Manulife Asset Management, the Canadian firm, has created a new role of head of asset allocation in Asia.

Sarah Lu will be joining the firm in Hong Kong from Axa Rosenberg Investment Management Asia Pacific, where she spent more than 12 years, most recently leading the tactical asset allocation division.

At Manulife AM, Lu will oversee the development and investment management of asset allocation solutions for investors across the region. She will work closely with the organisation’s dedicated asset allocation team which manages over $90 billion of asset allocation funds.

The appointment of Lu is indicative of the company’s efforts to provide a greater range of financial products that cater to Asia’s ageing demographics, said Michael Dommermuth, president of Asia at Manulife Asset Management.

By 2050, Asia is expected to be the most aged region in the world, surpassing Europe and the US in the amount of pensioners it needs to support financially.

The contribution of the Asian market to overall revenues of the group’s holding company, Manulife Financial, is becoming increasingly significant, as illustrated in its latest financial results, released earlier this year. Manulife Financial reported 1Q12 income of $1.2 billion and 35 per cent growth in insurance sales, an all-time record in Asia.