Standard Life Investments

Standard Life Equity Income Trust PLC

Mex ID: ITSLET SEDOL: 0603959 Reuters: SLET.L

Price
466.50
NAV
486.39
Premium/(Discount)
-4.09%
Daily Price Change
3.00p (0.65%)
Change date
12/12/2017

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 ©2016, 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 Standard Life Equity Income Trust plc will invest mainly in UK equities and may also hold a proportion in fixed interest stocks to supplement income, or to provide stability when the outlook for the UK equity market is less optimistic. Typical holdings will be 50 - 70 stocks with a minimum initial position of 1%.

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 Standard Life UK Equity Income Trust and analysing the banks and financial services sectors. Thomas began managing the Standard Life Equity Income Trust in November 2011.

Awards

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

NMPI Status

Standard Life 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 trus

Performance

Trust Performance (on a bid to bid basis)

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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 @2016, FE on a delayed basis.
EPIC code:SLET
Market sector:IT UK Equity Income
Mid price:466.5000
Bid price:0.0000
Offer:0.0000
Opening price:0.0000
Daily high:0.0000
Daily low:0.0000
Previous day's close:466.5000
Daily change:0.0000 (0.00%)

LSE Announcements

Video

Thomas Moore talks about investment trusts in general, the specifics around the Equity Income Trust he manages and gives a short-term outlook for the UK market.

Video duration: 00:04:19

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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

Tapping into dividend flows

June 2017

Investors are using equity income funds as a means of gaining attractive long-term total returns, not just for the purposes of producing an income.

While the strategy is most popular with retirees, investors of all ages have a high proportion of their portfolios invested in UK income funds – an average of 26% and as high as 32% for the over 70s, an analysis of holdings on the Hargreaves Lansdown Vantage platform shows.

The stock market has been a good source of income over the last ten years, particularly when compared to cash.

Open-ended UK equity income fund managers with at least a ten-year track record have returned four times more than cash over the last decade, turning a £10,000 investment at the start of 2007 into £15,799 by the end of 2016. That compares to £11,361 for the average instant access savings account, according to the Hargreaves Lansdown UK Equity Income Report.

The UK equity income investment companies sector has fared even better, turning £10,000 into £19,255, data from the Association of Investment Companies shows. That can be attributed, at least in part, to the ability of investment trust managers to take a longer-term view, as they are not distracted by inflows and outflows, and use gearing to augment returns in rising markets.

‘If on the eve of the financial crisis you had put your money into an equity income fund, you still would have significantly outperformed cash over ten years, despite the huge falls in the market witnessed in 2008 and 2009,’ said Laith Khalaf, a senior analyst at Hargreaves Lansdown.

‘This demonstrates that while cash is the best place for short-term savings, investors squirreling their money away for the long term should make sure they have a healthy amount invested in the stock market.’

Total return strategy

Income funds come in different shapes and sizes and that is amply demonstrated by the range of returns that have been generated over the last decade. In particular, some ‘income booster’ funds have done a very good job of providing a high income, but this has been at the expense of investors’ capital.

‘This is all well and good if you are prioritising jam today over jam tomorrow, but a total return strategy is a more sustainable way of generating income over the long term,’ said Khalaf.

The power of reinvesting dividends to deliver strong total returns is exemplified in the Barclays Equity Gilt Study 2017. A stock market investment of £100 at the end of 1899 would be worth just £195 in real terms without the reinvestment of dividend income. However, with reinvestment, the portfolio would have grown to £32,050.

Ben Yearsley, a director of Shore Financial Planning, said: ‘There is a good reason why equity income funds and trusts have proved so popular with investors over many decades – simply because they are investing in cash-generating, profitable, dividend-paying companies.

‘Dividends, ultimately, are the reason you invest. It is profit, and subsequent dividends paid to the owners of a business, that drive the long-term valuation.’

Share price anchor

One of the trusts Yearsley likes is the Standard Life Equity Income Trust, run on a total return basis by Thomas Moore, among the top-performing UK income managers by total return and income produced over the past decade.

He believes that cash is the best anchor in times like these, when stock price valuations are at record levels.

Dividends have also hit new peaks, with underlying UK dividend payments reaching £15.3 billion in the first three months of 2017, the highest first quarter figure on record. A year-on-year growth rate of 16.2%, fuelled by the weaker pound, helped to offset a decline in special dividends, according to the Capita UK Dividend Monitor.

‘Cash is the best anchor in this era of high valuations,’ said Moore. ‘Regardless of the latest macro noise, it is cash flow and dividend announcements at the company level that will provide the ultimate anchor for share prices.

‘As these announcements continue to beat market expectations, it is this anchor that gives me confidence in the performance of the trust in the months and years ahead.’

Stock pickers’ paradise

As the market’s focus shifts from macro to micro-level analysis, stock pickers can focus on identifying individual valuation opportunities across the market.

While there are valuation opportunities among overseas earners, Moore believes the bulk of the opportunities reside in UK domestic names, with growth in both the UK economy and corporate earnings remaining far more resilient than had been expected in the immediate aftermath of the EU referendum.

So where is he finding the most attractive stock opportunities at the moment? He looks for companies with a strong market positions, strong cash flow generation, robust balance sheets, rapid dividend growth and attractive valuations, and is finding ‘plenty’ of stocks with these characteristics.

Companies recently added to the portfolio include house builder Persimmon and home furnishings retailer Dunelm, both based in the UK, and the global mining company Glencore.