Nomura Asset Management, a wholly-owned subsidiary of Nomura Holdings, has agreed to purchase a 35% stake in LIC Mutual Fund Asset Management Company (LICMF AMC), a subsidiary of Life Insurance Corporation (LIC) of India.
The partnership is expected to combine on-the-ground knowledge of LICMF AMC with the global research, product development and investment management capabilities of Nomura Asset Management.
Commenting on the announcement, Atsushi Yoshikawa, President and CEO of Nomura Asset Management, said: “India is one of the fastest growing markets for asset management in Asia and is key to Nomura’s push to be a world-class asset management firm with a strong competitive advantage in Japan and Asia. By building on LIC’s outstanding brand image and customer network, we will be able to apply best practices to our combined business through our extensive experience as a global asset manager.”
The formation of the joint venture is subject to necessary regulatory and unit-holder approvals, which the partners will be seeking in due course.
LIC is managing investments of about $167 billion in India. It has a retail marketing network with over 1.345 million agents operating through 2,048 branches and other alternative distribution channels across India.
Established in 1989 by LIC, LICMF AMC had approximately $7 billion of Average Assets Under Management for the month of June 2009.
