25 June 2019 11:30
Photo : rawpixel
Investment management Manulife has partnered with the indian company Mahindra & Mahindra Financial Services Limited in the creation of a joint venture to improve the supply and the distribution of funds to individuals in India. This is the first entry in this market for Manulife and its 22nd globally.
The joint venture is created in a ratio of 51 %/49 %.
Mahindra Finance has over five million customers, 1 300 offices in India and over 11,39 billion us dollars of assets under management. As for Manulife, its assets under management and under administration amounted to 1 100 billion at the end of march 2019.
The vice-chairman of Mahindra Finance, Ramesh Iyer, said that the two companies shared the same vision : to create an asset management company of the first order on the market.
To increase sales of mutual funds
“We believe that by combining our efforts, we can create a unique value proposition for our investors, said Mr. Iyer. Strong experience of over 150 years in the management of heritage and assets, Manulife has experienced many successes in developed and emerging markets. We would like to welcome Manulife as a strategic partner in order to stimulate our efforts to increase the penetration rate of mutual funds in India and create positive change. “
Paul Lorentz, president and chief executive officer of Global Wealth & Asset Management for Manulife, said that he is looking forward to partner with Mahindra.
“Mahindra & Mahindra Financial Services has become a leader in the market because it has sought to respond to the unmet needs of customers — in exactly the same way that it was done to ensure the growth of our business in Asia “, he added.
Meet the needs of investors
In a press release, the two companies said that the growth potential in India was considerable. The country has a young population, a growing middle class, and only 12 % of the assets managed by mutual funds relative to gross domestic product.
The joint venture Mahindra-Manulife will focus on the awareness and accessibility of financial instruments for market-based products, including mutual funds, to meet the needs of the investor base growing in India. Emphasis will be placed on the development of adapted products, infrastructure service user-friendly for investors, as well as the distribution networks are diversified.