Mumbai: SBI Mutual Fund, the asset management company of state-run SBI, will acquire all the existing India- domiciled schemes of Daiwa Mutual Fund.
Though the company did not give the deal value, sources in the industry said it could be around Rs 2 crore.
"State Bank of India, SBI Mutual Fund Trustee Company Pvt Ltd and SBI Funds Management Pvt Ltd (sponsor, trustee and investment manager of SBI MF respectively) have reached an agreement with Daiwa Asset Management Company ... To take over ... All the schemes of Daiwa MF," the fund house said in a release Tuesday.
Post this transaction, which is subject to regulatory approvals, all existing schemes of Daiwa MF will become schemes of SBI MF with existing investors coming into the fold of SBI MF.
Daiwa currently manages one scheme each dedicated to liquid funds, debt fund, equity funds and Gilt funds category, according to its website.
According to sources, SBI MF will not absorb any fund manager or employees of Daiwa MF into its rolls as it is only the acquisition of schemes of Daiwa MF and not a full-fledged acquisition of the asset management company.
"This acquisition will help SBI MF acquire a unique client base which will increase its penetration in retail and HNI space. Daiwa AMC has built robust relationships with its distributors and SBI MF intends to leverage on those relationships to acquire new retail customers," the company said in the release.
Referring to this acquisition of schemes, Managing Director and Chief Executive Officer of SBI Funds Management, Deepak Chatterjee said, "The local expertise and years of experience in the Indian markets offered by SBI will provide the opportunity to grow further and enhance the offerings for investors."
While SBI MF is one of the largest fund houses of the country with an AUM of Rs 54,905 crore by the end of March quarter, Daiwa MF had an AUM of Rs 266.12 crore during this period.
First Published: Tuesday, June 04, 2013, 19:36