Deutsche Asset Management India launches two new investment funds
By Our Banking Bureau | 17 Jan 2004
These funds offer local Indian investors selected portfolios of stocks of companies that aim to out-perform the Bombay Stock Exchange BSE 200 stock index and a debt portfolio that aims to outperform the CRISIL Blended MIP Index.
The
launch of the new funds coincide is to celebrate the one-year
anniversary of Deutsche Asset Management's establishment
in India. Local investors have been impressed with Deutsche
Asset Management's world-leading practices and approach
to investment and allocated more than Rs 2,700 crores
(Euros 470 million) into the firm's funds over the past
12 months.
Deutsche already manages the Deutsche Alpha Equity Fund, the Deutsche Premier Bond Fund, the Deutsche Short Maturity Fund, Deutsche Dynamic Bond Fund, Deutsche Floating Rate Fund and the Deutsche Insta Cash Plus Fund.
Deutsche Asset Management India is headquartered in Mumbai and has set up sales offices in Bangalore, Calcutta and Delhi.
"These two new funds feature rigorous investment processes and due diligence to provide Indian investors with professionally managed investment options," said Sandeep Dasgupta, chief executive officer of Deutsche Asset Management India.
Mr Dasgupta added how they "use a rigorous stock selection process, developed by Deutsche Asset Management and used around the world, to determine which shares are most likely to add value to an investment portfolio. A large part of this process is based on analysing and comparing cash flows of companies as well as assessing their corporate governance."
"This launch is also a further example of our commitment to the Indian financial markets," Mr Dasgupta added. Deutsche Asset Management India is the local investment management arm of Deutsche Asset Management, part of Europe's second largest bank by assets, Deutsche Bank.*
The
Deutsche Investment Opportunity Fund is an actively-managed
equity fund that aims to outperform the BSE's 200 index
and provide long-term capital growth for investors. The
fund manager may reduce the equity holding in the portfolio
for a brief period if it is perceived that the market
is trending downwards.
"This is a dynamically managed fund where the manager
tries to enhance the overall return through an active
management of the portfolio," said BP Singh, head
of equities and manager of the fund in India. "It
is suitable for an investor entering the equity markets
in a volatile period."
The Deutsche Investment Opportunity Fund builds on the success of the existing Deutsche Alpha Equity Fund, which has returned 116 per cent since inception, (source Deutsche Asset Management. The cumulative performance of the NSE Nifty index was 80 per cent for the same period.) The Deutsche Investment Opportunity Fund opens for initial public subscription on 15th January and closes two weeks later on 29th January, 2004.
The Deutsche MIP Fund is an open-ended fund that invests predominantly in bonds and other debt securities. It also has the option to invest in equity and equity-related instruments up to 20 per cent of the portfolio assets.
The
objective of investing predominantly in bonds is to provide
consistent returns over the medium-term, while the equity
component aims to enhance the overall return of the portfolio
over the longer-term. The Deutsche MIP Fund also provides
monthly, quarterly or annual dividend payment options.
"This fund is designed for an investor who wants
to switch part of their assets out of a traditional bond
fund to seek a potentially higher return over a two to
three year period," said manager, Suresh Soni, head
of fixed income. The fund is managed jointly by Mr Soni
and BP Singh.
Mr
Singh said it is a good time to invest in Indian equities.
"The BSE 200 Index has risen 105 per cent over the
past year, and the BSE Sensex is up 82 per cent, and is
forecast to rise further as the Indian economy strengthens
on the back of robust corporate earnings and general expansion
of the Indian economy."
The new funds are being distributed to both retail and
institutional
investors by Deutsche Asset Management India through leading
third party distributors in India, including Deutsche
Bank Private Wealth Management.
Deutsche Asset Management manages more than Rs2700 crores in assets under management for India-domiciled clients and is one of the few fund managers in the market that combines global resources and the discipline of a global investment process with local expertise.
Mr
Dasgupta highlighted the significance of the Indian business
to
Deutsche Asset Management's regional operation. "India
is a large and
growing
market of importance to our business. In fact, we see
the
prospects for growth here to be second only to China in
our region. We are serious about our commitment to India
and our Indian investors", he said.
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