Tata MF Ties Up With Invesco For Its Indo-Global Infrastructure Fund

Tata Mutual Fund has tied up with Invesco, a UK-based global investment management house with nearly $500 billion under management, for the Tata's new scheme, 'Indo-Global Infrastructure Fund' launched on 3 September 2007. Invesco will invest the fund collected from Tata Indo-Global Infrastructure Fund in various equities across the Asia. The global portfolio for the fund (ex-Asia) will be invested in an ETF (Exchange Traded Fund) called Power share.

The Indo-Global Infrastructure Fund would invest 35 % of its money into global infrastructure companies, mainly in other Asian markets. The remaining amount would be invested in top-notch infrastructure companies listed on the Indian stock markets. Invesco, which has been investing in Asia since 1962, has a strong focus and presence in China. Some of the Asian stocks, which it has invested into, are Keppel Corp (Singapore), China Mobile (China), Macquarie Bank (Australia), China Resources and Power (China). Tata Mutual Fund already has an Infrastructure Fund in India, which has been one of the best performing funds, giving returns of 66.66 %. The new launch is the latest from an Indian fund house after the Reserve Bank of India hiked the total amount that the domestic fund houses can invest in overseas markets to $4 billion with a cap of $200 million per fund house.

The launch follows the relaxation in norms, allowing the fund houses to invest across sectors globally. Earlier, domestic fund houses could invest only in those foreign companies that had at least 10 per cent holdings in their Indian subsidiaries.

Tata Indo-Global Infrastructure is facing stiff competition from offshore funds launched by Principal PNB, Franklin Templeton, Fidelity, Kotak Mahindra and Sundaram-BNP, giving the domestic investors an option to diversify their portfolio into other overseas markets. ICICI-Prudential has also launched an Indo-Asian Equity Fund recently, which is managed by Prudential Asset Management, the foreign partner of the domestic venture.

Tata MF's alliance with Invesco follows a trend whereby fully owned Indian mutual funds are tying up with a foreign partner for launching offshore funds in the country.

UTI Mutual Fund, the country's oldest asset management company, has tied up with US-based Select Street Global Advisory (SSgA) for a 'Global Navigator Fund', an offshore fund for the Indian investors.

Similarly, Kotak Mutual Fund joined hands with US-based T Rowe Price for its 'Kotak Global Emerging Market'.