The transaction is subject to compliance with SEBI prescribed processes and fulfillment of mutually agreed conditions precedent to deal closure. As per regulatory requirements, there will be an ‘exit load free window’ for investors to redeem their investments, where such exit load is applicable.
Post deal closure, the schemes currently managed by Principal India and Sundaram will either be merged or renamed as Sundaram schemes in their respective categories. All investors and distributors of Principal India schemes will become investors/distributors of Sundaram. Thus, a wider range of equity schemes will be available to the more than two million combined investor base and to the strengthened distribution franchise across the country-wide network of 88 branches.
“We look forward to complementing our existing Equities fund management talent with the addition of the team from Principal India. We endeavor to retain and absorb Principal India’s distribution franchise with minimal disruption to their commercial terms. The existence of the same back-office service provider (RTA) is expected to smoothen the transition for existing customers and distributors,” said Sunil Subramaniam, Managing Director, Sundaram Asset Management Company.
“As Sundaram acquires our India asset management and retirement advisory businesses, our top priority is to ensure the best outcome and a smooth transition for our customers, distributors and employees,” said Pedro Borda, Chief Operating Officer, Principal International. “We are confident they will benefit from Sundaram’s expanding mutual fund platform.”