Bank of America’s planned $50 billion acquisition of Merrill Lynch has everyone across the globe talking.
According to a Reuters report, this acquisition would combine the largest U.S. consumer bank with one of the largest U.S. investment banks and the leading retail brokerage force. The result would be the creation of the world’s second largest bank by market value, after Industrial & Commercial Bank of China.
But investors in India are worried about the future of their AMC. The change has a bearing on the ownership of the asset management company. But investors in the DSP Merrill Lynch fund should not worry till their money is managed efficiently by the same set of people. The regulatory framework for mutual funds in India ensures safety of your investment managed by any asset management company.
In 2006, the asset management business of Merrill Lynch (Merrill Lynch Investment Managers) was combined with BlackRock. BlackRock is one of the largest listed asset management companies in the world managing assets in excess of $1.4 trillion.
In line with the realignment of Merrill Lynch's asset management business globally, the 40% stake held by DSP Merrill Lynch Limited in DSP Merrill Lynch Fund Managers Limited, would be transferred to BlackRock. The balance 60% will continue to be held by the DSP Group, through its investment companies.
The Board of Directors of DSP Merrill Lynch Fund Managers Limited has approved this transfer and only regulatory approvals are being awaited. The AMC anticipates the regulatory process to be completed shortly. Consequent to the transfer, DSP Merrill Lynch Fund Managers Limited will be renamed "DSP BlackRock Investment Managers Limited" while DSP Merrill Lynch Mutual Fund will be renamed "DSP BlackRock Mutual Fund ".