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Seneca Global Income & Growth Trust plc – All The Growth But Only Half The Volatility

In their recent research note, Cantor Fitzgerald commented that, Seneca Global Income & Growth Trust (SIGT) has made strong progress since it adopted a revised investment mandate three years ago. The Trust has produced market beating returns, with half the volatility of UK equities. The chart below shows that SIGT has the lowest NAV total return volatility in amongst its closest listed peers, while its returns in absolute terms are better than the UK equity market.

Volatility vs. Global & Flexible Investment Sectors

SIGT Scatter Graph May 2015

Source: Morningstar, Cantor Fitzgerald Europe Research. Data from 18 Jan 2012 (SIGT mandate change) to 30 April 2015.

When viewed in terms of risk-adjusted performance (as measured by the Sharpe ratio), SIGT ranks top among its closest listed peers since the change of mandate in 2012. Furthermore, Cantor Fitzgerald noted that the discount to NAV narrowed from c.15% to c.5%, deeming it ‘a reflection of the progress made’.

Sharpe Ratio vs. Global & Flexible Investment Sectors

SIGT Sharpe Graph May 2015

Source: Morningstar, Cantor Fitzgerald Europe Research. Data from 18 Jan 2012 (SIGT mandate change) to 30 April 2015.

Additionally, SIGT will pay a fourth interim dividend in respect of the year ending 30 April 2015 of 1.47p per Ordinary Share on 12 June 2015. It is the Board’s intention that barring any unforeseen circumstances, it will at least maintain the quarterly dividend rate for the forthcoming year to 30 April 2016.

David Thomas, CEO*, Seneca Investment Managers commented; “The Trust is delivering sector-leading returns to shareholders with much lower volatility than its peer group. This is a ringing endorsement of the revised investment mandate, put in place three years ago and the Trust is in a position to continue to deliver a healthy yield to its shareholders over the next year and beyond.

David Thomas, CEO* of Seneca Investment Managers, commented:

“The Trust is delivering sector-leading returns to shareholders with much lower volatility than its peer group. This is a ringing endorsement of the revised investment mandate, put in place three years ago and the Trust is in a position to continue to deliver a healthy yield to its shareholders over the next year and beyond.

*subject to FCA approval

Important information

Past performance should not be seen as an indication of future performance. The source of information in this communication is the Cantor Fitzgerald research note dated 03.02.2015 and corresponding graphs produced by Cantor Fitzgerald Europe Research as at 30.04.2015 unless otherwise stated. The value of investments and any income may fluctuate and investors may not get back the full amount invested. Whilst Seneca Investment Managers has used all reasonable efforts to ensure the accuracy of the information contained in this communication, we cannot guarantee the reliability, completeness or accuracy of the content. This document is provided for the purpose of information only and if you are unsure of the suitability of this investment you should take independent advice. Before investing you should read the Trust’s listing particulars which will exclusively form the basis of any investment. Net Asset Value (NAV) performance is not linked to share price performance, and shareholders may realise returns that are lower or higher in performance. The annual investment management charge and other charges are deducted from income and capital. Seneca Investment Managers Limited is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at Tenth Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP15/65.