State-run Union Bank of India today said Japanese financial services major Dai-ichi Life has bought 39.62 per cent stake in Union Asset Management Company, for an undisclosed amount, through investment in compulsorily convertible preference shares. The mutual fund company would now be co-sponsored by Union Bank of India and Dai-ichi Life. “This partnership would bring synergy for strong capital base, future business growth and efficient corporate governance,” the bank said in a statement today.
With this investment, Dai-ichi Life would appoint one nominee director on the board of Union AMC. There will be no change in the key personnel or the existing fund management team, the bank said. There will also be no change in the name of Union AMC, Union Mutual Fund or of the schemes of Union Mutual Fund, it added.
Union AMC, which is operating in the country since 2011, had a total average assets under management (AAUM) of Rs 4,163 crore as of April. Union Bank already has a life insurance joint venture with Dai-ichi Life and Bank of India called Star Union Dai-ichi Life Insurance Company, in which the bank holds 26 per cent, Dai-ichi Life 44 per cent, while Bank of India owns the remaining 30 per cent.