Canbank MF, Robeco Join Hands | Value Research Netherlands-based Robeco Groep will acquire 49 per cent stake in Canara Bank's asset management arm. The new company will be named Canara Robeco
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Canbank MF, Robeco Join Hands

Netherlands-based Robeco Groep will acquire 49 per cent stake in Canara Bank's asset management arm. The new company will be named Canara Robeco

Canara Bank has joined hands with Robeco Groep, a Netherlands based asset management company, to pursue asset management business in India. Robeco is an international asset manager with operations in nine countries and asset under management of USD 185 billion.

Under the arrangement, Robeco will acquire 49 per cent stake in Canara Bank's existing asset management arm, Canbank Investment Management Services Ltd (CIMS), and the company will be named Canara Robeco.

While the joint venture will provide the Dutch company an entry to the domestic asset management business, Canbank Mutual Fund, on the other hand, will hope for a revival in its fortunes.

It was the first AMC to be launched in 1987 after the business of asset management was thrown open to public sector banks and insurance companies. And it also met with success in the initial years after its launch, as some of its earlier funds like Can 80CC (89), Canshare earned good returns for their investors. As a result, it assets under management crossed Rs 4,500 crore as early as1992.

But subsequently, its fortunes took a turn for worse. The AMC was not able to keep pace with the ones that came into existence much later, both in terms of performance as well as assets under management. As a result, its share of the domestic fund management business declined over the years. By the end of February 2007, it had assets worth Rs 2,200 crore, ranking it at 24th place out of 30 AMCs that currently operate in the country.

But with this joint venture, the fund house hopes to regain its lost glory.


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