A C O M P R E H E N S I V E I N T RO D U C T I O N
MFC Global Investment Management
A T R U LY G L O B A L I N V E S T M E N T M A N A G E R
MFC Global Investment Management is the investment
to the needs of our clients, including Manulife’s own
management division of Manulife Financial
asset management business (Manulife Investments),
Corporation, the largest insurance company in Canada
pension funds, mutual funds, endowments, and others.
and one of the largest world-wide.
Today, MFC Global manages over $250 billion from its
Manulife, founded in 1891 in Toronto as
offices in Canada, the United States, Hong Kong,
Manufacturers’ Life Insurance Company, has grown
Japan, the U.K., Australia, and throughout South East
steadily as an insurer over the years through sales of its
Asia. This makes MFC Global one of the largest and
own products and a series of strategic acquisitions.
most diverse asset management groups in the world.
MFC Global has grown in tandem and contributed significantly to the parent company’s growth.
We count on the myriad talents of over 2,000 people, including some 300 portfolio managers, analysts and
MFC Global’s principal mission is to manage money
other investment professionals who provide direct, on
for Manulife’s General Fund. These assets are managed
the ground coverage of all major investment markets.
for the long-term with special consideration to the
Our team approach is marked by a commitment to
future expected liabilities of the parent company.
ongoing dialogue and an exchange of ideas among our
The second great sphere of MFC Global’s investment activities relates to those assets we manage for external, third party clients. These assets are managed according
investment desks as they gather and disseminate intelligence to help MFC Global be more successful in day-to-day asset management activities.
THE HANCOCK MERGER In the fall of 2003, Manulife and John Hancock of Boston announced a historic, $11 billion merger between two of North America’s oldest and most respected financial services providers. It was the largest such deal in either company’s history. As a result of the merger, MFC Global’s assets under management nearly doubled, from XX to XX. This included the assets of Maritime Life, John Hancock’s Halifax-based subsidiary. Moreover, MFC Global widened its geographical reach, greatly expanding its presence in the United States and several emerging Asian territories. Most importantly, the organization was strengthened through the addition of some of the best investment minds in the business, making MFC Global more diverse and better equipped to serve a wide range of clients and their needs. The Hancock brand has long had a powerful presence in the United States and around the world and those units associated with the investments division have proudly maintained this highly recognizable brand name.
Donald Guloien is the Chairman and Chief Executive
internal general fund assets of Manulife while also
Officer of MFC Global Investment Management, a
growing the external asset management business.
position he has held since 2001. He is also a Senior Executive Vice President and Chief Investment Officer of Manulife Financial.
In the years since Mr. Guloien took charge, the total assets we manage have grown from $92 billion to $254 billion. What’s more, the assets we manage for third party
During Mr. Guloien’s tenure, MFC Global’s stated
clients rose from $15 billion to $83 billion. (see graph).
objective has been to deliver added value for the
2001 C$92 billion
2006 Q1 C$254 billion(1)
16% 33% 84% C$77B
General Funds Assets Managed for Third Parties
AUM by Business Unit (General Fund) (First Quarter 2006 – in C$ billions) U.S. Fixed Income, $82.8
Canadian Fixed Income, $34.7
Global Investment Management, $19.9
A DIVERSE RANGE OF ASSET CLASSES FOR A DIVERSE RANGE OF CLIENT NEEDS
AUM by Business Unit – Third Party (First Quarter 2006 – in C$ billions)
Business Unit Structure (Investment Functions) MFC Global’s investment function is spread across four business units
Global Investment Management, $61.2
(which are further subdivided into several other groups). Three of the
U.S. Fixed Income, $9
business units—Canadian, U.S. and Asia— reflect geography. One unit,
Canadian Fixed Income, $3.9
Global Investment Management, works across borders and asset classes. More detailed descriptions of these units begin on Page TK
International Investment Operations, $8.6
STRATEGIES THAT FIT General Fund For Manulife’s General Fund, MFC Global’s strategy is to maximize return on investment and manage risk through a well-diversified asset mix, including bonds, mortgages, stocks, and other alternative asset classes. Our non-fixed income investments, including timber, agriculture, and oil & gas, are selected to deliver superior risk adjusted real returns over the long term. In the tight spread environment of the past few years, we have sought to mitigate risk and improve our credit quality and have progressively decreased the proportion of below investment grade bonds in our general fund portfolios.
Assets Managed by MFC Global for Third Parties One of our most important third party clients is Manulife itself, whose operating divisions generate assets through the sale of various wealth management products (above and beyond insurance). Indeed, MFC Global works closely with the Insurance and Wealth Management divisions of Manulife and John Hancock to develop investment management strategies that can be used in a variety of internal products (including mutual funds, variable annuities, and defined contribution pensions). This business is reported as “Assets Managed for Third Parties – Sold through Operating Divisions”. We also compete for mandates of external wealth managers, such as pension funds and endowments and have seen strong growth in these areas over the past several quarters. This business is reported as “Assets Managed for Third Parties – Sold Direct”.
“MFC Global Investment Management is the largest and most broadly diversified asset management group based in Canada. Within Canada, as investors expand their portfolios to diversify internationally and to include a broader mix of assets, this will provide more opportunities for MFC Global.” - Warren Thomson, EVP Global Investment Management
A STRONG RECORD OF RESULTS Investment Division Financial Report Investment Division Results (C$ Millions)
General Fund Revenues
General Fund Asset Fees/Other
Sold Through Operating Divisions
Total Asset Management Business REvenues
Taxes and Other
Assets Managed for Third Parties:
Net Income After Tax
The results summarized above present the net income generated primarily from our asset management business and, to a lesser extent, from general fund assets managed by our investment management subsidiaries. Net income growth reflects the growth in AUM, as well as the increasing mix of actively managed and alternative asset mandates.
MFC Global Recognized for Excellence We have received independent recognition of our performance on a wide variety of mandates. Two examples demonstrate the breadth of our ability. In 2005, Barronâ€™s ranked the John Hancock family of funds 11th out of 65 fund families in the U.S., based on asset-weighted performance across a broad spectrum of strategies. We continue to rank highly in 2006. The Wall Street Journal ranked the John Hancock Greater China Opportunities Fund the 25th best fund in the entire U.S. based fund universe for its 23.5% U.S. dollar return through May 31.
Five Key Objectives
A Culture of Excellence
The objectives outlined by Donald
MFC Global’s culture is marked by a commitment to high
Guloien and the division’s executive committee have changed very little in the five years since they were first defined. This is a strong reflection of how well MFC Global’s objectives fit into Manulife’s overall strategic vision, but also demonstrates how
performance. This begins in the executive ranks where expectations for excellence are high and permeates the entire organization. We subscribe to Manulife’s PRIDE values, a concept first promoted by President and CEO Dominic D’Alessandro, which provides a strong philosophical underpinning to everything we do and the way we do it. P – Professionalism R – Real Value to Customers
consistently we have been able to
I – Integrity
meet these goals.
D – Demonstrated Financial Strength E – Employer of Choice
We help to foster excellence through a number of programs and initiatives designed to help employees learn and utilize new skills, work more productively together and achieve the goals they have set for themselves and those set for MFC Global as a whole. Our division pages on MFCentral (the corporate intranet) includes the Expert Locator, a useful tool designed to help investment professionals communicate more easily and productively. The division regularly sponsors conferences, lectures, learning sessions and other events to strengthen the team, our skills, and abilities. Each year, the division recognizes extraordinary talent through the Stars of Excellence program. Winners are profiled on MFCentral and presented with their award at MFC Global’s Annual Employee Meeting in the spring. A select group of these individuals will be named Corporate Stars of Excellence and be recognized at a special event by senior corporate leaders.
PORTFOLIO MANAGEMENT APPROACH – THE BENEFITS OF SIZE AND DEPTH OF TALENT Our portfolios – both for the general fund and for external third party clients– benefit from the firm’s size and depth of talent. In short, bigger is better. But the aphorism only holds if knowledge and ideas are effectively shared, discussed and improved upon. As we move forward, we will continue to leverage this strength and seek to improve levels of cooperation and knowledge-sharing, especially across geographic borders. MFC Global Investment Management uses a variety of different portfolio management styles and approaches to provide a broad range of solutions for our clients. This includes actively managed equity and fixed income products, as well as passive (or indexed) equity and fixed income products. MFC Global also provides asset allocation solutions to the Lifestyle Funds used in variable annuities and defined contribution pensions, and invests directly in alternative asset classes such as timber and real estate that provide a combination of income and opportunity for capital gains.
Preparing for the Future The Investment Division Rotational Programme (IRDP) offers recent business graduates in both Boston and Toronto an outstanding opportunity to learn about several aspects of the investment industry through four, six-month rotations. Some participants will have the opportunity to spend one of their rotations at an MFC Global office overseas. At the end of the program, participants have a strong idea where their interests lie and where their skills can best contribute to the success of the company.
Within the fixed income teams, MFC Global
The manager’s performance is monitored and reported
Investment Management deploys three distinct types of
to senior management by an independent Performance
portfolio management, depending on the investment
Measurement & Attribution group (PM&A). This
mandate. They include:
group helps to ensure that excess returns are not earned
through the taking of undue risk.
Total Rate of Return (TRR)
Spread (or matched).
When a tight matching of assets and liabilities is essential to mitigate interest rate risk, we use a spread
We have indexed mandates for both general fund and
mandate. A fixed annuity block is a prime example of a
external third party clients. The manager’s performance
liability segment best served by spread management.
is monitored by the Tracking Error of the fund (i.e.
Spread mandates require tight coordination between
how closely does the fund’s actual performance track
the liability segment, Asset & Liability Management
the index it is replicating).
(ALM), and the asset portfolio manager.
A TRR mandate is a classic active portfolio
The primary tool deployed by a Spread manager to
management style. Guided by prospectus for external
deliver EVA is credit. Once the portfolio is fully
clients or by the Statement of Investment Policies and
invested in its longer term positions, the portfolio
Goals (SIP&G) for general fund mandates, a TRR fixed
management style can be described as buy-and-hold
income manager can actively manage:
versus the active trading style of the TRR manager.
macro government versus corporate credit calls
industrial sector credit calls
single name credit calls
duration relative to benchmark and
yield curve shape positioning.
In Canada, Conventional Mortgages comprise
asset allocation models, and through studies
primarily office, retail, industrial and some modest
recommending overall credit targets, management of
multi-residential holdings. Assets are originated in
duration gaps, and monitoring portfolio managers to
branches across the country, both directly and through
identify performance issues.
brokers. Credit is managed from Toronto.
GIS identifies investment opportunities across asset
Our NHA Mortgages team is based in Halifax, but
classes and geographies, provides analytical support for
taps into our full branch network. Origination is again
asset allocation decisions identifying over and under
direct and through brokers.
value opportunities, and increases growth of Asset
Manulife Capitalâ€™s private equity and mezzanine finance business focuses on longer term horizons than public equities. Initial positions are illiquid, but this is matched by premium return potential and attractive fees. Project finance debt is another new asset class for MFC Global, with opportunities in a variety of areas. Spreads and fees are attractive. Assets are long-lived, but usually
Allocation Funds and related fee income by outperforming competing funds through more optimal asset mix. The group is based in both Boston and Toronto and shares its intelligence with MFC Globalâ€™s investment teams, with the aim of helping them improve the quality of their portfolios.
carry a floating rate at the inception of a project. 1
Global Investment Strategy's (GIS) broad mission is to find higher returns with reduced risk. This is accomplished, through the development of strategic
Pools of amortized residential mortgages insured by Canada Mortgage and Housing Corporation (CMHC) under the National Housing Act (NHA).
U.S. FIXED INCOME The U.S. Fixed Income Group counts on the talents of
Each of the operating units in the U.S. Fixed Income
268 investment professionals who manage $92 billion in
Group has its own area of expertise. The following
assets. They are based in both Boston and Toronto with
briefly describes each unitâ€™s sphere of activity.
direct origination branch offices located throughout the United States.
The Bond and Corporate Finance Group (BCFG) is responsible for portfolio management and credit
The current environment for fixed income investors is
analysis for virtually all John Hancock bond holdings
challenging due to an excess of funds available for a
(both public and private) and agricultural mortgages.
correspondingly small number of investment
The team also provides credit support on U.S. credits
opportunities. This has not changed the overall goal of
to the Toronto and Asian bond portfolio managers.
the U.S. Fixed Income Group, which is to source quality
Recently, the group has moved to improve its ability
fixed income investments and manage our portfolios to
to source deals directly, thereby reducing its reliance
achieve required investment returns while at the same
on brokers and banks. BCFG is one of the largest
time improving the overall risk characteristics.
managers of private placements, ranking in the top
The team is recognized throughout the industry for its consistent performance. In 2005, John Hancock was
five life insurance private managers in the U.S. (based on AUM).
rated first out of 17 life insurers in bond, preferred
The Real Estate Finance Group (REFG) identifies,
stock and mortgage gross yields. Its credit analysts are
underwrites and procures high quality commercial real
well-known specialists in their industry sectors and are
estate loans. Additionally, REFG invests in select,
frequently called on to speak at industry forums.
privately placed Real Estate Securities and Real Estate Funds to attain higher yields.
U.S. WEALTH MANAGEMENT: In the United States, we have identified the opportunity to increase our share of the Wealth Management Division assets by continued good performance relative to other external asset managers. Numerous opportunities also exist for the expansion of our asset management business by growing assets managed for third parties using our platforms in Europe and Asia/Japan. - Scott Hartz, SVP, Bond and Corporate Finance Group
REFG is deepening its product line to offer more
The U.S. High Yield Desk (USHYD) manages Below
choices in the marketplace and be more valuable to
Investment Grade (BIG) public bonds on a total return
borrowers, although maintains its focus maintaining
basis. The USHYD primarily manages money for the
portfolio quality and prudently growing loan volume.
JH USA surplus segment. The same USTRD levers are
REFG is a well-recognized brand in the marketplace and known for its ability to structure complicated deals. In 2005, REFG was ranked among the Top 10 life insurers in mortgage loan AUM in the U.S. John Hancock Realty Advisors (JHRA) invests in tax credit, housing and community investments. JHRAâ€™s overall business strategy is to make investments that provide our business unit clients with attractive risk-adjusted returns and to protect the existing portfolio with consistent and disciplined portfolio and asset management. The U.S. Total Return Desk (USTRD) manages the JH USA investment grade bond portfolios for the protection and corporate surplus segments. The mandate is to actively manage duration, yield curve and credit calls to deliver superior performance relative to buy and hold strategies.
used to drive value with an even more intense focus on credit. Recently, USHYD upgraded its portfolio from BIG to a 50/50 BBB/BB portfolio. The U.S. Spread Desk oversees the JH USA portfolios that are managed on a cash matched basis (primarily wealth management business portfolios). Very little duration or yield curve risk is taken. Alpha is largely delivered through credit as these portfolios are primarily buy and hold.
GLOBAL INVESTMENT MANAGEMENT Background The most diverse of MFC Globalâ€™s business units, Global Investment Management manages an array of public equity and fixed income securities as well as alternative assets such as real estate, oil & gas, timber, agriculture, and infrastructure. These assets are managed for both third parties and, to a lesser extent, the general fund. Total AUM is approximately $81 billion. Global Investment Management is continually searching for innovative ways to serve its clients including forging partnerships with other Manulife
HTRG focuses on completing attractively priced, large timberland acquisitions by matching the needs of investors with those of major timberland owners, forest products companies and other financial partners. Other elements of the strategy are geographic diversification to maximize risk-adjusted performance, active property and portfolio management, and good forest stewardship. HTRG was the first timberland investment manager to obtain Forest Stewardship Council (FSC) certification in the U.S. West, and the first to achieve large-scale FSC certification in Australia.
divisions. The group has levered its capabilities both domestically and internationally to find new wealth management solutions for a variety of needs.
Hancock Agricultural Investment Group (HAIG) HAIG manages over U.S.$700M in farm real estate and commitments in the U.S. and Australia. U.S.$300M of
Business Descriptions and Strategies
the total is owned by Manulife.
Hancock Timber Resource Group (HTRG)
HAIG has built a broadly diversified portfolio,
HTRG is the worldâ€™s largest timberland investment advisor, managing over $5.7B of timber properties located in the U.S., Canada, Australia, New Zealand, and Brazil.
including both row crops (corn, soybeans, cotton, rice, vegetables) and permanent crops (almonds, apples, cranberries, pistachios, walnuts, wine grapes). The goal is to become a top-five producer in each commodity group.
Real Estate Our real estate unit manages $5.2 billion of high quality real estate for Manulife’s balance sheet. This includes office buildings in cities around the world. It also provides oversight of Manulife’s own premises, consisting of nine million square feet of office space worldwide. The group enjoys an excellent reputation; 98% of tenant said they would recommend leasing office space from Manulife, (versus the industry average of 63%). Four major U.S. buildings have received Energy Star Designations from the Environmental Protection Agency (EPA). Three others have been awarded “Building of the Year” designations from the Building Owners and Managers Association (BOMA) in the last two years.
NAL Resources Headquartered in Calgary, Alberta, NAL Resources Ltd. operates NAL Oil and Gas Trust. NAL is a conventional oil and gas producer concentrated in Central Alberta, Southeast Saskatchewan and a small presence in Lake Erie. It produces 36,000 barrels of oil equivalent per day (17,000 for Manulife, the remainder for NAL Oil and Gas Trust). The strategy is to deliver superior returns for Manulife and consistent distributions for the Trust’s unitholders through optimal operation of existing reserves and acquisition of new properties and companies using stringent acquisition criteria. NAL was awarded the Canadian Association of Petroleum Producers Steward of Excellence Award for Health and Safety.
North American Equities (NAE) North American Equities manages C$21 billion of Canadian, U.S and international equities. NAE looks to grow assets gathered through the U.S. and Canadian Wealth Management divisions as well as through the Hong Kong office, while also growing the institutional business in Canada.
MFC Global Investment Management (US) MFC Global (US) manages U.S.$26 billion of equity and fixed income for U.S. Wealth Management (primarily the John Hancock Family of Funds), third party institutional clients and high net-worth clients through John Hancock Private Client Group. MFC Global (US) is marketing select non-traditional fixed income offerings as well as Small and Mid Cap Equity strategies to Mid-Tier Consultants, Sub-Advisory Programs and smaller Endowments and Foundations. It continues to expand offerings through JH Funds and to diversify retail mutual fund assets from Closed End Funds and Financial Sector Strategies.
Declaration Management & Research LLC Declaration, located in McLean, Virginia, is a small firm managing over U.S.$16 billion. Declaration specializes in structured and corporate credit. Mandate strategies include cash flow CDO, active core/limited term, LIBOR plus, and enhanced equity. Declarationâ€™s energy is focused on a number of areas including: expansion of the distribution and asset class coverage of the structured finance business; continued development of a strong distribution and product development platform to service the institutional advisory account market; and continued expansion of its asset and strategy skill sets in high value areas.
Sales, Marketing and Client Service MFC Globalâ€™s sales team is based in Toronto and focuses on the development of institutional business through investment consultants and direct relationships, new product development to support growth of wealth management businesses and building the business globally through an integrated team with staff in Toronto, Boston, Tokyo, Hong Kong.
CUSTOM SOLUTIONS: With our broad offerings, we have the opportunity to leverage our scale and customize investment solutions for clients. - Keith Walter, SVP Sales and Marketing
I N T E R N AT I O N A L I N V E S T M E N T O P E R AT I O N S
Background International Investment Operations has the following
International Investment Operations continues to
key operating units:
develop new investment mandates in all geographic
areas to grow its asset management business, as well as serve the needs of the general fund and assets managed for third parties. We also use the global business practices and resources of MFC Global Investment Management to consistently and rigorously reinforce
The regional office for International Investment
our investment philosophy, and improve the portfolio
Operations is located in Hong Kong, together with the
management, risk management and compliance
Hong Kong investment office, which was established in
disciplines across the operations of the international
2000. The Tokyo investment office was established in
investment offices. This consistency is also key to the
1999 with Manulife's entry into the insurance business
goal of developing our asset management business.
in Japan. Our London office was initially part of our U.K. insurance business, sold in 1995, and has recently been completely revamped into a core investment unit offering specialized services.
In February 2006, MFC Globalâ€™s MGF Japanese Growth Fund, offered to clients in Hong Kong, won two prestigious Hong Kong fund awards for the second year in a row. The awards were the Lipper Fund Award for 10-Year Japanese Equity and the South China Morning Post Fund Award for 10-Year Japanese Equity. The fund is managed for Manulifeâ€™s Hong Kong wealth management group by Stephen Hill, Senior Portfolio Manager, Japanese Equities, MFC Global Investment Management (Europe).
Business Description Each of the operating units in International Investment
general fund assets, but also segregated funds and
Operations has a unique profile, influenced by history
mutual and pension funds in various jurisdictions. In
and geographic opportunities.
Indonesia and Vietnam we enjoy commanding positions
The Hong Kong investment office plays a dual role,
in the markets and are quite strong in the Philippines.
managing the assets of the Hong Kong insurance
The Tokyo investment office manages both general
business and providing oversight and coordination of
fund assets and segregated funds. Both the investment
the Asian Territories. The Hong Kong insurance
arm of our insurance operation and the licensed asset
operation is ranked among the top insurance
manager (MFC Global Investment Management
companies in Hong Kong, and MFC Global is one of
(Japan) are small but growing operations.
the dominant local institutional investors, particularly in the fixed income market, managing general fund assets, segregated funds, pension and mutual fund assets. The Hong Kong team is currently developing an India Equity Fund.
Our London investment office provides credit coverage of European debt issuers and manages European equities, balanced fund asset allocation and global equity mandates supporting our worldwide investment operations. The London office has been heavily involved
Investment offices in the eight Asian Territories manage
in the development of new Eastern Europe and Emerging
the assets of those operations comprising largely
Europe Equity Funds.
SUPPORT FUNCTIONS Background Key to the success of our investment operations are a number of groups not directly involved in investment decisions but which support investment activity in a variety of roles. There are six groups in total. Back and middle-office support functions report to Kevin Adolphe and are led by the following individuals: Wayne Zuk (Securities Operations), Anita Simpson (Investment Systems), Michel Paradis (Investment Controllers), and Kanak Chopra (Market Risk Management). The remaining units are: Global Investment Strategies, led by Ron Otsuki; Human Resources and Communications, led by Kathy Lockwood; and Global Investment Law and Compliance, led by “In 2007, new regulations from CGAAP and new CALM reporting standards will add new layers of complexity to reporting and control. In addition, numerous
Al Seghezzi. These individuals report directly to Donald Guloien. The support functions count on some 465 employees based primarily in Boston and Toronto with a growing presence in MFC Global’s overseas offices.
changes to our accounting and
The group adds value to Manulife’s investment function by
administrative systems and
continually seeking ways to improve the quality of the work it
processes to comply with the
does in order to provide timely, accurate and relevant
standard will be required. It will be
information and support to MFC Global’s investment
a big year for us, but we’re up to
professionals around the world.
the challenge.” - Michel Paradis, Vice President, Head of Investment Controllers
Support Unit Descriptions Investment Controllers Investment Controllers, comprised of 85 employees, is based in both Toronto and Boston. Its mandate is to ensure that the invested assets and related investment income of Manulife Financial, its subsidiaries and the operations of our Investment Division entities are reported accurately, on a timely basis with appropriate
IS supports the investment operations of offices in London, Tokyo, Hong Kong and in its home bases of Boston and Toronto. The group is split structurally between a Project Management Office mandate with a focus on new solutions, and an Application Management mandate supporting all required Investment Division applications, processes and maintenance.
analysis for our various internal and external clients. Michel Paradis leads the team.
Market Risk Management
The group is also responsible for investment accounting
Market Risk Management is based in Toronto and
policy (including interpretation of the new accounting
provides the Division with various investment market-
guidelines) and derivative accounting and settlement.
related general fund risk policies and measures including credit exposures, investment performance and
In addition to its regular duties, the group is currently busy preparing Manulife for new accounting regulations in Canada as well as adjusting for the requirements of
pricing, derivatives strategy monitoring and compliance. The group is led by Kanak Chopra and numbers TK
the Sarbanes-Oxley Act in the United States. Over time, MRM functions and scope have been Investment Systems
expanded to include third party fund performance, investment attribution, non-public asset pricing and
Investment Systems (IS) is responsible for the global
overall derivatives usage analysis and monitoring,
investment technology strategy and the associated
including model vetting, and hedge effectiveness.
projects that will advance the technical platform forward to the desired state.
Ultimately, the role of MRM is to evolve into a comprehensive middle office for all investment-related activity within Manulife.
Investment Law and Real Estate Law
Securities Operations, which is based in both Toronto
Investment Law and Real Estate Law provide high quality
and Boston and led by Wayne Zuk, provides back office
legal services while seeking to reduce enterprise and
(operations) support to all MFC Global offices, providing
business unit risk. We have worked to understand what
the following key services: Securities Administration /
drives our clientsâ€™ businesses and to find practical
Operations, Securities Accounting (CGAAP, UGAAP,
solutions to issues in an increasingly competitive
NAIC, JGAAP), Global Custody, and Project
marketplace. We assist our clients in analyzing, structuring
and negotiating investment transactions and new asset
The group is one of several currently preparing Manulife for new accounting regulations in Canada as well as adjusting for the requirements of the SarbanesOxley Act in the United States.
classes. Investment Lawâ€™s practice focuses on domestic and cross-border debt and equity investments including private placement and Rule 144A investments as well as derivatives matters. Real Estate Law focuses on a broad range of commercial mortgage financings and other real estate related fixed income and equity investments.
Global Investment Law And Compliance Global Investment Law and Compliance consists of three groups based in Boston and Toronto: Investment Law, Real Estate Law and Investment Compliance. As Chief Counsel, Investments, Al Seghezzi serves as general counsel to the Investment Division and head of Investment Compliance and reports to senior management in the Investment Division and to senior management in Global Law and Compliance.
People, Processes and Technology:
Human Resources & Communications
“We have the opportunity to upgrade our people,
Human Resources is responsible for providing
processes and technology in support of asset
compensation, recruiting, and consulting support to all
management for both third party clients and the
division businesses and subsidiaries globally. The unit
general fund (with particular emphasis on
is responsible for the division’s talent: ensuring proper
finance, operations and derivatives), reduce
and competitive compensation, developing succession
manual intervention and increase our efficiency
plans, developing future leaders, encouraging global
mobility and any program designed to attract and - Kevin Adolphe,
SVP and Chief Financial Officer
retain the industry’s best and brightest. There are currently two business partner consulting teams located in Toronto and Boston, respectively. The team recently added a representative in Hong Kong to
Investment Compliance Investment Compliance is responsible for overseeing the regulatory compliance management program for the Division. As a global company, those activities are subjected to oversight by a number of regulators, including insurance and securities regulators. In order to perform its role Investment Compliance works with 24 individuals located in the business units who are responsible for identifying and monitoring regulatory risk and issues in the business units. Investment Compliance supports these individuals by providing expertise and consultation, by striving to find acceptable solutions to business issues within the regulatory framework, by participating in regulatory exams, and by seeking to anticipate areas of concern to our regulators.
support local operations.
BIOGRAPHIES Donald A. Guloien Donald A. Guloien is responsible for the worldwide investment operations of the combined Manulife, John Hancock and Maritime Life companies, as well as Chairman and CEO of MFC Global Investment Management. He also holds the position of President, Manufacturers Life Insurance Company of America and is a member of Manulife Financial's Executive and Management Committees. Donald joined Manulife in 1981 as Research Analyst, Planning and Research, and, in the following years, was promoted to positions of increasing responsibility in both the Canadian and the U.S. Divisions. He became Vice President, U.S. Individual Business, in 1990 and was responsible for the operation of the Company's individual insurance and annuity business in the United States. In 1994, he was appointed Senior Vice President, Business Development, and, in 1999, Executive Vice President, Business Development. During this period he led a number of acquisitions, divestitures and strategic initiatives. These included the merger of Manulife with North American Life Assurance Company, Manulife's demutualization project and Manulife's entry into Japan. Donald became Executive Vice President and Chief Investment Officer in 2001, making him responsible for Manulife's investment operations in Canada, the United States, Europe, Japan, Hong Kong and Asia. Donald holds a Bachelor of Commerce from the University of Toronto. He completed the Canadian Securities Course in 1979 and earned his Fellow Life Management Institute (FLMI) designation in 1982.
INVESTMENT DIVISION EXECUTIVE COMMITTEE the Bank of Montreal and the Hudsonâ€™s Bay Company.
Kevin Adolphe Kevin Adolphe is the Senior Vice President and Chief Financial Officer of MFC Global. He is responsible for all finance, market risk management,
She holds a B.A. from York University and is a Certified Human Resources Professional and Certified Compensation Professional. She has also completed the Canadian Securities Course.
securities operations and systems functions in the division. He joined MFC Global in
March, 2006 after a successful career with CIBC that
Ron Otsuki is Senior Vice President
included a broad range of experiences from trading
and Global Investment Strategy for
derivatives to managing the middle office, serving as
MFC Global Investment Management,
Chair of the Audit Committee for the joint venture
the asset management arm of Manulife
CIBC-Mellon, CFO and Chief Administrative Officer
Financial Corporation. His main
for CIBC World Markets, and most recently, Chief
responsibilities include identifying new asset
Control Officer for the entire bank.
management strategies, developing optimal portfolio
Kevin has worked in Canada, England and Australia, is
mixes, assisting with the overall asset mix timing
a Chartered Accountant and holds a Bachelor of
decisions, overseeing pension plan investment
Commerce degree from the University of Toronto.
strategies, and directing company-wide derivatives trading activity.
Kathy Lockwood Kathy Lockwood is the Vice President of Human Resources at MFC Global
Ron returned to Toronto in 2005 after being based in Hong Kong where he directed investment activity in Asia region and Europe.
Investment Management. She is
He graduated from the University of Western Ontario
responsible for managing investments
with a B.A. in Economics, earned a Bachelor of
HR and Communication globally with a
Commerce from the University of Windsor, and an
team of professionals located in both Boston and Toronto. She has been with Manulife since 1999 having previously held progressively senior HR positions with
M.B.A. in Finance and Investing from York University.
John has been with Manulife for over 20 years. In 1999,
Al Seghezzi Alan Seghezzi is Senior Vice President and Chief Counsel, Investments. Al is responsible for managing and overseeing the legal teams and investment compliance units for the Investments Division. He previously served as Vice
he assumed responsibility for the newly opened investment office in Tokyo. He has over 30 years of experience in the financial services industry, including investment management positions with Manulife Financial. John's educational background includes a Bachelor of Commerce from Rhodes University in South Africa.
President and Counsel of the Investment Law Division at John Hancock representing the investment and
financial areas of the company. Alâ€™s practice areas Peter Stuart is Executive Vice President,
include domestic and cross-border private placements
Canadian Investments. He is
with an emphasis on equipment leasing, project finance
responsible for the management of the
and structured finance, workout and insolvency law,
Company's Canadian fixed income
securities, compliance and corporate law. Before joining
assets, including Public Bonds,
John Hancock in 1985, Al was in private practice.
Canadian mortgage operations, Private Placements and Al received an A.B. from Boston College, a J.D. from
credit, Manulife Capital, Manulife Bank, Private Debt
Boston College Law School and an LLM in tax from
Boston University School of Law. He is a Fellow and Trustee of the American College of Investment Counsel.
He brings to this role vast experience in the investment management industry, including 10 years spent as Chief Investment Officer of Maritime Life.
John Shed Prior to joining Maritime Life, Peter was President and John Shed is Senior Vice President and Managing Director for MFC Global Investment Management. Located in MFC Global's Hong Kong office, John is responsible for all Asia/Japan and European investment activity for Manulife. He leads a team of 40 investment professionals who manage both equity and fixed income mandates.
Director of Aetna Capital Management, after serving as Vice President and Treasurer for Yorkshire Trust Company. He has also held management and senior investment positions with Canada Permanent Trust Company and Royal Trust Company.
Peter earned a Bachelor of Commerce from Queen's University and he holds the Chartered Financial Analyst designation. From 1996 to 2004, he served on the Board of Governors of Dalhousie University and was Chair of the University's Investment Committee
Warren Thomson Warren Thomson is Executive Vice President, U.S. Fixed Income for John Hancock Financial Services. He is responsible for managing U.S.$80 billion of fixed income assets backing the combined Manulife/John Hancock U.S. dollar liability and surplus segments. The fixed income asset types in the portfolio include public bonds, privates, 144Aâ€™s and commercial mortgages. Specialty asset managers include high yield bonds and equity in affordable housing. In 2001, Warren rejoined Manulife as Senior Vice President, Investments, and led Manulifeâ€™s Asset Origination Group (Mortgages, Real Estate, Manulife Capital and NAL Oil and Gas) through one of its most successful performance periods. Prior to that time, Warren served as President of Norfolk Capital Partners Inc., a boutique investment bank that structures and arranges tax-effective financing for high net worth individuals and corporations. From 1987 to 1994, Warren served as Vice President, Taxation for Manulife During this time, he successfully managed the implementation of several new tax systems for the company. Warren graduated with a B.A. from the University of Toronto and has his Chartered Accountant designation from the Ontario Institute of Chartered Accountants.
LETTER FROM THE PRESIDENT
MFC Global Investment Management 200 Bloor Street East, Toronto, Ontario, Canada M4W 1E5