Back to top

Analyst Blog

In sync with its long term strategy to expand asset management business, Manulife Financial Corp. (MFC - Analyst Report) has announced that its unit Manulife Holdings Berhad (“MHB”) will acquire MAAKL Mutual Bhd (“MAAKL”) from MAA Group Berhad in Malaysia.

The transaction will fetch MHB one of the top ten positions in asset management in Malaysia. It is also expected to nearly double MHB’s total assets under management which stood at $1.23 billion as of Sep 30, 2013.

 The deal will cost MHB $30.0 million and is expected to see light in Feb 2014.

Post the acquisition Manulife Asset Management Services Berhad ("MAMSB"), a wholly owned MHB subsidiary, will be entrusted with the functioning of MAAKL’s funds investment management.

MHB has specifically picked up MAAKL because of its strong brand name, niche presence and a strong expertise in the asset management market in Malaysia. MAAKL has successfully permeated the local Malaysian market by offering 27 unit trust funds. MHB believes that it can leverage upon the local expertise built up by MAAKL.

Moreover, MAAKL’s 1,100-strong unit trust advisors have developed professional skills, which will strongly complement Manulife’s 50,000 agents’ base spread in Asia.

Malaysia also offers MHB attractive investment opportunities with growing savings and income, since 60% of its population belongs to working class. This mix of demography, which is expected to remain so over the next four decades, will fuel long-term demand for investment products.

Manulife is scanning for attractive investment options across the globe since the current low interest rate environment in its home country Canada offers few investment opportunities. The company expects that foreign investment will enable it to efficiently deploy investor’s assets.

Manulife carries a Zacks Rank # 3 (Hold).

Other players American Equity Investment Life Holding Co. (AEL - Snapshot Report), China Life Insurance Co. Ltd. (LFC - Analyst Report), Lincoln National Corp. (LNC) all with Zacks Rank #2 (Buy) are worth considering.

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%