Manulife merges Asia asset and wealth units
Manulife Asset Management (Manulife AM), which manages about US$276 billion, has merged its asset management and wealth divisions in Asia, appointing Michael Dommermuth to run the consolidated unit.
As a result of the reshuffle, Donna Cotter, appointed Manulife AM’s wealth management head for Asia little over a year ago, has been shifted to Manulife Japan, where she has become vice president of strategy and business.
Mr. Dommermuth was previously president, international asset management at Manulife AM, for which he was already based in Hong Kong. He has been with the Manulife group since 2001 in various roles. In his new position, effective immediately, he will report to Kai Sotorp, executive vice president and global head of wealth and asset management at Manulife, and Robert Cook, senior executive vice president, Manulife Asia.
“This is a new position that was created to integrate Manulife’s two successful business lines within a combined wealth and asset management team under [Mr. Dommermuth’s] supervision, creating an even stronger platform for future growth,” a Manulife AM spokesperson told Asia Asset Management.
“In this capacity, his responsibilities include setting the strategic direction for continued growth across the retail and institutional markets in the region. He is also responsible for business development, regulatory and business risk management, client relationship management and local operational efforts for the asset management franchise in Asia,” the spokesperson added.
The firm did not provide a clear reason for merging the two units.
The consolidation of Manulife AM’s wealth management division under its asset management umbrella comes as other foreign players are bulking up on wealth capabilities in the region.
Japan’s Nomura, for one, revamped its wealth unit in the region last year, including the hiring of new senior executives to run the division.
Another, BNY Mellon, in October received regulatory approval to broaden its suite of wealth management services out of Hong Kong. A significant part of that firm’s business in the region is aimed at US citizens living overseas, who are under increasing scrutiny from their home authority in light of the introduction of the US Foreign Account Tax Compliance Act (FATCA).
Elsewhere, Swiss private bank Lombard Odier in December teamed up with Thailand’s Kasikornbank to distribute wealth management products across Southeast Asia.
Swiss banks are also facing increasing pressure to give up the secrecy they have historically been renowned for in the face of FATCA.
A recent report by RBC Wealth Management and Capgemini showed that Asia is leading the way in terms of the regional rise in number of high-net-worth-individuals (HNWIs), and by the end of 2015 is expected to be home to the biggest community of wealthy individuals.
