Mahindra AMC has entered into a joint venture (JV) with Canada-headquartered global financial services group, Manulife. Mahindra AMC will own 51% in the JV, while Manulife will hold 49%.
Ramesh Iyer, Vice-Chairman and MD of Mahindra Finance, said that for the 49% stake, Manulife will bring in US$35 million in to the business. According to him, the tie-up with Manulife will help Mahindra AMC’s efforts to increase mutual fund penetration in India.
Explaining the rationale behind the JV, Ashutoh Bishnoi, MD & CEO, Mahindra AMC, said, “The extensive on-the-ground experience of Manulife across global emerging markets will help to cater to needs of the developing Indian retail fund market.”
At an event in Mumbai, Bishnoi stressed that their roadmap will be to have the “largest base of clients” and not just the “largest asset base”.
Manulife Financial Corporation (MFC) provides financial advice, insurance, as well as wealth and asset management solutions. AUM of MFC as on March 31, 2019, stood at US$849 billion.
Manulife Investment Management is the global wealth and asset management arm of MFC.
Following the JV, Mahindra AMC did not rule out the possibility of acquiring some of the existing AMCs. However, as of now, they do not have any acquisition plans.
When asked about Mahindra Finance collaborating with MFC in their other business verticals, the company said that currently the tie-up would be restricted to asset management business.
