.
Ms. Green and Frances Donald, Manulife Asset Management's Senior Economist, also wrote an in-depth Brexit report in mid-July. The interactive report provided answers to frequently asked questions and included relevant upcoming events for readers to keep in mind as they follow Brexit developments and their impact in Europe and beyond.
In April, Paul Boyne, who leads the firm's Global Equity Strategy, made a strong case in his note Investing in Quality Companies: Why Excellence Matters. The report discusses the disconnect in valuation between firms that are deemed to be exciting to investors, as opposed to those thought of as solid but boring. He outlines why being "boring" could be a good way of capturing upside potential while limiting downside risks.
Kathryn Langridge, Global Head of Global Emerging Market Equities authored Emerging Markets Equity Investing, Past, Present and Future: Meeting the Challenge. The report outlines the various ways the emerging markets universe is likely to evolve over the next 15 years, especially the expanded role that China is likely to play, and the implications on asset allocation.
The paper Absolute Return — Identifying Opportunities in Inefficient Markets looks at absolute return strategies, which by definition aim to deliver positive returns to investors regardless of market conditions. The paper also turned the spotlight on the Asian Fixed Income market and examines whether the absolute return framework could create opportunities for investors who might be looking to diversify their portfolio.
1 All figures Canadian dollars, as of June 30, 2016, unless otherwise noted.
2 Information shown represents advised and sub-advised, public and private assets as of 6/30/2016 managed by Manulife Asset Management (Manulife AM) and certain of its affiliates on behalf of Manulife AM, its clients, and the general accounts of the insurance company affiliates of Manulife AM. Manulife AM assets under management include assets of Manulife TEDA Fund Management Company Ltd.'s 49% joint venture ownership structure. The methodologies used to compile the total assets under management are subject to change.
3 2015's ranking was among 604 global asset management firms. Pensions & Investments, May 30, 2016 (Ranking based on assets under management, as of Dec. 31, 2015, in US dollars. 2014's ranking was among 656 global asset management firms. Qualifying firm AUM must include assets for U.S. tax-exempt institutions. Manulife Asset Management (Manulife AM) AUM shown represents advised and sub-advised, public and private assets managed by Manulife AM and certain of its affiliates on behalf of Manulife AM, its clients, and the general accounts of the insurance company affiliates of Manulife AM. Manulife AM assets under management include assets of Manulife TEDA Fund Management Company Ltd.'s 49% joint venture ownership structure. The methodologies used to compile the total assets under management are subject to change.
4 Funds managed by Manulife Asset Management may be distributed by certain of its affiliates. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return that accounts for variation in a fund's monthly performance (including effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category, the next 22.5%, 35%, 22.5% and bottom 10% receive 5, 4, 3, 2 or 1 star, respectively. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance associated with its 3-, 5- and 10 year (if applicable) Morningstar Rating metrics. Past performance is no guarantee of future results. The overall rating includes the effects of sales charges, loads and redemption fees, while the load-waived does not. Load-waived rating for Class A shares should only be considered by investors who are not subject to a front-end sales charge.
5 Past performance does not guarantee future results.
6 Not currently offered to US investors.
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 June 30, 2016, assets under management for Manulife Asset Management were approximately C$435 billion (US$334 billion, GBP£252 billion, EUR€303 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 and oil and gas. Manulife Asset Management Private Markets also partners with Manulife's specialized private asset investment teams to invest in private placement debt, commercial mortgages, private equity and mezzanine debt. 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 June 30, 2016, Manulife's assets under management in private asset classes were C$102 billion (US$78 billion), including assets managed by and for Manulife's general fund and external clients.
Additional information may be found at ManulifeAM.com/PrivateMarkets.
Manulife Financial Corporation is a leading international financial services group providing forward-thinking solutions to help people with their big financial decisions. We operate as John Hancock in the United States, and Manulife elsewhere. We provide financial advice, insurance and wealth and asset management solutions for individuals, groups and institutions. At the end of 2015, we had approximately 34,000 employees, 63,000 agents, and thousands of distribution partners, serving 20 million customers. At the end of June 2016, we had $934 billion (US$718 billion) in assets under management and administration, and in the previous 12 months we made more than $25.4 billion in benefits, interest and other payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 100 years. With our global headquarters in Toronto, Canada, we trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong. Follow Manulife on Twitter @ManulifeNews or visit www.manulife.com or www.johnhancock.com.
SOURCE Manulife Asset Management
For further information: Beth McGoldrick, 617-663-4751, [email protected], http://www.manulife.com