Fund Research

Standard Life Equity Income

Last update 13 June 2018

Standard Life Equity Income aims to deliver an above-average income while also providing real growth in capital and income for investors. This is done through investing in a diversified portfolio, consisting mainly of quoted UK equities. Through exploiting Standard Life’s vast network of connections, the team searches for companies with strong and durable cash flows that help to support the consistently growing dividends.

Fund manager Thomas Moore employs an index-agnostic approach, evaluating the changing corporate environment and attempting to identify insights that are not fully recognised by the market.

To achieve this he places a great deal of emphasis on company visits. Throughout the year, either the manager or his analysts will meet around 3,000 companies in total, seeking to identify the key changes affecting each business.

Currently the portfolio is comprised of 71 stocks, sitting close to the upper limit of its range of 50 to 75 holdings. The trust’s largest exposure is to small caps (c.30%), which is almost 23% more than the benchmark and a key differentiator to peers.

Standard Life Equity Income has outperformed the benchmark over the longer term, delivering total returns of 1,263.7% since launch in 1991, relative to the benchmark return of 785.1%. Thomas and his unique investment approach have also stood out in the UK equity income sector, outperforming the FTSE All Share benchmark in five out of his seven years at the helm.

The past year has seen the discount narrow dramatically, from a discount of c.-10% in early 2017, hitting a premium at times during 2018, and currently trading at par.

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Fund History: Standard Life Equity Income

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