UBS acquires the Indian arm of Standard Chartered Mutual Fund

UBS Global Asset Management has agreed to acquire Standard Chartered’s Indian mutual fund management business for a total consideration of CHF 147 mn (around Rs. 516 crores). The Indian unit of Standard Chartered Mutual Fund is India’s ninth-largest mutual fund and will add to CHF 4 bn to UBS’ assets under management (AUM). It had 4% share of the domestic market

The transaction is structured as the acquisition of a 100% interest in Standard Chartered Asset Management Company Private Limited, and Standard Chartered Trustee Company Private Limited, the manager and the trustee, respectively, of the mutual funds offered by the company. The move remains subject to regulatory approval, as well as to a price adjustment linked to assets under management at closing. The acquisition included 16 mutual funds, 10 of which were fixed income, 2 involving asset allocation and 4 in equities.

The total size of the Indian mutual fund market is just short of $100 bn and has grown by around 26% a year since 2001, and surged 62% last year.

Read the article in Business Standard.