Page 15 - Banking Finance February 2021

MUTUAL FUND

Mutual Fund News

Sundaram mutual acquires Director, Sundaram Asset distribution to the investors by
Management Company said, "This dynamically managing the asset
100% stake in principal transaction will strengthen our allocation between equity and fixed

mutual fund presence in the marketplace with the income using equity derivatives
The asset management company, addition of a range of schemes with a strategies, arbitrage opportunities and
Sundaram Asset Management, of good long term performance track pure equity investments.
Sundaram Finance announced the 100 record across the large and mid-cap The NFO will open for subscription on
per cent acquisition of the AMC segments. This will complement our January 15, 2021 and will close on
business of Principal Asset business which has traditionally been January 29, 2021. The Benchmark
Management in a press release. The weighted towards the mid-and small- Index of the fund is CRISIL Hybrid
transaction is subject to regulatory cap segment." 50+50 Moderate Index. The scheme.
approvals processes prescribed by Mr Pedro Borda, Chief Operating The scheme seeks to reduce the
SEBI. The transaction has been done at Officer, Principal International said, "As volatility by diversifying the assets
an undisclosed amount. part of a systematic review of the across equity and fixed income. The
Sundaram boasts of assets under company's portfolio of businesses and Fund will be managed by Aniruddha
global market dynamics, we've made Naha (for equity investments),
management to the tune of Rs 40000
the decision to exit the asset Kumaresh Ramakrishnan (for debt and
crore, majority of which is in equity-
management business in India. As we money market investments) and
oriented schemes while Principal has
transition the business, customers and Anandha Padmanabhan (for overseas
assets worth Rs 7447 as of 31
distributors will remain our top priority. investments).
December 2020 out of which about 90
We believe that they will benefit from "The Balanced Advantage Fund
per cent is in equity-oriented schemes
Sundaram Asset Management's larger category is an excellent investment
as per the press release. Sundaram's
mutual fund platform in this market." solution for investors. A model based
operations are diversified across 17
approach helps in automatically
equity and 11 fixed income schemes.
PGIM India Mutual Fund rebalancing investments between
As of 31 December 2020, Sundaram equity and fixed income in a tax
was ranked 17th while Principal was launches 'Balanced Advan- efficient manner without the investor
ranked 24th as per their total asset tage Fund' having to keep track herself. The
under management across fund PGIM India Mutual Fund has launched dynamic asset allocation model that
houses in India.
'PGIM India Balanced Advantage the PGIM India Balanced Advantage
Commenting on the acquisition, Mr Fund', a scheme which aims to provide Fund will follow considers 15 years
Sunil Subramaniam, Managing capital appreciation and income rolling PE average as the long-term

BANKING FINANCE | FEBRUARY | 2021 | 15