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PL Asset Management’s (the asset management arm of Prabhudas Lilladher Group) revolutionary strategy, AQUA PMS, has marked its first anniversary with outstanding performance, consistently ranking among India's top-performing flexicap PMS strategies. The strategy blends cutting-edge quantitative techniques with 80 years of investing wisdom from Prabhudas Lilladher Group, one of India’s most trusted financial services organisations. This synergy has redefined wealth creation for clients and cemented PL's leadership in the quant-based asset management space.

In its debut year, AQUA PMS delivered an impressive 76% return, doubling the performance of its benchmark BSE 500. This translates to an alpha of 37% versus the BSE 500. Investors have shown immense confidence in the strategy, driving its assets under management (AUM) past the INR 340* crore mark within a year.

AQUA, which stands for Adaptive. Quantitative. Unbiased. Alpha, is India’s pioneering style agnostic and style adaptive flexicap equity strategy. Inspired by the adaptability of water, AQUA breaks free from traditional one-size-fits-all approaches. It instead seamlessly aligns with changing macro and market cycles. By systematically eliminating human biases and integrating multi-factor analytics with responsive risk management, AQUA consistently delivers superior, process-driven, performance.

Commenting on the strategy’s success, Siddharth Vora, Head of Quant Investment Strategies C Fund Manager at PL Asset Management, said, “After over five years of development and testing more than 7,500 strategies, we launched AQUA with a simple goal: to deliver sustainable alpha across market cycles. I am thrilled to see us achieving this objective. Our model exemplifies the perfect blend of human insight and machine power, what we term the 'power of Man with Machine.”

AQUA’s investment framework analyses over 1,000 indicators to create an optimal portfolio mix. The strategy aims to invest in the right place at the right time – maximising returns while managing risks.

For example, the company maintained a disproportionate overweight on industrial, energy C utilities, and automobile industry which have significantly outperformed the benchmark. Also, in the past year, Value and Momentum investment styles notably outperformed other strategies. AQUA accordingly adapted its portfolio, showcasing its expertise in maintaining a style-agnostic approach.

Siddharth added, “The USP of AQUA lies in its ability to adapt and evolve with the market landscape. As we look ahead, our goal is not just to keep pace with the market but to stay ahead of it, consistently delivering value to our investors. The journey has just begun, and the potential for growth is immense.”

AQUA is a true blue, 100% quant-based strategy with no human intervention. This enables it to remain benchmark agnostic, and style, sector, C risk adaptive. It simply follows a rules-based, equal-weighted approach that focuses on generating granular and repeatable performance. The result is a portfolio that is optimally diversified, with no concentration risk, working to achieve consistent and sustainable returns

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