Seneca Global Income & Growth Trust PLC (LON: SIGT) have given shareholders a modest update on Wednesday, which alluded to the tough trading conditions in the finance and investment sphere.
Seneca Growth Capital VCT Plc is a generalist VCT aiming to generate returns from a diverse portfolio of both private and AIM quoted growth capital investments.
Shares of Seneca Growth received a 0.23% boost despite the modest update, and shares trade at 174p. 4/12/19 14:08BST.
The firm it underperformed against its benchmark for the first half of its financial year, due to the continued “volatility of underlying financial markets”.
For the six months to the end of October 31, Seneca Global Income reported a net asset value negative return of 1.6%, compared to its CPI+6 annualised benchmark, which made a positive return of 3.7%.
The firms net asset value per share on October 31 was 172.89p, up 6.2% from rom 162.87p a year earlier but 3.5% lower from 179.08p as the end of April.
The Seneca fund said that during the period, the UK mid-cap companies in its portfolio performed well as fears of a no-deal Brexit faded. However the trust’s portfolio suffered from a lack of exposure to US equities and sovereign debt.
Business was dampened by performance from firms such as Kier Group PLC (LON: KIE) and Woodford Patient Capital Trust PLC (LON: WPCT).
Seneca paid two interim dividends of 1.68 pence per share for the period, up 2.4% from 1.64p year-on-year.
“There are signs that valuations of some equities now reflect much of the risk and prevailing uncertainty. The UK has of course been dominated by Brexit uncertainty and with an election now looming, it is difficult (and dangerous) to predict the outcome of either. Elsewhere, US-China trade discussions rumble on, and future US monetary policy remains uncertain,” said Chair Richard Ramsay.
“The diverse range of assets comprising the company’s portfolio should provide reasonable returns over time, as well as real risk reduction, which seems particularly relevant in the current environment,” Ramsay added.
Additionally, Monks Investment Trust (LON: MNKS) gave shareholders an update, which entailed a similar story to the one outlined by Seneca. Monk’s revealed they had underperformed in the market, however did allude to tough market conditions coupled with political and economic uncertainty.
The gloom has hit all industries, as Moody’s lowered the banking outlook from stable to negative yesterday.
The countdown to the election continues, and it seems that there will be no sign of recovery until there is some clarity on the Brexit negotiations and the US China trade war which continues to dampen global trading.
