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Principal acquires SUN F&C Mutual

The mutual fund industry's wave of acquisitions continues as the Rs 2,000 crore Principal Financial (formerly IDBI-Principal) acquires the Rs 500 crore Sun F&C, forming the 14th largest AMC in India.

The Principal Mutual Fund has reached an agreement with SUN F & C Mutual Fund to take over and manage the schemes of SUN F&C Mutual Fund in India. With this, Principal Mutual Fund, a mid-sized fund family will acquire the management of all funds managed by Sun F&C. This agreement entails a change in management, trusteeship and administration of SUN F&C's schemes. On June 30, 2003, this proposal has been filed with SEBI for their approval.

With this takeover Principal Mutual Fund will gain about Rs. 500 crore of assets currently being managed by SUN F&C and a retail client base of over 70,000 investors across the country. This will be in addition to Principal Mutual Fund's existing investor base of about 160,000 investors with assets under management of about Rs. 2,000 crore.