Acquisition significantly strengthens Manulife’s wealth management platform in Taiwan and diversifies product distribution.
Hong Kong— Manulife International Ltd. today has signed an agreement with Yuanta Financial Holding Co., Ltd. to acquire Fuhwa Securities Investment Trust Co., Ltd. The deal is subject to regulatory approval and is expected to close in the fourth quarter of 2008.
The acquisition will add seven new retail funds to Manulife’s current product range in Taiwan, 20 bank and security firm distributors, about USD 1,300 million in AUM and a significantly enhanced Taiwanese investment capability for the company.
Robert Cook, Senior Executive Vice President and General Manager of Manulife’s Asia Division, said: “Fuhwa Securities Investment Trust significantly complements our existing wealth management offerings in this dynamic market, adds diversity to our distribution platform and provides an important outlet for our offshore product line-up. Fuhwa brings a strong team of equity and fixed income specialists that have a proven track record in discretionary asset management and retail funds management. This acquisition fits well with our ambitions to become a pre-eminent provider of wealth management solutions to the Taiwanese public. It will also give us a significant presence in Taiwan’s flourishing USD165 billion asset management market that has been growing at a rapid rate, especially in segments well suited to Manulife’s core global strengths as an asset manager.”
With the addition of this new business in Taiwan, the company's asset management footprint is extended to eight operations across Asia. These include operations in Hong Kong, Japan, Indonesia, Vietnam, Thailand, and two new licenses that were granted earlier this year for operations in Singapore and Malaysia.
Mr Cook explained: “Taiwan is a strategically important element of Manulife’s regional wealth management activities owing to its high savings rates and the growing scale of offshore fund products sold locally.”
“Manulife’s Asian businesses are located in countries with a population of over 2 billion, who are demanding increasingly sophisticated wealth management solutions. As a leading provider of variable annuities, pension products and mutual funds within the region and with a force of over 28,000 agents in Asia, we are well poised to meet those developing needs.” Mr. Cook continued.
Through its investment management arm, MFC Global Investment Management, Manulife has been developing its investment capabilities within the region alongside the formation of asset management companies. MFC Global Investment Management has USD25 billion of assets under management within Asia, currently growing at a rate of 25% per annum. The addition of the Taiwan investment team within Fuhwa Securities Investment Trust will add significantly to the company’s Greater China capabilities.
Manulife has been operating in Taiwan for 16 years through its life insurance branch office headquartered in Taipei.
About Manulife Financial
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$400 billion (US$393 billion) as at June 30, 2008.
Manulife Financial is one of two publicly traded life insurance companies in the world whose rated life insurance subsidiaries hold Standard & Poor’s Rating Services’ highest “AAA” rating.
Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.
About MFC Global Investment Management
MFC Global Investment Management® represents the diversified investment management group of Manulife Financial. MFC Global Investment Management companies and affiliates provide asset management strategies for institutional investors, investment funds and individuals in key markets around the world. This investment expertise extends across a full range of asset classes including equity, fixed income and alternative investments such as oil & gas, real estate, timber, farmland, as well as asset allocation strategies.
MFC Global Investment Management has investment offices in the United States, Canada, the United Kingdom, Japan, Hong Kong, and throughout Asia. As at March 30, 2008, total assets managed for Manulife Financial companies and affiliates and for other clients exceeded C$240 billion (US$210 billion.) Additional information about MFC Global Investment Management may be found at www.mfcglobal.com.
MFC Global Investment Management®, Manulife and the block design are trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation.
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