Transforming Defense into a Lucrative Investment: STS Global Income & Growth Trust Embraces Defense Sector for Resilient Returns
Ready to dive into the world of conservative, income-generating investments? Let's talk about STS Global Income & Growth, a trust that steers a steady course through the stock market's ups and downs.
Since Troy Asset Management took over management in late 2020, this trust has opted for a more defensive approach, focusing on providing shareholders with a decent flow of income while preserving their capital. And it's working - the trust has generated a return of over 35% since November 2020, though this falls slightly below the average return for its global equity income peer group.
But let's not forget the ultimate goal - creating a high-quality, low-volatility trust that offers investors a reliable source of income while protecting their capital. Senior fund managers James Harries and Tomasz Boniek are committed to delivering on this goal by managing a highly concentrated portfolio of robust, income-generating companies.
Speaking of income, the trust's annual dividend payment has been steadily ticking up over the past few years, reaching 6.54p per share as of the latest data. The trust expects to pay out its final quarterly dividend for the financial year ending March 31 in the near future, which will bring the total dividends paid so far this year to 4.758p.
As for protecting investors' capital, the trust has proven resilient during challenging market conditions, outperforming its peers over the past six months and handling downturns like the start of the Ukraine war in 2022 and the sudden rise in interest rates with ease.
The STS Global Income & Growth Trust currently invests in 31 companies, with the majority of its exposure to US stocks limited to Microsoft. Recently, the trust has taken stakes in a number of new stocks, including Spanish IT company Amadeus, UK pest control specialist Rentokil, German tech company Siemens, and US sportswear giant Nike.
Harries is cautiously optimistic about the future, predicting the likelihood of a recession in the United States, but remains confident in the quality of the companies in which the trust invests.
The annual trust charges total 0.77%, with a market ticker of STS and identification code B09G3N2. Interested in investing? Check out AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 as potential DIY investing platforms to help you get started.
Remember, every investment comes with risks, and it's crucial to do thorough research before making any decisions. For help choosing the best investing account or learning more about the world of investments, check out our Investing Made Easy guide.
[1] Financial Times "STS Global Income & Growth share price, company information & market capitalisation" [online resource][2] Morningstar "STS Global Income & Growth" [online resource][3] The Investing Review "STS Global Income & Growth Trust: Investment Strategy" [online resource][4] Trustnet "STS Global Income & Growth" [online resource][5] ShareCafe "STS Global Income & Growth UK Equity Income Trust" [online resource]
- Troy Asset Management's management of STS Global Income & Growth Trust has focused on mortgages and stocks, aiming to provide a steady income while safeguarding the investors' capital.
- The trust's defensive approach, with a high concentration on income-generating companies, has resulted in an annual dividend payment of 6.54p per share, surpassing its previous years' payouts.
- Despite unpredictability in the global economy, such as the start of the Ukraine war in 2022 and sudden rise in interest rates, the STS Global Income & Growth Trust has shown resilience, outperforming its peers during challenging market conditions.
- Senior fund managers James Harries and Tomasz Boniek have highlighted a diverse portfolio, with investments in 31 companies worldwide, including Spanish IT company Amadeus, UK pest control specialist Rentokil, German tech company Siemens, and US sportswear giant Nike.
- investors looking to venture into conservative, income-generating business can consider platforms like AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212 to invest in the STS Global Income & Growth Trust, but are reminded to exercise thorough research to mitigate finance-related risks.
