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Focused on Capital Preservation, STS Global Income & Growth Emerges as a Top Equity Fund

Strategic Insights

— 1 min read

STS Global Income & Growth, a stock market-listed investment trust managed by Troy Asset Management, has demonstrated a focus on capital preservation and steady growth. The fund's market value stands at £281 million, with a 13-strong team overseeing £11 billion of assets. Under the management of James Harries and Tomasz Boniek, the fund has achieved a 42% increase in annual income from 5.88p to 8.37p per share over the past four full financial years. The quarterly dividend of 2.1p in the current financial year indicates a continued growth trajectory.

Key Takeaways:

  • STS Global Income & Growth has achieved a 42% increase in annual income from 5.88p to 8.37p per share over the past four full financial years.
  • The fund has grown the dividend payment to shareholders, with the current quarterly dividend of 2.1p.
  • The trust has the equivalent of half a year's dividends in reserve, which can be drawn upon to top up income from equity holdings if necessary.
  • The portfolio consists of 32 stocks, with a third of the assets in consumer staples companies.
  • The fund's consumer-centric and AI-light approach is designed to withstand market corrections and recession.
  • Annual charges total 0.8%, and the shares trade at a small discount to the trust's net asset value.

Statistics:

  • Market value of STS Global Income & Growth: £281 million.
  • Total assets under management by Troy Asset Management: £11 billion.
  • Increase in annual income from 5.88p to 8.37p per share over four full financial years: 42%.
  • Quarterly dividend of 2.1p in the current financial year, compared to 1.586p the previous year: 33.2% increase.
  • Equivalent of half a year's dividends in reserve: £14.4 million (based on £8.37p annual income per share and £281 million market value).
  • Returns over the past one, three, and five years: 7.8%, 20.8%, and 44.6%, respectively.
  • Returns from the average global equity income trust over the same periods: 7.9%, 44.3%, and 66.3%.

Sources:

  • "We should not be too optimistic about the state of our finances" by Jeff Prestridge, Money Mail, 2023

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