Seneca Global Income & Growth Trust (SIGT) is once again trading close to net asset value. This arguably positions it well, if its board adopts a zero discount policy following this July’s AGM (as currently indicated). The Trust’s small premium may reflect the attraction of its multi-asset approach (especially in current volatile markets), its performance record, yield and the prospect of increased comfort for investors if the zero discount policy is implemented.

The UK equity portfolio has been a strong contributor to performance during the last year, but the managers still see good value and have recently been increasing exposure. This is in contrast to fixed income where they see negative interest rates creating the prospect of real capital loss. SIGT derives a good part of its income from mid-cap stocks. The managers think, currently, this may be more secure than dividends from the FTSE 100.

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.

About Seneca Global Income & Growth

SIGT’s aim is to grow both income and capital through investment in a multi-asset portfolio and to have low volatility of returns. Unlike many multi-asset funds, it sits within the AIC’s Global Equity Income sector, as the board and Seneca IM believe that this better reflects its income objective.

About Seneca Investment Managers

Seneca IM describes itself as a multi-asset value investor. Its combination of multi-asset investing with an explicit value-oriented approach may be unique. The idea is that Seneca IM can allocate between different asset classes, emphasising those that it considers offer the most attractive opportunities and making both asset allocation and investment selection decisions on a value basis. Allocations to mainstream UK equities are made directly while funds are used to gain access to other asset classes. The named fund managers are Alan Borrows (senior fund manager) and Peter Elston (CIO). However, Seneca IM takes a team approach to managing its portfolios: Peter Elston is the research specialist for asset allocation, Alan Borrows for fixed income, Mark Wright for UK equities, Richard Parfect for specialist assets and Tom Delic for overseas equities.

Seneca Global Income & Growth – On track for zero discount policy : SIGT