BNP Paribas Asset Management Launches India-Focused Fund

by Carla Johnson, Investors Offshore.com

23 January 2006

BNP Paribas Asset Management has launched a new fund giving investors the opportunity to boost their portfolios by tapping into the vitality of the Indian market, one of the fastest growing and promising emerging markets.

The fund, known as Parvest India, invests in shares or other comparable securities issued by companies having their registered office in India or conducting their business there.

The fund invests 70% in large cap stocks in the fastest-growing economic sectors and 30% in small and mid-cap stocks, to take advantage of niche opportunities.

The investment process is based on macro-economic analysis with a sector overview in order to identify the best investment opportunities and the most promising themes.

Company analysis is based on fundamental research, with an in-depth study of target companies, monitoring their growth rates and their financial statements. The analysis is followed up by on-site visits. The portfolio is then constructed taking into account risk and liquidity constraints.

Parvest India is managed by BNP Paribas AM UK and is advised by Sundaram AM, one of the ten largest Indian investment management companies. Sundaram AM manages more than US$650 million in assets and has around a 10 year track record of managing Indian equities as well as substantial research resources.

India has the second-highest economic growth rate in Asia, at over 7% in 2005, putting it in a favourable position to figure among the largest international powers within the next 30 years in terms of GDP.

BNP Paribas Asset Management is one of Europe's leading asset managers, with EUR 263 billion in assets under management, half of which is managed for institutional investors.

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