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🇩🇪 Germany /Economy & Trade

Investment: How Deutsche Bank wants to draw savers toward India

From Süddeutsche Zeitung · () German

Translated from German and summarized by DistantNews. Read the original for the full story.

At a glance

In-depth Named sources New plan
  • Deutsche Bank’s asset-management arm DWS has entered a strategic partnership with India’s Nippon Life India Asset Management to expand investment products and distribution.
  • DWS will offer NAMI products to its customers, while NAMI will help distribute DWS products in India; DWS has acquired 40% of a NAMI subsidiary focused on alternative investments.
  • The deal still needs approval from Indian regulators, as European asset managers seek access to India’s large and diverse growth market.

India’s size is the attraction driving a new investment push. About 1.4 billion people live in the country, many of them young and well educated, and investors looking for growth are increasingly turning their attention to the subcontinent.

Larry Fink, chief executive of BlackRock, called the coming 20 to 25 years an “era of India” during a television appearance in February. Deutsche Bank and its asset manager DWS also want a share of the market. DWS has agreed a strategic partnership with NAMI, or Nippon Life India Asset Management.

The partnership has two aims. DWS will offer products from its Indian partner, giving Deutsche Bank customers more ways to invest in India. NAMI will help distribute DWS products in the Indian market. To establish the relationship, DWS acquired 40% of a NAMI subsidiary specializing in alternative investments such as private equity. The price was not disclosed.

India is currently the world’s fifth-largest economy and will move into third place in the coming years.

· Sundeep SikkaThe NAMI chief executive was speaking to journalists in Munich about India’s economic prospects.

The deal still requires approval from Indian regulators. DWS chief executive Stefan Hoops expects that approval this year. NAMI chief executive Sundeep Sikka told journalists in Munich that India is currently the world’s fifth-largest economy and will move into third place in the coming years.

Hoops and Sikka had met German investors to encourage them to invest in India. Hoops said the market was too large to ignore, but building DWS’s own operations there would be difficult because of the country’s size and diversity. India has 28 states, more than 20 officially recognized languages and many religions. Other asset managers, including BlackRock and Amundi, have also formed partnerships with Indian companies to offer investment opportunities and establish distribution channels.

The executives said investment in India could become a trend among European retail investors. They also pointed to the European Union’s stated goal of deepening its partnership with India, including to strengthen independence from China.

India is simply too large to ignore.

· Stefan HoopsThe DWS chief executive described why the asset manager is seeking access to the Indian market.
About this summary

Originally published by Süddeutsche Zeitung in German. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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