News: AIG's Indian foray sans local partner

(DNA 30/03/2007) Mumbai - AIG Global Investment Group, the world's sixth largest investment manager with $638.1 billion in assets under management, is set to start its Indian operations.

"We plan to launch a diversified equity scheme - AIG India Equity Fund - by mid-April and a liquid scheme soon thereafter," said Saurabh Sonthalia, managing director and chief executive officer of AIG's Indian asset management company, AIG Global Investment Group Mutual Fund.

Tushar Pradhan will head the equity fund management team of five, and Huzaifa Husain the debt team of three.

The fund house's unique value proposition, said Sonthalia, "is that it takes a meaningful stake in the asset class that it offers to its clients". Sonthalia was not willing to divulge how much the AMC or its parent would pour into its first offering, the India Equity Fund.

"Structured products will also be a part of our product offerings," said Sonthalia, who in his previous assignment, looked after the marketing, distribution and sales efforts at DSP Merrill Lynch Mutual Fund.

The other unique aspect of AIG would be that it would be the first asset management company to set up shop in India without a local partner. Since it is 100% foreign-owned, it had to bring in $50 million as equity capital.