Princess Private Equity Holding - Withstanding the broader market turmoil so far

Princess Private Equity Holding (PEY) posted only a slight decline in NAV in total return (TR) terms so far this year, which may be an indication of its portfolio’s resiliency. This allowed PEY to outperform public markets over the medium term with a NAV TR of 73.2% over the past five years versus the MSCI World TR at 66.9% (although PEY’s returns were behind private equity, PE, peers). Still, its shares experienced a stronger de-rating, leading to PEY’s discount to NAV widening to 17% from c 5% at end-2021 and translating into an attractive annualised dividend yield of 6.3% (based on the last interim payment).