ABN Amro MF top honchos move out

Mumbai, Jan 27 | Updated: Jan 28 2005, 05:30am hrs
ABN Amro Mutual Fund is facing an exodus at the top level. After the exit of the head of debt funds Rajiv Shastri, the head of equities Mihir Vora is also believed to be on his way out. Industry sources close to the development told FE that Mr Vora is likely to join the equities team at Tata Mutual Fund. Meanwhile, the assets under management (AUM) of the AMC has has also halved to Rs 1088 crore in the last five months from its initial IPO collection of over Rs 2000 crore.

Speaking on the corpus size of the fund, Deepak Mangla, head of sales-India, said, Being the latest on the block, we are not getting into month-end pressures as of now. There are no causes of major concern as there are no issues on our performance. Our corpus size went down significantly as institutional and corporate investors pared their investments in October and November. However, we feel that there is a lot of scope in the fund industry and we are now getting demands from our investors to increase our product profile. Four key distributors have begun recommending our products from January 2005 and there are more to come. We feel that things will look up soon.

However, top level fund industry sources are of a contrarian view. A top industry official said, ABN Amro MF had raised the level of expectations of the investors and distributors during the maiden IPO of its schemes. However, the AMC did not deliver even as the equity markets witnessed a giddy upmove. This is one of the reasons why even distributors had withdrawn the support from the fund house, the official told FE. Rajiv Shastri, head of debt funds, also quit the AMC recently to join as chief executive officer of Sahara AMC.