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Every Client matters

Credence Private Wealth aims to offer investment solutions to individuals who do not fall under the realm of family office advisory services, as yet. We remain committed to offer our bespoke services that offer the best risk adjusted return to investors.

Our
Strong pillars

Intellect Qualified and knowledgeable team having rich experience in personal finance domain

Client-Centric Focused on providing customized solutions to client needs

Integrity Behind every decision we make

Consistency In delivery of expertise and solutions

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.

Our
Offerings

Wealth Management

Analytics, Insights and Reports

Insurance Solutions

Treasury Advisory

Value Added Services

Tax Planning & Advisory

Investment Banking

Lending & Debt Restructuring

Estate Planning & Legal Services

Concierge

Investment
offerings

  • MUTUAL FUNDS
  • PORTFOLIO MANAGEMENT SERVICES
  • ALTERNATE INVESTMENT FUNDS
  • STRUCTURED DEALS
  • OFFSHORE INVESTMENT SOLUTIONS

Investment
Process

Fund Curation
Process

At Credence, we follow a rigorous process to ensure our valuable customers get easy access to best-in-class investment opportunities (both domestic and international). Here is our five-step process:

Step 1: Top-down analysis and opportunity identification

We believe there are opportunities in some asset classes at all times. We use our investment framework to:

  • 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

The endeavor is to identify a set of appropriate funds under each of the asset classes to ensure product availability in different buckets of investments categories.

  • 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

We do extensive research and analysis on various data points before empaneling a new fund in our product
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

After satisfactory analysis of the fund, we conduct a call with the fund management team to assess the following

  • 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

We regularly monitor fund performance and engage with the fund management team for periodic reviews on various aspects. This is done to ensure that the fund activities are aligned with the overall fund objective, risk management, and targeted IRR.

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

Step 1: Top-down analysis and opportunity identification

We believe there are opportunities in some asset classes at all times. We use our investment framework to:

    • 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

The endeavor is to identify a set of appropriate funds under each of the asset classes to ensure product availability in different buckets of investments categories.

    • 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

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.

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

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

We do extensive research and analysis on various data points before empaneling a new fund in our product 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 &amp; 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

After satisfactory analysis of the fund, we conduct a call with the fund management team to assess the following

    • 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

We regularly monitor fund performance and engage with the fund management team for periodic reviews on various aspects. This is done to ensure that the fund activities are aligned with the overall fund objective, risk management, and targeted IRR.

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

Portfolio Review
Framework