Nikko AM, Ambit form JV for investment advisory biz

Japan's Nikko Asset Management and financial services firm Ambit Holdings today entered into a joint venture to provide investment management and advisory services.

The joint venture would manage India-focused funds for both the partners, with an initial asset under management (AUM) of $150 million, the companies said in a statement.

As per the agreement, Nikko would acquire a 50.1% stake in Ambit Mauritius Investment Managers, a foreign institutional investor entity and 49% in Ambit Investment Advisors (AIA).

Nikko AM's Chief Investment Officer would be appointed as Chairman on the board of AIA, and Andrew Holland would be the Chief executive. Nikko AM will assist Ambit in building out its advisory team in India.

"We have had a long partnership with Nikko AM as part of the agreement that Ambit signed with Nikko AM in 2007. I am certain that the JV will be very successful," Ambit Group CEO Ashok Wadhwa said.

The partnership would give Ambit the ability to tap into Nikko AM's product development capabilities and extensive network of distributors. The JV with Nikko AM is the next step in the growth of the Investment Advisory business unit.

"I am certain that we will build a strong business together with our investment capability and strategies and Nikko AM's fund raising capability," Ambit Investment Advisory CEO Andrew Holland said.