In a move to pacify its worried clients, DSP Merrill Lynch today issued an official communication to mutual fund distributors, declaring that the company would now be renamed as DSP BlackRock Mutual Fund.
This is in line with the realignment of Merrill Lynch's asset management business in 2006 when it was combined with BlackRock (with assets of $1.4 trillion).
With the global rearrangement of Merrill Lynch's asset management business, the 40 per cent stake held by DSP Merrill Lynch Limited in DSP Merrill Lynch Fund Managers Limited will be transferred to BlackRock. The balance 60 per cent will be held by the DSP Group, through its investment companies.
The board of directors of DSP Merrill Lynch Fund Managers Limited has approved this transfer. However, it is awaiting clearance from the Securities and Exchange Board of India.
Consequent to the transfer, DSP Merrill Lynch Fund Managers Limited will be renamed as "DSP BlackRock Investment Managers Limited", while DSP Merrill Lynch Mutual Fund will be rechristened as "DSP BlackRock Mutual Fund".