The aim of Seresia High Income Strategy is to achieve a stable and consistent high income by investing in a mix of high yielding fixed income instruments and high dividend yield stocks. 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. During economic distresses, investors favor high dividend stocks and bond prices slowly increase (i.e. capital gains) as interest rates decline. During economic recovery / growth, cyclical assets tend to outperform high dividend stocks while bond prices depreciate as yields rise. 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
© 2019 Seresia Asset Management