An update from our investment manager, Ben Ritchie - 29 April 2022
We retain the cautious outlook that we have had for some time. Inflation is elevated and prices are now likely to increase further and remain higher for longer as a result of commodity supply risks related to Ukraine. Rates of economic growth are slowing globally, and are likely to slip further as confidence is impacted, particularly in Europe. At the same time, central banks are increasingly focussed on restraining inflation and expectations remain for tightening ahead, while government balance sheets remain fairly stretched. Corporate profits are being challenged even further by supply chain disruptions and higher costs and now increasingly having to cope with both slowing demand and a more challenging environment to pass on prices. This makes for a complex environment to navigate. Overall we remain happy to keep a balance to our positioning giving ourselves the potential to perform in a range of market environments. If anything though our attention is now more firmly fixed on seeking to protect capital on the downside, while we continue to look to participate in any upside that may develop and at the same time focus on the companies that meet our sustainable and responsible investing criteria.
An enhanced ESG approach
The Board believes that companies that best manage Environmental Social and Governance (ESG) risks and opportunities will provide investors with superior risk adjusted returns.
Accordingly, with the support of shareholders, the Company has adopted an enhanced ESG approach consistent with the existing strategic objectives of the Company.
Why Dunedin Income Growth Investment Trust?
Uniquely positioned in the UK Equity Income sector with a differentiated, selective strategy looking to deliver growth in capital and income by investing in the best companies in the UK and Europe, whilst also meeting our sustainable and responsible investing criteria.
A high conviction portfolio of around 40 stocks with an emphasis on balancing dividend yield with growth and sustainability.
Managed by one of the best resourced UK Equity teams, alongside a proven income track record having grown or maintained the dividend for 39 years.