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ANZ Grindlays AMC set to unveil debt fund

Aabhas Pandya

ANZ Grindlays Asset Management is about to launch its first open-ended, medium-term debt fund. Christened ANZ Super Saver Income Fund, it will be the maiden fund from ANZ Grindlays Asset Management. Rajiv Anand, fund manager, Fixed Income, ANZ Grindlays Asset Management, says, "We want to be a speacialised debt fund house in India over a period of time." The key point of the fund will be the facility it offers to instantly credit the redemption proceeds for ANZ Grindlays account holders.

ANZ is also the first foreign bank with an extensive network in the country to sponsor an asset management company (AMC). A few other foreign banks, including ABN Amro and BNP, have been planning to set up AMCs in the country but are yet to take any final decision on the issue. ING Bank is the other foreign bank to have launched mutual funds earlier.

ANZ Grindlays Mutual Fund's sponsor, the Australia and New Zealand (ANZ) Banking Group Limited of Australia, is Australia's leading international banking and financial services group. ANZ offers a full range of financial products and services in Australia and New Zealand and has representation in 33 other countries. With total assets of almost US $ 97.35 billion as on September 30, 1999, ANZ is one of the leading banks in Australia and New Zealand.

With its focus on debt funds, the AMC will be targeting investors who want low-risk mutual fund products. Despite the sterling returns from equity and balanced funds, debt funds continue to be the most popular investment avenue among mutual funds. They currently command almost 65 per cent of the total assets of Rs 100,000 crore under all the AMCs.

ANZ Bank is also likely to aggressively woo its existing depositor base for selling the AMC's products. The debt fund will be sold on a no-load basis during the initial offer with the initial issue expenses being borne by the AMC. The fund offers dividend and growth plans to investors with the option to re-invest dividend. The fund also offers systematic investment and withdrawal facility.

While ANZ Banking Group has a 75 per cent stake in the AMC, the rest is held by leading industrialist, Atul Choksey.

Source: Value Research

Mutual Funds

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