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Birla Sun Life to take over ING funds

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Reuters MUMBAI
Last Updated : May 15 2014 | 11:49 PM IST

MUMBAI (Reuters) - Birla Sun Life Asset Management Company is to acquire mutual fund assets from Dutch bank ING Groep NV , Birla said on Thursday.

Birla Sun Life, a Joint venture between Aditya Birla Group and Canada's Sun Life Financial Inc , said it will add about 11 billion rupees ($186 million) to its average assets under management through the acquisition of ING's funds.

The companies did not disclose the deal's value.

Over the last 18 months ING has radically reshaped itself to comply with the terms of a 10 billion-euro state rescue, shedding investment banking operations and insurance and asset management subsidiaries in several countries.

In January ING sold its Taiwanese asset management arm to Japan's Nomura Asset Management and in February said it will close its Middle East asset management operation.

The sale also marks another retreat by a foreign firm from India's asset management industry.

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Last year, Morgan Stanley Investment Management and Japan's Daiwa Asset Management both got out.

India's crowded asset management industry has struggled in the last few years with sustained outflows from equity funds due to volatile markets and domestic investors have withdrawn a net 385 billion rupees ($6.51 billion) from such funds since 2010. ($1=59.1450 Indian rupees)

(Reporting by Himank Sharma; Editing by Greg Mahlich)

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First Published: May 15 2014 | 11:32 PM IST

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