ICICI Prudential Mutual will manage the Indian investments of Stockholm-based Nordea Bank's asset management company.
According to three sources close to the development, ICICI Prudential Mutual has already started managing Nordea's $300- million India Fund. The duo is also planning to launch another India-focused fund for investors in Northern Europe. This fund, according to sources, will be modeled on the lines of ICICI Pru Dynamic Fund.
"The deal will help ICICI Pru in a big way... It will open Northern Europe, which has a lot of pension funds and long-term investment pools, for ICICI Pru," a source close to the development said.
Nordea is said to have thoroughly screened the performance and investment processes of 15 fund houses before selecting the ICICI Prudential Mutual Fund.
"The Nordea mandate will make a good selling pitch for ICICI Pru, which is aggressively scouting for overseas mandates," said the chief executive of a top-run fund house.
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