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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 investment products 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 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 06-Mar-2014Ord
|Net Dividend Yield||4.80%|
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.
Markets had a weak start to the year. The FTSE All-Share Index recorded a decline of 3.1% resulting in the worst January for three years. Macroeconomic data was broadly positive, indeed the recovery in the US continued to strengthen resulting in the Federal Reserve announcing a further $10bn reduction to its monthly asset purchases. Companies with significant emerging market exposure discovered that investors no longer regarded this as an attractive feature. Businesses like British American Tobacco suffered as investors worried about currency weakness in emerging markets and the impact that would have on demand for their products.
In the portfolio we retained our long term focus and attempted to capitalise on some of the weakness in share prices. We topped up Standard Chartered and also sold some puts. Puts were also sold over Cobham, HSBC, Experian and Unilever. Conversely we sold calls over Land Securities and Vodafone both of which had performed well. GKN, Provident Financial and Associated British Foods had all done well and we top-sliced each of them. We topped up our holdings in Tesco and Centrica both of which had been weak.
Investors have become increasingly concerned about the impact of tapering in the US and the knock on effect this is likely to have on some emerging markets. There is a widely held belief that this is causing currency weakness that will necessitate increases in interest rates which will serve to further dampen demand. Our view is that whilst there may be disruption over the short term, many emerging markets have positive long term prospects. We believe that our investments have strong long term fundamentals. Importantly they typically have balance sheets that will allow them to weather difficulties and to capitalise on the opportunities that may arise.
However, we do note that in many instances valuations have moved ahead more strongly than earnings resulting in a general expansion of valuation multiples. This makes it more difficult for share prices to absorb disappointing news flow. We therefore believe that it will be as important as ever to be invested in good quality companies that have business models that can deliver growth over the long term. Without such growth we believe that valuations will eventually prove an impediment to further market progression.