Manulife Holdings Berhad has agreed to fully acquire the unit trust company of MAA Group Berhad in a deal that is expected to boost the asset management franchise to top ten status in Malaysia.

Manulife Holdings Berhad, the Malaysian subsidiary of Canada's Manulife Financial, has agreed to fully acquire the unit trust company of MAA Group Berhad in a deal that is expected to boost its asset management franchise to top ten status in Malaysia.

MAAKL Mutual has a total net asset value of MYR2.47 billion as at 30 September 2013. It currently offers 27 unit trust funds, 10 of which are Islamic funds and 19 are Employees Provident Fund approved funds. According to Lipper AM, MAAKL presently ranks ninth in the private unit trust industry in terms of tutal fund size and distributes its funds via a direct sales force of some 1,100 unit trust advisors.

Financial terms of the deal, which may close in the next two months pending regulatory approval, were not revealed.

"This gives us an opportunity to accelerate Manulife Asia's growth strategy in Malaysia. The country's working age population is expected to remain approximately 60 per cent of its total population over the next 40 years which, fuelled by growth in savings and income together with financial literacy, indicates an increasing demand for investment products," said Mark O'Dell, group chief executive for Manulife Holdings Berhad.

Most of the investment management responsibility for MAAKL's funds will be transferred to Manulife Asset Management Services Berhad, subject to regulatory approval. MAAKL's oprations will merge with MAMSB after the transaction is completed.