The Hindu Business Line : Sundaram BNP Paribas MF eyes fixed income segment

Sundaram Mutual joint venture with 285 billion French Asset Management BNP Paribas will help Sundaram BNP Paribas Mutual in India to foray into fixed income and structured products segment.

The French AMC will in turn get expertise from Sundaram Mutual for its international clients who seek to invest in Indian equity markets, the company officials announced at a press conference to formally declare the joint venture.

"India's share in the BRIC funds launched by BNP Paribas stands at 20 per cent.

"Worldwide there is a lot of interest in new emerging markets and our joint venture with Sundaram Mutual will increase our presence in the equity markets," said Mr Gilles Glicenstein, Chairman, BNP Paribas Asset Management.

BNP Paribas has acquired 49.9 per cent stake in the Indian Mutual Fund.

Mr Glicenstein said as a new market, India had the capacity to sustain high domestic growth and hence it has a strong potential. BNP Paribas will look at launching funds for Indian clients and funds for international clients who want to invest in India.

Also, more global niche funds would be launched, he added.

"Equity funds account for 75 per cent of assets of Sundaram Mutual and with this joint venture, we can bring more products structured for the Indian investors with a thrust on retail investors," said Mr S. Viji, Chairman, Sundaram Finance Ltd.

The AMC plans to stay in the top 10 Asset Management Companies in India for the next three years.

Sundaram BNP Paribas Mutual will also foray into pension funds once the regulations are clear.