Seneca Global Income & Growth – Cutting back on equities – Seneca Global Income & Growth Trust’s (SIGT’s) manager continues to expect a global recession in 2020, with a global bear market in equities in 2019. In anticipation, it laid out its strategy of gradually reducing the trust’s exposure to shares in companies and recent events have served to reinforce its view. The manager highlights the benefit of SIGT’s ability to invest across a range of different asset types, which it says can add value in a way that cannot be replicated by a passive fund following an index. This note provides an update on recent changes as well as a detailed overview of the trust.

Multi-asset, low volatility, with yield focus

Over a typical investment cycle, SIGT seeks to achieve a total return of at least inflation, as measured by the Consumer Price Index (CPI), plus six per cent. a year, after costs, with low volatility, and with the aim of growing total annual dividends at least in line with inflation. To achieve this, SIGT invests in a multi-asset portfolio that includes both direct investments (mainly UK equities) and commitments to open-and-closed-end funds (overseas equities, fixed income and specialist assets). SIGT’s manager uses yield as the principal determinant of value when deciding on its tactical asset allocation and holding selection.

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

Seneca Global Income & Growth – Cutting back on equities : SIGT