STS Global Income & Growth Trust aims to be the high quality, low volatility global income and growth investment trust.
What do we do?
STS Global Income & Growth Trust plc is a UK-based investment trust which invests in a portfolio of global equities. It 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.
The trust is managed by James Harries of Troy Asset Management who has over 20 years experience of managing global equity income strategies and says: “We aim to provide a balanced return between income and capital to allow our investors to fund their day to day lives as well as steadily growing the value of their investment over the longer term”.
The manager seeks to construct a global portfolio of shares in large, stable, high-quality, dividend-paying companies that are often dominant in their industries and benefit from habitual, persistent demand for their products. “We consider high quality companies to be those with particular financial characteristics, including attractive return profiles and are cash generative, examples include well known brands such as Pepsico, Johnson & Johnson and Nestlé”. Such high-quality companies tend to have long track records of paying growing dividends and reside in sectors that typically have lower volatility, allowing the Trust to steadily grow both income and capital over the long term.
“The investment approach of the Trust means that we tend to lag strong markets, but should protect better in falling markets. Our view is that, by lessening the effect of market falls, this should allow the portfolio to compound returns and outperform over the longer term.”
STS Global Income & Growth Trust has a long and proud history. It began life as the Reversionary Association Limited in 1889, which became an investment trust in the 1920s, and was renamed Securities Trust of Scotland in 1925. The trust went through several phases of stewardship before being managed by Martin Currie. Securities Trust of Scotland was reconstructed in 2005 and switched from a UK income focus to its current global equity income mandate in 2011. In November 2020, the Board appointed Troy Asset Management Limited as Investment Manager to take Securities Trust of Scotland forward on the next part of its journey. The Trust was renamed to STS Global Income & Growth Trust in 2023. STS is part of the stable of investment trusts managed by Troy.
Troy Asset Management is a privately owned, independent investment boutique whose aim is to protect and grow its investors’ capital over the long term. Troy’s strengths come from its independent structure, strong governance, culture and alignment of interest with investors.