Dear Friend,
 Bharti AXA Investment Managers' business is anchored on robust operating models, strong risk-management processes and high levels of transparency. Our operation has benefited immensely from the support of the AXA Group, a world leader in financial protection. Our organization combines the strength of globally shared resources and talented teams of experts focused on driving our business growth regardless of challenges.
To augment the distribution of retail mutual funds, our JV partners AXA Investment Managers and Bharti Ventures Limited mutually agreed to induct an Indian banking partner with a strong commitment to business growth. Irrespective of the changes in the JV, AXA - which is the dominant shareholder in this joint venture - remains fully committed to facilitating a smooth transition that will reposition us for continued business growth.
We are in advanced discussions with a large bank and we expect to conclude the discussions soon. The new partnership will bring together the expertise, technology and international best practices of a well-established global asset management company along with the advantages of collaboration with a local distribution powerhouse. With the induction of a large distribution partner, our top-class operating model will scale up manifold. The partnership will thus provide stability to the business and nurture its growth.
On the macro front, regulatory changes and the global financial crisis have hampered the steady momentum of the mutual fund business. The impact may seem magnified as our business is in its nascent stage with limited distribution support. However, we continued to execute our operations with discipline and have positioned our business for the future. With six mutual funds spanning across equity and fixed income funds, we currently have around 50,000 investors. We also earned the distinction of introducing several simple, innovative and customer friendly product features to appeal to retail investors. In light of our discussions progressing steadily in closing the new partnership, we have plans of drawing new talent and making the growth of the business more focused in the coming months.
Meanwhile, India's economy is displaying its strong fundamentals even as major world economies continue to reel under the pressure of the global financial crisis. India's GDP has risen steadily over the last year, recording an impressive 8.6% growth in the first half of 2010, making the IMF (International Monetary Fund) to hike its India's growth forecast for 2010 to 9.5% from its earlier projection of 8.8% in April 2010.
Our predominantly domestic oriented economic model and strong entrepreneurship coupled with very favourable demographics will propel the country to a sustained growth economy.
FII investments in 2010 so far have been USD 22 billion. We expect that the foreign flows into Indian stock markets will remain unabated. India is in a sweet spot and will be one of the largest beneficiary of increasing flows into Emerging markets. Thus, for those of you looking to invest for building wealth over a 3- 5 year time horizon - it makes sense to invest in equity. Equity allocation to your portfolio should however be ascertained based on your individual asset allocation mix drawn up in consultation with your financial planner.
Investing through a mutual fund provides you an easy avenue, offering interesting and innovatively packaged solutions and convenience that you as an individual may not be able to enjoy if you choose to trade directly in the market.
As a part of the Indian mutual fund industry, we will ensure inclusive financial participation from all sections of society. Customer friendly retail products, higher service levels and profitable growth will be our key to creating a leadership position in the future.
Sincerely,
Sandeep Dasgupta
CEO, Bharti AXA Investment Managers |
