Armed with pre-trade portfolio compliance system, Prudential ICICI Mutual fund, the joint venture of the UK-based Prudential Plc and ICICI Bank, is contemplating to launch its first offshore fund.
The managing director of Prudential ICICI MF, Pankaj Razdan, said it is seriously thinking of offshore funds for the first time following the implementation of Charles river Investment Management System, a state-of-the-art solution, designed to facilitate error free pre-trade portfolio compliance, portfolio management and straight through trade order management.
Incidentally, Pru ICICI currently have asset under management of around Rs 17,300 crore (Rs 173 billion).
It manages more than 30 schemes, out of which 17 are equity schemes.
Razdan informed that Prudential ICICI could come out with 2-3 offshore funds in next one year as it finds a great opportunity in offshore funds.
"The state-of-the-art solution that is designed to allow seamless flow of trade information in a desired manner, will help us enhance our off-shore fund management capabilities thereby enabling us to take on such mandates as and when such business opportunities arise in future. The implementation of this solution is an important strategic step that will propel our growth prospects," he said.
According to Pru ICICI MD, it is likely to roll out offshore fund first in Asian markets. It will be followed by offshore funds in Europe and US market.
"We are targeting the Asian market first. Pru ICICI is looking at countries like Japan, Taiwan and middle east for launching funds. We will not only target NRI's but also will try to attract the potential investors from all sections," he added.
Razdan claimed that the installation of CRIMs system will ensure error free pre trade portfolio and regulatory compliance.
"Regulatory compliance is more stringent in developed markets so you need a good internal system for this unless which one should not venture into offshore funds," Razdan added.
According to him, the software is in accordance with Sebi guidelines.
"Like a mutual fund can accumulate up to 10 per cent of the paid up equity of a company. Now CRIMs will ensure that you never cross the limit. Because if you once cross the 10 per cent limit then there will be penalty," said Razdan.
Similarly, he described that it will help better portfolio management by maintaining the balance between different stocks in the funds.
"It will be of immense help for portfolio rebalancing," he added.
