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Seneca reduces equity holdings ahead of market downturn

26 October 2017

26 October 2017

Peter Elston, chief investment officer, Seneca Investment Managers, comments:

“There’s much talk about when the bull market in equities will end. We believe it will be around 2019, ahead of an economic downturn in 2020, but it’s vital to take action well in advance. Many investors are holding off from reducing risk, presumably waiting until the bull market has ended, but we don’t think that’s the right approach. To be protected when the markets turn, you need to taper your risk ahead of that change.

“This month we further reduced our equity holdings across all of our funds. With a global economic downturn expected in 2020, a bear market will set in ahead of this. We have created a framework to reduce our risk exposure gradually over time to avoid the need for drastic asset allocation changes once the market does turn.

“Our time frame is a very broad estimate and it’s likely that the market changes won’t occur when we expect them to. This is why we are taking action early: we feel in this situation it’s the ‘what’ that matters, not the ‘when’.

“We’re now in a period of monetary tightening across the developed world, which could mean interest rate increases, tapering of asset purchases or balance sheet shrinkage. The US is ahead of other markets in this cycle, however the UK, Eurozone and Japan are not too far behind. Given where markets are in the cycle, equity returns should remain positive but are falling.

“The proceeds of our reduction in equities went into a combination of specialist assets and short duration high yield bonds, which we believe are attractive for the inflation protection and yields they offer.”

Equity allocations now stand at 38% for the Seneca Diversified Income Fund, 56% for Seneca Diversified Growth and 58% for the Seneca Global Income & Growth Trust.

ENDS

 

Media enquiries:
Roland Cross / Alastair Doyle / Helen Cotton, Four Broadgate
SenecaIM@fourbroadgate.com

Tel: +44 (0) 20 3697 4200

 


 

About Seneca Investment Managers

Seneca Investment Managers, based in Liverpool with a national client base, operate a multi-asset value approach to investing. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.

 

Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.

 

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Seneca and do not constitute investment advice. Whilst Seneca 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.

The LF Seneca Funds may experience high volatility due to the composition of the portfolio or the portfolio management techniques used. This document 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 read the key investor information document (KIID) as it contains important information regarding the fund, including charges, tax and fund specific risk warnings and will form the basis of any investment. The prospectus, KIID and application forms are available from Link Fund Solutions, the Authorised Corporate Director of the Fund (0845 608 1497).

Before investing in the Seneca Global Income & Growth Trust plc, 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.

This communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP17/419

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Seneca funds added to the Hubwise platform

19 October 2017

Seneca Investment Managers (Seneca), the North-West based multi-asset value investment house, announces the availability of two of its funds (the LF Seneca Diversified Income Fund and LF Seneca Diversified Growth Fund) on Hubwise, an independent, intuitively designed,  investing platform for financial advisers.

All Seneca funds are managed according to its principles of multi-asset value  investing, offering investors a diversified, transparent portfolio of value-oriented holdings consisting of directly invested UK equities, managed overseas equities, fixed income, and specialist assets.

Steve Hunter, Head of Business Development, Seneca Investment Managers, says:

“A number of our IFA and wealth management partners have requested access to our funds through the Hubwise platform. Increasing industry-led ratings and growing recognition as well as strong performance have raised the profile of our offerings, and we are pleased that we can now meet that demand.”

Angus Macdonald, Chief Executive Officer, Hubwise, says:

“Hubwise offers advisers an independent platform to power any investment proposition, with automation, access to a wide investment universe, low total cost of ownership and bespoke white labelling. With our extensive insight and experience, we pride ourselves on delivering something different to the market so it’s great to team up with a liked-minded company in Seneca”.

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.

The LF Seneca Diversified Growth Fund is a multi-asset portfolio combining tactical asset allocation with a mid-cap UK equity portfolio, a range of overseas, value orientated equity managers, significant exposure to specialist assets and modest holdings in fixed interest markets.


*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. A portion of 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. Seneca Investment Managers makes no assurance as to yield or return of any investment. Past performance is not a reliable indicator of future results.

Ends


For further information, please contact:
Roland Cross/Alastair Doyle/Helen Cotton, Four Broadgate
SenecaIM@fourbroadgate.com

Tel: +44 (0) 20 3697 4200

 

Follow us on social media:

Twitter: @SenecaIM

LinkedIn: Seneca Investment Managers

 

NOTES TO EDITORS:

About Seneca Investment Managers
Seneca Investment Managers, based in Liverpool with a national client base, operate a multi-asset value approach to investing. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.

Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP17/412

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Seneca Investment Managers adds Babcock across portfolios

2 October 2017

Comment from Mark Wright, Fund Manager, Seneca Investment Managers.

“We have recently added support services company Babcock International to the UK equity allocations across our range of multi-asset portfolios.

“In line with our value investing approach we are always looking for investment opportunities where the fundamental value of a company is unrecognised by the broader market. Babcock has been tarnished with the same brush as other support service companies, such as Capita, Interserve and Mitie, which have all issued profit warnings over the last few years. As a result, its valuation close to halved on simple metrics such as price to earnings ratio, and its dividend yield reached a 10 year high, comfortably covered three times by earnings.

“We believe the company is fundamentally different to others in its sector. It has a very skilled workforce, and these workers are increasingly in short supply. The company operates in complex, highly regulated and often secretive industries, so the barriers to entry are high. Contracts are long term in nature and allow gains and pains to be shared with customers. Unlike many peers, Babcock doesn’t depend on cost-plus contracts that often rely on add-on work at high margins to earn a decent overall return.

“Examples of specialist contracts include the refit work for all UK nuclear submarines and 75% of the UK’s naval ships, maintenance of the London Fire Brigade’s fire engine fleet, and the operation of search and rescue and air ambulance fleets. Babcock also trains pilots, provides engineering support to the military, as well as operational, design and project management support to the nuclear industry; a major growth area, including new builds (Hinkley Point C) and decommissioning (Sellafield).

“The latest trading update, issued shortly after we took our position, prompted the shares to rise by 6%, an indication of the value opportunity this holding represents.”

Ends


 

Media enquiries:
Roland Cross/Alastair Doyle, Four Broadgate
SenecaIM@fourbroadgate.com

Tel: +44 (0) 20 3697 4200

 

NOTES TO EDITORS:

About Seneca Investment Managers
Seneca Investment Managers, based in Liverpool with a national client base, operate a multi-asset value approach to investing. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.

Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Seneca and do not constitute investment advice. Whilst Seneca 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 communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP17/408

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Seneca Global Income & Growth Trust plc moves to zero weight in US equities

21 August 2017

  • High conviction position relative to peers and world equity indices
  • Reflects belief that the US economy has entered the expansion phase
  • Tightening of monetary policy will start to hold back equity prices

Peter Elston, chief investment officer, Seneca Investment Managers, says:
“The growth phase of any business cycle is made up of three sub-phases: ‘recovery’, ‘expansion’ and ‘peak’. The reduction in our US equity weighting to zero reflects the belief that the US economy has entered the expansion phase, during which the tightening of monetary policy will start to hold back equities prices.

“We’re at the point in the cycle when equity returns should start to fall, albeit remain positive, and the move to zero weight in US equities is consistent with the reduction in the Company’s overall equity weighting over the last year. Having moved from overweight to neutral, we are planning to move to an underweight position in equities, starting with the US.

“Other developed economies such as the Eurozone, Japan and the UK are still in recovery phase, as evidenced by interest rates that have yet to be increased. On a valuation basis, we also believe US equities look expensive relative to equities elsewhere.

“The reduction to zero in the US is more a relative call than an absolute one as it’s possible that US equities can continue to rise. However, the reduction is also based on the belief that the US dollar has turned – the possibility of interest rate increases in the medium term in other developed markets such as the Eurozone and the UK argue for strength against the US dollar in other currencies.

“As active managers, it’s essential we take high conviction positions to provide our investors with products that have the potential to deliver strong performance after fund costs. Our investing style, Multi-Asset Value Investing, is designed to then achieve this potential.

“The asset allocation calls we have taken in the last year have resulted in strong returns with the Company up by 25.5% in NAV terms* versus a benchmark increase of 3.5% and a sector return of 15.6%.”

Ends

Source: Morningstar data for SIGT and AIC Flexible Investment Sector NAV returns for the year to end June 2017


 

Media enquiries:
Roland Cross/Alastair Doyle, Four Broadgate
SenecaIM@fourbroadgate.com

Tel: +44 (0) 20 3697 4200

 

NOTES TO EDITORS:

About Seneca Investment Managers
Seneca Investment Managers, based in Liverpool with a national client base, operate a multi-asset value approach to investing. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.

Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Seneca and do not constitute investment advice. Whilst Seneca 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.

Before investing in the Seneca Global Income & Growth Trust plc 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.

This communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP17/324

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Next global economic contraction could start in 2020 – Seneca Investment Managers

19 July 2017

  • Equity returns will start to fall, but for the time being remain positive
  • Portfolio reductions in equity weights likely to continue for the next two years

Peter Elston, chief investment officer, Seneca Investment Managers, says:
“The global economy has been strengthening, and we’re getting further into the current business cycle that begun in 2009. This cycle has already been longer than average, though to a great extent this is a function of the severity of the contraction that preceded it – the worse the ‘accident’, the longer the recovery.

“We, therefore, feel that it’s now time to start thinking about the next global economic contraction, which we anticipate will occur in or around 2020. This prediction is based on an extrapolation of current employment and inflation trends, as well as taking account other factors such as structural slack in labour markets. If our timing is correct, the chances of which may be slim, the current cycle will have lasted 11 years, much longer than typical.

“As for asset allocation, we’re at the point in the cycle when equity returns should start to fall, albeit remain positive, and so we would anticipate the reductions in equity weights across the range of portfolios Seneca manages, that we have implemented in recent months, to continue for the next two years.

“It’s hard to say how severe the next downturn will be. Some argue that it will be mild, because this time monetary authorities have the tools to prevent economic weakness causing stress in financial markets. Others argue that it will be more severe, because debt levels are now higher and central banks will have less scope to lower interest rates or expand already bloated balance sheets.

“Frankly, we do not know which is more likely, but are fairly confident that the next economic downturn, however severe, will see declines in equity markets. Through a sensible asset allocation framework we can reduce market risk and will strive to protect investors.”

Ends


 

Media enquiries:
Roland Cross/Alastair Doyle, Four Broadgate
SenecaIM@fourbroadgate.com

Tel: +44 (0) 20 3697 4200

 

NOTES TO EDITORS:

About Seneca Investment Managers
Seneca Investment Managers, based in Liverpool with a national client base, operate a multi-asset value approach to investing. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.

Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Seneca and do not constitute investment advice. Whilst Seneca 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 communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. FP17/237

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Multi-asset value investing – applying the approach to the whole range of investable assets

10 July 2017

There’s ample academic evidence that value investing works. This is most apparent in equities, but it can also bring success in other asset classes. Value investing is simply about buying assets when they’re cheap, and selling them when they’re expensive – why shouldn’t this approach be applied to the whole range of investable assets?

At Seneca, value investing is at the core of everything we do. We believe our Multi-Asset Value Investing approach is unique and offers significant advantage.

How do we do it?
Adjustments to tactical asset allocation are made primarily in light of the yields available in different asset markets, relative to one another; their own histories; and where we sit in the business cycle. Yields which are higher than they ought to be are generally indicative of attractive future returns.

Value is predominantly apparent in UK equity mid-caps. We emphasise the combination of value and quality, expressed through companies’ ability to deploy capital effectively, and generate profit and dividend paying capacity. Our mid-cap holdings offer higher dividend yields, the same dividend cover, lower price to book ratios and significantly stronger returns on equity than their mid-cap peers. We can access secure dividends, significant re-rating potential and premium quality, without paying a premium price. What we do works, having comfortably out-performed both the mid-cap and all-cap UK markets over the five years to end 2016.

We access overseas equities indirectly, through funds, looking for like-minded fund managers who share our value ethos and invest in their own funds. Insisting on high active share, our open-door policy for experienced value managers starting out with new funds allows us to pick winners early. Prusik Asian Equity Income for example focuses on value, quality and high, sustainable dividend yields. The fund has significantly out-performed its benchmark since launch in 2011, when we first invested.

In fixed income, we invest directly and indirectly, though the former approach is reserved for developed government and investment grade debt, of which we currently hold nothing. Asset allocation decisions are a big determinant of fixed income positions, current thinking favouring the short end of the curve due to interest rate risk, and sub-investment grade for real yield pick up over the gilt. As with equities, yields which are higher than they should be point to strong future returns.

Specialist assets
Opportunities in asset classes like infrastructure, leasing, property and private equity include income streams that are more stable than those of equities, and more capable of growth than those of fixed income. We focus on the reliability of future cash flows, and the quality and future values of the assets from which the income is generated. Again, we’re happy to invest away from the crowd. We hold no mainstream property, rather, owning specialist vehicles such as Custodian, Civitas and AEW. These funds offer or aspire to higher yields than mainstream, and operate in niches which offer better returns than the relatively late cycle main-stream commercial property market.

Our clear value ethos, principles and selection criteria mean our clients know how we will behave as investors. We can’t guarantee the results we will achieve, but we can be clear as to how we manage money. We believe that this approach gives us the edge. We’re happy to be different and we’re aiming to win.

Ends


 

Media enquiries:
Roland Cross/Alastair Doyle, Four Broadgate
SenecaIM@fourbroadgate.com

Tel: +44 (0) 20 3697 4200

 

NOTES TO EDITORS:

Seneca Investment Managers
Seneca Investment Managers is based in Liverpool with a national client base. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors. The firm specialises in multi-asset value investing.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.
The views expressed are current at the time of writing and are subject to change without notice. They are not intended as investment advice or a recommendation to invest in any of the investments mentioned. Whilst Seneca 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 communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.
Seneca Investment Managers Limited is the Investment Manager of the Funds (0151 906 2450) and 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. FP17/157

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Beware dividend concentration in UK large caps – Seneca Investment Managers

27 June 2017

Comment from Peter Elston, CIO, Seneca Investment Managers

  • Venture into the mid cap space and find many decent yielding stocks
  • No need to sacrifice dividend cover or quality
  • UK equity income sector is not the only choice, multi-asset makes sense

“Dividend concentration among UK large caps is a growing concern, and there could be extreme concentration risk for investors in UK large cap income funds.

“However, venture into the mid cap space, and you can find plenty of decent yielding stocks. This is the focus for the UK equity segment of our multi-asset funds, principally because over time mid caps tend to perform better than large caps, both in terms of returns and volatility-adjusted returns (since 1998, the FTSE 250 index has beaten the FTSE 100 index by 5 percentage points per annum). But this is not the only reason. Mid caps are also under-researched, so stock picking opportunities abound.

“Our UK stocks, most of which are mid caps, on average yield 4.3% compared with 3.0% for mid caps in general. You may think we’re sacrificing dividend cover but this is not the case. Average coverage for our stocks on a forward looking basis is 1.9 times compared with 2.1 times for the mid cap universe (and 1.6 times for large caps). Nor are we sacrificing quality: our return on equity is 21.4% on average compared with 13.8%.

“According to Trustnet, the median fund yield in the IA UK Equity Income sector at the end of May was 3.9%. Furthermore, the median FE Risk Score for the sector was 85 (this means that on average, the volatility of funds in the sector was equivalent to 85% that of the FTSE 100 index). Finally, the median two-year fund performance was 13.8%.

“A search for income does not need to be confined to the UK Equity Income sector though. Comparing these numbers with those of our LF Seneca Diversified Income Fund reveals some interesting results. Our fund yields 4.7% versus the median income yield of 3.9% for the IA UK equity income sector. Ah, but that’s because it is sacrificing total return, I hear you say. Not true. Two year total return has been 16.6% versus 13.8%. In that case it must be because the fund is more volatile. Again, no. The fund’s FE Risk Score is 43 half that of the UK Equity Income sector average! The merits of a multi-asset approach are, we think, obvious.”

Ends


 

Media enquiries:
Roland Cross/Alastair Doyle, Four Broadgate
SenecaIM@fourbroadgate.com

Tel: +44 (0) 20 3697 4200

 

About Seneca Investment Managers

Seneca Investment Managers, based in Liverpool with a national client base, operate a multi-asset value approach to investing. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.

Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Seneca and do not constitute investment advice. Whilst Seneca 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 communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL. [FP17 199]

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Value Investing, whatever the fashion

22 June 2017

We adhere to our value ethos come what may.  Value investing is a patient game. It should never be out of fashion, but for most of the last five years the crowd has favoured other styles. We’re happy to be judged on our record over that period.

Here’s an overview of what makes us tick.

 

We work as a team

Each of our managers focuses on investment research for one discipline, be that asset allocation, areas of the equity market, bonds or specialist asset (e.g. infrastructure, leasing, private equity). We only invest in things we really understand. We like to dive deep – if we come up mucky, better before we buy than after.  Each specialist’s findings and recommendations must be value-based, and are subject to scrutiny from the team.  When ideas are implemented, it tends to be across all our portfolios.

 

Process rules! 

Ours is simple and strict.  Investors know what they will get.  We maintain target holding portfolios for each fund.  Each research specialist is responsible for target weightings in their area across every portfolio.  Any change to the target for an individual holding or change to asset allocation has to be approved by the team, and logged on our research intranet, the grid.  If it’s not on the grid, it doesn’t exist.  In our real portfolios, implementation is the responsibility of named pairs of individuals with oversight for each fund.  The deviation between each actual portfolio and its target holding portfolio is monitored closely, with a maximum deviation of ten percent to accommodate factors like income management.

 

Simple, active management

Multi-asset is a crowded space.  Traditional balanced funds invested purely in equities and bonds sit alongside smoke and mirrors funds, whose returns are obscured through the use of derivatives. We sit between these extremes.  Our funds are straightforward, long term, long only funds, investing in a wide range of risk assets.

 

How active are we?

Very.  We ignore the composition of indices.  We want our positions to count. For example, at the end of March 2017 in UK equities in the Seneca Global Income & Growth Trust plc, we owned twenty-two equally weighted stocks in position sizes of circa 1.5%, of which three were top 100 companies and 19 were mid-caps.  Our funds are diversified at asset class level and conviction driven within each asset class.

 

Multi-faceted approach to risk 

Risk can’t be reduced to a single number, and it’s absolutely not simply short term volatility.  The most significant risk is the permanent loss of real capital.  We strive to avoid this.  For example we hold no developed market government debt because it is screamingly expensive.  While not volatile, it will lose money in spades. A more rounded view is required, incorporating factors such as risk of loss, volatility, liquidity and more, with value offering a margin for error in every decision.

 

The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are current at the time of writing and are subject to change without notice. They are not intended as investment advice or a recommendation to invest in any of the investments mentioned. Whilst Seneca 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 communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Before investing in the Seneca Global Income & Growth Trust 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 the Investment Manager of the Funds (0151 906 2450) and 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. FP17/156

 

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Seneca adds social housing stock and private rented REITs to portfolios

7 June 2017

  • Civitas Social Housing, the first real estate investment trust (“REIT”) dedicated to existing portfolios of social homes in England and Wales added to Seneca portfolios
  • Investment also made in PRS REIT, the first quoted REIT to focus purely on the private rented sector (“PRS”)

Richard Parfect, fund manager, Seneca Investment Managers, says:

“Traditionally the REIT sector was all about shops and office space, but recently we’ve added two specialist REITs in very different sectors, both offering the opportunity for an excellent yield and potential for future growth.

“PRS REIT is the first REIT investing in the private rented sector. It floated on the London Stock Exchange on 31 May raising £250 million and is supported by the UK Government’s Homes and Communities Agency. We took part in the IPO as we recognise the potential for income, with an attractive dividend yield of 6%, and capital growth. In essence, the fund is focused on providing quality family housing to rent, which is a growing segment of the UK market where there is a great shortage of family properties. With the initial capital raised, the fund’s objective is to provide funding and work in conjunction with housebuilding partners to develop in excess of 2,500 new rental homes across key regions in the UK.

“Civitas is the UK’s first REIT dedicated to building up a portfolio of social homes. The company works in partnership with Registered Providers (RPs) such as housing associations and local authorities to support the provision of capital to deliver more social homes. It has an appealing deal flow as evidenced by the recent acquisition of a portfolio of social housing in Southampton. Through these acquisitions, RPs are able to free up capital to reinvest in further social homes. With a target yield of around 5% plus the potential for capital growth, we view this as an attractive stock for our specialist allocation across the Seneca portfolios.”

Ends

 

For further information, please contact:

Four Broadgate

Roland Cross / Alistair Doyle

Telephone: +44 (0) 20 3697 4200

Email: SenecaIM@fourbroadgate.com

 

NOTES TO EDITORS:

Seneca Investment Managers

Seneca Investment Managers, based in Liverpool with a national client base, operate a multi-asset value approach to investing. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors.

Seneca Investment Managers has a heritage stretching back to 2002 and prides itself on the ability to identify and invest where there is both quality and unrealised value.

Past performance should not be seen as an indication of future performance. The value of investments and any income may fluctuate and investors may not get back the full amount invested.

The views expressed are those of the fund manager at the time of writing and are subject to change without notice. They are not necessarily the views of Seneca and do not constitute investment advice. Whilst Seneca 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 communication provides information for professional use only and should not be relied upon by retail investors as the sole basis for investment.

Seneca Investment Managers Limited (0151 906 2450) is authorised and regulated by the Financial Conduct Authority and is registered in England No. 4325961 with its registered office at 10th Floor, Horton House, Exchange Flags, Liverpool, L2 3YL  FP17/159

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Seneca Investment Managers appoints new business development consultant

4 April 2017

Seneca Investment Managers (Seneca) the multi-asset value investment house based in the North West, has expanded its sales and distribution team with the appointment of Helen O’Loughlin as Business Development Consultant.

Reporting to Head of Business Development, Steve Hunter, Helen will focus on communicating Seneca’s distinctive multi-asset, value-driven approach to the IFA community.
Helen brings a wealth of expertise from her previous role as sales executive at Premier Asset Management, where she had specific responsibility for business growth within the retail adviser market.

Steve Hunter, Seneca’s Head of Business Development, says: “Helen’s wealth of experience will prove invaluable as we grow our presence with intermediaries and promote Seneca’s Multi-Asset Value Investing proposition. As our investment team continues to search wider for income and growth returns, we are delighted to have Helen on board to help spread the word”.

Helen commented: “It’s a great opportunity to join Seneca at such an exciting time. Multi-asset investing is an area of significant interest for advisers. I am looking forward to working with the whole team to raise Seneca’s profile and grow the business.”

Ends

 

For further information, please contact:

Four Broadgate

Roland Cross / Josh Voulters

Telephone: +44 (0) 20 3697 4200

Email: SenecaIM@fourbroadgate.com

 

NOTES TO EDITORS:

Seneca Investment Managers

Seneca Investment Managers is based in Liverpool with a national client base. Investors range from institutions such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors. The firm specialises in multi-asset value investing.

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