The Hindu Business Line : OptiMix to increase exposure to overseas stocks

Kolkata March 9 For local investors who have started looking at international investing, here is a welcome stance. OptiMix, the division of ING that specialises in multi-manager products, will explore the possibility of including in its portfolios more funds that invest in overseas stocks.

OptiMix has already flagged off such an allocation strategy, although in a small way, by identifying Franklin Templeton MF's Equity Income Fund. The latter, launched in April last year, has investments in stocks in both India and elsewhere.

The incidence of such international funds will only grow in the country, Mr Mugunthan Siva, CIO, OptiMix, said in a reference to the changes (affecting foreign investment by domestic funds) recently brought about by the regulator.

He also referred to the premise, voiced by some influential sections, that the Indian market may now lose some of its attractiveness, relative to other emerging markets. The development, he added, may well prompt some locals to consider greater exposure to overseas securities.

Mr Siva also pointed out that the asset management industry is in the days ahead expected to throw up more products aimed at international investments. Among the players that may bring these out are Fidelity and HSBC, it is felt.

These, once launched, will join the likes of Templeton India Equity Income and Principal Global Opportunities. The latter has lately changed tack and is currently focusing on one of Principal's emerging markets products.

OptiMix, for now, is testing a `manage the manager' proposal, a first of sorts for an outfit that has earlier introduced FoFs (fund of funds). Its latest initiative will involve advice given by a set of third-party advisors. An underlying manager may be a PMS or a mutual fund, it is pointed out.

Multi-manager, Mr Siva noted, is a fast growing domain, swelling at an impressive CAGR compared to the asset management sector as a whole. Retail multi-manager products have accounted for a good portion of net new inflows, considering longer term allocations, he added.

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