Parties will invest $67mln for new mutual fund business targeted to launch in Q4 2010.
Union Bank of India and Belgium-based KBC Asset Management will jointly invest € 50 million (approx Rs 300 crore) in a new asset management company, Union KBC Asset Management. Union Bank holds 51 per cent stake and KBC 49 per cent in the JV, which was inked in November 2008.
The bank has received approval in principle for the asset management company. Once final approval is received from SEBI, the investments will be made, says Mr M.V. Nair, Chairman and Managing Director, Union Bank.
The bank expects to get the final approval in two to three months' time and to launch its first fund in the last quarter of this calendar year, says Mr G. Pradeepkumar, the JV's Chief Executive Officer. Prior to this, Mr Pradeepkumar worked with IDFC Mutual Fund. “Initially, the fund house plans to launch a liquid fund, followed by equity schemes. Maybe from the second year, we will look at offering offshore funds as well. In the next couple of weeks, we will start recruiting for our fund management team,” he says.
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