Premier Energy and Water – ‘Significant latent value’
Helped by its significant zero dividend preference share borrowings, sterling depreciation and some notable successes within its portfolio, Premier Energy and Water Trust (PEW’s) NAV and share price have beaten the MSCI Utilities Index over the 12 months to the end of June 2017. The portfolio has a high allocation to higher growth, emerging markets (45.9% as at 30 June), attracted by the discount at which emerging market utilities trade relative to wider market averages (see page 3). The managers believe there are a number of holdings, particularly in China and India, which are markedly undervalued and that there is significant latent value within the portfolio. PEW also offers a strong 6.1% yield.
Geared global utilities exposure
PEW invests in equity and equity-related securities of companies operating in the utilities and infrastructure sectors, with the twin objectives of achieving high income and long-term capital growth from its portfolio. Since the change of management and stock selection in June 2012, the portfolio has greater emphasis on emerging markets; smaller companies; and special situations; and lower weightings to traditional, developed market, utility companies.
You can access information about the trust at the investment manager’s website. Click here.
Click here to visit QuotedData to see a comparison of Premier Energy and Water’s split cap peers.
Premier Energy and Water – ‘Significant latent value’ : PEW, PEZ