Financial Daily from THE HINDU group of publications
Thursday, Apr 20, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 20, 2006 |
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Markets - Asset Management Companies Nilanjan Dey
Asset base AUMs of Reliance, DSP Merrill witness surge Franklin Templeton, JM move down in asset scorecard Reliance now occupies second slot with Rs 24,000 crore AUM
Kolkata , April 19 The asset management industry is witnessing sweeping changes in its pecking order, with a few of last year's toppers losing their pre-eminent status and some relatively smaller fund houses emerging as bigger entities. While the public sector UTI Mutual Fund has, like in the previous fiscal, maintained its numero uno position in 2005-06, players such as Reliance and DSP Merrill Lynch have gained significantly in terms of assets under management (AUM) on a year-on-year basis. Also, funds such as Franklin Templeton and JM have lost ground to occupy lower positions in the league tables. A look at the latest rankings (as on March 31, 2006), based on AUM figures, circulated by the Association of Mutual Funds in India for 2004-05 and 2005-06, underscores the advances recorded by the asset management sector — over 50 per cent in the past year. The trend, say MF circles, is because of an overall growth, which may be viewed especially in the context of a rising market and greater attention paid by investors to mutual funds. Most players have added significantly to their asset base, and a select few have actually ended up with 90-100 per cent growth.
Prominent growth
The growth is quite conspicuous in the case of Reliance MF, which moved up from the sixth position in 2004-05 to occupy the second slot in 2005-06. The fund house, which had a little over Rs 9,500 crore in March 2005, now has well over Rs 24,000 crore under management. This, it may be mentioned, represents a 150 per cent-plus increase. Among the others that have moved up significantly are DSP ML (from the 13th position to the 8th), Standard Chartered (11th to 7th) and ABN Amro (23rd to 18th). As for the last named fund house, the growth in assets has been 200 per cent or so. For Franklin Templeton, the move has been in the opposite direction. It ended the fiscal as the fifth largest entity after having assumed the No 2 position as on March 31, 2005. The fund nevertheless saw its AUM increase from roughly Rs 15,350 crore to about Rs 17,800 crore during the period under review. JM MF, which was in the 14th place in 2004-05, has actually gone through a negative trend and has seen its position drop to 19. Its assets fell from approximately Rs 4,100 crore to about Rs 2,600 crore.
No change in status
While nearly a dozen players have surpassed the 50 per cent-plus average growth recorded by the mutual fund industry, some of the fund houses have in reality witnessed little or no change in their rankings. Sundaram, Cholamandalam and Sahara have seen no revision in status. Their positions at the end of both fiscals are 16th, 22nd and 25th respectively. The first two, however, have notched fairly decent changes in AUM, about 75 per cent and 96 per cent respectively. Sahara ended fiscal 2005-06 with about 18 per cent increase in assets. Two fund houses, Alliance and GIC, moved out of the scene, while Fidelity was a fresh entrant. Quantum, incidentally, is the newest player in the industry.
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