It appears that the concept of churning is not limited to just mutual fund (MF) schemes churning the portfolios: the MF industry itself is witnessing a churning of its vital human resources.
With a slew of new foreign asset management companies (AMCs) trying to grab a share of the Rs 4 lakh crore Indian MF industry, churning is now happening among the fund managers as well, and that too at the highest levels. And why not, after all, they are being paid hefty pay-packages as high as Rs 35-40 lakh per annum.
Market sources confirm that Rajnish Narula, CEO, DBS Cholamandalam, has put in his papers, but it is not confirmed yet where he will be joining. Another high profile exit is that of Pankaj Razdan, managing director (MD) of ICICI Prudential Asset Management, having assets under management (AUM) of Rs 43,646 crore. It is learnt that Razdan will be quitting the AMC business and will be joining an investment banking company.
Sandeep Bagla, Head of Fixed Income, Principal PNB, is all slated to take over as the CIO Fixed Income of the AIG Global Asset Management Company having AUM of Rs 1,100 crore replacing Sridhar Narayan, the present CIO, who is reportedly being placed in another department. Bagla, who has been with Principal PNB for the last thirty months is said to be taking charge by the end of this month.
A fund manager who did not wish to be named said that with the onslaught of a large number of foreign AMCs setting up shop in India, the demand for good fund managers is very high.