The firm is bolstering its asset management business in India to better serve the wealth needs of its customers in the subcontinent, as well as those of its growing non-resident Indian customers globally.
HSBC Asset Management (India) has agreed to fully acquire L&T Investment Management (LTIM) for $425 million, the firm announced in a statement last week.
LTIM, a wholly owned subsidiary of L&T Finance Holdings and the investment manager of the L&T Mutual Fund, is the 12th largest mutual fund management company in India, with assets under management of INR 803 billion ($10.8 billion) and over 2.4 million active folios as of September 2021.
HSBC intends to merge the operations of LTIM with its existing asset management business in India, which had AUM of INR117 billion ($1.6 billion) as of September 2021, the announcement said.
Under-Penetrated Sector
«LTIM’s customer base and wide footprint in India will provide HSBC with much deeper access to a high-growth wealth management market. India’s rising income levels and higher life expectancy are driving an expanding and yet under-penetrated sector,» Surendra Rosha, HSBC’s co-chief executive, Asia Pacific, said.
HSBC has stated its ambition is to be Asia’s leading wealth manager by 2025. To this end, it acquired Axa Singapore in August 2021, which it said would help expand its insurance and wealth franchise in Singapore, a strategically important scale market for HSBC, and a major hub for its Asean wealth business.
