Sequential Equities Strategy (SEQ)

Offering a unique opportunity for individuals to participate in an innovative and professionally managed approach to equity investments.

What is Sequential Equities Strategy?

The Sequential Equities Strategy (SEQ) provides a unique opportunity for individuals to participate in an innovative and professionally managed approach to equity investments.

SEQ's objective is to outperform the S&P/ASX 300 Accumulation Index whilst achieving a lower level of volatility and effectively managing risk. The philosophy has evolved from a fundamental belief that selecting an equal weighted portfolio of quality stocks invested across leading industries will generate outperformance relative to the benchmark index.

This disciplined and methodical approach, combined with Ord Minnett, provides an innovative investment platform. SEQ solves the security, liquidity and transparency requirements of today's investor.

Nuts & Bolts

Discover the world of SEQ

Objective & Philosophy

SEQ's objective is to generate medium to long term capital growth through investing in a diversified portfolio of leading Australian companies. By selecting an equal weighted portfolio of quality shares invested across leading industries, whilst effectively managing risk, this will generate outperformance to the benchmark index (S&P/ASX 300 Accumulation Index).

Approach & Exposure

A quantitative model is used to apply a methodical and disciplined approach to selecting a leading edge portfolio of up to 40 companies from the S&P/ASX 300 Index. SEQ applies dynamic overlays that can vary exposures from stocks to cash as market conditions warrant. Asset class exposure of Australian Equities 40% - 100%, and Cash 0% - 60%.

Distribution & Reporting

Income derived from the SEQ Strategy from equity dividends and cash distributions are re-invested back into the SEQ portfolio. Clients enjoy full access to weekly and monthly SEQ updates, valuation statements, quarterly investment reports, annual distribution and tax statements via PARS. Investors also have access to their account from Ord Minnett's secure client website.

How SEQ Invests

The SEQ approach applies monthly filters to select the portfolio (Module 1), and daily filters (Module 2 and 3), to manage the risk in the portfolio.

SEQ Process Graphic

Module 1

Stock selection Module 1 applies a series of initial filters to select a diversified portfolio of up to 40 leading stocks from the S&P/ASX 300 Index. Risk within the portfolio is managed through equal weighted allocations and weight limits at the individual stock and industry group levels.

Module 2

Directional Module 2 ensures the portfolio's exposure is maximised during growth phases and minimised during downturns in the market. It addresses the portfolio's systemic and stock specific risks by applying directional overlays that track the trend at the Stock, Industry Group and Index levels.

Module 3

Valuation Module 3 utilises two different proprietary market indicators - the Measure of Trend Intensity (MTI) and Broad Market Index (BMI). The MTI reduces / increases individual stock exposures during periods of excessive price movements (positive or negative). The BMI works at the portfolio level. It reduces exposure across all stocks if the market is seen as being overbought, and increases exposure if the market is seen as being oversold.

SEQ Performance

The SEQ approach applies monthly filters to select the portfolio (Module 1), and daily filters (Module 2 and 3), to manage the risk in the portfolio.

SEQ Stats
SEQ Performance Graph

SEQ Monthly Updates

SEQ 2020 October Monthly Update

SEQ 2020 September Monthly Update

SEQ 2020 August Monthly Update

Your SEQ Manager

  • Ernesto Santone

Ernesto Santone

Ernesto Santone - Private Equity Manager

Ernesto Santone is a Private Equity Manager who has over 20 years of direct experience in investment markets having held various roles both in Australia and the UK.

Having commenced his career at the ASX, he then moved on to be an Equity Dealer and mainly an Options Dealer with Ord Minnett. After various roles in the UK, he then returned to Ord Minnett Private Wealth and commenced the SEQ Strategy.

Ernesto holds a BCom – University of Western Sydney and is an Accredited Derivatives Adviser.

Ernie Santone is a Representative of Ord Minnett Ltd, holder of AFS licence 237121 and ASX Market Participant. This document contains general financial advice only and does not consider your personal circumstances. Past performance is not a reliable indicator of future performance.

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