Those performing well are retained: Sunil Subramaniam

Excerpts of an interview with Sunil Subramaniam, MD & CEO, Sundaram AMC:


How will the investment philosophy expected to change with new team on board?

In terms of the allocation of teams, those who have been performing well in their respective categories have been retained. So, we don’t expect much of a change in philosophy and style to happen. Ravi’s (Ravi Gopalakrishnan, now CIO of Sundaram AMC), philosophy of bottom up stock picking is not very different from that of Sundaram’s and he has done a better job of stock picking over the last two years. Fundamentally, both Principal and Sundaram have been process-oriented, and follow a bottom up approach, and have largely a growth-bias in the portfolio. With Ravi coming in, we expect the quality of overall equity portfolio to be enhanced.

What will be the expense ratio for new schemes?

Because of the merger, the funds grow larger in size. Sebi has a reverse capturing method of TER (total expense ratio) computation and the cost of the funds is expected to come down dramatically. In our estimate, there will be about 36 crore of TER savings that will accrue to investors due to the merger.

How is the transition likely to progress?

A lot of homework has already been done. Now we are in the process of implementation. Because of the merger, the overall portfolio would have expanded by about 15% to 20%. One of our initial efforts will be to concentrate the portfolios back to the usual 40 to 50 stock as opposed to 60 to 70. We will spend the next month or so realigning the portfolios gradually, because we don’t want to harm the investors by churning it a lot immediately. But we will do that gradually over a period of a month.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
our App Now!!

Stay connected with us on social media platform for instant update click here to join our  Twitter, & Facebook

We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.

For all the latest Business News Click Here 

 For the latest news and updates, follow us on Google News

Read original article here

Denial of responsibility! TechAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More