Question: Recently, who announced takeover of global giant Goldman Sachs’ mutual fund business in India?
(a) Future Capital Ltd.
(b) Birla Sun Life Ltd.
(c) Reliance Capital Asset Management
- On 21 October 2015 Reliance Capital Asset Management (RCAM) announced takeover of global giant Goldman Sachs mutual fund business in India.
- RCAM paid a total sum of 243 crore rupees in cash to acquire it.
- Under this deal, RCAM will acquire all 12 onshore mutual fund schemes of Goldman Sachs Asset Management (GSAM) India with total asset under management of 7132 crore rupees.
- This acquisition will make Reliance mutual funds the exclusive fund manager for the government’s ambitious Central Public Sector Enterprises (CPSE) Exchange Traded Fund.
- It should be noted that, in year 2014 Goldman Sachs was given the mandate to manage Central Public Sector Enterprises (CPSE) Exchange Traded Fund.
- Through which the government has so far raised Rs. 4,000 crore by selling part of its stake in ten central PSUs as part of its disinvestment programme.
- This deal will make yet another exit by a foreign player from theIndian mutual fund industry, consolidating the position of RCAM.
- RCAM’s is subsidiary of Reliance Capital which in turn is financial services arm of business conglomerate Reliance Group. It is also present in insurance, brokerage and wealth management among other areas.
- This company manages business by the name of Reliance mutual fund in mutual fund management business having average management assets 1, 52,919 crore (by the second quarter 2015).
- Goldman Sachs Asset Management is the asset management arm of the Investment Management Division of The Goldman Sachs Group Inc. which oversees $1.19 trillion in assets under supervision
- The acquisition is expected to be completed by the end of this fiscal year, which is dependent on the necessary regulatory approval.