L&T Mutual Fund faces the challenge of senior level exists in a short period after its launch; the latest to quit is its Chief Marketing Officer, Mohit Sachdev.
Another top level official has quit L&T Mutual Fund, a subsidiary of L&T Finance. Mohit Sachdev, Chief Marketing Officer at L&T Mutual Fund, has joined as Chief Executive Officer (CEO) of SREI Asset Management Company, according to a Business Standard report on Friday.
The newspaper said in October 2010, Anish Shah, Vice-President-Finance & Operations, had quit to join Deutsche Bank. Earlier, Deepak Mehta, National Head-Retail Sales, resigned to join UTI Mutual Fund. In November 2010, Jude Abraham, who handled institutional sales for western and southern regions, joined Taurus Mutual Fund as national head of institutional sales. Rajesh Singh, also a part of the institutional sales team, left L&T Mutual Fund around the same time. These senior level exist have happened in little over a year of launch of asset management business by L&T.
Bajrang Bafna and Dinesh Ahuja, who were managing equity and debt schemes, respectively, too have quit L&T Mutual Fund in the past few months.
The newspaper said an e-mail query it sent to Sanjay Sinha, CEO of L&T Mutual Fund, on the issue of recent senior-level exits remained unanswered.
L&T Finance forayed into the MF business in September 2009 after acquiring DBS Cholamandalam AMC for Rs 45 crore. The company had assets worth Rs 2,893 crore at the end of August 2009. DBS Cholamandalam AMC was later rechristened as L&T MF.
L&T Finance had then retained the Sinha as the CEO and his entire team of 80 members.
At the end of December 2010, L&T Mutual Fund’s average assets under management (AUM) was Rs 3,192.77 crore, up about 10 per cent since August 2009.
However, L&T MF’s average AUM has fallen nearly 38 per cent since May 2010 (when it had average AUM of Rs 5,170.69 crore), according to the data available on the website of AMFI. During this period, the mutual fund industry average AUM declined about 16 per cent to Rs 6,74,400.42 crore.
