For many pension funds, charities and family offices, there is a real need for good income-generating investments. The CF Seneca Diversified Income Fund is a multi-asset portfolio aiming to deliver a high and growing income with the potential to preserve the real value of invested capital. The fund has historically delivered an income yield of circa 5%*, now paid out on a monthly basis.
CF Seneca Diversified Income Fund
Aim and overview
Aim and overviewView
How to invest
How to investView
Strategic asset allocation
The key differentiator of this fund is the payment of a high income on a monthly basis. Paying a high income has been a priority since the fund was started in 2002. With pensions deregulation it was decided to offer additional value to investors by switching to monthly payments. Hence the fund may be an attractive retirement solution in itself.
To achieve the aim of a high income, the fund uses a value approach to invest across four asset classes; UK and overseas equities, fixed interest and specialists. Asset class diversity is a key strength. This ensures that income is drawn from a wide and resilient range of sources, and is hence more reliable than would otherwise be the case.
The fund has a strategic asset allocation designed to ensure that it meets its long term objectives. In addition, the manager makes use of tactical asset allocation as a means of capitalising on value opportunities as they arise.
As with our other funds, the principal focus of our UK equities portfolio is the mid cap arena. In overseas equities we invest in funds managed by third party managers. We select funds and managers who share our value investing approach and who are focussed on income and returns rather than benchmarks. Specialist asset selections focus on the quality and strength of the income streams that they produce. Our exposure to fixed interest, following the extended bull market in bonds, is highly selective.
Delivery of a high income is a paramount focus but we are mindful of the need at times to defend capital. Such action may sometimes result in a lower level of yield or income. The fund aims to defend the real value of capital over the longer term.
The Seneca IM investment team, pictured from left to right: Alan Borrows, Richard Parfect, Tom Delic, Mark Wright, Peter Elston.
The fund is managed on a team based, research driven approach, with all members of the Seneca investment team contributing to decision making through their research specialities. Two members of the team retain portfolio oversight responsibilities (process, implementation, cash and cash flow management). Portfolio oversight for this fund rests with Alan Borrows and Richard Parfect.
The overall responsibilities of the Investment Management team are shown below:
Asset allocation research, Peter Elston, chief investment officer
Fixed income research, Alan Borrows
Specialist assets research, Richard Parfect
UK equity research, Mark Wright
Overseas equity and investment themes research, Tom Delic
The fund may be suitable for investors who:
Have objectives which are medium to longer term
Are seeking a relatively high level of regular income
Can afford some degree of capital risk
Factsheet, investment report, availability and ratings
How to invest
To make an investment into any of our funds, or to enquire about services, please follow the link below.Make an investment
*The historic yield reflects distributions declared over the past twelve months as a percentage of the period end unit price. It does not include any preliminary charge and investors may be subject to tax on their distributions. The fund’s expenses are charged to capital. This has the effect of increasing the distribution(s) for the year and constraining the fund’s capital performance to an equivalent extent.