Financial Daily from THE HINDU group of publications
Wednesday, Jul 24, 2002
Financial Daily from THE HINDU group of publications Wednesday, Jul 24, 2002 |
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Markets
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Mutual Funds Corporate - Mergers & Acquisitions Sun F&C buys out JF Mutuals' two schemes Our Bureau
Mr Nikhil Khattau
MUMBAI, July 23 SUN F&C Mutual Fund today acquired two schemes of JF Mutual Fund — the JF India Bond Fund and JF Personal Tax Saver — which currently manage a corpus of over Rs 150 crore. Mr Nikhil N. Khattau, Chief Executive Officer, Sun F&C Asset Management (India) Private Ltd, however, refused to divulge the total cost of acquisition. Speaking at a press conference, he said, "The payment will be made in a phased manner and the entire deal should be completed by the end of next month.'' The existing JF Mutual Fund schemes, sponsored by J P Morgan India Pvt Ltd, will now become Sun F&C India Bond Fund and Sun F&C Personal Tax Saver. Current unit holders of the JF schemes will be given a 21-day migration period starting July 24, to exit the scheme. These unit holders will not be charged any exit load by JF Mutual Fund and no entry load by Sun F&C Mutual Fund. The JF India Bond Fund, which is similar to the Sun F&C Money Value Fund will not be merged into the latter, Mr Khattau said. "We feel that there is enough scope for two funds to exist in the market. However, we will work on creating a strong differentiation between the two funds in terms of the management style or type of investor base. Even now, though, the JF fund focuses on corporates, while Sun F&C has a strong retail focus. Also, JF funds have had a relatively more conservative approach,'' he said. Sun F&C has not ruled out any further acquisitions. "We are still looking at other acquisition opportunities and plan to grow both inorganically and organically,'' Mr Khattau said. "At the moment though, we have no plans to launch new schemes and would rather concentrate on growing the existing schemes,'' he added.
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