Japan's Dai-ichi Life is new partner of Union Mutual Fund

After nearly two years of search, Union Mutual Fund (formerly Union KBC) has found a new partner in Japan's Dai-ichi Life Holdings.

Union MF's parent Union Bank of India has entered into investment and subscription agreements with the global life insurer for their investments of Rs 133.43 crore in its subsidiary fund house. This investment will be through compulsorily convertible preference shares.

In a statement, Union Bank, said, "Considering the present equity investment of Union Bank of India in Union Asset Management Company, the investment of Dai-ichi Life would be 39.62 per cent on fully diluted basis post conversion to equity." The bank has a relationship with Dai-ichi Life for around 8 years.

Union Bank had forayed into mutual fund business through a partnership with Belgium's KBC in December 2009. The JV was called off in 2015.

To ensure continuity of mutual fund business, Union Bank had to acquire 49 per cent from KBC and turning the fund house into a wholly owned subsidiary of the bank.

Atul Kumar Goel, executive director of Union Bank, said, "Dai-ichi Life will offer their expertise and best business practices in asset management business for the mutual benefit. This extended relationship of Dai-ichi LIfe in Union AMC will definitely bring synergy for strong capital base, future business growth and efficient corporate governance."

G Pradeepkumar is the chief executive officer of Union Mutual Fund. The fund house currently has eight schemes with a total average asset under management (AUM) of Rs 3,811 during the quarter ended September, 2017.