Summary

  • Allocation: The Income Selection Strategy is an actively managed strategy focusing on multiple assets classes that offer a regular source of income. The main source of income is Developed Market Bonds with a minimum allocation of 80% complemented by High Income equities.
    • The bond allocation is focused on corporate bonds issued in Europe and in the US with a targeted yield of 4% to 8%.
    • The equity allocation is focused on income stocks that display high dividends and/or share buybacks on the European and US markets.

  • Performance: The return of the strategy is 5.3% annualized over the last 10 years (with 6% volatility) compared to a 3.3% annualized total return for the Eurostoxx with a 15.6% volatility.
    • Risk Management: The strategy offers a steady return for investors and wealth managers while lowering volatility and weathering strong adverse market conditions much better than equity markets.
    • Returns: Equity holders have not been rewarded for the extra risk they take in a pure equity fund. The income strategy has clearly outperformed equities and offers a volatility close to 2.5 times lower.

Performance of the strategy

perf nov2018

 Income Selection StrategyEurostoxx 50 (total return)
Annualized return +4.39%  +3.40%
 Volatility 4.05% 11.13%
     
2018 -2.44% 0.04%
2017 +6.62% +9.96%
2016 + 1.35% +4.78%
2015 +0.1% +7.4%
2014 +6.9% +4.9%
2013 +6.4% +22.7%
2012 +14.3% +19.7%
2011 +2.6% -13.2%
2010 +9.6% -1.8%
2009 +30.1% +27.0%
2008 -19.8% -41.8%
2007 +0.4% +10.4%
2006 +7.1% +15.4%

Important Disclosure

Starting January 2006 .The performance indicated for the strategy below is calculated using the following combination of bond indexes and equity indexes
Total Bonds : 85% (US investment Grade 21.25% - US High Yield 21.25% European Investment Grade 21.25% - European High Yield 21.25%),
Total Equity 15% (US high dividends equities : 7.5% - European high dividend equities 7.5%).
Starting October 2015. The performance is for Share class A1
PCA Provalia Sarl, General Partner of PCA SICAV-SIF, SCA – Provalia Income Selection Fund :  Authorized & Regulated in Luxembourg by the CSSF.