Canada’s 132-year-old insurer Manulife chooses to stake in Mahindra AMC. Canadian insurance multinational Manulife is invading the Indian mutual fund industry by a strategic stake buy in Mahindra Asset Management Company, a specialist in the financial industry. Headquartered in Toronto Manulife has picked up a 49 % stake in Mahindra Asset Management for $35 million to expand its business. Marking its entry into the 43-member big Indian mutual fund industry. The deal values the Mahindra AMC Manulife mutual fund unit of the Mahindra and Mahindra group at Rs 500 crore. It has been declared that Mahindra AMC has joined into a joint venture with Manulife Asset Management Singapore that is a part of MFC ( Manulife Financial Corporation)
The above table is a comparison between the target partner and acquired partner that what is collaboration results. The Mahindra AMC & Manulife joint venture has the highest AMC Valuation.
|Target/Partner||Acquirer/ Partner||Stake %||Estimated Deal Value in (crore)||AMC Valuation (as % of AUM)||Year|
|Reliance Nippon Life||Nippon Life||43||4,484||4.46||2019|
|Morgan Stanely||HDFC mutual fund||100||150-170||4.5-5.0||2013|
|UTI AMC||T Rowe Price||26||650||3.60||2010|
BackgroundManulife, which was founded in 1887 as the ‘The Manufacturers’ Life Insurance Company’. Manulife Investment Management is a global wealth and asset management part of MFC, carrying on more than 150 years of financial stewardship with its global HQ in Toronto, Canada, and its major services are in Asia, Canada, and the United States. Mahindra Asset, which began operations in July 2016, controls assets of Rs 5,000 crore across 9 schemes. They were ranked 29th in terms of assets in the industry. Manulife manages $849 billion of assets worldwide. Manulife Financial Corporation is the first international financial services group that supports people to make their options easier and lives better. Work primarily as John Hancock in the United States and Manulife elsewhere. Provide financial advice, support, as well as wealth and asset management answers for individuals, groups, and institutions. At the end of 2018, they had more than 34,000 employees, above 82,000 agents, and 100+of distribution partners, working almost 28 million customers. As of March 31, 2019, they had over C$1.1 trillion (US$849 billion) in assets under management and administration, and in the past 12 months, they made C$29.4 billion in payments to our customers. The principal operations in Asia, Canada, and the United States are where they have served customers for more than 100 years. With our global headquarters in Toronto, Canada, they trade as ‘MFC’ on the Toronto, New York, and the Philippine stock markets and under ‘945’ in Hong Kong.
Future with Mahindra-Manulife asset management joint ventureMFC had over $849 billion in AUM and administration on 31st March 2019. The Joint Venture takes together Mahindra’s domestic market power and tracks record of happily building businesses centered on meeting customers’ needs with Manulife’s global wealth & asset management skills and plenty of experience in maintaining the needs of consumers over advanced and expanding markets. Mahindra will operate 51% and Manulife will become 49% stake owner in Mahindra AMC. Manulife matches as the right imperative partner for Mahindra Mutual Fund as they bring an immense pool of fund management talent, backed by global best systems and processes. Mahindra has 2 best performing mutual funds in 2020.
- Mahindra Badhat Yojana-Regular-Growth that gives 21.253% returns in 1 year. (Category- Diversified Multi-cap )
- Mahindra Unnati Emerging Business Yojana-Regular- Growth gives returns 19.9704 in 1 year. (Category- Mid-cap)