Asset manager, DSP BlackRock Investment Managers has decided to shut down its portfolio management services (PMS) business in India by June end, reports Business Standard. The company decided to close down the unit as the business growth had stagnated over the part 12 months. Besides this, the company’s portfolio size was too small and its contribution to the business was not significant.

DSP’s PMS business currently has Rs 60 crore in discretionary assets under its PMS unit and Rs 188 crore structured products. The company plans to liquidate the Rs 60 crore discretionary assets by in the next 4-6 weeks, though it would retain the structured product asset part. The main issuers of the structured products in India are Merrill Lynch and Citigroup.

DSP BlackRock currently employs a total of 290 people out of which 9 are in the PMS business. The company is looking at redeploying its staff in the PMS segment and will decide on the issue in about a month.

The company does not focus on individual personal portfolios; rather it is more interested in managing large corporates, institutional portfolio- local as well as international. DSP BlackRock is owned 60% by Hemendra Kothari’s DSP group and 40% by the asset management firm

BlackRock. The company’s mutual fund business currently has assets worth Rs 16,500 crore under management.

DSP BlackRock, however plans to go ahead with its expansion plans of increasing its presence in the country by opening new branches. It plans to increase its branch strength in India from 31 to 50 over the next two years.

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