For Immediate Release / Hong Kong / March 16, 2017
Manulife Becomes the First Financial Institution to Receive Investment Company WFOE License
HONG KONG - Manulife today announces that it has been granted an Investment Company Wholly Foreign-Owned Enterprise (WFOE) license. The new company, known as Manulife Investment (Shanghai) Limited Company, is the first financial institution to receive the Investment Company WFOE license. This approval paves the way for Manulife to provide its global public market and private assets solutions in the fast-growing asset management industry in China.
Stringent requirements must be met in order to qualify for an Investment Company WFOE license compared to other WFOE categories. For example, the financial institution must own a majority stake in an existing entity in China. Manulife met this requirement through its 51% investment in the joint venture company, Manulife-Sinochem Life Insurance Co. Ltd, based in Shanghai.
Kai Sotorp, Executive Vice President, Global Head of Wealth and Asset Management for Manulife, said: “Being the first financial institution to receive the Investment Company WFOE status puts us in an excellent position to expand our range of global product offerings to investors in China.”
According to Donald Guloien, President and Chief Executive Officer of Manulife, “This underlines Manulife’s commitment to China and to the city of Shanghai by supporting its vision as a regional financial center. This also allows us to better fulfill our aspiration in serving Chinese investors to achieve their respective investment objectives.”
The Investment Company WFOE license will pave the way for Manulife to serve a broader investor base such as small and medium-sized institutions, private banks and independent wealth management platforms. Potential solution offerings can range from traditional equities and fixed income products to private assets strategies, such as timberland, farmland, commercial real estate, etc.
Manulife’s investments in China include Manulife-Sinochem Life Insurance Co. Ltd with US$3.2 billion of assets under management (AUM)1, and Manulife TEDA Fund Management Company Ltd. with an AUM of US$9.8 billion2.
Roy Gori, President and CEO of Manulife Financial Asia, added: “This license will complement our joint ventures in serving investors in China, including Manulife-Sinochem Life Insurance and Manulife TEDA Fund Management. Manulife-Sinochem was the first foreign invested joint-venture life insurer to sell mutual funds in China, while Manulife TEDA provides traditional retail and institutional asset management service and solutions for clients across the Chinese market.”
Manulife Investment (Shanghai) Limited Company will be the latest extension of Manulife Asset Management’s operations in Asia, which boasts a team of over 180 investment professionals3 in 10 markets in the region, and offers objective-oriented solutions across public and private markets with a multi-channel distribution approach.
1 AUM in USD as of 28 February 2017, rounded to the nearest billion. Manulife Asset Management’s 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.
2 AUM in USD as of 28 February 2017, rounded to the nearest billion.
3 The total is comprised of investment professionals of Manulife Asset Management (Asia) and of Manulife TEDA.
Manulife Financial Corporation is a leading international financial services group that helps people achieve their dreams and aspirations by putting customers' needs first and providing the right advice and solutions. We operate as John Hancock in the United States and Manulife elsewhere. We provide financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. At the end of 2016, we had approximately 35,000 employees, 70,000 agents, and thousands of distribution partners, serving more than 22 million customers. At the end of 2016, we had $977 billion (US$728 billion) in assets under management and administration, and in the previous 12 months we made almost $26 billion in 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.
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 31 December 2016, assets under management for Manulife Asset Management were approximately C$461 billion (US$343 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 is a division of Manulife Asset Management. Additional information about Manulife Asset Management may be found at www.ManulifeAM.com.
Manulife-Sinochem is a joint venture company between Manulife (International) Limited and Sinochem Finance Co., Ltd. (a member of the Sinochem group). It was the first Chinese-foreign joint-venture life insurance company established in China. Manulife-Sinochem began operations in November 1996. To date, the Company has nearly
14,000 professionally trained agents and employees, providing financial and insurance services to over 910,000 customers. Manulife-Sinochem is now operating steadily in 51 cities in Shanghai, Beijing, Guangdong, Zhejiang, Jiangsu, Sichuan, Shandong, Fujian, Chongqing, Liaoning, Tianjin, Hubei, Hebei and Hunan. With 20 years’ successful experience, Manulife-Sinochem is committed to providing strong, reliable, trustworthy and forward- thinking insurance products and services to our clients. Website: www.manulife-sinochem.com.
About Manulife TEDA
Manulife TEDA Fund Management Co., Ltd. is one of the earliest joint-venture fund management companies in China. Current registered capital of Manulife TEDA Fund Management Co., Ltd. Is RMB 180 million. Equity structure is as follows: Tianjin TEDA Investment Holding Co., Ltd. affiliated Northern International Trust & Investment Corporation Limited holds 51%, a unit of Manulife Financial Group ,Manulife Asset Management (Hong Kong) Limited 49%. Manulife TEDA Fund Management Co. Website: www.mfcteda.com.
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