NEWS UPDATE: Olympus FM expands Indian investment horizons
Olympus Funds Management has expanded the investment categories on its Australian Securities Exchange (ASX) listed Indian Equities Fund. The fund will now be allowed to invest up to 15 per cent of assets in unlisted investments and other Indian funds. These investments will be made through a new subsidiary, India Asset Management, and Olympus will identify, buy and monitor the assets in this company.
The fee structure between Olympus and the new entity is still being negotiated, according to the ASX announcement. Olympus chief executive officer John Pereira told Money Management the move was to counter the poor investment record of listed equity markets. “We are more interested in getting value for investors in the long term,” he said. “Therefore, we are looking at investing in certain sectors that are not listed such as hotels, energy and bio-technology.”
Pereira said no investments had been made and he is in India at present looking at opportunities. “We are also looking at joint ventures with other significant fund managers with an interest in India,” Pereira said. “But my board and chairman are being very cautious on who we undertake investments and joint ventures with.”
Investments will be held for between two and five years and Pereira said the risks would be in-line with the traditional performance of unlisted assets. The fund manager had established good relations with international financial services companies such as PricewaterhouseCoopers and HSBC, which are active on the Indian sub-continent, he said. However, the relationship with investment manager Kotak Mahindra will continue for investment in listed stocks on the local stock markets.
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