DSP BlackRock to shut down part of Portfolio business in India
Press Trust of India / Mumbai Apr 30, 2009, 15:38 IST
Leading asset manager, DSP BlackRock Investment Managers has decided to close down a part of its portfolio management services (PMS) business in India by June end.
DSP BlackRock decided to scrap the segment primarily owing to a stagnant growth seen in the division in last 12 months and taking into account the small size of the portfolio, a company official said.
"The growth in PMS segment has been stagnant in the last 12 months. Besides, the segment's contribution to the total business is not significant. Hence we decided to shut down the unit," the official told PTI here.
DSP BlackRock's PMS portfolio comprises Rs 60 crore in discretionary assets and Rs 188 crore structured products.
While the Rs 60 crore discretionary assets will be liquidated in the next four to six weeks, the company would retain the structured product asset part, the official said.
"DSP BlackRock will go ahead with our expansion plans, primarily increasing our presence in the country by opening new branches," the official said.
DSP BlackRock plans to take its branch-strength in India from the current 31 centres to 50 over the next two years, the official said.
The company currently manages Rs 16,500 crore of Mutual Funds in India and has an employee strength of 290, out of which nine people are in the PMS segment. It has nearly 15,000 prdoduct distributors pan-India.
The company is still evaluating options on the redeployment of its staff in the PMS segment and will take a call on the issue in the next one month, the offical said.
Hemendra Kothari-led DSP Group has 60 per cent stake in DSP BlackRock while the remaining stake is with global asset manger, BlackRock.
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