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
|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 %|
|United Kingdom||62.66 %|
|Asia - Developed||6.22 %|
|Consumer Cyclical||19.57 %|
|Financial Services||19.37 %|
|Basic materials||9.80 %|
|Consumer Defensive||7.90 %|
|Communication Services||6.25 %|
Data provided by Morningstar.
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