Hong Kong-based Manulife (International) and Allianz Global Investors Asia Pacific announced a strategic alliance for their businesses managing money for participants of Hong Kong's HK$1.02 trillion ($131.5 billion) Mandatory Provident Fund.
Under the alliance, Manulife — which sponsored investment schemes with a combined 24.6% share of MPF assets as of Sept. 30, according to a report by Mercer — will also become the sponsor of Allianz Global Investors' MPF plan, which had just less than 1% of MPF assets.
Allianz Global Investors will continue to manage its investment schemes, which will be offered on Manulife's multimanager MPF platform, an announcement said Monday.
Financial details of the arrangement are not being disclosed, Calvin Chiu, Hong Kong-based senior managing director and head of Asia retirement with Manulife Investment Management, said in an interview.
The move lifts Manulife's share of MPF assets to an industry-leading 25.6%, edging out the 25% share for investment schemes managed by London-headquartered HSBC Group and its Hong Kong-based subsidiary, Hang Seng Bank.
Michael Dommermuth, Hong Kong-based head of wealth and asset management, Asia, at Manulife Investment Management, said in the news release that his firm was pleased to become "the largest MPF product provider in Hong Kong," offering a wide range of products, both from Manulife and by leveraging its manager selection capabilities to tap quality third-party fund providers.