Manulife Asset Management, the investment management arm of Manulife, has continued to build momentum in its institutional business in the first half of 2014, generating more than US$3.2billion 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.
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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.