Mahindra & Mahindra Financial Services Limited (Mahindra Finance) has today, completed the proceedings for divestment of 49 percent stake in its wholly-owned subsidiary, Mahindra Asset Management Company Private Limited (Mahindra AMC), to Manulife*, a leading global financial services group. Manulife has invested US$ 35 million (~INR 265 crore) in the 51:49 joint venture, which aims to expand its fund offerings, drive fund penetration, and achieve long term wealth creation in India.

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 andrichness of experience in servicing the needs of consumers in Asia and around the world across developed and developing markets.

Manulife is a leading international financial services group, providing wealth and asset management and life insurance solutions for individuals, groups and institutions around the world, with assets under management and administration of over US$ 915 billion as of December 31, 2019.

Mahindra AMC is one of the fastest growing asset management companies in India, currently offering over 13 investment schemes. With annualized average Assets Under Management at INR 5,217crores as of 31st March, 2020 and over 2.12 lakh customer accounts from 400 cities, Mahindra AMC is powered by over 14200 empaneled distributors.

Mr. Ramesh Iyer, Vice-Chairman & 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.”

Mr. Paul Lorentz, President and CEO, Global Wealth and Asset Management, Manulife Investment Management said, “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.”

Mr. Ashutosh Bishnoi, MD & CEO, Mahindra AMC said, “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 for the country. In a country where over 80% of the workforce is self-employed, economic downturns can spell doom unless past savings were invested in suitable investment products. Manulife Investment Management naturally fits as the right strategic partner for Mahindra Mutual Fund, as they bring over 150 years of fund products experience across all types of economic cycles and scenarios. Besides, their global best practices and processes will help Indian investors manage risk more sensibly.