For many personal investors, there is a real need for good income-generating investments. The LF 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 a dividend yield of circa 5%*, with income now paid out on a monthly basis.
LF 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: 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. Portfolio oversight responsibilities (process implementation, cash and cash flow management) rests with Richard Parfect and Tom Delic.
The overall responsibilities of the Investment Management team are shown below:
Asset allocation research, Peter Elston, chief investment officer
Fixed income research, Tom Delic
Specialist assets research, Richard Parfect
UK equity research, Mark Wright
Overseas equity and investment themes research, Tom Delic
How to invest
The LF Seneca Diversified Income Fund is eligible for:
- General investment accounts (GIA)
- Individual savings accounts (NISA)
- Self invested personal pension (SIPP)
- Other pensions and tax wrappers
The fund is available through a wide range of online investment portals and directly from Link Fund Solutions.
Before investing you should read the fund prospectus,key investor information document (KIID), application form and additional investor information document (AIID). You must remember that the value of any investment you make may fall as well as rise, and that you may not get back what you invest. You must also remember that the income from investments may fall as well as rise, and that past performance is not a guide to future performance. If you are in any doubt about the suitability of this investment for you, you should seek professional financial advice.
Use the link below for further details.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.