Nippon Life India Asset Management and Taiwan’s largest asset manager, Cathay Securities Investment Trust, have teamed up to potentially distribute investment products in each other’s markets.
They will “explore areas for developing, managing, marketing and distributing each other’s investment products”, the Indian investment arm of Japan’s Nippon Life Insurance says in a statement on April 15.
Cathay Securities has US$26.76 billion of total assets currently. The firm’s “reach and breadth of products offerings will enable Indian investors to have much needed diversification out of their local market by providing access to a sophisticated, technology heavy market”, according to Nippon Life India Chief Executive Officer Sundeep Sikka.
“Our objective at Nippon Life India is to become a global asset manager based out of India,” he says in the statement. “In India, whenever we talk about asset management, it is mostly about mutual funds but from our perspective, the idea is to build a true-blue asset management company, which has presence across mutual funds, ETFs, offshore funds, private equity, venture and alternative funds. This strategic collaboration is a step in that direction.”
Cathay Securities CEO Andy Chang adds that his company is “excited” to provide Indian investors with access to Taiwan’s technology market, noting that the island is a global leader in chip research and design.
The Indian mutual fund industry’s assets under management increased more than five-fold over the last ten years to 31.43 trillion rupees ($408.59 billion) as of March 2021 from 5.92 trillion rupees in 2011, according to figures from the Association of Mutual Funds in India.
Mumbai-based Nippon Life India had 16.36 billion rupees of assets as of March.