Bharti may exit asset management JV with AXA
01 Apr 2009
Bharti Enterprises, the holding firm of mobile services provider Bharti Airtel Ltd, proposes to sell a part of its stake in Bharti AXA Investment Managers or completely exit the joint venture with France-based AXA Investment Managers, the company said in a release.
"Bharti is a minority partner in the asset management JV with AXA. The JV will be seeking to open discussions with a potential partner in the banking industry to strengthen its distribution capabilities," Bharti said in the statement.
"As a result, Bharti might dilute its stake or exit if necessary at an appropriate time," it said, adding that the decision would have no impact on its existing insurance venture with AXA.
Bharti AXA Investment Managers Pvt Ltd, a joint venture between Bharti Ventures Limited, AXA Investment Managers and AXA Asia Pacific Holdings (through NMIPL), was established a few months ago.
The European partner is now trying to partner a bank for its asset management venture in order to strengthen its distribution network. A tie-up with a bank would give an asset management venture scope to increase its range of financial products on offer.
Bharti Axa is currently among the smallest players in the country's mutual fund industry, with the average assets under management of Rs186.77 crore as of end-February. The fund house has six schemes, with three of these being hybrids. In 2007-08, it reported a loss of Rs15.53 crore.