KBC Asset Management, the globally-active asset manager of Belgium’s KBC group, and Union Bank of India (UBI), a nationalised bank in India, have announced a strategic alliance to form a joint venture asset management company in India, through which the Belgian firm will be able to sell capital-protected funds. KBC Asset Management is already active in Asian countries, including Japan, Hong Kong, South-Korea, Taiwan and China.The Belgian asset manager specialises in retail capital-protected funds. By year-end 2007 it had approximately €174bn under management. UBI, for its part, has 2,518 branches and points of services in India serving 20 million clients. The bank also brings knowledge of local investors. “This is the perfect blend of ingredients needed to create a top asset management company for retail and corporate investors in India,” said a press release from the two companies.
Danny De Raymaeker, a member of the executive committee at KBC Group said, "This joint venture positions both partners on an effective platform for product development, aimed at the profile of the local client base and at organising the transfer of product knowledge to UBI's branches, which will ensure that the sales force receives the appropriate investment products in good time."
The joint venture marks KBC Asset Management’s first step into the Indian market, where it aims to set itself apart and create a dominant position by offering Indian investors the latest international products, particularly capital-protected funds and structured products, and a full range of asset management products.
“Over the past few years, the Indian economy has grown at a tremendous rate, resulting in rising stock exchange indices and simultaneously creating an opportunity for wealth creation,” clarified M.V. Nair, Chairman & Managing Director at Union Bank of India.
