Q: I am gradually repositioning my portfolio towards more asset light companies with growing international business.
I am looking at specifically the pacific nations operations of these two companies. Who has the larger operations there ? Which company is more impacted by these operations? Who has better growth potential from the pacific ? Any other light you can provide would be appreciated.
Thanks. Derek.
I am looking at specifically the pacific nations operations of these two companies. Who has the larger operations there ? Which company is more impacted by these operations? Who has better growth potential from the pacific ? Any other light you can provide would be appreciated.
Thanks. Derek.
5i Research Answer:
SLF has $3.5B in Asian revenue, on a total of $33B (11%). MFC has $13.6B on $40B (34%). MFC of course has more overall exposure. SLF reported a 25% gain in assets from the region last quarter, but earnings from the division rose only 11%. MFC premiums from Asia rose 34% in the Q2 and earnings rose 16%. While difficult to forecast, both companies have said they intend to expand their Asian operations significantly going forward, as part of their strategic growth plans to capitalize on rising demand in fast-growing Asian markets.