Reliance Nippon Life Asset Management (RNAM)
18 NOV 2019 Key Takeaways
Rising Stars Conference 2019
Nippon brand to help geographic expansion: The company plans to launch products in other markets where Nippon has strong
presence such as Thailand, Australia etc. The company is likely to benefit from global best practices on both debt and equity
side and the rollout is already in progress.
Additionally, Nippon certainly looks to add value on risk and compliance functions; additional filing with FSA (Japanese regulator) will
improve compliance. The company earns 40-50 bps on offshore funds depending on fund type (debt/equity).
First mover advantage on digital distribution channels: The company led distribution on digital channels much before its peers
with platforms like Paytm, ETMoney and Paisa Bazaar. These partnerships started at inception stage itself which is helping
volumes. Moreover, apps like Business Easy, Simply Save have lot of APIs which drive volumes higher. 54% transactions are now
on digital. Next leg of growth will come through through relationship deepening by leveraging on analytics.
Employee cost to remain stable: Employee cost will remain at this level except for ESOPs (as per Ind-AS). ESOP cost will taper off
going ahead. 6% out of 7.5% has been allocated with tenure of 7 years and it covers 150 employees.
No ADAG exposure on balance sheet: AMC balance sheet has zero exposure to ADAG group. While exposure is
Rs 2.50 bn across schemes. These exposures, with face value of Rs 11.20 bn, were largely towards Reliance Home Finance
and Reliance Commercial Finance (~80% of the exposure).