Asset managers continue India push
Three western fund management groups have either set up or expanded operations in India in a week, as they look to capitalise on the growth predicted for the country's mutual funds and wider financial services industry.
The local joint venture business of French insurer Axa yesterday launched its first two mutual funds in the Indian market; two treasury or cash management products.
Bharti Axa Investment Managers, half-owned by Axa and the Indian telecoms-to- agribusiness combine Bharti Enterprises, received regulatory approval in April.
Meanwhile, Italian-owned fund manager Pioneer Investments on Monday established a funds joint venture with Bank of Baroda, a local bank, after receiving a go-ahead from regulators. Baroda Pioneer Asset Management will inherit the Bank of Baroda mutual fund from its predecessor.
Dario Frigerio, chief executive of Pioneer, described the Indian mutual funds industry as "one of the most exciting opportunities we see around the world."
Also yesterday, Deutsche Bank promoted the chief investment officer at its $2.6bn (€1.6bn) Indian asset management business to chief executive.
Suresh Soni takes over following the departure of Vijay Mantri, who left to join the recently-established joint venture between the US financial services group Prudential Financial and the Indian real estate firm DLF, as chief executive.
Asset managers have been flocking to take advantage of India's rising prosperity and growing middle class. The country's economy has grown at more than 7% a year on average over the decade 1997 to 2007, according to the CIA World Factbook.
India led the growth in last year's World Wealth Report from the investment bank Merrill Lynch and data providers Capgemini, which tracks the number of millionnaires. The number of high net worth individuals in India, defined as those with more than $1m in liquid assets, grew by 22.7% between 2006 and last year.
As well as western groups targeting India through joint ventures, business is also flowing in the other direction. The country's largest fund manager, Reliance Asset Management, received regulatory approval in May from the UK's Financial Services Authority to open an office in London, targeting international investors for its Emergent India fund.
-- Write to Mark Cobley at mcobley@efinancialnews.com
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