Seneca Global Income & Growth Trust – Low volatility and growing income
Marten and Co publishes its first initiation of coverage note on Seneca Global Income & Growth Trust (SIGT)
In recent years Seneca Global Income & Growth has delivered returns ahead of the average of its peer group and ahead of comparable indices and with markedly lower volatility than both. The dividend, which is paid quarterly, is climbing steadily as is the fund’s revenue reserve. The manager’s multi-asset value investing approach is delivering on all of the fund’s objectives. A fund that can grow its income and capital without experiencing the volatility associated with a pure equity fund may be attractive for many investors. This could be one reason why the discount has narrowed in recent months. The Board has said they would like to see the trust expand.
Seneca Global Income & Growth Trust’s (“SIGT”) investment objective is to outperform 3 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 investment in both direct investments, mainly UK equities, and commitments to open and closed-end funds.
Seneca Global Income & Growth Trust – Low volatility and growing income
Seneca Global Income & Growth Trust plc is designed for investors who wish to combine the benefits of a quarterly income with long term capital growth. Over a typical investment cycle, the trust will seek to achieve a total return of at least CPI + 6% per annum after costs with low volatility, and with the aim of growing aggregate annual dividends at least in line with inflation through the application of a Multi-Asset Investment Policy. The emphasis is on low volatility with the prospect of income and capital growth, through investing in a multi-asset portfolio.
The trust is managed in keeping with Seneca’s multi-asset value investing approach. Assets held include UK and overseas equities, fixed interest, specialist investments and property. They believe that their value investing ethos holds out the prospect of superior long term returns.
SGIT : Seneca Global Income & Growth Trust – Low volatility and growing income