Seneca is quietly delivering market beating returns with less risk


#1

Originally published at: http://whichinvestmenttrust.com/seneca-is-quietly-delivering-market-beating-returns-with-less-risk/

Seneca Global Income & Growth is under too many investors radars, but with its lower risk strategy has been consistently producing index beating returns since a change of mandate a few years ago, perhaps investors shouldn’t be ignoring it any more. Fast Facts Invests globally in multi-assets including property/equities/bonds/alternatives Aims to deliver a rising dividend…


#2

I think I had heard of this fund when it was with Miton but I thought it was a bit too complicated and I couldn’t really understand what it did.

I think I’ve got my head around it now, That was a very good article on it because it explained it well, though it took me most of my train journey to finish it.

I think it does need to get bigger and I think that when it does the high fee on the first £50m will come down too.

I think I would buy it if they issue more shares. I wonder if they are thinking to do a C-share issue.

I think they need to get their face about a bit more as well because I haven’t read any articles about it before now.


#3

There is research attached from Edison and Cantor so it has been trying to ‘get it’s face’ about @andre.

I remember when this was Midas, not Miton, though those two firms were connected.

It has certainly been a good performer, much better than I had realised though I’d like to see it get to five years with this new investment remit.

It might be worth investing a little in here though I wouldn’t buy on a premium. I might consider it if it issues new shares. It would be helpful if you would inform us @whichinvest if they do issue new shares.


#4

We will certainly inform you or any developments with issuing new shares @ronmac.


#5

One of the issues with anything that benchmarks against any LIBOR is their current low level - this does make them easier to beat. But this is probably of greater relevance to those funds that have performance fees.

What is of interest to me now is the rate of dividend growth, and not only is this increasing faster than the rate of inflation, but far more importantly, is it increasing faster than the rate of increase in my personal expenditure, i.e. my personal rate of inflation. And if I wished to get bogged down in detail, what is the rate of increase in the fund’s annual revenues, i.e. is the increase in dividends paid out supported by revenues received, or are the dividends being supplemented from either reserves or from capital? Just a general thing rather than being aimed at a particular fund.

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If anyone is interested in kowing about capital raisings or any other relevant news then two places to check on a regular basis (or three, if WhIT is included!) are the IT’s own web-site, and the RNS announcements that can be accessed from many sources: e.g. the London Stock Exchange and the AIC, the latter having the great advantage of filtering out NAV announcements which reduces the incidence of needle/haystack research,


#6

The discount has declined to 1.4% today. I’d advise anyone who is interested in investing here but doesn’t wish to buy on a premium, to add it to a watch list on Digital Look, then set up an alert for when the price falls.

I don’t think that buying it on a small premium such as today’s would make much difference to your returns, if you hold it for the long term, what will drive performance long term is what the managers do with the underlying portfolio.


#7

I saw one of the managers has left. I had been looking at this one since reading the review on here. Not sure what to make of one of the managers going though?


#8

Yeah I saw that too @dallas. I’d avoid it right now until there’s more clarity there on the replacement and on what it means for future performance.

It is really small, I note the WhichIT article states they intend to grow it but maybe the manager just got frustrated working for such a small trust.

It’ll be interesting to see where he pops up next. Back to Miton maybe? (probably not).


#9

Peter Elston, the CIO at Seneca, has been appointed as second named manager on the Trust alongside Alan Borrows. That having been said its very much a team effort on the investment side here at Seneca, with all of the managers having research specialisms, which inform all of our mandates.


#10

Actually I think the Seneca trust is one that slips under the radar @DavidThomas but it’s performance is really good. It should be something people looking for a dividend yield and with a little bit of a cautious outlook should consider. The div is just shy of 4% right now.

There’s a big risk with many investors portfolios that they buy too many funds that own the same kind of investments, Seneca helps diversify that because of its multi asset investments.

Only thing I would like to see is that you grow it bigger so that it attracts some of the big boys as investors but they point out in the article you have that ambition. Overall it’s a nice little trust.


#11

The size doesn’t matter too much to me as a smaller investor @Paulo, I care more about the performance and the direction of travel, both look good here. Might be time to dip the toe in the water with my ISA. This looks like a good investment for my parents too.


#12

It’s nice to see someone from Seneca getting involved here, your contribution is welcome @DavidThomas.

I bought a small holding in Seneca earlier this year after reading about it on here. I think it’s a great little fund, and now that I’m more comfortable with it, I intend to buy some more. And for those worrying that it’s too expensive with its discount, it now employs a zero discount policy, meaning it buys or sells its own shares to maintain a zero discount.

I think this one is a core holding for anyone looking for income and for a relatively low risk investment.


#13

I don’t think it’s a core holding for all portfolios @graham, but it looks appropriate for investors looking for not too much risk (but NOT no risk) and needing a steady dividend, which although not the highest at just under 4%, is good enough in my view, and should grow from here after it was rebased some time ago.


#14

I didn’t say it was appropriate for ALL portfolios @mammon, I qualified its suitability as being something close to what you said actually.


#15

Oops, my bad, you’re right @graham, I failed to read your post correctly :slight_smile: