Allianz Global and Manulife form alliance for Hong Kong MPF business

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Allianz Global and Manulife form alliance for Hong Kong MPF business

Allianz Global Investors Asia Pacific and Manulife International today jointly announced an alliance for their Mandatory Provident Fund (MPF) businesses.

Through this alliance, Manulife will become the sponsor of Allianz Global Investors MPF Plan, subject to regulatory approvals,while Allianz GI continues to be the Scheme's investment manager and to provide offerings in Manulife's multi-manager MPF platform with its global investment expertise.

The alliance will mean Manulife would have a 25.6% market share based on the insurer's AuM as at 30 September 2020.

We are confident that this alliance will benefit clients of both Allianz GI and Manulife in the long run."

Damien Green, CEO, Manulife Hong Kong and Macau, said: "We look forward to providing top-notch customer experience for AllianzGI's  MPF clients. With our wealth of 84 years of pension management experience and as one of the leading players in the MPF market since its launch 20 years ago, we are relentlessly innovating to meet the evolving pre- and post retirement needs of the Hong Kong population."

Desmond Ng, head of Asia-Pacific, Allianz Global Investors, said: "We are confident that this alliance will benefit clients of both Allianz GI and Manulife in the long run. Since the inception of the MPF system 20 years ago, AllianzGI has been committed to providing Hong Kong people with  high quality MPF services and offerings."

"With our expertise in active asset management, we will continue to seek more meaningful results to our MPF clients and to contribute to the development of Hong Kong pension market, as it is our core proposition to generate long term value for our clients in Hong Kong."

Under the strategic alliance, the sponsorship of the Scheme will be transferred to Manulife, and Allianz GI will remain focused on leveraging its core strength as a global active asset manager to provide investment solutions to the Scheme. This allows existing AllianzGI's MPF clients to remain invested in their funds, and, at the same time, gain access to Manulife's full suite of professional customer support and comprehensive digital services.

Michael Dommermuth, head of wealth and asset management, Asia, Manulife Investment Management, commented: "This move aligns with our commitment to offering an extensive range of fund choices that can best serve the different investment appetites and deliver great value to all MPF clients. Our managed architecture featuring robust manager selection capability ensures we provide quality investment choices from Manulife Investment Management and third-party fund providers."

Philip Tso, head of institutional business, Asia-Pacific, Allianz Global Investors, said: "Our MPF business has been a success since its launch, with our company gaining market recognition over time in this space for our services and fund choices. We are delighted that AllianzGI, as a most reliable partner, will now help Manulife accelerate its growth in the retirement market."

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Christopher Copper-Ind

Christopher Copper-Ind is editor-in-chief of International Investment. Before this, he was editorial director of The Business Year, from 2014 to 2017.