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VT Seneca Diversified Income Fund

Aim and Overview

We believe 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 over the longer term. The fund has historically delivered a dividend yield of circa 5%*, with income now paid out on a monthly basis.

Risk and Performance Ratings

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The fund carries a Distribution Technology profile 5. Profile published 12.10.2018 by Distribution Technology based on the data and information as at 30.09.2018

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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.

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Defaqto Income Risk Rated Fund

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Elite Rated

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Wealth & Money Management Award

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 Differentiators

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?

*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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