HDFC Mutual Fund has signed a definitive agreement to acquire all the eight schemes of Morgan Stanley Mutual Fund (MF) in India. The details of the transaction were not disclosed.
The agreement is subject to regulatory approvals as required. The average combined assets under management of the eight schemes for quarter ended September 30, 2013 was Rs. 3,290 crore.
HDFC Mutual Fund is acquiring only the schemes and not the company. But since all the schemes are being acquired, Morgan Stanley MF India would be a shell company for all practical purposes.
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Morgan Stanley MF India has about Rs. 1,400 crore of equity assets under management, and this is one of the main reasons why HDFC MF is going for this acquisition.
“We have acquired a portfolio of strong performing domestic mutual fund schemes from Morgan Stanley, and this acquisition is another step towards expanding our mutual fund customer base. We look forward to welcoming the investors in the eight schemes of Morgan Stanley Mutual Fund into the HDFC family. The schemes have strong fundamentals. It also has a good equity business,” Milind Barve, Managing Director of HDFC Asset Management Company Limited, told The Hindu .