Sundaram AMC eyes Rs 40,000-cr AUM by FY18

Sundaram Asset Management Company, also known as Sundaram Mutual, is looking at increasing its assets under management to Rs 40,000 crore from the current Rs 24,500 crore over the next three years.
The Chennai-based fund house has chalked out a three-pronged strategy to achieve this target, which includes increasing its base further in the South, continuing its focus on retail sales and raising its business from distributors.
"Our AUM as of July 19 was at Rs 24,500 crore, which includes Rs 10,000 crore in equity and portfolio management services (PMS) and the balance of Rs 14,500 crore in debt. We have plans to increase our AUM to Rs 40,000 crore within the next three years," Sundaram AMC's newly-appointed chief executive, Sunil Subramaniam told PTI here today.

Subramaniam was the deputy chief executive of the company and was elevated as CEO on July 1.
"While the South contributes only 6 per cent for the market, we netted 12 per cent of our sales from the South and want to increase this to 15-18 per cent over the next three years," he said.
"Similarly, independent financial advisors (IFAs) currently account for 40 per cent our business and we want to increase it to 50 per cent."

He added that retail sales will continue to be the sales focus.
Subramaniam also spoke of plans to raise its folios to 20 lakh over the next three years, from the current 12 lakh.

"We are looking at launching five funds in the country over the next three years," Subramanium added.
On its operations in Singapore, he said: "We want to grow the AUM more than three times to Rs 1,000 crore from the present Rs 300 crore within next three years and have lined up 3-4 products in that market."
Sundaram AMC Singapore has an international mid-cap fund and a global brand fund and will be launching two more next year.
"We already have regulatory approval to launch a developed market fund, and we hope to launch it within the next six months. We are also awaiting regulatory approvals for a multi-cap fund," he said.

Sundaram AMC is also looking to increase its branches to 95 by the end of this year. "We had doubled our branch network last year to 88 as of March 2015 from 47 a year ago. We plan to increase it to 95 by the end of the fiscal," he said.