Maiden multi-manager MF soon

ING Vysya Mutual Fund has come up with a new wing, Optimix AMC, which would introduce the concept of multi-manager funds in the Indian market is awaiting Sebi clearance.

The concept, which has proved highly successful in the developed markets, is expected to be officially launched by the November end.

Unlike other funds, which invest in other funds, multi manager fund would invite other funds to manage a part of its assets in their own distinct style.

"An optimum blend of various investment styles across the industry," says Optimix MD Ashvin Arora-who has managed a similar product in Australia.

"The investment philosophy of this fund is to allocate part of its assets to various fund houses to manage it according to their individual style. This tried-and-tested formula has yielded results globally. Multi manager funds have consistently delivered about 35 per cent returns in the past 12 months compared to about 7 per cent registered by the rest of the industry worldwide," he added.

According to Krishnamurthy Vijayan, CEO, JM Financial Mutual fund, "The scheme has been successful worldwide and is likely to produce similar result in Indian. As our markets evolve, more complicated products would hit the stand."

Hybrid funds, which cater to various asset classes, have globally proven to be more successful than other schemes. The research team at Optimix would select five fund houses, based on their quantitative and qualitative management, to participate in the portfolio structuring of the funds.

"We plan to launch six schemes simultaneously, including a pure equity scheme, a pure debt scheme apart from hybrid schemes. Optimix would be a standalone division and will work closely with other fund houses, maintaining a Chinese wall with ING Mutual," said Arora.

Multi manager funds have a market size of about $47 billion in Australia, in an industry with a total size of about $280 billion. The US-based fund Russell along with ING is one of the biggest players in this segment globally.

Team Optimix is already in place with Arora as the managing director, Mugunthan Siva as chief investing officer (CIO), Sumeet Vaid-chief marketing officer (CMO) apart from two fund managers.

Sajjan Desai, the equity fund manager was previously with Prudential ICICI mutual fund while Badrish Kulhalli, the debt fund manager was with Alliance Capital mutual fund, now part of Birla Sun Life Mutual fund.

The fund would probe all the available distribution channels available, including the institutional distributors, according to Arora. More the merrier

The fund is to allocate part of its assets to various fund houses to manage it according to their individual style.

ING Vysya's, Optimix AMC,which would introduce the concept of multi-manager funds in the Indian market is awaiting Sebi clearance

The AMC plans to launch six schemes simultaneously, including a pure equity scheme, a pure debt scheme apart from hybrid schemes