Register Log-in Investor Type

Positive period for Seneca Global Income & Growth

Seneca Global Income & Growth lagged its current benchmark a little over the six months that ended 31 October 2014, producing a return on net assets of 0.6% and a return to shareholders of 1.1% vs. a 1.8% return on 3-month LIBOR plus 3.0 per cent. However, the Board has already said that it isn’t convinced that the current benchmark is appropriate (the FTSE All-Share Index fell by 1.5% over the period)  but the shareholders that the managers have talked to haven’t been that enthusiastic about using equity indices as a benchmark either.

They are paying 1.4p per quarter dividends at the moment and say they intend to at least maintain that rate through to the end of April 2015.

The Board want to introduce a tough discount control mechanism alongside a significant expansion of the company.

Within the portfolio, good returns were achieved on holdings in Far Eastern and Japanese funds – helped by them hedging 60% of their yen exposure. On the downside they lost money on some UK large cap. stocks such as Tesco and Standard Chartered (they’ve now sold both of these holdings).

SIGT : Positive period for Seneca Global Income & Growth

Leave a Reply

Your email address will not be published. Required fields are marked *

Please review our cookie, privacy & data protection and terms and conditions policies and, if you accept, please select your place of residence and whether you are a private or professional investor.

You live in…

You are a…