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Apr 26, 2012, 11.11 AM IST | Source: CNBC-TV18

Private insurance cos CIO new finance tigers

Traditionally, when you think of high-profile fund-managers, mutual fund chief investment officers have so far hogged the limelight. But now, there is a new breed of CIO’s who are emerging as the new holders of retail money, reports Mitra Joshi of CNBC-TV18.

Traditionally, when you think of high-profile fund-managers, mutual fund chief investment officers have so far hogged the limelight. But now, there is a new breed of chief investment officers (CIOs) who are emerging as the new holders of retail money, reports Mitra Joshi of CNBC-TV18.

Sunil Singhania, Prashant Jain, S Naren, KN Shiva Subramaniam and Mahesh Patil are all high-profile and well-known equity MF managers. But now, there is a new breed of CIOs of private insurance companies, who are managing billions of dollars in equity assets, are making their presence felt.

Top-10 private insurance companies each handle more than USD 1 billion in equity assets in pure retail money. While the mutual fund industry manages approx Rs 2 lakh crores in equities, these fund managers also manage similar amounts in equity for the Insurance Industry. 

Manish Kumar handles Rs 39,890 crore of equity assets for ICICI Pru Life Insurance, while Sampath Reddy of Bajaj Allianz handles Rs 27,014 crore of equity assets. Abhijit Gulanikar handles Rs 20,576 crore of equity assets for SBI Life Insurance and Prasun Gajri handles Rs 16,000 crore for HDFC Life Insurance

Rangarajan Rajagopalan handles Rs 9,933 crore of equity assets for Reliance Life Insurance, Prashant Kumar handles Rs 9,866 crore of equity assets for Max New York Life Insurance and Shashi Krishnan handles Rs 9,409 crore of equity assets for Birla Sun Life Insurance.

Today, this class of CIOs has become a very important part of investor road shows. They largely invest for a long-time horizon with the aim of providing stable returns as compared to MF CIOs who are under daily pressure to deliver on NAVs and outperform the benchmark indices. And even though, MF CIOs will continue to be respected, the new breed of insurance CIOs is slowly making their mark as well.

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