T Rowe Price weighs AMC debut

T Rowe Price, one of the world's largest investment management companies, plans to enter the mutual fund business in the country.

Thus, it may join a slew of global asset management companies such as Credit Suisse and JP Morgan eyeing a pie of the country's booming asset management market.Sources close to the development said T Rowe Price, which has invested in companies including Bharti Airtel, Balaji Telefilms, Financial Technologies, ICICI Bank and Moser Baer through T Rowe Price New Asia Fund, is keen on foraying into the country's mutual fund industry.

When contacted, Frances Dydasco, portfolio manager of T. Rowe Price New Asia Fund, said: "We have been active investors in the Indian equity market on behalf of our clients for well over 10 years, and our interest and investments in the country have grown considerably since inception. We continue to find quality and interesting investment opportunities in India, and expect this to be the case for many years to come."

On a specific query on whether the fund would enter the mutual fund business, she said, "As to potential investments in the Indian mutual fund business, we are not commenting at this time."

T. Rowe Price, headquartered in Baltimore, US, provides a broad array of mutual funds, sub-advisory services, and separate account management for individual and institutional investors, retirement plans and financial intermediaries. The company also offers a variety of sophisticated investment planning and guidance tools.

It managed over $308.1 billion assets till September 30 last year, combining the assets of T. Rowe Price Associates Inc, T. Rowe Price International Inc, T. Rowe Price Global Investment Services and T. Rowe Price Global Asset Management.

Several global majors are seriously looking at the country's AMC business, buoyed by the rising stock markets and the low penetration of the mutual fund products among retail investors.

Last week, UBS acquired Standard Chartered's AMC business in the country for over Rs 540 crore. Korean company Mirea Assets Group and AIG are awaiting the regulator approval, as all these companies plan a solo entry into the country.