Mutual Funds
JP Morgan sells mutual fund business to Edelweiss
After losing nearly 50% of its AUM in just six months, JP Morgan MF calls it quits
 
On 22 March, Edelweiss Asset Management announced that it will acquire JP Morgan’s Mutual Fund business in India. Over the past six months the assets under management (AUM) of JP Morgan MF fell by nearly 50% from Rs14,683 crore as on June 2015 to Rs7,500 crore as on December 2015. JP Morgan MF, which started business in 2007, manages assets of approximately Rs2,300 crore under equity schemes. However, over the six months, the non-equity AUM of JP Morgan MF substantially after the Amtek Auto issue. Its AUM under debt and liquid schemes fell by 66% to just Rs3,968 crore as on December 2015 from Rs11,612 crore as on June 2015.
 
In August 2015, the fund house received a lot of flak for the way it handled the Amtek Auto fiasco. The fund house had imposed curbs on redemption in two of its schemes that had exposure to the Amtek Auto paper after the security was downgraded. In September, the fund house segregated the illiquid assets after approval from the unitholders. In December 2015, the fund house was finally able to sell the Amtek Auto bonds at a loss. 
 
In October 2015, it was said that JP Morgan India was scouting for potential buyers and has appointed an investment banker for the same. Over the past few months, it was in the news that Tata MF, DHFL Pramerica Asset Managers, Reliance Capital and a large bank-controlled MF were among others who were eyeing the assets of the fund house. 
 
The acquisition will take the total AUM of Edelweiss MF to approximately Rs8,757 crore. This transaction marks yet another exit of a foreign player from the Indian mutual fund business. Over the past few months, Goldman Sachs sold its mutual fund business to Reliance MF; Nomura Asset Managers sold 19.3 % of its 35% stake in LIC-Nomura MF to LIC Housing and KBC Asset Management (of Belgium) sold 49% stake in Union-KBC AMC to its Indian partner Union Bank. In August 2015, Deutsche Bank had sold its fund business to Pramerica Mutual Fund. 
 
Frustrated by poor market prospects after 2009, a number of global players like Fidelity, Daiwa, Morgan Stanley, ING, PineBridge and Deutsche have already exited the Indian mutual fund business over the past few years. As on December 2015, 43 fund houses managed a total AUM of Rs13 lakh crore. However, the top 10 fund houses manage over 80% of the assets. And the top four fund houses—HDFC MF, ICICI Prudential MF, Reliance MF and Birla Sun Life MF manage nearly 50% of the industry assets.

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COMMENTS

Chandragupta Acharya

8 months ago

Though JP Morgan has issues of its own, one fails to understand the reasons behind the general exodus of foreign mutual funds from India, given that India remains one of the most attractive markets in the world. None of them have given a specific reason for the exit. Media has speculated about increased capital requirements but our capital requirements are pittance for these entities given their global sizes. IMHO, this reflects very poorly on SEBI.

Modi wants monitoring of loans given to self-help groups
New Delhi : Monitoring the progress of various rural development schemes, Prime Minister Narendra Modi has instructed officials to also monitor loans extended to rural self-help groups (SHGs) through the Aadhaar scheme.
 
Three crore households have so far been linked to SHGs under the Deendayal Antyodaya Yojana that targets poverty alleviation through sustainable livelihood, NITI (National Institution for Transforming India) Aayog officials told the prime minister.
 
“He asked for due monitoring of the loans given to SHGs, using Aadhaar. He emphasised that loans must reach the intended beneficiaries, for this scheme to be successful,” an official said.
 
The NITI Aayog officials on Monday gave a presentation to the prime minister on the progress of the Deendayal Antyodaya Yojana and the Pradhan Mantri Gram Sadak Yojana (PMGSY). 
 
Official figures indicate that an average of 91 km of rural roads have been built daily in the financial year 2015-16, resulting in addition of 30,500 km to rural road length. As a result, 6,500 habitations were connected. 
 
“The prime minister was told about the use of innovative best practices in the PMGSY, including the use of geographic information system and space imagery for planning and monitoring, as well as citizen grievance redressal through app 'Meri Sadak',” the official said. 
 
“The prime minister has directed for stringent quality monitoring of the roads built under the scheme. He said quality checks should be made at the material procurement, construction and maintenance stages,” he added.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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Maharashtra spends more on cattle than orphan kids: BJP MLA
Mumbai : More money is spent on the upkeep of cattle in Maharashtra than orphans in state-run shelter homes, a ruling BJP legislator has said.
 
Anil Bonde, the Bharatiya Janata Party legislator from Morshi (Amravati), said that the state shells out Rs.70 per day per animal in a fodder camp, while orphans in state-run children's homes get only Rs.30 per child per day as food expenses.
 
Meanwhile, officials said non-governmental organisations running orphanages in Maharashtra have not received dues totalling Rs.156 crore for three years, pending sanction from the authorities.
 
More than 250 fodder camps for cattle have been set up in water-scarcity hit districts of Marathwada like Latur, Beed and Osmanabad since August 2015.
 
The state has so far spent around Rs.60 crore on these cattle camps, Bonde told the media here on Monday evening.
 
In contrast, Bonde said, there are 1,105 orphanages in the state, including 1,062 run by recognised non-governmental organisations.
 
The government pays them Rs.900 per month per child (Rs.30 per day) for food while Rs.990 (Rs.33 per child) is given for special children every month. 
 
Bonde demanded that the state government hike the money given to children's homes to at least Rs.1,500 (Rs.50 per day per child) per month and disburse it on schedule.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.

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COMMENTS

shadi katyal

8 months ago

This should not come as a surprise. After all those childern are orphans and under BJP/RSS a cow is a mother and thus GOvt can say they are doing their duty.
After all we have killed people when Gow Mata is involved and this should make it clear that human beings have no value compared to a Bovine

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