The Hindu Business Line : StanChart, Pru ICICI tie-up to help clients in investing

STANDARD Chartered Bank has tied up with Prudential ICICI to create what has been named `Asset Shield,' an arrangement that seeks to lead a select group of clients towards equity investing.

Savings routed through this programme are mainly invested in two ways: income funds and index options. While a major portion of a client's surplus is earmarked for income funds, exposure to index options is taken periodically on a selective basis. The idea is to avert erosion of the principal amount as much as possible.

The use of these options, as opposed to the cash equity market, will enable them to leverage — that is, secure a higher participation in the equity market than their actual investment.

Asset Shield, as Stanchart's investment services arm has pointed out, will help its customers to accumulate wealth over a period of time. It may be mentioned here that the bank is the largest distributor of mutual funds in the country.

Stanchart has also designed what it has called EAS — Equity Advisory Services — to select PMS providers for its clients. Among the characteristics of EAS, are meetings with portfolio managers and online access to portfolios.