Fact sheet: Shires Income IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
MIXED ASSET 61-100% EQUITY
Sector
IT UK Equity Income
Fund type
Investment Trust
Primary aim
No data available.
Why Money Observer Rates Shires Income IT

Rated Fund 2017-2018. Seeks sustainable dividends from the best companies

At the end of 2017, Shires was offering income investors an attractive yield of 4.4 per cent with quarterly dividend payments. The portfolio is substantially invested in UK equities, with around a quarter invested in higher-yielding preference shares. It also generates extra income by a small option-writing programme.It is managed by Ed Beal at Aberdeen Standard Investments. He says that by using preference shares and options to support the yield, he can hold a more diverse equity portfolio than if he relied on higher-yielding UK companies.Beal takes a long-term, fundamental, bottom-up approach. He seeks to identify 40 or 50 high quality businesses with good balance sheets and experienced management teams. He believes that paying dividends is a good discipline for company managements and argues that well-managed companies with sustainable business models should, almost by definition, be able to pay dividends. He also believes a management's attitude to its dividends is a good indicator of its general attitude to its shareholders.Beal argues that a long-term approach to investing, trying to behave like owners, attending and voting at all companies AGMs, is what helps to set the trust apart. This conservative, traditional buy-and-hold approach also usually results in low turnover within the portfolio.Shares have traded at a discount to net asset value through the last three years. The widest was 14 per cent in mid 2016, but that had narrowed to just over 3 per cent by the end of 2017. The trust's ongoing charges are 1.04 per cent.<\p>

3 Year Performance
Fund Performance28.1%
Average of Rated Funds Group27.6%
Sector Performance18%
Fund information
Fund name
Shires Income plc Ord 50p
Fund manager company
Aberdeen Fund Managers Ltd
Fund type
Investment Trust
Fund manager
  • Pan European Equity Teamsince 31/03/1929
Accolades
Fund objective
The Company’s investment objective is to provide shareholders with a high level of income, together with the potential for growth of both income and capital from a diversified portfolio substantially invested in UK equities but also in preference shares, convertibles and fixed income securities
Benchmark
  • FTSE All Share
Investment style
None
Investment method
Shares
Quick stats
1 Year return
16%
1 Year rank in sector
1/24
Sector
IT UK Equity Income
Yield
4.7%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
1.04%
Fund size
£81m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
137
Mid price
270
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
266.58
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+1.28
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
120
Top in this sector
Fund name1 Year
Shires Income plc16%
Std Life Eq In Tst13.5%
Merchants Trust PLC12.4%
ChvSmCos DvTstplc11.4%
JPMorganClaverhITplc11.2%
...more in IT UK Equity Income

Performance snapshot

Holdings snapshot

  • UK97.3%
    Money Market2.7%
  • Financials50.3%
    Consumer Goods10.4%
    Industrials9.7%
    Health Care6%
    Oil & Gas5.5%
  • International Equities85.9%
    Global Fixed Interest11.3%
    Money Market2.8%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund3.8%-5%0.7%16%28.1%51.9%
Sector1.2%-2.3%-1%6.2%18%47.9%
Rank within sector4 / 2418 / 246 / 241 / 246 / 2411 / 24
Quartile1st3rd1st1st1st2nd
Calendar performance
 YTD - 20182017201620152014
Fund-2.9%31.7%13.6%-11.3%8.5%
Sector-2.9%14%6.9%3.8%3%
Rank within sector12 / 241 / 243 / 2424 / 246 / 24
Quartile2nd1st1st4th1st
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
1.28
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.06
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.24
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
12.45
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
8.8
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.14
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.49
Price movement
52 week high292.5
52 week low242.25
Current bid price267
Current offer price273
Current mid price270
Region
1UK97.3%
2Money Market2.7%
Industry sector
1Financials50.31%
2Consumer Goods10.41%
3Industrials9.73%
4Health Care6.03%
5Oil & Gas5.45%
6Telecommunications4.18%
7Basic Materials3.79%
8Consumer Services3.5%
9Technology3.02%
Asset type
1International Equities85.9%
2Global Fixed Interest11.3%
3Money Market2.8%
Individual holdings
1SMALLER COMPANIES INCOME TRUST PLC ORD 50P8.7%
2BRITISH AMERICAN TOBACCO PLC3%
3CHESNARA3%
4ROYAL DUTCH SHELL3%
5UNILEVER2.8%
6ASTRAZENECA PLC2.7%
7PRUDENTIAL PLC2.7%
8GLAXOSMITHKLINE PLC2.3%
9BHP BILLITON PLC2.1%
Management
Fund manager group
Aberdeen
Fund manager company
Aberdeen Fund Managers Ltd
Fund type
Investment Trust
Fund objective
The Company’s investment objective is to provide shareholders with a high level of income, together with the potential for growth of both income and capital from a diversified portfolio substantially invested in UK equities but also in preference shares, convertibles and fixed income securities
Benchmark
  • FTSE All Share
Investment style
None
Investment method
Shares
Fund manager
NameSinceBiography
Pan European Equity Team31/03/1929
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
Shires Income plc Ord 50p
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price266.7
CurrencyGBX
Price updated17/04/2018
TypeIncome
Institutional or retail classRetail
Domicile-
Citi codeNJHQ
Shires Income plc Ord 50p NAV
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price261.34
CurrencyGBX
Price updated17/04/2018
Type-
Institutional or retail classRetail
Domicile-
Citi codeA0TH
Data provided by

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