Shires Income

Mixed Asset 61-100% Equity

Rated Fund 2017-20. Seeks sustainable dividends from strong companies    

Shires Income sits in the UK equity income sector, but more than a quarter of its assets is in fixed-interest investments, so it finds a place in our Mixed Assets group. It is the top trust in its sector over one and three years. It has an attractive yield of 4.5%, paid quarterly.

The portfolio is substantially invested in UK equities, but has 26% in higher-yielding preference shares and convertible bonds. Convertibles tend to yield more than a company’s shares, but can be converted or exchanged for them at the bondholder’s discretion. Manager Iain Pyle, an investment director in Aberdeen Standard Investments’ UK equities team, can hold a more diverse equity portfolio than would be the case if he had to rely solely on higher-yielding UK firms.

The manager takes a bottom-up approach. He seeks to identify around 50 high-quality businesses with good balance sheets and experienced management. His conservative buy-and-hold approach usually results in low portfolio turnover.

Shares in the trust have gone from a 12% discount to net asset value three years ago to a premium that averaged 1.5% over the past year. The trust has ongoing charges of 0.94%.

Narrative and ratings content all as of 01 January 2020.

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Name
Shires Income
Manager
Aberdeen Standard Investments
Type
Closed Ended Investment Company
ISIN
GB0008052507
Sector
UK Equity Income
Launched
31/03/1929
OCF
1.39 %
Risk Rating
5
3 Year Sharpe
0.16
3 Year Alpha
-0.90
Yield
5.8 %
Benchmark
FTSE AllSh TR GBP
Fund Size
£ 73.39 million
NAV
243
Gearing
119
Discount Premium
-1
The 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
Holding %
Aberdeen Smaller Companies Inc Ord 9.13 %
Ecclesiastical Insurance Office PLC 8.625% PRF PERPETUAL GBP 1 7.06 %
RSA Insurance Group PLC 7.38% PRF PERPETUAL GBP 1 5.95 %
Santander UK PLC 10.38% PRF PERPETUAL GBP 1 - 10.38% 4.86 %
General Accident PLC 7.875% PRF PERPETUAL GBP 1 4.77 %
Standard Chartered PLC 8.25% PRF IRR GBP 1 3.70 %
AstraZeneca PLC 3.34 %
GlaxoSmithKline PLC 3.04 %
Royal Dutch Shell PLC B 2.92 %
British American Tobacco PLC 2.78 %
Region %
United Kingdom 88.11 %
Sector %
Financial Services 17.22 %
Consumer Defensive 13.05 %
Healthcare 11.18 %
Energy 11.02 %
Utilities 9.37 %
Consumer Cyclical 9.05 %
Industrials 8.27 %
Basic materials 7.10 %
Real Estate 5.42 %
Name
Aberdeen Standard Investments
Address
EC4M 9HH, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Iain Pyle
Joined 05/03/2018

Data provided by Morningstar.

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