Birla Sun Life buys out ING fund assets

Tags: News
Birla Sun Life Mutual Fund has acquired the equity, debt and portfolio management services (PMS) assets of ING Mutual Fund, the Indian asset management business of Dutch financial services firm ING.

The acquisition brings in Rs 1,100 crore assets and more than 75,000 customers to India’s fourth largest fund house, which boosts of assets under management (AUM) worth over Rs 1 lakh crore.

“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,” said Ajay Srinivasan, chief executive of financial services at Aditya Birla Group.

Another official at the fund house said, “We have only purchased the equity, debt schemes and PMS account assets of ING Mutual Fund.”

He didn’t divulge the size of the deal. “We have closed the deal in last 24 hours,” the official said. The acquisition is subject to regulatory approvals.

A Balasubramanian, CEO, Birla Sun Life Asset Management Company, said, “We found it a strategic fit. Beyond AUM, this adds to our existing investor base and we see an opportunity to increase penetration.”

Birla Sun Life Mutual Fund had earlier acquired the schemes of Alliance Mutual Fund and Apple Mutual Fund.

The fund house offers diversified and sector-specific equity schemes, hybrid funds and a wide range of debt and treasury products. Its offerings also include portfolio advisory services for high networth individuals as well as offshore funds for non-resident Indians. It had close to 2 million investor accounts as of March 31.

“The acquisition of the ING schemes will help enhance our alternate assets with new offerings in portfolio management services adding to our HNI investor base,” Balasubramanian said.

The deal comes five months after HDFC Mutual Fund had bought over schemes of Morgan Stanley in December 2013. Earlier, Japanese asset management firm Daiwa Mutual Fund sold its schemes to SBI Mutual Fund and L&T Mutual Fund acquired Fidelity.

Birla Sun Life Mutual Fund is a joint venture between Aditya Birla Financial Services and Canadian firm Sun Life Financial.

The Amsterdam-headquartered ING Group had been looking for a buyer for its asset management business for quite sometime. ING also operates ING Vysya Bank in India.

EDITORIAL OF THE DAY

  • No ifs and buts, please, in India’s engagement with Iran

    Some foreign policy purveyors in this country have for long insisted that India does not leverage its civilisational connections as it should or is ca

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

TODAY'S COLUMNS

Taslima Nasreen

Hate in the time of bhaijaan

A few days ago I went to watch Bajrangi Bhaijaan, ...

Purnendu Ghosh

Death reveals the true colours of life

Death is instantaneous but it comes progressively. Some say, death ...

Gautam Gupta

Our fashion schools need to notch it up

"Creativity is the key to success and primary education is ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture