What are the 3 things you learned in 2015?
One of the lessons learnt was to unlearn what you have learned – we saw the year giving us break from the structural data like all-time average low spreads from sovereign to corporate bonds, all-time average high spreads from repo rate to ten year benchmark, all time low of CD issuances as a proportion of scheduled commercial banks deposit base etc.
The other thing which was a daunting challenge was to balance the expectations of investors on return and portfolio quality on the backdrop of falling accrual yields. This challenge allowed me to think out of the box without compromising on the portfolio quality.
Lastly, 2015 was an unprecedented year of volatility. What was very frustrating was that rate cuts did not translate into lower sovereign yields. The learning was that you need to be patient in markets and make volatility your friend.
Advice for budding fund managers
I would say that every step in the ladder is important for success. Although we are living in an age where things move fast but as the saying goes ‘There is no shortcuts to success’ is very apt even in the 4G age and probably will remain true forever. The other thing is that fund managers should not take failures to heart because each failure is a learning experience which prepares us for the future. Lastly, we should all look to keep the child in us alive which is inquisitive, learner and fun-loving.
The most memorable moment of 2015
Despite having many institutional clients and accolades for the same, the most memorable moment has to be the time when I got a compliment from an individual investor about the better quality of portfolio and commensurate returns. It was heartening to note that even a retail investor understands the nuances. This also set me thinking that about the role played by advisors in communicating the importance of debt funds to clients.
Your New Year resolutions
To learn to manage volatility, brace for shorter cycles and have an eye on the global happenings and structure portfolios to take advantage of the same in domestic market. Reading voraciously and taking up short term courses will be another objective to pursue.
