Manulife buys stake in Beijing venture
By Maggie Zhang |
November 25, 2009, Wednesday
|
Print Edition
Print Edition
MANULIFE Financial has signed a deal to buy a 49-percent stake in ABN AMRO TEDA Fund Management Co from Fortis Bank for 105 million euros (US$156 million).
The Beijing-based joint venture will be renamed Manulife TEDA Fund Management Co after the deal is completed.
The agreement is subject to regulatory approval and is expected to close in the first quarter of next year.
"Our new partnership with TEDA provides a rare strategic opportunity to make a fast track entry into China's large and high growth market for individual and institutional wealth management services," said Donald Guloien, Manulife financial president and chief executive officer. "This accelerates our expansion in China's huge growth market by several years."
The fund management company plans to maintain and grow its existing platform of asset management products. Over time, it also plans to seek regulatory approval for expanding its lines of business.
China's asset management industry is expected to become one of the largest in the world in the coming decade. Current industry assets under management of US$338 billion are forecast to grow beyond US$1 trillion by 2014.
China has one of the world's highest savings rates and a very high proportion of household wealth is held in the form of bank deposits.
ABN AMRO TEDA Fund Management Co, set up in 2002, has assets under management of 26 billion yuan. It is 51-percent owned by Northern International Trust, an investment affiliate of Tianjin city government.
Canada-based Manulife also has a life insurance joint venture in China -- Manulife-Sinochem Ltd.
The Beijing-based joint venture will be renamed Manulife TEDA Fund Management Co after the deal is completed.
The agreement is subject to regulatory approval and is expected to close in the first quarter of next year.
"Our new partnership with TEDA provides a rare strategic opportunity to make a fast track entry into China's large and high growth market for individual and institutional wealth management services," said Donald Guloien, Manulife financial president and chief executive officer. "This accelerates our expansion in China's huge growth market by several years."
The fund management company plans to maintain and grow its existing platform of asset management products. Over time, it also plans to seek regulatory approval for expanding its lines of business.
China's asset management industry is expected to become one of the largest in the world in the coming decade. Current industry assets under management of US$338 billion are forecast to grow beyond US$1 trillion by 2014.
China has one of the world's highest savings rates and a very high proportion of household wealth is held in the form of bank deposits.
ABN AMRO TEDA Fund Management Co, set up in 2002, has assets under management of 26 billion yuan. It is 51-percent owned by Northern International Trust, an investment affiliate of Tianjin city government.
Canada-based Manulife also has a life insurance joint venture in China -- Manulife-Sinochem Ltd.
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