Shires Income (SHRS)

Shires Income (SHRS) aims to deliver a higher income than the market alongside real long-term growth in both capital and income, via a diversified portfolio of predominantly UK-listed equities. Managed by Iain Pyle since 2018, the trust combines high-conviction stock selection with a distinctive 20% allocation to preference shares. This fixed income sleeve provides a stable, high-yield income stream that complements the equity portfolio and gives the manager greater flexibility to explore less traditional income sources, notably UK small- and mid-cap stocks.

The manager targets high-quality businesses with strong balance sheets, robust cash flows and clear capital discipline that also trade at attractive valuations. Amid recent market volatility, he’s made several Portfolio adjustments on valuation grounds. These include new mid-cap additions like Kier Group and ME Group, selected for their solid cash generation and compelling income characteristics. Whilst mid-cap exposure remains a key feature, selective large-cap changes, including the addition of Reckitt Benckiser have been made, and a reposition of the fixed income sleeve following tender activity in preference shares from RSA and Aviva.

Over the 12 months to 30/06/2025, SHRS delivered a NAV total return of 15.4%, outperforming the FTSE All-Share’s 11.2% return, led by strong stock selection within financials (see Performance). Its share price increased 31.1%, helping narrow the trust’s Discount and to a slight premium of 0.6%, at the time of writing. This compared to its five-year average discount of 5.7% and the sector average of 3.8%. Additionally, the FY 2025 Dividend that rose 2.8%, ahead of inflation, remains fully covered by earnings, and the trust currently yields 5.1%, a premium to both the index and peer group.