Manulife Financial Corp. (TSX:MFC) has closed the transaction to purchase a European bank’s stake in a Chinese asset manager, the company announced Wednesday.

Manulife said it has closed a deal for Fortis Bank SA/NV’s 49% ownership stake in ABN AMRO TEDA Fund Management Co. Ltd. The new joint venture, Manulife TEDA Fund Management Company Ltd. provides retail and institutional asset management for clients in China. The other 51% of the firm is owned by Northern International Trust, part of Tianjin TEDA Investment Holding Co., Ltd.

Manulife TEDA saw assets under management grow 45% in 2009 to US$4.4 billion at Dec. 31, 2009. The firm said it plans to grow its existing platform of asset management products, and also plans to seek regulatory approval for expanding its lines of business when permitted by the China Securities Regulatory Commission and other regulators.

Manulife Financial president and CEO, Donald Guloien, said, “The completion of our new Manulife TEDA joint venture transaction represents another important step forward for our growth plans in China and the Asia region. The substantial increase in assets under management in 2009 underscores the potential of this market. We are excited to be able to offer a combination of insurance, wealth and asset management capabilities in this important region.”

IE