Edison reviews Seneca Global Income & Growth Trust

RNS Number : 4339G

Seneca Global Income & Growth PLC

01 March 2018

 

London, UK, 1 March 2018

Edison issues review on Seneca Global Income & Growth Trust (SIGT)

Seneca Global Income & Growth Trust (SIGT) has a value-based, multi-asset investment policy, aiming to achieve an average annual return of at least CPI +6% over the course of a normal business cycle, and to grow the annual dividend at least in line with UK inflation. SIGT's manager believes that active asset allocation can add value and can mitigate the effects of a stock market downturn. In anticipation of an expected global economic downturn in 2020, it has been reducing risk by gradually lowering equity exposure, while adding to specialist assets. The manager expects to continue to reduce the trust's equity position as the end of the bull market approaches. The shorter-term tactical asset allocation (TAA) to equities of 56% compares to the longer-term strategic asset allocation (SAA) of 60%. The trust has a positive investment track record; it has outperformed its blended benchmark over one, three and five years and since the change of investment mandate in January 2012.

SIGT adopted a discount control mechanism (DCM) in August 2016, since when its shares have traded close to NAV. The current 1.4% premium to cum-income NAV compares to the range of discounts over the last three, five and 10 years of 0.6% to 6.1%. The trust aims to increase annual dividends at least in line with the rate of UK inflation; SIGT's prospective yield is 3.6%.  

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