KBC Asset Management sells stake in Union KBC Asset Management

BANKING/FINANCE

by Shrutee K/DNS

Union Bank of India and KBC Asset Management NV have reached agreement on the sale of KBC Asset Management’s 49% stake in Union KBC Asset Management Co. Pvt. Ltd., the joint venture established between both companies in 2009, and Union KBC Trustee Company Pvt. Ltd. to Union Bank of India. The transaction, which is subject to regulatory approval, will have no impact on the joint venture’s client positions and product portfolio.

Mr. Arun Tiwari, Chairman & Managing Director of Union Bank of India   told that Union Bank of India has always stated its firm belief in the potential of the Indian market for investment funds. This transaction reaffirms the Union Bank’s vision to provide all financial solutions under one umbrella which apart from banking products and services also includes Life Insurance products through its Joint Venture Star Union Dai-ichi Life Insurance Co Ltd. and Mutual Fund products through Union KBC AMC to its customers. He reiterated the commitment of Union Bank of India towards offering portfolio of services to the investors under its own Brand.

Mr. Johan Thijs, CEO KBC Group, commented: ‘This agreement fits in with KBC Asset Management’s strategic focus on KBC Group’s core markets and activities. I would like to thank our Indian clients, shareholders, staff and all other stakeholders for the trust they have placed in KBC. Meanwhile, the management and staff of the Asset Management Company will continue to actively perform their functions and develop their business thus ensuring that clients continue to receive the same high level of service and state-of-the-art investment products they have come to expect.

About Union Bank of India:

Union Bank of India is one of the largest and leading public sector banks in India.  Union Bank is mainly active in domestic market and has international presence in select markets through branches and representatives offices. As on June 30, 2015, the Bank had over 50 million customers, 4082 branches across India, 3 international branches and 5 representative offices with global business of Rs. 5.82 trillion. 

About KBC Asset Management NV:

KBC Asset Management is a 100% subsidiary of KBC Group NV and a leading Belgian asset manager with more than 60 years of market experience. It is mainly active in KBC’s home markets of Belgium and Central and Eastern Europe, and is also present in Ireland and Luxemburg. KBC Asset Management’s entities are active in their local market and deliver research and management services for local investment products. On 30 June 2015, KBC Asset Management had over 200 billion euros in assets under management and managed 1 361 investment funds for a broad range of clients.

About Union KBC Asset Management Company Private Limited:

Union KBC has been managing the assets of Union KBC Mutual Fund since 2011. For the quarter ended on 30th September 2015, it had average Asset under Management of Rs. 2672.22 cr. It offers a wide range of products for retail and institutional clients in India under different asset classes such as equity, fixed income and gold.