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Nippon Life India AMC gains after decent Q2 results

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Capital Market
Last Updated : Oct 28 2020 | 10:50 AM IST

Nippon Life India Asset Management rose 1.11% to Rs 276.45 after consolidated net profit rose 6.2% to Rs 145.23 crore on 0.1% decrease in total income to Rs 322.36 crore in Q2 September 2020 over Q2 September 2019.

Consolidated profit before tax (PBT) jumped 20.6% to Rs 190.96 crore in Q2 September 2020 as against Rs 158.28 crore in Q2 September 2019. Current tax expense for the quarter surged 110.2% to Rs 38.27 crore as against Rs 18.21 crore in Q2 September 2019. The Q2 result was declared after trading hours yesterday, 27 October 2020.

As on 30 September 2020, Nippon Life India Asset Management (NAM India) assets under management (AUM) stood at Rs 2,76,774 crore (i.e. $ 37.40 billion). For the quarter ended 30 September 2020, NIMF's average assets under management was at Rs 2,00,030 crore (i.e. $ 27 billion). For the quarter ended 30 September 2020, share of equity assets rose to 39% of NIMF's AUM as against 38% for the quarter ended 30 June 2020.

As on September 2020, NIMF has one of the largest retail assets in the Industry, at Rs 52,020 crore (i.e. $ 7 billion). Retail assets contributed 26% to NIMF's AUM. As on September 2020, NIMF garnered AUM of Rs 36,278 crore (i.e. $ 4.90 billion) from 'Beyond the Top 30 cities' category. As on September 2020, Individual AUM was Rs 98,533 crore (i.e. $ 13.30 billion) and contributed 49% to NIMF's AUM. As on 30 September 2020, NIMF has geographical presence at approx. 290 locations pan India, and is amongst the highest in the industry.

For the quarter ended 30 September 2020, NIMF is one of the largest ETF players with AUM of Rs 28,579 crore ($3.9 billion) and a market share of 13.5%.

Sundeep Sikka, the ED & chief executive officer (CEO) of NAM India, has said that: "The integration process with Nippon Life, which began in Oct 2019, is now complete. We have successfully established the 'Nippon India Mutual Fund' brand in India, especially in smaller cities and towns, both amongst institutional and retail investors. The new brand has also received positive feedback from our 77,000+ distributors."

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"Out of the last 12 months, we have witnessed full or partial lockdown for over six months. Despite challenges, NIMF completed one of the largest digital NFOs (Multi Asset Fund) in August, garnering over Rs 700 crore. Further, NIMF expanded its product suite in the passive fund category, and launched the India's 1st IT ETF and, the Nifty Smallcap 250 Index Fund. The mandate to manage POLIF and RPOLIF's funds greatly enhances our credibility across domestic and foreign investors."

"In H1, profit improved by 15% driven by steady growth in assets, and gains from superior cost optimisation initiatives."

Nippon Life India Asset Management is one of the largest asset managers in India, managing (directly & indirectly) assets across mutual funds, managed accounts, alternative investments and offshore funds. NAM India is the asset manager of Nippon India Mutual Fund's schemes. The company also acts as an advisor for India focused Equity and Fixed Income funds in Japan (launched by Nissay Asset Management), and in Thailand (launched by BBL Asset Management). It also manages offshore funds through its subsidiaries in Singapore and Mauritius and,also has representative office in Dubai thereby catering to investors across Asia, Middle East, UK, US, and Europe.

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First Published: Oct 28 2020 | 10:07 AM IST

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