AIG to invest in MF arm picks

AIG Global Asset Management Company is promising some distinct features in its products to be launched in India to give a sense of assurance to its investors.

Parent AIG Global Investment Group, a Sebi-registered foreign institutional investor, will be putting its money in stocks which are in the portfolio of its mutual fund arm. AIG Global is world's sixth largest institutional asset manager.

"AIG Global will invest in stocks we pick through our MF business. This is a strategy, we are offering to this market. In simple words, what is good for me (the fund house) is also good for you (the investor)," said Saurabh Sonthalia, managing director and CEO AIG India Asset Management Company.

AIG would be launching its first equity diversified scheme, AIG India Equity Fund, very soon. The AMC has already filed its draft application with the Securities and Exchange Board of India and expects to launch the fund by May.

The global investor, who entered the country through its private equity business in 1997, has interests in real estate and consumer finance business. It also has an offshore development centre with around 500 employees and an insurance joint venture with the Tatas.

"In the days to come, fund houses would have to focus on global money management. In such a scenario, having a strong global footprint would be vital. Offering structured products, such as a global mid-cap fund, the managers need to have global product capability," said Sonthalia.

AIG would be replicating its global research standards for the Indian business. Its equity platform for investment communications system brings its research analysts on a single platform. This would be used by the fund managers.

AIG Global AMC is among the slew of foreign funds, including Dawnay Day, JP Morgan, UBS, Nikko Asset, Korea's Mirae Asset, Credit Suisse, which have announced or entered India in recent months.