Factsheet: Shires Income Ord

Mixed Asset 61-100% Equity

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.

Narrative and ratings content all as of 01 January 2018.

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Name
Shires Income Ord
Manager
Aberdeen Asset Management (Part of Aberdeen Standard Investments)
Type
Closed Ended Investment Company
ISIN
GB0008052507
Sector
UK Equity Income
Launched
31/03/1929
OCF
1.04 %
Risk Rating
5
3 Year Sharpe
0.75
Yield
4.7 %
Benchmark
FTSE AllSh TR GBP
Fund Size
£ 81.57 million
NAV
284
Gearing
123
Discount Premium
-4
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,
Holding %
Aberdeen Smaller Companies Inc Ord 9.19 %
Ecclesiastical Insurance Office PLC 8.625 % Non-Cum.Irred.Pref.Shs 6.58 %
RSA Insurance Group PLC 7.375% Cum.Irred.Pref Shs 5.53 %
General Accident PLC 7 7/8 % Cum.Irred.Pref.Shs 4.83 %
Santander UK PLC 10 3/8 % Non-Cum Sterling Pref.Shs 4.73 %
Standard Chartered PLC 8-1/4% Non-Cum.Irred.Pref Shs 3.72 %
Royal Dutch Shell PLC B 3.47 %
Chesnara PLC 3.13 %
Unilever PLC 2.90 %
British American Tobacco PLC 2.86 %
Region %
United Kingdom 90.18 %
Eurozone 5.07 %
Sector %
Financial Services 20.91 %
Consumer Defensive 14.92 %
Industrials 12.58 %
Healthcare 9.57 %
Real Estate 8.09 %
Energy 8.06 %
Basic materials 7.31 %
Communication Services 6.28 %
Consumer Cyclical 5.48 %
Technology 5.18 %
Name
Aberdeen Asset Management (Part of 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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