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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 30-Sep-2014Ord
|Net Dividend Yield||4.96%|
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 largest investments and an outlook for the Trust.
Equities had a better August with the FTSE All-Share Index registering a total return of 2.2%. The economic themes that have been present throughout 2014 were still in evidence. The recoveries in the UK and US were continuing whilst Europe remained disappointingly weak, with Germany posting a decline in GDP and France showing zero growth. This prompted Mario Draghi to focus on the threat of deflation and to indicate that the ECB was prepared to take further action to stimulate the faltering recovery. Bond yields responded by falling further, indeed in the case of the German 10 year bund the yield declined to below 1% for the first time ever. In the UK it appeared as though we were getting closer to the first step up in interest rates as two members of the MPC voted for a rate increase. However the August Inflation Report indicated that the committee now regarded the equilibrium level of unemployment to be 5.5% which would seem to make a rate increase a more distant prospect.
During what was a quiet month in terms of portfolio activity we sold some calls over Astra Zeneca, Tesco and National Grid. We also sold puts over Croda as we seek to build this new holding.
The most recent news flow from the ECB has seen interest rates decline to a new record low and further stimulus provided in the form of asset purchases. Investors have focused more on the benefits of such stimulus than on the environment that has made such stimulus necessary.
Geopolitical tensions are still present in both the Ukraine and Iraq. But for the time being investors seem willing to largely ignore them.
The decline in bond yields has served to strengthen the relative valuation argument in favour of equities. Although management teams are generally cautious there broadly seems to be an expectation that companies will in aggregate hit profit expectations for the year, albeit these expectations have been downgraded as we have progressed through 2014. The annualisation of the initial strengthening of sterling will also ease transactional and translational pressure on businesses with significant overseas earnings streams. Investors are now looking at expectations for 2015 which indicate more palatable valuation multiples though as ever that depends on companies’ ability to achieve their earnings forecasts.