Page 16 - Banking Finance January 2022

MUTUAL FUND

need of in depth research on ESG ket, including suggesting steps to im- Gold Fund will not be affected by this
norms with focus towards developing prove market safety, efficiency and change. The NAV per unit of Quantum
high quality, objective, content-specific transparency. Gold Fund will be reset to reflect the
rating matrices. change in the denomination of gold
Quantum Mutual Fund and Face Value per unit and the bal-
"Research in ESG can go a long way
towards converting intangible and changes face value of gold ance unit holding of the existing
amorphous variables of business to fund unitholders of the scheme will increase
measurable and quantifiable returns," proportionately effective from the
he said. Quantum Mutual Fund has announced Record Date i.e. December 17, 2021.
a change in the face value of Quantum
Gold Fund. The fund house says that the
Sebi overhauls advisory HSBC to acquire L&T Mu-
move is aimed at making the fund
committees on secondary more accessible for investors. The face tual Fund for $425 million

markets, mutual funds, value of QGF has changed from Rs 100 HSBC will acquire the mutual fund busi-
to Rs 2. Accordingly, each unit will ap- ness of L&T Finance Holdings for $425
corporate bonds proximately represent 1/100th of 1 million (Rs 3,250 crore). The deal val-

Markets regulator Sebi has restruc- gram of gold. ues L&T Mutual Fund at 4.2% of its
tured its three advisory committees
"When Quantum launched its Gold assets under management of Rs
pertaining to the secondary market,
Fund in 2008, it was the lowest de- 78,273 crore at the end of September.
mutual funds, and corporate bonds and nomination ETF in the Indian markets Earlier this year, Sundaram Finance
securitisation. Rejigging its secondary at 12 grams. With rising gold prices, paid Rs 338.53 crore, amounting to
market committee, Sebi has listed
minimum investment in QGF has in- 4.5% of assets under management, to
Zerodha's co-founder and chief execu-
creased substantially, thus leading to acquire Principal AMC.
tive officer (CEO) Nithin Kamath among
high NAV. With the current change in
the new inductees in the 17-member the denomination and hence the face After completion of the deal, HSBC will
panel, latest information on the value, the NAV of the fund will reduce merge the operations of L&T Mutual
regulator's website showed. Fund with its existing asset manage-
proportionately to represent 0.01
ment business in India.
The advisory committee will now be grams of gold, making it more acces-
chaired by Madhabi Puri Buch, ex- sible for investors," ays Chirag Mehta, "With an acquisition of this size, the
whole time member of Sebi. The panel Senior Fund Manager, Quantum Gold asset management business will be a
was earlier headed by IIM Ahmedabad Fund. meaningful entity for HSBC in India,"
professor and former whole-time said Value Research founder Dhirendra
Here's how it will impact the new in-
member of Sebi, Jayanth R Varma. Kumar.
vestments in the fund: For example,
Other members of the panel include suppose the NAV of Quantum Gold L&T Mutual Fund is ranked 12 out of
Dhiraj Relli, MD and CEO of HDFC Se- Fund is Rs. 2,000 representing Gold 44 in the Indian mutual fund industry.
curities; Kaku Nakhate, President and Fund NAV for ½ gram of Gold which will Equity assets account for Rs 41,000
Country Head India at Bank of change to represent 0.01 gram of gold crore of the total cited above.
America; Naresh Yadav, MD and CEO and thus the NAV would be approx to HSBC is at 23 with assets of Rs 11,314
of SBICAP Securities; and Leo Puri, Rs. 40. With the change in the face crore, of which equity accounts for Rs
Chairman, JP Morgan, South and value, the NAV of the fund will change 4,264 crore. L&T Mutual Fund has 2.4
Southeast Asia. representing 0.01 gram of gold making million active folios, is empaneled with

The panel advises the regulator on it more accessible for investors. leading banks and has a presence in 65
matters related to the secondary mar- Existing investment Value in Quantum locations. T

16 | 2022 | JANUARY | BANKING FINANCE