This AMC has finally woken up to the fact that it needs to spruce up its act. This year, BoB Mutual Fund decided to no longer go for it alone.
BoB AMC was a wholly owned subsidiary of Bank of Baroda (BoB) which just failed to take-off. Being a mediocre player, its AUM has dropped over the years to place it as the lowest amongst the AMCs.
This fund house fund tends to work in fits and starts. For example, there were a few launches at fixed times periods - February and March 2002, September 2003 August 2004 - with nothing during the rest of the year. The last two launches were in March 2005 (Baroda Pioneer Diversified) and March 2006 (Baroda Pioneer Global).
Baroda Pioneer Balance showed promise in its early days but is an erratic player. It was the worst performer in 2006 but was a top quartile performer in 2007. Neither is Baroda Pioneer Growth (4 stars) consistent. Baroda Pioneer Liquid was a good fund but at one time had a high expense ratio of 1.73. It has dropped to 0.46, along with the performance.
This year, Pioneer Global Asset Management (Pioneer Investments), acquired a 51 per cent stake in the AMC resulting in the name change. BoB is one of the smarter public sector banks with a distinct international reach. Its branches across the country and abroad will help it serve Indians domestically and NRIs. But where this AMC does need to do a total turnaround is in the performance of its equity funds, where 86 per cent of its assets lie.
This article was originally published on December 31, 2008.
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