Manulife reports double-digit growth . . .
Despite recent domestic turmoil in India and tense relations with China, some Canadian institutions are reporting record earnings and announcing large investments in the region. Manulife Financial CEO Roy Gori recently said double-digit growth in its Asia unit accounted for a significant portion of his firm's C$200-million increase over the same quarter last year. According to the APF Canada Investment Monitor, Manulife has invested C$6 billion in the Asia Pacific since 2003 – the bulk of it in mainland China (C$2.5 billion) and Singapore (C$1 billion).
Pension plans looking to India . . .
The Ontario Teachers’ Pension Plan, meanwhile, recently announced that its fund and Australia’s largest pension fund, AustralianSuper, will each invest US$250 million in India’s infrastructure-focused sovereign wealth fund, the National Investment and Infrastructure Fund. The agreement includes the possibility of increasing the investment to US$1 billion, providing much-needed dollars for Indian Prime Minister Narendra Modi’s plan to boost Indian infrastructure with foreign investment. This piece of news coincides with the Canada Pension Plan Investment Board’s (CPPIB) announcement of a new credit arm in India. CPPIB, a significant foreign investor in India since it opened its Mumbai office in 2015, is looking to inject capital into the nation’s financial system and offer debt by partnering with non-bank providers.
Asia features in long-term growth strategies . . .
While tensions and turmoil in Asia and Canada-Asia relations are relatively recent, these Canadian institutions have spent years investing in their Asia operations. Manulife CEO Gori, for example, cited his company’s long-term growth strategy when explaining why Manulife recently entered into an asset management joint venture agreement in India. And CPPIB’s global strategy is focusing on emerging markets that are poised to generate higher rewards than those in North America.
- Benefits Canada: Ontario Teachers’ investing in Indian infrastructure, East Asian cruise line
- Financial Times: Canadian pension fund plans to set up a credit arm in India
- Insurance Journal: Manulife posts net income of $1.5 billion for second quarter