VT Seneca Diversified Income B

A multi asset class portfolio, aiming to provide a high level of income.

  • 112.86p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 107.49p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 1.31%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 4.50%
    Yield

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 15 January 2021

The objective of the fund is to provide a yield that is competitive with short term rates and also provide the prospect of some capital growth without exposing initial capital to undue levels of risk. This is potentially a one-stop product for investors, which sets itself apart by the inclusion of third party specialist funds and alternative asset classes to supplement the core exposure to direct UK equities and bonds.

Fund summary

Sector Mixed Investment 20-60% Shares
Structure OEIC
Launched March, 2012
Size £150m
Yield 4.50%
Charging basis Capital
Dividends paid 15 Mar, 15 Jun, 15 Sep, 15 Dec

Charges

Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 1.31%

Allocation

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Investment process

The investment strategy is to create a balanced portfolio of both correlated and non-correlated assets with a focus on reducing volatility, risk and achieving real returns. This is achieved by using a predominantly top down approach for portfolio construction - i.e. investing in assets based on the managers views of investments based on global and industrial themes and trends. The equity element of the portfolio is complemented by a spread of investments in Fixed Income, Property, Structured Products and Hedge Funds, all with the aim of providing a balanced and diversified portfolio with a significant element of income security. The fund is built around a core of direct holdings in FTSE 350 equities, gilts and investment grade debt securities, exposure to other assets classes will normally be via open ended and closed collective investment products.

This is potentially a one-stop fund for investors, which sets itself apart by the inclusion of third party specialist funds and alternative asset classes to supplement the core exposure to direct UK equities and bonds. Midas use the same investment style to manage money that was employed by the fund's manager, Alan Borrows, when he worked for the Merseyside Pension Fund. Whilst his past track has been successful, returns have been impacted by the sell off that followed the 2007 "credit crunch" and performance relative to the fund's benchmark has shown no signs of recovery. This led us to remove the fund from our rated funds list in 2009.

Manager research

Average monthly relative returns

  • 16/17 -0.22%
  • 17/18 0.28%
  • 18/19 0.25%
  • 19/20 -0.13%
  • 20/21 0.40%

Bestinvest MRI

  • 3 years 0.17%
  • 5 years 0.12%
  • Career -0.19%
  • 3 years 72.60%
  • 5 years 75.20%
  • Career 35.90%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Alan Borrows

Borrows is Chief Investment Director of Midas Capital Partners. He joined Merseyside Pension Fund in 1980 as an Investment Assistant, becoming Investment Manager in 1986 and taking responsibility for the day to day management of the equity portfolios. In the early 1990s, Borrows made the first hedge fund investments for MPF and from 1992 to 2002 he was their Senior Investment Manager.

Track record

Alan Borrows has 14.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.19%. During the worst period of relative performance (from May 2007 - March 2009) there was a decline of 46% relative to the index. The worst absolute loss has been 40%.

Periods of worst performance

Absolute -40.00% (May 2007 - March 2009)
Relative -46.00% (May 2007 - March 2009)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.

Allocation

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Top 10 holdings

Data accurate as at 31 July 2020

7.2918% Royal London Sterling Extra Yield Bond Z Inc
6.7226% Royal London Short Duration Global High Yield Bond Z Inc
5.7163% Absalon - Em Corporate Debt-I Gbp Inc
4.2173% Twentyfour Select Monthly Income Fund Limited Ord 1p
3.8606% Ninety One Global Gold I Acc Gbp
3.5268% Muzinich Short Duration High Yield Hdg H Inc Gbp
3.4398% Invesco Physical Gold Etc Usd
3.3256% Cim Dividend Income J Ordinary Shares Inc Gbp
2.474% Merian Chrysalis Investment Company Limited Ord
2.2447% Sequoia Economic Infrast Inc Fd Ltd
Source: Trustnet

Sector breakdown

Financials 11.00%
Fixed Interest 10.00%
International Fixed Interest 8.00%
Fixed Interest 7.00%
Property 6.00%
Industrials 6.00%
Global Emerging Market Fixed Interest 5.00%
Consumer Discretionary 5.00%
Asia/Pacific ex Japan Equities 5.00%
Equities 4.00%

Portfolio

Asset class exposure operates within predefined ranges core long-term levels are equities: 35%, bonds: 45%, alternative assets: 20%.

Constraints

Maximum exposure to any security: 3%, specialist fund: 5%.

Key Investor Information - Income

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Key Investor Information - Accumulation

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