Lighthouse Canton Insights Podcast - EP 8: Beyond InHERitance - Navigating Strategies & Technology in an Integrated Treasury & Family Office

Welcome to the Lighthouse Canton Insights Podcast, where we illuminate the latest developments in global investment and share expert strategies to help you navigate today’s complex financial landscape. In each episode, we bring you conversations with leading professionals from Lighthouse Canton and beyond—offering insights on market trends, investment opportunities, and the strategies driving success. 

In this third episode of the mini-series “Beyond InHERitance” exploring women's perspectives on finance and family legacy, we shine a light on a powerful and transformative trend: women leading the charge in finance. We speak with Anjali Dave, the Global Head of Treasury at ACG Worldwide, who shares her remarkable journey from a passion for numbers to becoming a trailblazer in the finance world. With a career spanning across renowned organizations like Essar Group and Enercon India, Anjali brings a wealth of knowledge on risk management, investment strategy, and team leadership.

Join us as we dive into Anjali’s approach to streamlining treasury operations, shifting from a debt-focused to a more balanced portfolio strategy, and exploring the growing role of women in finance. She also shares her advice for aspiring women in the industry and the importance of mentorship, self-assurance, and continuous learning in shaping a successful career.

Whether you're an investor, a finance professional, or simply someone interested in the evolving world of finance, this episode is packed with valuable insights. Tune in to hear how women like Anjali are reshaping the financial sector and paving the way for future leaders.

Transcript

Speaker_00 - 00:07
Hello and welcome!

You're listening to the Lighthouse Canton Insights Podcast.

This series is brought to you by Lighthouse Canton, a global investment institution that provides wealth and asset management services to accredited investors.

Here on this podcast, we look to shine a light on the market developments and share strategic insights to help you navigate the global investment landscape.

Today's episode will be bringing you conversations from leading experts in various views, including Lighthouse Canton's own investment team and specialists.

This podcast was recorded on 17 October 2024 and was prepared based on information available as of the date of recording.

Please stay tuned for the important information at the end of this episode. Welcome everyone to the Lighthouse Canton Insights Podcast series.

Speaker - 01:01
Today we are shining a light on a powerful trend, women leading the charge in finance.
Research tells us that women leaders often prioritize building a strong foundation.
Their medicalists in research take calculated risks and focus on creating long-term socially sustainable businesses.

This series dives into experiences of these remarkable women leaders. We'll be speaking with powerhouses and family offices and corporate treasuries, getting their first-hand insight into navigating the industry.

And joining us today is Anjali Dave from ACG Worldwide.

And we're absolutely thrilled to welcome her all the way from the bustling financial hub of Mumbai.

Anjali, a true multi-talented leader, is currently the Global Head of Treasury at ACG World. Her impressive journey was experienced with esteemed organizations like Esar Group and Enercon India Limited.

But her journey began much earlier. Back in college, a passion for numbers burst to a crude. Fast forward and Anjali is now a powerhouse in industry, wielding a skill set that would make any financial whiz jealous. Risk management, financial risk, ethics operations, treasury, derivatives, you name it, she's mastered it. Today we'll delve into Anjali's fascinating career, uncovering the insights and wisdom that continue to shape the financial landscape.

Speaker - 02:31
Anjali, a very warm welcome.

Anjali - 02:33
Thank you so much for the warm welcome. I'm excited to be here. Let's dive in.

Speaker - 02:39
So happy to have you here with us, Anjali, and let's get straight to it.

In your current role, you manage a large team and various functions. How did you streamline the various processes? What experiences have shaped your approach to this process?

Anjali - 02:55
In my current role, overseeing a large team and diverse functions, I have focused on streamlining processes to enhance efficiency and effectiveness. One significant initiative was establishing a centralized forex and finance desk for the entire group, which facilitated smoother operations and improved coordination across departments. 

Drawing from my experience, I formulated a comprehensive FOREX risk management policy and successfully implemented it across the group, ensuring better risk mitigation and financial stability. To further optimize operations, I developed standard operating procedures for investment portfolios, laying down clear policies and procedures as guiding framework for decision making. This SOP has been instrumental in maintaining consistency and adherence to best practices over the years.

Additionally, I spearheaded a discussion with credit agency, resulting successful upgrade of our rating from AA- to AA+, reflecting our commitment to financial excellence and stability.

Overall, my approach has been shaped by experience in implementing sustainable policies and procedures, fostering collaboration across functions, and prioritizing strategic initiatives that drive long-term value for the organization.

Speaker - 04:22
That's incredible Anjali, the way that you have streamlined processes across all investments in your organization.

So tell me Anjali, being the first woman treasury head must have been quite a journey. How have you found the environment and culture in your organization? Have you felt supported and encouraged in your role?

Anjali - 04:41
Ratna, as a first woman treasury head, my journey has been marked by an environment and culture within our organisation that's highly encouraged. At ACG, we embrace progressive values such as care and collaboration which are embraced at all levels.
We are also encouraged to challenge everything within ACG.

Like the core principle of listening, we are supposed to ask a lot of questions and also removing personal bias to genuinely consider others point of view. What it does is that this open-mindedness fosters an environment where exploring new ideas is valued crucially and this is very crucial in dynamic market like equity, debt or FOREX. The organizational culture promotes a willingness to consider and receive new and diverse ideas, keeping me flexible and adaptive to new experiences and opportunities.

Our management has been extremely supportive and I thoroughly believe and feel that in building trust, transparency and open communication are the two important and vital qualities and these are very vital for managing my important team as a treasury head.

I have always prioritized creating an atmosphere where team members feel very valued and heard and encourage them to share their ideas, challenge and feedback. Moreover, I think it is my responsibility to create a positive and supportive environment where my team feels safe to take risks and learn from their experiences.

I have invested in their personal growth through job rotation, I have offered them opportunities for new roles, I have also mentored them in higher positions and also involved them in new tasks. I strive to cultivate a cohesive team that works collaboratively towards our shared goals. Ultimately, this supportive environment not only enhances the team performance, but it also contributes to a more fulfilling workplace environment.

Speaker - 06:50
Thank you so much Anjali for sharing your leadership strategy and I'm sure our audience will find it very interesting. We've heard about your shift towards a more balanced portfolio strategy. How did this come about and what prompted the move away from a debt-focused approach that you had earlier?

Anjali - 07:07
Ratna, that's a very good question. Our shift towards a more balanced portfolio strategy originated from ACG Treasury's initial focus on debt, where we maintained a very aggressive approach. We were often undertaking credit investments. This strategy was effective at that time but required a reassessment as market conditions evolved. With the transition from first generation to the second generation of leadership, we received approval to increase our equity exposure. This shift prompted us to take a closer look at our overall investment strategy and consider the benefits of diversification. We were quick to recognize the potential for growth in the equity market.

We developed a comprehensive policy framework to accommodate this revised mandate. This framework guided our decision making as we began relocating funds to equity investment. Throughout this transition, educating management about market dynamics was very crucial. We understood that only by experiencing market volatility first-hand, we could truly appreciate the challenges posed by unfavorable market conditions.  This awareness reinforced the need for adaptability and a more proactive approach to investment.

Speaker - 08:28
Thank you so much Anjali for sharing your equity strategy and it's very interesting to know that earlier you were a debt focused treasury and now you are also and now you have introduced equity as an asset class. Not only equity but also alternatives in your asset allocation.

Thank you so much for sharing your equity strategy Anjali. I know that you were a debt-focused treasury and you have introduced not only equity but also alternatives into your asset allocation.

Diving into the nitty-gritty, we'd love to hear your thoughts on diversifying portfolios and your views on alternatives like private credit, venture equity, venture debt etc.

Anjali - 09:11
Ratna, navigating portfolio diversification and considering alternative investments like private credit, venture debt, it's essential to assess various factors to make an informed decision. We have an extensive due diligence process to each investment.
It would be difficult to deep dive into each of the due diligence processes, but I will just touch upon the few important aspects here.

For example, if I'm looking for private equity, my focus area would be the track record and the reputation of the management along with investment strategy alignment with overall portfolio.

However, for private debt or structured debt, I will look into the credit worthiness and financial stability of the borrower, the collateral or the asset backing the debt. But in case of venture debt, my focus would go on to the stage of the company and its growth prospects along with the strength of the business model and management team. For performing credit, I will be looking into the stability and reliability of cash flows.

More importantly, for each of these investments, the risk mitigation strategy is crucial.
We carefully evaluate these criteria for each type of alternative investment and this helps us to diversify our portfolio meaningfully. 

Speaker - 10:29

Let's talk tech. How do you leverage tech platforms for investment and portfolio management? Do you think there is a need for more sophisticated tools to support data-driven decision making? And what kind of impact do you think these tools could have on the industry?

Anjali - 10:46
In managing our multi-asset class portfolio, we have encountered challenges in finding tech platforms that adequately support our diverse investment. While many investment platforms focus on asset classes, with easily determinable prices such as equities, we face difficulties with investments like certain AIFs in real estate and private equity where valuation is complex. This results in a fragmented approach with some valuation management software and others on Excel, leading to a time-consuming and cumbersome process.

Though we have explored various investment platforms, we are yet to find one that fully meets our needs across all asset classes. As a result, we currently monitor our investment using Excel. However, Excel lacks advanced analytic capabilities, which we supplement through tools like Bloomberg. That is undoubtedly, as you said, a need for more sophisticated tech tools that seamlessly support data decisions across diverse asset class.

Frankly, Ratna, I am very excited about the upcoming comprehensive platform, software platform from Lighthouse Canton that you mentioned. It seems like it would effectively address the specific challenges faced by corporate treasury and family offices and I really look forward to exploring this potential to streamline our operations.

Speaker - 12:16
Thank you Anjali. Your career journey is incredibly inspiring, especially considering the landscape for women in finance. Can you share some pivotal moments or challenges that you faced as a woman in the industry?

Anjali - 12:28
My career journey at ACG has been marked by several pivotal moments and challenges, particularly as a woman in the finance industry. A standout moment for me was recently receiving the Women of Substance Award at ACG group level. It was a humbling experience made even more special by the presence of those who know me best.

As I look back on the past year, I am grateful for many opportunities and experiences that have shaped who I am today. While my journey has been largely encouraging, one significant challenge I encountered was establishing a centralized desk for forex and debt finance, which had previously been managed by individual business units. This requires overcoming resistance to change and advocating for more streamlined approach. Another key movement was developing detailed SOP for investment desk, ensuring clear policies and procedures were in place.

Insisting on internal audit for SOPs was crucial for maintaining accountability and entrance to established processes. During the third year at ACG, which coincided with COVID, I faced challenges of shifting focus from debt to equity amidst volatile markets.

Developing a robust risk management framework was essential, providing guidance and stability during adverse market movements. These experiences highlight the resilience and determination required to navigate these challenges as a woman in finance and underscore the importance of adaptability and strategic thinking in overcoming obstacles and driving success.

Speaker - 14:11
Thank you for sharing this, Anjali. I know that when you have to make some changes in the way things work, a lot of people are resistant to change and that could pose some problems.

How do you see the trend of women taking more control of their financial decisions, especially in the family that you manage?

Anjali - 14:29
As someone who manages the personal wealth of family members, I have observed a notable trend of women taking control of their financial decisions. 

Within the family, women are increasingly proactive and engaged in managing their finances, displaying clear understanding and articulation of their risk tolerance levels, investment objectives, and even willingness to learn and actively participate in decision-making processes.

This shift reflects a broader societal trend towards empowering women with financial knowledge and autonomy, enabling them to make informed decisions or choices that align with their long-term financial goals and aspirations.

Speaker - 15:20
It's very encouraging to note that the women in the family are taking decisions themselves. It is a huge step towards enabling women to have financial control.
Thank you for sharing that, Anjali. And lastly Anjali, what advice would you give young aspiring women who wish to pursue a career in investments?

Anjali - 15:31
First and foremost, I would encourage young aspiring women to believe in themselves and their capabilities. In a field like investment, finance, confidence and self-assurance are invaluable assets.

Secondly, I would emphasize the importance of continuous learning and staying abreast of industry trends and development. They should seek out opportunities for mentorship and professional growth and never underestimate the power of networking.

Lastly, don't be afraid to challenge the status quo and carve out your own path. Your unique perspective and contributions are vital in shaping the future of the industry. Remember, with dedication, perseverance, and passion for what you do, the possibilities are limitless.

Speaker - 16:28
Thank you Anjali for the valuable insights and it was really great speaking with you.

Anjali - 16:33
Thank you Ratna, I appreciate the opportunity to share my thoughts. It's been a pleasure speaking with you and I hope my insight resonates with those aspiring to pursue a career in investment.

Remember, every step you take is important and your contribution can make real difference in the industry. I wish all young women the best on their journeys. Thank you.

OUTRO - 16:59
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