Nomura to Invest in LIC Mutual Fund Asset Management Company
Tokyo/Mumbai, July 13, 2009 – Nomura Asset Management Co., Ltd., a wholly owned subsidiary of Nomura Holdings, Inc., and LIC Mutual Fund Asset Management Company Limited (LICMF AMC), established by Life Insurance Corporation of India (LIC), India's largest life insurer today announced that Nomura Asset Management has agreed to purchase a 35 percent stake in LIC Mutual Fund Asset Management Company, a subsidiary of LIC.
This partnership between two leaders in their respective fields will combine the excellent track record and on-the-ground knowledge of LICMF AMC with the global research, product development and investment management capabilities of Nomura Asset Management. Indian investors can look forward to an enhanced and differentiated offering of services and products from the joint venture.
The formation of the joint venture is subject to necessary regulatory and unit-holder approvals, which the partners will be seeking in due course.
Commenting on the announcement, Mr. 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."
Life Insurance Corporation of India
The Life Insurance Corporation of India is the largest life insurer in India managing investments of about 8,039.7 billion rupees (approx. US$ 167 billion) and individual life insurance policies of over 200 million and until recently was the only provider of life insurance in India. LIC has an extensive retail marketing network covering the length and the breadth of India through 1.345 million agents operating through 2,048 Branches and other alternative distribution channels and is one of the most trusted brands in India.
LIC Mutual Fund Asset Management Company
Established in 1989 by Life Insurance Corporation of India (LIC), India's largest life insure, LIC Mutual Fund is one of the oldest mutual funds in India. In 1994 LIC Sponsored the Jeevan Bima Sahayog Asset Management Company, subsequently renamed as LIC Mutual Fund Asset Management Company in 2006. LICMF AMC had 324.1 billion rupees of Average Assets Under Management (AAuM) for the month of June 2009. With these assets under its management LICMF AMC is ranked 7th in the Indian asset management industry with a 4.8% market share.
Nomura Asset Management
Nomura Asset Management, a wholly owned subsidiary of Nomura Holdings, is one of the leading Japanese and Asian fund managers with 18,950.2 billion yen (approx. US$ 192 billion) of assets under management as of March 31, 2009.
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Nomura
Nomura is a leading financial services group and the preeminent Asian-based investment bank with worldwide reach. Nomura provides a broad range of innovative solutions tailored to the specific requirements of individual, institutional, corporate and government clients through an international network in over 30 countries. Based in Tokyo and with regional headquarters in Hong Kong, London, and New York, Nomura employs about 26,000 staff worldwide. Nomura's unique understanding of Asia enables the company to make a difference for clients through five business divisions: retail, global markets, investment banking, merchant banking, and asset management. For further information about Nomura, please visit www.nomura.com.
