One-stop shop for the wealthy

Banking Frontiers - - Highlights - Mo­han@bank­ingfron­tiers.com

L&T Fi­nan­cial Ser­vices is con­sol­i­dat­ing its po­si­tion in the wealth man­age­ment port­fo­lio

L&T Fi­nan­cial Ser­vices is con­sol­i­dat­ing its po­si­tion in the wealth man­age­ment port­fo­lio

L&T Fi­nan­cial Ser­vices, the fi­nan­cial ser­vices arm of global con­glom­er­ate Larsen & Toubro, is keen to strengthen its wealth man­age­ment port­fo­lio. It has re­cently launched a wealth man­age­ment ser­vices unit in Dubai to of­fer wealth man­age­ment so­lu­tions, in­clud­ing ar­rang­ing deals in credit and in­vest­ments, pro­vid­ing ad­vice on fi­nan­cial prod­ucts and ser­vices to the high net worth (HNW) in­di­vid­u­als based in the UAE and the Gulf coun­tries. The unit in­tends to tar­get In­di­ans set­tled in the UAE, who ac­count for $15 bil­lion in an­nual re­mit­tances, own more than 40,000 UAE com­pa­nies and hold in­vest­ments in the coun­try worth an es­ti­mated $55 bil­lion.

“We now have a CAT IV li­censed en­tity in DIFC, Dubai, which caters to NRIs/ for­eign na­tion­als for ei­ther ru­pee or dol­lar in­vest­ment ve­hi­cles,” says Manoj Shenoy, chief ex­ec­u­tive, L&T Cap­i­tal Mar­kets, which is the unit that man­ages wealth man­age­ment port­fo­lio of the com­pany. “We have re­cently ob­tained ad­vi­sory li­cense for cater­ing to large fam­ily of­fices and have started re­ceiv­ing pretty large man­dates over there. Our prod­uct port­fo­lio has been ex­panded to cater to spe­cific client re­quire­ments,” he adds.

DUE DILI­GENCE FRAME­WORK

Shenoy main­tains that the essence of wealth man­age­ment busi­ness is do­ing what is right for the client. L&T Fi­nan­cial Ser­vices has a ro­bust due dili­gence frame­work for se­lect­ing the right prod­ucts for the clients. “We be­lieve in manag­ing risks than chas­ing short term re­turns. Given the easy avail­abil­ity of fi­nan­cial in­for­ma­tion, it is a dif­fi­cult stance as peo­ple ap­pre­ci­ate short-term re­turns more than longterm out­per­for­mance. How­ever, we are very clear on our ap­proach to in­vest­ment and longterm re­turns. We have es­tab­lished our mind share and our propo­si­tion is to con­tin­u­ously en­gage with our clients. We be­lieve in long term re­la­tion­ships and do not cut corners on the qual­ity of ad­vice. That’s what dif­fer­en­ti­ates us from our com­peti­tors,” says he.

The com­pany to­day caters to di­verse clients right from ul­tra HNIs/HNIs to cor­po­rates - large, mid and small. It has also re­al­ized that the first-gen­er­a­tion en­trepreneurs have been big wealth gen­er­a­tors and th­ese peo­ple in their 20s and 30s have a sub­stan­tial amount of wealth and are not sure what to do with it. “We have been hand­hold­ing some of th­ese clients to help them make pru­dent in­vest­ing de­ci­sions,” says Shenoy.

TECH PLAT­FORM

Shenoy main­tains that in this pe­riod of au­to­ma­tion and dig­i­ti­za­tion, it is im­por­tant for a wealth man­age­ment busi­ness to pro­vide clients with a su­pe­rior tech­nol­ogy plat­form and an in­sti­tu­tion­al­ized data driven prod­uct plat­form. “We have on­line as well as mo­bile plat­forms for clients to view their in­vest­ments with op­tions to throw up var­i­ous per­mu­ta­tions and com­bi­na­tions of crit­i­cal data points. On the prod­ucts and ad­vi­sory side, we use a lot of an­a­lyt­i­cal tools to as­cer­tain prod­uct level risk, con­struct port­fo­lios and mon­i­tor port­fo­lios for var­i­ous risk/re­turns pa­ram­e­ters,” he ex­plains.

IN­DIAN HNI

In­dia has seen a steady growth in the num­ber of HNIs over the past cou­ple of years and nat­u­rally the mar­ket for wealth man­age­ment too has recorded a cor­re­spond­ing growth. For L&T Cap­i­tal Mar­kets, this has thrown up a fan­tas­tic busi­ness op­por­tu­nity. “We have been grad­u­ally gain­ing mar­ket share and have grown at a very fast pace. Our Quar­terly Av­er­age As­sets Un­der Ser­vice (QAAUS) are ap­prox­i­mately `13,000 crore and we grew roughly 46% in Q4FY17. The mar­ket op­por­tu­nity is much larger,” says Shenoy.

He also men­tions that the com­pany has nearly 5500 clients as on Q4FY17. In the distri­bu­tion seg­ment, he plans to fo­cus more on clients with an in­vestible sur­plus of the `5-25+ crore. In the ad­vi­sory busi­ness, he will only look at `50+ crore of as­sets.

Shenoy also says: “To­day, we of­fer full range of fam­ily of­fice ser­vices like in­vest­ment ad­vi­sory, es­tate plan­ning and will ser­vices, tax ad­vi­sory, real es­tate ad­vi­sory etc ei­ther di­rectly or through our em­pan­eled sub­ject mat­ter ex­perts.”

The com­pany has been con­tin­u­ously en­gag­ing with its clients at ev­ery level and it does not do one off mar­ket­ing events. “We have ded­i­cated re­la­tion­ship man­agers for all our clients and the fo­cus is only on cre­at­ing a strong and long-term re­la­tion­ship. We want to add value to our clients by dif­fer­en­ti­ated prod­uct strat­egy, crisp and trans­par­ent com­mu­ni­ca­tion chan­nels, and valu­ing the clients’ trust in us. All th­ese things when put to­gether in uni­son bring an over­all great re­la­tion­ship. Our ded­i­ca­tion to ad­here to ut­most qual­ity of ser­vice makes us stand out for the client,” says he.

Shenoy says the com­pany be­lieves in of­fer­ing the best avail­able in the mar­ket to the client and it does not try to rein­vent the wheel. “Writ­ing a will,” he says, “is one such ex­am­ple. We be­lieve in work­ing in a col­lab­o­ra­tive en­vi­ron­ment, which makes it a true value add for the client. The aim is to be a one stop shop for the client.”

Manoj Shenoy be­lieves the es­ssence of wealth man­agemenet busi­ness is to do what is right for the clients

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