Seneca Global Income & Growth Trust

Mixed Asset 41-60% Equity

Rated Fund 2016-2018. Adopts a value-based approach

This trust was given its absolute return mandate in 2011 and taken over by its current management team in 2014. Its aim is to produce an annual total return of at least inflation plus 6 per cent, with low volatility and dividends growing at least in line with inflation.

It is among the most expensive of our selections, with ongoing charges of 1.61 per cent. For that, investors get access to a five-strong team of specialists and a portfolio that combines direct investment with holdings in third-party funds, both open- and closed-ended. Its current yield is 3.5 per cent and income is paid quarterly.

Peter Elston is responsible for asset allocation, while Alan Borrows focuses on fixed income. Mark Wright is responsible for UK equities, Tom Delic for overseas equities and investment themes, and Richard Parfect for specialist assets. The managers take active allocation decisions within defined ranges. Their approach has been described as 'multi-asset value investing', with investment decisions being based on both quality and price in order to generate long-term outperformance.

Near the end of 2017, they were turning bearish, trimming allocations to equities to 57 per cent of assets and adding to short duration high-yield bonds and specialist assets in preparation for the end of the bull market. The largest specialist asset holdings included an investment in unquoted financial services firm AJ Bell and a range of investment trusts investing in infrastructure, aircraft leasing and specialist debt.

Shares in the trust have traded around or at a small premium to net asset value since early 2016.

Narrative and ratings content all as of 01 January 2018.

See all Money Observer rated funds
Seneca Global Income & Growth Trust
Seneca Investment Managers Limited
Closed Ended Investment Company
Flexible Investment
1.43 %
Risk Rating
3 Year Sharpe
4.1 %
Fund Size
£ 78.14 million
Discount Premium
The Company aims to achieve a total return of at least CPI plus 6% p.a. after costs with low volatility, and with the aim of growing aggregate annual dividends at least in line with inflation, through the application of a Multi-Asset Value Investment Policy. The Company will invest in a diversified portfolio principally comprising UK equities and fixed interest securities but also other asset classes. The investment policy allows the Company to invest in overseas equities and to diversify into property, bonds and alternative assets, the Company can take advantage of a wider range of investment opportunities and reduce the risk profile of the Company‘s portfolio.
Holding %
Royal London Shrt Dur Glbl HY Bd Z Inc 4.24 %
CC Japan Income & Growth Ord 3.17 %
European Assets Ord 3.04 %
Samarang Asian Prosperity A1 Dis 2.98 %
Schroder Asian Income Maximiser Z Inc 2.87 %
Aj Bell Holdings Limited 2.83 %
International Public Partnerships Ord 2.55 %
Liontrust Eurp Enh Inc Instl Hdg Inc 2.52 %
IP European Equity Income Z Inc 2.44 %
Prusik Asian Equity Income B USD 2.28 %
Region %
United Kingdom 62.75 %
Eurozone 9.35 %
Japan 6.85 %
Asia - Developed 6.22 %
Sector %
Industrials 25.09 %
Consumer Cyclical 19.57 %
Financial Services 19.37 %
Basic materials 9.81 %
Consumer Defensive 7.90 %
Communication Services 6.24 %
Seneca Investment Managers Limited
L2 3YL, Liverpool, United Kingdom
Legal Structure
Closed Ended Investment Company


Peter Elston
Joined 03/01/2016

Data provided by Morningstar.

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