Manulife Investment Management and Samsung Asset Management have signed a memorandum of understanding to collaborate on areas such as private asset opportunities, environmental, social and governance (ESG) strategies, advisory services, and the development and distribution of investment products.

Under the MoU, Samsung Asset Management will participate in Manulife Investment Management-led private asset strategies and opportunities as well as their advisory and management services in public asset classes such as Asia fixed-income strategies. The MoU also provides for a framework in which the two companies can co-develop and co-manage financial products for distribution in South Korea by Samsung Asset Management, targeting institutional, high-net-worth, and retail clients. Collaboration on ESG-related opportunities is also covered as part of the MOU.

Paul Lorentz, president and chief executive officer, global wealth and asset management, at Manulife Investment Management, says: “Innovative investment solutions such as private asset investments, offshore strategies and ESG opportunities will play an increasingly important role in helping investors in Korea accumulate wealth. We have found a great partner in Samsung Asset Management as they are the largest asset manager in Korea with a strong brand, and are keen on exploring opportunities in private assets, specialized public market strategies, and ESG.”

Shim Jong-Geuk, CEO of Samsung Asset Management, says: “We are excited to enter into this partnership. Working closely with a global leader in institutional and wealth management such as Manulife Investment Management will ultimately enable us to better serve our clients as well as expand our business. We especially look forward to cooperating in private assets including infrastructure investments as well as ESG, both of which are high priorities for us.”

South Korea’s institutional market has been on a multi-year growth as the country’s demographics continue to mature. Assets under management were valued at US$2.3 trillion at the end of 2019, with compound annual growth rate of 7.5% since 2015.

Manulife Investment Management has US$758 billion of assets under management and administration, with 550 investment professionals across 17 countries and territories. Samsung Asset Management, a wholly owned subsidiary of Samsung Life Insurance, has AUM of US$233.4 billion.