Shires Income PLC

Looking for high-quality investments for a high, regular income


Morningstar rating:
4 out of 5

Daily prices as of {{asOfDate}}

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Latest news

An update from our investment manager, Iain Pyle

Calling the direction of the market in the short term is incredibly difficult, as it largely hinges on the unpredictable spread of a novel virus and the success or failure of measures taken to counteract it. What can we say with some confidence? The experiences of China and Korea tell us that it will certainly get worse before it gets better in Western Europe and in the US, where the lack of access to healthcare for millions of residents should be a real concern. Cases will grow significantly and the shut-down of a large number of businesses will need to continue for some time. There is a likelihood that some businesses will be unable to service their fixed costs and will not survive. Others will need capital support leading to shareholder dilution and many will find it necessary to cut their dividend payments.

Why then should we maintain a constructive outlook for equities and remain invested? Firstly, the experience of countries that were first infected shows that just as things get worse, they also get better. New case formation will slow, infected people will recover and cases will reduce. Perhaps optimistically (but with some scientific basis) this will be helped by a seasonal shift in weather and the actions we are all taking today to reduce contact and improve hygiene. Although it will take time for normality to resume, the market is very good at looking through short term problems and valuations can recover quickly. As I write, the FTSE All-Share index is now 31% lower than at the start of the year – it still feels unlikely that in two years' time the earnings or cash generated by companies will be permanently reduced to this extent. Secondly, governments and central banks have already shown a willingness to support companies and to provide stimulus to markets. That should help companies avoid failure due to short term cessation of trading and also accelerate any recovery in economic activity. Some will still need capital from investors, but we should be ready to support good businesses. Distressed rights issues are often a source of very good returns, we just need to make sure we are not bailing out companies with poor business models that would fail in any case.

Finally, while we will see dividends cut, yields are currently very high across the market and may well still look attractive after a cut. The hope is that cuts will be temporary, with prudent companies understandably choosing to retain cash in a time of great uncertainty. In the near term, performance is likely to be volatile. For Shires Income, our main priority remains income generation so we continue to pay particular attention to the ability of our holdings to pay a dividend. It is also worth highlighting in this environment that the revenue reserve (equivalent to around one year's dividend) provides a large amount of protection should we need it.


About us

Hear more from our investment manager Iain Pyle:

 

Key people

Iain Pyle

Iain Pyle

Investment Director

Iain has been an Investment Director in the UK Equities team for Aberdeen Standard Investments since 2015. He is the lead manager of Shires Income plc and is deputy manager for Murray Income Trust and Aberdeen Standard Equity Income Trust plc. Within his role, he manages the UK Equity High Income Fund and the Bothwell UK Equity Income Fund and has sector responsibility for oil & gas and banks.

Iain has been covering analyst for the pharmaceutical and healthcare sectors. He is also a member of the Pan-European fund management team. Prior to joining Standard Life Investments, Iain was a Vice President on the number one ranked European Oil & Gas research team at Sanford Bernstein from 2007. He also worked as a management consultant at PwC. Iain holds an MSc, Masters in Chemical Engineering, ACA, CFA and is a qualified accountant.

Charles-Luke

Charles Luke

Investment Director

Charles Luke is an Investment Director on the UK and European equities team having joined Aberdeen in 2000. Charles started his career at Framlington Investment Management in 1998, covering UK equities.

Charles graduated with a BA in Economics and Japanese Studies from Leeds University and an MSc in Business and Economic History from the London School of Economics.

  • Iain Pyle

    Investment Director

    Iain has been an Investment Director in the UK Equities team for Aberdeen Standard Investments since 2015. He is the lead manager of Shires Income plc and is deputy manager for Murray Income Trust and Aberdeen Standard Equity Income Trust plc. Within his role, he manages the UK Equity High Income Fund and the Bothwell UK Equity Income Fund and has sector responsibility for oil & gas and banks.

    Iain has been covering analyst for the pharmaceutical and healthcare sectors. He is also a member of the Pan-European fund management team. Prior to joining Standard Life Investments, Iain was a Vice President on the number one ranked European Oil & Gas research team at Sanford Bernstein from 2007. He also worked as a management consultant at PwC. Iain holds an MSc, Masters in Chemical Engineering, ACA, CFA and is a qualified accountant.

  • Charles Luke

    Investment Director

    Charles Luke is an Investment Director on the UK and European equities team having joined Aberdeen in 2000. Charles started his career at Framlington Investment Management in 1998, covering UK equities.

    Charles graduated with a BA in Economics and Japanese Studies from Leeds University and an MSc in Business and Economic History from the London School of Economics.

Robert Talbut

Robert Talbut

Chairman

Robert Talbut was formerly Chief Investment Officer of Royal London Asset Management and has over 30 years of financial services experience. He has represented the asset management industry through the chairmanship of both the ABI Investment Committee and the Asset Management Committee of the Investment Association. He has also been a member of the Audit & Assurance Council of the FRC and the FCAs Listing Authority Advisory Panel. He is Chairman of EFG Asset Management (UK) Limited and a non-executive director of Pacific Assets Trust plc, JPMorgan American Investment Trust PLC and Schroder UK Mid Cap Fund plc.

Robin Archibald

Robin Archibald

Non-Executive Director

Robin Archibald has a wide range of experience in advising and managing transactions in the UK closed-ended funds sector over his thirty five year career as a corporate financier including with Samuel Montagu, S G Warburg and Natwest Markets. He retired from Winterflood Investment Trusts in May 2014, where he was formerly Head of Corporate Finance and Broking. He is currently a non-executive director of Albion Technology & General VCT PLC, Ediston Property Investment Company PLC, Capital Gearing Trust PLC and Henderson European Focus Trust plc. He is Chairman of the Audit Committee.

Marian Glen

Marian Glen

Non-Executive Director

Marian Glen is a non-executive director of Martin Currie Global Portfolio Trust Plc and Financial Services Compensation Scheme Limited. She is also a non-executive director of The Medical and Dental Defence Union of Scotland. She was a non-executive director of Murray Income Trust Plc, Friends Life Group Limited and other companies in the Friends Life group of companies. She was formerly the General Counsel of AEGON UK and prior to that was a corporate partner and head of funds and financial services at Shepherd and Wedderburn.

Jane Pearce

Jane Pearce

Non-Executive Director

Jane Pearce is a Co-opted External Member of the Audit and Risk Committee of the University of St Andrews. She had an executive career as an Equity Analyst at leading investment banks and latterly was an Equity Strategist at Lehman Brothers and Nomura International. She is a Chartered Accountant and was a Member of the Governing Council of the Institute of Chartered Accountants of Scotland from 1999-2000.
Andrew Robson

Andrew Robson

Non-Executive Director

Andrew Robson is a Chartered Accountant, with many years of experience in investment banking and as a finance director. He was a director of Robert Fleming & Co Limited and SG Hambros. He was also Finance Director of eFinancialGroup Limited and the National Gallery. He has over 15 years of experience as a director of a number of quoted investment trusts and is currently a business adviser, working with smaller UK companies. He is a non-executive director of JP Morgan Smaller Companies Investment Trust plc and Witan Pacific Investment Trust PLC. He is the Senior Independent Director.

  • Robert Talbut

    Chairman

    Robert Talbut was formerly Chief Investment Officer of Royal London Asset Management and has over 30 years of financial services experience. He has represented the asset management industry through the chairmanship of both the ABI Investment Committee and the Asset Management Committee of the Investment Association. He has also been a member of the Audit & Assurance Council of the FRC and the FCAs Listing Authority Advisory Panel. He is Chairman of EFG Asset Management (UK) Limited and a non-executive director of Pacific Assets Trust plc, JPMorgan American Investment Trust PLC and Schroder UK Mid Cap Fund plc.

  • Robin Archibald

    Non-Executive Director

    Robin Archibald has a wide range of experience in advising and managing transactions in the UK closed-ended funds sector over his thirty five year career as a corporate financier including with Samuel Montagu, S G Warburg and Natwest Markets. He retired from Winterflood Investment Trusts in May 2014, where he was formerly Head of Corporate Finance and Broking. He is currently a non-executive director of Albion Technology & General VCT PLC, Ediston Property Investment Company PLC, Capital Gearing Trust PLC and Henderson European Focus Trust plc. He is Chairman of the Audit Committee.

  • Marian Glen

    Non-Executive Director

    Marian Glen is a non-executive director of Martin Currie Global Portfolio Trust Plc and Financial Services Compensation Scheme Limited. She is also a non-executive director of The Medical and Dental Defence Union of Scotland. She was a non-executive director of Murray Income Trust Plc, Friends Life Group Limited and other companies in the Friends Life group of companies. She was formerly the General Counsel of AEGON UK and prior to that was a corporate partner and head of funds and financial services at Shepherd and Wedderburn.

  • Jane Pearce

    Non-Executive Director

    Jane Pearce is a Co-opted External Member of the Audit and Risk Committee of the University of St Andrews. She had an executive career as an Equity Analyst at leading investment banks and latterly was an Equity Strategist at Lehman Brothers and Nomura International. She is a Chartered Accountant and was a Member of the Governing Council of the Institute of Chartered Accountants of Scotland from 1999-2000.
  • Andrew Robson

    Non-Executive Director

    Andrew Robson is a Chartered Accountant, with many years of experience in investment banking and as a finance director. He was a director of Robert Fleming & Co Limited and SG Hambros. He was also Finance Director of eFinancialGroup Limited and the National Gallery. He has over 15 years of experience as a director of a number of quoted investment trusts and is currently a business adviser, working with smaller UK companies. He is a non-executive director of JP Morgan Smaller Companies Investment Trust plc and Witan Pacific Investment Trust PLC. He is the Senior Independent Director.

 

Financial calendar

Year End 31 March
Accounts published June
Annual General Meeting July
Dividend Paid January, April, July, October

Trust details

Shires Income PLC

Registered Office:
Bow Bells House,
One Bread Street,
London
EC4M 9HH

Registered in England as an Investment Company Number 386561

Launch Date: March 1929

Risk Warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Investors should review the relevant Key Information Document (KID) brochure prior to making an investment decision.
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