Overview
Focusing on quality companies in an uncertain world
What does the Trust do?
STS Global Income & Growth Trust aims to be the high quality, low volatility global income and growth investment trust.
Why this Trust?
The Trust aims to meet the needs of investors looking for a growing level of income and steady capital growth over the long term, whilst also wanting to preserve the value of their money.
Trust Ratings
© 2024 Morningstar, Inc. All Rights Reserved.
Investment Managers
More than 20 years experience of managing global equity income strategies
James is the Senior Fund Manager responsible for the Trojan Global Income Strategy. He has over 20 years’ investment experience, and has managed global equity portfolios since 2002. James is manager of the Trojan Global Income Fund, co-manager of the Trojan Ethical Global Income Fund and was awarded management of STS Global Income & Growth Trust in November 2020.
Joining Troy in 2016 to establish the Trojan Global Income Fund, James was previously a Fund Manager at Newton Investment Management where he established and managed the Newton Global Income Fund. He was also the alternate manager on the Newton Real Return Fund. Under James’s management, the Newton Global Income fund grew to c. £4.5bn in AUM and was first in its sector over 10 years. James graduated from Bristol University with a BSc in Politics, before completing his Masters in Finance at the London Business School. He holds the ASIP qualification and is an Associate Member of the CFA Society of the UK.
Tomasz is the co-manager of the Trojan Ethical Global Income Fund, Assistant Fund Manager of the Trojan Global Income Fund and has responsibility for the analysis of global companies and their selection for Troy’s portfolios.
He joined Troy in 2017 from Susa Fund Management, a European equity fund. He previously worked as an Associate at Bain Capital Credit. Tomasz graduated in European Economics from the University of Rome, before completing his Masters in Economics at Bocconi University, and his MBA at London Business School.
Literature
| Document name | Date | Open/download | All documents |
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| Factsheets | All documents | ||
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Circular |
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Proposed amendments to the articles of association |
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| Newsletters | All documents | ||
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Key Information Document – UK |
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Key Information Document – EU |
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Past Performance scenarios |
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10 year Performance Chart |
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| Annual Reports | All documents | ||
| Interim Reports | All documents | ||
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Investor Disclosure Document |
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Factsheets
Date: October 2024 View All documents Open
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Newsletters
Date: Income Matters No.6 View All documents Open
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Annual Reports
Date: 2024 View All documents Open
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Interim Reports
Date: 2023 View All documents Open
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Performance
| Discrete Calendar Annual Returns (%) | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | YTD | Ann Return * |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| STS Global Income & Growth Trust PLC | +19.4 | +0.8 | -5.4 | +35.8 | +6.8 | -7.9 | +39.3 | +0.9 | +16.3 | +1.0 | -0.7 | +9.4 | +8.3 |
| Lipper Global Equity Global Income | +16.3 | +9.5 | -0.4 | +25.9 | +8.2 | -6.2 | +16.8 | +3.1 | +15.4 | +0.4 | +7.1 | +9.6 | +7.4 |
*Since Launch 28 June 2005
Past performance is not a guide to future performance.
The value of the Trust, and any income from it, may go down as well as up and investors may get back less than they invested. Returns may increase or decrease as a result of currency fluctuations. This data is provided for information only and should not be reproduced, published or disseminated in any manner. Although we consider the data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.
Source: Lipper, 31 October 2024.
To see the past performance of Troy’s Global Income Strategy please click here and navigate to the performance section of the page.
Risk analysis
| Risk Analysis | STS Global Income & Growth Trust PLC | Lipper Global Equity Global Income |
|---|---|---|
| Total Return | 126.5 | 106.7 |
| Max Drawdown | -34.3 | -25.3 |
| Best Month | 12.2 | 9.7 |
| Worst Month | -10.1 | -12.7 |
| Positive Months | 60.8 | 64.2 |
| Annualised Volatility | 13.1 | 10.3 |
Past performance is not a guide to future performance.
Maximum Drawdown measures the worst investment period. Annualised Volatility is measured by standard deviation of annual returns.
The value of the Trust, and any income from it, may go down as well as up and investors may get back less than they invested. Returns may increase or decrease as a result of currency fluctuations. This data is provided for information only and should not be reproduced, published or disseminated in any manner. Although we consider the data to be reliable, no warranty is given as to its accuracy or completeness. Any comparisons against indices are for illustrative purposes only.
Source: Lipper, 31 October 2014 to 31 October 2024.
Dividends
Past performance is not a guide to future performance. Income generated (if any) may fall as well as rise.
Discount control
STS Global Income & Growth Trust implemented a Discount Control Mechanism on the 17th November 2020.
This discount control policy is to ensure that the Ordinary shares trade at, or close to, net asset value at all times. The discount control mechanism also serves to materially enhance the liquidity of the Company’s shares. This is ensured through a combination of share buy-backs at a modest discount NAV when supply exceeds demand for the Company’s shares and the issue of new Ordinary shares at a premium to net asset value where demand exceeds supply. The Directors will continue to seek the renewal of the Company’s authority to buy back Ordinary shares annually and at other times should this prove necessary. Purchases of Ordinary shares will only be made through the market for cash at prices below the prevailing net asset value of the Ordinary share. The Directors will be authorised to cancel any Ordinary shares purchased under such authority or to hold them in Treasury. The Directors will continue to seek the renewal of the Company’s authority to issue shares but will only do so when they believe it is advantageous to the Company’s shareholders and for the purposes of operating the Company’s discount policy. In no circumstances would such issue of new shares result in a dilution of the net asset value per share.
Trust announcements
Performance data provided relating to the NAV is calculated net of fees with income reinvested unless stated otherwise. Overseas investments may be affected by movements in currency exchange rates. The value of an investment and any income from it may fall as well as rise and investors may get back less than they invested. The historic yield reflects distributions declared over the past twelve months as a percentage of the Trust’s price, as at the date shown. It does not include any preliminary charge and investors may be subject to tax on their distributions. Tax legislation and the levels of relief from taxation can change at any time. Any change in the tax status of a Trust or in tax legislation could affect the value of the investments held by the Trust or its ability to provide returns to its investors. The yield is not guaranteed and will fluctuate. There is no guarantee that the objective of the investments will be met. Investment trusts may borrow money in order to make further investments. This is known as “gearing”. The effect of gearing can enhance returns to shareholders in rising markets but will have the opposite effect on returns in falling markets. Shares in an Investment Trust are listed on the London Stock Exchange and their price is affected by supply and demand. This means that the share price may be different from the NAV.
For the full trust disclaimer please refer to the Trust fact sheet.
How to invest
Find more information on how to invest in this trust and where it is available.
How to invest
Commentary
October Commentary
The Trust produced a Net Asset Value total return of +1.3% during the month and a price total return of +2.9%, compared to a return of +0.9% for the Lipper Global – Equity Global Income Index.
We have established a new investment in Rentokil Initial. Some will remember this business, managed by Clive Thompson in the 1980s and 1990s, as it became a conglomerate via acquisition earning Mr Thompson the nickname “Mr 20%” – expected earnings per share growth – until it ended badly. The shares fell by 92% between 1998 to 2009.
Today it is a much better business. Under Andy Ransom the company is focussed on commercial and residential pest control, where it has become the global leader as well as the largest player in the lucrative US market. It also has smaller businesses engaged in facilities management providing washroom hygiene equipment and workwear.
Pest control is an inherently attractive industry (at least from an investment standpoint) given the resilient, repeat, non-discretionary nature of spending in this category, often mandated by regulation, leading to high recurring revenue and decent growth. Further, per capita pest control spend increases as countries develop. A warming planet may further bolster demand. The industry remains fragmented offering attractive bolt-on acquisition[1] potential.
Companies in the sector also enjoy durable competitive advantages. Scale and local density of operations lead to a superior cost and productivity as well as brand equity.
The second largest player in the US, Rollins (which admittedly is purely focussed on pest control in one geography), enjoys a P/E multiple of 43x. Conversely Rentokil trades on a much more conservative c. 17x 2024 EPS with a 2.3% dividend yield. So why such a big discount?
Rentokil has temporarily stumbled following the acquisition of the US pest business called Terminix. At Troy we are wary of large corporate deals, and this was no exception leading us to refrain from investing while the deal progressed and the valuation of the shares declined. Herein lies the opportunity. Although we may have a few more bumpy quarters we are being given the opportunity to establish an investment in a high-quality global asset at a tantalizing valuation.
[1] Bolt-on acquisition refers to the acquisition of smaller companies, usually in the same line of business, that presents strategic value.