22 May 2019 16:13
London, UK, 22 May 2019
Edison issues review on Seneca Global Income & Growth Trust (SIGT)
Seneca Global Income & Growth Trust (SIGT) has a value-biased, multi-asset investment strategy. It aims to generate average total returns of at least CPI +6% pa over the course of a typical investment cycle. Recent performance has been significantly enhanced by the holding in financial platform AJ Bell, whose shares have nearly trebled since listing in December 2018. This has more than offset the negative effects from SIGT's lack of exposure to US equities and safe-haven government bonds, which have performed relatively well. SIGT has a positive medium- and long-term track record versus its benchmark, despite growth rather than value stocks leading the markets in recent years. Performance has been helped by its c 30% exposure to specialist assets, which offer the potential for enhanced total returns, including high yields, supported by stable, inflation-linked income streams, along with lower volatility.
SIGT has employed a discount control mechanism since August 2016, aiming to ensure that its share price regularly trades close to NAV. Its current 1.8% share price premium to cum-income NAV compares with the range of a 2.4% premium to a 2.8% discount over the last 12 months, and average premiums of 0.5% and 0.6% over the past one and three years, respectively. The board aims to grow SIGT's annual dividend above the rate of UK inflation, and has increased its distribution for the last six consecutive financial years. Gearing of up to 25% of NAV is permitted; net gearing was 3.0% at end-April 2019.
Click here to view the full report.
All reports published by Edison are available to download free of charge from its website
www.edisongroup.com
About Edison: Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world-renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisers and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information please contact Edison:
Mel Jenner, +44 (0)20 3077 5720
Gavin Wood, +44 (0)20 3681 2503
Investmenttrusts@edisongroup.com
Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn https://www.linkedin.com/company/edison-investment-research
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv