Interim Management Statement

RNS Number : 1376B

Standard Life Equity Income Tst PLC

12 August 2008

 

Standard Life Equity Income Trust PLC

Interim Management Statement ('IMS') for the three months ended 30 June 2008

To the members of Standard Life Equity Income Trust PLC

This IMS has been produced solely to provide additional information to shareholders as a body to meet the relevant requirements of the UK Listing Authority's Disclosure and Transparency Rules. It should not be relied upon by any other party or for any other purpose.

This IMS relates to the period from 1 April 2008 to 30 June 2008 and contains information that covers this period and up to the date of publication of this IMS, unless otherwise specified.

Investment objective

The objective of Standard Life Equity Income Trust PLC is to provide shareholders with an above average income from their equity investment while also providing real growth in capital and income.

Investment Policy

The Directors intend to achieve the investment objective by investing in a diversified portfolio consisting mainly of quoted UK equities. The portfolio will normally comprise between 50 and 70 individual equity holdings. In order to reduce risk in the Trust without compromising flexibility:

• no holding within the portfolio should exceed 10% of net assets; and

• the top ten holdings within the portfolio will not, in aggregate, exceed 50% of net assets

Convertible preference shares, convertible loan stocks, gilts and corporate bonds may make up the balance of the portfolio.

The Directors have set parameters of between 95 per cent. and 115 per cent. for the level of gearing that can be employed. The maximum level of borrowings will therefore represent 15 per cent. of net assets and the maximum cash position will be equivalent to 5 per cent. of net assets. The Directors have delegated responsibility to the Manager for the operation of the gearing level within the above parameters.

The Manager's investment process combines asset allocation, stock selection, portfolio construction, risk management and dealing. The investment process is research-intensive and is driven by the Manager's distinctive focus on change which recognises that different factors drive individual stocks and markets at different times in the cycle. This flexible but disciplined investment process ensures that the Manager has the opportunity to perform in different market conditions.

Benchmark

FTSE All-Share Index. 

Material events 

An interim dividend of 3.15 pence per share was paid on 27 June 2008 to those shareholder entered in the share register on 6 June 2008. The ex-dividend date was 4 June 2008.

The Board is not aware of any significant events or transactions which have occurred between 30 June 2008 and the date of publication of this IMS which would have a material impact on the financial position of the Company. For the Manager's latest Investment Review & Outlook, please refer to the Quarterly Factsheet which may be found, together with the latest share price and net asset value per share, on the Company's webpage which is hosted by the Manager at www.standardlifeinvestments.co.uk/its.

Material transactions 

As at 30 June 2008 and the date of this IMS, the Company's issued ordinary share capital with voting rights is 37,930,579 ordinary shares which excludes an additional 1,807,328 ordinary shares held in treasury.

Ten largest equity holdings as at 30 June 2008

		Value - £'m	% of Total Assets	Purchase ('P') or Sale ('S') in quarter
1	BP	10.611	9.0	-
2	Vodafone	7.1919	6.1	-
3	Royal Dutch Shell	6.3666	5.4	-
4	Glaxosmithkline	4.8339	4.1	-
5	Xstrata	4.5981	3.9	-
6	Anglo American	4.4802	3.8	-
7	Royal Bank of Scotland	4.3623	3.7	-
8	Imperial Tobacco	3.7728	3.2	-
9	HSBC	3.6549	3.1	-
10	British American Tobacco	3.5370	3.0	P
			45.3

Sector allocation as at 30 June 2008 

	% of Total Assets
Financials	19.0
Oil & Gas	17.7
Basic Industries	12.9
Utilities	12.9
Industrials	10.4
Consumer Goods	8.1
Telecoms	7.3
Consumer Services	6.6
Health Care	4.0
Technology	1.1
Total	100.0

General description of Company's financial position and performance as at 30 June 2008

Gross Assets	£117.9m
Share price	264.00p
Net asset value (excluding income) per share	291.93p
Discount of share price to net asset value	9.6%
Yield (net)	4.0%
Current equity gearing	7.7%

Performance for year(s) ended 30 June 2008 *

	1 year	2 Years	3 years	4 years	5 years
	%	% p.a.	% p.a.	% p.a.	% p.a.
Share price	-16.7	-4.4	2.5	5.0	4.7
NAV	-17.5	-2.5	3.3	5.5	7.1
FTSE All-Share Index	-16.1	-1.9	3.7	6.4	7.7

* The percentage growth figures are capital returns calculated over year(s) ended 30 June 2008 and include retained revenue. Standard Life Investments was appointed to manage the Standard Life Equity Income Trust in November 2005.

Source: Standard Life Investments and Thomson Financial Datastream

Note: Past performance is not a guide to future performance and that the value of shares can go down as well as up.

For Standard Life Equity Income Trust PLC

Aberdeen Asset Management PLC, Secretaries

12 August 2008

 

END

 

 

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