The Housing Development Finance Corporation (HDFC) has signed a joint participation agreement to set up a mutual fund with Standard Life Investments (SLI), the investment arm of the UK-based Standard Life Assurance Company (SLAC) group.
The agreement was signed by HDFC chairman Deepak Parekh and Alexander M Skinner, general manager (International) of SLAC.
SLAC already holds five per cent of HDFC's capital. SLI would take a strategic stake of 26 per cent in the asset management company (AMC) and would be represented on the board of the AMC.
The SLAC group has already committed 20 million pounds in the Indian equity markets with Housing Development Finance Corporation as its Indian advisers.
The proposed mutual fund plans to offer a range of investment products to the retail as well as institutional investors in India.
A statement issued by HDFC said the mutual fund would leverage HDFC's investment management capabilities as well as its brand, distribution capabilities and existing client base.
The mutual fund will also have access to SLI's training facilities. The statement said the proposed insurance joint venture would also draw on the investment management skills of the AMC.
SLAC has total assets under management in excess of 65 billion pounds sterling worldwide and has a AAA rating from both Moody's and S&P.
In October 1995, HDFC had signed an insurance joint venture agreement which was subsequently renewed with SLAC.
