- Name change proposed
- Third interim dividend declared as 1.68p per share
- Dividend outlook confirmed for next financial year
The Board of Seneca Global Income & Growth Trust plc (SIGT) has today announced the plan to change its name to Momentum Multi-Asset Value Trust plc (MAVT), subject to approval by Companies House.
The Company’s Investment Manager, Seneca Investment Managers Ltd, was acquired by Momentum Global Investment Management Ltd (MGIM) and as a result of its integration into MGIM and consequent re-branding, the Board has resolved to change the name of the Company to Momentum Multi-Asset Value Trust plc.
It is the intention that this will become effective in March 2021 and a further announcement will be made in due course to confirm the actual date of the name change.
Third Interim Dividend
The Company has also today declared a third interim dividend in respect of the year ending 30 April 2021 of 1.68p per share (2020 – 1.68p per share) which will be payable on 19 March 2021 to Ordinary shareholders on the register on 26 February 2021, ex-dividend date 25 February 2021. As expected, this dividend will be paid from the Company’s significant distributable capital reserves.
Commenting on the news, Richard Ramsay, Chairman, Seneca Global Income & Growth Trust plc said:
“As a multi-asset, value driven investment company we seek to deliver both income and capital growth from a wide range of assets In this current market environment where dividend payments are challenging, we are pleased to be able to confirm that current and future dividends will be paid for at least the next financial year ending 30th April 2022.
“We very much look forward to working with the wider MGIM team which will provide us with extensive capabilities and investment insight.”
The Board recognises the importance of the predictability of dividends to Shareholders. It has previously intimated its intention, barring unforeseen circumstances, at least to maintain the quarterly dividend rate of 1.68p per share for the full year to 30 April 2021, and to evaluate an appropriate level for the Company’s dividend once portfolio companies which have been negatively impacted by COVID-19 and as a result cut, suspended or cancelled their dividends, re-establish their own dividend policies. The Board had hoped for greater clarity by now, but it is clear this will take longer to emerge. The Board has therefore decided that the Company will continue at least to maintain the 1.68p per share quarterly dividend rate for at least the next financial year to 30 April 2022, barring unforeseen circumstances.
As has been noted before, the Company has significant distributable reserves that allow the payment of an uncovered dividend for as long as may be considered appropriate. This policy will allow the Company to continue to be managed to achieve the best possible total return and allow for the natural recovery in the Company’s dividend income once the portfolio companies re-establish their polices rather than forcing structural changes to the portfolio in the search for income, or reducing the Company’s dividend to Shareholders when that may prove to have been unnecessary.