Investments

Seneca offers our clientele access to our range of institutional-grade investment products. These Separately Managed Accounts (SMA’s) are managed in-house, by our Investment Committee ensuring our clients are optimally and equitably invested at all times. Our financial advisers in Australia are experts in combining these products, with our extensive range of curated opportunities to meet each client’s unique risk and return parameters.

Direct Investment Products

Seneca’s in-house investment team professionally manage our Australian equities portfolios, an asset class where we have developed a sustainable competitive advantage and a proven track record for success.

The investment philosophy is consistent across both portfolios – a focused portfolio of high-quality businesses with exceptional cash flow and sustainable growth.

Seneca Australian Shares SMA

Available to Retail, Wholesale, Sophisticated and Professional Investors.

Actively managed

20-40 companies from inside the S&P/ASX 200 Index

Fees: refer to the PDS

A focus on high-quality businesses, trading at reasonable prices
Strong balance sheets, sustainable growth, high cash flow/dividends
Diversified across sectors

Long-only: No leverage, no derivatives, no short selling

Available on the Praemium Investment Menu

Latest monthly update

Seneca Australian Small Companies Fund

Available to qualified Wholesale, Sophisticated and Professional Investors

Actively managed

20-50 companies listed on the ASX

Management Fees: 0.00% pa plus a 20% performance fee, with a high watermark

A focus on high quality businesses, trading at reasonable prices
Strong balance sheets, sustainable growth, high cash flow/dividends
Diversified across sectors

Long-only: No leverage, no derivatives, no short selling

Information Memorandum

Latest monthly update

Multi-Manager SMA’s

Every month our Investment Committee meet and run through a formalised process to review, assess and select the 4-8 investment managers to be included in each of our multi-manager SMA’s.

Global Equity

Latest monthly update

Suitability
Investors wanting a medium to long-term investment in Global equities via a diversified portfolio of both active stock selection and lower-cost index tracking investments and are willing to accept the risk of significant fluctuations in the value of their investment

Investment horizon
of 5 years +

Objectives
Long term capital capital growth & a rate of return in excess of benchmark over 5 year rolling periods

Benchmark
MSCI World Index ex Australia (TR in AUD)

Peer Group
ACS Equity Global

Target Asset
Allocation Range
100% Growth Assets

Characteristics
High Risk
Frequency of an annual negative return 5 in 20 years*
Historic max loss -25.58%*
Diversified across equity markets globally
Diversified across sectors & manager styles
Invests in global equity and listed property/infrastructure fund managers.

Australian Equity

Latest monthly update

Suitability
Investors wanting a medium to long-term investment in Australian equities via a diversified portfolio of both active stock selection and lower-cost index tracking investments and are willing to accept the risk of significant fluctuations in the value of their investment

Investment horizon
of 5 years +

Objectives
Long term capital capital growth & a rate of return in excess of benchmark over 5 year rolling periods

Benchmark
S&P ASX 300 Index TR

Peer Group
ACS Equity Australia

Target Asset
Allocation Range
100% Growth Assets

Characteristics
High Risk
Frequency of an annual negative return 4 in 20 years*
Historic max loss -25.55%*
Diversified across equity market sectors
Diversified across equity manager styles
Invests in domestic equity and listed property/infrastructure fund managers.

Aggressive Income

Latest monthly update

Suitability
Investors whose main objective is to generate a high level of income (yield) with less of a need for capital stability. A higher risk of capital loss can be expected, but overall total returns (capital growth & income) are also likely to be higher over the suggested investment time frame

Investment horizon
of 5 years +

Objectives
Higher yield/income generation from a balanced mix of defensive and growth assets

Benchmark
50% Bloomberg Global Aggregate
50% iShares S&P/ASX Dividend Opps ETF

Peer Group
ACS Mixed Asset Balanced

Target Asset
Allocation Range
50% Defensive Income Assets

Characteristics
Medium Risk
Frequency of an annual negative return 4 in 20 years*
Historic max loss -19.86%*
Diversified across yield generating assets
Diversified across income strategies
Invests in domestic and international fixed income, equities & property fund managers.

Absolute Return

Latest monthly update

Suitability
Investors who seek positive absolute returns regardless of market conditions while diversifying away exposure to the risk of allocating to a single strategy or single manager.

Investment horizon
of 3 years +

Objectives
Capital growth that is defensive in nature and uncorrelated to traditional asset classes/markets

Benchmark
RBA Trimmed Mean Consumer Price + 4%

Peer Group
ACS Alternative

Target Asset
Allocation Range
100% Absolute Return Strategies

Characteristics
Low – Medium Risk
Frequency of an annual negative return 3 in 20 years*
Historic max loss -13.52%*
Strategy diversification
Manager diversification
Invests Global Macro, Multi-Strat, Equity L/S, Equity Market Neutral fund managers

Defensive Income

Latest monthly update

Suitability
Investors whose main objective is stability of capital with the generation of some income. A lower risk of capital loss can be expected, but overall total returns (capital growth & income) are also likely to be lower.

Investment horizon
of 3 years +

Objectives
Income generation from defensive assets with modest potential for capital growth

Benchmark
50% Bloomberg AusBond Comp Index
50% Bloomberg Global Aggregate

Peer Group
ACS Fixed Interest Australia / Global Bond

Target Asset
Allocation Range
100% Defensive Income Assets

Characteristics
Low Risk
Frequency of an annual negative return 2 in 20 years*
Historic max loss -8.40%*
Diversified across fixed income
Diversified across managers
Invests in domestic and international fixed income/bond fund managers.

What is an SMA (Seperately Managed Account)?

A model portfolio, that is professionally managed by Seneca Financial Solutions and available on the Praemium investment platform.

The benefits of SMA’s

Direct Ownership

Unlike a managed fund, ETF or LIC, investors own each share directly.
You have full transparency on the portfolio like a traditional stockbroking account.
Dividend and franking credits are paid directly to your bank account (or if you prefer, reinvested.)

Control

Investments are NOT pooled, that is – you maintain individualised tax treatment and preferences
Full tax reporting included

Equality

All client portfolios are implemented equally – same time, same price. Regardless of client balances or fees-paid.

Flexible

Apply rules to your portfolio to ensure your ethical or sustainability preferences are respected.
Augment your model portfolio with other investments outside the model.
All of which is reported and consolidated in one place.

Transparent

24/7 access to daily reconciled holdings, performance and tax reporting
Receive trade updates with supporting investment rationale, every time a change is made to your portfolio.

Consciousness

The forefront of providing ESG platform solutions, offering a breadth of choice
to create an ethical investment solution that best suits your unique ethical requirements.