Standard Life Private Equity Trust PLC
Rated Fund 2018-20. Targets growth and income from European private equity
The value of this investment trust has only edged up over the past year, but it pays a yield of almost 4%, so we are sticking with it for 2020. Its focus on Europe marks it out from US-dominated private equity trusts such as Pantheon International, a longstanding Rated Fund.
Standard Life Private Equity recently made changes to its dividend policy that have boosted its attractiveness to income-seekers. In 2017 it started paying an annual dividend equivalent to a 3.5% yield and in 2018 moved from paying dividends half-yearly to quarterly, to appeal to those looking for a regular income stream from their investments.
The leadership of its management changed in 2018 when Roger Pim moved from SL Capital Partners, where he had worked for 15 years, to another role in parent company Aberdeen Standard Investments. Merrick McKay succeeds him on this trust. He became head of European private equity at SL Capital in 2018, having worked for it for four years previously. He has a wealth of previous experience in private equity markets and has skin in the game – he has 100% of his family’s Isas invested in the fund.
The trust is well-diversified, with its 10 largest underlying investments accounting for just 15% of assets. It has a bias towards primary buyout funds, which account for 85% of assets. Shares in the trust de-rated significantly, from a 9% discount at the start of 2018 to 25% a year later – a level that Winterflood Securities said was hard to justify given the trust’s long-term performance record, the quality of its portfolio and the strength of its balance sheet.
Narrative and ratings content all as of 01 January 2020.See all Money Observer rated funds
|Ik Fund Viii||11.11 %|
|3i Eurofund V||7.49 %|
|Advent Global Private Equity Vii||6.09 %|
|Permira V||5.34 %|
|Nordic Capital Viii||5.16 %|
|Altor Fund Iv||4.58 %|
|Exponent Private Equity Partners Iii, L.P.||4.57 %|
|Bridgepoint Europe V||4.31 %|
|Cvc Vi||3.79 %|
Data provided by Morningstar.
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