| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 323.28 | 2 |
| Intrinsic value (DCF) | 109.18 | -66 |
| Graham-Dodd Method | 1.58 | -100 |
| Graham Formula | 341.45 | 7 |
Shires Income PLC (LSE: SHRS.L) is a UK-based closed-ended equity mutual fund managed by Aberdeen Fund Managers Limited, focusing on income generation through investments in UK public equities. Established in 1929, the fund targets diversified sectors, investing in ordinary, convertible, and preference shares using a bottom-up stock-picking approach. Key selection criteria include management quality, financial health, corporate governance, and growth prospects. The fund benchmarks its performance against the FTSE All-Share Index (Total Return), appealing to income-seeking investors. With a market cap of approximately £105.4 million, Shires Income PLC operates in the competitive asset management sector, emphasizing stable returns and dividend payouts. Its long-standing presence and Aberdeen’s stewardship position it as a reliable option for UK equity income exposure.
Shires Income PLC offers investors exposure to UK equities with a focus on income generation, supported by Aberdeen’s fundamental analysis-driven strategy. However, the fund reported a net loss of £1.47 million in FY 2024, with diluted EPS of -4.28p, raising concerns about short-term performance. Positively, it maintains a dividend yield of 14.4p per share, appealing to income-focused portfolios. The fund’s beta of 1.21 suggests higher volatility than the market, which may deter risk-averse investors. While its £4.2 million operating cash flow indicates liquidity, £18.96 million in total debt warrants caution. Investors should weigh its income stability against sector risks and macroeconomic pressures on UK equities.
Shires Income PLC competes in the UK-focused income fund segment, leveraging Aberdeen’s expertise in fundamental analysis and long-term portfolio management. Its competitive edge lies in its diversified sector approach and rigorous stock selection, targeting resilient dividend payers. However, its small size (£105.4 million market cap) limits economies of scale compared to larger peers. The fund’s performance is closely tied to the UK market, which is currently facing macroeconomic uncertainty, potentially impacting returns. Its high beta (1.21) reflects sensitivity to market swings, a drawback for stability-seeking investors. While the dividend yield is attractive, the recent net loss highlights vulnerability to equity market downturns. Competitors with broader geographic diversification or lower leverage may offer more balanced risk-reward profiles. Shires’ niche appeal rests on its UK-centric strategy, but this also concentrates risk.