Birla Sun Life to take over Alliance MF schemes
By Our Banking Bureau | 19 Oct 2004
Mumbai: Birla Sun Life Trustee Company (BSL Trustee) is taking over the mutual funds schemes of Alliance Capital Asset Management (India) Ltd (ACAM). Both companies said they had reached an agreement under which the schemes of Alliance Capital Mutual Fund will be handed over to BSL Trustee, and ACAM will transfer its rights to manage the schemes of the Alliance Capital Mutual Fund to BSL AMC.
As of September 30, 2004, ACAM had approximately Rs1,951 crore in assets under management, while Birla Sun reported assets under management of Rs8,982 crore.
ACAM said after a lengthy review of strategic options for its Indian mutual funds business, it had decided that growth opportunities for its asset management business has diminished. Birla Sun Life is a respected financial services organisation with a strong and successful track record in building its asset management franchise.
In transitioning the schemes to Birla Mutual Fund, which is a larger mutual fund house growing at a faster rate, Alliance Capital believes it is acting in the best interests of its investors. Birla Sun Life in turn has taken the initiative to acquire a quality franchise.
Birla Sun Life's near term plans are to maintain the separate identity, under its own brand, of the schemes transferred from ACAM. Alliance Capital said it would continue its long history of investing in India, which began more than 10 years ago with the launch of the India Liberalisation Fund, a Luxembourg-registered offshore fund, which was one of the earliest approved FII sub-accounts in India and which will continue to actively invest in India as one on behalf of its offshore clients.
