Union AMC Eyes Growth from B30 cities Aims to Double AUM to Rs 10000 Crores

Union Amc
Union Amc

Union AMC today announced its growth strategy aimed at doubling its AUM (Assets under management) to 10,000 crores with growth coming in from B30 cities. The leading NBFC company issued a press release.

Union AMC in the past few years, has undergone significant changes in various facets of its operations as well as in ownership is ready to take off on a high growth trajectory and appear in its new avatar or version 2.0..  The firm is co-sponsored by Union Bank, a leading Indian PSU bank and a Dai-chi Life Holdings, Inc a prominent Japanese foreign financial behemoth,

Mr. G. Pradeepkumar, Chief Executive Officer (CEO), Union Asset Management Company Private Limited, said “The AMC has implemented a more robust investment process resulting in improved performance of various schemes of Union AMC.  The company also manages a portfolio for Daichi through FPI route. The year 2020 has also witnessed amalgamation of Andhra Bank and Corporation Bank with Union Bank of India. The amalgamated entity now has more resources in terms of branches to help enable the growth strategy.

He further added “The contribution in the AAUM of Union Mutual Fund from Retail investors and from B30 cities has been good. Our Average AUM in November 2020 had a share of about 39% from B30 cities. We have close to 1% market share of the unique investors in the industry. Armed with a committed and resourceful set of sponsors, a new CIO at the helm and a robust investment process that aims to deliver consistent returns, combined with an aggressive sales and marketing strategy we aim to double our AUM from current levels in a year’s time.”

Recently, more emphasis has been given to driving the business through mutual fund distributors other than Union Bank. A dedicated sales force at Union AMC has been created to look after this segment of the market. The results have been good. From around 3% of monthly AAUM in Nov 2018 coming through Non-Associate Distributors, it has risen to about 11% in Nov 2020. In fact, it nearly doubled from 6% in March 2020 to 11% in November 2020. 

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