Friday, March 23, 2012

Reliance Mutual, HDFC, State Street Corp & seven other funds in final lap for Fidelity's India mutual fund business.

About ten funds, including Reliance Mutual, HDFC, and State Street Corp, have been shortlisted to buy Fidelity's India mutual fund business, people close to the transaction said. The winner is expected to be selected some time in April from a second shortlist of five, they added.

JP Morgan, which is advising Fidelity on the transaction, is said to have compiled a shortlist of ten from the 22 funds, who submitted expressions of interest. Of these ten, Fidelity India will recommend the five "best names" to its parent to take the transaction forward, a person close to the development said.

The shortlisted asset management companies include Reliance Mutual Fund, HDFC Mutual, ICICI Prudential, Birla Sunlife Mutual Fund, Invesco, Mitsubishi UFJ, Mizhuo Asset, Pramerica and State Street Corp.

Almost all these institutions have bid for Rs 350-Rs 500 crore, another highly-placed official at Fidelity told this paper. The price values the mutual fund at 4-5.8% of its total assets under management of Rs 8,700 crore, lower than Fidelity's expectation of 6.5%.

A Fidelity spokesperson declined comment on speculations or rumours. Spokespersons of all the domestic mutual funds declined comment to an email questionnaire from ET.

Though Fidelity has drawn a shortlist, it is not clear whether the deal will also include the equity fund management team, which the fund house was not very keen to sell when the bids opened in February.

In its "request for proposal" document, Fidelity had stated that it is not keen on making the equity fund management team headed by Alexander Treves, the Mumbai-based CIO, as part of the sale.

The fund house intended to retain the team to manage its offshore investment advisory business, which again is not a part of the "assets-to-be-sold" list.

"We've not been told anything of their investment team till now; we're not really keen to acquire them also. We've our own team to manage funds," said the senior official of a domestic fund house, shortlisted by Fidelity.

Fidelity insiders said the board's meeting in Boston will seal the fate of the deal. If the board is not happy with the bids or conditions placed by the bidders, it may decide to defer the stake sale for a later date, sources said.

Domestic fund houses that have bid for Fidelity's assets have another problem with respect to absorbing their workforce. In its "request for proposal" document, Fidelity expected the acquirer to give jobs to all members of business management team consisting of marketing and sales personnel.

Fund houses such as ICICI, HDFC, Reliance and Birla have full-sized business management teams. These fund houses are still not sure how many Fidelity staffers will they be able to take on their rolls.

Source: http://articles.economictimes.indiatimes.com/2012-03-22/news/31225274_1_fund-business-fidelity-s-india-fidelity-india

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Aggrasive Portfolio

  • Principal Emerging Bluechip fund (Stock picker Fund) 11%
  • Reliance Growth Fund (Stock Picker Fund) 11%
  • IDFC Premier Equity Fund (Stock picker Fund) (STP) 11%
  • HDFC Equity Fund (Mid cap Fund) 11%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 10%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund) 8%
  • Fidelity Special Situation Fund (Stock picker Fund) 8%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Moderate Portfolio

  • HDFC TOP 200 Fund (Large Cap Fund) 11%
  • Principal Large Cap Fund (Largecap Equity Fund) 10%
  • Reliance Vision Fund (Large Cap Fund) 10%
  • IDFC Imperial Equity Fund (Large Cap Fund) 10%
  • Reliance Regular Saving Fund (Stock Picker Fund) 10%
  • Birla Sun Life Front Line Equity Fund (Large Cap Fund) 9%
  • HDFC Prudence Fund (Balance Fund) 9%
  • ICICI Prudential Dynamic Plan (Dynamic Fund) 9%
  • Principal MIP Fund (15% Equity oriented) 10%
  • IDFC Savings Advantage Fund (Liquid Fund) 6%
  • Kotak Flexi Fund (Liquid Fund) 6%

Conservative Portfolio

  • ICICI Prudential Index Fund (Index Fund) 16%
  • HDFC Prudence Fund (Balance Fund) 16%
  • Reliance Regular Savings Fund - Balanced Option (Balance Fund) 16%
  • Principal Monthly Income Plan (MIP Fund) 16%
  • HDFC TOP 200 Fund (Large Cap Fund) 8%
  • Principal Large Cap Fund (Largecap Equity Fund) 8%
  • JM Arbitrage Advantage Fund (Arbitrage Fund) 16%
  • IDFC Savings Advantage Fund (Liquid Fund) 14%

Best SIP Fund For 10 Years

  • IDFC Premier Equity Fund (Stock Picker Fund)
  • Principal Emerging Bluechip Fund (Stock Picker Fund)
  • Sundram BNP Paribas Select Midcap Fund (Midcap Fund)
  • JM Emerging Leader Fund (Multicap Fund)
  • Reliance Regular Saving Scheme (Equity Stock Picker)
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