UTI Asset Management Company Ltd (UTI AMC) today announced that T. Rowe Price Group Inc (TRP Group), a global investment management organization with $366.2 billion in assets as of September 30, 2009, through its wholly-owned subsidiary T. Rowe Price Global Investment Services Ltd (TRP) has acquired a 26 per cent stake in UTI AMC and UTI Trustee Company Pvt. Ltd.
This was made possible after 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. – shed a 6.5 per cent stake in favour of TRP.
The four banks have been left with a 18.5 per cent stake each in UTI AMC.
“This is a major milestone for UTI AMC and will help accelerate growth. 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,” said U.K. Sinha, Chairman and Managing Director, UTI AMC.
UTI is the oldest and one of the largest mutual funds in India with average assets under management (AAUM) aggregating to Rs 78,203.44 crore ($16.96 bn) as of December, 2009. It is also the most-popular as it is the first AMC to have crossed the 1 crore (10 million) investor accounts mark.
“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,” said James A.C. Kennedy, Chief Executive Officer and President of T. Rowe Price Group.
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