David Barron

The trust achieved a 6.7% NAV total return, outperforming the FTSE All-Share Index’s 1.9% return and ranking top in the AIC UK Equity Income sector. Over five years, its 43.8% NAV total return placed it third out of 20 in the sector.

The trust reported a record revenue return of 13.54p per share, up 4.0%, and increased its total dividend by 5.0% to 13.75p per share, exceeding 4.0% inflation. It is classified as a ‘next generation dividend hero’ by the AIC, having raised dividends for 10-19 consecutive years.

While acknowledging economic uncertainty, the investment managers believe the portfolio’s focus on high-quality, sustainable companies positions it well. Its active share is 76%, holdings are concentrated at 35, and up to 25% is invested overseas.

David Barron, chairman of Dunedin Income Growth Investment Trust, said: “The Company has a clear focus on generating both total return and dividend growth while formally incorporating sustainability into its mandate. The board believes that this is the correct strategy to deliver capital outperformance and dividend growth over the longer term.

“Having weathered a volatile economic and political environment over the past few years, we believe that there are now reasons for cautious optimism for the company’s relative performance to continue to prove robust.”