HSBC Asset Management, an indirect wholly-owned subsidiary of HSBC Holdings, has received the nod from Securities and Exchange Board of India (SEBI) to fully acquire L&T Investment Management Limited (LTIM) – a wholly-owned subsidiary of L&T Finance Holdings Limited (LTFH) and the investment manager of L&T Mutual Fund. The approval is subject to certain conditions and further approvals, stated the company.
Upon the completion of the acquisition, the mutual fund schemes operated by L&T Mutual Fund will be transferred to HSBC Mutual Fund or will be consolidated with identified mutual fund schemes of HSBC. “The sponsorship, trusteeship, management, and administration of the L&T Mutual Fund shall be correspondingly changed,” stated HSBC in a statement.
After the acquisition, HSBC will merge the operations of LTIM with that of its existing asset management business in India, which had AAUM of $1.66 billion as of September.
The company called the acquisition a milestone as HSBC aims to become a leading wealth manager in Asia. It said that strengthening HSBC’s asset management business in India will add to its ability to serve the wealth needs of customers in the country as well as of non-resident Indians across the world.
LTIM is the fourteenth largest mutual fund management company in the country with average assets under management of $8.79 billion, and over 2.2 million active folios as of September in India, as per Association of Mutual Funds in India (AMFI).
HSBC Asset Management invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. It managed assets amounting to $595 billion on behalf of its clients as of June 30.
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