**Summary of STS Global Income & Growth Trust PLC Half-Year Financial Report (to 30 September 2025)**
**Financial Performance Highlights**
**Net Asset Value (NAV) per Share** Increased by 1.9% over six months, reaching 242.36p (up from 243.10p at 31 March 2025).
**Share Price Total Return** 3.0% over six months, with the share price at 241.00p.
**Discount to NAV** Narrowed to 0.56% (from 1.69% at 31 March 2025).
**Dividend** First interim dividend of 2.1p per share declared, yielding 3.7% for the first quarter, in line with the target of maintaining a 3.5% yield.
**Revenue per Share** 3.18p (down from 3.66p in the same period last year).
**Net Assets** £283.55 million (down from £294.55 million at 31 March 2025).
**Performance Comparison**
The trust’s 1.9% NAV growth lagged the **Lipper Global - Equity Global Income Index**, which returned 8.3%. This underperformance is attributed to the portfolio’s limited exposure to high-flying U.S. technology and AI-linked stocks (e.g., "MANGO" cohort), which drove market gains.
**Portfolio Strategy**
Focus on **high-quality, dividend-paying companies** with strong cash flows, resilient business models, and attractive valuations.
**New Investments** Added **Nike** and **Sysco** to the portfolio, funded by selling **Medtronic** and **Hershey**.
**Top Holdings** British American Tobacco (6.5%), CME Group (5.4%), Reckitt Benckiser (5.1%), and Microsoft (4.9%).
**Market Context**
**Macroeconomic Challenges** Persistent inflation, higher interest rates, and geopolitical tensions (e.g., U.S.-China trade relations).
**Market Concentration** Narrow leadership driven by mega-cap tech stocks, creating opportunities in undervalued sectors.
**Discount Management**
Active share buyback program to maintain a narrow discount to NAV, with 4.39 million shares purchased and 225,000 shares issued during the period.
**Outlook**
Anticipated headwinds include sustained inflation, interest rate uncertainty, and trade dynamics.
Opportunities arise from potential rotation away from overvalued tech stocks to undervalued sectors.
The trust remains focused on **capital preservation, rising income, and steady growth**, with a diversified portfolio suited for less exuberant market conditions.
**Management Changes**
**Sarah Harvey** appointed as Chair, with **Alexandra Innes** as Senior Independent Director and **Bridget Guerin** as Chair of the Marketing and Communications Committee.
**Tomasz Boniek** became Co-Manager alongside **James Harries**.
**Key Risks**
Long-term risks include global equity market uncertainties, mitigated by robust internal controls and a liquid, diversified portfolio.
**Conclusion**
STS Global Income & Growth Trust delivered positive but modest returns in a challenging market environment, emphasizing its commitment to income generation, capital preservation, and long-term growth. The trust remains well-positioned to navigate potential market volatility and capitalize on undervalued opportunities.