SBI Mutual Fund proposes to acquire schemes of Daiwa Mutual Fund

SBI Mutual Fund (" SBI MF") has agreed to acquire all of the existing India domiciled fund schemes of Daiwa Mutual Fund ("Daiwa MF").

State Bank of India, SBI Mutual Fund Trustee Company Private Limited and SBI Funds Management Private Limited (sponsor, trustee and investment manager of SBI MF respectively) have reached an agreement with Daiwa Asset Management Co. Ltd., Daiwa Trustee Company (India) Private Limited and Daiwa Asset Management (India) Private Limited ("Daiwa AMC") (sponsor, trustee and investment manager of Daiwa MF respectively), to take over the sponsorship, trusteeship, management and administration of all the schemes of Daiwa MF.

The transaction is subject to receipt of regulatory approvals. Post completion of the transaction, all existing schemes of Daiwa MF will become schemes of SBI MF and all existing unit holders of schemes of Daiwa MF will become unit holders of SBI Mutual Fund.

This acquisition will help SBI MF acquire a unique client base which will increase its penetration in retail and HNI space. Daiwa AMC has built robust relationships with its distributors and SBI MF intends to leverage on those relationships to acquire new retail customers. This will benefit not only the unit holders of schemes of SBI MF but also the unit holders of schemes of Daiwa MF.

It will expose the Schemes to the investment and risk management processes as well as the best practices of the SBI group. SBI Funds Management Pvt. Ltd. has experienced research and fund management teams, both in the equity and fixed income segments, with capability of managing large fund corpus.