Downsizing, lay-offs and salary cuts may be doing the rounds of corporate India, but a close look at Indian mutual fund industry shows that churn of people has been within the industry, with fund managers still in demand. Fund officials said the pressure has been less on fund management side, with distribution and marketing teams bearing the brunt of negative returns and eroding assets.
While smaller and newer fund houses have been the worst hit, the talent crunch in an industry in which new entrants are coming in are making the fund managers a prized catch.
With new players getting ready to enter the market, there is a dearth of talented fund managers keeping them in demand. “They (fund managers) have always been a scarce breed and may continue to remain so for another two-three years,” a marketing official at a top-rated fund house said.
A number of asset management companies from AXIS Bank, Peerless General Finance Services, Motilal Oswal, India Infoline, Ask Securities and DLF Pramerica Asset Managers are planning to enter this market, which will further add to demand for these personnel.
According to the chief executive officer of a private mutual fund, the investment team of a mutual fund is usually “small and tight” and the pressure of downsizing is more telling on distribution and marketing teams.
With talent being scarce in domestic market and global job prospects on the wane, Indian fund managers working abroad are now looking at relocating back home.
“There are a lot of CVs from Hong Kong and Singapore floating in the market. Indian fund managers working abroad are looking to relocate now,” the chief executive officer of a private fund house.
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While inflows have been sharply down in equity funds, money continues to pour in debt schemes, as returns have been phenomenal in past few months.
“This is a good time for debt traders who are looking to make big money and earn bonuses. The market is active and volumes are high. This is not how it was two years back when there was not much recruitment happening on the debt side. There was no money to make in that space,” a fixed income head of a private mutual fund said.
According to information available, in the last two months around 15 top officials have changed jobs. While some have bagged assignments within the mutual fund industry, a few have left to join other financial services firms, while some others have moved to hedge funds and private equity firms among others.
Recently, Morgan Stanley Mutual Fund's Executive Director Navneet Munot quit to join SBI Mutual Fund as chief investment officer. Munot replaced Sanjay Sinha, who joined DBS Chola Mutual as chief executive officer in September.
ING Mutual's CEO Vineet Vohra and Chief Investment Officer Paras Adenwala recently quit the fund house. While Vohra has taken up a new assignment within the ING group, Adenwala has not disclosed his future plans.
Ajay Bagga, CEO of Lotus India Mutual Fund that was recently acquired by Religare Mutual Fund, has stepped down. Whether Bagga will remain within the mutual fund industry remains in doubt.
Religare Mutual Fund that was initially a joint venture between Religare
Securities and Netherlands-based AEGON appointed Saurabh Nanavati as the CEO.
Religare Mutual Fund is now a wholly owned subsidiary of Religare Securities after the parent group divested its stake in the JV.
According to industry officials, ING Mutual is likely to appoint Deepak Arackal as CIO, equities, replacing Adenwala.
Arackal's previous assignments include those with Man Financial India and Statistical Modeling Group. K C Reddy, former CIO of Fortis Mutual Fund, has joined Switzerland-based Amas Bank in the same capacity.
Earlier this month, HSBC Mutual Fund's fixed income head Shailendra Jhingan quit. Jhingan has joined ICICI Securities.
Fund manager Suyash Choudhary, who joined HSBC Mutual Fund in February from Standard Chartered Mutual Fund (now IDFC Mutual Fund), has been elevated to the post of fixed income head.
IDFC Mutual Fund's investment head Rajiv Anand has also put in his papers. Anand is slated to head Axis Bank's proposed mutual fund.
Alok Kumar Sahoo, who was earlier associate vice-president and assistant fund manager (fixed income), HSBC Mutual Fund, has joined Baroda Pioneer Mutual Fund as fixed income head.
Ankur Parekh, former debt fund manager with DBS Chola Mutual Fund, has joined Reliance Mutual as portfolio manager of debt. On October 17, Prashant Pimple rejoined Reliance Mutual Fund. He had quit October 6, to join Fidelity Mutual.