IndusInd, Invesco sign mutual fund JV
MUMBAI : To capitalize on the country’s rising equity investment trend, especially through mutual funds, IndusInd International Holdings Ltd. (IIHL), a Mauritius-based investment firm led by the Hinduja brothers, said on Tuesday it has entered into an asset management joint venture with Atlanta-based fund management group Invesco Ltd.
It has done this by acquiring 60% in the country’s 17th largest asset management company, Invesco Asset Management India Ltd, which was a 100% subsidiary of Invesco Ltd. According to a statement by Invesco Mutual Fund, Invesco Ltd will retain 40% stake in the mutual fund JV, while the rest will be held by IIHL, which is a promoter of the country’s fifth largest private sector lender IndusInd Bank Ltd.
The deal is subject to regulatory approval from Sebi. In a statement, Invesco MF said that it owns at least ₹85,393 crore in assets under management in India.
Globally, Invesco Mutual Fund has over $1.6 trillion in AUM. IIHL’s investment portfolio currently includes IndusInd Bank, Sterling Bank & Trust Ltd.- Bahamas, capital market assets (Afrinex Exchange Ltd-Mauritius with a cumulative listing of $13.5 billion of underlying securities) and wealth management services (Beryllus Capital-UK, Switzerland & Singapore).
IIHL and Invesco have not disclosed the valuation of Invesco MF at which the latest JV deal has been signed up, but typically, AMCs are valued on their asset mix, with equity-heavy ones getting higher valuation due to their ability to earn more commissions from selling equity-linked MF schemes than from selling fixed-income schemes. The valuation of an AMC also depends on its profitability, distribution strength, brand equity of the sponsors, and the performance and popularity of
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