Patria Private Equity Trust Plc · LSE:PPET
Patria Private Equity Trust — Standard Life Equity Income Trust — Shareholder Meeting (January 2018)
20 slides from Patria Private Equity Trust's shareholder meeting presentation, Jan 18, 2018
Slide 1: Standard Life Equity Income Trust plc Manager presentation
Standard Life Equity Income Trust plc Manager presentation Thomas Moore Manager, Standard Life Equity Income Trust plc Evan Bruce-Gardyne Head of Investment Trusts, Standard Life Investments 18 January 2018 For general information of shareholders - not intended as a forecast, research or investment
Slide 2: Important information
The information shown relates to the past. Past performance is not a guide to the future. The value of an investment can go down as well as up. This material is for informational purposes only. This should not be relied upon as a forecast, research or investment advice. It does not constitute an off
Slide 3: Year to 30 September 2017 highlights
Year to 30 September 2017 highlights Year on year Total Return 30 Sept 2017 30 Sept 2016 change (%) (%) NAV per share 478.6p 431.5p 10.9 14.7 Share price 459.6p 412.4p 11.5 15.9 FTSE All-Share Index 4049.89 3,755.34 7.8 11.9 Revenue (£000s) 10,173 8,997 13.1 Revenue EPS 19.23p 17.92p 10.0 DPS 17.10p
Slide 4: SLEIT performance track record
SLEIT performance track record SLEIT performance against market and during manager tenure 126.3% • SLEIT performance benefiting 125.4% from index-agnostic investment 83.7% approach Process identifying stocks with potential for rapid dividend growth and yield compression Differentiated portfolio
Slide 5: SLEIT discount relative to the UK Equity Income sector average
SLEIT discount relative to the UK Equity Income unweighted sector average since September 2012 6% 4% 2% 0% -2% -4% -6% -8% -10% -12% Sep 12 Mar 13 Sep 13 Mar 14 Sep 14 Mar 15 Sep 15 Mar 16 Sep 16 Mar 17 Sep 17 Standard Life Equity Income Trust discount Unweighted sector average discount Source: Stan
Slide 6: SLEIT track record of dividend growth and yield
SLEIT track record of dividend growth and yield DPS (p) 18 5.00 17 4.50 16 Sep Sep % 15 4.00 2011 2017 change 14 DPS 12.4 17.1 37.9% 13 3.50 Share 276.5 459.6 66.2% 12 price 3.00 11 Yield 4.5% 3.7% 10 2.50 Sep 11 Sep 12 Sep 13 Sep 14 Sep 15 Sep 16 Sep 17 DPS (lhs) Standard Life Equity Income yield (
Slide 7: SLEIT revenue reserves and dividend cover
SLEIT revenue reserves and dividend cover 7,000 90% 6,500 85% 6,000 80% 5,500 5,000 75% 4,500 70% 4,000 65% 3,500 60% 3,000 2,500 55% 2,000 50% 2011 2012 2013 2014 2015 2016 2017 Revenue reserves (post final dividends)(£000s) (lhs) Dividend cover (rhs) Source: Standard Life Investments. 30 September
Slide 8: Company objectives
Company objectives • “To provide shareholders with an above average income from their equity investment while also providing real growth in capital and income” • To achieve the investment objective by investing in a diversified portfolio consisting mainly of quoted UK equities Slide content relates
Slide 9: Objective: Deliver real growth in capital
Objective: Deliver real growth in capital % 35 SLEIT NAV Total Return 30 FTSE All-Share Total Return 25 20 RPI 15 10 5 0 -5 Year to Year to Year to Year to Year to Year to 30 September 30 September 30 September 30 September 30 September 30 September 2012 2013 2014 2015 2016 2017 Source: Thomson Reut
Slide 10: Objective: Deliver above average income
Objective: Deliver above average income SLEIT DPS FTSE All-Share DPS DPS 2017 : 17.1p 210 +11.0% 190 170 150 130 110 90 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Standard Life Investments, SLEIT, Thomson Reuters DataStream, 30 September 2017. Indexed to September 2005
Slide 11: Index has heavy dividend concentration in a few mega-caps
Index has heavy dividend concentration in a few mega-caps FTSE All Share dividend concentration (2017) Value of dividends Number of companies 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Top 10 biggest dividend payers (stocks 1-10) Next 10 biggest dividend payers (11-20) Source: Bloomberg, 31 Decembe
Slide 12: Index-agnostic approach broadens the investable universe
Index-agnostic approach broadens the investable universe FTSE 100 companies cutting dividends – 2014 to 2017 Glencore Tesco Centrica Antofagasta Standard Chartered Vedanta Sainsbury Severn Trent Rolls Royce Anglo American Barclays Pearson Morrisons Drax BHP Billiton Provident Financial Rio Tinto 3.5
Slide 13: SLEIT benefiting from exposure to FTSE 250 dividend growth
SLEIT benefiting from exposure to FTSE 250 dividend growth FTSE 250 FTSE 100 1000 900 800 700 600 500 400 300 200 100 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: Standard Life
Slide 14: Support for mega-caps from currency is set to diminish
Support for mega-caps from currency is set to diminish • Mega-cap stocks generate the bulk of their earnings FTSE 250 has lagged FTSE 100 overseas, so Sterling’s 2016 devaluation provided a 135 significant currency benefit, reducing the pressure on dividend 130 cover 125 120 • At $1.36/£, the curren
Slide 15: Implications of potential shift in market focus from macro to micro
Implications of potential shift in market focus from macro to micro • The uncertain political environment has resulted in a Domestic valuations – what’s priced in? polarisation in valuation between sectors. Investors have UK Domestics: PE vs. Market crowded into large cap defensive stocks, while the
Slide 16: SLEIT portfolio characteristics
SLEIT portfolio characteristics 30 September 2017 FTSE 100 FTSE 250 Smaller companies SLEIT portfolio allocation 38% 39% 23% FTSE All Share 80% 16% 4% UK Equity Income SLEIT Sector Average Gross assets £266.0m £450m Dividend yield 3.7% 3.5% 5 year dividend growth (CAGR) 6.0% 4.3% Discount 4.0% 5.6%
Slide 17: Stock and sector positioning
Stock and sector positioning Top 10 Holdings % Overweight / Underweight sectors* Aviva 2.9 Financial Services Prudential 2.7 Life Insurance Construction & Sage 2.7 Materials Software and BP 2.6 Computer Services Nonlife Micro Focus 2.6 Insurance Close Brothers 2.6 Banks Tobacco River & Mercantile 2.
Slide 18: Portfolio composition by sector and geography
Portfolio composition by sector and geography Portfolio weightings by sector Source of revenue by region 3% 5% 2% 5% 5% 9% 6% 43% 7% 14% 55% 11% 17% 18% Financials Industrials UK Continental Europe Consumer Services Consumer Goods North America Asia / Pacific Oil & Gas Technology Basic Materials Tel
Slide 19: SLEIT performance attribution and portfolio outlook
SLEIT – performance attribution and portfolio outlook Stock contribution – 12 months to 30 September 2017 Top 5 contributors to Absolute contribution Bottom 5 contributors to Absolute absolute return (%) absolute return contribution (%) Rio Tinto 1.3 BT Group -0.8 River & Mercantile 1.2 Imperial Bra
Slide 20: Summary
Summary • SLEIT offers a differentiated, index-agnostic investment approach: Focus on sustainable dividend growth Limited reliance on FTSE 100 mega-caps and bond proxies • Well-resourced, experienced UK equities team: Focus on Change investment process has been tried and tested 61 strong equ
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