MUMBAI, Aug 14: J P Morgan of the US has decided to pull out of ICICI Asset Management Company (I-AMC) which was jointly promoted with ICICI four years ago. ICICI has roped in Prudential Corporation of the UK to replace J P Morgan.

I-AMC currently manages two mutual funds schemes in India with assets aggregating to Rs 156 crore. ICICI signed an MoU in Mumbai on Thursday with Prudential as a joint venture partner in I-AMC, subject to statutory and regulatory approvals.

ICICI already has a existing joint venture with Prudential for undertaking life insurance activities as and when the sector is opened up for private investment. J P Morgan, which had formed the joint venture with ICICI in 1994, had a 49 per cent stake in I-AMC.

Though the US-based J P Morgan continues to be a partner of ICICI in ICICI Securities (I-Sec), an investment banking company, the relations between the two are not reported to be very cordial.

There were reports in the past that the two companies would be parting ways even in I-Sec, which is not doing financially well. I-AMC presently manages two schemes with assets aggregating Rs 156 crore on behalf of three lakh investors. Following a recent review of its long-term strategy, the I-AMC management drew up plans to further strengthen its penetration of the individual investor segment.

``The entry of Prudential as the new joint venture partner in I-AMC will bring a renewed focus to the positioning of its mutual fund schemes as attractive investment opportunities for individual investors,'' said K V Kamath, Managing Director and CEO of ICICI.

The ICICI statement says that Prudential Corporation's strength is its established brand name, product development and marketing expertise, distribution management skills and investment management exprience.

Prudential's international experience, including that in the emerging markets, will enable I-AMC to provide quality products and establish international standards of investor education and service, Kamath said.

Prudential is a 150-year-old Triple A rated global retail financial services company whose main areas of business are life insurance, pensions, investment management and banking.

It manages assets of over $180 billion worldwide and has a significant and growing business in Asia in nine countries.

According to Mark Tucker, managing director of Prudential Corporation Asia, the institution has developed long-term commitments in all the markets in which it operates.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.