Baroda Mutual Fund has joined hands with BNP Paribas MF, the asset management arm of the leading banking group in Europe, BNP Paribas, to form Baroda BNP Paribas Mutual Fund.
The new entity will leverage on the strengths that each partner has developed to offer products specifically designed for retail and institutional clients in India.
Bank of Baroda will have a 50.1 per cent stake in the AMC, while BNP Paribas Asset Management will hold the remaining stake.
Suresh Soni has been appointed CEO of the merged entity.
To offer 28 schemes
The newly formed asset management company will offer 28 schemes across equity, hybrid, debt and overseas fund-of-fund categories. With touch points in 90 towns and cities across India, it is expected to serve over one million investor folios and over 10,000 distributors.
The joint venture AMC will also provide offshore advisory services and has combined assets under management and advisory of ₹22,522 crore as on March 14.
Sanjiv Chadha, Managing Director & CEO, Bank of Baroda, said the JV will leverage global experience, expertise and processes to build a stronger asset management platform offering high-quality investment solutions at scale.
David Vaillant, Global Head of Finance, Strategy & Participations, BNP Paribas Asset Management, said the strategic partnership will enable expansion in terms of scale and client outreach and grow distribution network.
The joint venture aims to build on the strengths of both partners to create operational efficiencies and offer a wider range of investment solutions to investors.
Soni said the joint venture combines Bank of Baroda's local reach and in-depth knowledge of the Indian market with the global expertise of BNP Paribas Asset Management.