The fund house is likely to work on new product and solution offerings in the coming months, leveraging the expertise offered by Manulife as a partner in the 51:49 joint venture
Canada-based asset manager Manulife on Wednesday completed a 49 per cent stake purchase in Mahindra Mutual Fund
(MF), for a consideration of $35 million (Rs 265 crore).
At the time the deal was announced last year, it valued Mahindra MF at 10.4 per cent of its asset size, which was among the richest valuations for any such deal seen in the MF industry. In March quarter, Mahindra MF had average asset base of Rs 5,396 crore.
“Getting a partner like Manulife in the prevailing conditions, will help Mahindra MF to offer product solutions that cater to the current needs of investors, as markets are going through a difficult cycle,” said Ashutosh Bishnoi, managing director and chief executive officer of Mahindra MF.
The fund house is likely to work on new product and solution offerings in the coming months, leveraging the expertise offered by Manulife as a partner in the 51:49 joint venture.
Retail asset base and focus on driving penetration in smaller cities is what attracted Manulife towards Mahindra MF.
“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,” pointed out Paul Lorentz, president and chief executive officer, global wealth and asset management, Manulife Investment Management.