Mumbai, Oct 5 (UNI) In a move to strengthen its asset management segment, Bank of Baroda (BoB) has entered into a strategic partnership with Italy-based Pioneer Investments to launch a joint venture company ''Baroda Pioneer Asset Management Company Limited''.
The bank here today signed an agreement with Pioneer Investments, according to which the latter will hold a majority stake of 51 per cent along with management control in the existing BoB local asset management company, having a net worth of Rs 20 crore and capital reserve of Rs 7 crore.
Commenting on the agreement, bank chairman and managing director Dr Anil K Khandelwal said, ''This is a step forward to emerge as an universal financial service organisation and offer our customers a full range of financial services.'' The joint venture will launch new financial products in the first quarter of 2008, which will include initial product offering of Indian equity, fixed income and balance funds.
The new entity will also focus on bringing international investment opportunities to the Indian market and develop third party distribution through existing relationships with global private banks and Indian firms.
The global asset management service has a 50 per cent share in the financial service market and Pioneer Investment has a share of 3 per cent. Pioneer Investment global CEO Dario Frigerio said, ''With this joint venture, we will make efforts to have at least 10 per cent share in the global asset management market.'' UNI