Kunal Desai (pictured) joined Neptune in 2010, where he was promoted to head of Indian equities and has been primary manager on the £105.1m India fund since December 2012. It has returned 98.3% since that point, compared to 70% in MSCI India over the same period.
“Desai is leaving Neptune to join a start-up to be part of a team running an emerging markets fund,” Neptune said in a statement.
Neptune has confirmed Tom Smith, lead manager on the £40.5m Latin America fund, will take over on the India fund. Smith will also become co-head of emerging markets alongside Ewan Thompson.
Chelsea Financial Services managing director Darius McDermott said Desai’s exit would be disappointing for Neptune.
“If you look at the hire of Theo Zemek, it looked as if Neptune may have been turning the corner. While this isn’t good, it should be taken in isolation that an impressive, young man doing a good job has greater ambitions,” McDermott said.
Neptune announced on Monday it had hired Zemek for a newly-created senior fixed income role, following a number of staff exits over the last two years.
Smith has been manager of the Latin America fund since July 2011. He has delivered 13.5% returns over that period, compared to -10.2% in the MSCI EM Latin America index.
McDermott said he wouldn’t be greatly concerned about Smith taking on the additional India fund.
“There are lots of emerging market managers who will run Latam and India in the same portfolio. They both share similar characteristics, they’re both high growth markets,” he said.
Both funds use a top-down first, then bottom up approach, he added.
A spokesperson for Neptune said Smith and Thompson had worked closely for a number of years. Thompson remains number two on the India fund.
