• Investment World
• eWorld
• Brand Line
• Mentor
• Life
• Canvas
• Praxis
• Urban Pulse
• Brand Quest
• The New Manager

Stocks

• Quotes
• SE Diary
• Scoreboard
• Open-End Mutual Fund

Cross Currency

• Rates
  
  

Shipping

• Ports
  
  

Archives

• Yesterday
• Datewise
• Resources
• In Focus
• In Depth

Group Sites

• The Hindu
• The Hindu ePaper
• Business Line
• Business Line ePaper
• Sportstar
• Frontline
• The Hindu eBooks
• The Hindu Images

Nilanjan Dey

Fundamentals strengthen country's case

Kolkata , Nov. 17

Societe Generale Asset Management (SGAM) sees Indian equities as worthy of attracting fresh allocations on a 3-5 years' basis, thanks to fundamental factors that collectively strengthen the case for the country's economy.

SGAM, among the handful of international players to have taken stake in an Indian fund house - SBI Mutual Fund in this case - is sure that the local market will gain from the kind of corporate earnings visibility that is expected to become evident in the days ahead.

It is also sanguine about the corrective phases that will set in off and on in the next 3-5 years and is convinced that its India-specific fund will persuade new investors to come in, according to Ms Michala Marcussen, Head of Strategy and Economic Research.

That India is high on SG's agenda is clear from the fact that it still does not have too many country funds - it does have a China fund - although there are a number of emerging market products in its stable.

The India fund, rolled out only a few months back, manages $130 million.

SG, which thinks that the fundamental story will play out well in the Indian context, is currently somewhat overweight on Asia.

More specifically, it has started taking "a more moderate view" of the two largest and most promising Asian economies. Incidentally, SG manages close to 400 billion globally.

The company is also eager to see changes in the Indian pensions market. While the opening up of the pensions sector is being debated in political circles, the segment is expected to grow substantially in the days ahead.

SG is keen to observe the progress of capital-protected funds in the country.

Several local fund houses have already sent their offer documents to the regulator.

SBI MF in pact with US FII

Meanwhile, SBI MF has wrapped up an agreement with a large US-headquartered FII for managing a couple of hundred million dollars. Its identity is not being disclosed at the moment.

SGAM, which holds 37 per cent in the SBI-promoted fund house, sees the development as one that has followed its India strategy.

"We believe that the joint venture with SBI MF has significant growth potential, especially considering the strengths of our Indian partner. It will continue to leverage local fund management expertise," said Ms Marcussen.

SBI MF, which has lately been engaged in introducing various fixed-income products, is now set to launch a close-ended equity fund. The latter will turn open-ended after three years.

More Stories on : Outlook | Asset Management Companies

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Entity for wealth management

Copyright © 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line