Fund Research

Standard Life Private Equity Trust

22 February 2018 View latest version

Standard Life Private Equity (SLPE) represents a “pure” fund of funds (with no co-investments) and is the only such trust with no performance fee. SLPE, as a “conviction fund investor”, has a more concentrated portfolio relative to Pantheon or HarbourVest’s very diversified funds, although in our view, slightly less concentrated when compared to Fund of Funds (FoF) such as ICG Enterprise and F&C Private Equity.

At the start of 2017, the company started to increase exposure to North America. The team expects exposure to gradually increase, as well as continue to target secondary investments to take advantage of attractive investment opportunities and help reduce cash drag.

In common with peers, realisations from the portfolio have been coming in thick and fast. SLPE currently has c.14.5% of NAV in cash. As at the end of January, the “over-commitment” level is currently 28% - below the target long-term average of 35% - 70% but up since the September 2017 figure of 24.5%. On a commitment-cover basis (representing cash and gearing, divided by uncalled commitments) SLPE registers 0.6x (according to JPMorgan Cazenove) which is very much in-line with the FoF peers.

Since inception in 2001 to 30 September 2017, SLPE has delivered an annualised NAV total return of 9.9% compared to the FTSE All-Share Index annualised total return of 5.8%, representing very strong out-performance of quoted markets. Over the past five years, SLPE has performed broadly in-line with peers but this masks a much stronger recent performance that the Trust (and peers) have delivered in the past four years relative to equity markets.

The Board are now paying a materially increased dividend (by using a combination of income (c.2/3rds) and capital (c.1/3rd)) of 12.0p per share, equivalent to a yield of approx. 3.6% on the current share price. Going forward, the Board intend to grow the dividend at least in line with inflation and have moved to pay quarterly dividends, further enhancing the attractiveness of the Trust to income investors.

SLPE currently trades at a discount of c 11%, slightly narrower than the peer group average of 12.2%.

Kepler Trust Intelligence provides research and information for professional and private investors. In order to ensure that we provide you with the right kind of content, and to ensure that the content we provide is compliant, you need to tell us what type of investor you are.

Continue

Fund History: Standard Life Private Equity Trust

More Research

Welcome to Kepler Trust Intelligence

Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority.
Please enter a valid email address
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid email address
{{item.msg}}
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
Kepler Trust Intelligence is authorised in the UK by the Financial Conduct Authority. To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
{{item.msg}}
Please enter a company name
{{item.msg}}
Please enter a location name
{{item.msg}}
Please choose an option
{{item.msg}}
Please enter a platform
{{item.msg}}
Please choose an option
{{item.msg}}
Please select a range
{{item.msg}}
Please enter a trust
{{item.msg}}
?
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
{{item.msg}}
View an example
Please select an option
{{item.msg}}
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
{{item.msg}}
Please enter your first name
{{item.msg}}
Please enter your last name
{{item.msg}}
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
{{item.msg}}
Please enter a valid password
{{item.msg}}
Please enter a valid password
{{item.msg}}
Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase. We do not share your personal information and your answers are not linked to your identity for marketing purposes.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.