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Birla Sun Life Asset Management Company launches its UCITS platform in Ireland

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Mumbai (Dec. 11, 2014): Birla Sun Life Asset Management Company Ltd (BSLAMC), a part of Aditya Birla Financial Services Group and the 4thlargest asset management company in India has launched its first ever UCITS platform in Ireland. Based out of Dublin, the platform adds to the company’s presence in Asia and Middle East, marking its foray into the European market. This also makes BSLAMC the first Indian asset manager to launch an Ireland based UCITS Fund platform.

The UCITS offering comprises two India-focused equity funds - India Frontline Equity and India Quality Advantage, both fundamental research driven long only equity funds, which invest primarily in Indian large and mid cap companies through the FPI route.

Commenting on the launch Mr. A. Balasubramanian, CEOBirla Sun Life Asset Management Company Limited said,“In 2014 we have progressively strengthened our leadership in the Indian market. The establishment of this new UCITS platform is a key step in making our India expertise accessible to global investors. We are especially pleased to launch two strong performing strategies for global investors in various recognized jurisdictions.”

“Given India’s attractiveness among Emerging Markets on the back of a strengthening economy, we expect good interest as these investors increasingly look for options with the potential for higher capital growth. I am happy to inform that we have already received US$ 20mn initial investor seed participation,” added Mr. Balasubramanian.

UCITS (Undertakings for Collective Investment in Transferable Securities) is a well regulated and a popular investment vehicle that enables fund managers to distribute their products more easily across Europe, Middle East and Asia to international investors.
BSLAMC’s UCITS platform was launched on October 31, 2014. The investment manager of the fundsavailable on the platform will be the Singapore based Aditya Birla Sun Life Asset Management Company Pte Ltd., a fully owned subsidiary of BSLAMC. The funds will be managed by the same team that manages the existing offshore funds and has a track record of producing considerable alpha with lower volatility.

India Frontline Equity Fund is a play on large cap equities in Indian markets. While being diversified, the strategy follows a disciplined capital allocation to some of the best (frontline) companies in each of the industries as defined under the GICS classification. The strategy expects to have majority of its assets in large cap companies in India while a much smaller percentage (around 15-20%) is deployed in the mid and small caps.

India Quality Advantage Fund is a play on quality .i.e. in some of the best run companies and businesses in India. The strategy focuses on the quality of managements and earnings of the underlying portfolio companies and uses an in-house quant strategy to screen the model portfolio. While this approach foresees minimal portfolio turnover, back tests have reflected strong performance by the strategy.