JP Morgan likely to sell its Indian MF arm
16/03/2015 08:26
Foreign fund house JP Morgan Asset Management, which manages assets worth over Rs 14,000 crore, is likely to sell its India mutual fund business, said the media reports. JP Morgan could become the fourth foreign fund house in little over a year to exit the Indian mutual fund industry, although its asset base has grown rapidly in the recent past. Since December 2013, three international players - Morgan Stanley, ING and PineBridge - have announced selling their mutual fund businesses in the country. Sources said JP Morgan has begun discussions for a possible sale of its Indian mutual fund arm, although the fund house officially declined to comment on the same. JP Morgan Asset Management spokesperson said, "As a matter of policy, we don't comment on speculation or rumours." The total asset base of Indian mutual fund business crossed Rs 12 lakh crore last month, although the industry is highly scattered with nearly 45 players with most of them having small businesses. The fund houses have seen robust capital inflows in the recent months, while their asset base has also been getting a major boost from the strong performance of their equity schemes. Speaking on the matter, Quantum AMC, CEO, Jimmy Patel said, "In my view the problem with foreign or big AMCs is their high cost structure. The slow decision making process and the chase for growth/AUM at the cost of revenue."
16/03/2015 08:26
Foreign fund house JP Morgan Asset Management, which manages assets worth over Rs 14,000 crore, is likely to sell its India mutual fund business, said the media reports. JP Morgan could become the fourth foreign fund house in little over a year to exit the Indian mutual fund industry, although its asset base has grown rapidly in the recent past. Since December 2013, three international players - Morgan Stanley, ING and PineBridge - have announced selling their mutual fund businesses in the country. Sources said JP Morgan has begun discussions for a possible sale of its Indian mutual fund arm, although the fund house officially declined to comment on the same. JP Morgan Asset Management spokesperson said, "As a matter of policy, we don't comment on speculation or rumours." The total asset base of Indian mutual fund business crossed Rs 12 lakh crore last month, although the industry is highly scattered with nearly 45 players with most of them having small businesses. The fund houses have seen robust capital inflows in the recent months, while their asset base has also been getting a major boost from the strong performance of their equity schemes. Speaking on the matter, Quantum AMC, CEO, Jimmy Patel said, "In my view the problem with foreign or big AMCs is their high cost structure. The slow decision making process and the chase for growth/AUM at the cost of revenue."
