In sync with its long term strategy to expand asset management
Manulife Financial Corp.
) has announced that its unit Manulife Holdings Berhad ("MHB")
will acquire MAAKL Mutual Bhd ("MAAKL") from MAA Group Berhad in
The transaction will fetch MHB one of the top ten positions in
asset management in Malaysia. It is also expected to nearly
double MHB's total assets under management which stood at $1.23
billion as of Sep 30, 2013.
The deal will cost MHB $30.0 million and is expected to see
light in Feb 2014.
Post the acquisition Manulife Asset Management Services Berhad
("MAMSB"), a wholly owned MHB subsidiary, will be entrusted with
the functioning of MAAKL's funds investment management.
MHB has specifically picked up MAAKL because of its strong brand
name, niche presence and a strong expertise in the asset
management market in Malaysia. MAAKL has successfully permeated
the local Malaysian market by offering 27 unit trust funds. MHB
believes that it can leverage upon the local expertise built up
Moreover, MAAKL's 1,100-strong unit trust advisors have developed
professional skills, which will strongly complement Manulife's
50,000 agents' base spread in Asia.
Malaysia also offers MHB attractive investment opportunities with
growing savings and income, since 60% of its population belongs
to working class. This mix of demography, which is expected to
remain so over the next four decades, will fuel long-term demand
for investment products.
Manulife is scanning for attractive investment options across the
globe since the current low interest rate environment in its home
country Canada offers few investment opportunities. The company
expects that foreign investment will enable it to efficiently
deploy investor's assets.
Manulife carries a Zacks Rank # 3 (Hold).
American Equity Investment Life Holding Co.
China Life Insurance Co. Ltd.
Lincoln National Corp.
) all with Zacks Rank #2 (Buy) are worth considering.
AMER EQUITY INV (AEL): Free Stock Analysis
CHINA LIFE INS (LFC): Free Stock Analysis
MANULIFE FINL (MFC): Free Stock Analysis
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