HONG KONG and TORONTO, Sept. 10, 2015 /CNW/ - Standard Chartered and Manulife are pleased to announce that they have entered into a 15-year distribution partnership providing Manulife the exclusive right to offer its Mandatory Provident Fund ("MPF") product to Standard Chartered's customers in Hong Kong. As part of the arrangement, Manulife will acquire Standard Chartered's existing MPF and Occupational Retirement Schemes Ordinance ("ORSO") businesses, and the related investment management entity.
The partnership further enhances Standard Chartered's wealth offering and the bank's position as a leading distributor of wealth management products in Hong Kong. It will provide Standard Chartered's individual and business customers in Hong Kong with greater investment choice, access to market leading technology platforms and high-quality customer service. This arrangement significantly expands Manulife's pension business in Hong Kong, and strengthens its position as the #2 MPF provider as measured by assets under management and the #1 MPF provider as measured by net cash flows.1
Judy Hsu, Group Head, Wealth Management, Standard Chartered, said: "We are delighted to partner with Manulife, a leading provider of retirement funds in Hong Kong. The partnership demonstrates our commitment to provide our clients with a holistic proposition, including retirement services, to meet their financial goals. It is a further step in executing on our global wealth strategy, to leverage our strong franchise and distribution network to deliver quality wealth solutions to our clients."
Roy Gori, President and CEO, Manulife Asia, said: "This partnership between two of Hong Kong's top financial services companies will enable us to increase value to customers and deliver the benefits of economies of scale. The MPF industry in Hong Kong is experiencing continued consolidation, and Manulife is seen as a partner of choice. Manulife is a major player in the pension business in Hong Kong, Canada, the United States, and Indonesia. This deal complements Manulife's recent acquisitions in Canada and the United States and accelerates our strategy to grow our Asia and wealth management businesses."
May Tan, Chief Executive Officer of Standard Chartered Bank (Hong Kong) Limited, said: "Standard Chartered has been an active participant in the retirement services market in Hong Kong since the inception of the MPF scheme. This partnership will strengthen our proposition in retirement services which remains a core product of the bank. We look forward to working with Manulife to deliver the benefits of the partnership to our customers."
Michael Huddart, Executive Vice President and General Manager, Greater China, Manulife, said: "We look forward to serving the retirement needs of Hong Kong customers in partnership with Standard Chartered, one of Hong Kong's oldest and largest banks. This arrangement demonstrates our commitment to Hong Kong, where we have served customers for more than a century."
The transaction is expected to close in the first half of 2016, subject to the receipt of relevant regulatory approvals. Financial terms of the transaction were not disclosed.
1 Based on The Gadbury Group MPF Market Shares Report as of June 2015.
About Standard Chartered
We are a leading international banking group, with more than 86,000 employees and a 150-year history in some of the world's most dynamic markets. We bank the people and companies driving investment, trade and the creation of wealth across Asia, Africa and the Middle East, where we earn around 90 per cent of our income and profits. Our heritage and values are expressed in our brand promise, Here for good.
Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.
The history of Standard Chartered in Hong Kong dates back to 1859. It is currently one of the Hong Kong SAR's three note-issuing banks. Standard Chartered incorporated its Hong Kong business on 1 July 2004, and now operates as a licensed bank in Hong Kong under the name of Standard Chartered Bank (Hong Kong) Limited, a wholly owned subsidiary of Standard Chartered PLC.
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 2014, we had 28,000 employees, 58,000 agents, and thousands of distribution partners, serving 20 million customers. At the end of June 2015, we had C$883 billion (HK$5,487 billion) in assets under management and administration, and in the previous 12 months we made more than C$22 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 Financial Corporation
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Sean B. Pasternak