Smart Beta

Rule-based investing
driven by financial
Innovation

Offerings
History
Strategies

OFFERINGS

Forms of Equity Investing

Active Investing Decision of Fund Manager

Smart Beta

Passive Investing Market Returns

Active Investing

Overwhelmingly, investors pursue Active management with the goal of outperforming index by way of astute selection of sectors and stocks.

Belief is that the manager possesses certain qualities that allow him or her to identify superior investments. Presumably, the manager’s process cannot be replicated with simple rules

In the Journey, the manager forms a narrative about why an investment has strong prospects and monitors the investment to ensure it stays true to this narrative

Factor / Smart Beta

Factor investing has established itself as 3rd Pillar of investing between Active and Passive as many active managers have not been able to deliver consistent Alpha

Most Active and Passive Funds are “capitalization-weighted” Strategies. Here the Smart Beta Strategies come in and create consistent Alpha at low cost for investors

Passive Investing

Index Funds/ETF define the Passive form of Investing

Is the Only form of investing with a belief in efficient markets

The simple thing that works for Passive is low cost and it is the root cause of underperformance of many active managers

History

History of Factor Investing

Factor investing is an investment approach that involves targeting specific drivers of return across asset classes. There are two main types of factors: macroeconomic and style. Investing in factors can help improve portfolio outcomes, reduce volatility and enhance diversification.

We have considered factor investing/smart beta investing in the context of equities as an asset class. The endeavour here has been to construct equity portfolios with single or multiple factors with the objective of reducing volatility and outperform benchmark over 3-to-5-year market cycle.

At the fundamental level, factors relating to equities include Size, Momentum, Value, Volatility, Alpha, Quality among others.

Strategies

Equity strategies

Market Leaders

Concentrated Portfolio of 15 Stocks with Sector Cap at 30%

Portfolio construction based on Single Factor

Long only Large cap Strategy

Portfolio rebalancing based on output of the Quantitative Model

Alpha

Long only Multi cap Strategy.

Portfolio of 25 Stocks with Sector Cap at 30%

Portfolio construction based on Multiple Factors

Portfolio rebalancing based on output of the Quantitative Model

New Horizons

Long only Mid and Small cap Strategy.

Portfolio of 20-30 Stocks with Sector Cap at 35%

Portfolio construction based on Multiple Factors

Portfolio rebalancing based on output of the Quantitative Model

Case Study

The legacies we build

Our bespoke services to bring your authentic vision to life.

Pharmaceuticals

Promoter family of a listed pharmaceutical company

This case study pertains to a listed company in the pharma space. The business is run by a third-generation family member. The firm has a professional management team, business interests across the globe and members of the family are amongst the top billionaires in India.

Coming Soon

Information Technology

Promoter of a listed IT Company

This case study pertains to the Promoter of a listed company in the Information Technology space. The Promoter is a first-generation entrepreneur, who has come into significant wealth over the past twenty-five years.

Coming Soon

Consumer Appliances

Single Family Office

This case study pertains to a Single-Family Office whose assets have been generated through the Promoter holdings of the family in one of India’ largest consumer appliance companies that was founded by the principal of the family office. The brand was sold to a foreign company in its entirety. Out of the proceeds received from the exit of the Company, the family carved out three portions of capital for the following:

Deployment in new group company businesses
Financial portfolio
Unlisted investments

Coming Soon

Pharmaceuticals

Large Listed Rubber Chemicals Family

This case study pertains to the various issues that arose for the Promoter of a large, listed rubber chemicals company after a family business separation. As a part of the family settlement, the Promoter needed to obtain access to a substantial amount of funds.

With many multi-layer entities being split between the family, the Promoter also needed to re-structure his various holdings / interests to simplify operations and be able to access the wealth in a tax-efficient manner.

Coming Soon

FMCG

Single Family Office

This case study pertains to an ultra-high net worth family that has diverse businesses in the FMCG space. The family was in need to bring all its affairs under one roof and hence leveraged Waterfield’s expertise to set up a single-family office. Our team was responsible for executing the set-up, incorporating a family constitution and put in place a succession plan.

Coming Soon

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Alternative Investments

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Diversity

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Your legacy awaits

Rule-based investing
driven by financial
Innovation

Forms of Equity Investing

History of Factor Investing

Equity strategies

The legacies we build

Your access to
rich insights

Suit your
growth with

Your legacy awaits

Your legacy awaits

Rule-based investing driven by financial Innovation

Forms of Equity Investing

History of Factor Investing

Equity strategies

The legacies we build

Your access to rich insights

Suit your growth with

Your legacy awaits

Rule-based investing
driven by financial
Innovation

Your access to
rich insights

Suit your
growth with