Seneca Global Income & Growth has published results for the year ended 30 April 2015. Over that period the total return on net assets was 9.6% and the total return on the share price was 9.1% – both comfortably ahead of their objective of outperforming LIBOR +3% over the long-term. They also point out that the annualised volatility of the fund’s share price was 6.7% over the year compared with 12% for the FTSE All-Share Index – fulfilling another part of their objective. As for the last part, to provide income growth, the dividend was increased by 5% over that of the previous year.
They say that the plan is to try to pay quarterly dividends of 1.47p for the current financial year – this would give an annualised dividend of 5.88p, ahead of the 5.67p they are paying for the financial year just ended.
The report says returns from within the portfolio were well spread, with contributions coming from across a wide range of the assets held. The largest contribution came from Japanese equities, where market strength was preserved by having over 60% of investments hedged against yen weakness. The contribution from European equity investments was similarly improved by their decision to increase exposure on a currency hedged basis (also 60%) at the time QE easing was announced. The emphasis within the portfolio on real assets was vindicated, as the property holdings also made a major contribution. The UK equity portfolio, which is largely held through direct holdings, had a mixed year, but still contributed positively. This was helped by an emphasis on mid cap stocks, which generally outperformed their larger brethren.
They say the only significant detractor from returns at the asset class level was in other overseas equities, which was purely due to the investment held in Blackrock World Mining Trust. This vehicle suffered not only from the difficult market environment in commodities, but also from injudicious investments made in smaller mining companies, which led to a de-rating of the company.
A table of the largest positive contributors to performance lists Lindsell Train Japanese Equity fund at the top, followed by Barratt developments, Phoenix Group, Assura and Prusik Asian Equity Income Fund.
SIGT : Seneca Global Income & Growth meets every objective