As Canara Robeco enters the coveted Rs.100,000 cr+ AuM club of 15-16 large AMCs, Rajnish shares a fascinating and insightful story spanning18 years of its remarkable journey from small to mid and now large cap status –a journey that many fund houses aspired to but only few succeeded, a journey that has proved especially difficult for international brands, many of whom exited the country over the years.
Focus on only long term assets from day 1 meant saying no to institutional liquid money, FMPs and other asset gathering opportunities that did very little to build a sustainable business.
Focus on controlling costs from day 1 meant breakeven within18 months as against a target of 3 years – a feat that most international brands couldn’t come anywhere near to.
Rajnish made a hard decision from the outset of not going for big names in the fund management space who would come with huge salary expectations. Rather that opting for polished diamonds, he opted for picking rough uncut diamonds as he puts it and trusting the disciplined process driven investment approach of the firm to make polished diamonds out of them.
He is justifiably proud that today, his AMC has perhaps contributed over these 18 years, the largest contingent of equity heads to the industry compared to any other fund house even as his AMC’s fund performance never suffered with every exit of a polished diamond from the team – such has been the strength of its process driven approach.
Focus on building a truly independent business meant consistent efforts to build third party distribution from day 1 rather than hoping to only piggyback on Canara Bank’s distribution network.
Canara Robeco’s 100,000cr AuM today boasts 90% equity component and 90% third party distribution contribution – eloquent testimony to the relentless efforts Rajnish and his team put into building a truly sustainable business.
Rajnish takes us through numerous anecdotes and experiences that bring to life a remarkable 18 year journey – one that holds fantastic lessons for anyone wanting to build a high quality institution that far outlives the people who build it.