Nippon Life India AMC net up 6% in Q2 on lower cost

Our Bureau Mumbai | Updated on October 27, 2020

Average AUM up marginally at ₹1.99 lakh cr in Sept qtr

Nippon Life India Asset Management Company has reported six per cent increase in September quarter net profit at ₹145 crore against ₹137 crore logged in the same period last year, on the back lower cost of operations.

Total income, which was boosted by an other income of ₹64 crore (₹22 crore), was flat at last year’s level ₹322 crore. Expenses in the quarter under review was down at ₹131 crore (₹164 crore).

Sundeep Sikka, Executive Director, NAM India said the integration process with Nippon Life, which began last October was complete and the brand has been established in smaller cities and towns. Despite challenges, NIMF completed one of the largest digital NFOs (Multi Asset Fund) in August garnering over ₹700 crore. Further, NIMF expanded its product suite in the passive fund category and launched the country’s first IT ETF and Nifty Smallcap 250 Index Fund.

Postal/Rural Life insurance

The joint mandate to manage Postal Life Insurance and Rural Postal Life Insurance funds for three years will enhance the fund house credibility across domestic and foreign investors, he said. The average asset under management of the fund house was up marginally at ₹1.99 lakh crore in September quarter against ₹1.97 lakh crore. However, it increased substantially from ₹1.73 lakh crore logged in April amid Covid lock down.

Equity asset was down at ₹98,600 crore against ₹1.10 lakh crore logged last year while fixed income asset was up at ₹93,700 crore (₹87,300 crore) with addition of 150 new institutional investors to its fold every quarter. With a bouquet of 19 exchange traded funds, it manages assets of ₹28,600 crore in the segment. Retail asset under management was flat at ₹52,000 crore (₹51,900 crore) in September quarter. The monthly inflow through systematic investment plan was down at ₹620 core (₹760 crore) in the quarter under review.

Published on October 27, 2020

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