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CF Seneca Diversified Income Fund

Aim and overview

Aim and overview

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Investment approach

Investment approach

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Investment team

Investment team

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Investor profile

Investor profile

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Literature

Literature

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How to invest

How to invest

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Aim and overview

For many personal investors, 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 a dividend yield of circa 5%*, with income now paid out on a monthly basis.

Investment approach

Strategic asset allocation

Screen Shot 2015-10-16 at 14.25.23The 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.

Investment team

 

SIM-1The 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

Investor profile

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

And wish to invest via:

NISA (New Individual Savings Accounts)
SIPP (Self Invested Personal Pensions)
Other pension wrappers
Insurance bonds
GIA (General Investment Accounts)

How to invest

The CF 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 Capita Financial Managers.

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.


Personal Investors Disclaimer

These pages are designed for investors who are UK tax residents only and the funds listed may not be suitable for non-UK tax-resident investors.

Please read this page carefully, by proceeding you confirm that you have read and understood the information specified below and access to this website is only granted to users on this condition.

The information in this website does not constitute advice or a personal recommendation and you should not make any investment decisions on the basis of it. It does not take into account the particular investment objectives, financial situations or needs of investors.

The investments on this website constitute Open-ended Investment Companies and Investment Trusts. Their underlying portfolios are comprised of UK and International equities and fixed interest securities including government and corporate bonds, specialist investments including property and unquoted companies and other invested funds. Investors must understand the risks involved, including the risk that the investments may not achieve their investment objectives and you may not get back the original amount invested. For a full description of the risks please refer to the Full Prospectus of the Funds or the latest annual report of the Investment Trust which are available in the Literature section of this website.

Seneca Investment Managers does not provide investment advice to personal investors. If you are uncertain whether any of the investments are suitable for your own circumstances please contact a financial adviser before taking any action. If you do not have an adviser, the Financial Conduct Authority provides information on how to find an adviser on their website. Click here.