Discretionary portfolio management is no easy job. It’s a big responsibility for portfolio managers who are tasked by their rich clients to take charge of investment decisions, make trades and re-balance portfolios without seeking permission for every little change.
Throw into the mix volatility in global equity and fixed income markets, high inflation and jitters brought on by Russia’s war in Ukraine and the challenge only gets bigger.
In India, Nuvama Private, which was known as Edelweiss Private Wealth Management before a recent rebranding, is miles ahead of its peers when it comes to showcasing its investment expertise and track record, both with a robust risk management framework. It is Asiamoney’s winner of the award for discretionary portfolio management in India in 2023.
Nuvama’s senior executives have impressive credentials: Ashish Kehair, managing director and chief executive of Nuvama Wealth Management, has more than two decades of banking and finance experience; Alok Saigal, president and head of Nuvama Private, has 20 years of investment advisory experience; Amit Saxena, senior managing partner at Nuvama Private, has more than 24 years of wealth management experience; and Saurabh Rungta, managing partner and Nuvama Private’s chief investment officer, has more than 16 years of private banking and structuring experience.
Nuvama uses a wealth management platform called Infinity to offer discretionary and non-discretionary portfolio management services across asset classes. This gives clients access to cost-efficient investment solutions through a fee structure aligned with their interest.
It also helps clients and portfolio managers respond to, adapt and adjust investments based on what’s happening in real time in the markets.
Nuvama’s approach was to be strategic or tactical with its investment strategy within India depending on market conditions, while going underweight on international equities (ex-US) last year.
India’s wealthy individuals and families have found a trusted partner in Nuvama, which is majority owned by Hong Kong-based investment house PAG. Nuvama’s assets invested with an advisory mandate reached $26.9 billion by the end of September 2022, having grown at a 35% compound annualized rate since the 2015 financial year.
Nuvama says its clients include more than 3,000 of India’s wealthy families and roughly 800,000 high net-worth individuals.
Technology has been at the forefront of Nuvama’s growth and evolution as the management focused on bolstering it at both the front and back end. It moved to cloud a few years ago, and has been leveraging Salesforce, which uses cloud-based software, to link customer requests with relationship managers. The Nuvama Private app offers real-time analytics to high and ultra-high net-worth clients – something its bankers say is unique in India.
Saigal’s team has put in place a dedicated group for environmental, social and governance (ESG) concerns as it attempts to cater to the growing demand for ESG investment options among India’s wealthy and the next generation of clients.