Resource id #4Resource id #4 Advisor Interview
17 April, 2024 13:55 IST

`Investment portfolio is all about asset allocation`

Source: IRIS (30 May 2011)

`Investment portfolio is all about asset allocation`
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In an exclusive interview with Yogita Khatri of, DK Aggarwal, chairman and managing director (CMD), Sanlam Investments & Advisors (India) says, ``Three years down the line, we see ourselves among top 10 wealth management companies in India providing wealth management service in the real sense.``


> Can you tell us about `Sanlam Investments & Advisors`? What services do you offer?

Sanlam investments and Advisors offers specialized wealth management and advisory services to HNI clients helping them in growing and preserving their wealth. Sanlam offers investment advisory services, investment and financial planning, portfolio management services and also offering a platform to invest into equities, mutual funds and alternate asset class.


> What have been the positives/ drivers of SMC Global`s JV with South Africa-based Sanlam? Tell us about your current business model, the kind of clients, AUM etc.

SMC Global`s association with South Africa based Sanlam group means a lot to us as Sanlam is a 90 year old group, managing close to USD 60 billion worth of assets across the globe having expertise of asset management and known for their performance delivery.

Their experience in wealth management has helped us in setting up a value based wealth management business in India. Our operational processes, HR practices and investment processes which we have implemented in our business are in line with international best practices due to Sanlam`s association.

Our current business model is an advisory model based on our in-house stringent due diligence process. We have adopted an open architecture where we offer third party products which qualifies our criteria. We also have our in-house SEBI approved PMS services both discretionary and non-discretionary.

We also have a good base of HNI clients with a minimum investment of Rs 2.5 million and they automatically qualify our criteria. Our current asset under management is approximately Rs 5 billion and its growing gradually.


> Given the spiraling inflation, rising interest rates, volatile equities, what would be your advice to a retail investor?

Currently high inflation and rising interest rates are two big concerns which have depressed the sentiments in the market. However, long term growth story of India is intact and valuations at current level of Sensex, trading at about 18,000 looks attractive from an investor point of view, provided he has time horizon of at least 3 years.


> How does one go about structuring investment portfolio?

Historically, investment portfolio is all about the asset allocation than choosing within the asset class. So more emphasis is placed on the mix and weight-age of various asset classes and this restructuring should be reviewed quarterly or half-yearly.

> How many fund houses do you deal with? Tell us your favorite all-time MF schemes.

We have relationships with almost all fund houses; however our rigorous selection process gives us 12-15 fund houses as a part of our approved product universe at any point of time. We like schemes which have a consistent long track record and prefer those that are from fund houses with robust investment process and high service standards.


> What is the investment philosophy at Sanlam Investments & Advisors? How do you plan to strengthen the development of advising and managing wealth of clients globally?

At Sanlam Investments and Advisors more emphasis is placed on asset allocation, we take a long term view of minimum 3 years and we believe that expectation of returns from equity should not be more than 15-18% CAGR.


We would like to pursue our policy of transparency, trust, innovation and passion in our overall investment decision and investment functions which would help us in strengthening the development of advising and managing wealth of clients globally.


> Are there any client groups you particularly plan to target?

Currently, we are focusing on HNI clients but going forward we would also focus on ultra HNI and NRI clients.


> What according to you is your USP vis-a-vis other players? Where do you see yourself 3 years from now? Any new products from your basket?

We are one of the few companies who has in-house PMS under the charge of CIO and also separate product team which does due diligence and very stringent checks to ensure that all third party products which we advise/distribute meets our criteria.

We have wide range of investment products and alternate asset classes as our offering. We focus on asset allocation using our in-house research capabilities which is the key to success of any investment plan. We have the blend of international experience and local understanding.

Three years down the line we see ourselves among top 10 wealth management companies in India providing wealth management service in the real sense. We are planning to have PMS based on quant strategies very shortly.


> What are the key areas, according to you, where advisors need to improve themselves in order to serve their clients better?

Advisors need to understand that wealth management is a long term business and they need to be client centric while advising their clients.


> What is your message for young investors starting their career?

Young investors should not jump in the equity market directly rather they should take the services of wealth managers or financial advisors to make their investment decision.


> Is there anything else you would like to share with our readers?

It is always best to diversify your portfolio even if there is a slight decrease in your overall returns, as there is saying ``do not put your all eggs in one basket``.

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