UTI Asset Management Company Ltd (UTI AMC) today announced that T Rowe Price Group Inc (TRP Group) through its wholly owned subsidiary T Rowe Price Global Investment Services Ltd. (TRP) has acquired a 26% stake in UTI Asset Management Company Limited (UTI AMC) and UTI Trustee Company Pvt. Ltd. Directors representing TRP have been inducted on UTI AMC Board.
TRP has acquired 6.5% stake from each of the existing four sponsors of UTI AMC — State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India. Consequent to this stake sale, the existing sponsors will now retain a stake of 18.5% each in UTI AMC.
UTI is the oldest and one of the largest mutual fund in India with Average Assets Under Management aggregating to Rs. 78,203.44 crore (Rs. 782.03 billion) (USD 16.96 billion) in December 2009. UTI is the first AMC in Indian Mutual Fund industry to have crossed 1crore (10 million) investor accounts.
On the occasion, Mr. U K Sinha, Chairman and Managing Director, UTI Asset Management Company Ltd. said, “This is a major milestone for UTI AMC and will help accelerate our growth. We look forward to a long and fruitful association with T. Rowe Price. This collaboration between two of the leading players in the Asset Management industry will help leverage UTI AMC’s in-depth knowledge of Indian markets with the global best practices, systems and processes of T. Rowe Price.”
“T. Rowe Price has a strong technology and research team globally which will be beneficial for us. We also expect significant synergies in fund management, research, product development and technology with T. Rowe Price and look forward to offering sophisticated products and services to our investors. T. Rowe Price will also help us in managing our offshore funds. I thank the current Shareholders for all their support” Mr. Sinha added.
Commenting on the relationship, Mr. James A.C. Kennedy, Chief Executive Officer and President of T. Rowe Price Group, said: “We are confident that UTI and T. Rowe Price will be a powerful combination. Our respective management teams, cultures, and values fit very well together, with both firms having an unwavering commitment to putting the interests of clients first. UTI has a stellar reputation and a very strong brand and distribution network, and we look forward to collaborating with them for many years to come to help investors in India and around the world realize their financial goals.”
About UTI Asset Management Company Ltd.
UTI AMC is the Investment Manager of UTI Mutual Fund, a SEBI registered mutual fund whose Sponsors are State Bank of India, Punjab National Bank, Bank of Baroda and Life Insurance Corporation of India. UTI Mutual Fund has assets under management (average) of Rs. 78203.44 crore (Rs. 782 billion) (USD 16.96 billion) and investor accounts of 1crore (10 million) under its 74 domestic schemes (as of December 31, 2009). The total Assets under Management of UTI Asset Management Co. including Domestic Funds, Portfolio Management Services, Venture Funds and Offshore Funds is Rs. 82065 crores (Rs. 820.65 billion) (USD 17.8 billion)
About T Rowe Price
Founded in 1937, Baltimore-based T. Rowe Price Group, Inc. (www.troweprice.com) is a global investment management organization with $366.2 billion in assets as of September 30, 2009. The organization provides a broad array of mutual funds, sub-advisory services, and separate account management for financial intermediaries, individual and institutional investors, and retirement plans. The company also offers sophisticated investment planning and guidance tools. T. Rowe Price's disciplined, risk-aware investment approach focuses on diversification, style consistency, and fundamental research.
