OUR MARKET BUREAUMUMBAI, Nov 27: The 20th Century Asset Management Corporation Ltd (TCAMC), the investment manager for 20th Century Mutual Fund, is all set to witness a change in its controlling interest. Zurich Finance (Mauritius) Ltd, a subsidiary of Zurich Insurance, is proposing to purchase a 30.68 per cent stake (15,34,000 shares) from 20th Century Finance Corporation (TCFC) and its affiliates.

TCAMC is a joint venture between 20th Century Finance Corporation, Zurich Insurance Company and the International Finance Corporation, Washington. TCFC currently holds 56.68 per cent, IFC holds 10 per cent and Zurich Insurance Company holds 33.32 per cent. It may be recalled that Zurich Insurance Company acquired 33.32 per cent stake in TCAMC, by virtue of acquisition of Kemper Corporation (who originally held this stake) by way of an overseas transaction in January 1996.

Thus, after the proposed transaction, the holding of Zurich Insurance group will increase to 64 per cent of the paid-up equity capital of the company. TCFC's holding will come down to 26 per cent as a result. While this will result in a change in the controlling interest in TCAMC, TCFC will continue to be the sponsor of the mutual fund and Zurich will join as a co-sponsor.

At present, the equity capital of TCAMC is Rs 5 crore. However, it is proposed to further enhance the capital to Rs 25 crore in order to strengthen AMC's capital base.

In keeping with the SEBI mutual fund regulations 1996, the fund has written to its over 2 lakh unitholders seeking their approval for a change in the controlling interest. V R Deshpande, executive officer of the AMC, says in his letter to unitholders that the fund will be able to tap overseas equity markets with the help of Zurich's global investment skills. Zurich Insurance group has over $300 million in assets under management.

As a result of the change, the composition of the board of directors of the AMC will change to four independent directors (four from TCFC and three from Zurich). Currently, the AMC has four schemes under its management -- Centurion Quantum Growth Fund'93, Centurion Prudence'93, Centurion Open End Fund and Centurion Tax Saver'96.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.