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Friday, April 9, 2010

Union Bank Of India Enters Mutual Fund

In a latest development,Union Bank of India has teamed up with KBC Asset Management based in Belgium to form a new asset management entity. The new venture is called Union KBC Asset Management which was inaugurated on Friday in Mumbai by Prince Philippe of Belgium. It will start mutual fund operations in the country soon, as the bank has revealed. The joint venture was signed two years back and as per the agreement, KBC has 49 percent stake in it while Union Bank of India has 51 percent stake. The entity is now awaiting the final approval from SEBI for making the investments. The news has been affirmed by the Managing Director and chairman of the bank Mr M.V. Nair.

Union Bank of India is expecting that SEBI will give it the required nod in a few months. The first fund of the newly formed entity will be offered in the last part of this year, the Chief Executive Officer of the JV, Mr G. Pradeepkumar has said. Recruitment for the fund management team will start in the next few weeks, as it is being planned. The JV will churn out open-ended equity funds, capital-protected investment funds and other products targeted at the retail consumers.

The Mutual fund market in India has witnessed huge growth in the recent years and Union Bank of India wants to utilize the opportunity. In the initial stage, the mutual fund operations will rely on the existing branches of the bank, as it has been learnt. It may also tie up with other banks later.
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