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.
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