Union Bank of India has tied up with Belgium based KBC group post SEBI approval to start this mutual fund joint venture. KBC, which is making its entry into the domestic market through this JV, is one of the largest MF players in Belgium. The company has assets under management worth Euro 174 billion as on 2007.
Union Bank of India has received approval from the SEBI to start its joint venture Mutual fund Company with Belgium-based KBC Group. KBC, which is making its entry into the domestic market through this JV, is one of the largest MF players in Belgium. The company has assets under management worth Euro 174 billion as on 2007.
“We have received in-principle nod from SEBI to set up the MF company. The process to select a CEO and designing the product-portfolio is currently underway,” Union Bank’s General Manager, Transaction Banking and Third Party product Department, Pravin K Bansal said. Union bank will have a 51 per cent stake in the joint venture, with an investment of Rs 48.07 crores, while KBC will hold 49 per cent stakes with a contribution of Rs 46.93-crore, he said.
The Joint Venture, to be called Union KBC Asset Management Company, expects to roll out its first MF product in the market in February, 2010. Union bank has decided to change at least 200 branches as dedicated centres to sell the mutual fund along with the existing branches of KBC worldwide.