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Three top global asset management and investment banks - American International Group, JP Morgan Asset Management and Japan's Mitsubishi UFJ Securities today announced their India strategy, vying for a place in the second fastest growing economy in the world.
AIG on Wednesday said it received regulatory approval from the Securities and Exchange Board of India to begin its asset management and mutual fund business in the country. With the regulatory nod, AIG, the world's biggest insurer, would have presence in the country's insurance, consumer finance, real estate development, aircraft leasing and asset management businesses.
"We are pleased to receive the asset management approval from the Sebi. Our vision is to create a world-class asset manager in India that combines AIG Global Investment Group's global expertise with our local experience gained over the years. This reaffirms AIG's commitment and participation in the fast growing Indian economy. AIG plans to be a significant and responsible player in each of these businesses in India," Sunil Mehta, country head and chief executive, India, AIG, said.
Similarly, in a separate function, JP Morgan also announced today that it received regulatory approval to enter the mutual fund business in India. It plans to file the offer document for its first fund, which will be a diversified equity fund, next week.
Martin Porter, head of global equities and multi-asset group said, "India is one of the world's strongest secular growth stories that is coming to the attention of a rapidly growing body of international investors."
"India is one of the most important countries to our Asian business and we have a long-term strategic approach to this market," said David Hsu, chief executive, Asia Pacific (ex-Japan), JF Asset Management.
JP Morgan has invested over $5.6 billion in the India-dedicated funds through FIIs. Another global firm that announced its India entry was Mitsubishi UFJ Securities, the investment banking and brokerage arm of Japan's largest financial group.