Michael Dommermuth will lead the merged operation in his new role as head of wealth and asset management, Asia.
The company said the new operation will utilise around $19trn worth of assets sitting in bank accounts and term deposits across Asia which are currently earning little return in light of factors such as inflation and taxes.
“Our mission as an integrated wealth and asset management services and solutions provider is to better understand why investors continue to underutilise such a large source of potential returns,” said Dommermuth.
“We aim to help shift a portion of these cash holdings to more efficient investment solutions that have the potential to generate returns in excess of bank deposit rates or even to generate a recurring income stream to supplement other sources of household income.
He added that the merger was driven by the expansion of Asia’s middle class and its growing elderly population.
“If individuals continue to allocate such large portions of their financial wealth to unproductive savings accounts and term deposits, they run the risk of not generating sufficient resources to meet their major financial goals before and in retirement.”
Dommermuth was previously president, international asset management for Manulife Asset Management. He has also led Manulife Financial’s investment operations in Asia (ex-Hong Kong).
His new position is effective immediately, and he will report to executive vice president, global head of wealth and asset management, Kai Sotorp, and senior executive vice president, Manulife Asia, Robert Cook.
Sortop said the merger will create a “strong” platform for future growth, enabling the company to service a broader client base.
“This further positions Manulife as one of the few financial services firms in the region equipped to provide wealth solutions that span the mutual fund, pension, and insurance-linked categories on a pan-Asia basis,” he added.
In December last year, Manulife Asset Management hired Kathryn Langridge and Philip Ehrmann, former Jupiter fund managers, to run its new global emerging markets equity portfolio management team.
Based in London, the pair manage a global emerging markets equity strategy for institutional clients and certain wealth management businesses of Manulife.
