This acquisition adds Rs.
1,100 crore assets to the kitty of Birla Sun Life Mutual Fund.
Birla Sun Life AMC today announced that it has bought all the schemes and portfolio management accounts of ING Mutual Fund.
ING was managing Rs. 564 crore as on March 2014 and had 95680 folios or investor accounts.
Sharing his thoughts about the acquisition, Ajay Srinivasan, Chief Executive – Financial Services, Aditya Birla Group said, “Birla Sun Life Mutual Fund is one of the key businesses for Aditya Birla Financial Services Group. As of today it manages assets over Rs. 1 lakh crore supported by its strong investment performance and industry vintage of twenty years. Committed to help grow the mutual fund industry and increase outreach, we have bought over the schemes and are committed to providing our top quality products and services to over 75,000 customers of ING Investment Management India. This acquisition adds average assets of Rs. 1,100 crore to our AUM.”
Speaking on the development, A. Balasubramanian, CEO, Birla Sun Life Asset Management Company Limited said, “We found a strategic fit in the acquisition of schemes of ING Investment Management India. Beyond AUM, this adds to our existing investor base and we see an opportunity to increase the penetration. We welcome ING customers."
“While we remain committed to building retail penetration for mutual funds, the acquisition also helps enhance our alternate assets with new offerings in Portfolio Management Services adding to our HNI investor base”, added A. Balasubramanian.
The acquisition is subject to regulatory approvals. According to media reports, ING Mutual Fund was on the block for a long time now. Some reports had suggested that Axis Mutual Fund was going to buy the schemes of ING Mutual Fund.
The industry has been going through a consolidation phase. In December 2013, HDFC Mutual Fund had bought schemes of Morgan Stanley. Earlier, Japan based AMC, Daiwa Mutual Fund sold its schemes to SBI Mutual Fund.