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.See all Money Observer rated funds
|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 %|
|United Kingdom||88.11 %|
|Financial Services||17.22 %|
|Consumer Defensive||13.05 %|
|Consumer Cyclical||9.05 %|
|Basic materials||7.10 %|
|Real Estate||5.42 %|
Data provided by Morningstar.
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