Sundaram Asset Management Company Limited has received regulatory approval for the purchase of the asset management businesses of Principal Asset Management Company.
Sundaram will acquire the schemes managed by Principal India and acquire 100% of the share capital of Principal Asset Management, Principal Trustee Company, and Principal Retirement Advisors, earlier announced on January 28, 2021.
As per regulatory requirements, there will be an ‘exit load free window’ for investors to redeem their investments, where such exit load is applicable.
Post deal closure, the schemes currently managed by Principal India and Sundaram will either be merged or renamed as Sundaram schemes in their respective categories. All investors and distributors of Principal India schemes will become investors/distributors of Sundaram.
Sundaram Asset Management manages assets across mutual funds, portfolio management services, alternate investment funds and global funds and advisory mandates. Along with its subsidiaries, it has assets under management of about Rs 45,036 crore as of October 31, 2021, of which more than 80% is in equities.
Principal Asset Management has assets under management of Rs 9,558 crore as of October 31, 2021, of which 95% assets are in equities.
