Standard Chartered and Manulife have entered into a 15-year distribution partnership providing Manulife the exclusive right to offer its Mandatory Provident Fund (MPF) product to Standard Chartered's customers in Hong Kong.
As part of the arrangement, Manulife will acquire Standard Chartered's existing MPF and Occupational Retirement Schemes Ordinance (ORSO) businesses, and the related investment management entity.
The partnership further enhances Standard Chartered's wealth offering and the bank's position as a leading distributor of wealth management products in Hong Kong. It will provide Standard Chartered's individual and business customers in Hong Kong with greater investment choice, access to market leading technology platforms and high-quality customer service. This arrangement significantly expands Manulife's pension business in Hong Kong, and strengthens its position as the #2 MPF provider as measured by assets under management and the #1 MPF provider as measured by net cash flows.
Judy Hsu (pictured), Group Head, Wealth Management, Standard Chartered, says: "We are delighted to partner with Manulife, a leading provider of retirement funds in Hong Kong. The partnership demonstrates our commitment to provide our clients with a holistic proposition, including retirement services, to meet their financial goals. It is a further step in executing on our global wealth strategy, to leverage our strong franchise and distribution network to deliver quality wealth solutions to our clients."
Roy Gori, President and CEO, Manulife Asia, says: "This partnership between two of Hong Kong's top financial services companies will enable us to increase value to customers and deliver the benefits of economies of scale. 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. This deal complements Manulife's recent acquisitions in Canada and the United States and accelerates our strategy to grow our Asia and wealth management businesses."
May Tan, Chief Executive Officer of Standard Chartered Bank (Hong Kong) Limited, says: "Standard Chartered has 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. We look forward to working with Manulife to deliver the benefits of the partnership to our customers."
Michael Huddart, Executive Vice President and General Manager, Greater China, Manulife, says: "We look forward to serving the retirement needs of Hong Kong customers in partnership with Standard Chartered, one of Hong Kong's oldest and largest banks. This arrangement demonstrates our commitment to Hong Kong, where we have served customers for more than a century."
The transaction is expected to close in the first half of 2016, subject to the receipt of relevant regulatory approvals. Financial terms of the transaction have not been disclosed.