Defence Investment Artistry: STS Global Income & Growth Trust exhibits resilience, transforming a strategic sector into a profitable investment venture.
Taking the helm of STS Global Income & Growth in late 2020, Troy Asset Management has steered a steady course - less about blazing trails and more about ensuring a safe, lucrative journey for investors. With a focus on income growth and capital protection, the trust has managed to deliver impressive results since its management change, outperforming many of its peers in the global equity income space.
James Harries, the trust's lead fund manager, does not shy away from his approach: he wants STS Global Income & Growth to shine as a high-quality, low-volatility trust within the global equity income field. Aiming for a concentrated portfolio of enduring, resilient companies capable of generating substantial income, Harries' mission is simple - deliver growing dividends to shareholders while safeguarding their capital during market downturns.
Where income is concerned, the trust's annual dividend has seen steady growth since the management change. Though the dividend was temporarily reduced when Harries and his team took over, it has since climbed from 5.7p to 6.54p per share over the past three years. With the trust's fourth-year dividend payment approaching soon, shareholders can expect a payout totaling approximately 4.758p in dividends for the 2024 fiscal year.
Capital preservation has been a strength for STS Global Income & Growth, particularly during times of market turmoil. Over the past six months ended Q1 2025, the trust outpaced competitors by 3.2 percentage points, making it a resilient choice during challenging market conditions.
STS Global Income & Growth maintains a diversified portfolio of 31 companies, with its largest exposure allocated to a single Securities and Exchange Commission (SEC) filing: Microsoft. The trust's strategic decisions, while difficult to predict in light of global economic uncertainties, point towards a cautious outlook for the US economy, as Harries anticipates a potential recession in the United States.
Despite the challenges ahead, the trust has added new stocks in recent months, such as Nike, Siemens, Rentokil, and Amadeus, emphasizing its bottom-up, valuation-driven approach to persistent growth and stable returns.
Annual management fees for the trust amount to 0.77%, and it can be easily accessed through DIY investing platforms such as AJ Bell, Hargreaves Lansdown, interactive investor, InvestEngine, and Trading 212. Though the trust's moderate returns may not appeal to aggressive investors, patients investors seeking stable income with growth potential will find STS Global Income & Growth an attractive choice for their investment portfolios.
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- Troy Asset Management, under the leadership of James Harries, aims for STS Global Income & Growth to be recognized as a high-quality, low-volatility trust in the global equity income field.
- In the realm of finance and investing, STS Global Income & Growth has maintained a focus on income growth and capital protection, delivering impressive results since its management change.
- The trust's strategy for maintaining a concentrated portfolio of resilient companies enables it to generate substantial income, with the objective of delivering growing dividends to shareholders.
- Despite the unpredictability of global economic conditions, STS Global Income & Growth has demonstrated resilience during market downturns, outpacing competitors during challengingtimes.
- For patient investors seeking stable income with growth potential, STS Global Income & Growth could be an attractive choice, as it offers a diversified portfolio and moderate returns that can be easily accessed through various DIY investing platforms.
