Investments  

Seneca attracts £1m inflows a week

Seneca attracts £1m inflows a week

Seneca, a Liverpool based fund management firm attracted net inflows of £1m a week in 2018.

The Liverpool-based fund house, which was founded by former fund managers of the Merseyside pension fund, increased its assets under management to £500m, a rise of 70 per cent, in the 2018 calendar year.

This included £50m of net inflows from advisers and retail investors, equating to £1m a week, plus institutional mandates and gains from market movements.

Many of the Seneca funds had adopted a position at the start of 2018 that was very cautious on the outlook for equities, a stance which David Thomas, chief executive of the company, said had benefitted the firm in 2018.

All of the money the firm currently manages is on a multi-asset basis, and Mr Thomas said this would remain the case for the time being.

He added: "The investments we have made in the business are about improving IT and administration. We are transitioning to being a bigger firm, and that requires investment in the infrastructure of the business."

Among the institutional mandates won by the firm over the past year was a £200m mandate to manage assets for Foster Denovo, a financial advice firm, which it won in July 2018.

Seneca stated net flows were positive in each of the 2018 quarters, albeit they were better in the beginning of the year.

Many of Seneca's rivals felt the fallout of the market rout towards the end of 2018.

This morning (January 23) Brewin Dolphin reported its assets under management fell 7.7 percent in the quarter to December due to stressed market conditions and slowed activity from advised clients. 

AJ Bell's first trading update since it floated also revealed assets under administration had fallen by 4 per cent in the three months to the end of December.

Darius McDermott, managing director at Chelsea Financial Services, said he liked the approach Seneca takes to multi-asset, investing, which is focused on the value style of investing.

He said he particularly rated the firm's Global Diversified Income fund.

david.thorpe@ft.com