Mahindra Finance recently entered into a joint venture with Manulife Investment Management, a leading global financial services group. Mahindra Finance divested 49% of its share in its hitherto wholly-owned subsidiary Mahindra Asset Management Company Pvt Ltd (Mahindra AMC) to form a 51:49 partnership with Manulife. Manulife has invested US$35 million (~INR 265 crore) in the JV which aims to expand its fund offerings, drive fund penetration and achieve long-term wealth creation in India.
“Manulife Investment Management and Mahindra Finance share a vision of building a market leading asset management business in India,” said Ramesh Iyer, Vice Chairman & Managing Director, Mahindra Finance. “I’m confident that this partnership will help accelerate our efforts towards increasing mutual fund penetration through innovative products and solutions, and best-in-class service standards. There’s a strong potential for growth in the country beyond traditional markets,” added Mr Iyer.
Mahindra AMC is one of India’s fastest growing asset management companies, which currently offers over 13 investment schemes.
‘’In a country where more than 80% of the workforce is self-employed, economic downturns can spell doom unless past savings were invested in suitable investment products,” said Ashutosh Bishnoi, MD & CEO, Mahindra AMC.
“More than ever before, these turbulent times remind us that creating robust long-term investment products and solutions for Indian investors is an urgent priority. Manulife’s global best practices and processes will help Indian investors manage risk more sensibly,” he said.
The JV will combine Mahindra Finance’s domestic market strength with Manulife’s global wealth and asset management capabilities. The partnership will also leverage Mahindra Finance’s successful track record in building businesses and fostering successful partnerships, as well as Manulife’s expertise in meeting the needs of consumers across both developed and developing nations across the globe.
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