The Hindu Business Line : AIG to park its $10 m in maiden fund

New Delhi April 27 American International Group (AIG) plans to invest $10 million in the maiden fund offering of AIG Global Investment Group in India - AIG India Equity Fund.

"This amount of $10 million would come from AIG's own balance sheet," Mr Sunil Mehta, Country Head and Chief Executive of American International Group in India, said here today.

AIG India Equity Fund is an open-ended diversified equity fund, which would be open for purchase from May 3 to May 31.

Mr Mehta maintained that he did not see AIG as a late entrant to the Indian mutual fund industry and that there was enough potential for growth here.

Asked about the rationale for AIG to take a stake in its own fund offering, Mr Saurabh Sonthalia, Chief Executive Officer of AIG Global Asset Management Company (India), said this "was part of our alignment philosophy with our investors".

He pointed out that many investors now want fund managers to look at funds from the former's point of view. Such a move may give some comfort to the prospective investor.

Mortgage guarantee

Meanwhile, Mr Mehta said that AIG is keen to foray into mortgage guarantee and asset reconstruction (capital recovery) businesses in the coming months. It also wants to expand its role in infrastructure financing.

"We are awaiting final guidelines from RBI for the mortgage guarantee business," he said.

AIG also plans to expand its headcount in India from 4,500 professionals across eight businesses to 6,600 by the end of the current calendar year,

It is also looking to expand its geographical presence across India and take the number of offices (in all the eight businesses) to 350 across 120 cities from the existing level of about 180 offices.

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