Sundaram Asset hopes to start Singapore operations this year

Chennai, May 5 (IANS) City-based Sundaram Asset Management Company is hoping to start the operations of its Singapore arm this year and mobilise around Rs.3,000 crore in a three-year timeframe, a top company official said.

‘We have applied to the Singapore government for permission to start our operations. We have got SEBI’s (Securities and Exchange Board of India) approval. In three years’ time from the start of operations we hope to mobilise around Rs.3,000 crore,’ Managing Director T.P. Raman told reporters here Thursday.

Sundaram Asset will also forge a tie-up in Mauritius to channel investments in Indian securities and redemption in foreign currency.

The Singapore arm will channel investments in the mutual fund schemes, mobilising money from corporates and high net-worth individuals there, Raman said after launching the company’s new fund Sundaram Equity Plus.

According to him, 65-80 percent of the corpus would be invested in large cap stocks while the balance would be invested in gold exchange traded funds (ETF).

‘We hope to raise a minimum of Rs.500 crore under this fund,’ Raman added.

He said the yellow metal was now being bought by governments with the US dollar getting de-emphasised.

‘Gold will continue to dominate in the future also. Large cap stocks are less volatile,’ he said.