ITC-Threadneedle to merge with Zurich MF

MUMBAI, JUNE 28: Swiss-based Zurich Financial Services Group is planning to merge the two schemes of ITC Threadneedle Mutual Fund into Zu...

MUMBAI, JUNE 28: Swiss-based Zurich Financial Services Group is planning to merge the two schemes of ITC Threadneedle Mutual Fund into Zurich India Mutual Fund. After the merger, the Zurich India Mutual Fund will manage six schemes with an asset base of Rs 340 crore under management with a total of 1.66 lakh unit-holders. The merger will encompass the transfer of fund managers, the compliance and distribution staff.

The two schemes of ITC Threadneedle Mutual Fund will become an integral part of the Zurich India Mutual Fund and will be renamed as Zurich India Top 200 Fund8217; and Zurich India High Interest Fund8217;. The combined operations will have sales offices in eight cities of the country namely, Mumbai, New Delhi, Calcutta, Chennai, Bangalore, Hyderabad, Pune and Ahmedabad. The transaction is subject to approval of unit-holders, trustees, the asset management company and the regulators.

The president of the combined entity, SV Prasad, said: 8220;Zurich Financial Services is totally committed to the Indian market and through the merged entity, we want to build a premier mutual fund business in the country through an uncompromising focus on quality in all aspects of this business, through an unrelenting focus on quality in all aspects of product innovation, investment management and investment execution.8221;

The ITC Threadneedle Top 200 Fund is an equity scheme with a corpus of Rs 62.85 crore for the period ended March 31. The fund has, since inception, given a return of 71.7 per cent for the period ended March 31. The portfolio comprises of 31 per cent investment in consumer non-durables, 15 per cent in computer and automation among other investments. The current NAV of the scheme is at Rs 17.59.

The debt plan, ITC Threadneedle High Interest Fund has given a return of 13 per cent since inception for the period ended March 31. The fund has around 90.8 per cent of the portfolio invested in AAA paper and 5.9 per cent in unrated paper among other investments. The NAV of the scheme as on June 25 is Rs 13.04.

Threadneedle was a 100 per cent subsidiary of BAT Financial Services which was taken over by Zurich Financial Services. As a result, Threadneedle was transferred to the Zurich group.