BSP clears Manulife move to engage in trust business

MANILA, Philippines - Manulife Asset Management and Trust Corp., the asset management arm of Manufacturers Life Insurance Co. (Phils.) Inc., has received a certificate of authority to engage in trust and other fiduciary business in the Philippines from the Bangko Sentral ng Pilipinas (BSP).

Manulife is the first trust company in the Philippines backed by the resources of a multinational financial corporation since the BSP liberalized the financial sector.

“This is part of Manulife’s strategic plan to strengthen its business offerings in the Philippines and demonstrates the company’s commitment to deepening its relationships in Asia,” Manulife said in a statement.

Michael Dommermuth, head of Manulife’s wealth and asset management for Asia, said the company’s move to expand into the trust business was driven by the potential of the Philippines, being a fast growing asset management market in Southeast Asia.

“The Philippines is a promising market for the asset management industry given the rapid growth of the middle class population,” he said.

“We have, over time, already built a strong book of business in the Philippines through our investment-linked products. With the launch of the trust corporation here, we now have the broadest ASEAN footprint of any asset management company, which is strategically important as we anticipate accelerated economic growth within the ASEAN region,” he said.

Manulife Philippines president and chief executive officer Ryan Charland said the launch of the new business would allow Manulife to offer more products that cater to their clients’ financial needs.

Aira Gaspar has been appointed as Manulife Asset Management and Trust Corp.’s chief executive officer, following her service as Manulife Philippines’ chief investment officer.

Gaspar said the company plans to take advantage of Manulife’s global investment capabilities to offer a wide range of new products to different type of clients in the country.

“We have seen great interest in a wider range of investment solutions among Filipinos. With our global investment expertise and our deep local market knowledge, we are uniquely positioned to service individual and institutional investors in the Philippines,” she said.

With the go-signal from the BSP, Manulife Asset Management and Trust Corp. is set to initially offer unit investment trust funds in the third quarter.

“In the institutional space, a suite of dedicated and customized solutions covering pension accounts, bespoke institutional mandates and segregated accounts in the Philippines will also be offered,” the company said.