The Hindu Business Line : Fund managers are hot picks

WITH the sun shining on the Indian bourses, mutual fund companies are finding it more difficult to hold on to their fund managers than their investors' money.

Over the last few months, most asset management companies have seen an exodus of staff, especially on the fund management side of the business, more than ever before.

The sustained growth of the equity markets over the last two years has led to more and more international players sniffing around.

Those wanting a share of the Indian pie range from hedge funds to international asset management companies.

And, what is the first step in investing in the country?

Hiring a good Indian fund manager!

The experience of handling the year 2000 bear market and the current bull run has given fund managers the confidence to start their own portfolio management service.

Many have started their own private fund management business.

In the last three months, Kotak Mahindra Mutual fund has lost its CEO, Mr Ajay Bagga, and the Head - Equity, Mr Rushabh Sheth.

From Birla Sun Life Mutual fund, Mr Paras Adenwala, Head - Equities, ventured out to start his own business.

Mr Deepesh Pandey, Senior Fund Manager for Prudential ICICI AMC, has put in his papers and so has Mr Dileep Madgavkar, former Chief Investment Officer, Prudential ICICI AMC.

The latest buzz is that Mr Sanjiv Duggal, Chief Investment Officer, HSBC AMC, is also on his way out and is joining a new fund house that is being set up.

HSBC officials did not confirm this move.

"One of the prime reasons for these exits by fund managers is that, in private fund management business and even hedge funds, there is no pressure to publish good net asset values daily and sound performance in the short term," said Mr Sandesh Kirkire, who has now taken over as the Chief Executive Officer of Kotak Mutual Fund.

While salaries have gone up in the industry to retain staff, Mr Vasant Sanzgiri, Head Human Resources, Prudential ICICI AMC, says retention is also a factor of work environment. According to him, because Prudential ICICI has the option to leverage its presence outside the country and offer its employees international posting, it is seen as a big benefit for staying on.

Indian fund managers are prime targets for global players, as they are perceived to be diligent and hard working.

For funds that do not have many years of experience in investing in emerging markets, the fact that these fund managers know their way around the regulatory landscape is an added advantage.

"Besides our culture is such that hard work comes more naturally to Indians," said Mr Sanzgiri.

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