Investment solution

Emperor Asset Management has a unique, algorithm-based quantitative strategy.

The strategy targets two classes of companies:
Those with a high dividend yield. High dividend shares are identified through historical and forecast dividend yields.
Those with high-momentum. High-momentum shares are those with high returns over the past three to twelve months.

The fund holds a portfolio of 24 shares.

We ask you to complete a risk profile assessment, which determines which of these shares are allocated to your account.
If you are a conservative client, we would consider investing 50% of your capital in shares with a high dividend yield, and the remaining 50% in shares with high-momentum that deliver capital growth.

Certain shares can be excluded

For example, if you are prohibited from owning a specific share because of Shariah law, then your account will be flagged as such. That share won't be added to your portfolio if the fund invests in it.

Gearing and risk management

We assign gearing according to your required return on investment, or the capacity of risk that you can afford to take.

The gearing structure ranges from 140% to as high as 200% for clients with a large appetite for risk.

Gearing can be adjusted according to market conditions. In normal conditions, this is 25% of the difference between target and current levels In crisis times, this could be up to 80% of the same difference

Higher levels of gearing yield higher expected returns, but increase the level of risk associated with the investment.

We include alpha, beta levels, upside and downside capture in your daily reports so that we can manage your expectations about the risk involved.

Income and capital growth

With Emperor, you can receive a monthly income from the cash and dividend component of your investment. You can also choose to reinvest this income into your investment, preserving your capital at the same time. Investments are made into the top 120 JSE listed companies that pay dividends, with investments in:

• Securities
• Unit trusts
• Derivatives
• Foreign securities and bonds
• Money market instruments
• Over-the-counter investment products

Portfolio reviews

Portfolios are reviewed every 2 to 3 months resulting in three actions:

• Once position changes are made, shares with the lowest ranking are sold and the top ranked stocks are bought
• Overweight positions are reduced
• Sector balance exposure is retained

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