After almost two years, UTI Mutual Fund has got a full-time Chief Executive Officer. On June 13, the fund house appointed Imtaiyazur Rahman to the position.
Rahman has been at the helm of affairs at UTI Mutual Fund since its former Managing Director Leo Puri demitted office in August 2018.
A science graduate, Rahman has more than three decades of experience in management, business leadership, leading change and forming strategic alliances.
Industry experts hope that Imtaiyazur will be able to script a turnaround.
Rahman joined UTI in 1998 soon after the UTI 64 units faced problems. He was part of UTI during its split in SUUTI for the toxic assets of UTI and the rest of UTI.
UTI used to have bureaucrats as the top executive till some time back. Rahman was part of the team of UTI under Damodaran and UK Sinha that witnessed its restructuring from a pure government body to a professional AMC.
Rahman appears to be a battle-hardened UTI veteran as he was in charge during UTI's tumultuous years of 2012-13 after Sinha's tenure ended and the government could not decide on a new Chairman.
The government's tussle with shareholder T Rowe Price for a non- bureaucrat Chairman also played a part in UTI's fall from its top position.
Rahman will have his task cut out as he looks to lead UTI back to its past glory. During Puri's stint, the fund house witnessed an AUM growth of 137 percent. However, after his exit, the AUM has fallen 8.7 percent in the last two years.
UTI Mutual Fund was under the spotlight in the last two years due to debt scheme investments in several beleaguered companies such as IL&FS, Dewan Housing Finance Ltd (DHFL), Vodafone Idea, and Altico.
UTI Mutual Fund’s initial public offer (IPO) was also held up as the post of CEO was vacant after Leo Puri quit. In Dec 2019, UTI AMC had filed draft red herring prospectus (DRHP) with the capital market regulator SEBI.
In the past, Securities and Exchange Board of India (SEBI) had expressed concern over the vacant CEO position.
"This appointment brings stability in the top management of the company especially since it is planning to launch its IPO shortly and addresses the concerns of SEBI on the CEO position which was vacant for quite some time," UTI AMC said in a press release dated June 13.
UTI not having a full-time CEO dented investor confidence and resulted in its declining asset size over the years. The brand name still has a strong resonance and Imtaiyazur's appointment is expected to give it the much-needed boost.
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