International banking group Standard Chartered PLC and Manulife Financial Corp. announced on Thursday that they 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 transaction is expected to close in the first half of 2016, subject to regulatory approvals. Financial terms were not disclosed.
The agreement significantly expands Manulife’s pension business in Hong Kong, Manulife said in a statement, 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, based on The Gadbury Group MPF Market Shares Report as of June 2015.
Roy Gori, President and CEO, Manulife Asia, said: “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.
He added: “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.”