European asset management Amundi has teamed up with Indian mutual fund manager, SBI Funds Management (SBI FM), to launch the Amundi Fund Solutions ICAV – Amundi SBI FM India Bond primarily investing in Indian debt instruments and money market securities denominated in the Indian Rupee.
The sub-fund combines Amundi’s top-down approach with SBI FM’s on-the-ground insights and bottom-up analysis of the Indian market. SBI FM is a joint venture between Amundi and State Bank of India that manages over €275 billion of assets, providing investment opportunities to both retail and professional investors in India and internationally.
The fund aims to provide regular income and capital growth, offering international investors flexible access to India’s bond market, including government and corporate debt, and supranational debt securities, without being tied to traditional indices.
Management of the fund is led by Joevin Teo, portfolio manager at Amundi Singapore, with Dinesh Ahuja, fixed income CIO at SBI FM, acting as lead investment advisor. The sub-fund will be supported by both, Amundi’s Risk & Research team consisting of macro strategy research, ESG research, emerging markets credit research and portfolio construction experts as well as SBI FM’s onshore team of seven dedicated Indian fixed income research analysts.
Amundi’s global head of emerging markets, Yerlan Syzdykov, emphasised the strategic importance of India, noting that as one of the world’s largest bond markets, India presents substantial opportunities for diversified investments. “India continues to be a key growth area for us, as the local financial markets and therefore the investment opportunities steadily develop. We are proud to work with the SBI FM team to offer investors privileged access to one of the world’s largest bond markets through a comprehensive product that combines a top-down and bottom-up approach and is designed to maximise risk-adjusted returns for investors,” Syzdykov remarked.
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SBI FM’s Dinesh Ahuja highlighted the benefits of this international partnership: “We are excited to partner with Amundi, the largest European asset manager, to provide international clients with access to India’s bond market. We believe that the launch of the Sub-Fund comes at an opportune time and offers a compelling investment opportunity for a wide range of investors across the globe.”
The sub-fund is currently registered in the United Kingdom, Belgium, Czech Republic, Germany, Denmark, Finland, Italy, Luxembourg, Netherlands, Norway, Spain, and Sweden with plans to register the Sub-Fund in other European and Asian countries.
This joint initiative reinforces the mutual commitment of Amundi and SBI FM to deliver specialised products that respond to investors’ needs for diversification and growth in emerging markets, while capitalising on the strategic insights and expertise each partner brings to the table.
