Tata AMC to advise UK firm's fund
Business Standard — April 2, 2008

Tata Asset Management Company has tied up with UK-based New Star Asset Management to provide advisory services to the India Equity fund that will be raised by New Star from retail investors in the UK.

The India dedicated equity fund will be launched in the UK in the second quarter of this year. Tata AMC will put together a separate team to make investment decisions with regard to this fund, which will seek foreign institutional investor (FII) registration from the Securities and Exchange board of India (Sebi).

“The tie up is a strategic partnership between Tata AMC and New Star Asset Management where Tata AMC will provide advisory services to the India Equity fund, money for which will be raised by New Star asset management from retail investors in the UK,” said Ved Prakash Chaturvedi, managing director of Tata AMC, speaking from London.

Details of the India Equity fund have not yet been submitted to the UK regulator, Financial Services Authority (FSA), and will be announced in due course.

Last year, Tata AMC had entered into a tie-up with UK-based investment management house Invesco for the Indo-Global Infrastructure fund, where the Mumbai-based fund house would invest up to 65 per cent in to domestic equities, up to 20 per cent in Invesco’s Asia Infrastructure fund and 10 per cent in Powershare (Global Ex Asia) and the remaining in cash. The money had been raised from Indian investors to invest in Invesco’s fund.

“We would like to take one economy at a time. Currently, the UK is an important market for us,” added Chaturvedi. New Star was founded in June 2000 and is led by John Duffield, who had earlier founded Jupiter Asset Management.

The London-headquartered AMC has assets under management (AUMs) of about £24.9 billion on May 31, 2007 with around 45 per cent of these assets managed on behalf of institutions.

Its business extends from institutional investors to retail funds and private client fund management while its range of investment capabilities includes equity and bond management, property and hedge funds. It employs more than 300 people, 76 of whom are investment professionals as on May 31, says the New Star website.