Transfering Assets-Yet again is it fair?

Company	PRITISH NANDY COMMUNICATIONS LTD.
NSE Symbol	PNC
Announcement	Pritish Nandy Communications Ltd. has informed the Exchange that the Company has received a letter from Reliance Capital Asset Management Limited, a body corporate that pursuant to an inter-scheme transfer on June 05, 2006 from Reliance Growth Fund holding 9,00,000 Shares of the Company constituting 8.5985% of the paid up capital of the Company to Reliance Media & Entertainment Fund, there has been a change in shareholder, but the percentage holding by Reliance Mutual Fund i.e. 8.5985% remains unchanged.

The above mentioned was in the communications sections today. I found this piece interesting. It is a normal practice for mutual funds to shift assets from one scheme to another, so ideally this should not have created any panic to the investor. However, some interesting facts :-

• Sales of this company is extremely volatile. It was down from around 40 crores to 30 crores to back to 34-35 crores in the past three years.
• The share is trading at close to a year low. Has participated in the downside quite well
• Reliance Growth Fund is a flagship fund of the company and there is always pressure to perform constantly. The Media fund is less focussed than the hugely acclaimed Growth fund, creating pressure to perform.
• The Growth fund is completely transferring all its assets to the media fund. Total assets of the scheme : 2800 crores. Transferred money of this company : 3 crores. Not much to show any impact.
• Volumes are low in the market and this company is facing resistance at higher levels with huge 'sell' orders. Hence any share sold is further going to dampen sentiments on the stock
  

Yet the fund is doing it. Now what could be the reason? I just was thinking if this is the way wherein the fund is revamping its portfolio by transferring assets to other funds that are not that noticeable and can always be blaimed on markets of these companies specifically (one can say media companies, in general, have not performed) Just a wild guess.... but then I do not know. If it is so, then it is a disappointment from the fund house as the company is passing the buck of losers to these funds wherein the investors are forced to take the loss. Though the existing shareholders have not gained anything from this transaction, it gives the fund, the much needed liquidity to invest in stocks that have better potential to grow. It is similar to accepting the losses and taking fresh positions, but only this time it is at the cost of the other fund, infact their own fund.

All this could just be an imagination from my side, cynical of such a transfer. As mentioned previously, this happens most of the time in mutual funds. I just took this case to mention how this is applicable to save one's face in the worst of times.