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Mahindra & Mahindra Financial Services has divested 49 per cent stake in its wholly-owned subsidiary, Mahindra Asset Management Company to Manulife Investment Management (Singapore) Pte, for $35 million (₹265 crore).
Both the companies aim to expand their fund offerings, drive fund penetration and achieve long-term wealth creation in India.
The proposed joint venture comes at a time when investors’ confidence in mutual fund is shaken by the trouble in debt-oriented schemes while equity returns made in the last three years have been wiped off in the recent Covid meltdown.
The joint venture brings together Mahindra Financial Services’ domestic market strength and Manulife’s global asset management capabilities.
Manulife is a leading international financial services group with assets under management and administration of over $915 billion as of last December.
Mahindra AMC currently offers over 13 investment schemes. With annualised average Assets Under Management of ₹5,217 crore as of March-end and over 2.12 lakh customer accounts from 400 cities. it has over 14,200 empanelled distributors.
Incredible appetite
Ramesh Iyer, Vice-Chairman and Managing Director, Mahindra Financial Services, said both the companies believe that there is an incredible appetite for investment products and strong potential for growth in India beyond traditional markets.
The partnership will help accelerate efforts towards increasing mutual fund penetration, through innovative products and solutions, he said.
Paul Lorentz, President and CEO, Global Wealth and Asset Management, Manulife Investment Management said the company has a strong history of building retail fund businesses across Asia and increase accessibility of retail mutual fund products in India.
Need of the hour
Ashutosh Bishnoi, Managing Director, Mahindra AMC, said more than ever before, these turbulent times need robust long-term investment products and solutions for Indian investors on an urgent basis.
In India where over 80 per cent of the workforce is self-employed, economic downturns can spell doom unless past savings were invested in suitable investment products, he said.
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