Shires Income – Growing again

In recent months, Shires Income Trust (SHRS) has been expanding for the first time since 2012. SHRS can boast both an attractive yield and outperformance of both its benchmark and the average of competing listedUK equity income funds (see Figure 15 on page 7, which shows SHRS outperforming over every time period). This appears to be winning new fans for the company. The expansion could help improve liquidity in the shares and lower the trust’s ongoing charges ratio (as fixed costs are spread over a wider base). Shares are being issued at a premium to NAV, ensuring that existing shareholders are not diluted… Read more

SHRS’s manager, Iain Pyle, has been trimming positions in stocks that have done well and has added a number of new positions in stocks that he feels have the potential to drive SHRS’s NAV higher over the coming years as well as contribute to revenue generation. The market has long been favouring growth stories over value stocks; sentiment is against the UK, and the market yield is at decade highs. Now may be a good time to be adding exposure to this area.

High level of income with potential for growth

SHRS aims to provide its 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 other fixed income securities.

NB: Marten & Co was paid to produce this note on Shires Income Plc and it is for information purposes only. It is not intended to encourage the reader to deal in the security or securities mentioned in this report. Please read the important information at the back of this note. QuotedData is a trading name of Marten & Co Limited which is authorised and regulated by the FCA. Marten & Co is not permitted to provide investment advice to individual investors categorised as Retail Clients under the rules of the Financial Conduct Authority.

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