Latest news with #CanaraRobecoAssetManagementCompany
Time of India
4 days ago
- Business
- Time of India
Fixed Income Outlook: Sideways rates offer opportunities in short-to medium-term debt funds
India's fixed income market remains resilient despite global headwinds, with stable macroeconomic indicators supporting investor sentiment. According to Avnish Jain, Head – Fixed Income, Canara Robeco Asset Management Company , recent global trade tensions and the imposition of a 25% tariff by the US have added uncertainty to the global economic landscape. However, India continues to stand out, with inflation undershooting forecasts in the first quarter and remaining well below the Reserve Bank of India's (RBI) 4% target. Bonds Corner Powered By Fixed Income Outlook: Sideways rates offer opportunities in short-to medium-term debt funds India's fixed income market remains steady despite global uncertainty. With inflation below the RBI's target and yields expected to stay in a narrow range, Canara Robeco's Avnish Jain advises focusing on short- to medium-term debt funds for better risk-adjusted returns, while keeping selective long-duration exposure for potential policy easing gains. Is the rally over in long-duration bonds? Is investing in T-bills via SIP a smart move compared to FDs? India's bond market signals extended rate pause despite low inflation RBI allows non-residents to invest rupee surplus in vostro accounts in G-secs Browse all Bonds News with Jain noted that the RBI's recent shift to a neutral stance suggests a pause in the current rate-cut cycle. Nevertheless, 'if the undershoot of inflation continues for the next one or two quarters, there is an expectation that the RBI may deliver one more 25 bps rate cut by December,' he said. In terms of yields, Jain expects the 10-year government bond benchmark to trade in the 6.30%–6.45% range in the near term. Live Events Market movements will likely be driven by a combination of global and domestic factors—international crude oil prices, US Treasury yields, and geopolitical developments on one hand, and India's inflation trajectory and growth data on the other. Importantly, he does not foresee any major sell-offs in the bond market, citing a healthy demand-supply balance and continued appetite for government securities from institutional investors. Given this backdrop, Jain believes that duration strategies may not deliver significant returns in a largely sideways interest rate environment. Instead, he recommends that investors focus on short- to medium-term fixed income categories such as corporate bond funds, short duration funds, and banking & PSU debt funds , which are positioned to offer better risk-adjusted returns in the current scenario. For long-term investors, maintaining selective exposure to duration could still be valuable—particularly if an additional policy easing materialises later this year. Such a move could provide capital gains potential while retaining the carry benefits of high-quality long-duration instruments. Overall, Jain's outlook suggests a balanced approach: tactically positioning portfolios to benefit from steady yields in the short term, while keeping optionality open for potential gains if monetary policy turns more accommodative. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Mint
29-05-2025
- Business
- Mint
Canara Rebeco AMC's Shridatta Bhandwaldar expects market consolidation ahead, remains bullish on these 2 sectors
Shridatta Bhandwaldar, Head Equities, Canara Robeco Asset Management Company, believes that the ongoing earnings season signals recovery to double-digit growth in FY26 and FY27. However, he believes, amid lack of valuation comfort, the Indian stock market is likely to undergo consolidation. He is bullish on two sectors -- consumer discretionary and financials -- over the next few years. Edited excerpts: Some of the global macro and domestic geopolitical situations have turned relatively more benign in the last few weeks. Indian macroeconomic environment has been good for some time now with low inflation, low leverage and controlled current account deficit. Cyclical challenge is of the corporate earnings growth (Nifty), which has slowed down in FY25 to high single digits from a healthy 20+% growth in FY24. This slowdown was an outcome of meaningful public capex deceleration accompanied by a relatively tighter domestic liquidity environment over the past 4 quarters. These factors are reversing gradually – 1) Domestic liquidity has moved from deficit into surplus in the last few quarters, 2) The public capex has normalised back to budgeted numbers, 3) There is a pivot towards mass consumption in state and central budgets and 4) Further improvement in Private capex / Real estate, supported by a healthy banking system remains a reasonable expectation. This is already visible in Q4FY25 corporate earnings season, where the earnings have turned out better than estimated, indicating possible cyclical recovery to double-digit earnings growth in FY26E/27E. However, with fair valuations in large caps and above-average valuations in mid/small caps, we expect the market to undergo consolidation as cyclical recovery plays out and then starts rolling over based on earnings growth outcomes. Given that the strategy has a tilt towards predominantly mid-caps, we are focused on medium-term risk-adjusted returns. Given India's diverse listed space and strong underlying nominal GDP growth rate, we believe that there are enough well-run and scalable businesses available from a medium-term to long-term perspective. We are focused on identifying superior earnings growth profile companies for the Canara Robeco Emerging Equities portfolio on a bottom-up basis, and we believe that there is enough scope to do that despite broader valuation challenges in the mid-cap space. We tend to assess governance-related risks based on due diligence of the past track record, which is embedded in our investment process. We evaluate financials and the past track record of the management to assess both the ability to execute business better than peers and the intent to share outcomes with the minority shareholders. Liquidity risks are managed by having a limit and control structure on illiquidity criteria on mid and small caps. We are constructive on Consumer Discretionary and Financials from the next 3-5 year view. Under-allocation to equity at a younger age tends to be a common mistake. This is invariably followed by an inability to re-look at asset allocation when the margin of safety erodes in parts of the owned portfolio. Seeking professional advice on investment decisions and asset allocation at the initial stage of investment journey, can help to avoid such mistakes and contribute towards long term wealth creation. We can't talk about stocks, unfortunately. But sectors like Industrials, Hospitals, Hotels, Telecom and Aviation are good examples over the last 3 years of our bottom-up stock selection strategy to understand differentiated earnings growth leading to sizable contribution to alpha. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
27-04-2025
- Business
- Economic Times
Canara Bank to mobilise around Rs 500 crore via Canara Robeco IPO
Kolkata: Canara Bank is likely to garner a little over Rs 500 crore from the partial sale of its mutual fund subsidiary Canara Robeco Asset Management Company, people aware of the matter will help the bank boost its capital adequacy ratio and continue advances growth and branch expansion without fresh equity raising. Canara is likely to offload 13% holding in the asset management company , which last week filed a draft red herring prospectus with market regulator Securities & Exchange Board India seeking permission for an initial public offer to sell 49.8 million shares. The IPO consists only of an offer for sale by promoters -- Canara Bank and Orix Corporation Europe NV -- while there will be no fresh issue of shares. "The bank would like to raise a little more than Rs 500 crore from the IPO," the person cited above said. The bank did not comment on the Bank is likely to have grown its advances by about 10% year-on-year at the end of March. It is also expanding its branch network by opening 150-200 branches every year. Its capital adequacy ratio stood at 16.44% at the end of December. The ratio is likely to have increased as it would plough back profit into reserves. The bank would announce its fourth quarter earnings on May IPO proceeds would get added to capital adequacy calculation after the conclusion of the exercise. Canara Bank holds 51% in the asset management company while its joint venture partner Orix holds 49%. Orix would offload 12%. The AMC was incorporated in 1993 as Canbank Investment Management Services Limited to manage the assets of Canbank Mutual Fund. Orix, which was previously known as Robeco Groep NV, came in as joint venture partner in 2007. The company grew at a CAGR of 34.75% between March 31, 2022, to March 31, 2024, in comparison to industry growth of 18.8%, according to the Crisil report. The company's likely IPO size could be around Rs 1000 crore. The final size will be disclosed after the price discovery, which will be done through a book-building process. After this, Canara Bank would also monetise its holding in Canara HSBC Life Insurance where it holds 51%. It would sell 14.5% stake in it through the proposed IPO of the insurance company.
New Indian Express
26-04-2025
- Business
- New Indian Express
Canara Robeco AMC files for Rs 1,000 crore IPO
MUMBAI: Canara Robeco Asset Management Company, the second oldest fund house in the country, has filed preliminary papers with the markets watchdog Sebi to raise funds via initial public offering which will only be an offer for sale without any fresh issue, from which it is likely to raise Rs 800-1,000 crore. The final size of the issue will be disclosed after the price discovery but investment banking sources told TNIE that they expect the issue size to be in the Rs 800 crore to Rs 1,000 crore range. According to draft IPO papers, the OFS will see promoters -- Canara Bank and Orix Corporation Europe NV--offloading 4.98 crore shares, with no fresh issue component and therefore, no money will come to the company. Of this, the state-run Canara Bank plans to sell 2.59 crore shares, and the Japanese conglomerate Orix Corporation-owned subsidiary Orix Corporation NV (previously known as Robeco Groep) will be selling the remainder 2.39 crore in 1993, Canara Robeco AMC is a joint venture company between Canara Bank and Orix Corporation Europe with a 51:49 per cent shareholding ratio. As of December 2024, it managed 25 schemes comprising 12 equity schemes, 10 debt schemes and three hybrid schemes with a quarterly average asset under management of Rs 1,08,366 crore. Profit for the nine months period to December 2024 stood at Rs 149 crore, growing 40.3 per cent from a revenue of Rs 302.9 crore, which rose 35.9 per cent -on-year. The numbers for FY24 stood at Rs 151 crore up 91.1 per cent and Rs 318 crore up 55.5 per cent, respectively.
Time of India
25-04-2025
- Business
- Time of India
Canara Robeco files draft papers with Sebi for IPO. Issue to be OFS
Canara Robeco Asset Management Company has filed draft papers with market regulator Securities and Exchange Board of India (Sebi) for an initial public offering ( IPO ) which will be an offer for sale ( OFS ). Canara Bank and ORIX Corporation Europe N.V, which are promoters of the company will collectively offer up to 49,854,357 equity shares, In this, Canara Bank will offer up to 25,924,266 equity Shares while ORIX will sell up to 23,930,091 equity shares, the Draft Red Herring Prospectus (DRHP) said. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like เทรดทองCFDs กับโบรกเกอร์ที่เชื่อถือได้ | เรียนรู้เพิ่มเติม IC Markets สมัคร Undo Canara Robeco Asset Management Company's primary activities include managing mutual funds and providing investment advice on Indian equities. As of December 31, 2024, the company managed 25 schemes comprising 12 equity schemes, 10 debt schemes and three hybrid schemes with a quarterly average assets under management (AUM) of Rs 1,08,366 crore. The company has a multi-channel sales and distribution network that allows it to offer products and services to its customers. This network includes third-party distributors, and sales made through its branches, and digital platforms. Canara Robeco AMC has witnessed a growth in its QAAUM, growing at a CAGR of 34.75% between March 31, 2022, to March 31, 2024, compared to industry growth of 18.8%, the DRHP said citing a CRISIL report. The same report adds that the company had the third highest share of equity (including equity-oriented hybrid) AUM as of and compared to the top 10 AMCs in India, had the highest share of equity-oriented AUM as of December 31, 2024. Live Events The equity shares are proposed to be listed on the BSE and NSE. SBI Capital Markets Limited, Axis Capital Limited and JM Financial Limited are the Book Running Lead Managers to the issue. MUFG Intime India Private Limited (Formerly Link Intime India Private Limited) will be the registrar for the public issue.
