Mumbai: Continuing with the trend of consolidation in the mutual fund (MF) industry, Birla Sun Life Asset Management Company Ltd (Birla Mutual Fund) has acquired the rights to manage Indian MF assets of Alliance Capital Mutual Fund, subject to regulatory approvals.

Birla Sun Life MF did not disclose the cost of acquiring the rights to manage MF assets of Alliance Capital.

The asset management company has signed a pact with Alliance Capital Asset Management India Private Ltd to acquire rights to management of Alliance MF schemes, Birla MF said in a release in Mumbai today (Oct 18, 2004).

This transaction would consolidate the Birla MFs position in the Indian MF industry by increasing the assets under management to Rs 10,933 crore as on September 30, 2004 and broaden the investor base, the release said.

Alliance Capital's Indian MF assets have an excellent performance track record and are a good fit with Birla Sunlife MF's existing business, Birla MF chief executive S V Prasad said.

The AUM of Alliance Capital as on September 30, 2004 stood at Rs 1,951 crore, of which 33 per cent was invested in equity instruments, it said.

Recent cases of consolidation in the Indian Mutual Fund industry include UTI MF's acquisitions of schemes run by IL&FS MF and Principal MF's acquisitions of Sun & FC's schemes.

Securities and Exchange Board of India had recently slapped a fine of over Rs 15 crore on Alliance Capital Asset Management (India) Pvt Ltd on charges of insider trading and violation of regulations.