IndiaNivesh Investment Managers has announced that it is discontinuing its portfolio management services (PMS) business in view of the market turmoil and difficult economic circumstances owing to coronavirus.
In a letter to its clients, the company said, “In view of the current market volatility pursuant to the global outbreak of COVID-19 and its long-term impact on our business, we have decided to close our operation at IndiaNivesh Investment Managers.”
The company said that it has decided to transfer all assets under custody (AUC) to its clients. Investors will get to choose between liquidating their holdings and transferring the shares to their demat accounts.
IndiaNivesh assured that that the entity is not closing and will continue till the smooth hand over of assets of clients.
The portfolio management services were launched the portfolio management services business in March 2015 and it has about 190 clients and AUC of about Rs 60 crore.
It has around 30 percent cash including liquid investments in its portfolio.
If reports are anything to go by, the company has been dealt a blow not just by the current market volatility but also because it has been underperforming since 2018.
The portfolio management services has raised levels of cash in recent months, helping its client keep a check on damage caused by the recent sell-off, reported Business Standard.
The daily reported that the decision to shut down operations has less to do with the market turmoil and it was more of a business decision.
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Updated Date: Mar 30, 2020 12:36:10 IST