Looking to attract more foreign fund inflows, Motilal Oswal Asset Management Company may consider roping in a strategic partner to gain distribution muscle in international markets.

Motilal Oswal AMC, which runs Motilal Oswal Mutual Fund, is also working to expand its current ETF (Exchange Traded Fund) product range, its CEO said.

“We are open to consider a strategic partner if they can help us with distribution access internationally and allow us to carry our Indian equity manufacturing prowess to foreign shores,” Motilal Oswal AMC CEO Aashish P. Somaiyaa told PTI in an interview.

Somaiyaa, however, said the company’s products are well positioned for the domestic market.

Motilal Oswal Mutual Fund manages over Rs 538 crore of investors assets spread over five funds at present.

To attract foreign investors, it plans to leverage the brand value of the parent firm, Motilal Oswal, which is present in various segments of financial services sector.

“Motilal Oswal as a group has excellent recognition in certain international markets like the USA, UK, Middle East and few other Asian countries.

“Even currently we do get inflows from foreign investors registered as FIIs in our equity strategies and ETFs. With the proposed launch of our maiden open ended equity offering, we will work towards getting foreign money from other routes too,” Somaiyaa said.

The AMC sees the Indian mutual fund distribution market changing going forward. Distribution in India is likely to get more regulated and organised and the business will get ’platformised’ among mainly banking, broker-dealer and organised IFA (Independent Financial Advisor) platforms, he added.

On potential acquisition targets, the CEO said: “One keeps options open in managing a business but any partnership, acquisition or merger has to come with augmenting of competencies that are far more value accretive than just assets under management.”

(This article was published on April 8, 2013)
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