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Shires Investment Trust (SHRS)?

Closed-end funds and OEICs
richfool
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Re: Shires Investment Trust (SHRS)?

#321968

Postby richfool » June 27th, 2020, 8:58 am

ReallyVeryFoolish wrote:Very little I can find that's ever been said here at TLF about Shires IT. Trying to help an elderly relative looking to generate a little more income within a pretty modest ISA portfolio. Looking at perhaps combining CITY and SHRS as a complementary pair of holdings. Both fish in the same pond to some extent except as well as 31% in usual suspect equities, SHRS has about 26% in fixed interest holdings. It's a really hard time to look for yield at a fair risk. I'm open to shared experience of such a combination for an elderly relative. Capital growth in this case is not important, recognising that capital is certainly at risk here. But looking to hopefully preserve value on maybe a 7 to 10 year time frame. Fingers crossed. Thanks for the feedback.

RVF

Shires has featured on LF a few times a couple of years back. I remember discussing it, as I held it.

It pays a slightly higher dividend yield, than those in the UK growth & income sector, presumably because of its fixed interest holdings. I recollect it also holds some ASCI (Aberdeen Standard Smaller Coys trust). I found that it was rather susceptible to market falls, - it suffered more than my other holdings and those in the UK Growth & Income sector in the falls of, was it Dec 2018. So, for those reasons and as part of a plan to reduce my UK IT holdings, I later disposed of my holding.

Shires makes an appearance in these threads:

viewtopic.php?f=54&t=19695&p=256036&hilit=shires#p256036

viewtopic.php?f=54&t=2749&p=25712&hilit=shires#p25712

viewtopic.php?f=54&t=20206&p=261696&hilit=shires#p261696

Citywire performance tables:
https://citywire.co.uk/wealth_manager/i ... ePeriod=12

jackdaww
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Re: Shires Investment Trust (SHRS)?

#321971

Postby jackdaww » June 27th, 2020, 9:32 am

this trust is quite small at around 100m.

charges are quite high at 139.

there must be better options than this surely ?

:)

everhopeful
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Re: Shires Investment Trust (SHRS)?

#321995

Postby everhopeful » June 27th, 2020, 10:34 am

I like Shires. It is an interesting mix of fixed interest (mainly prefs), small companies and large cap. It trades at a slight discount and the charges are in fact 0.97pa. It might be interesting to look at the performance of Shires with for example Merchants.
10 Years Shires 137% Merchants 104%
5 Years Shires 25% Merchants 7.5%
3 Years Shires 8.6% Merchants -4.3
1 Year Shires -9.8 Merchants -14.6
I hold Shires.

monabri
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Re: Shires Investment Trust (SHRS)?

#322027

Postby monabri » June 27th, 2020, 12:28 pm

https://citywire.co.uk/investment-trust ... s/a1364703

Some snippets from the report. ( 5th June 2020)

"Shires Income (SHRS) has held its dividend for the year, though the board of the £74m investment trust was equivocal about the future of its payout, given a shortage of revenue during the coronavirus crisis had already started to bite. "

"However, chairman Robert Talbut said the board would ‘decide on next year’s final dividend having reviewed the full-year results and taking into account the general outlook for the portfolio’s investment income at that time’.

"Talbut, former chief investment officer of Royal London Asset Management, noted the ‘healthy’ level of these reserves, which after the payment of the final dividend will stand at 1.1 times the annual dividend, an above average level for the sector."
This year’s dividend was not fully covered by revenue from underlying investments, which totalled 12.98p per share, down from 13.06p."

monabri
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Re: Shires Investment Trust (SHRS)?

#322029

Postby monabri » June 27th, 2020, 12:35 pm

From the Investors Chronicle

https://markets.investorschronicle.co.u ... s=SHRS:LSE

The cutters from within the top ~50% are RDSB. One the face of it, one would think that SHRS can live with this damage to income using reserves...but one would need to check the other 50% to make sure that there aren't all cutters!

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monabri
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Re: Shires Investment Trust (SHRS)?

#322032

Postby monabri » June 27th, 2020, 12:41 pm

https://quoteddata.com/2020/06/shires-f ... -reserves/

"The board is also planning to ask shareholders for permission to distribute capital profits as dividends, in line with many other investment trusts."

The managers statement is useful and the authors comment at the end ( red text) indicates the Covid effect .

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Re: Shires Investment Trust (SHRS)?

#322054

Postby monabri » June 27th, 2020, 1:53 pm

A quick shufty at the 75% of equities..

There's a few cutters in there and BP is expected to be a potential cutter. Conversely, there are companies that have held the divi.

Perhaps one should go through the holdings on a line by line basis to see how much of the portfolio is likely to be affected.

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CryptoPlankton
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Re: Shires Investment Trust (SHRS)?

#322080

Postby CryptoPlankton » June 27th, 2020, 3:18 pm

Here's an update by the investment manager from 8th June, which seems very positive:

https://www.shiresincome.co.uk/

"The preference shares continue to offer a stable source of income and we have a healthy revenue reserve equivalent to almost one year's dividend. The current market also offers opportunities for capital gains, with many high quality companies at historically low valuations."

I have held these for years and, while they haven't set the world alight (5 year dividend growth rate slightly lagging inflation), they've reliably done what it says on the tin - which is all I've needed from them.

richfool
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Re: Shires Investment Trust (SHRS)?

#637606

Postby richfool » January 2nd, 2024, 10:16 am

richfool wrote:
88V8 wrote: ...a rump of SHRS which I will be selling.



88V8, may I ask why and when you plan to sell SHRS?


I already sold most and expect to sell the rest - in OH's account - this week.
Reason... the merger with the mediocre ASCI Aberdeen Smaller Cos, which I consider of no value whatsoever to Shires holders.

Haven't decided yet where to reinvest the proceeds given that all the FI ITs and Prefs that have been such an obvious target in recent months have now moved up. Still investible, just not such a slamdunk.
V8

V8, Re your above reply to my question on the Bonds Basic Advice thread, I'm posting a reply here on a Shires IT thread, so as not to draw the bonds thread off-topic.

It's interesting that you are selling Shires, as I have recently (November) added Shires to my PF. I did so because I felt it would give me (further) exposure to fixed interest/bond holdings, some preference shares, and some smaller companies (I have little or no exposure to the latter), plus a dividend yield of 6%+. (I also had the thought that smaller companies having been in the doldrums for quite some time, may hopefully be due some uplift).

I was also hoping to take advantage of any enhanced/final dividends paid to Shires by its holding of Abrdn smaller coys, and benefit from any rationalisation of holdings, cost efficiencies and reduced OCR's arising from the takeover.

So overall, I'm hoping there will be some upside in Shires SP for at least a few months yet.

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Re: Shires Investment Trust (SHRS)?

#637634

Postby everhopeful » January 2nd, 2024, 11:44 am

I agree with all you say richfool.
I have a largish holding of this IT as I like its mixture of Fixed Interest and equity. There isn't really anything else like it.
The capital performance has been negatively impacted by the discount to NAV which has fallen to minus 10% whereas it has traded at or around par in the past. A buying opportunity?


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