As part of the deal, expected to complete in the first half of 2016, Manulife will acquire Standard Chartered’s existing MPF and occupational retirement schemes businesses, and the related investment management operation.
This “significantly expands” Manulife’s pension business in Hong Kong, and builds on its position as the number two MPF provider as measured by assets under management, and first by net cash flows, according to a joint statement.
Roy Gori, president and CEO of Manulife Asia, said the partnership would deliver economies of scale and add to investor choice.
“The MPF industry in Hong Kong is experiencing continued consolidation, and Manulife is seen as a partner of choice. Manulife is a major player in the pension business in Hong Kong, Canada, the United States, and Indonesia”, he said.
"The MPF industry in Hong Kong is experiencing continued consolidation"
He added that deal complimented Manulife’s recent acquisitions in Canada and the United States and accelerated its strategy to grow our Asia and wealth management businesses.
May Tan, chief executive of Standard Chartered Bank (Hong Kong), said Standard Chartered had been an active participant in the retirement services market in Hong Kong since the inception of the MPF scheme.
“This partnership will strengthen our proposition in retirement services which remains a core product of the bank”, he said.
Financial terms of the deal were not disclosed, and it is still subject to regulatory approval.