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Laxman Pai, Opalesque Asia:

HSBC Asset Management, an indirect wholly-owned subsidiary of HSBC Holdings plc (HSBC), will acquire L&T Investment Management Limited (LTIM), the mutual fund business of L&T Finance Holdings (LTFH) for $425 million (Rs 3,250 crore). The acquisition is part of the firm's plan to expand its reach in Asia.

LTIM is a wholly-owned subsidiary of LTFH and the investment manager of the L&T Mutual Fund. HSBC plans to merge the mutual funds business with its existing asset-management operations in India, which had $1.6 billion assets under management as of end-September.

With assets under management (AUM) of INR803bn ($10.8bn) and over 2.4m active folios as of September 2021, LTIM is currently ranked as the 12th largest mutual fund management company in India.

The U.K.-based lender has also been looking to grow its Asian wealth management and insurance operations through acquisitions in Asia. In August, HSBC agreed to acquire insurer Singapore-based life insurance unit of France's AXA SA.

The acquisitions demonstrate "our commitment to capturing the Asia wealth opportunity," HSBC chief executive Noel Quinn said. "We will continue to invest significantly to achieve that goal," Noel said.

Surendra Rosha, HSBC's Co-Chief Executive Asia Pacific, added: "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......................

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