Dunedin Income Growth Investment Trust PLC

Selecting a diverse portfolio of high-quality UK and overseas companies to deliver a resilient quarterly income and long-term capital growth potential

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Latest news

An update from our investment managers, Ben Ritchie and Louise Kernohan

As we write this, UK Equity markets have fallen 30% over the past month (since 20th Feb) as a result of the COVID-19 pandemic, in what has been one of the fastest market declines in history. This is as investors try to rationalise a collapse in global demand, rolling supply chain shocks, an increasingly strained financial system and on top of that a significant health threat amplifying uncertainty and stress. The economic consequences are as yet unclear but as it stands a global recession looks likely. It is also worth noting that alongside the COVID-19 spread we have seen the effective collapse of OPEC+ as a price setting cartel which has led the oil price to fall back towards $20 a barrel, a level last achieved in 2001.

What does this mean for the companies we invest in? The outlook for corporate earnings growth in 2020 has significantly deteriorated in the last 4 weeks. It is difficult to quantify the magnitude of the impact at this stage, but there is certainly the capacity for many companies to become loss making in the short term. This will inevitably have an impact on company dividends, particularly in the most vulnerable industries such as travel, leisure and retail. However, more positively, corporate balance sheets remain relatively strong, central banks and governments are taking major action and with pandemics being finite in length there is scope for a rebound which has the potential to be a lot quicker than in 2008/09 if productive capacity of both labour and capital is effectively insulated.

What does this mean for DIGIT? Our strategy to invest in high quality businesses aligned to structurally growing industries and with strong balance sheets leaves us in relatively good stead and to date the investment portfolio is outperforming the FTSE All Share. We are benefited by our overweight position to sectors that are relatively less affected such as healthcare and non-discretionary consumer products, plus our underweight position to the Oil & Gas sector and only very modest exposure to the heavily impacted industries of travel, leisure and retail. The modest gearing position that we run with however is a headwind in the declining market. The outlook for company dividends for the year ahead is uncertain, but we believe that as it stands today the income we anticipate to be at risk remains a manageable portion of our total expected income. We will continue to closely monitor the situation.

We have adopted a cautious stance for some time and see little reason to shift from this conservative focus on high quality businesses. We cannot fully mitigate the impact of falling markets but we will continue to ensure that the companies we hold are in a position to minimise the long term impact on franchise value and their ability to pay and maintain their dividends.


About us

Hear more about the Trust from our investment manager Louise Kernohan

 

Key people

Ben Ritchie

Ben Ritchie

Senior Investment Manager

Ben Ritchie is Deputy Head of European Equities at Aberdeen Standard Investments and originally joined Aberdeen Asset Management in 2002 as a graduate, having interned with Aberdeen in 2000 and 2001. Ben graduated with a BA (Hons) in Modern History and Politics from Pembroke College, University of Oxford and is a CFA Charterholder.

Louise Kernohan

Louise Kernohan

Senior Investment Manager

Louise Kernohan is an Investment Director in the UK Equities team at Aberdeen Standard Investments, having joined Aberdeen Asset Management via the acquisition of Deutsche Asset Management businesses in 2005. Louise graduated with a BSc (Hons) in Mathematics, Physics and Philosophy and an MA in Management from the University of Durham and is a CFA Charterholder.

  • Ben Ritchie

    Senior Investment Manager

    Ben Ritchie is Deputy Head of European Equities at Aberdeen Standard Investments and originally joined Aberdeen Asset Management in 2002 as a graduate, having interned with Aberdeen in 2000 and 2001. Ben graduated with a BA (Hons) in Modern History and Politics from Pembroke College, University of Oxford and is a CFA Charterholder.

  • Louise Kernohan

    Senior Investment Manager

    Louise Kernohan is an Investment Director in the UK Equities team at Aberdeen Standard Investments, having joined Aberdeen Asset Management via the acquisition of Deutsche Asset Management businesses in 2005. Louise graduated with a BSc (Hons) in Mathematics, Physics and Philosophy and an MA in Management from the University of Durham and is a CFA Charterholder.

David Barron

David Barron

Chairman

David Barron is a Chartered Accountant and is Chief Executive of Miton Group plc. He is a Member of the Council and Finance Committee of Lancaster University. He was, until 2013, Head of Investment Trusts of JP Morgan Asset Management and, until 2014, a director of The Association of Investment Companies.
Catherine Claydon

Catherine Claydon

Non-Executive Director

Catherine Claydon worked for Goldman Sachs International from 1992 until 2007, most recently as a Managing Director in its Pension & Insurance Strategies Group. Previously, she was Global Head of Goldman Sachs Commodity Index marketing. Catherine was an MD at Lehman Brothers in its Pension Advisory Group from 2007 until 2008. She is also a director of the Barclays UK Retirement Fund, chairman of the BBC Pension Trust and a trustee of the British Steel Pension Scheme. She is the Senior Independent Director.

Jasper Judd

Jasper Judd

Non-Executive Director

Jasper Judd is a Chartered Accountant. Until 2012, he worked for Brambles Limited, a listed Australian multinational, where he held a number of senior executive roles including Global Head of Strategy. He is also a non-executive director of JP Morgan Indian Investment Trust plc.
He is Chairman of the Audit Committee.

Christine Montgomery

Christine Montgomery

Non-Executive Director

Christine Montgomery has over 30 years of investment management experience, most recently as Head of Global Equities at AustralianSuper in Melbourne from 2016 to 2019. She previously held roles as a global equities portfolio manager at Fidelity Worldwide Investments, Martin Currie and Edinburgh Partners.

Elizabeth Scott

Elisabeth Scott

Non-Executive Director

Elisabeth Scott worked for Schroders in Hong Kong from 1992 until 2008, most recently as Country Head. Previously she was responsible for Schroders’ institutional client business in Hong Kong and managed multi-asset portfolios. She chaired the Hong Kong Investment Funds Association between 2005 and 2007. She is also director of India Capital Growth Fund Limited, Fidelity China Special Situations Investment Trust PLC, Allianz Technology Trust PLC and the Association of Investment Companies.

Howard Williams

Howard Williams

Non-Executive Director

Howard Williams has over 35 years’ of fund management experience and was, until October 2017, Chief Investment Officer and Head of the Global Equity Team at JPMorgan Asset Management. Prior to joining JPMorgan Asset Management in 1994, he held a number of senior positions at Shell Pensions and Kleinwort Benson Asset Management. He started his career at James Capel & Co. He is also a non-executive director of Schroders Unit Trust Limited.

  • David Barron

    Chairman

    David Barron is a Chartered Accountant and is Chief Executive of Miton Group plc. He is a Member of the Council and Finance Committee of Lancaster University. He was, until 2013, Head of Investment Trusts of JP Morgan Asset Management and, until 2014, a director of The Association of Investment Companies.
  • Catherine Claydon

    Non-Executive Director

    Catherine Claydon worked for Goldman Sachs International from 1992 until 2007, most recently as a Managing Director in its Pension & Insurance Strategies Group. Previously, she was Global Head of Goldman Sachs Commodity Index marketing. Catherine was an MD at Lehman Brothers in its Pension Advisory Group from 2007 until 2008. She is also a director of the Barclays UK Retirement Fund, chairman of the BBC Pension Trust and a trustee of the British Steel Pension Scheme. She is the Senior Independent Director.

  • Jasper Judd

    Non-Executive Director

    Jasper Judd is a Chartered Accountant. Until 2012, he worked for Brambles Limited, a listed Australian multinational, where he held a number of senior executive roles including Global Head of Strategy. He is also a non-executive director of JP Morgan Indian Investment Trust plc.
    He is Chairman of the Audit Committee.

  • Christine Montgomery

    Non-Executive Director

    Christine Montgomery has over 30 years of investment management experience, most recently as Head of Global Equities at AustralianSuper in Melbourne from 2016 to 2019. She previously held roles as a global equities portfolio manager at Fidelity Worldwide Investments, Martin Currie and Edinburgh Partners.

  • Elisabeth Scott

    Non-Executive Director

    Elisabeth Scott worked for Schroders in Hong Kong from 1992 until 2008, most recently as Country Head. Previously she was responsible for Schroders’ institutional client business in Hong Kong and managed multi-asset portfolios. She chaired the Hong Kong Investment Funds Association between 2005 and 2007. She is also director of India Capital Growth Fund Limited, Fidelity China Special Situations Investment Trust PLC, Allianz Technology Trust PLC and the Association of Investment Companies.

  • Howard Williams

    Non-Executive Director

    Howard Williams has over 35 years’ of fund management experience and was, until October 2017, Chief Investment Officer and Head of the Global Equity Team at JPMorgan Asset Management. Prior to joining JPMorgan Asset Management in 1994, he held a number of senior positions at Shell Pensions and Kleinwort Benson Asset Management. He started his career at James Capel & Co. He is also a non-executive director of Schroders Unit Trust Limited.

 

Financial calendar

Year End 31 January
Accounts Published March
Annual General Meeting May
Dividend Paid August, November, February, May

Trust details

Dunedin Income Growth Investment Trust PLC

Registered Office:
1 George Street,
Edinburgh
EH2 2LL

Registered in Scotland as an Investment Company Number SC881

Launch Date: February 1873

Risk Warning
Risk warning
The value of investments and the income from them can go down as well as up and you may get back less than the amount invested. The tax benefits relating to ISA investments may not be maintained. Investors should review the relevant Key Information Document (KID) brochure prior to making an investment decision.
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