Seneca Global Income & Growth PLC Edison reviews Seneca Global Income & Growth Trust

TIDMSIGT

Seneca Global Income & Growth PLC

22 May 2019

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.

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