HDFC AMC assigns Prashant Jain's schemes to new fund managers

HDFC Asset Management Company (HDFC AMC) has assigned the three schemes managed by Prashant Jain to new fund managers as the fund house seeks to maintain its recent performance improvement and market share gains even after the exit of its storied fund manager.

Jain, who was chief investment officer (CIO) at HDFC AMC, stepped down on Friday after serving 19 years at the fund house. He handled three flagship schemes of HDFC AMC which had combined assets under management of nearly Rs 90,000 crore as of June 2022.

HDFC Balanced Advantage Fund will now be managed by Gopal Agrawal, Anil Bamboli, and Srinivas Ramamurthy. Agrawal joined HDFC AMC a year ago, from DSP MF.

HDFC Top 100 will be handled by Rahul Baijal, who joined the fund house recently from Sundaram Mutual Fund, where he served for over six years. Roshi Jain, who joined the fund house late last year from Franklin Templeton, has been assigned HDFC Flexi Cap.

Over the past year, HDFC AMC has strengthened its fund management and research team under the new leadership of Navneet Munot, who took charge as MD & CEO in February 2021. Instead of appointing a new CIO, HDFC AMC has announced Chirag Setalvad shall lead its equities segment and Shobhit Mehrotra shall be the head of fixed income.

“We see seasoned fund managers at HDFC AMC taking charge of Jain's portfolio; Rahul Baijal (from Sundaram AMC) will also join. Maintaining a connection with distributors will be the key, and we feel that Munot (CEO) also has a strong connection,” said a note by Jefferies.

The three schemes handled by Jain accounted for nearly 40 per cent of HDFC AMC. The fund house will be hoping that there is no exodus of investors following Jain’s exit, who has an enviable track record and popularity.

“While the transition will bring challenges, we feel that HDFC AMC's strong team (& new hiring), as well as improving fund performance, can actually help defend or even gain market share,” stated the note by Jefferies, which has a target price of Rs 2,500 for the stock. Shares of HDFC AMC on Monday closed at Rs 1,860 apiece, down 2 per cent.