Mirae Asset to launch fixed income scheme

Our Bureau Updated - July 09, 2013 at 09:58 PM.

Emerging Bluechip Fund outperforms benchmarks over 3 years

Jisang Yoo, CEO, Mirae Asset Global Investments Jisang Yoo, CEO, Mirae Asset Global Investments

Mirae Asset Mutual Fund, which completed five years of operations in India, plans to launch new fixed income schemes to consolidate its product offering and expand its reach to more cities.

Jisang Yoo, Chief Executive Officer, Mirae Asset Global Investments, said despite challenging market conditions, Mirae Asset Emerging Bluechip Fund, the flagship scheme focusing on mid-cap stocks, has managed to deliver a return of eight per cent over three years compared with – 4 (minus 4) per cent registered by CNX NSE Midcap and 2.87 per cent by the S&P Sensex.

“We collected just Rs 23 crore through the Bluechip Fund three years back, which has now grown to Rs 144 crore. Apart from our expertise in picking up the right mid-cap stock, this reflects the potential of Indian markets,” he said.

Considering the fact that Mirae globally manages assets worth $58 billion (Rs 3.6 lakh crore), Yoo said the fund house had wondered about the prospects in the Indian market after collecting such a small amount through the Bluechip Fund. Now, however, Mirae is confident that the Indian market can deliver better returns despite all the challenges.

REAL ESTATE

Of late, the asset management company has shown interest in buying real estate across the globe. In May, Mirae Asset Global Investments bought a 31-storey office building in Chicago’s central business district for Rs 1,200 crore. The building, at 6.50 lakh square foot, was managed by JP Morgan Chase & Co for 10 years.

In the last four months, Yoo said, Mirae has acquired the Four Seasons Hotel in Australia and plans to develop the Four Seasons Hotel chain in Seoul. With the volatile equity markets impacting cash flow, Mirae is currently focusing on building up real estate assets that can fetch fixed income over a period of time, he said.

“We are interested in buying real estate asset in India also, but currently the regulation does not permit it. We will wait for regulatory amendments before we take the plunge,” he said.

>suresh.iyengar@thehindu.co.in

Published on July 9, 2013 16:28