DHFL Pramerica Mutual Fund has completed its acquisition of Deutsche Mutual Fund, said a press release issued by the company.
This acquisition will add Rs. 24,786 crore (AUM as on December 2015) to the kitty of DHFL Pramerica Mutual Fund. Currently, DHFL Pramerica is managing Rs. 2,163 crore as on December 2015. A few media reports suggest that the deal was finalized for nearly Rs.400 crore. The acquisition will catapult DHFL Pramerica to 13th position in the AAUM pecking order.
The fund house has appointed former CEO of Deutsche MF Suresh Soni as the new CEO of DHFL Pramerica MF.
Suresh, a Chartered Accountant and a Cost Accountant, has over 23 years of experience in the mutual fund industry, including several years as a fund manager and CIO of Deutsche MF.
In a press release, Glen Baptist, CEO of Pramerica International Investments said, “This acquisition is proof of our commitment to the asset management business in India and highlights the tremendous opportunity we see in serving clients in this market. Our global asset management strength, our expertise across international markets and our partnership with DHFL make us confident that we will be able to build a leading asset management business in India on the back of this acquisition. We are committed to ensuring a smooth transition for our clients, staff and other stakeholders.”
The industry has been going through a consolidation phase. In 2014, Kotak MF and Birla Sun Life MF had bought the schemes and portfolio management accounts of Pinebridge MF and ING MF respectively. In December 2013, HDFC Mutual Fund acquired schemes of Morgan Stanley. Earlier, Japan based AMC, Daiwa Mutual Fund sold its schemes to SBI Mutual Fund.
Also, media reports suggest that Tata MF is looking to buy JP Morgan MF. Cafemutual could not independently confirm this news.
