The Seneca Global Income & Growth Trust plc is distinctive amongst investment trusts in having a multi-asset value approach to investing. The trust aims to deliver a combination of income and capital growth while maintaining low levels of volatility. To do this it invests across five asset classes; UK and overseas equities, fixed interest and specialists and property.
The trust has a strategic asset allocation designed to ensure that it meets its long term objectives. In addition, the manager uses tactical asset allocation as a means of capitalising on new value opportunities as they appear. The strategic asset allocation is designed to support the long term growth aspiration of the trust. At the same time it means that income, for the trust’s regular quarterly dividend payments, is drawn from a broad range of assets.
In UK equities, the majority of our holdings are from the mid cap arena. We believe that this area offers greater systemic returns. And being less well-researched than the universe of larger stocks, it provides more opportunities and greater scope for us to add value to the portfolio.
In overseas equities we invest in funds managed by third party fund managers. We select managers and funds who share our value investing approach and who are focussed on returns rather than benchmarks. Within the specialist space, we invest in assets which we expect to deliver income which is more reliable than equities and more able to grow than bonds. Our exposure to fixed interest, following the extended bull market in bonds, is highly selective.