Changing tack

”‹Seneca Global Income & Growth (SIGT) has continued to outperform its flexible investment peer group, since QuotedData last wrote, while providing lower volatility of returns. Under its discount control mechanism, SIGT has been recently issuing and repurchasing shares (see page 2). Demand has been stronger than its managers expected and the trust has expanded. Assuming this trend continues, it should lower SIGT’s ongoing charges ratio (a measure of the annual drag on performance caused by operational expenses). Recently, SIGT’s manager has been reducing exposure to equities, with overseas equities taking the brunt. This reflects the manager’s views that equity markets have experienced reasonably strong rises during the last few months, and so are now at less attractive valuations, and that the global business cycle is making progress and we are moving closer to a point where we experience the next global recession (see page 3).