Aberdeen Standard Equity Income Trust plc

Equity income using an index-agnostic approach focusing on our best ideas from the full UK market cap spectrum


Daily prices as of 18 Oct 2021

Share Price 345.08p

Estimated NAV cum income 381.43p

Estimated NAV ex income 376.17p

Dividend Yield 6.0%

Premium / (Discount) to NAV cum income -9.8%

Premium / (Discount) to NAV ex income -8.6%

Latest news

An update from our investment manager, Thomas Moore - 21 September 2021

We are encouraged by the strength of recent company results, which we believe will act as a catalyst for the recognition of the robust fundamentals of our holdings.

By sector, we continue to favour financials, resources and consumer cyclicals. These sectors stand out as opportunities given the market’s scepticism over the recovery. We continue to see the market backdrop as supportive of our Focus-on-Change investment process, which tends to perform best in the long sweeps of stable market conditions when bottom-up analysis is rewarded.

While the economic recovery will not be a straight line, we remain confident in our holdings given the strength of their corporate fundamentals. We believe many of our holdings will emerge from the crisis with increased market share, enhancing their dividend and capital prospects. The reinstatement of dividends underlined the increased confidence of management teams in their capital position and profit outlook. After a long period of economic turmoil, the recovery in sentiment could be prolonged as good news is gradually absorbed.

Corporate earnings are a key driver of portfolio performance, allowing investors to shift their focus away from top-down geopolitical concerns. We believe that many of our holdings are materially mispriced and do not reflect their robust fundamentals. There are echoes with the period following the 2008 global financial crisis when economic recovery was the catalyst for very strong performance of our holdings. All of this bodes well for future performance.

 

 

Profile Information

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. The Directors set the investment policy which is to invest in a diversified portfolio consisting mainly of quoted UK equities which will normally comprise between 50 and 70 individual equity holdings. In order to reduce risk in the Company without compromising flexibility:• no holding within the portfolio will exceed 10% of aggregate net assets; and• the top ten holdings within the portfolio will not exceed 50% of net assets. The Company may invest in convertible preference shares, convertible loan stocks, gilts and corporate bonds. The Directors set the gearing policy which is to operate within parameters of between 5% net cash and 15% net gearing for the level of gearing that can be employed. The Directors have delegated responsibility to the Manager for the operation of the gearing level within the above parameters. The management of the Company’s investments and the day to day operation of the Company is delegated to Aberdeen Standard Fund Managers Limited (the “Manager”). Past performance is not a guide to future returns and future returns are not guaranteed. The price of assets and the income from them may go down as well as up and cannot be guaranteed; an investor may receive back less than their original investment. The fund may use derivatives to reduce risk or cost, or to generate additional capital or income at low risk. Usage of derivatives is monitored to ensure that the fund is not exposed to excessive or unintended risks.

Key people

Thomas Moore

Thomas Moore

Investment Manager

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

Iain Pyle

Iain Pyle

Investment Director

Iain has been an Investment Director in the UK Equities team for abrdn since 2015. He is the lead manager of Shires Income plc and is deputy manager for Murray Income Trust and Aberdeen Standard Equity Income Trust plc. Within his role, he manages the UK Equity High Income Fund and the Bothwell UK Equity Income Fund and has sector responsibility for oil & gas and banks.

Iain has been covering analyst for the pharmaceutical and healthcare sectors. He is also a member of the Pan-European fund management team. Prior to joining the company, Iain was a Vice President on the number one ranked European Oil & Gas research team at Sanford Bernstein from 2007. He also worked as a management consultant at PwC. Iain holds an MSc, Masters in Chemical Engineering, ACA, CFA and is a qualified accountant.

  • Thomas Moore

    Thomas Moore

    Investment Manager

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

  • Iain Pyle

    Iain Pyle

    Investment Director

    Iain has been an Investment Director in the UK Equities team for abrdn since 2015. He is the lead manager of Shires Income plc and is deputy manager for Murray Income Trust and Aberdeen Standard Equity Income Trust plc. Within his role, he manages the UK Equity High Income Fund and the Bothwell UK Equity Income Fund and has sector responsibility for oil & gas and banks.

    Iain has been covering analyst for the pharmaceutical and healthcare sectors. He is also a member of the Pan-European fund management team. Prior to joining the company, Iain was a Vice President on the number one ranked European Oil & Gas research team at Sanford Bernstein from 2007. He also worked as a management consultant at PwC. Iain holds an MSc, Masters in Chemical Engineering, ACA, CFA and is a qualified accountant.

Mark White

Mark White

Chairman

Appointed to the Board on 1 November 2013 and as Chairman on 5 February 2021, Mr White is a director of LGT Capital Partners UK Holding Limited. He is also a non-executive Director of Aviva Investors Holdings Limited and Chairman of Aviva Investors UK Fund Services Limited. He was previously Joint Head of JP Morgan Asset Management in Europe and Chief Executive of Jardine Fleming Investment Management in Hong Kong.
Caroline Hitch

Caroline Hitch

Non-Executive Director

Appointed to the Board on 1 January 2017 and as Chair of the Remuneration & Management Engagement Committee on 5 February 2021, Ms Hitch is also a non-executive Director of Schroder Asian Total Return Investment Company plc and Chair of CQS New City High Yield Fund Ltd. Her career in financial services was mainly with the HSBC group and most recently she was Head of Wealth Portfolio Management at HSBC’s asset management arm with investment responsibility for their flagship retail multi asset funds. She has worked in London, Jersey, Monaco and Hong Kong.
Sarika Patel

Sarika Patel

Non-Executive Director

Appointed to the Board on 1 November 2019, Ms Patel is a business leader with nearly 30 years' experience in a mixture of public and private organisations. She is a Chartered Accountant and a Chartered Marketer. Previously a partner at Zeus Capital, Sarika has been on a host of public and private sector boards. She is currently Chair of Action for Children, one of the UK's leading charities for children, and a Board Member of the Office for Nuclear Regulation where she chairs the Audit, Risk and Assurance Committee.

Jeremy Tigue

Jeremy Tigue

Senior Independent Director

Appointed to the Board on 1 October 2014 and as the Senior Independent Director with effect from 15 December 2016. Mr Tigue is a Non-Executive Director of The Mercantile Investment Trust plc and The Monks Investment Trust PLC. He was the Fund Manager of Foreign & Colonial Investment Trust PLC from 1997 to June 2014 and a Director of the Association of Investment Companies ("AIC") from 2003 to 2013.

  • Mark White

    Mark White

    Chairman

    Appointed to the Board on 1 November 2013 and as Chairman on 5 February 2021, Mr White is a director of LGT Capital Partners UK Holding Limited. He is also a non-executive Director of Aviva Investors Holdings Limited and Chairman of Aviva Investors UK Fund Services Limited. He was previously Joint Head of JP Morgan Asset Management in Europe and Chief Executive of Jardine Fleming Investment Management in Hong Kong.
  • Caroline Hitch

    Caroline Hitch

    Non-Executive Director

    Appointed to the Board on 1 January 2017 and as Chair of the Remuneration & Management Engagement Committee on 5 February 2021, Ms Hitch is also a non-executive Director of Schroder Asian Total Return Investment Company plc and Chair of CQS New City High Yield Fund Ltd. Her career in financial services was mainly with the HSBC group and most recently she was Head of Wealth Portfolio Management at HSBC’s asset management arm with investment responsibility for their flagship retail multi asset funds. She has worked in London, Jersey, Monaco and Hong Kong.
  • Sarika Patel

    Sarika Patel

    Non-Executive Director

    Appointed to the Board on 1 November 2019, Ms Patel is a business leader with nearly 30 years' experience in a mixture of public and private organisations. She is a Chartered Accountant and a Chartered Marketer. Previously a partner at Zeus Capital, Sarika has been on a host of public and private sector boards. She is currently Chair of Action for Children, one of the UK's leading charities for children, and a Board Member of the Office for Nuclear Regulation where she chairs the Audit, Risk and Assurance Committee.

  • Jeremy Tigue

    Jeremy Tigue

    Senior Independent Director

    Appointed to the Board on 1 October 2014 and as the Senior Independent Director with effect from 15 December 2016. Mr Tigue is a Non-Executive Director of The Mercantile Investment Trust plc and The Monks Investment Trust PLC. He was the Fund Manager of Foreign & Colonial Investment Trust PLC from 1997 to June 2014 and a Director of the Association of Investment Companies ("AIC") from 2003 to 2013.

Financial calendar

Year End 30 September
Accounts Published November
Annual General Meeting January
Dividend Paid March, June, September, December

Trust details

Aberdeen Standard Equity Income Trust plc

Registered Office:
Bow Bells House,
1 Bread Street,
London
EC4M 9HH

Registered in England & Wales. Company number 2648152

Launch date: 14 November 1991

Risk Warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. Please refer to the relevant Key Information Document (KID) prior to making an investment decision. Please be aware of scams that can affect investors.