The Hindu Business Line : Chola MF to tap DBS expertise in asset management

CHOLAMANDALAM Mutual Fund is gearing itself to tap the experience gathered by DBS Bank, the new ally of the Murugappa group, in asset management. For starters, it is set to develop a re-branding strategy, based on the `Chola DBS' label.

Chola MF will leverage on the overseas connection in all possible ways, especially for the areas that the partner outfit has an expertise in, said Mr Sashi Krishnan, CEO, while referring to its large-scale presence in Singapore and Hong Kong - regions that have been identified as its "anchor markets".

DBS is said to have built its business on several fronts, including product development, risk management and credit assessment.

It is Singapore's largest bank at the moment (and the fifth-largest banking group in Hong Kong) with assets of S$175 billion.

"DBS has a lead position in the asset management space," Mr Krishnan stated, adding that it handles about S$12 billion for a variety of clients. "While it is business as usual at this juncture, we are looking forward to key changes," he told Business Line.

The fund management business run by DBS currently extends over a number of product categories. Besides equity and fixed-income funds, its range includes a few that are not available in India at all. These include capital-protected funds and fund of hedged funds.

The DBS core competency, it is claimed, spans "global fixed-income, Asian equities and absolute return strategies".

It also runs a clutch of single-country funds, including those focused on Japan, Malaysia and Thailand.

Chola MF has been lately trying to increase its asset base, courtesy new equity funds such as Chola Midcap and Chola Multi-Cap.

It now plans to introduce other products, including an equity-linked savings scheme.

DBS and Murugappa, it may be recalled, signed a partnership agreement last month for retail financial services, covering consumer finance and securities. The two parties will be equal shareholders in Chola Investment and Finance Co.

The latter too will be renamed to reflect the change. Investment by the Singapore-based institution, incidentally, will be up to S$87 million.

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