Hsbc Mutual Fund Slated For April Kickoff

HongKong and Shanghai Bank (HSBC) will commence its mutual fund business through its subsidiary HSBC Asset Management Company Ltd in the first quarter of the next fiscal, chief executive officer, Zarir J Cama. "We have received the in principal approval from the authorities and will commence operation by April 2002," he explained.

Now that the approval has been received, HSBC was in the process of forming the company and three months would be required to put things in place.

Nevertheless, HSBC was already one of the largest distributors of mutual funds in the country and has begun marketing insurance products as well. It will use its exiting retail networks to market the products in India.

HSBC's broking operation in India, HSBC Securities & Capital Markets, India, will be the sponsor of the mutual fund and will hold 75 per cent of the paid-up equity capital in the proposed AMC. Individual investors would hold the balance.

The MF intends to have a six-member board of trustees and an AMC capitalisation of Rs 10 crore (Rs 100 million) to begin with. The fund management will be looked after by its London-based offshore fund manager, Sanjeev Duggal, who will be supplemented by dealers, debt fund manager, and analysts locally.

The bank has received approval from the Securities & Exchange Board of India, to set up its MF venture in India, recently, after a long two-year wait. The bank has also received approval from the Foreign Investment and Promotion Board for its proposed 75 per cent stake in the venture.

HSBC Asset Management the world over offers an extensive range of products and comprehensive investment solutions for its clients and their advisors. With a choice of over 400 funds in 10 countries, products from HSBC stable can has been created to address the needs of advisers and their clients in all locations.

The group manages around over $115 billion funds under management and advice globally. HSBC Asset Management manages over $ 45 billion on behalf of its institutional clients. Its comprehensive product range, created for institutional customers, includes segregated and pooled products, alternative investments, global liquidity management and structured products.