Morgan Stanley MF to merge its AMC products with HDFC MF

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After acquiring the assets of Morgan Stanley MF last year, HDFC MF, the country's biggest asset management company, is now trying to integrate former's products into its portfolio through some "strategic and tactical" changes, a top company official said.

"Right now the task at hand is to integrate their (Morgan Stanley's) products into our funds and we are making some strategic and tactical changes to those products," HDFC MF Managing Director, Milind Barve told PTI.

"We are presenting that to the Sebi, and once that is approved, some product gaps in our current range will be filled up," Barve said.

While some Morgan Stanley MF schemes might get integrated, in case of some others the fundamental attributes might be changed and the rest might remain as such, he said.

"We are doing all of this three to see that at the end of integration, we fill the product gap," Barve said.

Last December, HDFC MF entered into an agreement to buy all eight schemes of Morgan Stanley with assets of Rs 3,290 crore.

The deal value, not announced officially, has been pegged at around Rs 150 crore. The acquisition is likely to consolidate HDFC MF's leadership position in the industry by widening the gap with its nearest rivals.

When asked whether investors will stay with HDFC MF post the acquisition, Barve said, "I am quite confident that investors will stay. We are making it for better and trying to give it more current flavour what is relevant today.

"So, the acquisition in a sense is an opportunity to strategically align funds."

HDFC MF is the largest asset management company with an average assets under management of Rs 1.089 lakh crore as of end of December 2013 quarter.