Seneca Global Income & Growth Trust

Mixed Asset 41-60% Equity

Rated Fund 2016-19. Adopts a value-based approach

Seneca Global Income & Growth was given an absolute return mandate in 2011 and taken over by its current managers in 2014. It aims to produce an annual total return of at least inflation plus 6% after costs with low volatility and with the aim of growing dividends at least in line with inflation.

It is among the most expensive of our selections, with ongoing charges of 1.42%. 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 3.9% and income is paid quarterly.

Peter Elston is responsible for asset allocation, Mark Wright for UK equities and Richard Parfect for specialist assets. Tom Delic researches bonds and equities in emerging markets, while Gary Moglione does the same for overseas developed markets.

The managers take active allocation decisions within defined ranges and describe their approach as ‘multi-asset value investing’, with investment decisions being based on both quality and price.

They turned bearish near the end of 2017 and have since trimmed allocations to equities further (to 52% in 2018) in preparation for the end of the bull market. Allocations to specialist assets have grown to 34%, the trust’s largest weighting. This includes exposure to infrastructure, aircraft leasing and music royalties.

The fund bought Hipgnosis Songs, which came to the market in June 2018 boasting its desired attributes of bond-like characteristics, an attractive valuation and the prospect of capital growth and rising dividends.

Shares in the trust typically trade at a small premium to net asset value.

Narrative and ratings content all as of 01 January 2019.

See all Money Observer rated funds
Name
Seneca Global Income & Growth Trust
Manager
Seneca Investment Managers Limited
Type
Closed Ended Investment Company
ISIN
GB0008769993
Sector
Flexible Investment
Launched
19/08/2005
OCF
1.43 %
Risk Rating
4
3 Year Sharpe
1.42
Yield
3.8 %
Fund Size
£ 84.31 million
NAV
176
Gearing
106
Discount Premium
0
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 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 %
Name
Seneca Investment Managers Limited
Address
L2 3YL, Liverpool, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Mark Wright
Joined 12/31/2018

Mark is responsible for UK equity research across Seneca IM’s investment mandates. He is also the lead fund manager of the CF Seneca Diversified Growth Fund. Mark started his career at Seneca IM after graduating from University of York with a BSc degree in Economics. He is a CFA Charter holder and an accredited member of the CFA Institute. Mark has been the Co-Fund Manager on the CF Seneca Diversified Growth Fund since 12 July 2011, taking over as lead manager in February 2016.

Richard Parfect
Joined 12/31/2018

Richard commenced his investment career with Rathbone Neilson Cobbold in 1996 in the UK equity research department. On attaining his Securities Institute Diploma, he moved into institutional fund management with the Merseyside Pension Fund (MPF), focussing primarily on equities. In 2002 Richard was one of the founding members of Seneca Investment Managers Limited (originally Midas Capital Partners Limited). On 1 July 2010 he was appointed Co-Fund Manager of the CF Seneca Diversified Income Fund. Richard is a Fellow of the Chartered Institute for Securities & Investments.

Tom Delic
Joined 12/31/2018

Tom is responsible for overseas equity, sector and thematic research across the Seneca IM mandates. He has worked in the investment industry since 2009 after graduating from the University of Liverpool with a first class degree in Mathematics with Finance. After beginning his career as an investment analyst for Royal Liver Asset Managers, he later joined Seneca IM in October 2011. He has been the assistant fund manager on the CF Seneca Diversified Growth Fund since February 2016.

Gary Moglione
Joined 12/31/2018

Gary joined Seneca in April 2018 and is responsible for our third party fund selection alongside Tom Delic. He has worked in the investment industry since 1999 with a major portion of this specialising in fund selection both on a fund of funds and a multi-manager basis. He has previously worked as a fund manager for Royal Liver Asset Management where he managed two of their multi-manager funds (UK Equity and Global Equity). He then joined the multi-asset team at Pioneer Investment Management (later to be taken over by Amundi Asset Management) to manage equity assets in their funds of fund range.

Peter Elston
Joined 03/01/2016

Data provided by Morningstar.

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