Sun F & C Buys Jardine Mfs 2 Funds

Sun F&C Mutual Fund today announced the acquisition of Jardine Fleming Mutual Fund's two schemes, JF India Bond Fund and JF Personal Tax Saver '96, with assets of over Rs 150 crore under management.

Following the buyout, the total assets under management of Sun F&C MF will stand at Rs 750 crore. Nikhil Khatau, chief executive, said his fund was interested in more acquisitions of this nature.

"There are number of opportunities we are looking at," he said, but declined to reveal details. While Khatau said the monetary consideration in the transfer of schemes could not be divulged, industry estimates put it at around Rs 3-4.5 crore based on valuation norms. "It will be based on the size of the assets," Khatau said.

 

"In order to maintain the continuity of these schemes and to serve the interests of unitholders, the trusteeship of the schemes together with the responsibility for the management and administration will be assumed by Sun F&C Mutual Fund," a statement by Sun F&C said.

Existing unitholders of the two schemes will be given 21 days to exercise their prerogative of either staying with the scheme or to exit it. In case of the latter, no exit load with be charged if they redeem within the stipulated period. Khatau said that Sebi approval has already been obtained.

Khatau said that since the asset management styles of the funds were more or less identical there would be no substantial changes in the way the schemes are administered.