The deal is subject to SEBI approval.
Kotak Mahindra Asset
Management today announced that it is acquiring the schemes of PineBridge Mutual
Fund.
Both Kotak and PineBridge have approached SEBI to get an approval to execute this transaction.
Gaurang Shah, President – Asset Management, Life Insurance and International Business, Kotak Mahindra Group, said “We have agreed to acquire the schemes of PineBridge Mutual Fund. The assets included are equity oriented which provides a further enrichment to our equity base. We have an appetite for further acquisitions which can create value for us and we would be keen to consider such opportunities.”
As of August 31, 2014, Kotak Mutual Fund manages AUM of Rs. 37,000 crore while PineBridge manages an AUM of Rs. 660 crore. PineBridge has 63843 folios.
PineBridge has two equity funds - PineBridge India Equity Fund and PineBridge Infrastructure & Economic Reform Fund, two fund of funds - PineBridge India – US Equity Fund and PineBridge World Gold Fund and four debt schemes.
If the deal is approved by SEBI, PineBridge Mutual Fund has to give an exit option to its investors without charging any exit load.
There have been a number of scheme buyouts by large fund houses in the recent past. In May 2014, Birla Sun Life Mutual Fund bought schemes of ING Mutual Fund which added Rs. 1,100 crore to its kitty. HDFC acquired eight schemes of Morgan Stanley Mutual Fund. In November last year, SBI MF bought four schemes of Daiwa.
Fund officials say that the regulatory changes have put the small players in a tight spot who are struggling to gain a foothold in the industry.
