- Deal lifts Manulife's asset management franchise to Top 10 status in Malaysia.
- Allows investors to benefit from broadened access to offshore markets.
KUALA LUMPUR, Malaysia, Nov. 13, 2013 /CNW/ - Manulife Holdings Berhad ("MHB"), part of Canada-based Manulife Financial, today announced that it has entered into an agreement with MAA Group Berhad and other shareholders to acquire 100 per cent of its subsidiary MAAKL Mutual Bhd ("MAAKL"), one of Malaysia's successful unit trust companies. The deal is expected to close within the next two months, subject to regulatory approval. This acquisition will increase MHB's total assets under management to RM7 billion, elevating MHB's unit trust assets to become one of the Top 10 largest in the country.1
Group Chief Executive Officer of Manulife Holdings Berhad, Mark O' Dell, commented: "This acquisition gives us an excellent opportunity to accelerate Manulife Asia's growth strategy in Malaysia. Malaysia's working age population is expected to remain approximately 60 per cent2 of its total population over the next 40 years which, fueled by growth in savings and income together with increasing financial literacy, clearly indicates an increasing demand for investment products."
Mr. O'Dell added: "The professionalism and commitment of MAAKL's unit trust advisers in earning their customers' trust are impressive. Their success highlights that there is a market need for professional investment advice and retirement planning. We aim to build on their strong foundation over the coming years and are pleased to welcome all of MAAKL's unit trust advisers to our family of over 50,000 agents across Asia. We trust that they will benefit and further enhance their success by leveraging on Manulife's expertise in agency distribution and by providing access to world class global investment management through our asset management arm, Manulife Asset Management."
Incorporated in October 2000, MAAKL currently offers 27 unit trust funds, 10 of them being Islamic funds and 19 are Employees Provident Fund approved funds, with a total net asset value of RM2.47 billion.3 MAAKL is currently ranked at 9th position4 in the private unit trust industry in terms of total fund size, and distributes its funds via a direct sales force of more than 1,100 unit trust advisers.
Most of the investment management responsibility for MAAKL's funds will be transferred to Manulife Asset Management Services Berhad ("MAMSB"), a wholly owned MHB subsidiary, subject to regulatory approval. MAAKL's operations are expected to merge with MAMSB after completion of the transaction.
Michael Dommermuth, President, International Asset Management for Manulife Asset Management said: "Manulife Asset Management believes in on-the-ground presence, which provides us with local intelligence and allows us to establish expertise in specialist fields, such as our Islamic finance capabilities in Malaysia and Indonesia and our Renminbi bond expertise in Greater China. That is why we have a vast network of investment professionals across 17 countries and territories." Mr. Dommermuth went on to add that: "We are in a low interest rate era and there are no purely domestic solutions for achieving a well-diversified investment portfolio to allow for efficient deployment of investors' assets. Therefore, some foreign investing is beneficial. With this transaction extending the reach of our asset management franchise here in Malaysia, we look forward to leveraging our global expertise to bring a broad spectrum of equity, fixed income and asset allocation solutions to local investors."
1Based on pro-forma Lipper rankings of all private unit trust funds in Malaysia as at 30 September 2013. Manulife Holdings Berhad unit trust assets are the aggregate of MAMSB and MAAKL's combined AUM.
2 Source: Manulife Asset Management - Aging Asia Report 2.
3Source: MAAKL Mutual Bhd as at 30 September 2013.
4 Source: Lipper IM as at 30 September 2013.
About Manulife Malaysia
Manulife Holdings Berhad is part of Canada-based Manulife Financial Corporation. Through its subsidiary companies, Manulife Malaysia offers an innovative range of financial protection, health and wealth management products and services to meet different customer needs. Manulife Malaysia currently serves the needs of over 293,000 policyholders and wealth management customers. Manulife Holdings Berhad has been listed on the Main Board of Bursa Malaysia since 1984. As at September 30, 2013 its assets under management were over RM4.0 billion. Manulife Malaysia can be found on the Internet at manulife.com.my.
About Manulife Asset Management Services Berhad
Manulife Asset Management Services Berhad (MAMSB) (formerly known as Manulife Unit Trusts Berhad) is a wholly owned subsidiary of Manulife Holdings Berhad, which is majority, owned by Canada-based Manulife Financial Corporation. MAMSB operates under the brand name of Manulife Asset Management and holds Capital Markets Services License for fund management, dealing in securities restricted to unit trusts and dealing in private retirement schemes, under the Capital Markets & Services Act 2007.
About MAAKL Mutual Bhd
MAAKL (pronounced 'mac kle') offers a comprehensive range of 27 unit trust funds in the asset classes of equity, fixed income and money market. MAAKL, led by a highly experienced senior management team, is well-positioned to build the most professional unit trust force in the country. MAAKL's award-winning MHO Mobile application is now available on the iPad, iPhone, BlackBerry and Android Smartphones. MHO Mobile empowers investors to monitor and manage their unit trust investments at anytime, from anywhere. Visit MAAKL online at www.maaklmutual.com.my
About Manulife Asset Management
Manulife Asset Management is the global asset management arm of Manulife Financial, providing comprehensive asset management solutions for institutional investors and investment funds in key markets around the world. This investment expertise extends across a broad range of public, private, and alternative asset classes, as well as asset allocation solutions. As at September 30, 2013, assets under management for Manulife Asset Management were C$265 billion (US $258 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 Financial
Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Clients look to Manulife for strong, reliable, trustworthy and forward-thinking solutions for their most 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 Financial and its subsidiaries were C$574.6 billion (US$558.7 billion) as at September 30, 2013. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.
Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at manulife.com.
Manulife Holdings Berhad
Tel: (03) 2719 9228 (ext 688)
Fax: (03) 2094 8139
Manulife Financial Corporation
Manulife Financial, Regional
Tel: (852) 2202-1749
Manulife Asset Management
Manulife Asset Management
Tel: +852 2202 1965
SOURCE: Manulife Financial
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