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The Company currently conducts its affairs so that securities issued by Shires Income PLC can be recommended by financial advisers to ordinary retail investors in accordance with the FCA’s rules in relation to non-mainstream pooled investment products (NMPIs) and intends to continue to do so for the foreseeable future.
The Company’s securities are excluded from the FCA’s restrictions which apply to non-mainstream investment products because they are securities in an investment trust.
The Alternative Investment Fund Manager Directive (“AIFMD”) requires Aberdeen Fund Managers Limited, as the alternative investment fund manager of Shires Income PLC, to make available to investors certain information prior to such investors’ investment in the Company.
The AIFMD is intended to offer increased protection to investors in investment products that do not fall under the existing European Union regime for regulation of investment products known as “UCITS”.
The value of investments and the income from them may go down as well as up and investors may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Please refer to the Key Facts documents contained in the ISA/Share Plan Brochure & Application form for general and specific investment risks attaching to the individual trusts.Read the detailed Risk Warning
Past performance is not a guide to future results.
See latest monthly factsheet below for performance history.
At close 01-Sep-2014Ord
|Net Dividend Yield||4.86%|
Source: Morningstar, NAV = Net Asset Value, excluding income.
Bow Bells House
One Bread Street
Registered in England as an Investment Company Number 386561
To provide for shareholders a high level of income, together with growth of both income and capital from a portfolio of investments substantially invested in UK Equities
In this webcast, Ed Beal gives an update on a wide range of subjects including performance, a sector breakdown, the twenty largest investments and an outlook for the Trust.
July was dominated by deteriorating geopolitical news flow. The situation between Ukraine and Russia worsened, Gaza was at war with Israel and ISIS was becoming a growing force in Iraq. Markets largely shrugged off these risks, with the FTSE All-Share index declining by 0.3% on a total return basis. Investors focused instead on the improving economic fundamentals. In the US, the hoped for rebound in Q2 GDP was actually stronger than expected coming in at 4%. The Federal Reserve was more positive in its outlook for the economy, noting the consistent improvement in the labour market and the declining likelihood that inflation would undershoot its target. In the UK the economy regained its previous peak level of output, achieved in Q1 2008. This may have been the slowest recovery for 100 years but it has been a recovery. Domestic unemployment also improved further.
We introduced one new holding to the portfolio. Croda is a speciality chemicals company with niche products that are sold into the consumer, personal and crop care markets. The high value nature of these products allow the company to deliver margins materially ahead of those normally seen in the industry. Some temporary weakness in demand created an opportunity for us to initiate a position. Options were sold across a number of holdings which included puts in Experian where the shares have been weak and Ultra Electronics where we are building a position. Calls were sold over companies that had performed well, amongst which were, Compass, Prudential, Shell and BHP Billiton.
We are well though the first half reporting season now. Whilst there have been some company specific surprises the clearest theme to have emerged has been that the strength of sterling is impacting both the translation of company results and in many cases demand for their products. This is in turn weighing on earnings expectations for the second half of the year. Therefore upgrades have been firmly in the minority. As we have observed previously, further progress in markets is likely to require growth in profitability rather than coming via additional expansion of valuation multiples. Consequently there will be much focus on whether companies do indeed deliver on their full year expectations, which are in many cases already lower than they were at the start of the year.