Peerless arm scouts for foreign partner in new initiative

Peerless Funds Management Company, a wholly owned subsidiary of Kolkata-based Peerless General Finance & Investment Company, is scouting for a foreign partner to further strengthen the business.

Peerless, which today announced the commencement of the mutual fund business, intends to launch two debt-oriented funds (liquid and ultra short term fund) for institutional investors this month.

“We will induct a foreign partner, who suits the strategic blueprint of the company,” said Jayanta Roy, director, financial products distribution, Peerless General Finance & Investment Company.

However, Peerless would retain majority stake and management control of the asset management company, added A C Chakrabortti, chairman, Peerless Funds Management Company.

Peerless will leverage upon the company's 148 branches, and a base of 50,000 agents or “smart guides”. This apart, it also has a depositors base of about four crore people, under the residuary non banking finance company. After Reserve Bank of India (RBI) directives disallowing residuary non-banking finance companies from accepting public deposits, Peerless has been diversifying into other businesses to sustain itself.

The paid-up capital of the mutual fund company is Rs 50 crore. The company would launch products for retail customers in April this year, said Akshay Gupta, chief executive officer of the proposed asset management company.

The company hoped to break even in the next four years, said Chakrabortti.