Edelweiss AMC has acquired the schemes of JP Morgan Mutual Fund, said a press release issued by Edelweiss. The deal is subject to regulatory approvals.
Edelweiss will absorb a majority of JP Morgan MF employees, including its investment team, said a press release issued by JP Morgan AMC.
“As a result of a global strategic review and after careful consideration of what is best for our clients and employees, we have decided to find an acquirer for this business,” said Michael Falcon, Chief Executive Officer of Asia Pacific, Global Investment Management, J.P. Morgan Asset Management.
JP Morgan manages AUM of Rs. 7,081 crore as on December 2015. Following the acquisition, Edelweiss Mutual Fund will catapult to 19th position in AUM terms. Of the Rs. 7,081 crore AUM, 62% of JP Morgan MF’s assets consists of debt funds.
In a press release, Vikaas M Sachdeva, CEO, Edelweiss Asset Management, said, “Focusing on market expansion coupled with smart product performance has helped us double our AUM, making us among the fastest growing AMC this fiscal. This acquisition will give further impetus to Edelweiss AMC and move it to the next level of growth. Both teams will endeavor to make this a seamless transition ensuring business as usual across all stakeholders.”
The Edelweiss Group manages Rs. 31,000 crore through its Global Asset Management businesses which includes the mutual fund business, credit alternative funds, offshore funds and equity funds.
After selling its mutual fund schemes, JP Morgan Asset Management will continue to offer India investment strategies through its offshore India equity investment team, which is based in Hong Kong and manages funds for clients globally. JPMAM will also continue to operate its Global Real Assets investment business in India, said a press release issued by JP Morgan Mutual Fund.
