INSUBCONTINENT EXCLUSIVE:
Mumbai: Toronto-headquartered Manulife has picked up 49 per cent stake in Mahindra Asset Management for $35 million, marking its entry into
the 43-member strong Indian mutual fund industry
The deal values the mutual fund arm of the Mahindra and Mahindra group at Rs 500 crore.
Mahindra Asset, which started operations in July
2016, manages assets of Rs 5,000 crore across nine schemes, and is ranked 29th in terms of assets in the industry
as Indians move from physical assets to financial assets in the coming years
India.
The mutual fund industry asset under management (AUM) has shown a 2.5-fold increase from Rs 10.11 lakh crore in May 2014 to Rs 25.94
lakh crore in May 2019.
Most of the deals in the industry in recent years, however, have been those where a promoter has exited
A year ago, BlackRock exited its AMC joint venture with DSP in India
Over the last decade, many foreign asset managers like Morgan Stanley, JPMorgan, Pine-Bridge, ING, Goldman Sachs, Deustche Asset management
and Fidelity have left the Indian asset management Industry as regulations were tightened and margins shrunk.
Most foreign asset management
companies prefer to operate through joint ventures with Franklin Templeton and Invesco being the exceptions.