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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 26-Feb-2015Ord
|Net Dividend Yield||4.72%|
Source: Morningstar, NAV = Net Asset Value, excluding income.
Holdings are subject to change at any time. Holdings should not be relied upon in making investment decisions and should not be construed as research or investment advice regarding specific securities. By accessing the portfolio holdings, you agree not to reproduce, distribute or disseminate the portfolio holdings, in whole or in part.
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 largest investments and an outlook for the Trust.
Equity markets started the year strongly, with the FTSE All-Share Index posting a gain of 2.6% in total return terms. The recoveries continued in the US and UK. Indeed in the domestic economy we saw falling unemployment combine with rising real wages indicating that the painful squeeze that has been endured by the consumer is now beginning to ease. There were three particularly significant macroeconomic events that occurred during the month. Firstly the ECB announced that a package of Quantitative Easing would commence in March. It will amount to €60bn per month and will run for at least 18 months. The scale and uncapped nature of the commitment boosted markets. The Swiss National Bank removed their Peg with the euro, presumably in anticipation of the ECB’s announcement. The immediate strengthening of the Swiss franc was remarkable in terms of its scale and said much about investors’ desire for a safe haven for their capital.
Meanwhile in Greece the election was won by the anti-austerity party Syriza. Their desire to renegotiate the bail-out programme in an effort to reduce the country’s debt burden, served to re-ignite worries about sovereign indebtedness and the possibility of a Greek exit from the euro.
In the portfolio we have introduced one new holding. Aveva who produce 3 dimensional design software. Their business benefits from a high level of recurring revenues, often with very long-term contracts, high technical barriers to entry, pricing power and a net cash balance sheet. They do however have exposure to the oil and gas end markets and as such their share price has been adversely affected. This has provided us with an opportunity to buy an initial position in a company that we have followed for many years. We also sold puts over holdings that we are trying to build, these included Ultra Electronics, Inchcape and Inmarsat. Calls were sold over businesses whose share prices have performed well, amongst which were Unilever, GKN and Close Brothers.
The oil price has continued to decline as have the prices of many other commodities as Chinese growth has continued to slow. With the eurozone already experiencing deflation there are increasing concerns that the decline in the oil price may not be accompanied by an increase in demand. In such a scenario the benefit of cheaper energy may be outweighed by the impact of deflation. Falling commodity prices and currencies have prompted interest rate cuts in a range of countries from Australia and Canada to Denmark. Expectations for interest rate increases in the UK have been pushed out to 2016 and whilst the US is still likely to increase rates sometime this year it will be difficult for them to do so at a time when most other regions are reducing rates. This points to the second significant risk, namely that the benefits of European QE are diluted as countries around the World seek to counter the threat of deflation by devaluing their currencies.
Unsurprisingly equity markets appear good value when compared to fixed interest.
However, investors should take care to look at individual company valuations rather than relying on aggregate valuations. There is a very broad spread of valuations across different market sectors accompanied by wide ranging variances in expectations for earnings growth, and in some cases contraction. Although we remain positive about the long term prospects for the businesses that we have invested in, we recognise that the valuations of many quality companies are full rather than cheap.