Manulife to launch 3 new funds this year, targets 20% MPF market share

Manulife Financial’s Q2 results beat market expectations with net profit of C$490 million; Manulife Hong Kong posted net shareholder income of about HK$3.85 billion, up 17% year on year. The company yesterday unveiled several five-year plans, including three new fund launches this year.

What will the new funds invest in?

The three funds will target China, Greater China and emerging Eastern Europe respectively. Manulife’s Hong Kong CEO Michael Ho said the firm is bullish on renminbi products, expecting renminbi to reach 25–30% of premium and deposit share within five years; but currently available renminbi products have short tenors ill-suited to long-term investing, while huge local renminbi deposits amid short supply keep dim-sum bond yields low.

What are Manulife’s five-year goals?

Hong Kong’s second-largest MPF provider aims to lift market share from 17.6% to 20% within five years. Other targets: raise non-agency sales contribution from 13% to 25%, and expand the distribution force from 4,600 to 7,000 people.

Will MPF fees come down?

Ho said fees have room to fall as MPF asset scale grows; but index funds, needing no fund-manager oversight, are cheaper than active funds — the two cannot be directly compared. When choosing schemes, workers can compare MPF fund fees across providers and learn how fees affect returns via MPF education.