Seneca cuts equity exposure in preparation for 2020 market downturn

Moved into short-duration high yield

Seneca Investment Managers has been reducing its equities exposure in preparation for the end of the bull run in the asset class.

Allocations to equities now stand at 38% for the Seneca Diversified Income fund, 56% for the Diversified Growth fund and 58% for the Seneca Global Income and Growth Trust, the firm said. The equities sold have been moved into specialist assets and short-duration high yield bonds, which the firm said provided inflation protection and offered attractive yields. Peter Elston, CIO of Seneca IM, said he expects the bull run in equities to end in 2019, while predicting an economic downturn in 2020, but warned it was important to be prepared "well in advance". The CIO predicted equity mar...