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The Derivative Strategy & Execution team is responsible for hedging risk exposures arising from currency, equity, interest rate, credit and commodity markets using derivatives such as futures, forwards, swaps and options for Global Portfolio Management Group, Asset Liability Management Group and the Global Variable Annuity Hedging Programs. Effectively designed hedging programs are critical to Manulifes ability to continue to grow its business in the future, while maintaining an appropriate risk profile.
Wealth management products offering investments in equity markets with principal and other guarantees are a fast-growing business at Manulife. Offering guarantees related to investment returns and longevity within our wealth management products is considered critical to the continued vitality of this business. These guarantees create significant exposure to equity market returns and interest rate movements, both of which are among the most significant risk exposures for the Company. Industry best practice entails a dynamic hedging program to mitigate these risk exposures. An effectively designed and operating dynamic hedging program is key to Manulifes ability to continue to grow this business in the future while maintaining an appropriate risk profile.
The Variable Annuity Hedging team is accountable for the management of the derivatives book with the objective of maintaining a hedge position against our variable annuity investment return exposure. The risk is monitored live, 24/5 and covered by Toronto and Asia trading teams. The sole mandate of the VA Hedging desk to maintain a hedge position. It does not trade for profit. The Derivatives Trader and Analyst is responsible for monitoring various hedge program exposures and for executing derivatives trades when exposures reach predetermined levels.
The Senior Derivative Analyst & Trader will work independently to provide expert advice to portfolio managers on assessing and analyzing risk exposures in their portfolios and will assist them in determining an optimal hedging solution. The Analyst will monitor market activities and events and will assess how these could impact execution of trades. The Analyst will maintain and build relationships with external counterparties and internal clients. The Analyst will be required to have all of the qualifications necessary for registration with the regulator, the Ontario Securities Commission.
- Assist Business Unit Portfolio Managers to model and simulate the impact of change of market conditions on the portfolios risk exposure. Customize solutions that would neutralize the risk exposure at minimum cost. Reverse engineer investment dealers proposals and provide analysis of fair value pricing.
- Work with the Asset Liability Management (ALM) Group on development of corporate initiatives requiring use of derivatives, for example, tax and accounting strategies. Execute hedges that arise from these programs and from the monthly ALM rebalancing true-up activities.
- Manage asset portfolios for Canadian Universal Life backing variable return products. Discuss performance of portfolios with the ALM group and the Business Unit weekly and monthly. Suggest alternative hedge instrument(s) that would improve performance.
- Monitor markets to determine the impact of market activities and economic releases on trade execution. Manage relationship with dealers to determine where and how best pricing can be obtained, and how trades can be executed with minimal disturbance to the market. Execute trades for portfolios. Ensure that all data feeds to pricing tools and models are accurate and current. Monitor developments of structured products, their pricing and potential benefits to the company.
- Provide maintenance on derivative trade inventory. Such activities include trade amendments, liquidations and restructurings that require changes to trade parameters and negotiations with the counterparties.
- Ensure that all activities, trading and analytical, are within the Companys Compliance and Audit Procedures as well as those of the Regulatory agencies.
- Assist Compliance and Tax in reviewing prospectuses and documents related to derivative transactions for off-balance sheet mandates. Participate, as required, in due diligence meetings and launch of mandates. The VP & Senior Portfolio Manager, Derivative Strategy & Execution has oversight on the changes recommended. Transact, as required on derivative trades for these mandates.
- Undergraduate/advanced degree in a quantitative discipline e.g. engineering, math, science or economics/finance
- Knowledge of derivative products, financial markets, financial risk management and macroeconomics
- Knowledge and experience in equity, fixed income, foreign exchange and commodity markets
- Advanced Excel and experience in programming with VB or Matlab
- Registered with regulatory agencies, Ontario Securities Commission and Securities and Exchange Commission (SEC)
- Successful completion of CFA
- Knowledge of applied statistics and economics and finance
- Minimum 5 years in derivatives trading and analyzes
- Ability to work under pressure, tight time deadlines and rapidly-changing financial markets
- Ability to prioritize and progress on several tasks
- Ability to work in a team environment
- Strong technical and analytical skills
- Proficiency with computers and major application software
- Strong communication and negotiation skills, both written and oral
- Action oriented, quick to learn and grasp new technology and concepts
- Much of the work will involve making business decisions in real time. Candidate must be able to make the tradeoff between accuracy and practical decision making under rapidly changing market conditions. Candidate must be able to handle multiple trading orders.
- During volatile markets, the candidate may be required to monitor markets and risk, outside of a typical 9 to 5 workday, until the hand over to Asia team.
- The transactions done for the General Accounts insurance business are focused on execution for liability hedging. KPIs are not driven by P&L or total return. This position may not appeal to candidates with proprietary trading or total return focused experience.
- The analyst will be in contact with clients in the local time zone as well as international clients in Asia and Japan. The latter requires occasional teleconference meetings in the time zone of those offices.
- In certain circumstances, the business units are looking for assistance that may require solutions that may not be readily available in the market and would need some initiative to find the appropriate solution.
If you are ready to unleash your potential, its time to start your career with Manulife/John Hancock.
Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, and wealth and asset management solutions for individuals, groups and institutions. At the end of 2020, we had more than 37,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 30 million customers. As of December 31, 2020, we had $1.3 trillion (US$1.0 trillion) in assets under management and administration, and in the previous 12 months we made $31.6 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 155years. We trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges and under ‘945’ in Hong Kong.
Manulife is an Equal Opportunity Employer
At Manulife /John Hancock , we embrace our diversity. We strive to attract, develop and retain a workforce that is as diverse as the customers we serve and to foster an inclusive work environment that embraces the strength of cultures and individuals. We are committed to fair recruitment, retention, advancement and compensation, and we administer all of our practices and programs without discrimination on the basis of race, ancestry, place of origin, colour , ethnic origin, citizenship, religion or religious beliefs, creed, sex (including pregnancy and pregnancy-related conditions), sexual orientation, genetic characteristics, veteran status, gender identity, gender expression, age, marital status, family status, disability, or any other ground protected by applicable law.
It is our priority to remove barriers to provide equal access to employment. A Human Resources representative will work with applicants who request a reasonable accommodation during the application process . All information shared during the accommodation request process will be stored and used in a manner that is consistent with applicable laws and Manulife/John Hancock policies . To request a reasonable accommodation in the application process, contact [email protected] .