Morgan Stanley to expand asset management arm

MUMBAI: The top honchos at leading global financial services firm Morgan Stanley are working on a strategic plan to expand its asset management business in India. The company has recently appointed a consultant for this purpose and will take a final decision on the matter soon, according to sources.
‘‘Sometime last year they mandated a research agency to survey the strength of the Morgan Stanley brand in India, as a prelude to launching a full-fledged asset management business.
Now a consultant has been appointed to evaluate the opportunity,’’ they added. Morgan Stanley’s asset management business in India currently comprises a single fund, the Morgan Stanley Growth Fund (MSGF), which was launched in February 1994 as a 15-year, close-ended fund. It was the first foreign fund to set up shop here.
In April 1999, Morgan Stanley partnered with the JM Financial Group to commence operations in the areas of investment banking and trading in equities and fixed-income securities.
An expansion of its tie-up with JM Financial to include asset management also cannot be ruled out. MSGF officials could not be reached for comment.
MSGF is a closed-ended fund that matures in 2009. Its net asset value (NAV) as on May 15 was at Rs 11.91.
The IPO in February 1994 garnered Rs 918 crore. But the fund, which is listed on the BSE and the NSE, as well as on the Delhi, Kolkata, Chennai and Ahmedabad stock exchanges, has seen significant outflows since, and the assets under management (AUM) as on March 31, 2003, were at just Rs 645 crore.