Shires Income Share Discussion Threads

[essentialinvestor] 15/9/2023 11:23

The discount has widened as I mentioned would likely happen.

Now on a 13% plus NAV discount and XD for 3.2 pence a share early October
so have bought a small amount.

[citytilidie] 12/9/2023 09:40

I didn’t expect the discount to widen again, but it is now almost 15% which is worse than the discount at the peak of the pandemic. Surely, no institutions in their right mind holding Shires will vote in favor of the forthcoming merger with ASCI. At the current discount, another firm will hopefully try and merge with Shires with the even better result that Shires leave Aberdeen fund managers.

[citytilidie] 05/9/2023 07:59

As Essential Investor said, we have now moved from an average discount of 2-3% to a discount of roughly 10% and have remained there since Aberdeen decided it was in “our” best interests to merge with ASCI. The Aberdeen board in my view have got a lot to answer for as they have increased the risk level and at the same time reduced the liquidity of the fund, without any approval from existing Shire Shareholders.
I think it is really disgraceful, and can’t see how it was allowed solely to benefit the underperformance of another one of their own mismanaged shares.

[stansmith1] 29/8/2023 10:10

bizarrely (or perhaps not), I got some for 214 just last week...

[davebowler] 29/8/2023 09:16

24/8 NAV Shires Income Trust PLC with Debt at Fair Value Including Income 244.36p

[davebowler] 11/8/2023 14:51

Source: Numis Securities 10/8/23

Shires back in the ‘cheap’ seats
There are few changes in the Numis ‘cheap’ list from last week, but 6%-yielding Shires Income (SHRS) is back in the table on a 9% discount and -2.8 Z-score, with the share price of the £79m UK equity income fund weakening ahead of the absorption of £62m stable mate Abrdn Smaller Companies Income (ASCI), announced last month.

In the trust’s June fact sheet, fund managers Iain Pyle and Charles Luke said the trust’s 14% stake in ASCI and its 20% holdings in high-yielding preference shares were weighing on performance. These interest rate-sensitive positions fall when the yields on government bonds, or gilts, rise, as they have done in recent months on the expectation that the Bank of England will have to hold interest rates higher for longer. Falls in the prefs knocked 0.65% off Shires’s net asset value in June, they said.

It looks like this could be another investment trust to benefit from more certainty over where inflation and interest rates are headed.

[mozy123] 09/8/2023 14:10

It is a cost saving exercise as ACSI is a very small trust for sure.

Shires is also small.

As an ACSI holder I don't want to be merged into Shires so will be electing the cash option.

If ASCI was trading at NAV I would just sell in the market.

A great shame what ever happens.

Both trusts would be better at a smaller boutique fund manager who could focus growing the asset base, but guess aberdeen want to retain the AUM. If its voted against maybe the boards will seek alternative managers?

[citytilidie] 09/8/2023 13:58

After seeing Aberdeen fund managers results yesterday, you see exactly why they are attempting to merge ACSI with Shires. Their results were appalling and confirms the attempted merger was nothing more than a sham solely to save money, and nothing else.

[citytilidie] 31/7/2023 13:26

The options to ASCI holders I believe are to either accept cash, or accept the offer to convert their holdings into Shires. If the most of them accept the offer of cash which I think they will, I just hope they sell the vast majority of the assets in ASCI to cover the cash acceptances, rather than selling the better , larger cap shares of Shires which are easier and more liquid to sell than the holdings in ASCI. I also hope that Shire shareholders vote against the merger as I can’t see one single benefit. To me, the board of Shires need to do something, even it’s the offer of a large special dividend to Shire holders before the merger potentially goes through.Every benefit as far as I can see has gone to ASCI holders.

[sorleighmcleod] 31/7/2023 09:55

Merging two too small trusts makes sense Shires becomes a bigger trust and in theory lowers it’s rather high charges. Obvious benefits to Shires shareholders not exactly clear the board needs to control discount to NAV with a buy back scheme.

[essentialinvestor] 30/7/2023 10:52

Well it clearly does mean significantly more than 10%, at least initially
and that may result in SHRS moving to a larger NAV discount

[ocean wharf] 29/7/2023 19:37

Exactly! I didn't buy SHRS to invest in 'smaller companies', I was okay with up to 10% for some diversification towards more growth component; but if this means significantly more than 10% then it's not what I signed up for :(

[citytilidie] 28/7/2023 16:42

Yes, The 15% rise of ASCI increased Shires NAV by a fraction over 1p.The sole reason of the merger was to cut jobs and allow the holders of ASCI to get out of the stock at NAV rather than at a 17% discount. Great news for holders of ASCI but gives no benefit to holders of Shire. Shires now trades at a 10% discount which normally shortens within days. I hope this merger doesn’t stop that happening for several months as Shire holders don’t deserve that.

[mozy123] 27/7/2023 09:37

You realise shires already holds asci?

[citytilidie] 26/7/2023 18:18

Shocking decision of the Aberdeen board to merge Shires with Aberdeen smaller companies. The quality and size of companies Smaller companies invest in does not suit in any way the large cap and high yielding companies that Shire invest in. To me, it is a poor and lame excuse for a merger, solely to cut costs of Aberdeen fund managers as a whole and does nothing to enhance or benefit Shires.

[bluemango] 31/7/2022 16:34

Thanks, assume you're not with HL? Will see if it appears Monday.

EDIT: It's there now

[ditchsid] 31/7/2022 16:00

Received mine on time.

[bluemango] 31/7/2022 15:40

Anyone had their Q4 dividend? Not received mine, should have been paid on 29th.

[panshanger1] 04/1/2022 09:28

Put this on the watch list and this is what happens !!

[davebowler] 02/11/2021 13:44

Please join Iain Pyle for lunch as he discusses the short, medium and long term outlook for the UK. Iain will focus on the changes he has made to Shires Income investment trust to benefit from the changing UK market landscape.

Spaces are limited, please ensure to register via the link below to reserve your place.

12.30pm on 18th November 2021 at Kimpton Charlotte Square, 38 Charlotte Square, Edinburgh, EH2 4HQ

To register for Shires Income update lunch ›



Email
Luke Mason
Head of Business Development
[e-mail]
[phone]

[bluemango] 14/9/2021 10:40

Nice 4.5% increase in annual dividend as quarterly rate goes up to 0.032p. More if they also increase the final (Q4) dividend.

[rogerrail] 04/8/2021 12:49

Started investing here with my monthly employers sipp contributions, and coincidentally the share price has recently tended to spike at the start of each month when the contribution is paid in!

[bluemango] 08/6/2021 11:11

Nice little director buy, a NED buying £6,000 worth.

Price approaching the level reached in early 2020, which was the highest in a decade.

[8w] 02/6/2021 19:17

Revenue reserves holding up well