T Rowe to ramp up investment in India

Global asset management firm T Rowe Price, which has been investing in the booming Indian stocks over the years, is looking to increase its presence in the country, its senior executives said.

The Baltimore-based asset management company (AMC) has invested 10 per cent of its $11 billion earmarked for global emerging markets in India.

"T Rowe, which is one of the top five foreign institutional investors (FIIs) registered with the Securities and Exchange Board of India (Sebi), is looking to step up its investments in the country," said

Nick Beecroft, portfolio specialist, Asia (ex-Japan), T Rowe Price.

The global AMC has in collaboration with Kotak Asset Management Company launched a Luxembourg-domiciled fund called T Rowe Price Funds Sicav-Global Emerging Markets Equity Fund.

Kotak Mahindra Asset Management will raise money in India through Kotak Global Emerging Market Fund, convert it in dollars and invest it in the T Rowe Price Funds Sicav-Global Emerging Markets Equity Fund. The fund is a three-year close-ended equity scheme.

However, Sandesh Kirkire, chief executive officer, Kotak Mahindra AMC, did not rule out the possibility of converting it into an open-ended scheme based on investor interest. Beecroft said it was the best-performing fund of T Rowe Price.

Officials said T Rowe had no plans to go solo in the Indian mutual fund segment at the moment, but they did not rule out any such plans in the future. T Rowe Price, with assets under management (AUM) of nearly $350 billion, is currently expanding its investments across emerging economies.

Frances Dydasco, portfolio manager, South Asian markets, T Rowe Price, said that the company was bullish on telecom and found the valuations of Indian companies attractive, despite the recent bull-run.

However, Arvind Sabharwal, India head of T Rowe Price, said that the country's markets are susceptible to a short-term correction.

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BETTING BIG

T Rowe Price has invested in the county 10 per cent of its $11 billion earmarked for global emerging markets

The group is one of the top five foreign institutional investors registered with the Securities and Exchange Board of India

The Baltimore-based asset management company, with assets under management of nearly $350 billion, is currently expanding its investments across emerging economies