Manulife’s Asset Management Unit Sees Strong Growth

Manulife Financial Corp. (MFC) announced that its asset management unit has performed impressively so far in 2014, reflected by an increase in global sales and asset growth. The company reported year-to-date direct institutional gross sales of $ 5.4 billion (C$5.9 billion) as of Sep 30, 2014.

Manulife Asset Management is the global asset management arm of the company and caters to institutional investors and investment funds in key markets around the world. Its clients based outside of North America contributed significantly to the growth in assets under management.

In 2013, the company witnessed an 18% increase in assets under management to ($227.2 billion ) C$243 billion. Total assets under management grew at a CAGR of 9.4% from 2010-2013.

The company has also taken a number of measures to broaden its business, which includes launching private market asset management, acquiring business and forming new teams.

Last year, the company launched Manulife Asset Management Private Markets, thereby extending its investment expertise to institutional investors in several private asset classes.

The acquisition of the Canadian operations of Standard Life plc announced in the third quarter was aimed at broadening the range of asset management products and solutions available in Canada and around the globe.

Also, earlier during the month, the asset management unit of the company announced the formation of a new Global Emerging Markets Equity portfolio management team to tap the extraordinary potential of the emerging markets.

The company hired two veteran financial strategists – Kathryn Langridge and Philip Ehrmann to manage the new team. The portfolio is aimed to provide long-term growth and meant for investors seeking exposure to global emerging markets.

Manulife boasts an extensive global asset management footprint with more than 340 investment professionals, and offices in 17 countries and territories. The unit provides a full spectrum of investment capabilities to retail and institutional clients.

We believe that the company’s asset management unit will fuel its long-term growth and help it to stand out among its peers.

Manulife carries a Zacks Rank #3 (Hold). Better-ranked stocks in the industry include American Equity Investment Life Holding Co. (AEL), China Life Insurance Co. Ltd. (LFC) and Lincoln National Corp. (LNC). While American Equity and China Life sport a Zacks Rank #1 (Strong Buy), Lincoln National carries a Zacks Rank #2 (Buy).