2010 Communiqués de presse

Hong Kong - MFC Global Investment Management today announces that Manulife Asset Management (Hong Kong) Limited, a wholly owned subsidiary of Manulife Financial Corporation, has completed the purchase of Fortis Bank SA/NV’s¹ 49% stake in ABN AMRO TEDA Fund Management Co. Ltd. – a leading Beijing-based asset manager. The organization will be called Manulife TEDA Fund Management Company Ltd (Manulife TEDA).

The deal is of strategic importance to MFC Global Investment Management in Asia as it:

·         Extends the business’ global footprint into China;

·         Further strengthens the company’s Greater China investment capabilities with access to Manulife TEDA’s investment experts on-the-ground in China;

·         Offers significant growth opportunities to manage Qualified Foreign Institutional Investor (QFII) and Qualified Domestic Institutional Investor (QDII) funds, Enterprise Annuities and Discretionary Mandates;  

Manulife TEDA Fund Management Company Ltd. has 137 employees and US$4.4 billion in assets under management (as at December 31, 2009) for both retail and institutional clients in China. The investment professionals at Manulife TEDA and those within MFC Global Investment Management will each have access to the other, strengthening MFC Global Investment Management’s Greater China investment process and strategy.

The news follows MFC Global Investment Management (Asia) being granted a Qualified Foreign Institutional Investor (QFII) license in November 2009². Upon receipt of a QFII quota, MFC Global Investment Management will be one of the few global investment companies to offer institutional and retail investors access to China’s fixed income and equity markets, backed by Manulife TEDA’s expert, local knowledge of these markets.

J-F Courville, President and CEO of MFC Global Investment Management said: “The successful conclusion of this deal puts MFC Global Investment Management at the forefront of the Greater China asset management industry. Not only does this firmly anchor us in the high-growth Chinese asset management industry but it also gives our global clients access to the investment expertise of a respected team of portfolio managers at the heart of China’s fixed income and equity markets. This, combined with the Greater China know-how of our Hong Kong and Taiwan-based professionals, makes us a compelling partner for institutional investors wanting to tap into this important market.”

Marc Sterling, Executive Vice President, Asia Regional Operations, Manulife Financial said: “We look forward to working closely with our partner, TEDA, to ensure a smooth transition of this vibrant asset management company.   With the closing of the transaction, Manulife is now one of the few companies with asset management entities in China, Taiwan and Hong Kong and is well-positioned to benefit from growing investor interest in the greater China region.   TEDA is a renowned and recognized business leader and an excellent partner for Manulife. We hope that our continued cooperation will extend over time into new areas of the industry such as Enterprise Annuities. ”

Outlining the significance of the Chinese market for the company, Michael Dommermuth, Head of Asia Investments at MFC Global Investment Management explained: “The Chinese asset management industry has US$ 338 billion in AUM³ and is expected to be one of the largest in the world. Indeed, it has been forecast that China will surpass the US in GDP at purchasing power parity by 2017⁴. China has one of the highest savings rates in the world - 51%⁵ of GDP - and one of the highest proportions of personal financial assets in the form of deposits at 88%⁶ of GDP.  This provides a tremendous opportunity for the asset management industry and for a strong, respected local asset manager like Manulife TEDA, supported by MFC Global Investment Management.”

The completion of this deal means that MFC Global Investment Management’s clients can now benefit from the expertise of more than 120 investment professionals across 10 locations in Asia and has more than 300 investment professionals around the world. The company now has dedicated asset management businesses in 9 Asian locations and a total of 15 countries and territories worldwide. With the completion of this transaction, the pro forma assets MFC Global Investment Management manages for external investor clients were US$110 billion as of December 31, 2009.

Notes to editors

¹ Now operating under the BNP Paribas Fortis brand

²MFC Global Investment Management (Asia) is a division of Manulife Asset Management (Hong Kong) which was granted a QFII license in November 2009

³Source: CSRC; China Securities Regulatory Commission, June 2009

⁴The Economist

⁵ Source: China National Bureau of Statistics, July 2009

⁶ Source: Swiss Re Sigma 2007

About MFC Global Investment Management

MFC Global Investment Management® is the asset management division of Manulife Financial. MFC Global Investment Management’s diversified group of companies provides comprehensive asset management solutions 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 and 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. Additional information about MFC Global Investment Management may be found at www.mfcglobal.com.

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