Finding diversified income streams for your ISA
There is a common misconception that income investing is just for those at or approaching retirem...
VT Momentum Diversified Income
The objective of the VT Momentum Diversified Income fund is to produce a high level of regular income, with the prospect of preserving the real value of capital in the long term. The managers have a value-focused style and will invest across all asset classes including UK and overseas equities, fixed income, property and specialist investments held through third-party funds. Save for the regulatory requirements, this is a go-anywhere portfolio without any constraints.
Previously VT Seneca Diversified Income
Our opinion
This is a well-diversified, global, multi-asset income-focused fund, with a common sense investment process that focuses on value investing and income generation. The four-strong investment team behind the fund execute their ideas via a mix of funds and direct securities. Using both alternative and traditional asset classes enables the team to achieve true diversification. As this fund distributes a monthly income, it should appeal to income-seeking investors with a balanced risk profile.Company description
Momentum Global Investment Management Limited (MGIM), the UK-based subsidiary of Momentum Metropolitan Holdings Limited, acquired Seneca Investment Management in 2020, creating a business with assets under management of almost £5bn. The focus of the business remains unchanged, with investors ranging from institutions, such as pension funds and charities, through to financial advisers, discretionary private client managers and personal investors. The Seneca managers will remain and will continue to focus on multi-asset value investing.
Fund manager
VT Momentum Diversified Income fund is run by a team of four investment professionals with a combined 60+ years investment management experience. The managers are Richard Parfect, who founded Seneca in 2002 and leads specialist asset research; Mark Wright, who leads UK equity research; Tom Delic who leads emerging markets research; and Gary Moglione, who leads on developed market global equities and fixed income.
We like to keep things simple and understandable, with a clarity of process creating a quality of outcome.
Richard ParfectFund manager
Investment process
The VT Momentum Diversified Income fund has a very clearly defined and well-disciplined process. The process is very much team-based, and this multi-asset income fund makes use of all the different asset classes available, including private equity and specialist finance where suitable, in meeting the fund’s objective. The team carries out in-house research looking for value investments, with each team member responsible for specific areas. The result is a globally diversified, multi-asset income portfolio. The value style tends to result in the managers buying out-of-favour investments and they then have to bide their time in order for the investment to pay off. This could be quite a lengthy process, but hopefully a rewarding one.
ESG
ESG - Limited
The fund has a value-driven approach, meaning the managers will primarily look for investments that are out of favour, and thus trading on attractive valuations. However, if they believe this is justified by poor conduct, which will have a material impact on the investment case, they will factor this into their investment decision. The multi-asset approach means that specific factors related to ESG are not directly applied, though there is a focus on governance, especially when it comes to considering investment trusts and boards.
Risk
The main risks for investors in VT Momentum Diversified Income are stock selection and asset allocation. However, these risks are mitigated by the very disciplined investment approach that encourages team discussion and appraisal. The true multi-asset approach also helps to further reduce the overall risk of the portfolio. It is also encouraging that the managers consider risk as the possibility of permanent loss of capital, and not just purely the fluctuation in the value of their investments.
Read more about this fund
adviser only
Face to face with Richard Parfect, co-manager of the VT Momentum Diversified Income fund
The VT Momentum Diversified Income fund is a multi-asset portfolio which aims to generate a high ...
The best investment decisions of 2023
As we stand on the threshold of a new year, now is an opportune time to engage in a thoughtful ye...
The information, data, analyses, and opinions contained herein (1) include the proprietary information of FundCalibre, (2) may not be copied or redistributed without prior permission, (3) do not constitute investment advice offered by FundCalibre, (4) are provided solely for informational purposes and therefore are not an offer to buy or sell a fund, and (5) are not warranted to be correct, complete, or accurate. FundCalibre shall not be responsible for any trading decisions, damages, or other losses resulting from, or related to, this information, data, analyses, or opinions or their use. The Elite Fund rating is subjective in nature and reflects FundCalibre’s current expectations of future events/behaviour as they relate to a particular fund. Because such events/behaviour may turn out to be different than expected, FundCalibre does not guarantee that a fund will perform in line with its FundCalibre benchmark. Likewise, the Elite Fund rating should not be seen as any sort of guarantee or assessment of the creditworthiness of a fund nor of its underlying securities and should not be used as the sole basis for making any investment decision. FundCalibre disclaims any responsibility for trading decisions, damages or other losses resulting from any use of the Elite Fund rating. All performance data, as well as fund size, OCF, AMC, annual income (historic), share price discount or premium, is sourced directly from FE Analytics, and will change periodically.