AIG launches World Global Fund

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Mumbai, Apr 7: Encashing on the low sentiments prevailing in the capital market, AIG Investments today announced the launch of AIG World Gold Fund in India to tap funds from the country for gold mining companies world wide.

AIG Global Asset Management Company India CEO Saurabh Sonthalia told newspersons here that the New Fund Offer opening for purchase from April 15 to May 14, was an open ended fund of Funds Scheme investing in companies engaged in extracting, processing and marketing of gold through an international fund. The primary investment obective was to provide long-term capital appreciation by investing predominantly in units of AIG PB equity Fund Gold based in Zurich.

Mr Sonthalia said that gold has been treasured, stored and coveted for thousands of years. As such gold has always been and would continue to remain an important asset class in the portfolio of investors.

When gold prices rise, the profitability of gold companies tend to increase more than proportionately, thereby providing long-term capital appreciation of stocks of gold companies and they have the potential to outperform gold prices by a significant margin over the long run.

Speaking on the occasion, Mr Joseph M Foster, Portfolio Manager, Van Eck International, New York, said currently the gold production has been estimated at around 41,000 tonnes and the demand was growing at over seven per cent in India and more than eight per cent in China over the last few years. Whenever the dollar depreciated, the gold prices hit a new high and this had been proved during the last few years.

AIG India country head Sunil Mehta said the Fund was in line with the constant endeavour of AIG to provide its investors a complete bouquet of financial products and services tailored to suit their requirements. The launch further reaffirms AIG's commitment to India where it currently operated across eight businesses.

AIG's Indian operations has over 9250 employees and was operating out of 225 offices. Mr Mehta said by the year end, the company would have 600 offices in 300 cities. Its business included life and general insurance with the Tata group, aircraft leasing, asset management, private equity investment with over 600 MJ dollars of PE fund, Infrastructure and real estate. He said the company saw a lot of interest in India. The Company also had a software development centre operating out of Chennai and Kolkota.

Mr Mehta said that the Company was closely studying the RBI guidelines to enter the market of mortgage guarantee.

UNI

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