Mahindra Finance and Manulife form Asset Management Joint Venture in India

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Jun 21, 2019, 05:06 ET

Manulife Investment Management enters India for the first time through this joint venture
Aims to become a premier provider of retail investment solutions
Brings together respective strengths of Mahindra and Manulife to meet the growing needs of Indian consumers

Mumbai, India and NEW DELHI, June 21, 2019 /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."

^[1] As of March 31, 2019. Total is comprised of investment professionals in the institutional asset management segment of Manulife Investment Management, which manages assets on behalf of external clients, the Insurance business and other affiliated businesses. and of Manulife-TEDA.

^[2] Source: Amfi, Bloomberg, CLSA, May 2019

^[3] Source: IIFA, AMFI, CLSA, May 2019

About Mahindra & Mahindra Finance Limited

Mahindra & Mahindra Financial Services Limited (Mahindra Finance), part of the Mahindra Group, is one of India's leading non-banking finance companies. Focused on the rural and semi-urban sector, the Company has over 6.1 million customers and has an AUM of over C$11.39 billion (US$9.7 billion). The Company is a leading vehicle and tractor financier and also offers fixed deposits and loans to SMEs. The Company has over 1,300 MMFSL offices and reaches out to customers spread over 360,000 villages and 7,000 towns across the country.

About Mahindra

The Mahindra Group is a C$27.77billion (US$20.7 billion) federation of companies that enables people to rise through innovative mobility solutions, driving rural prosperity, enhancing urban living, nurturing new businesses and fostering communities. It enjoys a leadership position in utility vehicles, information technology, financial services and vacation ownership in India and is the world's largest tractor company, by volume. It also enjoys a strong presence in agribusiness, aerospace, commercial vehicles, components, defense, logistics, real estate, renewable energy, speedboats and steel, amongst other businesses. Headquartered in India, Mahindra employs over 240,000 people across 100 countries.

About Manulife

Manulife Financial Corporation is a leading international financial services group that helps people make their decisions easier and lives better. We operate primarily as John Hancock in the United States and Manulife elsewhere. We provide financial advice, insurance, as well as wealth and asset management solutions for individuals, groups and institutions. At the end of 2018, we had more than 34,000 employees, over 82,000 agents, and thousands of distribution partners, serving almost 28 million customers. As of March 31, 2019, we had over C$1.1 trillion (US$849 billion) in assets under management and administration (AUMA), and in the previous 12 months we made C$29.4 billion in payments to our customers. Our principal operations in Asia, Canada and the United States are where we have served customers for more than 100 years. With our global headquarters in Toronto, Canada, we trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.

About Manulife Investment Management

Manulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. We draw on more than 150 years of financial stewardship to partner with clients across our institutional, retail, and retirement businesses globally. Our specialist approach to money management includes the highly differentiated strategies of our fixed-income, specialized equity, multi-asset solutions, and private markets teams -- along with access to specialized, unaffiliated asset managers from around the world through our multimanager model. Our personalized, data-driven approach to retirement is focused on delivering financial wellness in retirement plans of all sizes to help plan participants and members retire with dignity.

Headquartered in Toronto, we operate as Manulife Investment Management throughout the world, with the exception of the United States, where the retail and retirement businesses operate as John Hancock Investment Management and John Hancock, respectively; and in Asia and Canada, where the retirement business operates as Manulife. Manulife Investment Management had C$837 billion (US$626 billion) in assets under management and administration as of March 31, 2019¹. Not all offerings are available in all jurisdictions. For additional information, please visit our website at manulifeinvestmentmgt.com.

1. Source: MFC financials. Global Wealth and Asset Management AUMA at March 31, 2019 was C$837 billion (US$626 billion) and includes C$189 billion (US$141 billion) of assets managed on behalf of other segments and C$134 billion (US$100 billion) of assets under administration.

SOURCE Manulife Investment Management