Reprive to Aberdeen likely to improve mood of money managers: A look at its India play

The temporary reprieve in the MAT issue to Aberdeen Asset Management, Europe's largest fund house, should improve the mood of money managers in Singapore and Hong Kong. Hundreds of fund houses operating in and outside India are tracking the case.

If one strikes off the foreign inflows in the Sun Pharma block deal, FIIs have been net sellers in the last 11 days with a sell-off worth nearly $1.73 billion (Rs 11,000 crore). FIIs own nearly 51.2% of the total free-fl oat shares listed on the BSE-200 index.

According to numbers compiled by ETIG, Aberdeen Asset Management currently has investments of nearly Rs 28,129 crore in Indian equities, about 1.48% of the total assets under custody of FIIs in India. The fund house holds stakes in HDFC, Hero MotoCorp, ICICI Bank, and UltraTech Cement, among others.


Aberdeen's decision to move the court comes at a time when it's battling redemption pressure from global investors. With many investors fl eeing the emerging markets, Aberdeen Asset Management too has pruned its holdings in Indian companies in the past one year. It lowered stake in HDFC, Hero MotoCorp, Nestle India, Asian Paints and ACC.