Manulife launches Taiwan’s first dynamic asset allocation FOF

28 May 2014   Category: News, Asia, Global, Taiwan   By Hui Ching-hoo

Manulife Asset Management (Taiwan) has launched the first multi-asset fund of funds (FOF) to feature a dynamic asset allocation strategy, as part of its bid to quench growing retirement wealth management demand on the island.  

The Manulife Global Dynamic Asset Allocation Fund will employ a flexible dynamic asset allocation strategy to invest primarily in global equity and bond sub-funds.

Thomas Cheong, chief executive officer of Manulife Asset Management (Taiwan), said that the new FOF is designed to meet the growing demand for retirement planning products in Taiwan. With a monthly dividend distribution mechanism in place, it is targeted at individuals looking to mobilise their financial wealth to supplement other regular sources of household income.

Manulife Asset Management’s proprietary Ageing Asia series of research reports has claimed that Taiwanese households allocate roughly 40% of their financial wealth to bank deposits, which are said to have historically delivered real returns of -0.7% per annum.

Mr. Cheong said that a dynamic asset allocation strategy could be one way to potentially capture higher returns without exposing investment capital to undue risks.

Separately, Mr. Cheong told Asia Asset Management that the firm identifies RMB and pension-related businesses as the main growth drivers for the firm going forward. It is looking to capitalise on the opportunities brought by implementation of the RQFII scheme and Labor Pension Fund (LPF) member choice platform.

Established in 2008, Manulife Asset Management (Taiwan) had total AUM of around US$800 million as of March 31.