TORONTO and BOSTON, Aug. 28, 2014 /PRNewswire/ -- Manulife Asset Management, the investment management arm of Manulife (TSX, NYSE: MFC), continued to build momentum in its institutional business in the first half of 2014, generating more than US$3.2 billion globally in net new sales.
In its second quarter 2014 earnings release, parent company Manulife said assets managed by Manulife Asset Management reached US$281 (C$300) billion as of June 30, 2014, an increase of US$18 billion from December 31, 2013.
"Our sales so far this year demonstrate success across our U.S., Canadian and International sales teams, with several of our investment teams winning significant institutional mandates from large public pension plans, sovereign wealth funds, and sub-advisory mandates," said Warren A. Thomson, Chairman of Manulife Asset Management. "The numbers show our clients are as diverse as the asset management mandates we are undertaking."
New mandates year to date include:
- U.S. Large Cap Core strategy mandates with new clients in the U.S., China, South Korea and Europe
- Strategic Fixed Income strategy mandates with new clients in the U.S., Canada and Japan
- A US$1.3 billion mandate for the Global Equity strategy by UK-based wealth management firm St. James's Place
- Asia Pacific ex Japan Equity mandate with a new client in Malaysia
"Manulife Asset Management has built a strong foundation, leading with investment excellence and developing the sales infrastructure necessary to win new business and strengthen relationships with institutional prospects and consultants," said Kai Sotorp, President and CEO, Manulife Asset Management. "The mid- and long-term performance by our investment professionals continued to be strong. Over the past two quarters, the majority of public asset classes outperformed their benchmarks on a one-, three-, and five-year time frame. Further, on a five-year basis, 70 percent of our assets outperformed their peers."
"Our focus remains on continuing to provide solutions to investors and expanding our business in North America, Asia, Europe and the Middle East," he said.
Asset Allocation Fund of Fund Growth
In the first half of 2014, Manulife Asset Management's Portfolio Solutions Group (PSG) was awarded a U.S. patent for its Target De-Risking funds, a liability-driven investment solution for small pension plans. In Canada, three new first-half institutional mandates for Target De-Risking funds totaled US$55 million.
In Asia, incremental wins for asset allocation products across multiple countries totaled over US$600 million.
Subsequent to the first half of 2014, PSG has continued to strengthen its team, most recently hiring Peter Warnes as Head of Portfolio Solutions Group, International.
PSG is responsible for asset allocation portfolio management globally with solutions on North American and Asian retail, retirement and variable life platforms. PSG manages more than 120 distinct investment portfolios, offering a variety of solutions for investors including Target Risk, Dynamic Asset Allocation, Alternative Asset Allocation, Target Date, and Global/Country/Regional Allocation.
PSG provides asset allocation strategies to investors in Asia, Canada and the US, and has grown from US$14.4 billion in assets in 2003 to more than US$118 billion as of June 30, 2014.
Global Thought Leadership
The fifth report in Manulife Asset Management's Aging Asia series analyzes the retirement duration for Asian households and examines longevity risk, the risk that a retiree will outlive his or her sources of income. Accompanying the report on the Aging Asia website is a new tool, the Aging Asia longevity calculator, which may be accessed at agingasia.manulifeam.com.
The firm issued the first research report in its new Investment Insight thought leadership series, entitled "Omnichannel: A reason for investors to re-think retail?" The report outlines how changes in the way consumers shop are driving new investment opportunities in markets around the world. It examines the emergence of omnichannel retailing, a strategy that allows customers to buy retail goods online, by visiting a store, or by various combinations of physical and virtual shopping.
In its Inflation Guide, the firm offered insight on the outlook for inflation and what it means for investors around the globe. For the first time, the report included two animated videos: one summarizing the outlook for inflation in major markets around the world and the factors that could contribute to inflation and/or deflation, and the other explaining why inflation matters to companies and investors.
The firm has been proactively helping investors navigate Japan's fixed income market under Abenomics, Japanese Prime Minister Shinzo Abe's unprecedented economic stimulus policy. It recently released commentary on strategies which active asset managers can employ to maximize excess returns on Japanese bond investing. This commentary follows research reports which have addressed implications for financial markets and implications for interest rate strategy and credit strategy in a Japan fixed income context.
About Manulife Asset Management
Manulife Asset Management is the global asset management arm of Manulife, 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 and private asset classes, as well as asset allocation solutions. As at June 30, 2014, assets under management for Manulife Asset Management were C$300 billion (US$281 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.
Manulife 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 and its subsidiaries were approximately C$637.3 billion (US$596.9 billion) as at June 30, 2014. Our group of companies operates as Manulife 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 can be found on the Internet at manulife.com.
SOURCE Manulife Asset Management