QuotedData is publishing a new update note on a company in the Flexible Investment sector:

Seneca Global Income & Growth – Changing tack

Seneca Global Income & Growth (SIGT) has continued to outperform its flexible investment peer group, since QuotedData last wrote, while providing lower volatility of returns. Under its discount control mechanism, SIGT has been recently issuing and repurchasing shares (see page 2). Demand has been stronger than its managers expected and the trust has expanded. Assuming this trend continues, it should lower SIGT’s ongoing charges ratio (a measure of the annual drag on performance caused by operational expenses).

Recently, SIGT’s manager has been reducing exposure to equities, with overseas equities taking the brunt. This reflects the manager’s views that equity markets have experienced reasonably strong rises during the last few months, and so are now at less attractive valuations, and that the global business cycle is making progress and we are moving closer to a point where we experience the next global recession (see page 3).

Multi-asset, low volatility, with yield focus

SIGT’s investment objective is to outperform three-month Libor+3% over the longer term, with low volatility and the prospect of income and capital growth, through investment in a multi-asset portfolio, which includes both direct investments (mainly UK equities) and commitments to open- and closed-end funds (overseas equities, fixed income and specialist assets).

SIGT is growing its asset base, aided by its DCM and a new sales hire

The introduction of SIGT’s new discount control mechanism (DCM), in August 2016, was designed to give investors’ confidence that they can enter and exit SIGT close to NAV. Since March 2017, SIGT has both issued and bought back shares demonstrating that the DCM is being operated actively. If SIGT’s low volatility returns continue to prove attractive to investors, the DCM should provide a good base upon which the board can grow the trust, as it intends. Seneca IM has expanded its sales and distribution team with the appointment of Helen O’Loughlin to support Steve Hunter, Head of Business Development. Seneca IM say that Helen is focused on communicating its distinctive multi-asset, value-driven approach to the IFA community and is becoming involved in marketing SIGT.

You can access information about the trust at the investment manager’s website. Click here.

SIGT : Seneca Global Income & Growth – Changing tack