TORONTO and BOSTON, Dec. 18, 2013 /PRNewswire/ -- Looking toward 2014, Manulife Asset Management is marking highlights of a milestone year in 2013, one which included approximately $3 billion* in gross sales from institutional and sub-advisory clients globally, the expansion of investment capabilities with the addition of three new portfolio management teams, strong growth of its asset allocation franchise, a continuing emphasis on groundbreaking thought leadership, and the launch of a private markets business.
"As a C$265 billion (US$258 billion) asset manager with a global footprint, Manulife Asset Management has great momentum for the future," said Warren Thomson, Chairman and CEO. "Looking toward the new year, we will continue our growth as a premier institutional asset manager by leveraging our strong brand, investment management performance, expanded operations, and global client base."
In 2013, Manulife Asset Management won mandates from new and existing clients worldwide totaling $3 billion. The new mandates encompass Manulife Asset Management's Strategic Fixed Income Strategy team, as well as the US All Cap, US Small Cap Core, US Large Cap Core, Japan Core Fixed Income and Canadian Real Estate strategies.
Further, in December the firm announced that it was awarded a new mandate from the North Dakota State Investment Board, to be managed by the Securitized Assets team in the Total Return Bond Strategy. The firm was also given additional funding from an existing client, the Springfield-based Teachers' Retirement System of the State of Illinois, which increased its allocation to the firm's Strategic Fixed Income Strategy with an additional award of more than US$200 million.
The Asian business saw robust institutional sales growth across the region with wins that included central bank, sovereign wealth fund and public pension mandates. In addition, further funds were added to a multi-billion-dollar mandate from the world's largest government pension fund in Japan. A notable contributor to the Asian business was the launch of a fixed income fund by the company's joint venture in China which raised more than US$700 million.
New Investment and Sales Resources
In late March 2013, Manulife Asset Management expanded its global equity capabilities with the acquisition of a new U.S. Small Cap equity team. Bill Talbot, CFA, Senior Portfolio Manager, leads the team, which also includes Joseph Nowinski, Portfolio Manager; Travis Schaftenaar, CFA, CPA, Senior Investment Analyst; and Vikram Kaura, Senior Investment Analyst.
Also in March, Manulife Asset Management named Paul Boyne and Doug McGraw to lead a new team managing a Global Equity Strategy for institutional clients and certain wealth management businesses of Manulife Financial and John Hancock. In May, Manulife Asset Management added a new Emerging Markets Debt portfolio management team consisting of Roberto Sanchez-Dahl, CFA, and Paolo H. Valle.
Significant investment capabilities were also added outside of North America. This included additions to Manulife Asset Management's on-the-ground presence in Asia, where its strategy coverage was expanded with the addition of equity specialists for various regional and single-market strategies, including Korean equities and Japan fixed income. In addition, a new Head of Institutional Sales, Europe & Middle East was appointed to capture sales opportunities in these regions.
Asset Allocation Fund of Fund Growth
In 2013, the company secured its first ever multi-asset institutional mandates with five wins in Asia.
Manulife Asset Management's Portfolio Solutions Group (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 has grown from US$14.4 billion in assets in 2003 to over US$110 billion today (as of October 31, 2013), providing asset allocation strategies to investors in Asia, Canada and the US. The firm is the largest provider of retail target risk (lifestyle) solutions in the US and the second largest provider of retirement target risk solutions in Hong Kong.
Global Thought Leadership
Manulife Asset Management issued its annual Year Ahead report, analyzing the major trends and developments it anticipates for 2014. Drawing from on-the-ground knowledge and investment expertise of the firm's global network of portfolio managers and analysts in North America, Europe and Asia, "Global Intelligence: The Outlook for 2014" is designed to identify trends and key issues that may impact investors in the coming year.
The firm produced over 100 thought leadership articles and events this year, which included continuing the "Aging Asia" research series inaugurated in 2012. April's report analyzed retirement income security in Asia's five richest economies and found that households in these countries and territories are at risk of retiring asset rich but income poor as many of their income resources are not mobilized efficiently.
September's report introduced the company's proprietary 'Bona Fide Real Return' measure. The metric reveals the extent to which inflation, income taxes and credit risk are undermining returns on bank deposits, with savers in eight of the 10 Asian markets the company has a presence in suffering negative real returns. The updated Aging Asia website may be accessed at: http://agingasia.manulifeam.com.
Manulife Asset Management, which has approximately $98 billion in global fixed income assets under management globally, also launched a campaign designed to highlight its expertise as a premier institutional fixed income investment manager. The campaign includes a new website featuring white papers, investment manager videos, links to webinars, and related information. The website, which is optimized for tablets and smartphones, is accessible at: http://manulifeam.com/balancingriskreturn.
Manulife Asset Management Private Markets
In November, Manulife Financial announced the expansion of its global third party private asset management business in a new business unit called Manulife Asset Management Private Markets. Under the leadership of Kevin Adolphe, the new business unit brings together specialized private asset teams that currently manage funds for third party investors, as well as providing investors access to Manulife Financial's other specialized private asset investment teams that historically have primarily served its general fund.
Manulife Financial manages C$74 billion of private market investments of which C$14 billion is for third parties, out of its total funds under management of C$575 billion. Collectively, these private assets span private placement debt, commercial mortgages, timberland, farmland, real estate, private equity and mezzanine debt, oil and gas and power and infrastructure assets. Additional information about Manulife Asset Management may be found at http://manulifeam.com/privatemarkets.
*All figures Canadian dollars, as of September 30, 2013 unless otherwise noted.
About Manulife Asset Management
Manulife Asset Management is the global asset management arm of Manulife Financial, 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, private, and alternative asset classes, as well as asset allocation solutions. As at September 30, 2013, assets under management for Manulife Asset Management were C$265 billion (US$258 billion).
Additional information about Manulife Asset Management may be found at ManulifeAM.com.
About Manulife Financial
Manulife Financial 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 Financial and its subsidiaries were C$574.6 billion (US$558.7 billion) as at September 30, 2013. The Company operates as Manulife Financial 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 Financial may be found on the Internet at manulife.com.
SOURCE Manulife Asset Management