GOLDMAN Sachs Asset Management Company India has deferred its plans to set up mutual fund operations in India, on account of unfavourable market conditions. According to people familiar with the development, the wholly-owned arm of the Goldman Sachs group is unlikely to launch mutual fund operations here at least in the next year or so.
This has been conveyed to the employees who were roped in for the proposed mutual fund, and has resulted in several staff members heading for the exit. Goldman Sachs officials declined to comment on the matter.
Goldman has recalled its chief executive officer for the venture, Adam Broder, who had shifted base to Mumbai last year for the assignment. Its chief investment officer is believed to be moving back to Hong Kong to take up his previous assignment of managing portfolios of private clients.
Top officials at other mutual funds confirmed that they have received a number of enquiries for jobs from the staff of Goldman AMC, recently.
The company had received the approval from market regulator Sebi to start mutual fund business in India early September last year, when the equity markets were already in a state of turmoil. With markets showing no signs of recovery and the outlook remaining bleak at least for this year, the global financial giant joins the list of other entities, which have deferred their plans to launch mutual fund operations in India. Other domestic financial firms such as Motilal Oswal and Matrix Financial Services are believed to be going slow with regard to the launch of their asset management businesses.
Established mutual fund houses are finding it difficult to get business in equities nowadays. In such a scenario, it would be next to impossible for a new fund house, however, renowned it is globally to start one now.
Mutual fund houses, which had launched their businesses during the peak of the equity bull-run till early January 2008, have incurred heavy losses due to lack of enough revenues visa-vis the higher costs, amid the sharp decline in markets. While some houses are believed to have cut down their operations to the bare minimum to just service existing clients, a handful of them are believed to be on the block, but have not found enough buyers on account of adverse market conditions.
This has been conveyed to the employees who were roped in for the proposed mutual fund, and has resulted in several staff members heading for the exit. Goldman Sachs officials declined to comment on the matter.
Goldman has recalled its chief executive officer for the venture, Adam Broder, who had shifted base to Mumbai last year for the assignment. Its chief investment officer is believed to be moving back to Hong Kong to take up his previous assignment of managing portfolios of private clients.
Top officials at other mutual funds confirmed that they have received a number of enquiries for jobs from the staff of Goldman AMC, recently.
The company had received the approval from market regulator Sebi to start mutual fund business in India early September last year, when the equity markets were already in a state of turmoil. With markets showing no signs of recovery and the outlook remaining bleak at least for this year, the global financial giant joins the list of other entities, which have deferred their plans to launch mutual fund operations in India. Other domestic financial firms such as Motilal Oswal and Matrix Financial Services are believed to be going slow with regard to the launch of their asset management businesses.
Established mutual fund houses are finding it difficult to get business in equities nowadays. In such a scenario, it would be next to impossible for a new fund house, however, renowned it is globally to start one now.
Mutual fund houses, which had launched their businesses during the peak of the equity bull-run till early January 2008, have incurred heavy losses due to lack of enough revenues visa-vis the higher costs, amid the sharp decline in markets. While some houses are believed to have cut down their operations to the bare minimum to just service existing clients, a handful of them are believed to be on the block, but have not found enough buyers on account of adverse market conditions.
