Product
Suite
At CWA, you can be assured that a dedicated team is working constantly on ideating, identifying, and evaluating different financial products. We make available a wide range of investment opportunities to suit all categories of investors that can potentially add value to your portfolio.
Investment
offerings
- MUTUAL FUNDS
- PORTFOLIO MANAGEMENT SERVICES
- ALTERNATE INVESTMENT FUNDS
- STRUCTURED DEALS
- OFFSHORE INVESTMENT SOLUTIONS
Step 1: Top-down analysis and opportunity identification
- Analyze macro data
- Identify headwinds and tailwinds for various asset classes
- Source a set of relevant investment managers in the identified asset classes
Step 2: Manager & product screening and selection for evaluation
- Equity
- Debt
- Commodities
- Alternates
What we do
Equity
We look for investment opportunities with the following criteria:
- Identifying themes expected to play out in the next decade with high-growth conviction
- Investing in brands that are used globally and showcase continuous growth in earnings
- Investing in specific economies which are the major beneficiaries of changing macro trends
Debt
We look for investment opportunities with the following criteria:
- Accrual Strategies such as high-quality sovereign securities with medium- and long-term maturities
- Duration Strategies that include investing in dynamic debt and gilt securities
- Strategies not available in the Indian market with a potential to deliver higher returns than plain-
vanilla bond funds, e.g., leveraged bond funds
Commodities
We look for investment opportunities that would benefit from the global macro environment:
- Precious metals: gold, silver, platinum
- Broad commodity baskets: potential beneficiaries in the inflationary environment
- Industrial metals: aluminum, copper, lithium, etc.
Alternates
We look for investment opportunities that meet the following criteria:
- Low to negative correlation to traditional investments
- Differentiated hedge fund strategies, for example, long only, long/short, etc.
- Real Estate Investment Trust (REITs)
- Volatility ETNs
Step 3: Detailed analysis and due diligence
suite.
- Preliminary analysis of the fund
- Investment style
- Quantitative analysis
- Qualitative analysis
What we do
Preliminary analysis of the fund includes understanding the:
- Investment objective of the fund
- Investment strategy
- Absolute or relative return strategy
- Investment universe for the fund
- Geographic focus
- Use of leverage and other derivatives instrument and purpose of use
- Ideal investment horizon
- Fund domicile and fund regulator
- Fund structure (mutual funds, VCC, SPC, collective investment scheme, etc.)
- Asset class
- Inception year
- Assets Under Management (AUM)
- Benchmark index
Investment Style:
-Top-down, bottom-up, or both?
-Active or Passive?
-Growth, value, or blend?
-Large, mid, or small-cap?
-Buy and hold? (if any)
-Fee structure (management & incentive fee)
-Lock-in period and Exit load
Quantitative Analysis
We do a detailed analysis of various quantitative parameters to determine the consistency in risk-adjusted returns of the fund and performance track record versus relevant benchmarks.
We undertake a robust process to evaluate various aspects, as listed here:
1) Historical returns
- Compounded Annual Growth Rate (CAGR)
- Rolling returns
- Calendar year returns
- Monthly returns (past 2-3 years)
- Number of positive months (%)
2) Performance v/s benchmark
- Alpha
- Upside capture
- Downside capture
3) Analysis of fund performance v/s peer set — risk-adjusted returns
4) Risk metrics
- Beta
- Standard deviation
- Maximum drawdown
- Number of months to recovery
5) Risk-adjusted ratios
- Sharpe ratio
- Sortino ratio
- Treynor ratio
- R squared
6) Other ratios/parameters
- Top holding to determine concentration risk
- Liquidity profile of portfolio holdings
- Churn ratio since inception
- Any significant fund outflows in the past three years
- Portfolio P/E and P/B ratio
7) Specific ratios analyzed for fixed income securities
- Portfolio duration
- Portfolio Yield to Maturity (YTM)
- Average portfolio maturity
- Credit rating of the fund and portfolio holdings
8) Correlation of the fund with respect to other asset classes. We usually prefer investment opportunities with low correlation to different asset classes.
Qualitative Analysis
Apart from quantitative analysis, we also do qualitative analysis for a deeper understanding of the fund and the investment management company.
This includes:
1) The fund manager’s background check
- Qualification and investment style
- Track record and total years of experience
- Number of years spent managing the current fund
2)Investment committee
- Analyst support provided to the fund manager
- Number of individuals involved in the decision-making process
- Risk management framework followed before/during investing
Step 4: Fund manager interviews
- Verification
- Fund manager’s view on the market scenario
- Market and fund outlook
What we do
1) Verification
- Verification of management stability and economic rationale of investment strategies
- Verification of background and rationality behind previous investment decisions to measure future consistency of the team and fund strategy
2) Fund manager’s view on the market scenario
- Positive market scenarios in which the fund is expected to outperform (benchmark or absolute return)
- Negative market scenarios in which the fund is expected to underperform (benchmark or absolute return)
3) Market and fund outlook
- Short-term market outlook (<1 year) and its impact on the fund
- Long-term market outlook (>1 year) and its impact on the fund
Step 5: Ongoing monitoring
The process includes:
- Analysis of the monthly performance
- Quarterly fund management call
- Extraordinary management call
What we do
1) Monthly review of the fund updates/commentary shared by the fund house, performance review, and risk
metrics
2)
- Detailed periodic discussion with fund managers to get their views on how their funds are positioned to benefit the most from the markets
- Get broader views on the macroeconomic and microeconomic scenarios
- Get information about new offerings and evaluate them to understand if they can be included in our suite of products
3) Conduct extraordinary calls to gain insights on the potential impact on the fund due to an extreme negative/positive event or news floating in the market
Disclaimer
In the preparation of the material contained in this document, Credence Family Office Private Limited, has used information that is publicly available, including information developed in house. Information gathered & material used in this document is believed to be from reliable sources. Credence Family Office Private Limited however does not warrant the accuracy, reasonableness and/or completeness of any information. For data reference to any third party in this material no such party will assume any liability for the same. Credence Family Office Private Limited and/or any affiliate of Credence Family Office Private Limited does not in any way through this material solicit any offer for purchase, sale or any financial transaction/ products of any financial instrument dealt in this material.
We may have included statements/opinions/recommendations in this document which contain words or phrases such as “will”, “expect” “should” and similar expressions or variations of such expressions, that are “forward looking statements”. Actual results may differ materially from those suggested by the forward looking statements due to risks or uncertainties associated with our expectations with respect to, but not limited to, exposure to market risks, general economic and political conditions in India and other countries globally, which have an impact on our services and / or investments, the monetary and interest policies of India, inflation, deflation, unanticipated turbulence in interest rates, foreign exchange rates, equity prices or other rates or prices, the performance of the financial markets in India and globally, changes in domestic and foreign laws, regulations and taxes and changes in competition in the industry. By their nature, certain market risk disclosures are only estimates and could be materially different from what actually occurs in the future. As a result, actual future gains or losses could materially differ from those that have been estimated.
Credence Family Office Private Limited (including its affiliates) and any of its officers, directors, personnel and employees, shall not liable for any loss, damage of any nature, including but not limited to direct, indirect, punitive, special, exemplary, consequential, as also any loss of profit in any way arising from the use of this material in any manner. The recipient alone shall be fully responsible/ are liable for any decision taken on the basis of this material. All recipients of this material should before dealing and/or transacting in any of the products referred to in this material make their own investigation and seek appropriate professional advice. The investments discussed in this material may not be suitable for all investors. Any person subscribing to or investing in any product/financial instruments should do so on the basis of and after verifying the terms attached to such product/financial instrument. Financial products and instruments are subject to market risks and yields may fluctuate depending on various factors affecting capital/debt markets. Please note that past performance of the financial products and instruments does not necessarily indicate the future prospects and performance thereof. Such past performance may or may not be sustained in future. Credence Family Office Private Limited (including its affiliates) or its officers, directors, personnel and employees, including persons involved in the preparation or issuance of this material may; (a) from time to time, have long or short positions in, and buy or sell the securities mentioned herein or (b) be engaged in any other transaction involving such securities and earn brokerage or other compensation in the financial instruments/products discussed herein or act as advisor in respect of such securities/financial instruments/products or have other potential conflict of interest with respect to any recommendation and related information and opinions. The said persons may have acted upon and/or in a manner contradictory with the information contained here. No part of this material may be duplicated in whole or in part in any form and or redistributed without the prior written consent of Credence Family Office Private Limited. This material is strictly confidential to the recipient and should not be reproduced or disseminated to anyone else. Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing. Insurance is a subject matter of solicitation.
