Standard Life Private Equity Trust
Rated Fund 2018-19. Targets growth and income from European private equity
This investment trust aims to achieve long term total returns through a diversified portfolio of private equity funds, the majority of which have a European focus. It therefore offers something different to US-dominated trusts, such as Pantheon International, a long-standing Rated Fund in this space.
Standard Life Private Equity recently made changes to its dividend policy that boost 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.
Roger Pim, deputy head of SL Capital Partners, manages the trust and runs a diversified portfolio of around 50 private equity funds with relatively low company-specific risk. The 10 largest underlying investments accounted for less than 16% of assets at the end of 2018. The fund has a bias towards primary buyout funds, which account for 82% of assets.
Analysts at Winterflood Securities regard the trust as one of the leading listed private equity funds, offering shareholders concentrated exposure to a fund of funds strategy at a competitive cost. ‘The investment team’s experience and expertise in manager selection and ongoing monitoring is attractive in an asset class that sees considerable dispersion of returns, particularly given the fund’s flat management fee of 0.95% of net assets,’ says head of research Simon Elliott.
Given its strong long-term track record and attractive yield, he believes that the current discount offers a value opportunity for long-term investors, especially given the quality of its underlying portfolio.
Narrative and ratings content all as of 01 January 2019.See all Money Observer rated funds
|Nordic Capital Fund Viii Buy-Out||6.89 %|
|Ik Vii||5.72 %|
|3i Eurofund V||5.67 %|
|Exponent Private Equity Partners Ii||4.78 %|
|Permira V||4.56 %|
|Advent International GPE VIII Buy-out||4.44 %|
|Altor Fund Iv Buy-Out||4.33 %|
|Equistone Partners Europe Fund V Buy-Out||4.01 %|
|Bridgepoint Europe V||3.84 %|
|Pai Europe Vi||3.69 %|
Data provided by Morningstar.
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