The award winning* Seneca Global Income & Growth Trust plc (the Trust), is celebrating the fifth anniversary of its revised investment mandate with continued strong returns, growing dividends and low volatility.
Over the 5 year period to 19th January 2017, the Trust has:
- Achieved a net asset value total return of 66.3%, versus a benchmark return (Libor + 3%) of 19.5%; a Flexible Investment Sector total return of 50.5%; and a UK equity market return of 51.8%.**
- Delivered this return with an annualised volatility over the five years (standard deviation of returns) of 8.3%, significantly lower than either the AIC Flexible Investment Sector (10.6%) or the UK equity market (14.2%).**
- Achieved a Sharpe ratio of 0.99, significantly higher than that of the AIC Flexible Investment Sector (0.55) and the UK equity market (0.43).**
- Grown its dividends every year since 2013, whilst adding to revenue reserves.**
Seneca Global Income & Growth Trust plc is a well-established multi-asset trust managed by a knowledgeable team with extensive experience of closed-ended funds. The Trust adopts a straightforward investment policy in keeping with Seneca’s multi-asset value investing approach. The Trust’s portfolio comprises directly held UK equities, overseas equities and fixed-income holdings held via select third party managers and a range of specialist investments, including focused REITs, leasing businesses and infrastructure investments. The emphasis throughout is on growth of income, quality and value.
The Trust had net assets of £64.3m**, offered a current yield of 3.8%** paid quarterly, and operates a discount control mechanism aimed at managing its share-price very closely around its Net Asset Value. As of January 1st 2017, the Trust was re-assigned from the AIC Global Equity Income Sector to the AIC Flexible Investment Sector.
David Thomas, CEO of Seneca Investment Managers, says:
We are very proud of the success of the Seneca Global Income & Growth Trust, which has exceeded its objectives for investors over the last five years whilst sensibly managing risk. At Seneca, we look more widely for both growth and income, and firmly believe our multi-asset value approach will continue to stand shareholders in good stead as we work to build on this success. We wish the Trust and its investors ‘many happy returns’.
Richard Ramsay, Chairman of the Seneca Global Income & Growth Trust plc, says:
‘The Trust’s five year record is a testament to the merits of its Investment Policy and the effective execution of this policy by the Manager.’
Periodic performance, volatility and sharp ratios to 18th January 2017 (%)**
Annualised volatility (standard deviation of returns), and Sharpe Ratio, five years to 18th January 2017**
*Seneca Income & Growth Trust plc won Overseas Income Company of the year at the 2015 Investment Week Investment Company of the Year Awards, is a Money Observer rated fund 2016 and is on the WhichInvestmentTrust.com buy list.
**All return, sharp ratio and volatility data source, Cantor Fitzgerald. All figures shown total return. AIC Sector data represents average unweighted figures for the peer group. Source for Net Assets, Personal Assets Trust Administration Company. Source for current yield, Bloomberg and RNS of 16/11/2016. Source for revenue reserve account, SIGT reports and accounts. Sharpe ratio is defined as: (the average rate of return – the risk free rate of return/standard deviation of returns). Risk free rate taken as 2.5%.
Past performance should not be seen as an indication of future performance. The information on this email is as at 19.01.2017 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 press release 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 refer to the latest Annual Report for details of the principle risks and information on the trust’s fees and expenses. Net Asset Value (NAV) performance may not be linked to share price performance, and shareholders could 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. FP17 / 18