Markets

RNAM ties up with Australian fund to launch ETF

Our Bureau Mumbai | Updated on June 22, 2019 Published on June 20, 2019

Reliance Nippon Life Asset Management has entered into tie up with ETF Securities of Australia to help the later launch NDIA Exchange Traded Fund.

RNAM will provide advisory service to the Australian company.

Listed on the Australian Securities Exchange on Thursday with the code NDIA, the ETF will provide Australian investors unique opportunity to tap into the world’s fastest-growing major economy.

NDIA tracks Nifty 50 index, which holds the country’s fifty biggest companies listed on the NSE. It accounts for 13 sectors representing about 66.8 per cent of the free float market capitalisation of the stocks listed on the NSE.

Indpendent ETF provider

ETF Securities is Australia’s only independent ETF provider. Founded by philanthropist Graham Tuckwell, the group has more than A$1 billion in funds under management, across sectors as diverse as robotics, biotechnology, infrastructure and commodities.

RNAM, which took over the schemes of Goldman Sachs in 2016, has an ETF AUM of ₹24,546 crore as of May 31 and has 60 per cent of ETF folio share as of March 31, highest ETF folios in the industry.

Sundeep Sikka, ED & CEO, RNAM, said the fund house has become the first Indian AMC to partner with an international asset manager to bring investments into India through the ETF route.

“India has been the most dynamic economic growth story globally, but, until now, it has been difficult for investors globally to access,” said Kris Walesby, Head of ETF Securities, Australia.

Exposure to $2.6-trillion economy

This product offers investors the chance to gain exposure to a $2.6-trillion economy that still has potential to grow as India reaps the benefits of structural reforms, he added.

“Political stability may allow the benefits of recent reforms to Goods and Services Tax and bankruptcy laws to continue filtering through in the form of stronger earnings performances by India’s major companies,” he said.

Another positive is the fact that 60 per cent of India’s GDP is driven by domestic private consumption (compared to 40 per cent in China), effectively insulating the economy against external shocks, said Walesby.

Published on June 20, 2019
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