December 03, 2008

UK fund manager New Star ties up with TATA Group

PTI reported that British fund manager New Star Asset Management has entered into a JV with TATA Group that will see the two companies launch an Indian equity fund for UK investors later in 2008.

The fund will be run for New Star by TATA's investment division, TATA Asset Management, which currently has around 6 billion dollars in assets under management. The India fund will be New Star's second foray into global emerging markets following the launch of its Heart of Africa fund in November 2007.

Mr John Duffield chairman & founder of New Star said that "TATA Asset Management's investment expertise in India is second to none. Its competitive advantage, combined with New Star's expertise in the UK, makes for a compelling investment proposition in what is one of the world's most exciting growth markets."

Mr Duffield said that the JV with TATA deal was compelling but admitted he was late into India. He added that "The attraction for us is enormous. TATA is the greatest name in India and this deal offers quality and time. If we had done it on our own it would have taken ten years to get to where we are now. With hindsight I wish we had done it years ago but its better late than never."

Mr Farrokh Kavarana of TATA said that "Earlier in 2008 we made the strategic decision to make our fund management available to UK investors and we are very pleased to be doing so in partnership with New Star."