‘Track record matters more than sponsorship, ’ says Nimesh Shah

ICICI Prudential AMC, one of the largest and most profitable mutual fund houses, mobilised Rs 3,021.8 crore from 149 anchor investors on Thursday at Rs 2,165 per share, after a pre-IPO placement to top institutional investors. The Rs 10,600 crore IPO opened for bids on Friday. Nimesh Shah, MD & CEO tells Nesil Staney that while operating profit is the most relevant metric continuity of fund performance is vital. Excerpts: 

Bank sponsored AMCs have historically benefited from early scale, strong governance and wide distribution. How-ever, long-term leadership in this industry is not determined by sponsorship alone. Market share tends to consolidate around asset managers with consistent track record of fund performance, strong risk management and brand trust. As long as an AMC delivers a good investor experience and manages money conser-vatively across cycles, investors stay invested longer and allocate more. Over time, performance, process and risk management matters more. 

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