Tata MF in talks with Vanguard, Allianz for stake sale: Report

A fortnight after N Chandrasekaran took over as Chairman, Tata Sons is planning to globalise its mutual funds business by getting a foreign strategic partner which will hold a stake of at least 26 percent, according to a report in Mint.Two people familliar with the plan were quoted as saying that Tata Asset Management was in talks to sell 26-49 percent of its stake.They said that discussions had been held with leading global fund managers including the US-headquartered Vanguard Group and Germany's Allianz SE.Nothing has been finalised yet.As of now, Tata Sons has a 67.91 percent stake in Tata Asset Management, with the remaining 22.09 percent held by Tata Investment. 

Hormuz Balsara, Chief Operating Officer of Tata Asset Management, said that the synergy will be strong should a global player sell its products through the firm, adding that Tata will always retain a majority stake.Balsara confirmed the talks with Vanguard and Allianz and said that interactions had also taken place with Japanese and Belgian asset management firms.

Vanguard and Allianz declined to comment.In terms of assets, Tata Asset Management currently ranks 12th in the Rs 17 trillion domestic mutual fund industry, according to the Association of Mutual Funds in India. It has lagged behind industry growth in the past few years.

The company's profits have also fallen. According to Value Research, Tata MF’s net profit has fallen from Rs31.36 crore for the year ended March 21, 2012 to Rs 5.25 crore in the year ended March 31, 2016, the latest period for which data is available.