Schroders aims to start mutual fund in India

Schroders Plc, a 204-year-old London fund manager, wants to open a mutual-fund business in India to tap demand for investments among the world's second-most-populous nation, Chief Executive Officer Michael Dobson said.

The company, London's largest publicly traded fund manager, is considering either a joint venture or entering the market on its own, Dobson said in a telephone interview today.

"The one major country that we are not in today is India,'' Dobson said. ``It's got a big and growing mutual-fund market and we will be looking at that.''

Dobson, 54, has been trying to overcome declines in the company's traditional UK pension-fund business by selling higher fee investments such as mutual funds and hedge funds, and by entering more international markets. Schroders, which oversees about 128.5 billion pounds ($257 billion), started a joint venture in China in 2005.

Assets of the money manager overseen for clients outside the UK now account for 56 per cent of the total, up from 43 per cent five years ago. India's mutual-fund market has about $73 billion of client assets, according to Boston-based Cerulli Associates.

The company said earlier today it appointed Stephen Brooks as chief financial officer, replacing Jonathan Asquith who is becoming vice chairman. Brooks joined Schroders in 2005 as head of group finance.

Asquith is planning to focus on the development of the company's fixed income, private equity and property businesses. Schroders has only about 20 per cent of its assets in fixed income and institutional clients are looking for more investments in that area, Dobson said.

The company is also looking to expand its private equity funds of funds business that has about 1 billion pounds of assets, he said.

FUTURE PLANS

The company is considering either a joint venture or entering the market solo

Assets of the money manager for clients outside the UK now account for 56 per cent of the total, up from 43 per cent five years ago