Ultra HNIs, family offices eyeing options to drive steady income? Here’s a W.I.N strategy

The investment landscape in India has witnessed a significant transformation over the last decade in terms of varied asset choices, allocation strategies and risk tolerance. This has been witnessed particularly among ultra-high net worth individuals and family offices.

India’s changing economic landscape and several measures taken by the government to provide ease of investments, including a change in taxation policies, drove increased participation by high-net-worth individuals and family offices.

With India today turning out to be an oasis of opportunities in the backdrop of a challenging global environment, Wodehouse Capital Advisors has designed a strategy to help wealthy promoter families and influential individuals have steady income flows.

The investment banking firm observed a rising trend wherein promoter families are selling their mid-sized businesses as part of their consolidation efforts and accumulating significant corpus funds.
To help them invest the corpus in a more efficient manner, which will ensure steady income, Wodehouse Capital has partnered with investment management firm Alchemy Capital to launch a first-of-its-kind W.I.N strategy.

The W.I.N. strategy aims to create a steady income stream flow for wealthy promoter families while securing their current corpus.

Winning Investment Philosophy
The W.I.N. strategy is an equity fund that aligns with an indicative return on the equity markets year-on-year.Benchmarked against the S&P BSE 500 TRI, the strategy is based on generating long-term, risk-adjusted returns through multi-cap portfolios comprising 14-18 stocks.

It follows the ‘Growth at a Reasonable Price/Premium’ (GARP) investment philosophy, emphasising a qualitative approach to equity stock selection.

It takes into account various factors such as management quality, the scale of the opportunity, valuations, competitive advantage, return on equity (RoE), returns on capital employed (RoCE), and free cash generation, among others.

The fund manager constructs the portfolio, selecting stocks basis fund/strategy mandates.

With a minimum ticket size of Rs 50 crore, the W.I.N. strategy maintains a high-risk profile with an indicative tenure or investment horizon of 3-5 years, primarily investing in equity, with the cash portion
deployed in liquid funds/debt securities and allocating only a minor portion for expenses and incidentals.

The strategy also includes a periodic pay out, subject to the portfolio manager’s discretion, with a moratorium period extending to the end of the following two calendar quarters from the date of investment.

So, in a nutshell, through W.I.N. strategy, wealthy promoter families and professionals can maintain a certain high-profile lifestyle for the foreseeable future, while securing their current corpus.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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