Welcoming Stephen Mitchell
Following the recent Annual General Meeting, Stephen Mitchell was appointed Chairman of CT UK High Income Trust. Stephen has served on the Board since 2020 and brings considerable investment experience, as well as a strong understanding of the Trust, its objectives and the needs of shareholders.
We are pleased to introduce Stephen through this Q&A, where he shares his priorities as Chairman, his perspective on the Trust’s distinctive role within the UK equity income sector, and his outlook for UK companies and long-term investors.
1. What attracted you to CT UK High Income Trust originally and why does it continue to resonate with you today?
I was originally attracted to the Company because it brings together a clear investment objective: a long-standing focus on UK equities and a commitment to delivering attractive returns to shareholders through income and the potential for capital growth. That combination remains as relevant today as it was when I joined the Board in 2020. The Trust offers exposure to a broad range of UK companies across the market capitalisation spectrum, at a time when many of those businesses continue to be overlooked by investors. What continues to resonate is the discipline of the investment approach, the importance placed on shareholder interests, and the opportunity for CT UK High Income Trust to provide investors with a differentiated route into UK equity income over the long term.
2. What are your priorities as Chairman, and what have you learned from your time on the Board that will help you in the role?
My first priority as Chairman is to ensure the Board continues to act in the best interests of shareholders, providing robust oversight of the running of the company. My second key objective is that performance is paramount and thus to support the Manager in delivering excellent performance using the Trust’s investment objective. Having served on the Board since 2020, I have had the benefit of seeing how the Trust operates through different market conditions, and how important it is to maintain a long-term perspective. The Board’s role is not to manage the portfolio day to day, but to provide challenge, guidance and strategic oversight. I have seen first-hand the value of how an open and constructive relationship between the Board, the Manager and our advisers work. That culture of challenge and collaboration is something I aim to preserve and build on as Chairman.
3. What makes CT UK High Income Trust distinctive within the UK equity income sector?
The Company is distinctive because it gives shareholders access to a UK equity income strategy with a high yield but with flexibility built into both the portfolio and the Trust structure. CT UK High Income Trust invests very predominantly in UK equities – but can diversify into sectors in Europe not represented in UK indices – with exposure across companies of different sizes. Its objective is not simply to provide income today, but to do so alongside the prospect of capital growth over time. The Trust’s structure is important: as a closed-ended investment company, it can invest long-term and is not forced to sell assets to meet redemptions and can use gearing when market conditions are good – which can be a meaningful advantage for long-term investors. For shareholders seeking above-average income-focused exposure to UK companies, the Company offers a clear proposition supported by experienced active management and Board oversight.
4. What gives you confidence about the outlook for UK companies and long-term investors?
I believe there are good reasons to be constructive about the outlook for UK companies, particularly for investors who are prepared to take a long-term view. UK equities have been out of favour for some time whilst investors chase AI and technology stocks in other markets, thus valuations remain relatively attractive compared with many other global markets. This means there are opportunities for active managers to identify businesses where the market may be underestimating their resilience, cash generation and recovery potential. Many UK companies are well established, internationally exposed and continue to return capital to shareholders through dividends and buybacks. The UK market is less domestically exposed than many others, rather has high weights in global energy and mining companies which are highly cash generative, providing excellent income. For long-term investors, this combination of income potential, valuation support and selective opportunity is encouraging.
5. What message would you like to share with shareholders as you take on the Chairmanship?
My message to shareholders is one of continuity, discipline and long-term focus. I am very pleased to be taking on the Chairmanship and conscious of the responsibility that comes with representing shareholders’ interests. CT UK High Income Trust has a clear purpose: to be a cost-effective investment vehicle for investors seeking income and capital returns from a portfolio invested predominantly in UK equities. As Chairman, I will seek to ensure the Board continues to provide strong oversight, performance awareness, thoughtful challenge and a clear focus on outcomes for shareholders. I would very much like to thank shareholders for their continued support. The UK market may move on a different cycle to others and not always command the attention it deserves, but I believe valuation always matters, and that this Company remains well placed to provide investors with a compelling way to access good income and long-term capital accumulation opportunity.
6. Finally, what are your interests away from the boardroom?
Away from the boardroom, I continue to take a close interest in investment, including personally using investment trusts, and stewardship more broadly. This includes my work as a Trustee of the National Trust for Scotland and as chair of its investment committee, and as a member of the investment committee at Westminster Almshouses. Outside of these responsibilities, I enjoy time outdoors with my family, especially skiing, hill walking and Alpine climbing. Having travelled the world extensively for work for the majority of my career, I am now thoroughly enjoying more time at home in Britain, especially up high in our wonderful mountain ranges in Scotland and Wales.
