For many personal investors, there is a real need for good income-generating investments. The VT 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 yield aim quoted is an estimate and not guaranteed.
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FE Crown Fund Ratings (as at 31.07.2020) do not constitute investment advice offered by FE and should not be used as the sole basis for making any investment decision. All rights reserved.
|Discrete annual performance (%)||VT Seneca Diversified Income Fund||IA Mixed Investment 20-60% Shares|
Source: SenecaIM, Bloomberg Finance L.P. & Morningstar. Share prices calculated on a total return basis with net dividends reinvested.
Past performance is not a guide to future returns. The value of investments and any income may fluctuate and investors may not get back the full amount invested.
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 VT Seneca Diversified Income Fund is eligible for:
- General investment accounts (GIA)
- Individual savings accounts (ISA)
- 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 Valu-Trac Administration Service.
Use the link below for further details.Where can I invest?