Manulife Investment Management puts $49 million into joint venture

Deal will expand fund offerings and wealth creation strategy in South Asian market

Manulife Investment Management puts $49 million into joint venture

Manulife Investment Management (MIM) has acquired a 49% stake in Mahindra & Mahindra Financial Services Limited (Mahindra Finance), investing $49 million into the joint venture.

Through the deal, MIM, which is headquartered in Toronto, aims to expand its fund offerings, drive fund penetration and achieve long-term wealth creation in India.

A press release said the joint venture brings together Mahindra Finance's domestic market strength and track record of building successful businesses and partnerships, with Manulife's global wealth and asset management capabilities.

Manulife has assets under management and administration of more than US$915 billion as of December 31, 2019, while Mahindra AMC is one of the fastest growing asset management companies in India, currently offering more than 13 investment schemes.

Paul Lorentz, president and CEO, Global Wealth and Asset Management, Manulife Investment Management, said in a statement: “We have a strong history of building retail fund businesses across Asia, and with this joint venture our focus is to drive fund penetration in India.

“We look forward to working with the perfect partner in Mahindra Finance to increase awareness and accessibility of retail mutual fund products in India, expand our investment solutions, and build multi-channel distribution."

Meanwhile, Ramesh Iyer, vice-chairman and managing director, Mahindra Finance said: “Manulife Investment Management and Mahindra Finance share a common vision of building a market leading asset management business in India. We firmly believe that there is an incredible appetite for investment products and strong potential for growth in India beyond traditional markets.

“I am 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.”