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VT Seneca Diversified Income Fund

Aim and Overview

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.

Risk and Performance Ratings

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Copyright © 2019 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.

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FE Crown Fund Ratings (as at 31.03.2019) 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.

Investment Performance

Discrete annual performance (%)VT Seneca Diversified Income Fund IA Mixed Investment 20-60% Shares
31/10/20198.56.5
31/10/2018-2.1-1.9
31/10/201712.56.9
31/10/20168.99.8
31/10/20155.83.2

Source: SenecaIM, Bloomberg & 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.

Key Differentiator

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.

Strategic Asset Allocation

35%

Fixed Income

22.5%

UK Equities

25%

Specialist Assets

17.5%

Overseas Equities

How To Invest

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 Services.

Use the link below for further details.

Where can I invest?

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Disclaimer

Private Investors

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 private 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.