Navneet Munot to head HDFC MF as Milind Barve's term ends on Jan 31

Munot is currently CIO and executive director at SBI MF, a position he has held the past 12 years

HDFC Asset Management Company (AMC) has appointed Navneet Munot (pictured) the new Managing Director and Chief Executive Officer (MD and CEO) of the fund house.

Munot, currently the chief investment officer (CIO) and executive director of SBI Mutual Fund, will succeed long-time MD Milind Barve, whose tenure ends on January 31, 2020.

“The board of directors is pleased to inform that during the meeting held on November 16, 2020, it approved the appointment of Navneet Munot as managing director and chief executive officer of the company, and he will succeed the present MD Milind Barve,” HDFC AMC said in a stock exchange filing.

Munot has been CIO of SBI MF for the past 12 years, and previously worked with the Aditya Birla Group in various capacities for 13 years.

Since taking charge as SBI MF’s CIO in December 2008, Munot has been credited with bringing in stability to SBI MF’s fund management processes, which were adversely impacted after the fund house found itself in rough weather following the global financial crisis. This is because performance had started slipping and internal attrition had begun to bite the firm.

“He is future-ready and well ahead of the market. He has put in place a robust fund management infrastructure at SBI MF, and transformed it from a predominantly retail fund house to one that caters to all kinds of investors. He is patient, does not have any ego and should be a good fit at HDFC MF,” said the CEO of a top fund house.

Industry players added that Munot was among the first in the sector to adopt the environmental, social and corporate governance (ESG) as well as passive themes. SBI MF moved up two places to third spot in 2018, helped by the surge in debt inflows, steady performance across schemes, and money from the Employees’ Provident Fund Organisation (EPFO) — a mandate it got in mid-2015. It became the largest fund house this year and now manages assets of over Rs 4.5 trillion.

HDFC MF is the country’s second-largest fund house, with average assets under management of Rs 3.76 trillion as on September 30, 2020. HDFC MF posted net profit of Rs 1,262 crore, compared to a net profit of Rs 931 crore in the previous financial year. 

Vinay Tonse, MD and CEO of SBI Funds Management, said: “Navneet has been part of this team of skilled and experienced senior fund managers. We value his contribution to the organisation, and wish him the best in all his future endeavours. We are a process-oriented organisation, and have one of the most competent investment teams in the industry.” 

The fund management structure will continue to remain the same, as the firm, over a period of time, has built a very capable second line with strong vintage, SBI MF said in a note on Monday.

The candidates for Barve’s successors included other top industry names, along with a few internal candidates.