Published by WealthBriefingAsia – 9th February 2015
Manulife is putting its wealth and asset management arms in Asia under the same roof, the firm said, as it named the man to head up the combined groups.
Canada-headquartered Manulife has put its Asian wealth and asset management divisions under one roof by appointing senior company executive Michael Dommermuth to head the group.
Dommermuth holds the title of head of wealth and asset management, Asia. The new position is effective immediately and he reports to Kai Sotorp, the global head of wealth and asset management at Manulife, and Robert Cook, senior executive vice president, Manulife Asia. Media reports said the present head of Asia wealth management at the firm, Donna Cotter, is to take up a newly-created role of vice president of strategy and business development for Manulife in Japan.
“Integrating these two successful business lines under Michael will create an even stronger platform for future growth. Importantly, it will allow us to bring needed and relevant investment solutions to more clients and distributors. This further positions Manulife as one of the few financial services firms in the region equipped to provide wealth solutions that span the mutual fund, pension and insurance-linked categories on a pan-Asia basis,” Sotorp said in a statement.
The firm operates in 10 regional markets in Asia, employing 140 investment professionals there, from a total of around 350.
One area of the market the firm will be targeting is the huge stockpile of cash deposits that savers across the region have amassed, the firm said.
“Our research reveals that there is about $19 trillion sitting in bank accounts and term deposits across Asia earning little or no real returns when factors such as inflation and taxes are taken into consideration,” Dommermuth said.
“As Asia’s middle class expands and its elderly population continues to grow, the cost of major financial goals such as private education for children, housing and comfortable retirement living are increasing at rates which far exceed returns on cash holdings,” he continued.
“Against this backdrop, if individuals continue to allocate such large portions of their financial wealth to unproductive savings accounts and term deposits, they run the risk of not generating sufficient resources to meet their major financial goals both before and in retirement,” he said.
Previously, Dommermuth was president, international asset management for Manulife Asset Management. Before this, he led Manulife Financial’s investment operations in Asia (ex-Hong Kong). Before relocating to Asia, he was based in Boston, where he led the firm’s institutional spread-based business product development efforts from 2001 to 2004. Prior to joining Manulife Financial in 2001, he was based in New York, London and Sydney as the head of various units of a global rating agency that covered leveraged finance and asset-backed securities.
As at 30 September 2014, assets under management for Manulife Asset Management were approximately $276 billion.
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