StanChart sells Indian MF business to UBS for $120 million

Mumbai: Standard Chartered yesterday announced having sold its mutual funds business in India, with assets under management including debt and equity funds of $3.1 billion to, UBS Global Asset Management for $120 million dollars.

A statement quotes Standard Chartered group executive director Kai Nargolwala asd having said, "Mutual funds management is not our core business and the time has come for us to evaluate whether we are adding enough value to the business for customers."

StanChart has become the second bank this week to exit its mutual funds business in India, after Bank of India (See: BoI exits MF business, certificates cancelled)

StanChart says it has sold its entire stake in Standard Chartered Trustee Company Pvt Ltd and Standard Chartered Asset Management Company Pvt Ltd to UBS and expects the transaction to be closed by midyear, following regulatory approvals.

The transaction however, does not include Standard Chartered's mutual fund distribution business, which the bank would continue to pursue, the release added.

Standard Chartered Asset Management Company is the investment manager and Standard Chartered Trustee Company is the trustee respectively of the mutual fund.