In a period where the markets and investors have done well, wealth managers should be judged by the risk that they have introduced in the portfolios to generate alpha, according to Vinay.
“There is no cookie-cutter solution there, but we’d like to approach our client portfolio not only in terms of the returns but also in terms of risk-adjusted returns and the volatility that got introduced,” she says. “As a firm, we believe that if we’re able to preserve the capital in bad times, the good times can bring a lot of opportunity to over-deliver.”
Vinay also points to the fact that Centrum has been intelligent and lucky enough to have stayed away from expensive mistakes.
“We have had a fantastic 2017, not only in terms of the client portfolios and the alpha that they have generated but also in terms of the way the platform has developed,” she says.
Centrum has added a lot more clients in the last year, and that has mostly been on the back of positive client preferences, according to Vinay. “We’re not a firm that’s gone up on the billboard and talked about how we do, it’s been the clients have done the speaking for us,” she claims. We’ve switched on a lot more locations added about 40% more to our frontline staff.”
Centrum has about INR200 billion (USD3.1 billion) in AUM right now, and it is present in all the relevant private banking locations in India, Vinay states, adding that a Singapore location in addition to a couple of other Asian sites will go live soon.
Vinay says that the international expansion is the logical next step in the firm’s growth journey and there is value in doing so.
“India over the last few years, especially with improved macros, looks like an attractive investment destination etc.,” says Vinay. “It’s attracted more than its share of capital, the regulations have opened up, and so structuring and getting assets into India is an exciting area to focus on.”