Taking forward its
deal to acquire the assets of ING Investment Management India, Birla Sun Life
Mutual Fund (MF) has begun the process of merging all the schemes of the target
entity with its own portfolios.
According to a public
notice, Birla Sun Life MF, part of Aditya Birla Financial Services Group firm,
will merge all the 26 schemes offered by ING MF with its own funds. Besides,
Birla Sun Life MF has given an exit option to the unit holders of ING MF.
"The option to
exit the schemes without any exit load can be exercised from September 8, 2014
and is valid up to October 9, 2014. The option to exit is available to all unit
holders except for unit holders who have pledged their units," as per the
notice.
The Board of ING
Investment Management India, ING Trustee, Birla AMC & Birla Trustee have
approved the merger & the market regulator Sebi has also given its nod to
the proposed deal.
In May this year,
Birla Sun Life MF had announced that it would acquire the assets of ING
Investment Management India for an undisclosed sum. This would mark yet another
exit by a foreign fund house from the domestic market.
Earlier, US based
Fidelity and Morgan Stanley had exited the domestic market after selling assets
to L & T MF and HDFC MF respectively.
As per data available
with AMFI, ING Investment Management had average assets under management of Rs.
563.82 crore by the end of last financial year (2013-14), while Birla Sunlife
MF has an asset size of Rs. 1,01,000 crore as on July 31, 2014.
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