The Telegraph
Since 1st March, 1999
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Icra, Moody’s mull joint rating

New Delhi, Oct. 14: Icra plans to expand its operations to the Asia-Pacific region and is in talks with Moody’s Investors Services, with which it has a tie-up in India, to co-brand mutual fund ratings.

“To begin with, we will have a presence in the Philippines,” said a senior Icra official adding that co-branding with Moody’s will give it a global presence.

Moody’s, the single largest stakeholder in Icra with about 22 per cent equity, will seek Icra’s technical expertise in ‘monitoring Moody’s mutual fund ratings’ in some select European countries, the official said.

“Both Icra and Moody’s are making joint endeavours to identify the areas where the relationship can be expanded further,” the official said. Recently John Rutherford, president of Moody’s Corporation, was inducted into I cra’s governing body (board of directors).

Icra in association with Moody’s today launched a series of 18 mutual fund indices, Moody’s/ICRA MF Management Style Indices which will track a fund’s performance and adherence to investment strategy. “This is the beginning of a broad range of services catering to the mutual fund industry in India and most of them will be jointly with Moody’s,” P K Choudhury, head of the firm’s operations, told The Telegraph.

Icra officials say the indices will provide a benchmark for the performance of Indian fixed income and equity mutual funds — representing nearly 90 per cent of India’s open-end market. Earlier, mutual funds were benchmarked only against market indices but not against any similar funds. “The focus on investment strategy is of importance since the fund managers are given significant discretion in managing money. These indices will offer a view of evolving investment strategies and a better opportunity to compare a funds relative performance,” said Amul Gogna, Icra executive director.

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