MUMBAI, India and NEW DELHI/PRNewswire/ — Mahindra & Mahindra Financial Services Limited (Mahindra Finance) through their subsidiary, Mahindra AMC, entered into a 51:49 joint venture with Manulife which aims to expand the depth and breadth of fund offerings and retail fund penetration in India. The joint venture brings together Mahindra’s domestic market strength and track record of building successful businesses and partnerships, with Manulife’s global wealth and asset management capabilities and richness of experience in servicing the needs of consumers in Asia and around the world across developed and developing markets.In over 22 markets globally, further expanded with the entry into India, Manulife’s assets under management and administration (AUMA) are C$1.1 trillion (US$ 849 billion) as of 31 March 2019. This will also build on the team of over 450 investment professionals worldwide at Manulife Investment Management, the wealth and asset management segment of Manulife[1].
Mahindra Finance is one of India’s leading non-banking financial companies. With more than 5 million customers and over 1,300 offices across India, it has over C$11.39 billion (US$8.49 billion) of assets under management (AUM). It is part of the Mahindra Group, a C$27.77 billion (US$20.7 billion) customer-centric organisation that focuses on enhancing customer value and driving positive changes through a diverse group of companies.
Mr. Ramesh Iyer, Vice-Chairman & MD, Mahindra & Mahindra Financial Services Limited said, “Mahindra Finance, with its strong financial services presence in India and innovative products and services designed around evolving customer needs, has been adding value to customers across the country. Mahindra & Manulife share a common vision of building a market leading asset management business, servicing the needs of retail investors and becoming one of India’s most admired asset management companies. We believe that together we can create a unique value proposition for our retail investors. Manulife’s wealth and asset management experience extends over 150 years and they have enjoyed successes across emerging and developed markets. We welcome Manulife as a strategic partner, to further drive our efforts at increasing mutual fund penetration in India and driving positive change.”
Mr. Paul Lorentz, President & CEO, Global Wealth & Asset Management, Manulife Investment Management, remarked, “As a leading global financial services company with experience across the spectrum of investment capabilities, cutting across customer segments as well as markets in various stages of development, we are very excited to be partnering with Mahindra to bring that experience to consumers in India and further extend our global footprint. Mahindra & Mahindra Financial Services has become a market leader by focusing on meeting unmet customer needs, which mirrors our own experiences in growing our business in Asia.”
With a young population, growing middle class and only 12%[2] of mutual fund AUM relative to gross domestic product (GDP), India’s fund industry offers high upside potential compared to mature markets such as the United States which boasts a fund AUM relative to GDP of 114%[3]. The Mahindra-Manulife joint venture will focus on increasing the awareness and accessibility of market-oriented financial instruments, which include mutual fund products, to meet the needs of the rapidly growing investor base in India, with an emphasis on creating suitable products, investor-friendly service infrastructure and growing multi-channel distribution.
Mr. Ashutosh Bishnoi, MD & CEO, Mahindra AMC, said, “Mahindra AMC has, over the last few years, successfully made in-roads into areas beyond the traditional investment markets. Our experience shows that there is tremendous appetite for investment products and potential for growth, in these markets. Manulife Investment Management fits as the right strategic partner for Mahindra Mutual fund as they bring an enormous pool of fund management talent, backed by global best practices and processes. Manulife’s on the ground experience in global emerging markets will help to cater to the needs of the developing Indian retail fund market.”
Mr. Anil Wadhwani, CEO & President of Manulife Asia, said, “We are excited to be partnering with Mahindra to serve the growing middle class in India by drawing experience from our existing business in providing over 10 million customers across Asia with our holistic offerings including mutual funds, insurance, and pension. We are extremely pleased that Mahindra also shares our passion for helping customers, and together we will strive to make investment decisions easier and the lives of India citizens better.”
