BoB, Pioneer in JV for MF sector
Italian company Pioneer Investments and Bank of Baroda has formed a joint venture company called Baroda Pioneer Asset Management Company, with the former picking up 51 per cent stake in the mutual fund venture for an undisclosed sum.
By PTI |
MUMBAI: Italian company Pioneer Investments and public sector Bank of Baroda has formed a joint venture company called Baroda Pioneer Asset Management Company, with the former picking up 51 per cent stake in the mutual fund venture for an undisclosed sum.
"We expect to launch the operations by early next year and by Q1 of next year we should witness improvement in our fee-based income," BoB Chairman and Managing Director Anil K Khandelwal told reporters here.
On giving majority stake to Pioneer, Khandelwal said the Italian firm brings to the joint venture domain expertise which is crucial for business development.
"They have the domain knowledge while we have the wide network -- 2,700 branches and 28 million customers...We see ourselves emerging as a major player in mutual fund sector in the next 3-4 years."
Pioneer Investments Global CEO Dario Frigerio said the company was on its way to have a global footprint in AMC business.
Developing a significant presence in India and Russia was an important strategic direction, he added.
Khandelwal said mutual funds will pick up in the coming years in Tier II and Tier III cities where the lender has a wide presence.
The India AMC will initially offer Indian equity, fixed income and balanced funds and later bring international investment opportunities to the domestic market.
"We expect to launch the operations by early next year and by Q1 of next year we should witness improvement in our fee-based income," BoB Chairman and Managing Director Anil K Khandelwal told reporters here.
On giving majority stake to Pioneer, Khandelwal said the Italian firm brings to the joint venture domain expertise which is crucial for business development.
"They have the domain knowledge while we have the wide network -- 2,700 branches and 28 million customers...We see ourselves emerging as a major player in mutual fund sector in the next 3-4 years."
Pioneer Investments Global CEO Dario Frigerio said the company was on its way to have a global footprint in AMC business.
Developing a significant presence in India and Russia was an important strategic direction, he added.
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Khandelwal said mutual funds will pick up in the coming years in Tier II and Tier III cities where the lender has a wide presence.
The India AMC will initially offer Indian equity, fixed income and balanced funds and later bring international investment opportunities to the domestic market.
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