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31.03.10
KBC Asset Management and Union Bank of India officially open their joint venture Union KBC Asset Management
Brussels – Mumbai. Today, KBC Asset Management (KBC AM), the asset manager of the Belgian-headquartered KBC group, and Union Bank of India (Union Bank), a leading state bank in India, opened the offices of their joint venture asset management company in India, "Union KBC Asset Management". The premises were officially opened by Mr Danny De Raymaeker, Chief Operating Officer of KBC Group NV, and Mr M.V. Nair, Chairman & Managing Director of Union Bank of India, in the presence of His Royal Highness Filip, Prince of Belgium and His Excellency Jean M. Deboutte, Ambassador of Belgium.
In November 2008, KBC AM and Union Bank of India signed a shareholders agreement to set up an asset management joint venture in India in which KBC AM would hold a 49% stake. The company was incorporated in December 2009. Today, both parties are proud to officially open the new premises of this joint venture, located at the Piramal Towers in Mumbai.
Mr. Danny De Raymaeker commented on the joint venture as follows: "KBC is looking forward to working with a strong local partner like Union Bank. KBC Asset Management believes that its extensive knowledge of the fund market (especially its expertise in capital-protected investment funds for retail customers) and its coaching model (already proven successful not only in Belgium but also throughout Central and Eastern Europe) will make a valuable contribution to the joint venture. Combined with Union Bank’s knowledge of local investors and its extensive network of branches and service points, this will represent the perfect blend of ingredients to create a strong asset management company for retail, corporate and institutional investors in India".
Union Bank of India is a large public sector bank, with a network of 2 876 outlets across the country and 20 million customers in over 1 500 centres. At the end of December (9 months figures), the bank had a total business mix of 257 619 crore INR (approx. 41 billion EUR). Its total deposits amounted to 151 085 crore INR (approx. 24 billion EUR), while advances came to 106 534 crore INR (approx. 17 billion EUR).
KBC Asset Management’s strategy is focused not only on catering for KBC customers through the existing KBC distribution channels – mainly in KBC’s core markets (Belgium, Czech Republic, Hungary, Bulgaria, Poland and Slovakia) – but also on maintaining long-term growth options in the emerging markets of China and India.
KBC AM is a highly customer-centric asset manager. The intrinsic needs of the individual investor and an insight into the behaviour and preferences of investors (based on academic research in behavioural finance) are core elements of the business model. This strategy has produced a continuously increasing market share and leading position during the last 14 years. As per 31 December 2009, total assets under management amounted to 158.1 billion EUR.
KBC AM has developed and will continue to develop a well-balanced mix of asset management products and services that are "best-in-class" in transparency and in creating value for the customer. Moreover, the research company, Lipper FMI, recently listed KBC Asset Management as the largest European provider in socially responsible investment funds.
Mr M. V. Nair said: "The asset management industry in India is an example of the success of free competition in the country. From an industry that had one dominant player in the early 1990s, there are now over 30 active players, reflecting how the world of asset management in India has changed. In the past couple of years, the asset management industry has seen more changes, more growth and perhaps more new entrants than any other sector. Today, it is an industry of choice for customers and employees, with a range of products available, the presence of almost every large global player and a growing focus on investor education. It is also a highly dynamic industry, where significant changes take place constantly. Current penetration levels simply indicate the vast untapped potential."
Union KBC Asset Management plans to launch its first fund as soon as possible, provided the company receives final approval from the Indian regulator, SEBI.
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