Money & Banking

Nippon Life India AMC posts 36% rise in net, pays ₹3 dividend

Our Bureau Mumbai | Updated on January 23, 2020

The Nippon Life India Asset Management Company has reported 36 per cent increase in December quarter net profit at ₹149 crore against ₹110 crore logged in the same period last year on the back of lower expenses.

Revenue from operations were down 13 per cent at ₹303 crore (₹350 crore).

The fund house has declared a dividend of ₹3 and fixed February 4 as the record date. The dividend will be paid from February 10 onwards.

Fees and commission expenses plunged 83 per cent to ₹12 crore from ₹73 crore as SEBI shifted commission paid to distributors as part of the individual scheme expense. Overall expenses of the fund house was down 31 per cent at ₹167 crore (₹241 crore).

The asset under management of the fund house was ₹3.1-lakh crore as of December-end.

Retail asset at ₹54,630 crore, accounted for 26 per cent of the overall AUM. As a proportion of overall quarterly average AUM, equity assets grew to 44 per cent from 38 per cent as of December-end 2019.

Beyond-the-Top-30

The fund house garnered an AUM of ₹38,676 crore from Beyond-the-Top-30 cities and about 33 lakh SIP folios with annualised book of over ₹10,000 crore.

At ₹1.1-lakh crore, individual investors AUM contributed 53 per cent of the fund house’s assets. Its investor folios were at about 89 lakh.

Nippon India’s Category II and Category III alternative investment funds has a total commitment of about ₹2,700 crore across various schemes. It has the highest number of offices among AMCs at about 290 locations.

Sundeep Sikka, ED & CEO, Nippon Life India AMC, said post rebranding many of leading corporates, SMEs and HNIs have returned leading to a substantial increase in AUM.

“We will continue to capitalise on our strong distribution network and make inroads into smaller cities and towns to attract more investments from retail investors for our future growth and part of our profitable growth strategy,” he said.

 

 

Published on January 23, 2020

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