Standard Life Investments

Aberdeen Standard Equity Income Trust PLC

Mex ID: ITASEI SEDOL: 0603959 Reuters: ASEI.L

Price
414.00
NAV
425.84
Premium/(Discount)
-2.78%
Daily Price Change
-13.00p (-3.04%)
Change date
06/12/2018

Figures above are updated every business day after the close of trading and those displayed are to the close of the previous business day. Figures are shown in pence (GBP) and the data is provided by, and copyright ©2018, FE.

General Trust Information

Objective

The Company's objective is to provide shareholders with an above average income from their equity investment while also providing real growth in capital and income.

Profile

The Company's objective is to provide shareholders with an above average income from their equity investment while also providing real growth in capital and income. The Directors set the investment policy which is to invest in a diversified portfolio consisting mainly of quoted UK equities which will normally comprise between 50 and 70 individual equity holdings. In order to reduce risk in the Company without compromising flexibility:• no holding within the portfolio will exceed 10% of aggregate net assets; and• the top ten holdings within the portfolio will not exceed 50% of net assets. The Company may invest in convertible preference shares, convertible loan stocks, gilts and corporate bonds. The Directors set the gearing policy which is to operate within parameters of between 5% net cash and 15% net gearing for the level of gearing that can be employed. The Directors have delegated responsibility to the Manager for the operation of the gearing level within the above parameters. The management of the Company’s investments and the day to day operation of the Company is delegated to Standard Life Investments (Corporate Funds) Limited (the “Manager”). Past performance is not a guide to future returns and future returns are not guaranteed. The price of assets and the income from them may go down as well as up and cannot be guaranteed; an investor may receive back less than their original investment. The fund may use derivatives to reduce risk or cost, or to generate additional capital or income at low risk. Usage of derivatives is monitored to ensure that the fund is not exposed to excessive or unintended risks.

Fund Manager

Thomas Moore

Thomas Moore

Thomas is an Investment Director within the UK equities team. He began his career in 1998, joining Schroder Investment Management as Assistant Fund Manager, UK Equities. He joined Standard Life Investments in 2002 as an Investment Analyst. He then managed EMEA portfolios before moving to the UK equities team in 2006. His responsibilities include managing the UK Equity Income Unconstrained Fund, an institutional fund, the Aberdeen Standard Equity Income Trust and analysing the banks and financial services sectors. Thomas began managing the Aberdeen Standard Equity Income Trust in November 2011.

Awards

What Investment – Best Investment Trust for Income – Standard Life Equity Income.What Investment – Best Investment Trust for Income – Standard Life Equity Income.

NMPI Status

Aberdeen Standard Equity Income Trust plc ('the Company') currently conducts its affairs so that securities issued by it can be recommended by financial advisers to ordinary retail investors in accordance with the FCA's rules in relation to non-mainstream investment products and intends to continue to do so for the foreseeable future. The Company's securities are excluded from the FCA's restrictions which apply to non-mainstream investment products because they are securities in a UK listed investment trust.

Performance

Trust Performance (on a bid to bid basis)

Powered by data from FE

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

Trust Performance & Returns

(on a bid to bid basis)
Fund performance
Sector performance
 Last 1 month*Last 6 months*Last 1 year*Last 3 years*Last 5 years*
Fund performance
Sector performance

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

* Values to-

Performance (on a bid to bid basis)

Powered by data from FE

Trust Performance(on a bid to bid basis)

(on a bid to bid basis)
Fund performance
Sector performance
 Last 1 month*Last 6 months*Last 1 year*Last 3 years*Last 5 years*
Fund performance
Sector performance

Past performance is not a guarantee of future returns. The value of investments may go down as well as up and you may receive back less than you invested. Your capital and income is not guaranteed.

* Values to -

** n/a indicates that fund performance information is not available for this period due to the date the fund was launched.

Current details

All prices displayed in p (GBP). Figures below updated at 05:30 pm. Figures are provided by, and copyright @2018, FE on a delayed basis.
EPIC code:ASEI
Market sector:
Mid price:421.0000
Bid price:416.0000
Offer:426.0000
Opening price:417.0000
Daily high:417.0000
Daily low:417.0000
Previous day's close:414.0000
Daily change:7.0000 (1.69%)

Factsheet

View daily prices

Related Literature

The cost, performance and risk calculations included in the Key Information Document (“KID”) follow the methodology prescribed by EU rules;

An investment in the Company may go down as well as up and past performance is not an indicator of future performance. An investment in the Company is suitable only for investors who are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses which may arise therefrom (which may be equal to the total amount invested);

Investors should be aware that the PRIIPs Regulation requires the AIFM, as PRIIP manufacturer, to prepare a KID in respect of the Company. This KID must be made available by the Investment Manager to retail investors prior to them making any investment decision and will be available on the Company's website. Standard Life (Corporate Funds) Ltd is responsible for the information contained in the KID and investors should note that the procedures for calculating the risks, costs and potential returns are prescribed by EU rules. The figures in the KID may not reflect the expected returns for the Company and anticipated performance returns cannot be guaranteed.

LSE Announcements

Video

Thomas Moore, manager of Standard Life Equity Income joins Tom Slater, joint manager of Scottish Mortgage, and Andrew Bell, chief executive of Witan to discuss their causes for optimism and concern in 2018 and the regions and sectors they believe will be the big winners of the coming year.

Video duration: 00:11:44

video still

How to Invest

Shares in Standard Life Investments' range of investment trusts are listed on the London Stock Exchange. As with any public quoted company, investment trust shares can be bought and sold on the stock market. This can be done through directly through a platform provider such as Standard Life or via a stockbroker, financial adviser or wealth manager.

We recognise professional financial advice is important before taking any investment decision. We recommend investors seek financial advice before taking any decisions. If you'd like to find an adviser in your area, take a look at www.unbiased.co.uk.

Alternatively, there are a number of platform providers who offer an online ‘execution only’ service, some of these are listed below.

You should note that by clicking any of the above links, you will leave Standard Life Investments' website and go to another website. We are not responsible for the content or accuracy of external websites.

The value of investments and the income from them can go down as well as up and is not guaranteed; an investor may get back less than their original investment.

Insight

Following the rules: why it pays to invest in regulation-laden financials

November 2017

Standard Life Investments' Thomas Moore explains how the sector's biggest headwind has become its tailwind.

A combination of incoming Europe-wide regulation, the rise of passive investing and a sustained period of ultra-low interest rates have all been weighing down on sentiment for asset managers and insurers in recent years.

However for Thomas Moore, manager of the Standard Life Equity Income Trust (SLEIT), the financial sector is proving a fertile ground for investment.

At the end of September 2017 Moore had around 44% of SLEIT allocated to financials, as he believes that the sector provides an attractive combination of yield and growth potential. To get an insight into how big a conviction call this is, it is more than double the next largest weighting of the portfolio which stands at 17.8% and is allocated to industrials.

Venturing far away from the crowd is an integral part of gaining an edge in a competitive field, as Moore explains:

'Our portfolio looks very different from our peer group, that's because we focus on our conviction levels rather than index weightings.'

By extending his and his team's focus right the way down the capitalisation spectrum, including large caps, mid-caps and small caps, he says the trust has managed to avoid the crowding seen elsewhere in the peer group.

This crowding has been especially evident in large cap pharmaceuticals, where the Trust has a zero weighting because he believes that cash generation is actually very poor among these multinationals. This therefore poses serious questions over their ability to continue to pay dividends over the medium term.

It's also been seen among bond proxy stocks, as Moore explains:

'As an asset class bonds have been performing well for three decades and that has also been reflected in the share price of many bond-like equities in sectors such as consumer staples, and that has resulted in some very high valuations.'

Pharmaceuticals and consumer staples are therefore two areas he is keen avoid. In stark contrast, the valuations on financials have been beaten down to levels that Moore believes were unjustified.

Moore has a positive view on the insurance sector, anticipating that Europe-wide Solvency II rules on the amount of capital that EU insurance companies must hold to reduce the risk of insolvency will improve the overall health of the sector. UK insurers Aviva and Prudential are among the largest holdings in the Trust.

'We took the view that actually the attitude of regulators was quite pragmatic, the life insurance companies were given time to comply with the rules and we were confident all our holdings had sufficient capital.'

'That's turned out to be the case and gradually the perceived risk on the life insurance sector has reduced, which means valuations have started to improve, and the companies have delivered strongly on cash and have continued to grow their dividends during this period.'

Beyond insurers, Moore is also seeing potential in companies with very balance-sheet-light activities such as asset managers.

Fund manager River & Mercantile has a predominately institutional client base, running assets for many of the UK's biggest pension schemes, it sits within the Trust's top twenty holdings.

Premier Asset Management, also makes the top twenty, diversifying exposure in the sector as its focus is on retail clients.

While these asset managers' business models differ, Moore is keen to point out the characteristics that unite them, and make them ideal portfolio additions.

'We see a wide range of opportunities across these different sub sectors. We look for high levels of cash flow generation when selecting holdings for our portfolio.  This cash is paid out in the form of dividends which makes us confident in the Trust's ability to deliver increased dividends to its.