The Peerless Group has shelved its plan for a foreign joint venture partner for its mutual fund venture as solo growth in the first year gives an assurance that it doesn’t need a partner for the local market.
“There is nothing the foreign partner can bring to the table right now,” Peerless Funds Management Co managing director & CEO Akshay Gupta told ET.
The company’s assets under management at Rs 4,500 crore in less than a year gives it the confidence that it could be on its own in the domestic market which is at Rs 6.9 lakh crore. Principal Mutual found more than a decade ago has assets at Rs 5,642 crore and JM Mutual Fund’s is at Rs 6,524 crore, according to data from the Association of Mutual Funds in India (Amfi) website.
Many funds from Australia, France, Japan and the US were interested in buying a stake.
“The best fit partner will be the one who will give access to an overseas distribution network, enable it to build an international presence and tap investors’ abroad,” said Peerless director and PFMC board member Jayanta Roy.
He said the option of building an overseas distribution channel would be considered in the medium term. Whenever it happens, Peerless would like to remain the principal sponsor. “We would like to consolidate our position in the market first with a full range of product suite,” said Gupta. “We still need time to test out a lot of market movements.” In last 12 months, the company has mainly targeted institutional clients to grow business.
Source: http://economictimes.indiatimes.com/articleshow/7472302.cms?prtpage=1
“There is nothing the foreign partner can bring to the table right now,” Peerless Funds Management Co managing director & CEO Akshay Gupta told ET.
The company’s assets under management at Rs 4,500 crore in less than a year gives it the confidence that it could be on its own in the domestic market which is at Rs 6.9 lakh crore. Principal Mutual found more than a decade ago has assets at Rs 5,642 crore and JM Mutual Fund’s is at Rs 6,524 crore, according to data from the Association of Mutual Funds in India (Amfi) website.
Many funds from Australia, France, Japan and the US were interested in buying a stake.
“The best fit partner will be the one who will give access to an overseas distribution network, enable it to build an international presence and tap investors’ abroad,” said Peerless director and PFMC board member Jayanta Roy.
He said the option of building an overseas distribution channel would be considered in the medium term. Whenever it happens, Peerless would like to remain the principal sponsor. “We would like to consolidate our position in the market first with a full range of product suite,” said Gupta. “We still need time to test out a lot of market movements.” In last 12 months, the company has mainly targeted institutional clients to grow business.
Source: http://economictimes.indiatimes.com/articleshow/7472302.cms?prtpage=1
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