The financial details of the deal, which is subject to regulatory approval, were not disclosed. However the company expects to complete the transaction within the next two months, subject to regulatory approval, according to a statement issued today in Malaysia.
The acquisition will increase the total assets under management held by Manulife Holdings Berhad (MHB) to MYR7bn ($2.18bn, £1.37bn).
“This acquisition gives us an excellent opportunity to accelerate Manulife Asia’s growth strategy in Malaysia,” MHB group chief executive Mark O’ Dell.
Founded in 2000, MAAKL currently markets some 27 unit trust funds with total assets under management of MYR2.47bn. This places MAAKL in ninth place in Malaysia’s private unit trust industry in terms of total fund size. It distributes its funds via a direct sales force of more than 1,100 advisers.
Following the acquisition, most of the responsibility for managing MAAKL’s funds will be moved to Manulife Asset Management Services Berhad, a wholly-owned MHB subsidiary, and ultimately merged with the Manulife entity.
Michael Dommermuth, president of international asset management for Manulife Asset Management, said the acquisition would enable his company to extend its reach across Malaysia and bring the expertise of both asset management companies to investors there through a “broad spectrum” of investment products.