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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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Risk and performance rating

Risk and performance rating

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How to invest

How to invest

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Aim and overview

We believe 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.

Management of the fund is a team approach, with all Seneca investment team members contributing to decision making in the fund through their research specialities. The named managers of the fund are Alan Borrows and Richard Parfect. The overall responsibilities of the Investment Management team are shown below:

Tactical asset allocation, Peter Elston, chief investment officer, Seneca Global Income & Growth Trust plc

Fixed interest research, Alan Borrows, senior fund manager, CF Seneca Diversified Income Fund and Seneca Global Income & Growth Trust plc

Specialist investment research, Richard Parfect, fund manager, CF Seneca Diversified Income Fund

UK equity research, Mark Wright, fund manager, CF Seneca Diversified Growth Fund

Global equity and investment themes research, Tom Delic, assistant fund manager, CF Seneca Diversified Growth Fund

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:

NISAs (New Individual Savings Accounts)
SIPPs (Self Invested Personal Pensions)
Other pension wrappers
Insurance bonds
GIAs (General Investment Accounts) on wraps and platforms

Directly – If you wish to invest directly via Capita Financial Managers please click on ‘Make an investment’ below for instructions.

Risk and performance rating

 

  The fund carries a Distribution Technology profile 5.

 

 

 

Copyright © 2017 Morningstar UK Limited. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

 

 

 

 

 

 

 

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 platforms and wraps and directly from Capita Financial Managers.

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.


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