The Lalbhais had decided to wind up at least two of Anagram Finance's subsidiaries - the Anagram Wellington AMC and Anagram Housing Finance subsequent to the the merger of Anagram Finance Ltd with Industrial Credit and Investment Corporation of India (ICICI). The maiden scheme from Anagram Wellington AMCs stable is a five-year close-ended income scheme with an asset size of around Rs 5 crore and more than 1,000 investors. The current net asset value (NAV) of the scheme is at Rs 11.15 and last year, the scheme had given a dividend of around 15 per cent. The scheme is open for repurchaseevery six months which is limited to 1,000 units subject to a maximum of 25 per cent of initial scheme corpus during that fortnight, according to the offer document of the scheme. The scheme comes up for redemption on March 30, 2002.

The portfolio of Anagram income scheme comprises 80 per cent investment in privately placed debentures, 19.47 per cent of the portfolio in non-convertible debentures and the remaining 1.10 per cent in secured premium notes (SPNs).

Following the merger of Anagram Finance with ICICI, the scheme is being managed by the people at Anagram Finance Ltd. All the fund managers as well as the marketing team at the mutual fund have already quit the outfit as the promoters had earlier made a decision to buy back the Wellington stake and then liquidate the mutual fund. Anagram Finance holds 74.9 per cent stake in the AMC with the balance 25.1 per cent held by the US-based Wellington Management Company.

The company is willing to operate the scheme for the stipulated period of five yearsif the scheme fails to generate enough response, for it to be sold, so that the investors are not left in a quandry. According to mutual fund experts, the scheme cannot be just wound up. This is because there are certain provisions under the Income-tax Act like under section 54EA/EB, in which if the investors want the capital gains benefit they have to stay invested in the scheme at least for three years. And for this period, the scheme cannot be wound up.

Wellington Management Company is one of Americas oldest independent investment management firms. It manages assets over $ 100 billion making it one of the largest investment managers in America.