Reliance MF Ropes In Samsung AMC For Strategic Alliance

Samsung AMC said India is one of the biggest economies in the world with strong growth potential in the mutual fund market and the two companies will seek to explore business opportunities in ETF business, among others.

It further said that India's international mutual fund market is in the early stage and has strong growth potential in the future.

Total AUM for international mutual funds are around USD 811 million while total AUM for mutual fund market is around USD 195 billion, it added.

The MOU is part of Samsung Asset Management’s global business strategy to expand and strengthen its presence in the global market.

Samsung Asset Management has its overseas subsidiaries in Hong Kong and the US and plans to acquire Samsung Life’s London subsidiary within this year.

On the other hand, RCAM is looking to further expand its product portfolio and offer world class products to Indian and global investors through this MoU.

In recent years, RCAM has been expanding its offshore capabilities and has managed and advised assets of over USD 1.5 billion.

Indian asset management market has grown by around 12 per cent per annum since 2008 to USD 190 billion and offers tremendous potential to overseas investors.

"Samsung’s leadership experience in Korea, with over 51 per cent market share in ETFs, and our complementary expertise in investment strategies will help us expand the market for Indian funds globally," Sikka said.

Samsung AMC is the leader across all major investment categories in Korea, including ETF, Fixed Income and Equities.

The company has over 51 per cent market share in ETF across 16 ETF managers in Korea.
RCAM is India's leading AMC in India in terms of AUM and profitability.

The company managed over Rs 2,44,000 crore (USD 40 billion) as of March 31, 2015 across mutual funds, government sponsored public funds, managed accounts, AIF and offshore funds.

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