Sundaram AMC announces purchase of Principal AMC in India

Sundaram Asset Management Company (Sundaram), a 100 per cent subsidiary of Sundaram Finance, with assets under management of about Rs 40,000 crore, has announced the purchase of the asset management businesses of Principal Asset Management.

Sundaram will acquire the schemes managed by Principal Asset Management along with 100 per cent of the share capital of Principal Asset Management, Principal Trustee Company, and Principal Retirement Advisors. The transaction is subject to the receipt of necessary regulatory approvals and SEBI prescribed processes.

Sundaram has over Rs 40,000 crore in assets under management, the majority of which is in equity-oriented schemes. Principal Asset Management has assets under management of Rs 7,447 crore as of December 31, 2020, with about 90 per cent of this in equity-oriented schemes. This acquisition will help Sundaram to jump a couple of notches above in pecking order in terms of AUM within the domestic mutual fund industry.