“Our Assets Under Management [AUM] have grown almost about 80% in last 11 months and our profits this year have jumped by almost by 150%,” says Rathi. One distinct contributor to this exponential growth has been Religare’s wealth management business, which was picked up Anand Rathi early last year. At the time of the acquisition, Religare managed assets close to USD675 million.
Talking about the client segment that Anand Rathi targets, Azeez mentions that they typically target clients ranging from USD1 million to USD3 million space. Servicing the clients below this threshold is not a profitable proposition for the firm, he says.
According to Azeez, what makes Anand Rathi different from other players is that it focuses on the basics. He counts the four pillars that make them stand out as telling the client what he needs to know not necessarily what he wants to hear; being data backed to the point clients can ask for data around any piece of advice; being uncomplicated as they deal only in mutual funds, structured products and some hedging strategies; and being transparent wherein they are open to any scrutiny.
Clearly focused on growth in the coming year, Anand Rathi plans to grow both in terms of wallet share as well as new clients, says Azeez. One key priority will be to reduce the gap between Assets under Management and Assets under Advice.
Another priority will be to utilise their full capacity of relationship managers in terms of new client on-boarding. Talking about the quality of the firm’s relationship managers, Azeez mentions that they continuously evaluate their performance not only on output but also on input parameters like number of meetings with clients, number of days of training, etc.