Preference shares and UK small caps with Shires Income's Iain Pyle

In this episode of Trust Issues we speak to Iain Pyle, Manager of Shires Income (SHRS). We talk about the recent merger with Abrdn Smaller companies Income, the opportunity in UK small caps, and whether the base case market outlook of a soft landing is realistic. You can skip to individual answers via the buttons below.

00:00 – Intro and risk warning
00:50 – What is Shires Income?
02:59 – What benefits will the merger with Abrdn Smaller Companies Income bring?
05:08 – What do preference shares bring to the SHRS portfolio?
07:12 – How has your small cap exposure changed post-merger?
10:22 – Are low small cap valuations justified? Do you see any opportunities here?
14:29 – What is the thinking behind the financials exposure?
17:17 – Some dividend stock valuations are priced at levels that implies the market believes the yields on offer are not sustainable long-term, is that correct?
20:10 – It’s almost as though the least optimistic scenario is the most optimistic – a soft landing, no meaningful recession and so on. What do you make of that?

Our latest note on SHRS - http://tinyurl.com/2jd7f39t
SHRS website - http://tinyurl.com/5f38nh4h

Intro music by State Azure, used with permission