The managers of the Seneca Diversified Growth fund have added money to several niche investment areas in an effort to diversify the fund.
Simon Callow and Mark Wright have ramped up their exposure to alternative assets to 14.7 per cent within the multi-asset fund by buying into “aircraft leasing, peer-to-peer lending and commercial property”.
A position was opened recently in Doric Nimrod Air Two, which is the largest of the three listed aircraft-leasing companies.
The Seneca managers said the firm, which has grown its profits for 26 consecutive years, “provides an attractive, high-single-digit yield, as well as the potential for capital growth in the medium term”.
Mr Callow and Mr Wright have also bought into the newly listed Ranger Direct Lending fund, one of a spate of peer-to-peer finance companies that have come to market to exploit investor demand.
The trust has targeted a 10 per cent yield by investing in a portfolio of “established [small- and mid-cap firms] and consumer loans”, sourced from US peer-to-peer platforms.
The fund’s commercial property exposure has also been increased as the managers have participated in the capital raising from AEW UK Reit, which they liked because it was focused on “second-tier retail property, predominantly in regional cities”.