Prabhudas Lilladher Multi-Asset Dynamic Portfolio

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Prabhudas Lilladher Multi-Asset Dynamic Portfolio

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Fund snapshot

Year of Inception : 07 June 2021

Fund Manager Name : Siddharth  Vora

About Company – Mr. Prabhudas Lilladher Sheth established a stock brokerage firm in India in 1944 with the goal of becoming the country’s premier financial services provider. It’s been a long road since then. A successful path built on strong principles, unwavering commitment to quality, and an attitude of excellence. These foundational ideas, which are ingrained in our company culture, have led us to the peak we have reached today. PL has grown from a single brokerage firm to a one-stop-shop for all financial services for businesses throughout the years.

PL delivers a complete range of services through a team of devoted specialists and a countrywide distribution network of locations, franchisees, and associates.

Fund Overview

Multi-Asset Dynamic Portfolio is a quantitatively driven, trigger-based tactical asset allocation strategy that uses Index Funds or ETFs to provide passive exposure to asset classes, eliminating stock and sector selection risk and focusing solely on asset allocation to achieve absolute superior risk-adjusted returns across economic and market cycles.

Prabhudas Lilladher’s Quantifi division specialises in quantitative research and investment management. Quantifi’s Multi-Asset Dynamic Portfolio (MADP) is a quantitatively based tactical asset allocation approach that solely invests in passive products (index funds and ETFs). The technique is only offered as a discretionary PMS to minimise investor greed and panic.

Instrument Details

  • The strategy invests in the following instruments based on liquidity, AUM, tracking error, vintage, impact cost, expense ratio, market share, and asset class representation to get exposure to asset classes.
  • Benchmark: 80% Crisil Hybrid 50:50 – Moderate Index + 20% Domestic Gold Price in INR

Methodology

The method employs nine proprietary meters as a toolset for determining asset allocation:

Multi-Asset Momentum: Trend

This indicator reflects the overall trend in all asset types. We utilise a variant of the Dual Momentum approach that considers both the absolute and relative trend of asset classes and serves as a confirmation tool.

Gold Meter: Gold momentum

It measures gold’s momentum by comparing its price-performance to that of other asset classes such as EM and DM stocks, commodities, and investors’ net long holdings.

Technometer: Technical Risk- Reward

It looks for reversals and breakouts utilising a variety of technical indicators owned by investors to analyse the Equity Market Cycle – for both the Nifty 50 and the Nasdaq 100 – from a Technical Risk Reward Perspective.

Sentimeter: Sentiment

It reflects the mood of the domestic equities market. We build a bullish and bearish index based on high-frequency market mood indicators.

Relative Value meter

The relative value meter measures how appealing small and midcap stocks are compared to large-cap stocks.

Global RORO: Risk Appetite

This risk on-risk off indicator measures global risk appetite by comparing relative risk and reward across developed and emerging market stock and debt instruments.

Cyclometers: Equity market cycle

Using high-frequency valuation indicators, Cyclometer follows the stock market cycle by measuring valuation zones and the Nifty 50 index trends.

Monetary Meter: Monetary cycle

It measures the steepness of the yield curve and market liquidity, both of which impact bond yields and thus bond prices. This meter monitors the interest rate environment as well as the money supply.

Macrometer: Economic Cycle

It analyses 25 monthly economic indicators to determine the level of the economic cycle and its direction. We divide periods into five macro regimes based on the amount and speed of economic activity: Strong Growth, Steady Growth, Deceleration, Recovery, and Slowdown.

Macrometer Global: Quantifying health of the economy

The ‘Macrometer’ is based on analysing 25 monthly economic variables to determine the level of the economic cycle and its pace. We divide periods into five macro regimes based on the amount and speed of economic activity: strong growth, stable growth, deceleration, slowdown, and recovery. Given the lag in reporting official GDP figures, Macrometer serves as a leading indicator of economic growth, indicating where the economy is headed before the government releases official figures. The indicator is refreshed monthly.

Macrometer Domestic: Quantifying health of the economy

The ‘Macrometer’ is based on 15 monthly economic indicators to determine the level of the economic cycle and its pace. We divide periods into five macro regimes based on the amount and speed of economic activity: strong growth, stable growth, deceleration, slowdown, and recovery. Given the lag in reporting official GDP figures, Macrometer serves as a leading indicator of economic growth, indicating where the economy is headed for before the government releases official figures. The indicator is refreshed monthly.

Monetary meter for Debt Valuations

The monetary meter measures the steepness of the yield curve and market liquidity. The indicator is refreshed monthly. We substitute the delayed data with data available at a greater frequency since economic data lag. We use changes in oil price as a proxy for current account balance and changes in money supply as a proxy for inflation, for example.

Cyclometers: Capturing the equity value at the right time

The cyclometer shows us if the Nifty 50 index is highly overpriced, overvalued, fairly valued, undervalued, or deeply discounted at any given time. The indicator is refreshed daily.

Relative Value Meter

The Relative Value Meter measures how appealing mid-and small-cap stocks are in terms of risk-reward compared to large-cap stocks. It indicates whether the Nifty Smallcap 250 index is very overpriced, overvalued, fairly valued, undervalued, or deeply discounted compared to the Nifty 50 index at any given time. The indicator is refreshed daily.

Investment Objective

The Relative Value Meter measures how appealing mid-and small-cap stocks are in terms of risk-reward compared to large-cap stocks. It indicates whether the Nifty Smallcap 250 index is very overpriced, overvalued, fairly valued, undervalued, or deeply discounted compared to the Nifty 50 index at any given time. The indicator is refreshed daily.

Investment Strategy

Our multi-asset strategies are dynamic and employ a tactical asset allocation strategy based on our unique quantitative algorithms and indicators. Our automatic proprietary quantitative and fundamental algorithms create signals that allow us to move between local and foreign shares, gold, corporate bonds, gilts, and liquid funds.

About Fund Manager

Siddharth Vora

Siddharth Vora

Siddharth Vora is a Fund Manager at Prabhudas Lilladher’s PMS and the head of Prabhudas Lilladher’s Investment Research & Product Strategy. He is in charge of the Quantitative Multi-Asset and Equity Investment Strategies. He is a SEBI-registered Research Analyst and Investment Advisor with a CA, CFA, and an MSc (Management in Business Excellence) from the University of Warwick in the United Kingdom.

Reasons to Invest in Multi-Asset Dynamic Portfolio

Tactical Multi-Asset Investing

Multi-Asset Dynamic Portfolio is a portfolio that combines stability, safety, and growth in one package, making it simple to invest in various asset classes. Multi-Asset Dynamic Portfolio is a multi-asset fund that invests in various asset classes across various periods to generate tactical returns.

 

Quantitative Approach

The approach makes asset allocation decisions using unique mathematical algorithms, eliminating human emotions and biases.

 

Investment in Low-Cost ETFs and Index Funds

Rather than picking out individual securities and acquiring them separately, the focus is on gaining exposure to the correct asset class at the right moment. This is accomplished by purchasing low-cost exchange-traded funds (ETFs), some of which have expense ratios as low as 0.01 per cent.

 

Lower Risk

Because the approach invests in stock index ETFs, the dangers of having a concentrated portfolio are greatly minimised. In addition, the approach invests in highly rated debt instruments (AA and above), removing credit and liquidity concerns.

 

Performing Across Market Cycles

By tactically diversifying across asset classes, our quantitative method protects your wealth from market collapses while also allowing you to participate in trending asset classes.

 

Trigger Based Rebalancing

Instead of a predetermined time interval, our flexible methodology determines when to rebalance based on market movements.

 

International Exposure

The Nasdaq 100 index exposes some of the fastest-growing and biggest technology firms. Geographic variety and access to firms in the world’s largest economy are provided by the S&P 500. For Indian investors, dollar assets provide significant rewards.

Book a call with our experts

For any queries, contact us on Mobile: +91 95616 10108, Landline: 020-48627339,Toll Free: 1800 210 1995, Email: [email protected]     Whatsapp-logo

Disclaimer: Investing Involves Risk. This document is for information purposes only and should not be viewed as a legal offering document or solicitation. Offers to invest in this fund are made only by the Discretionary Portfolio Management Services Agreement. Past performance does not guarantee future results and there is no assurance that the managed accounts will necessarily achieve their objectives. We do not guarantee any returns in the hand of investors not we take any sort of accountability for the performance of the scheme. The above-mentioned data is collected from the respected Fund house please verify the same at SEBI website.