The aim of Seresia High Income Strategy is to achieve a stable and consistent high income. The Strategy is a multi-asset-all-weather portfolio solution for medium risk investors. Over the long term, we expect this Strategy to achieve moderate capital growth and maintain the value of portfolio assets above inflation. Seresia High Income Strategy is suitable for long term institutional portfolios spanning over many business cycles.
This Strategy places special attention on this trade-off between yields/income and capital gain/loss over the boom bust cycles and for this, Seresia deploy many fundamental and quantitative tools for active dynamic asset allocation, market cycle timing and volatility controls.
For Seresia High Income Strategy, the standard portfolio research protocol (see Process) is adopted. The Strategy begins with a macro/business cycle model which will determine the asset allocations, then followed by security selection models based principally on our in-house multi-factor equity model and our team’s qualitative research. Lastly we apply stringent risk controls to contain excessive portfolio volatilities
Seresia adopt the best global practices in designing our investment process. They key characteristics of our process are:
Seresia firmly believe that the business cycle is vital to beta management. We use an internally developed indicators to forecast the cyclical behaviors or trends of various countries, regions and sectors. The data and information about the cycles / sub-cycles will be the key inputs for our Global Beta Models and later be used for making Asset Allocation decisions.
Seresia security selection begins with the use of our Multi-Factor Quantitative Model and overlay it with a value tilted fundamental analysis. We create a massive big database based on the securities in our investment universe. On a regularly basis, buy or sell signals will be generated by the Security Selection Models. The security selection process will also involve some degree active investment decisions.
Risk management is an essential part of Seresia process. Seresia devised our own return-probabilistic-model and applied it across different asset classes/securities. The two main function of our Risk Model are:
Seresia also ensure that there are proper procedures to prevent and mitigate any risk arising from investment restriction, breaches and violations and trading blunders.
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