Page 34 - DIY Investor Magazine - Issue 28

NEW LOOK, BROADER RESOURCES, SAME PROVEN APPROACH The newly renamed Momentum Multi-Asset Value Trust continues investing in quality value opportunities across different sectors in the UK, with deeper and stronger resources at its disposal... Disclosure – Non-Independent Marketing Communication. This is a non-independent marketing communication commissioned by Momentum Multi-Asset Value Trust. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research. The last twelve months have been marked by changes few of us could have imagined at the dawn of 2020. From the shift to homeworking to Zoom quizzes and always having a mask in your pocket, the way we live day-to-day is almost unrecognisable. Yet, not all these changes have been unwelcome. Many have benefitted from newfound flexibility in their working lives or have reconnected with old friends with an abundance of time on their hands. A positive change has come for the investment trust formerly known as Seneca Global Growth & Income (SIGT) too. Following the acquisition of Seneca Investment Managers by Momentum Global Investment Management, the trust has become Momentum Multi-Asset Value Trust (MAVT). In this article, we are reintroducing you to the trust known for its ‘refined value’ approach. IDEAS EVERYWHERE The newly renamed MAVT will continue to aim to grow capital and income in real terms over the longer term, using investments in direct securities and third-party funds. Crucially, the trust’s four incumbent managers – who are remaining in post – will carry on employing their unique, value- influenced decision-making process to invest in a range of assets. This process has encouraged the team to invest in sometimes out-of-favour asset classes or areas, with the potential to yield significant results. One such example is the trust’s allocation to the UK, which twelve months ago many investors would have considered inadvisable. Yet, in the first quarter of this year, this allocation has proved the making of the trust, significantly boosting its returns as the UK came back into favour. However, where new investment ideas were previously sourced by the four managers alone, they will now have access to a 21-person investment team. These individuals all have their own experiences and sector specialities, bringing diversity of ideas and inspiration flowing into the trust. The trust, which already invested beyond equities, should benefit from a wealth of experience across the board, while still being managed by the same steady hands that have seen it consistently grow its dividend and capital over the last few years. The combination of Seneca and Momentum makes sense. Both companies are experienced multi-asset investment houses, with Momentum currently having over £4bn in assets under management. But with Momentum’s considerably greater size, the acquisition also gives the management team at Seneca access to more technology through which to assess their investment options and more support from an operational standpoint. A PROVEN PROPOSITION While these additional resources are helpful, they mean nothing without a strong investment foundation underlying them. Fortunately, in MAVT, investors have just that. In particular, the trust has been a strong source of diversified income for investors in recent times. DIY Investor Magazine | Apr 2021 34