Tata MF’s maiden offshore fund to hit market in Q3
The Financial Express — February 18, 2005

Tata Mutual Fund is set to float its maiden offshore scheme in the third quarter of 2005 to woo the foreign investors. The Rs 7,300-crore private mutual fund is expected to raise nearly $100 million from its initial public offer and will invest in Indian equities. It will be positioned as a plain diversified equity fund, investing across all sectors. The fund plans to tap money from Europe, West Asia, Africa and some parts of South-east Asia. It is also planning to come out with a euro currency denominated scheme as it is believed that dollar will continue to remain weak compared to other currencies.

Ved Prakash Chaturvedi, managing director, Tata Mutual Fund, said: “Foreign investors have shown great interest in India and, therefore, we are tapping that market by launching the offshore fund in the early second half of 2005. We expect to garner a minimum $100 million from the issue.” “It will be a foreign currency denominated fund as foreign investors who approached us like to invest in foreign currency,” he added.

Apart from the launch of offshore funds, the company is planning to offer portfolio management services (PMS) by April 2005. Mr Chaturvedi said, “PMS is certainly a profitable venture where margins are higher than the normal mutual fund business, which is why we are planning to open our own PMS by April 2005.” Tata Mutual Fund has received approval from the Securities and Exchange Board of India (Sebi) for its PMS business.