Seneca reduces European holdings as end of investment cycle gets ever closer

by | Jun 18, 2018

Share this article

 

Seneca has reduced its European equity holdings, believing that the end of the investment cycle has got ever closer.

Peter Elston, chief investment officer, Seneca Investment Managers, said: “At the end of May we further reduced our equity allocation across all funds, in line with our decision last year to cut exposure every few months as we approach the end of the investment cycle. Most of the reduction was in European equities, where we think inflation pressures are likely to surface next. The proceeds of our reduction in equities went into cash.

 

“In the short term, while expectations for interest rate hikes may have fallen, the developed world is still very much in tightening mode and increases have been delayed, not abandoned. Wage pressures are accelerating, as a result of low unemployment, and these in turn will feed through to higher inflation.

“As we’ve previously stated, we don’t believe the next bear market is imminent, but we’re preparing well in advance. When driving, you should always start braking as you approach a bend, not when you reach it – the same principle applies to tactical asset allocation. We still believe an economic downturn is likely in 2020 and hence are taking action in advance to mitigate the downside
for investors.

“Equity allocations now stand at 34% for the Seneca Diversified Income Fund, 49% for Seneca Diversified Growth and 54%% for the Seneca Global Income & Growth Trust reduced from 35%, 51% and 55% respectively.”

 

Share this article

Related articles

GBI 35 | Opportunity Knocks in 2023 | December 2022

GBI 35 | Opportunity Knocks in 2023 | December 2022

Season’s Greetings to all our Readers and Clients. While some business sectors start to wind things down for the year, we are busier than ever planning for the Spring and the tax year end. So, with this in mind we bring you our usual mix of news and opportunities that...

Trending articles

IFA Talk logo

IFA Talk is our flagship podcast, designed to fit perfectly into your busy life, bringing the latest insight, analysis, news and interviews to you, wherever you are.

IFA Talk Podcast - listen to the latest episode