Date:05/12/2007 URL: http://www.thehindubusinessline.com/2007/12/05/stories/2007120554811700.htm

Back DLF, Prudential Financial form asset management joint venture

Our Bureau

New Delhi, Dec. 4

Real estate major DLF group and US-based Prudential Financial Inc have entered into 39:61 per cent joint venture to form an asset management company offering both Indian and global mutual funds. DLF and PFI already share a life insurance partnership.

great opportunity

The new company DLF Pramerica Asset Managers Pvt Ltd will offer a wide range of mutual funds and investment products to Indian consumers beginning next fiscal.

The Prudential International Investment Chairman and CEO, Mr Stephen Pelletier, said, “India poses a great opportunity with the economy on the upswing. As much as $140 billion of assets are under management in India and it is growing significantly.” Initially, the investment products would be sold through third party financial institutions such as banks but “over the medium-to-long term, we would like to have proprietor-based distribution network”.

The DLF Vice-Chairman, Mr Rajiv Singh, told reporters that the asset management joint venture, coupled with the life insurance partnership with Prudential, would be a “very formidable combination and will bring international standard of financial investment products to the Indian public”.

DLF said it would only be an investor in the $50 million venture.

financial services

On being a minority partner in the venture, Mr Singh said, “We are not in the business of being in financial services,”