SL Equity Income Trust buoyed by mining exposure

15/11/2007

Exposure to oil, mining and utilities has bolstered Standard Life Equity Income Trust's performance in the past year.

The £131m trust increased its Nav per share by 7.3% in the year to 30 September. The trust also increased dividends by 10%.

Manager Karen Robertson attributes the returns to holdings in oil, mining and utilities.

"An overweight holding in Tullow Oil boosted returns on the back of increases in the oil price and large oil discoveries," she said.

Several mining companies contributed to returns on the back of high commodities prices.

"Within the utilities sector, our overweight positions in International Power, Northumbrian Water and Severn Trent also performed well," Roberston added.

Robertson warned that stockpicking will be essential in the coming months.

"In the short term, financial markets could come under further pressure and in this environment a careful and disciplined approach to stock selection will become even more crucial," she said.