Union Mutual Fund explores merger with BOI AXA

Fund heads deny; such a move could lead to cost synergies, help meet net worth norms for both

Ashley Coutinho  |  Mumbai 

State-sponsored fund houses Union Mutual Fund and BOI AXA Mutual Fund are exploring an option to merge. The talks are at a nascent stage. The former is sponsored by Union Bank of India (UBI). The latter is a joint venture between Bank of India (BoI) and AXA Investment Managers, a part of the Paris-headquartered AXA Group. While a merger might not lead to any meaningful addition in assets, it would mean cost synergies, economies of scale and wider distribution, said sources. The net worth requirement as mandated by the Securities and Exchange Board of India (Sebi) will ...

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Union Mutual Fund explores merger with BOI AXA

Fund heads deny; such a move could lead to cost synergies, help meet net worth norms for both

State-sponsored fund houses Union Mutual Fund and BOI Axa Mutual Fund are exploring an option to merge. The talks are at a nascent stage.The former is sponsored by Union Bank of India (UBI). The latter is a joint venture between Bank of India (BoI) and AXA Investment Managers, a part of the Paris-headquartered AXA Group.While a merger might not lead to any meaningful addition in assets, it would mean cost synergies, economies of scale and wider distribution, said sources. The net worth requirement as mandated by the Securities and Exchange Board of India (Sebi) will effectively halve after merger. At present, both are required to separately maintain a minimum net worth of Rs 50 crore. In 2014, Sebi had raised the minimum capital requirement for an asset management company (AMC) to Rs 50 crore from the earlier Rs 10 crore. It gave AMCs three years to comply. Experts say this is a challenge for houses making consistent losses. Union MF and BOI AXA MF had average assets of Rs 3,056 ... State-sponsored fund houses Union Mutual Fund and BOI AXA Mutual Fund are exploring an option to merge. The talks are at a nascent stage. The former is sponsored by Union Bank of India (UBI). The latter is a joint venture between Bank of India (BoI) and AXA Investment Managers, a part of the Paris-headquartered AXA Group. While a merger might not lead to any meaningful addition in assets, it would mean cost synergies, economies of scale and wider distribution, said sources. The net worth requirement as mandated by the Securities and Exchange Board of India (Sebi) will ... image
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