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

Seneca Global Income & Growth – Steady reduction in equity exposure

Over the past year, Seneca Global Income & Growth (SIGT) has delivered returns well in excess of its new benchmark (see page 2), further enhancing its strong track record. SIGT’s manager believes we may be due to enter a bear market in 2019, ahead of a slowing global economy in 2020. Given this, it has been steadily reducing SIGT’s exposure to equity markets, notably in the US where the fund is now zero weighted. The manager says that it will continue to sell equities over the rest of this year and the next, locking in profits.

Having no exposure to the world’s largest equity market is a bold move for the fund and, arguably, reflects the manager’s high conviction approach.

Multi-asset, low volatility, with yield focus

Over a typical investment cycle, SIGT seeks to achieve a total return (the capital return plus dividends and other income reinvested) of at least the consumer price index (CPI) plus six per cent per annum, after costs, with low volatility, and with the aim of growing aggregate 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. Click here.

Seneca Global Income & Growth  – Steady reduction in equity exposure : SIGT