Sundaram Asset Management Company Ltd is planning to set up special purpose vehicle (SPV) in Singapore and looking for a partner to channel investments in Indian securities and redemption in foreign currency.
Speaking to reporters in Chennai, company’s managing director T P Raman said, “We are planning to set up an international platform in Singapore to channel investments to our mutual fund schemes. We are also looking for a partner in Mauritius.”
“Simply put, the international platform proposed in Singapore is akin to a foreign institutional investor (FII) that will invest in Sundaram Mutual. The company is waiting for the Singapore government’s clearance,” added T T Srinivasa Raghavan, managing director of Sundaram Finance.
Raman added, “There are several medium-sized funds with a corpus of around $100 million which have shown interest in investing in our funds but would not like to be categorised as FII.” Commenting on the Global Advantage Fund post buyout of BNP Paribas’ 49.9 per cent stake in the asset management company Raman said, “we will negotiate commercial terms with BNP Paribas to operate the fund.”
It may be noted, recently Sundaram Finance acquired BNP Paribas stakes in Sundaram BNP Paribas Asset Management Company Ltd and Sundaram BNP Paribas Trustee Company Ltd, Chennai, for Rs141.48 crore. “Post the buyout every thing remains the same except the name,” remarked Raman referring to the change in the mutual fund’s name to Sundaram Mutual.
He said the mutual fund is working towards increasing its retail reach within India and has decided to come out with a Capital Protection Fund shortly.
Asked whether the company would look for a new partner Raghavan said, “If there is a case to bring in a partner we are open to that. But we are not immediately looking for a partner.”
On Wednesday Sundaram Mutual inducted Harsha Viji as its new Deputy Managing Director.
