India Infoline tweaks mutual fund shareholding

Company transfers stake to wealth management arm

The India Infoline group has moved to bring its mutual fund business under the same business division as its portfolio management arm.

The group company, India Infoline Limited, transferred its shares to IIFL Wealth Management last week, according to a notification published in a financial daily on Monday.

“In order to integrate our Fund Management and Asset Management Businesses, the entire equity shareholding of Indian Infoline Asset Management Company Ltd (IIFL AMC) and India Infoline Trustee Company Limited (IIFL Trustee), held by India Infoline Limited, has been transferred on October 18, 2013 to IIFL Wealth Management Limited (IIFL Wealth), a subsidiary of India Infoline Limited,” it said.

IIFL Wealth will also act as the sponsor of IIFL Mutual fund.

The wealth management arm also looks after the Portfolio Management Services or PMS business which manages investments for high networth individuals and other non-retail clientele. IIFL’s portfolio management arm managed Rs.9,400 crores worth of assets as of September 30, 2013; according to the notification.

The Securities and Exchange Board of India (Sebi) had given its permission for the change in shareholding via a letter dated October 17, it said.

The mutual fund arm had average assets under management of Rs 207.12 crore in the three month period ending in September 2013, according to data the Association of Mutual Funds in India (Amfi), an industry body.