dunedinincomegrowth.co.uk
Dunedin Income Growth
Investment Trust PLC
Annual Report 31 January 2025
A differentiated strategy seeking to deliver resilient income and capital growth,
while meeting our sustainable and responsible investing approach
For more information visit dunedinincomegrowth.co.uk
aberdeeninvestments.com
Dunedin Income Growth Investment Trust PLC 133
Directors
David Barron (Chairman)
Gay Collins
Jasper Judd
Christine Montgomery
Arun Kumar Sarwal (appointed 1 February 2025)
Howard Williams
Registered Office & Company Secretary
abrdn Holdings Limited
1 George Street
Edinburgh EH2 2LL
Email: dunedin.income@aberdeenplc.com
Alternative Investment Fund Manager
abrdn Fund Managers Limited
280 Bishopsgate
London EC2M 4AG
Investment Manager
abrdn Investments Limited
1 George Street
Edinburgh EH2 2LL
Company Registration Number
SC000881 (Scotland)
Legal Entity Identifier (“LEI”)
549300PPXLZPR5JTL763
Website
dunedinincomegrowth.co.uk
LinkedIn: aberdeen Investment Trusts
X: @aberdeenTrusts
Facebook: aberdeen Investment Trusts
YouTube: @aberdeenInvestmentTrusts
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Shareholder help can be found at shareview.co.uk.
Alternatively, you can contact the Shareholder Helpline:
+44 (0)371 384 2441*
(*Lines open 8.30 a.m. to 5.30 p.m., Monday to Friday
excluding public holidays in England and Wales. Charges
for calling telephone numbers starting with ‘03’ are
determined by the caller’s service provider.)
If calling from overseas, please ensure the country code
is used.
Depositary
The Bank of New York Mellon (International) Limited
160 Queen Victoria Street
London EC4V 4LA
Stockbroker
JPMorgan Cazenove
25 Bank Street
Canary Wharf
London E14 5JP
Auditor
Deloitte LLP
110 Queen Street
Glasgow G1 3BX
Contact Addresses
Dunedin Income Growth Investment Trust PLC 1
“The Company’s NAV total return was 9.0%, and the
share price total return was 8.4%. The Board is
pleased to declare an increase of 3.3% in the
dividend for the year, to 14.20p per share, equating
to a dividend yield of 5.0% based on the year end
share price.”
David Barron, Chairman
“The high conviction portfolio, with a strong
focus on quality, is highly differentiated from
other UK Equity Income investment trusts.”
Ben Ritchie and Rebecca Maclean,
Aberdeen
2 Dunedin Income Growth Investment Trust PLC
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THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR
IMMEDIATE ATTENTION. If you are in any doubt about the
action you should take, you are recommended to seek
your own independent financial advice from your
stockbroker, bank manager, solicitor, accountant or other
financial adviser authorised under the Financial Services
and Markets Act 2000 (as amended by the Financial
Services Act 2012) if you are in the United Kingdom or,
if not, from another appropriately authorised
financial adviser.
If you have sold or otherwise transferred all your Ordinary
shares in Dunedin Income Growth Investment Trust PLC,
please forward this document, together with the
accompanying documents, immediately to the purchaser or
transferee, or to the stockbroker, bank or agent through
whom the sale or transfer was effected for transmission to
the purchaser or transferee.
Overview
Company Summary 3
Performance Highlights 5
Financial Calendar 6
Financial Highlights 7
Strategic Report
Chairman’s Statement 9
Overview of Strategy 14
Promoting the Success of the Company 22
Performance 26
Investment Manager’s Review 30
Investment Process 34
Sustainable and Responsible Investment
Equity Approach 36
Sustainable and Responsible Investing Outcomes 41
Information About the Investment Manager 45
Portfolio
Ten Largest Investments 48
Portfolio 49
Sector and Geographical Breakdown 51
Sector Analysis 52
Investment Case Studies 54
Governance
Board of Directors 58
Directors’ Report 61
Directors’ Remuneration Report 70
Audit Committee’s Report 73
Financial Statements
Statement of Directors’ Responsibilities 78
Independent Auditor’s Report 79
Statement of Comprehensive Income 87
Statement of Financial Position 88
Statement of Changes in Equity 89
Statement of Cash Flows 90
Notes to the Financial Statements 91
Other Information
Investor Information 113
Glossary of Terms 115
Your Company’s History 118
Share Capital History 119
AIFMD Disclosures (Unaudited) 120
Alternative Performance Measures 121
General
Notice of Annual General Meeting 124
Contact Addresses 133
Contents
Dunedin Income Growth Investment Trust PLC 3
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Built to help your returns
keep pace with the
cost of living
Searching out the UK and
overseas companies
shaping a better future
Actively investing to bring
together what we believe
are the best opportunities
Long term growth Targeting reliable quarterly income
To capture long-term growth, the Investment
Manager looks across the UK and overseas to find
companies, from major multi-nationals to dynamic
smaller companies, benefiting from major economic
trends such as energy transition, digitisation, shifting
demographics and changing consumer behaviour.
To keep delivering a reliable and growing quarterly
income, the team invests in well-managed, financially
healthy companies with robust earnings potential.
A sustainable focus Robust financial returns
By using a range of forward-looking tools to interrogate
Environmental, Social and Governance (“ESG”)
practices, the Investment Manager looks to ensure
that every company it invests in is leading on
sustainability today or taking steps to
lead the way tomorrow.
By applying these stringent criteria, the Company
is dedicated to delivering robust financial returns
for investors – and helping to shape a better
future for everyone.
Company Summary
4 Dunedin Income Growth Investment Trust PLC
3.3% of the Company’s total assets are invested
in the Banks sub-sector (2024: 3.6%).
Dunedin Income Growth Investment Trust PLC 5
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
Net asset value total return per Ord share
AB
Share price total return per Ord share
A
9.0% 8.4%
2024 6.7% 2024 (1.6)%
Revenue return per Ord share Ongoing charges
A
13.8
p
0.56%
2024 13.5p 2024 0.64%
Discount to net asset value
AB
Dividends per Ordinary share
11.6% 14.20
p
2024 10.7% 2024 13.75p
A
Alternative Performance Measure (see pages 121 and 122).
B
With debt at fair value (see page 102).
Net Asset Value per share –
debt at fair value
Share price Dividends per share
At 31 January – pence At 31 January – pence Year ended 31 January - pence
297.6
309.0
302.8
309.0
322.4
2122232425
287.0
310.0
294.0
276.0
285.0
21 22 23 24 25
12.80
12.90
13.10
13.75
14.20
21 22 23 24 25
Performance Hi
g
hli
g
hts
6 Dunedin Income Growth Investment Trust PLC
Calendar
Online shareholder presentation
7 May 2025
Annual General Meeting (Edinburgh)
22 May 2025
Expected payment dates of quarterly dividends
30 May 2025
29 August 2025
28 November 2025
27 February 2026
Half year end
31 July 2025
Expected announcement of results for the
six months ending 31 July 2025
September 2025
Financial year end
31 January 2026
Expected announcement of results for the
year ending 31 January 2026
April 2026
Financial Calendar
Dunedin Income Growth Investment Trust PLC 7
Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements
31 January 2025 31 January 2024 % change
Total assets (£’000) (see page 116 for definition) 477,187 488,867 –2.4
Equity shareholders’ funds (£’000) 428,528 445,815 –3.9
Market capitalisation (£’000) 384,605 403,437 –4.7
Net asset value per Ordinary share 317.55p 304.99p 4.1
Net asset value per Ordinary share with debt at fair value
A
322.47p 308.98p 4.4
Share price (mid) 285.00p 276.00p 3.3
FTSE All-Share Index 4,710.58 4,173.06 12.9
Discount (difference between share price and net asset value)
Discount where borrowings are deducted at fair value
A
11.6% 10.7%
Gearing (see page 115 for definition)
Net gearing
A
10.9% 6.8%
Dividends and earnings
Total return per share 23.90p 15.45p
Revenue return per share 13.82p 13.54p 2.1
Total dividend per share for the year 14.20p 13.75p 3.3
Dividend cover
A
0.97 0.99
Revenue reserves
Prior to payment of third and final dividends
B
17.65p 16.34p
After payment of third and final dividends
BC
9.85p 8.99p
Operating costs
Ongoing charges
AD
0.56% 0.64%
A
Considered to be an Alternative Performance Measure as defined on pages 121 and 122.
B
Calculated by dividing the revenue reserve per the Statement of Financial Position on page 88 by the number of shares in issue at the reporting date per note 16 on page 101.
C
Third interim dividend for the year ended 31 January 2025 of 3.2p per share (2024 – 3.2p). Final dividend for the year ended 31 January 2025 of 4.6p per share (2024 – final dividend
of 4.15p). See note 16 on page 101 for further details.
D
Calculated in accordance with the latest AIC guidance issued in October 2020 to increase the scope of reporting the look-through costs of holdings in investment companies
where applicable.
Financial Hi
g
hli
g
hts
8 Dunedin Income Growth Investment Trust PLC
Strategic Report
The Company is an investment
trust with its shares listed on the main
market of the London Stock Exchange.
The Company’s objective is to
achieve growth of income and
capital from a high quality portfolio
invested mainly in companies listed
or quoted in the United Kingdom or
companies having significant
operations and/or exposure to the
United Kingdom that meet the
Company’s sustainable and
responsible investing approach.
9.3% of the Company’s total
assets are invested in the
Pharmaceuticals and
Biotechnology sub-sector
(2024: 9.9%).
Dunedin Income Growth Investment Trust PLC 9
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
The UK equity market performed strongly during the year
ended 31 January 2025. The Company’s net asset value
total return was 9.0%, and the share price total return was
8.4%. The Board is pleased to declare an increase of 3.3%
in the dividend for the year, to 14.20p per share, equating
to a dividend yield of 5.0% based on the year end
share price.
Performance
Notwithstanding the positive NAV return for the year, it is
disappointing to report underperformance against the
benchmark, the FTSE All-Share Index, which produced a
total return of 17.1%.
This was a year where relative performance was
characterised by challenging market conditions for the
Investment Manager’s strategy, with relatively
concentrated returns and strong performance from a
number of sectors to which the Company has limited
exposure. In addition, selective tilts towards European
exposure, UK mid-caps and companies with quality
characteristics have historically been sources of
opportunity, but in this period proved a headwind. It is
important to note that, while there were some stocks
whose performance lagged that expected by the
Investment Manager, the Company has suffered primarily
from the opportunity cost of missing out on strong returns,
as opposed to significant issues affecting the holdings
within the portfolio.
The period under review was one of surprisingly positive
absolute equity returns against a backdrop of significant
elections at home and abroad and general economic,
technological and political volatility. The UK stock market
was one of the global leaders with its 17% total return,
despite a domestic economy that began to stall following
the general election in July, and the impact of the new
government’s revenue raising measures in the October
budget. During this time, the large-cap FTSE 100 Index
comfortably outperformed the mid-cap FTSE 250 Index
and Smaller Companies Index. Inflation remained
elevated across most developed economies with UK CPI
ending the year at 3.0%, still above the Bank of England’s
(“BoE”) target rate. Despite persistently higher than
desired price growth, central banks began the process of
easing monetary policy with the BoE cutting interest rates
twice in 2024 to bring the base rate to 4.75%. There has
been a further reduction to 4.5% since the year end and
markets are pricing in a further modest reduction over the
remainder of 2025.
Frustratingly, the discount at which the Company’s shares
are trading to NAV widened over the year by 0.9% to stand
at 11.6%. Reducing the discount remains a key objective
of the Board and we have continued to buy back
substantial numbers of shares over the period. The three
main elements needed to reduce the Company’s discount
are improving benchmark relative performance,
demonstrating a compelling income proposition and
delivering a high quality and targeted investor relations
programme, and these elements continue to be the
Board’s key areas of focus.
“This was a year where relative
performance was characterised by
challenging market conditions for the
Investment Manager’s strategy, with
relatively concentrated returns and
strong performance from a number of
sectors to which the Company has
limited exposure.”
Reflecting on this year’s performance, it is worth
considering what makes a successful investment trust. For
the shares of an investment trust to consistently trade at a
narrow discount or at a premium, the investment trust
needs to offer an investment strategy that shareholders
consider worth investing in, the investment mandate
needs to be well-executed and the company needs to
have a cost-effective marketing and shareholder relations
strategy. These need to be delivered by teams that have
experience in all aspects of investment trust
management. The Company has all these elements in
place. While near-term investment performance has
been below our expectations, since the Board
repositioned the investment strategy in January 2016, the
Company has delivered a NAV total return of 101.3%
compared to the benchmark return of 96.2%, and over
the same period ranks 6th out of 18 in the AIC UK
Equity Income sector by NAV total return, with an
annualised NAV total return of 8.1%. This demonstrates
that, over this longer period, the Company’s returns have
been competitive within the sector.
In the past year, the strategy has faced headwinds. In any
active strategy, not all investment decisions will be
rewarded. In a concentrated portfolio, the effects of poor
stock selection are magnified. This is anything but an
Chairman’s Statement
10 Dunedin Income Growth Investment Trust PLC
index-like portfolio, a feature we believe shareholders
value and, as we have stated before, there will be years
when we perform very differently from the benchmark
and many of our peers. This is demonstrated over the past
two years: for the year just past, the Company delivered a
relatively strong absolute NAV total return of 9.0%, but
underperformed the benchmark index; and in the
previous year, ended 31 January 2024, the Company
delivered a NAV total return of 6.7%, outperforming the
benchmark by nearly 5% and was the best performing
investment trust in the UK Equity Income sector for
that year.
Active management requires the patience to absorb the
vicissitudes of markets. The strategy has delivered
significant outperformance in the past and the Board
believes that it will do so again when the Investment
Manager’s style returns to favour.
We remain committed to the sustainability ambitions
of the Company and believe it is a sensible approach
when investing for the long term and to deliver resilient
and growing dividends. We expect that investors will
return their focus towards this segment of the market
as environmental and social risks rise and asset owners
turn their attention to the impact of their holdings. This
is about both avoiding risks and taking advantage
of opportunities, such as investing behind the powerful
demand trends stemming from the climate transition.
Earnings
The Board recognises the importance of the
revenue return to shareholders and we are pleased to
report that the portfolio has seen revenue earnings per
share grow by 2.1%, reaching another record high of
13.82p per share, aided by a combination of solid dividend
distributions from portfolio companies, a healthy level of
option writing income and a reduction in the number of
shares outstanding through our ongoing programme of
share buybacks. This level of revenue growth per share is
in line with the growth of dividend distributions from the
FTSE All-Share Index over 2024.
Dividend
Having paid three quarterly dividends of 3.20p per
share, we are proposing a final dividend of 4.60p per
share, payable on 30 May 2025 to shareholders on the
register on 2 May 2025. This will make a total dividend of
14.20p per share for the year, an increase of 3.3% on last
year and ahead of the rate of inflation. This will be the 41st
year out of the past 45 years that the Company has
grown its dividend, with the distribution maintained in the
other four years.
In addition, having increased the dividend in every year
since 2011, the Company is pleased to be classified under
the ‘Next Generation of Dividend Heroes’ banner by
the Association of Investment Companies, being one of
the 30 investment trusts that have raised their dividend for
between 10 and 19 consecutive years.
It is also worth noting that, since January 2016, the
Company’s dividend per share has increased by 24.6%,
outpacing the 18% growth in dividend distributions from
the FTSE All Share Index and doing so in a much more
resilient fashion, noting the UK market’s 42% cut to
dividend payments experienced during the pandemic in
2020. The ability to smooth dividends using revenue
reserves or indeed pay from realised capital reserves to
maintain shareholder distributions is one of the key
benefits of the investment trust structure.
“The total dividend of 14.20p per
share for the year is an increase of
3.3% on last year and ahead of the
rate of inflation.”
Following payment of the final dividend, the Company will
have utilised 0.38p per share of its revenue reserves,
leaving nearly 10p per share available to support future
distributions. This represents approximately 69% of the
current annual dividend cost.
The Company has drawn 3.22p per share from revenue
reserves since January 2019, both through the transition
away from higher yielding, lower growth companies and,
particularly in 2020/21, when 1.9p per share was utilised
from revenue reserves following the impact of the Covid
pandemic on the portfolio. The Company does have the
ability to pay dividends out of realised capital reserves
and, given its very long history, is in the very favourable
position of having capital reserves that form a significant
part of equity shareholders’ funds.
The Investment Manager is focussed on enhancing
the Company’s longer-term potential for both faster
dividend growth and better capital performance. The
dividend yield was 5.0% based on the share price of 285p
at the end of the year, a 35% premium compared to a
notional yield of 3.7% from the FTSE All-Share Index and a
premium of 11% to the Bank of England’s base rate of
4.5%, while offering the prospect of real growth.
Chairman’s Statement
Continued
Dunedin Income Growth Investment Trust PLC 11
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Income return through dividends has been a significant
proportion of the return to shareholders from their
investment in the Company, and the Board is aware of its
importance to shareholders. Historic wisdom and practice
is that dividends have and can be largely generated from
revenue returns, that is dividends paid by companies we
invest in, supplemented in the Company’s case by the
strategic use of option writing. Looking back over the past
ten years, as I retire from the Board, it is interesting to note
that the UK market has increasingly moved towards
buybacks as a flexible form of capital management and
distribution. This trend is seemingly structural with
buybacks representing approximately 50% of the value of
total distributions in 2024. Furthermore, the Sterling
amount of dividends being paid by the UK market last year
is not much higher than the total in 2014. This shifting
landscape presents questions for boards and
shareholders both as to dividend policy - what is paid out
in any year, and what is a desirable rate of growth to aim
for - and investment policy, how your capital is invested to
generate this return. Whilst raising questions, in the Board’s
view these structural changes also present the Company
with real potential opportunities, through being able to use
the structural advantages of an investment trust to
address these shifting market dynamics.
Our progressive distribution policy remains, seeking to
grow the dividend faster than inflation over the medium
term. With the Company’s robust revenue and capital
reserves and the healthy underlying earnings growth of
the companies within the portfolio, we believe that an
overall policy delivering both reliable income and capital
growth remains very well supported.
Gearing
The Board believes that the sensible use of
modest financial gearing, whilst amplifying market
movements in the short term, will enhance returns of both
capital and income to shareholders over the long term.
We also recognise the benefit that having a reasonable
proportion of long-term fixed rate funding provides to
managing the Revenue Account, through greater
certainty over financing costs.
The Company currently employs two sources of
gearing, a £30 million loan note which matures in 2045,
and a £30 million multi-currency revolving credit facility
that expires in August 2027 which was put in place in 2024
and negotiated on attractive terms with The Bank of
America. This facility replaced the expiring £30 million loan
with The Bank of Nova Scotia. A Sterling equivalent of
£18.9 million was drawn down from the facility at the
year end.
With debt valued at par, the Company’s net
gearing increased from 6.8% to 10.9% during the year. This
was due to the Investment Manager drawing down an
additional £5 million of borrowings during the year to
deploy into favoured investment opportunities, a lower
level of cash balances and the reduction in net assets as a
result of the ongoing share buybacks. The Board believes
this remains a relatively conservative level of gearing and
the undrawn part of the revolving credit facility provides
the Company with financial flexibility should opportunities
to deploy additional capital arise.
Discount
The share price total return for the year of 8.4% modestly
underperformed the NAV total return, reflecting a move in
the discount from 10.7% at the end of last year to 11.6% as
at 31 January 2025 (on a cum-income basis with
borrowings stated at fair value). Reflecting this widening
during the year, 11.2 million shares were bought back at
an average discount to NAV of 11.0%, providing an
estimated enhancement of 1.0% to the NAV per share.
The widening of the Company’s discount has been a
cause of significant frustration to the Board. The reduction
in net demand for the Company’s shares has a number of
causes, some Company specific and some relating to
broader sectoral issues. Specific issues include the transfer
of the Aberdeen Savings Schemes at the end of 2023 to
the Interactive Investor platform, leading to increased
selling during and after the transfer process. The Board
has engaged with Aberdeen to understand how the
attractive terms of savings schemes and the sense of
connection between investors and the Company can be
replicated on the Interactive Investor platform. In addition,
recent capital performance of the portfolio has not
attracted new investors. The current negativity around
sustainable investing is also unhelpful. More broadly,
UK equities have been out of favour, with the wider
reduction in equity exposure to the UK market being
well-documented.
The Board believes a consistent rating of the
Company’s shares close to the underlying asset value is of
significant benefit to shareholders and strives to achieve
this. The Board also believes that the successful
implementation by the Investment Manager of the
investment strategy and delivery of both dividend growth
and attractive total return performance is key to ensuring
this. As in previous years, we will seek shareholders’
permission at the AGM to buy back shares and issue new
shares. We have actively increased the level of buybacks
in recent months and will continue to look at different
approaches to reduce the discount, including enhancing
12 Dunedin Income Growth Investment Trust PLC
the attractiveness of the Company to potential investors,
whilst preserving the integrity of the closed ended
structure which we believe is a benefit to our portfolio
managers and therefore our shareholders. At the time of
writing the share price discount to NAV has narrowed to
around 8%.
Annual General Meeting and Online
Shareholder Presentation
AGM
The AGM will be held at 12 noon on Thursday 22 May 2025
at InterContinental Edinburgh, The George, 19-21 George
Street, Edinburgh EH2 2PB. The meeting will include a
presentation from the Investment Manager and will be
followed by a buffet lunch. We encourage all shareholders
to complete and return the Proxy Form enclosed with the
Annual Report to ensure that your votes are represented
at the meeting.
If you hold your shares in the Company on a platform via a
nominee, please note that the Association of Investment
Companies has provided helpful information on how to
attend an AGM and how to vote investment company
shares held on some of the major platforms. This
information can be found at: theaic.co.uk/how-to-vote-
your-shares
The Notice of the AGM is contained on pages 124 to 129.
“The AGM will be held at 12 noon on
Thursday 22 May 2025 at
InterContinental Edinburgh, The
George, 19-21 George Street,
Edinburgh EH2 2PB.”
Online Shareholder Presentation
To encourage as much interaction as possible with our
shareholders, especially those who are unable to attend
the AGM, we will again also be hosting an Online
Shareholder Presentation, which will be held at 11.00 am
on Wednesday 7 May 2025. At this event you will receive a
presentation from the Investment Manager and have the
opportunity to ask live questions of the Chairman and the
Investment Manager. The online presentation is being held
ahead of the AGM to allow shareholders to submit their
proxy votes subsequently.
Full details on how to register for the online event can be
found at: bit.ly/abrdn-Dunedin-Income-2025
Details are also available on the Company’s website.
Board Succession
We were pleased to announce the appointment of Arun
Kumar Sarwal as an independent non-executive Director
of the Company with effect from 1 February 2025.
Arun is a Chartered Accountant and has broad
experience of global equities and fund management over
some 35 years in the UK, Europe, and Asia. He is a Board
Advisor to Tumelo and a director and Chairman of the
Audit Committee of JPMorgan European Discovery Trust
plc. Arun’s biographical details are contained on page 60.
He will stand for election at the AGM.
It is the Company’s stated policy that Directors should
stand down after nine years on the Board. Jasper Judd,
who is Chairman of the Audit Committee, and I, both
joined the Board in February 2016. As previously stated, we
will both stand down from the Board at the AGM. It is the
Board’s intention that Arun will be appointed as Chairman
of the Audit Committee in place of Jasper at that time. I
would like to thank Jasper for his diligent and highly
effective chairing of the Company’s Audit Committee and
his contribution to Board deliberations.
Howard Williams, who has been a Director since April
2018, will succeed me as Chair of the Company and it is
the Board’s intention to recruit a further Director later in
2025 to bring the number of Directors back to five.
It has been a great pleasure to be a Director of the
Company for the past nine years. I have enjoyed working
with my Board colleagues past and present. We have
planned for the succession and the Board of Directors
taking the Company forward is highly experienced in all
aspects of investment trust management. Our Manager,
Aberdeen, has undergone significant change over the
past nine years but the team managing Dunedin Income
Growth has been remarkably consistent with Ben Ritchie
involved in managing the portfolio since 2012 and the lead
manager since 2016. The individuals working with the
Board have been committed and diligent in managing
your company and I would like to thank them for
their support.
Chairman’s Statement
Continued
Dunedin Income Growth Investment Trust PLC 13
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Outlook
The past year has been a difficult period for the Company,
notwithstanding the clear focus on generating both total
return and dividend growth. The focus of our approach on
high quality companies, with the ability to invest down the
market cap spectrum and overseas should give the
portfolio both flexibility and resilience. The Board believes
that this is a sound strategy to deliver capital
outperformance and dividend growth over the longer
term. We believe that there are reasons to expect the
Company’s relative performance to significantly improve
and to return to outperformance of both peers and the
benchmark. In aggregate, the portfolio valuation is at the
narrowest premium to the wider market in three years,
despite far stronger levels of profitability, returns and
balance sheets. At the stock level, the Investment
Manager sees compelling prospective returns from a
significant number of the companies in the portfolio,
businesses that are trading at prices well below their
potential value.
“The Board is confident that the
Company is well positioned to return
to deliver relative total return
outperformance over the medium and
long term.”
As we have stated in past years, we also believe that the
income growth of the Company relies more on structural
rather than cyclical growth and that gives the Investment
Manager a higher degree of confidence on the likely path
of income generation. The sustainability overlay enhances
this approach. Our approach should help to underpin
earnings delivery, even in an environment where
economic growth remains modest. The balanced nature
of the portfolio means it is well set to navigate volatile
markets and demonstrate resilience in a range of
different market environments.
There are of course risks to be aware of. At home in the
UK, businesses now have to navigate the substantially
increased costs that will come through from the Autumn
budget. The economy remains stagnant and the
confidence of consumers and companies is subdued.
Global politics have become more volatile and the path
and impact of US economic policy more difficult to
ascertain. President Trump’s trade agenda has caused
markets a great deal of discomfort since the year end,
particularly since his tariff announcement on 2 April.
Alongside this, there are already signs of an economic
slowdown emerging as businesses grapple with the daily
torrent of policy announcements.
While inflationary pressures in the UK have eased, they are
still at elevated levels compared to central bank targets.
Likewise, geopolitical tensions continue to persist across
the Middle East, as does Russia’s conflict with Ukraine.
Meanwhile, China’s economy remains subdued, unlikely to
be aided by the current trade dispute with the United
States. If there is a potential silver lining of this backdrop, it
is that UK inflation may ease faster than expected -
energy prices have fallen sharply and this may give the
Bank of England greater scope to ease monetary policy,
an essential boost to what remains a consumption led
domestic economy. As a result, we think it is important to
maintain a relatively well-balanced portfolio and the
Investment Manager’s focus on investing in companies
with pricing power, strong balance sheets and with
greater exposure to structural, rather than cyclical,
growth should offer greater resilience in both capital and
income generation, while retaining upside optionality.
The Board is confident that the Company is well
positioned to return to deliver relative total return
outperformance over the medium and long term. This,
combined with continuing to deliver a progressive
distribution policy together with a targeted and effective
investor relations programme should help to move the
Company’s shares to trade closer to NAV.
David Barron
Chairman
14 April 2025
14 Dunedin Income Growth Investment Trust PLC
Business
The Company is an investment trust with its shares listed
on the main market of the London Stock Exchange.
Investment Objective
The Company’s objective is to achieve growth of income
and capital from a high quality portfolio invested mainly in
companies listed or quoted in the United Kingdom or
companies having significant operations and/or exposure
to the United Kingdom that meet the Company’s
sustainable and responsible investing approach.
Investment Policy
In pursuit of its objective, the Company's investment policy
is to deliver income and long-term growth from investing
mainly in equities and equity-related securities of
companies incorporated or domiciled in the United
Kingdom, or companies having significant operations
and/or exposure to the United Kingdom, that meet
the Company’s sustainable and responsible
investing approach.
The Company ensures that all equity and equity related
securities adhere to the Investment Manager’s
Sustainable and Responsible Investment Equity Approach
details of which are included on pages 36 to 40.
The Company does not have a UK sustainable investment
label under the sustainability disclosure requirements and
investment labels regime (“SDR”). While the Company has
sustainability characteristics, it does not have a
sustainability objective. Sustainable investment labels are
intended to help investors find products that have a
specific sustainability goal.
Management Process
The Investment Manager has discretion to actively
manage the portfolio to achieve a diverse asset mix at
sector and stock level.
The Company incorporates sustainability characteristics
through a combination of positive allocation, negative
exclusions, and corporate engagement. The Company
uses the Investment Manager’s proprietary, forward-
looking Environmental Social and Governance (“ESG”)
tools to assess the sustainable characteristics of
investments and classifies holdings as Sustainable
Leaders, Solutions Providers and Transition companies.
The Investment Manager’s internal ESG House Score and
ESG Quality Score are also used to identify and exclude
companies exposed to the highest ESG risks. For example,
the Company will not invest in ESG Q 4 and 5 rated
companies or those with an ESG House Score in the
bottom 10% of the investment universe. In addition, a set of
company exclusions are applied relating to the principles
of the UN Global Compact, tobacco manufacturing,
thermal coal, oil & gas and weapons (for further details,
see the Sustainable and Responsible Investment Equity
Approach section on pages 36 to 40).
Further, sustainability characteristics are targeted at the
aggregate portfolio level. The Company is committed to
having a carbon footprint (Scope 1 and 2) of at least 20%
below the FTSE All-Share Index.
The Company may also invest in other investment funds
(including those managed by the Investment Manager),
money-market instruments and cash. These assets may
not adhere to the Company’s investment objective but will
not conflict with the Company’s sustainable and
responsible investing approach and will pass the
Company’s exclusionary screening criteria as agreed by
the Board.
Risk Diversification
The Company maintains a diversified portfolio consisting,
substantially, of equity or equity-related securities, and it
can invest in other financial instruments. The Company is
invested mainly in companies listed or quoted in the
United Kingdom and can invest up to 25% of its gross
assets overseas.
It is the policy of the Company to invest no more than
15% of its gross assets in other listed investment
companies and no more than 15% of its gross assets
in any one company.
Gearing
The Board is responsible for determining the gearing
strategy for the Company, with day-to-day gearing
decisions being made by the Manager within the remit set
by the Board. The Board has set its gearing limit at a
maximum of 30% of the net asset value at the time of
draw down. Gearing is used selectively to leverage the
Company's portfolio in order to enhance returns where
and to the extent considered appropriate.
The Company may only make material changes to its
investment policy (including the level of gearing set by the
Board) with the approval of shareholders in the form of an
ordinary resolution and the prior approval of the FCA.
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Delivering the Investment Objective
and Policy
The Directors are responsible for determining the
Company’s investment objective and investment policy.
Day-to-day management of the Company’s assets has
been delegated, via the AIFM, to the Investment Manager.
Investment Process
The Investment Process adopted by the Investment
Manager is contained on pages 34 to 35.
Benchmark
The Company’s benchmark is the FTSE All-Share Index
(total return). Performance is measured on a net asset
value total return basis over the long-term.
Promoting the Success of the Company
The Board’s statement on pages 22 to 25 describes how
the Directors have discharged their duties and
responsibilities over the course of the financial year under
section 172 (1) of the Companies Act 2006 and how they
have promoted the success of the Company for the
benefit of the members as a whole.
Key Performance Indicators (“KPIs”)
The Board uses a number of financial performance measures to assess the Company’s success in achieving its
objective and determining the progress of the Company in pursuing its investment policy. The main KPIs are shown in
the table below.
KPI Description
Performance of NAV against benchmark index
and comparable investment trusts
The Board measures the Company’s NAV total return performance against the total
return of the benchmark index – the FTSE All-Share Index. The figures for this year
and for the past three and five years, and a graph showing performance against the
benchmark index over the past five years are shown on page 26. The Board also
monitors performance relative to a peer group of investment trusts which have
similar objectives, policies and yield characteristics.
Revenue return per Ordinary share The Board monitors the Company’s net revenue return. The revenue returns per
Ordinary share for each of the past 10 years are set out on page 28.
Dividend per Ordinary share The Board monitors the Company’s annual dividends per Ordinary share. The
dividends per share for each of the past 10 years are set out on page 28.
Share price performance The Board monitors the performance of the Company’s share price on a total return
basis. The returns for this year and for the past three and five years, and a graph
showing the share price total return performance against the benchmark index
over the past five years are shown on page 26.
Premium/discount to NAV The premium/discount of the share price relative to the NAV per share is monitored
by the Board. The discount at the year end and at the end of the previous year are
disclosed on page 7.
Ongoing charges The Board monitors the Company’s operating costs carefully. Ongoing charges for
the year and the previous year are disclosed on page 7.
16 Dunedin Income Growth Investment Trust PLC
Principal Risks and Uncertainties
The Board carries out a regular review of the risk environment in which the Company operates, changes to the
environment and individual risks. The Board also considers emerging risks which might affect the Company. The Board
receives updates from the Manager on the risks that could affect the Company.
The Board has carried out a robust assessment of the Company’s principal and emerging risks, which include those that
would threaten its business model, future performance, solvency, liquidity or reputation. The principal risks and
uncertainties facing the Company at the current time, together with a description of the mitigating actions the Board
has taken, are set out in the table below. In addition to those principal risks and uncertainties, the Board considers that
the development of Artificial Intelligence (“AI”) presents potential risks to businesses in almost every sector. The extent of
the risk presented by AI is extremely hard to assess at this point but the Board considers that it is an emerging risk and,
together with the Manager, will monitor developments in this area.
There are a number of other risks which, if realised, could have a material adverse effect on the Company and its
financial condition, performance and prospects. These include a number of existing geo-political risks, including the
impact on global financial markets of US tariffs announced since the year end. The Board is also conscious of the effect
of higher inflation on financial markets and the resultant implications for interest rates.
The principal risks associated with an investment in the Company’s shares are published monthly in the Company’s
factsheet and they can be found in the pre-investment disclosure document (“PIDD”) published by the Manager, both of
which are available on the Company’s website.
Risk Trend Mitigating Action
Investment objectives - a lack of
demand for the Company’s
shares could result in a widening
of the discount of the share
price to its underlying NAV and a
fall in the value of its shares.
Board review. The Board formally reviews the Company’s objectives and strategies for
achieving them on an annual basis, or more regularly if appropriate.
Shareholder communication. The Board is cognisant of the importance of regular
communication with shareholders. Directors attend meetings with the Company’s
largest shareholders and meet other shareholders at the Annual General Meeting and,
as explained in the Chairman’s Statement, the Company will hold an online shareholder
presentation in advance of the Annual General Meeting this year including the
opportunity for an interactive question and answer session. The Board reviews
shareholder correspondence and investor relations reports and also receives feedback
from the Company’s Stockbroker.
Discount monitoring. The Board, through the Manager, keeps the level of discount under
constant review. The Board is responsible for the Company’s share buy back policy and
is prepared to authorise the use of share buy backs to provide liquidity to the market and
try to limit volatility in the share price and any widening of the discount.
Investment strategies - the
Company adopts inappropriate
investment strategies in pursuit
of its objectives which could
result in investors avoiding the
Company’s shares, leading to
a widening of the discount and
poor investment performance.
Adherence to investment guidelines. The Board sets investment guidelines and
restrictions which the Manager follows, covering matters such as asset allocation,
diversification, gearing, currency exposure and use of derivatives, as well as the
Company’s sustainable and responsible investment criteria. These guidelines are
reviewed regularly and the Manager reports on compliance with them at
Board meetings.
Continued
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Risk Trend Mitigating Action
Diversification. In order to ensure adequate diversification, the Board has set absolute
limits on maximum holdings and exposures in the portfolio at the time of investment,
which are in addition to the limits contained in the Company’s investment policy,
including the following:
· No more than 10% of gross assets to be invested in any single stock; and
· The top five holdings should not account for more than 40% of gross assets.
Investment performance - the
appointment or continuing
appointment of an investment
manager with inadequate
resources, skills or expertise or
which makes poor investment
decisions. This could result in
poor investment performance, a
loss of value for shareholders
and a widening discount.
Monitoring of performance. The Board meets the Investment Manager on a regular
basis and keeps under close review (inter alia) its resources and adherence to
investment processes. The Board also keeps under review the adequacy of risk controls
and investment performance.
Management Engagement Committee. A detailed formal appraisal of the Manager is
carried out annually by the Management Engagement Committee.
Sustainable and responsible
investing criteria - failure of the
Company to adhere to its
sustainable and responsible
investment criteria, or non-
compliance with applicable
regulations, could lead to a loss
of investor confidence or
accusations of greenwashing.
Adherence to restrictions. The Board sets restrictions relating to the Company’s
sustainable and responsible investment criteria, which the Investment Manager follows.
These restrictions are reviewed regularly and the Investment Manager reports on
compliance with them at Board meetings.
Awareness of regulations. Through the regulatory risk controls stated below, the Board is
also aware of the relevant ESG regulations impacting the Company.
Income/dividends - the
Company adopts an
unsustainable dividend policy
resulting in cuts to or suspension
of dividends to shareholders,
or one which fails to meet
investor demands.
Revenue forecasting and monitoring. The Manager presents detailed forecasts of income
and expenditure at Board meetings, covering both the current and subsequent financial
years. Dividend income received is compared to forecasts, and variances analysed.
Use of reserves. The Company has built up revenue reserves which are available to
smooth dividend distributions to shareholders should there be a shortfall in revenue
returns. The Company also has the ability to fund dividend distributions from realised
capital reserves.
Financial/market - insufficient
oversight or controls over
financial risks, including market
risk, foreign currency risk,
liquidity risk and credit risk could
result in losses to the Company.
Management controls. The Manager has a range of procedures and controls relating to
the Company’s financial instruments, including a review of investment risk parameters
by its Investment Risk department and a review of credit worthiness of counterparties by
its Counterparty Credit Risk team.
Foreign currency hedging. It is not the Company’s policy to hedge foreign currency
exposure but the Company may, from time to time, partially mitigate it by drawing down
borrowings in foreign currencies.
Board review. As stated above, the Board sets investment guidelines and restrictions
which are reviewed regularly and the Manager reports on compliance with them at
Board meetings.
18 Dunedin Income Growth Investment Trust PLC
Risk Trend Mitigating Action
Further details of the Company’s financial instruments and risk management are
included in note 19 to the financial statements.
Gearing - gearing accentuates
the effect of rises or falls in the
market value of the Company’s
investment portfolio on its NAV.
An inappropriate level of
gearing at a time of falling
values could result in a
significant fall in the value of the
Company’s net assets and
share price. Such a fall in the
value of the Company’s net
assets could result in a breach of
loan covenants and trigger
demands for early repayment
or require investments to be sold
to meet any shortfall. This could
result in further losses.
Gearing restrictions. The Board sets gearing limits within which the Manager can operate.
Monitoring. Both the limits and actual levels of gearing are monitored on an ongoing basis
by the Manager and at regular Board meetings. In the event of a possible impending
covenant breach, appropriate action would be taken to reduce borrowing levels.
Scrutiny of loan agreements. The Board takes advice from the Manager and the
Company’s lawyers before approving details of loan agreements. Care is taken to
ensure that covenants are appropriate and unlikely to be breached.
Limits on derivative exposure. The Board has set limits on derivative exposures and
positions are monitored at regular Board meetings.
Regulatory - changes to, or
failure to comply with, relevant
regulations (including the
Companies Act, The Financial
Services and Markets Act, The
Alternative Investment Fund
Managers Directive, accounting
standards, investment trust
regulations, the Packaged Retail
and Insurance-based
Investment Product Regulations,
the Listing Rules, Disclosure
Guidance and Transparency
Rules and Prospectus Rules)
could result in fines, loss of
reputation, reduced demand for
the Company’s shares and
potentially loss of an
advantageous tax regime.
Board awareness. The Directors have an awareness of the more important regulations
and are provided with information on changes by the Manager and the Association of
Investment Companies. In terms of day to day compliance with regulations, the Board is
reliant on the knowledge and expertise of the Manager. However, where necessary, the
Board engages the service of external advisers. In addition, all Directors are encouraged
to attend relevant training courses.
Management controls. The Manager’s company secretariat and accounting teams use
checklists to aid compliance and these are backed by the Manager’s compliance
monitoring programme and risk based internal audit investigations.
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Operational (including cyber-
crime) - the Company is reliant
on services provided by third
parties (in particular those of the
Manager and the Depositary)
and any control gaps and
failures in their operations could
expose the Company to loss or
damage.
Agreements. Written agreements are in place defining the roles and responsibilities of all
third party service providers.
Internal control systems of the Manager. The Board receives reports on the operation and
efficacy of the Manager’s IT and control systems, including those relating to cyber-crime,
and its internal audit and compliance functions.
Safekeeping of assets. The Depositary is ultimately responsible for the safekeeping of the
Company’s assets and its records are reconciled to those of the Manager on a regular
basis. Through a delegation by the Depositary, the Company’s investments and cash
balances are held in segregated accounts by the Depositary.
Monitoring of other third party service providers. The Manager monitors closely the
control environments and quality of services provided by third parties, including those of
the Depositary. This includes controls relating to cyber-crime and is conducted through
service level agreements, regular meetings and key performance indicators. The
Directors review reports on the Manager’s monitoring of third party service providers on
a periodic basis.
Geo-political – the impact of
current and future geo-political
events could result in losses to
the Company.
Board and Manager awareness. Geo-political events over which the Company has no
control are always a risk. The Investment Manager’s focus on quality companies, the
diversified nature of the portfolio and a managed level of gearing all serve to provide a
degree of protection in times of market volatility.
no change to risk rating during the year
increased risk rating
Geo-political risk is considered to have increased materially during the year as a result of heightened global tensions
and political uncertainties. The trend of other principal risks has not changed during the year.
20 Dunedin Income Growth Investment Trust PLC
Promotional Activities
The Board recognises the importance of promoting the
Company to prospective investors both for improving
liquidity and enhancing the rating of the Company’s
shares. The Board believes one effective way to achieve
this is through subscription to, and participation in, the
promotional programme run by Aberdeen on behalf of a
number of investment trusts under its management. The
Company’s financial contribution to the programme is
matched by the Manager. The Company also supports
the Manager’s investor relations programme which
involves regional roadshows, promotional and public
relations campaigns. The Manager’s promotional and
investor relations teams report to the Board on a quarterly
basis giving analysis of the promotional activities as well as
updates on the shareholder register and any changes in
the make-up of that register.
The purpose of the promotional and investor relations
programmes is both to communicate effectively with
existing and prospective investors and to gain new
shareholders, with the aim of improving liquidity and
enhancing the value and rating of the Company’s shares.
Communicating the long-term attractions of the
Company is key. The promotional programme includes
commissioning independent paid for research on the
Company, most recently from Kepler Trust Intelligence. A
copy of the latest research note is available from the
Literature section of the Company's website.
Social and Human Rights Issues
The Company has no employees as the Board has
delegated the day to day management and
administrative functions to the Manager. There
are therefore no disclosures to be made in respect
of employees.
Modern Slavery Act
Due to the nature of its business, being a company that
does not offer goods and services to customers, the Board
considers that the Company is not within the scope of the
Modern Slavery Act 2015. The Company is therefore not
required to make a slavery and human trafficking
statement. In any event, the Board considers the
Company’s supply chains, dealing predominantly with
professional advisers and service providers in the financial
services industry, to be low risk in relation to this matter.
The UK Stewardship Code and Proxy Voting
The Company supports the UK Stewardship Code, and
seeks to play its role in supporting good stewardship of the
companies in which it invests. Responsibility for actively
monitoring the activities of portfolio companies has been
delegated by the Board to the Manager which has sub-
delegated that authority to the Investment Manager.
Aberdeen Group plc is a signatory to the UK Stewardship
Code which aims to enhance the quality of engagement
by investors with investee companies in order to improve
their socially responsible performance and the long term
investment return to shareholders. While delivery of
stewardship activities has been delegated to the
Manager, the Board acknowledges its role in setting the
tone for the effective delivery of stewardship on the
Company’s behalf.
The Board has also given discretionary powers to the
Manager to exercise voting rights on resolutions proposed
by the investee companies within the Company’s portfolio.
The Manager reports on a quarterly basis on stewardship
(including voting) issues.
The Investment Manager’s approach to stewardship and
engagement and proxy voting is set out on pages 39 to 40.
Global Greenhouse Gas Emissions
The Company has no greenhouse gas emissions to report
from its operations, nor does it have responsibility for any
other emissions producing sources under the Companies
Act 2006 (Strategic Report and Directors’ Reports)
Regulations 2013.
Under Listing Rule 11.4.22(R), the Company, as a
closed ended investment company, is exempt from
complying with the Task Force on Climate-related
Financial Disclosures.
The carbon intensity of the portfolio is shown on page 44.
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Viability Statement
The Board considers that the Company, which does not
have a fixed life, is a long term investment vehicle and, for
the purposes of this statement, has decided that five years
is an appropriate period over which to consider its viability.
The Board considers that this period reflects a balance
between looking out over a long term horizon and the
inherent uncertainties of looking out further than
five years.
Taking into account the Company’s current position and
the potential impact of its principal risks and uncertainties,
the Directors have a reasonable expectation that the
Company will be able to continue in operation and meet
its liabilities as they fall due for a period of five years from
the date of this Report.
In assessing the viability of the Company over the
review period, the Directors have focused upon the
following factors:
· The principal risks and uncertainties detailed on pages
16 to 19 and the steps taken to mitigate these risks.
· The relevance of the Company’s investment objective.
· The Company is invested in readily-realisable listed
securities.
· The level of share buy backs carried out during the year
and subsequent to the year end.
· Although the Company’s stated investment policy
contains a maximum gearing limit of 30% of the net
asset value at the time of draw down, the Board’s policy
is to have a relatively modest level of gearing and the
financial covenants attached to the Company’s
borrowings provide for significant headroom.
· The level of ongoing charges.
· The robustness of the operations of the Company’s third
party service suppliers.
In making its assessment, the Board is also aware that
there are other matters that could have an impact on the
Company’s prospects or viability in the future, including
current and future geo-political events, economic shocks
or significant stock market volatility caused by other
factors, and changes in regulation or investor sentiment.
Outlook
The Board’s view on the general outlook for the Company
can be found in the Chairman’s Statement on page 13
whilst the Investment Manager’s views on the outlook for
the portfolio are included on page 33.
On behalf of the Board
David Barron
Chairman
14 April 2025
22 Dunedin Income Growth Investment Trust PLC
Introduction
Section 172 (1) of the Companies Act 2006 (the “Act”)
requires each Director to act in the way he/she considers,
in good faith, would be most likely to promote the success
of the Company for the benefit of its members as a whole.
The Board is required to describe to the Company’s
shareholders how the Directors have discharged their
duties and responsibilities over the course of the financial
year under that provision of the Act (the “Section 172
Statement”). This statement provides an explanation of
how the Directors have promoted the success of the
Company for the benefit of its members as a whole, taking
into account, among other things, the likely long term
consequences of decisions, the need to foster
relationships with all stakeholders and the impact of the
Company’s operations on the environment.
The Purpose of the Company and Role
of the Board
The purpose of the Company is to act as a vehicle to
provide, over time, financial returns (both income and
capital) to its shareholders. Investment trusts, such as the
Company, are long-term investment vehicles and are
typically externally managed, have no employees, and
are overseen by an independent non-executive board
of directors.
The Board, which throughout the year comprised five
independent non-executive Directors with a broad range
of skills and experience across all major functions that
affect the Company, retains responsibility for taking all
decisions relating to the Company’s investment objective
and policy, gearing, corporate governance and strategy,
and for monitoring the performance of the Company’s
service providers.
The Board’s philosophy is that the Company should
operate in a transparent culture where all parties are
provided with the opportunity to offer practical challenge
and participate in positive debate which is focused on the
aim of achieving the expectations of shareholders and
other stakeholders alike. The Board reviews the culture
and manner in which the Manager and Investment
Manager operate at its meetings and receives regular
reporting and feedback from the other key service
providers. The Board works very closely with the Manager
and Investment Manager in reviewing how stakeholder
issues are handled, ensuring good governance and
responsibility in managing the Company’s affairs, as well
as visibility and openness in how the affairs are conducted.
The Company’s main stakeholders have been identified
as its Shareholders, the Manager (and Investment
Manager), Service Providers, Investee Companies, Debt
Providers and, more broadly, the environment and
community at large.
How the Board Engages with Stakeholders
The Board considers its stakeholders at Board meetings
and receives feedback on the Manager’s interactions
with them.
Further details are included in the table below.
Stakeholder How We Engage
Shareholders Shareholders are key stakeholders and the Board places great importance on communication with
them. The Board welcomes all shareholders’ views and aims to act fairly between all of them. The
Manager and Company’s Stockbroker meet regularly with current and prospective shareholders to
discuss performance and shareholder feedback is discussed by the Directors at Board meetings. In
addition, the Manager meets with analysts who cover the investment trust sector and the Directors
attend meetings with the Company’s largest shareholders and meet other shareholders at the
Annual General Meeting.
The Company subscribes to the Manager’s investor relations programme in order to maintain
communication channels, in particular, with the Company’s institutional shareholder base.
Regular updates are provided to shareholders through the Annual Report, Half Yearly Report,
monthly factsheets, Company announcements, including daily NAV announcements, and the
Company’s website.
The Company’s Annual General Meeting provides a forum, both formal and informal, for
shareholders to meet and discuss issues with the Directors and Manager. The Board encourages as
many shareholders as possible to attend the Company’s Annual General and to provide feedback on
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the Company. In addition to the Annual General Meeting, this year the Company will again hold an
online shareholder presentation at which shareholders will receive updates from the Chairman and
Investment Manager and there will be the opportunity for an interactive question and answer
session. Further details are provided in the Chairman’s Statement.
Manager
(and Investment Manager)
The Investment Manager’s Review on pages 30 to 33 details the key investment decisions taken
during the year. The Investment Manager has continued to manage the Company’s assets in
accordance with the mandate provided by the Company, with the oversight of the Board.
The Board regularly reviews the Company’s performance against its investment objective and the
Board undertakes an annual strategy review meeting to ensure that the Company is positioned well
for the future delivery of its objective for its stakeholders.
The Board receives presentations from the Investment Manager at every Board meeting to help it to
exercise effective oversight of the Investment Manager and the Company’s strategy.
The Board, through the Management Engagement Committee, formally reviews the performance of
the Manager at least annually. More details are provided on page 65.
Service Providers The Board seeks to maintain constructive relationships with the Company’s suppliers either directly
or through the Manager, with regular communications and meetings.
The Management Engagement Committee conducts an annual review of the performance, terms
and conditions of the Company’s main service providers to ensure they are performing in line with
Board expectations, carrying out their responsibilities and providing value for money.
Investee Companies Responsibility for actively monitoring the activities of portfolio companies has been delegated by the
Board to the Manager which has sub-delegated that authority to the Investment Manager.
The Board has also given discretionary powers to the Manager to exercise voting rights on
resolutions proposed by the investee companies within the Company’s portfolio. The Manager
reports on a quarterly basis on stewardship (including voting) issues.
Through engagement and exercising voting rights, the Investment Manager actively works with
companies to improve corporate standards, transparency and accountability. Further details are
provided on pages 39 and 40.
The Manager reports regularly to the Board on investment and engagement activity.
Debt Providers On behalf of the Board, the Manager maintains a positive working relationship with Bank of America,
N.A., London Branch, the provider of the Company’s multi-currency loan facility, and provides regular
updates on business activity and compliance with its loan covenants.
The Manager also provides regular covenant compliance certificates to the holders of the
Company’s £30 million Loan Notes.
Environment and Community The Board and Manager are committed to investing in a sustainable and responsible manner.
Further details are provided in the Investment Policy on page 14.
24 Dunedin Income Growth Investment Trust PLC
Specific Examples of Stakeholder
Consideration During the Year
While the importance of giving due consideration to the
Company’s stakeholders is not a new requirement, and is
considered during every Board decision, the Directors
were particularly mindful of stakeholder considerations
during the following decisions undertaken during the year
ended 31 January 2025. Each of these decisions was
made after taking into account the short and long term
benefits for stakeholders.
Investment Objective and Portfolio (including sustainable
and responsible investing criteria)
The Investment Manager’s Review details the key
investment decisions taken during the year, including
adherence to the Company’s sustainable and responsible
investing criteria.
The overall shape and structure of the investment
portfolio is an important factor in delivering the
Company’s stated investment objective and is reviewed at
every Board meeting, including adherence to the
Company’s sustainable and responsible investing criteria.
During the year, through the work of the Management
Engagement Committee, the Board decided that the
continuing appointment of the Manager is in the best
interests of shareholders.
Sustainable Disclosure Requirements (“SDR”)
During the year, the Board considered the UK’s
Sustainable Disclosure Requirements, including the
Naming and Marketing rules that come into force on 2
December 2024. No changes were made to the
Company’s investment strategy or the investment
process as a result of the new rules.
The Company adopted a sustainable investment
overlay to its investment objective in 2021. The move
reflected an evolution of the investment process and
formalised the Investment Manager’s approach to
quality investing, which incorporates an assessment of
long term environmental, social and governance risks
and opportunities.
In November 2023, as part of its improvements to the
regulation of sustainable products domiciled in the UK, the
FCA confirmed that it would be possible for investment
companies which met certain qualifying criteria to apply
one of four sustainable investment labels as well as a fifth
category of unlabelled but with sustainability
characteristics under its new naming and labelling regime.
During the year, the Manager advised the Board that,
although the Company’s investment objective explicitly
referenced sustainable and responsible investing criteria,
the objective itself did not constitute a sustainability
objective. Therefore, in its current form, the Company’s
investment policy and the broader investment process
would be unlikely to satisfy the FCA’s requirements for a
label without making some changes. As a result, the Board
decided that the Company would not seek to apply a
sustainability label under UK SDR for the time being but
instead would adopt the category ‘unlabelled but with
sustainability characteristics’.
Further details of the Company’s sustainable and
responsible investing criteria are included in the
Sustainable and Responsible Investment Equity Approach
on pages 36 to 40.
Dividend
Following the payment of the final dividend for the year, of
4.60p per Ordinary share, total dividends for the year will
amount to 14.20p per Ordinary share. This represents an
increase of 3.3% compared to the previous year. This will
be the 41st year out of the past 45 that the Company has
grown its dividend, with the distribution maintained in the
other four years, and is in accordance with its policy to
grow total annual dividends in real terms over the
medium term.
Through meetings with shareholders and feedback from
the Manager and the Company’s Stockbroker, the Board
is conscious of the importance that shareholders place on
the level of dividends paid by the Company.
Renewal of Bank Loan
During the year, the Board announced the renewal of the
Company’s £30 million multi-currency revolving credit
facility with Bank of America, N.A., London Branch. The
facility replaced the expiring £30 million multi-currency
revolving credit facility and will expire in August 2027.
Under the terms of the facility, the Company has the
option to increase the level of the commitment from
£30 million to £40 million at any time, subject to the
lender’s consent.
The Board continues to believe that borrowings, in the
form of the Company’s Loan Notes 2045 and the multi-
currency revolving credit facility, are beneficial to long
term net asset value returns and is one of the benefits of
the closed ended investment trust structure.
Promotin
g
the Success of the Company
Continued
Dunedin Income Growth Investment Trust PLC 25
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Share Buy Backs
During the year, the Company bought back 11,223,856
Ordinary shares to be held in treasury, at a cost of £31.5
million, providing a small accretion to the NAV per share
and a degree of liquidity to the market at times when the
discount to the NAV per share had widened in normal
market conditions. It is the view of the Board that this
policy is in the interest of all shareholders.
Shareholder Engagement
During the year, the Board met shareholders at the AGM
which was held in London. The AGM will be held in
Edinburgh this year. The Board receives feedback from
the Stockbroker and the Manager following meetings with
shareholders and the Charman is available to meet with
the Company’s larger shareholders. Shareholder letters
addressed to the Board are shared with all Directors and
responded to directly by the Charman.
To encourage and promote stronger interaction and
engagement with the Company’s shareholders, the Board
will hold an interactive online shareholder presentation
which will be held at 11.00am on Wednesday 7 May 2025.
At the presentation, shareholders will receive updates
from the Chairman and Investment Manager and there
will be the opportunity for an interactive question and
answer session. The online presentation is being held
ahead of the Annual General Meeting to allow
shareholders to submit their proxy votes prior to the
meeting. Details of how to register for the event can be
found in the Chairman’s Statement on page 12.
In addition, the Chairman and the Manager recorded
podcasts during the year which are available on the
Company’s website, providing updates on performance
and the outlook for markets.
The Board considers that it is important to maintain an
ongoing dialogue with shareholders to properly
understand their views and to communicate the actions
of the Board.
Board Succession
As explained in the Chairman’s Statement on page 12 and
the Directors’ Report on page 62, as part of the Board’s
succession planning, and following a search process that
began during the financial year, Arun Kumar Sarwal was
appointed as an independent non-executive Director on
1 February 2025.
David Barron and Jasper Judd joined the Board in
February 2016 and will both retire as Directors at the AGM.
Howard Williams will succeed David Barron as Chairman
of the Board and Arun Kumar Sarwal will be appointed as
Chairman of the Audit Committee in place of Jasper Judd.
It is the Board’s intention to recruit a further Director later
in 2025 to bring the number of Directors back to five.
New Board appointments seek to achieve a good balance
of skills, experience, gender and ethnicity. The Board
believes that shareholders’ interests are best served by
ensuring a smooth and orderly refreshment of the Board
which serves to provide continuity and maintain the
Board’s open and collegiate style.
On behalf of the Board
David Barron
Chairman
14 April 2025
26 Dunedin Income Growth Investment Trust PLC
Performance (total return)
1 year 3 year 5 year
% return % return % return
Total return (Capital return plus net dividends reinvested)
Net asset value
AB
9.0 19.1 28.4
Share price
B
8.4 5.8 19.1
FTSE All-Share Index 17.1 25.5 37.9
Capital return
Net asset value
A
4.4 4.3 3.3
Share price 3.3 (8.1) (5.3)
FTSE All-Share Index 12.9 12.4 16.1
A
Cum-income NAV with debt at fair value.
B
Considered to be an Alternative Performance Measure (see page 122)
Source: Aberdeen, Factset & Morningstar
Comparison of NAV and Share Price Total Return Performance to
FTSE All-Share Index (figures rebased to 100)
Five years to 31 January 2025
90
100
110
120
130
140
31/01/20 31/01/21 31/01/22 31/01/23 31/01/24 31/01/25
Source: Aberdeen & Morningstar
FTSE All-Share total return
NAV total return with debt
at fair value
Share price total return
Performance
Dunedin Income Growth Investment Trust PLC 27
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Comparison of NAV Total Return Performance to FTSE All-Share Index
Total Return for 5 years
(0.3)%
8.1%
2.4%
6.7%
9.0%
28.4%
(7.5)%
18.9%
5.2%
1.9%
17.1%
37.9%
Year to
31/01/21
Year to
31/01/22
Year to
31/01/23
Year to
31/01/24
Year to
31/01/25
5 year total return
(cumulative)
Source: Aberdeen & Morningstar
NAV total return
with debt at fair
value
FTSE All-Share
total return
Analysis of Total Return Performance for the year ended 31 January 2025
%
Gross assets total return
8.3
Total NAV return per share
A
9.0
Total return on FTSE All-Share Index
17.1
Relative performance
–8.1
A
With debt at fair value.
Analysis of Performance for the year Relative to the FTSE All-Share Index
-7.3
-7.0
-0.3
0.3
-0.7
1.0
-0.2
-1.2
-8.1
Listed equities
- Stock selection^
- Sector allocation^
Borrowings & cash
Fees and expenses
Share buybacks
Tax
Technical differences
Total
%
^ Further analysis of performance attributable to listed equities
- Stock selection^
- Sector allocation^
28 Dunedin Income Growth Investment Trust PLC
Ten Year Financial Record
Year ended 31 January 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Total revenue (£’000) 20,359 21,963 22,317 22,263 20,518 18,346 21,518 21,950 22,949 22,550
Per share (p)
Revenue return 12.11 12.55 12.64 12.68 12.08 10.90 12.87 13.02 13.54 13.82
Dividends paid/proposed 11.40 11.70 12.10 12.45 12.70 12.80 12.90 13.10 13.75 14.20
Revenue reserve
A
9.63 10.51 11.16 11.54 10.94 9.07 9.05 8.97 8.99 9.85
Net asset value
B
237.48 270.34 290.57 266.83 312.22 297.64 309.03 302.80 308.98 322.47
Total return
C
(28.94) 43.83 30.83 (11.95) 58.57 (1.81) 23.78 1.92 15.45 23.90
Shareholders’ funds (£’000) 368,041 415,810 442,384 401,731 469,806 448,293 464,579 448,605 445,815 428,528
A
After payment of third interim and final dividends (see note 16 on page 101 for further details).
B
With debt at fair value.
C
Per Statement of Comprehensive Income.
Comparison of Dividend Growth to Inflation
Five years ended 31 January 2025
0.8% 0.8%
1.6%
5.0%
3.3%
11.8%
0.7%
5.4%
10.0%
4.0%
3.0%
25.1%
Year to
31/01/21
Year to
31/01/22
Year to
31/01/23
Year to
31/01/24
Year to
31/01/25
5 years to
31/01/25
Source: Aberdeen, ONS & Factset
DIGIT dividend
growth
Consumer
Price Index
Performance
Continued
Dunedin Income Growth Investment Trust PLC 29
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Dividends per Share – Pence
Year to 31 January
11.40
11.70
12.10
12.45
12.70
12.80
12.90
13.10
13.75
14.20
0
5
10
15
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Dividends per Share
Dividend per share Rate xd date Record date Payment date
Final dividend 2025 4.60p 1 May 2025 2 May 2025 30 May 2025
Third interim dividend 2025 3.20p 6 February 2025 7 February 2025 28 February 2025
Second interim dividend 2025 3.20p 31 October 2024 1 November 2024 29 November 2024
First interim dividend 2025 3.20p 1 August 2024 2 August 2024 30 August 2024
Total dividend 2025 14.20p
Dividend per share Rate xd date Record date Payment date
Final dividend 2024 4.15p 2 May 2024 3 May 2024 31 May 2024
Third interim dividend 2024 3.20p 1 February 2024 2 February 2024 29 February 2024
Second interim dividend 2024 3.20p 2 November 2023 3 November 2023 24 November 2023
First interim dividend 2024 3.20p 3 August 2023 4 August 2023 25 August 2023
Total dividend 2024 13.75p
30 Dunedin Income Growth Investment Trust PLC
Introduction
The UK market rose strongly in the year to 31 January
2025. The Company’s net asset value (“NAV”) total return
for the year of 9.0% compared to a total return of 17.1%
from the benchmark, the FTSE All-Share Index. The UK
equity market ended the year at an all-time high, driven
by performance of the largest UK companies in the
market. The market was supported by declining inflation
and the Bank of England’s (“BoE”) first interest rate cuts in
four years. Concurrently, global markets advanced,
bolstered by favourable economic trends, the resilience of
the US economy, an artificial intelligence (“AI”) investment
cycle, and monetary policy easing by central banks. The
UK economy is anticipated to have achieved modest GDP
growth in 2024, and the Office for Budget Responsibility
revised down its growth forecasts for 2025. At the same
time, rises in tax and spending announced in the new
Labour government’s autumn Budget damaged investor
and business confidence, and threatened to lead to a
slower pace of interest rate cuts in 2025.
“The UK market rose strongly in the
year to 31 January 2025. The
Company’s NAV total return for the
year was 9.0%.”
Although it is disappointing that the Company’s
performance did not keep pace with the strong market
performance, this outcome is consistent with our
defensive and quality-focused investment strategy. Our
emphasis on high-quality companies and investments
that can deliver both income and capital growth, while
adhering to the Company's sustainable and responsible
investing principles, remains unchanged.
The Company offers a distinctive approach within the UK
Equity Income Investment Trust sector, designed to
generate superior long-term returns. The high conviction
portfolio, at the year end comprising 33 holdings with a
strong focus on quality, is highly differentiated from other
UK Equity Income investment trusts. The Company
maintains a differentiated positioning relative to its peers
and benchmark, with an overweight allocation to the UK
mid and small cap companies (at 21% of NAV) and an
allocation to European companies (at 22%). Notably, the
Company remains the only equity income investment
trust with a formal sustainability approach. This year, the
Company updated its policy and consumer facing
documentation to meet the UK Sustainable Disclosure
Regulations, recognising the sustainability characteristics
of the portfolio.
Performance
While the absolute NAV total return of the Company in the
year was a robust 9.0% , this represented an
underperformance of 8.1% against the benchmark index.
There were three main drivers of this. First, our positioning
in the Financials sector to which around half of the
underperformance can be attributed. Secondly the
Company’s stylistic focus on high-quality companies and
its overweight exposure to more domestically orientated
mid and small caps. Thirdly, a small number of companies
that experienced more challenging trading conditions
during the year.
With regards to the Financials sector, the Company has
historically run a large underweight position in the banking
sector, given our focus on high quality businesses and that
sector’s significant economic sensitivity, exposure to
political and regulatory oversight, earnings heavily linked
to the unpredictable interest rate cycle, and variability in
shareholder distributions, with a poor long-term track
record of maintaining and growing dividends. Over the
past few years, we have seen a more supportive
environment for banks with a recovery from Covid lows,
rising interest rates supporting net interest income growth,
low levels of provisions and a more settled regulatory
environment which, alongside modest valuations, has
driven strong share price returns. Choosing not to own the
likes of HSBC, Standard Chartered, Lloyds, Barclays and,
for much of the year, NatWest has proven to be a missed
opportunity and accounted for most of the headwind
from the sector.
Within financials we have tended to focus instead on high
yielding stocks where we have greater confidence in the
maintenance and growth of dividends or on lower yielding
businesses where we see long-term structural growth
opportunities. That has led us to hold M&G and Chesnara
where we have high confidence in the maintenance of
very generous yields and steady longer-term growth.
While both companies have their complexities, their
business models are subject to significantly less variability
than traditional banks and this is evidenced by neither
company having cut its dividend during its life as a listed
business. Alongside this, we hold positions in lower yielding
but faster growing companies such as Intermediate
Capital, Hiscox and London Stock Exchange where we see
very attractive return potential for private markets,
specialist insurance and financial data and services
respectively. Over the long-term, those companies have
Investment Mana
g
er’s Review
Dunedin Income Growth Investment Trust PLC 31
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
performed very well and demonstrated the ability to grow
shareholder distributions at attractive rates of return.
Alongside the lack of exposure to banks, one other holding
that has proven more challenging within the Financials
sector has been Asian-focussed life assurer and asset
manager Prudential. A combination of regulatory changes
in a number of its end markets, weaker economic
performance and some internal missteps have seen its
rate of growth decline. It has also suffered from
association with large exposures to Hong Kong and China
where it has been treated as a proxy for those expressing
caution on those end markets. Prudential, however,
remains exposed to end markets with very low levels of
insurance penetration, large unmet need for personal
provision in the absence of state support, strong market
share positions and helpful demographic trends. While
timing is never certain, we do see substantial potential
upside for those prepared to be patient.
“Although it is disappointing that the
Company’s performance did not keep
pace with the strong market
performance, this outcome is
consistent with our defensive and
quality-focused investment strategy.”
The second element that held back performance during
the year was our stylistic focus on high-quality companies
and overweighting the mid-cap part of the market. This
was very much a year where companies with low starting
valuations were in vogue, materially outperforming those
with strong quality characteristics. The Company’s
overweight position to UK mid and small cap companies
detracted, with the FTSE 100 Index outperforming the mid
cap focused FTSE 250 Index by 5.2% over the year, with
domestically exposed companies particularly overlooked
in the second half of the year as concerns grew over the
state of UK economy and capital focussed on the larger
part of the market. We believe strongly that over, the long-
term, an emphasis on high quality companies will deliver
good returns for the Company with both greater
resilience and faster rates of earnings and dividend
growth. Likewise, we continue to see numerous
compelling opportunities to invest in UK mid cap
companies, where our research capabilities can give us
an edge in what are often overlooked corners of the
market - we consider that the portfolio has a number of
stocks with substantial potential upside.
Finally, there were a small number of companies that
detracted from performance in the year. Edenred, a
global services and payments business, faced several
headwinds, including regulatory changes in Italy, declining
Eurozone interest rates and slower revenue growth as
inflation benefits wane. However, despite this, Edenred
delivered solid results in 2024, has successfully navigated
similar regulatory pressures in other markets and
continues to deliver strong profit and dividend growth,
leveraging its valuable proposition and extensive portfolio
reach. Now trading at a very modest valuation, we expect
trading to steadily improve through the year and for the
company to rebuild confidence with investors. As was the
case to a degree last year, niche lender Close Brothers
continued to struggle in the face of regulatory pressures
on its car finance business and the potential costs of
compensation and remediation. We had maintained the
holding, looking for a potential recovery, but the prospects
of a rapid resolution to the regulatory overhang receded
and the negative impact on the underlying business
continued to develop, leading us to exit the holding in the
second half of the year. Not holding aerospace engineer
Rolls Royce also proved to be a drag as the company
delivered cash generation ahead of expectations driven
by a robust civil aerospace cycle and recovered from a
number of years of tough market conditions and self-
inflicted challenges. Our primary rationale for not holding
stems from a lack of dividend, with the company not
having paid a distribution since 2020.
While our focus is quite rightly on what has been
challenging during the year. It is important to emphasise
that the headwinds to performance primarily stemmed
from companies we didn’t own, during a year where the
market return of 17% was relatively high in a historic
context. Encouragingly, we saw a number of the holdings
deliver strong returns in the year. Notably Morgan Sindall
published consistently excellent results, as customers
looked to upgrade office space. This substantial profit
growth and strong market position led to a significant
increase in dividend payouts and consequently the share
price. Games Workshop, a leading hobbyist retailer,
demonstrated resilience in the face of cautious consumer
spending, which has challenged many consumer facing
businesses. The company's strategic partnership with
Amazon, finalised in December, will adapt the
Warhammer universe into films and television series,
promising profitable growth opportunities in the coming
years and, alongside the digitalisation of its brand, there
remains a long runway of future growth potential. It has
32 Dunedin Income Growth Investment Trust PLC
also significantly increased its dividend payments back to
investors. As previously mentioned, Intermediate Capital
Group benefitted from strong fund raising and continued
appetite for private market assets, while London Stock
Exchange continued to deliver solid growth and
increasingly demonstrate the value it has been able to
extract from the Refinitiv acquisition.
Revenue Account
We are pleased with the Company’s income progression
in the year, with the final outcome of 13.82p representing
a 2.1% year on year increase, in line with our expectations
at the start of the year and broadly matching the level of
dividends being distributed by the wider market which,
according to Computershare, increased in 2024 by 2.3%
on a headline basis and declined 0.4% on an underlying
basis (adjusting for foreign exchange movements and
special dividends).
“We are pleased with the Company’s
income progression in the year,
with the final outcome of 13.82p
representing a 2.1% year on
year increase.”
We benefitted from special distributions paid by Volvo and
Softcat, and generally dividends were in line with or ahead
of our expectations, reflecting the solid operational
performance of the Company’s holdings during the period
The one significant dividend cut came from Close
Brothers, but this was already reflected in our expectations
for the year. We continued to generate income from
option writing, which represented 10.6% of total income
for the year (2024: 9.0%).
While the actual level of investment income declined
during the year (see note 3 to the financial statements on
page 93), this needs to be seen in the context of funding
the ongoing share buyback programme which reduced
the share count by nearly 8%. Looking at resulting
earnings per share performance takes into account both
of these elements and we believe is the best way to judge
overall income performance.
Portfolio Activity
We introduced several new companies to the portfolio
over the year. This included Genuit, a leading
manufacturer of piping solutions for water, climate, and
ventilation management. Genuit's strong focus on
sustainability positions it well for long-term structural
growth and potential margin expansion, despite its
cyclical nature. Convatec, specialises in advanced wound
care, ostomy care, continence care, and infusion care.
The company benefits from favourable demographic
trends, including an aging population and an increasing
incidence of chronic conditions. We believe it has the
potential to accelerate revenues given its focus on
product innovation, and enhance its operating margins –
something that is not yet reflected in its valuation. We
invested in Azelis, a Belgian-listed specialty chemical
distributor with a significant presence in the life sciences
sector. Azelis operates a capital-light business model and
boasts a network of application laboratories that provide
technical guidance on product development, supporting
its long-term growth prospects. We also acquired a stake
in Gaztransport & Technigaz (GTT), a French-listed
industrial engineering design firm renowned for its
membrane designs used in LNG carrier ships. GTT's
product leadership allows for premium pricing and
positions it for growth alongside the expanding global LNG
fleet. The company has a net cash balance sheet,
generates high cash conversion rates, and returns excess
liquidity to investors, positioning it well to provide an
attractive and growing dividend stream. Lastly, we
introduced NatWest, the UK retail bank, to better balance
our Financials exposure, having sold Nordea earlier in the
year, and to help support the higher income element of
the portfolio. NatWest is a relatively simple banking
operation, generates robust returns, has an improving
revenue outlook, and offers a well above-market dividend
yield, supported by a strong balance sheet, which gives us
greater confidence in its long-term sustainability.
In line with our strategy to focus on best ideas and
maintain a concentrated portfolio, we exited several
holdings. Nordea was sold following the payment of a
special dividend, as we anticipated a weaker interest rate
outlook in Europe. Croda, a specialty chemical business,
was divested due to disappointing results that eroded our
confidence in its competitive strengths. We also exited
Moonpig and Marshalls after strong share price recoveries,
as market confidence in their growth prospects
rebounded post-Covid. Pets at Home was also sold as we
focused the portfolio on higher quality companies,
reflecting some of the inherent challenges faced by pure
domestic retail franchises amidst substantial cost inflation
Investment Mana
g
er’s Review
Continued
Dunedin Income Growth Investment Trust PLC 33
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
and subdued consumer demand. Finally, we exited Close
Brothers following a challenging year marked by
uncertainty related to potential financial redress owning
to regulatory investigation into historic discretionary
commission payments in the motor finance loan book.
We took profits from stronger performers whose
valuations approached fair value and reinvested in
companies that had lagged but retained compelling
investment cases. For example, we took profits in
Intermediate Capital Group, London Stock Exchange,
Games Workshop and Morgan Sindall. We took advantage
of periods of share price weakness in the year to top up
Genus, Convatec, Mercedes Benz, National Grid, Edenred,
Sirius Real Estate and Novo-Nordisk.
Outlook
Sentiment towards UK and European equity markets has
been influenced by a complex interplay of factors, from
weaker Chinese growth, geopolitical tensions, inflation
concerns, and the threat of tariffs from the United States.
Meanwhile, the UK economy is experiencing anaemic
growth, with the government seeking to stimulate activity
within fiscal constraints. Despite robust household cash
flows and record savings rates, UK consumer confidence
remains low, echoing trends in business surveys. The
outlook is uncertain, with risks stemming from trade
tensions, moderating global growth, the efficiency of AI-
related capital expenditures and valuations. However, this
complex environment, combined with stabilising real
interest rates, should present a favourable backdrop for
stock pickers. We continue to believe that UK equity
income offers attractive characteristics for shareholders,
including potential for real growth in dividends and good
rates of capital growth.
“We remain convinced that high-
quality, sustainable businesses with
resilient income streams give the
Company the potential to perform
over the long term.”
Despite these challenges, the UK market performed
strongly over the last year, driven by positive economic
surprises, Sterling weakness, and low starting valuations.
Despite recent performance, the UK and European
markets, as well as the holdings in the portfolio, trade on
valuations that reflect subdued expectations that could be
exceeded again. Mergers and acquisitions remain a
prominent feature, with numerous UK businesses being
approached by private equity and strategic buyers, with
health care real estate company Assura receiving an
approach from private equity after the year end. The
balance sheets of UK corporates are healthy, with many
UK listed companies actively engaging in share buybacks
and increasing dividends.
Since the year end, President Trump’s implementation of
sweeping tariffs, even though somewhat amended, has
caused significant financial market turbulence. While
acknowledging the risks, we maintain an optimistic
outlook for the portfolio. Our investment style and
positioning have faced headwinds this year, but we
remain convinced that high-quality, sustainable
businesses with resilient income streams give the
Company the potential to perform over the long term,
particularly so in a more challenging global economic
environment. We continue to see compelling investment
opportunities across all sizes of UK companies and are
utilising gearing and overseas allocation to enhance
portfolio diversification and return potential. Our focus
remains on balancing protecting downside risks to capital
while participating in opportunities for upside potential.
Ben Ritchie and Rebecca Maclean,
Aberdeen
14 April 2025
34 Dunedin Income Growth Investment Trust PLC
Investment Philosophy and Style
The Investment Manager believes that building a
concentrated portfolio of high quality companies that
meet its sustainable and responsible investment criteria
will deliver both real income growth and attractive total
returns over the long-term.
The application of sustainable and responsible investing
principles enables the Investment Manager to reduce risks
in the portfolio by identifying and excluding companies
whose business models it considers face significant
threats from Environmental, Social and Governance
(“ESG”) factors. It also enables the Investment Manager to
identify positive opportunities for companies to benefit
from the same trends as well as giving the potential for
engagement to improve companies’ performance and
increase shareholder value.
A focus on high quality companies and sustainable and
responsible investing principles is therefore well aligned
with the generation of resilient and growing dividend
income, and a capital return profile that is both robust in
difficult market conditions and able to participate in
upside opportunities, enhancing risk adjusted returns.
Details of the Investment Manager’s Sustainable and
Responsible Investment Equity Approach are included on
pages 36 to 40.
Investment Process
The investment process has five stages:
1. Idea Generation
The Investment Manager’s teams of investment
analysts generate investment ideas from their
comprehensive coverage of the UK and European
equity markets. This involves them considering the
merits of over 1,000 listed UK and European
companies across the market cap spectrum.
2. Sustainability
Companies with excessive ESG risks are excluded
through a combination of pre-set screens and
quantitative and fundamental analysis. This removes
around a quarter of the companies monitored from
the Investment Manager’s consideration.
3. Quality
Businesses that don’t meet the analysts’ quality criteria
are then filtered out. Only around 20% of companies
will meet this hurdle and the Investment Manager
particularly emphasises allocation to companies that
are considered to be sustainable leaders.
4. Total Returns
Focus is then placed on those companies that the
analysts identify as having the most attractive total
return potential as well as those that have compelling
income generation characteristics.
5. Portfolio Construction
The Investment Manager then builds a concentrated
portfolio that can deliver the income and total return
requirements while matching the style and risk profile
and meeting the sustainable and responsible
investing principles.
Investment Process
Dunedin Income Growth Investment Trust PLC 35
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
A Highly Selective Strategy
Emphasis on sustainability, quality, total return and income
Integration of ESG into the
Investment Process
The Investment Manager draws upon three resources to
assist it with the integration of ESG into the investment
process; there is a team of approximately 60 investment
professionals in the Developed Markets team and 30 in the
sustainability institute (“Central ESG capability”), and two
‘on-desk’ ESG specialists. Each plays an important yet
distinct role in implementation.
While deploying these resources, the ultimate
responsibility for stock selection and portfolio construction
lies with the Company’s portfolio managers.
36 Dunedin Income Growth Investment Trust PLC
The Investment Manager believes that building a
concentrated portfolio of high-quality companies that
meet its sustainable and responsible investment criteria
will deliver both real income growth and attractive total
returns over the long-term. The application of sustainable
and responsible investing principles enables the
Investment Manager to reduce risks in the portfolio by
identifying and excluding companies whose business
models it considers face significant threats from ESG
factors. It also enables the Investment Manager to identify
positive opportunities for companies to benefit from the
same trends as well as giving the potential for
engagement to improve companies’ performance and
increase shareholder value. To deliver this, the Sustainable
and Responsible Investment Equity Approach utilises
negative exclusions, qualitative analytical assessment,
proprietary quantitative tools and ongoing corporate
engagement and a voting policy.
Positive Allocation
The Investment Manager will classify the sustainability
characteristics of investments as Sustainable Leaders,
Solutions Providers and Transition companies:
(a) Leaders are companies with the best-in-class ESG
credentials and demonstrate ESG leadership.
(b) Solutions Providers have products and services which
address global environmental and societal
challenges.
(c) Transition companies are typically companies with
average standards of governance, ESG management
practices and disclosure with potential for change
over time.
The Investment Manager uses qualitative analytical
assessment, proprietary quantitative tools and ongoing
corporate engagement to assess the sustainability
characteristics of companies.
Sustainable and Responsible Investment
Equity Approach
Dunedin Income Growth Investment Trust PLC 37
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
ESG House Score
Using its proprietary ESG House Score, the Investment
Manager seeks to focus investments in companies with
good governance practices and sustainable operations.
The ESG House Score is an analytical tool developed by
the Investment Manager’s Investments Sustainability
Group in collaboration with the Quantitative Investment
Team. The score (1-100) is calculated by combining a
variety of data inputs within a proprietary framework,
combining its underlying Governance and
Operational scores:
· The operational score assesses how well companies
address their adverse environmental impacts and
promote societal welfare.
· The governance score assesses the corporate
governance structure and the quality and behaviour of
an investee company’s leadership and management.
38 Dunedin Income Growth Investment Trust PLC
ESG Q Score
Within the Investment Manager’s equity investment
process, every company it invests in is given a proprietary
overall Quality rating and a component of this is the ESG
Quality rating. The Investment Manager analyses the
foundations of each business to ensure proper context for
its investments. This includes assessment of a company’s
business model, the industry it operates in and its financial
strength. The Investment Manager will consider the quality
of a company’s management team and analyse ESG
opportunities and risks impacting the business and
appraise how well these are managed. The Investment
Manager assigns a proprietary rating (1 indicates best in
class and 5 indicates laggard) to articulate the quality
attributes of each company. Inputs that inform the ESG Q
Score include qualitative and quantitative assessment of
the key ESG factors facing a company, the MSCI score,
the Investment Manager’s ESG House Score and
ongoing engagement.
Companies eligible for inclusion in the Company’s portfolio
must have an ESG Quality rating of 3 or better.
Revenue Alignment
To identify Solution companies, the Investment Manager
will assess the revenues or investments derived from a
company’s products or services that contribute to the UN
Sustainable Development Goals (“SDGs”).
Engagement
Rather than taking a purely best-in-class approach, the
Investment Manager also invests in companies that are
taking real steps to improve their ESG performance.
Transition companies typically have ESG potential that is
being overlooked by the market and the Investment
Manager supports these companies through active
engagement. Opportunities for improvement are
identified by the team of investment analysts in
conjunction with the Investment Manager’s on-desk ESG
analysts and central ESG team.
Sustainable and Responsible Investment
Equity Approach
Continued
Dunedin Income Growth Investment Trust PLC 39
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Negative Exclusions
The Company will not invest in companies with an ESG
House Score in the bottom 10% of the investment universe.
The Company will not invest in companies that are
deemed below average on the quality of their
management of ESG risks, as measured by the
Investment Managers’ ESG Quality Score.
In addition, the Investment Manager applies the following
exclusions to the portfolio and will not invest in:
· companies that have failed to uphold one or more
principles of the UN Global Compact or that are state
owned enterprises in countries subject to international
sanctions that materially violate universal basic
principles;
· companies that derive a revenue contribution of 10% or
more from tobacco or are tobacco manufacturers;
· controversial weapons including cluster munitions, anti-
personnel landmines, nuclear weapons, chemical and
biological weapons, depleted uranium ammunition and
blinding lasers;
· companies that have a revenue contribution of 10% or
more from the manufacture or sale of conventional
weapons or weapons support systems;
· companies that have any revenue contribution from
thermal coal extraction;
· companies that have any revenue contribution of 10%
or more from unconventional oil and gas or are investing
in new unconventional extraction capacity in their own
operations;
· companies that are primarily involved in conventional oil
and gas extraction and do not have significant revenue
contribution from natural gas or renewable alternatives;
· companies that have a revenue contribution of 10% or
more from electricity generation with a carbon
emissions intensity inconsistent with the Paris
Agreement, 2 degrees scenario; and
· companies that are directly investing in new thermal
coal or nuclear electricity generation capacity in their
own operations.
Stewardship and Engagement
Engagement with investee companies on ESG risks and
opportunities is a fundamental part of the Investment
Manager’s investment process and stewardship activities.
The discussions cover a wide range of topics, including, but
not limited to: strategic, operational, ESG issues and
considering the long-term drivers of value. It is a process
through which the Investment Manager can discuss how
an investee company identifies, prioritises and mitigates its
key risks and optimises outcomes from its most significant
opportunities. It also provides the opportunity for the
Investment Manager to discuss any areas of concern,
share best practice and drive positive change within the
business. The Investment Manager believes that effective
engagement presents a significant opportunity to add
shareholder value over time.
The engagement process is based on four types of
engagements:
· Review: part of ongoing due diligence and frequent
interactions led by the analyst responsible for oversight
of the investment.
· Respond: reacting to an event that may impact a single
investment or a selection of similar investments.
· Enhance: designed to seek change that, in the
Investment Manager’s view, would enhance the value of
the investment.
· Thematic: resulting from focus on a particular ESG
theme, such as climate change, diversity and inclusion
or modern slavery.
Engagement efforts will be tracked in order to assess
engagement progress against milestones. To do this the
Investment Manager has defined the following ‘lifecycle’
steps for engagements:
· Identify: identify specific concerns or issues to be raised
with those investee companies.
· Acknowledge: the concern is acknowledged by those
investee companies.
· Plan: there is a credible plan to address our concerns.
· Execute: the plan is being executed to address
concerns.
· Close: the plan has been successfully executed and
concerns have been addressed.
40 Dunedin Income Growth Investment Trust PLC
Proxy Voting
Proxy voting is an integral part of an active stewardship
approach, and the Investment Manager seeks to exercise
voting rights in a manner in line with best interests of
shareholders. The Investment Manager believes that
voting is a vital mechanism for holding boards and
management teams to account and is an important tool
for escalation and shareholder action. Vote instructions
are decided by analysts in regional and ESG investment
teams. The Investment Manager subscribes to proxy
research providers IVIS and ISS and uses their research to
support proprietary analysis rather than automatically
following recommendations of any third party. The
Investment Manager’s decisions will reflect its knowledge
of companies, and insights gained through engagement.
The involvement of portfolio managers in voting decisions
allows the Investment Manager to ensure proxy voting
remains an integral part of the investment process.
Divestment Approach
Divestment from companies is required if:
· they breach any of the negative screens;
· they have an Aberdeen ESG Quality rating of 4 or 5; or
· they have an Aberdeen ESG House Score in the bottom
10% of the investment universe.
Should the review of a security result in it being deemed
non-compliant, the intention would be to exit as soon as is
practicably possible, but generally never longer than three
months, allowing for market conditions.
Portfolio Carbon Commitment
The Company also commits to having a carbon intensity
(Scope 1 & 2) of less than 80% of the FTSE All-Share
Index, which constrains investment in high carbon
emitting companies.
Sustainable and Responsible Investment
Equity Approach
Continued
Dunedin Income Growth Investment Trust PLC 41
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
This section of the Annual Report highlights some of the sustainable and responsible investment outcomes
within the portfolio.
Positive Allocation
The Investment Manager classifies the sustainability characteristics of investments as Sustainable Leaders, Solutions
Providers and Transition companies:
(a) Leaders are companies with the best-in-class ESG credentials and demonstrate ESG leadership.
(b) Solutions Providers have products and services which address global environmental and societal challenges.
(c) Transition companies are typically companies with average standards of governance, ESG management practices
and disclosure with potential for change over time.
The Investment Manager uses qualitative analytical assessment, proprietary quantitative tools and ongoing corporate
engagement to assess the sustainability characteristics of companies.
The majority of the Company’s portfolio is invested into Leaders and Solutions Providers.
Split of Sustainable Leaders, Solutions Providers and Transition Companies
24%
46%
30%
Leaders Solutions Transition
Sustainable and Responsible Investin
g
Outcomes
42 Dunedin Income Growth Investment Trust PLC
Engagement
During the year ended 31 January 2025, the Investment Manager held 76 separate meetings with portfolio companies
where ESG topics were raised. Seven of these were dedicated priority engagement meetings, addressing areas of
material improvement. By topic, Corporate Governance and Labour Management were the areas most discussed.
% of Meetings where Topic Discussed
Engagement Case Studies
Unilever (Leader)
Unilever has faced significant sustainability challenges, including increased regulation on deforestation, human rights,
and plastics usage, as well as disruptions to natural raw material sourcing due to climate change. This year, Unilever
revised its sustainability targets, prompting both criticism and reflection on its sustainability leadership. The Investment
Manager has engaged with Unilever alongside other UK Consumer Staples peers to better understand its approach to
sustainability and the ESG risks and opportunities facing the sector.
Unilever's decision to scale back several ambitious targets was made to focus resources on the most impactful
sustainability priorities. The company reduced its goal to reduce virgin plastics usage from 50% by 2025 to a 30%
reduction by 2026. The company has also dropped pledges related to food sourcing, food waste and spending on
diverse businesses. This strategic shift aims to accelerate delivery with greater impact by integrating sustainability into
business performance.
Despite criticism, Unilever remains committed to ambitious climate goals, including a net-zero emissions target across its
value chain by 2039. The company's updated Climate Transition Action Plan outlines specific strategies to reduce
emissions, such as a 42% absolute reduction in Scope 3 energy and industrial greenhouse gas emissions by 2030.
Unilever's efforts to enhance supply chain resilience and advocate for systemic change through policy engagement are
crucial components of its sustainability leadership.
Overall, the Investment Manager’s engagement with Unilever and its peers highlighted the potential financial costs
associated with new regulatory and societal demands. The insights gained from these discussions underscore how
companies in the sector are exposed to different critical inputs such as palm oil and water. Unilever, facing some of the
greatest risks due to its high dependency on natural raw materials, remains an ambitious player from a sustainability
perspective and is committed to its sustainability investments.
Sustainable and Responsible Investin
g
Outcomes
Continued
Dunedin Income Growth Investment Trust PLC 43
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Convatec (Solutions)
Convatec, a global medical products and technologies company, specialises in solutions for managing chronic
conditions. Its product portfolio which includes Advanced Wound Care, Ostomy Care, Continence Care, and Infusion
Care, support quality healthcare for patients worldwide. Advanced Wound Care (accounting for 32% of sales) provides
dressings for acute and chronic wounds; Ostomy Care (28% of sales) offers devices and services for patients with bowel
and bladder cancer, as well as Crohn’s disease; Continence Care (22% of sales) supports people with urinary
continence issues; and Infusion Care (18% of sales), supplies infusion sets for diabetes and Parkinson’s
disease management.
The Investment Manager assessed Convatec’s ESG progress and met with the company to discuss the key themes this
year. Its engagement highlighted improvements in customer complaints, staff turnover, environmental metrics, and
safety performance over recent years. These advancements reflect Convatec's commitment to enhancing operational
and sustainability practices and align to its turnaround progress. The company acknowledges areas for improvement,
particularly in product quality and R&D processes. Despite these challenges, Convatec remains committed to innovation
and improving patient outcomes, as evidenced by its recent clinical study results for ConvaNiox for treating hard to
heal wounds.
The company's products are designed to address the complex needs of chronic care patients, enhancing their quality of
life. As Convatec continues to evolve, the Investment Manager will monitor its progress in addressing ESG challenges and
maintaining its position as a leader in the medical technologies sector.
Proxy Voting
The table below provides a summary of poxy voting undertaken during the year by the Investment Manager in relation
to the portfolio holdings.
Metric Value
Number of meetings held 36
Number of meetings with at least one vote against management 8
Percentage of meetings with at least one vote against management 22.2%
Total number of voteable proposals 754
Number of votes against management 17
Votes against management as a percentage of voteable proposals 2.2%
Number of votes against ISS Policy 19
Votes against ISS Policy as a percentage of voteable proposals 2.5%
Number of votes against policy 13
Votes against policy as a percentage of voteable proposals 1.7%
The Investment Manager voted against management recommendations in 22.2% of the general meetings held by
portfolio companies during the year, which it thinks is the most useful metric for measuring the level of its constructive
engagement. It is important to bear in mind that the Investment Manager typically begins from a position of support for
the select group of companies it invests in.
There is an extensive ongoing programme which allows the Investment Manager to actively engage with investee
companies throughout the year beyond the voting season.
44 Dunedin Income Growth Investment Trust PLC
Carbon Intensity
The Company commits to having a carbon intensity (Scope 1 & 2) of less than 80% of the FTSE All-Share Index, which
constrains investment in high carbon emitting companies.
Carbon intensity reflects carbon emissions relative to a specific activity. For company carbon footprinting, the carbon
intensity reflects the CO2e emissions divided by revenue in million US$. For countries, the standard intensity metric is the
ratio of greenhouse gas emissions produced to gross domestic product. Carbon emissions is used as a generic term for
the main greenhouse gas (“GHG”) emissions (carbon dioxide, methane, nitrous oxide, F-gases).
Weighted Average Carbon Intensity (WACI)
In tonnes of CO2e / million USD revenue
Scope 1 & 2 Scope 1 Scope 2 Scope 3
Upstream
Scope 3
Downstream
Portfolio 43.14 30.39 12.75 143.68 887.82
Benchmark 84.08 61.64 22.44 162.61 1,350.27
Relative carbon intensity % 51.31 49.30 56.82 88.36 65.75
Total Emissions
(In tonnes of CO2e)
Scope 1 & 2 Scope 1 Scope 2 Scope 3
Upstream
Scope 3
Downstream
Portfolio 19,935 16,058 3,877 56,664 364,689
Benchmark 53,748 43,475 10,273 83,573 614,364
Relative carbon intensity % 37.09 36.94 37.74 67.80 59.36
Source: Trucost
The Company’s portfolio therefore currently has a Carbon Intensity on Scope 1 and 2 emissions of 51% of the
benchmark. On a total emissions basis, the portfolio sits at 37% of the benchmark on Scope 1 and 2 emissions.
Carbon Emissions – Scope 1
Greenhouse gas emissions generated from burning fossil fuels and production processes which are owned or controlled
by a company.
Carbon Emissions – Scope 2
Greenhouse gas emissions generated from the consumption of purchased electricity, heat or steam by a company.
Carbon Emissions – Scope 3
Other upstream and downstream indirect greenhouse gas emissions such as the extraction and production of
purchased materials and fuels, transport-related activities in vehicles not owned or controlled by a reporting entity, and
electricity related activities (egT&D losses) not covered in Scope 2.
Sustainable and Responsible Investin
g
Outcomes
Continued
Dunedin Income Growth Investment Trust PLC 45
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Aberdeen Group
The Company’s Investment Manager is abrdn
Investments Limited which is a wholly-owned subsidiary of
Aberdeen Group plc. The Aberdeen Group’s assets under
management and administration were £511 billion as at
31 December 2024, managed for a range of clients
including 14 UK-listed closed end investment companies.
The Investment Team Senior Managers
Ben Ritchie
Head of Developed Markets Equities
Ben Ritchie is Head of Developed Markets Equities at
Aberdeen. He originally joined Aberdeen in 2002 as a
graduate trainee and has been managing the Company
since 2012, including as lead manager since 2016. Ben has
a BA (Hons) in Modern History and Politics from Pembroke
College, University of Oxford, and is an alumni of Harvard
Business School. He is a certified CFA Charterholder.
Rebecca Maclean
Investment Director, UK Equities
Rebecca Maclean is an Investment Director in the UK
Equities team at Aberdeen. She has worked in the
responsible investment industry since 2010 and joined
Aberdeen in 2013 as a Responsible Investment Analyst.
She moved to the UK Equities team in 2016. Rebecca
graduated with a BA in Experimental Psychology from
University of Oxford, holds a MA in International Relations
from King’s College London, and is a CFA Charterholder.
Information About the Investment Mana
g
er
46 Dunedin Income Growth Investment Trust PLC
Portfolio
The Investment Manager believes that
building a concentrated portfolio of
high quality companies that meet its
sustainable and responsible
investment criteria will deliver both
real income growth and attractive
total returns over the long-term.
4.0% of the Company’s total assets are invested in
the Beverages sub-sector (2024: 4.6%).
Dunedin Income Growth Investment Trust PLC 47
48 Dunedin Income Growth Investment Trust PLC
As at 31 January 2025
Unilever (Leader)
TotalEnergies (Transition)
Unilever is a global consumer goods
company, with particularly strong
market positions in emerging markets
and operating in a number of product
areas including Beauty, Personal Care,
Home Care and Nutrition.
TotalEnergies is an energy company
producing and marketing fuels, natural
gas and electricity globally.
National Grid (Solutions)
RELX (Solutions)
National Grid owns gas and electricity
transmission and distribution assets in
the UK and United States.
RELX is a global provider of information
and analytics for professionals and
businesses across a number of
industries including scientific, technical,
medical and law.
London Stock Exchange (Leader)
AstraZeneca (Solutions)
London Stock Exchange is a leading
financial information company that
also owns prominent pieces of
market infrastructure.
AstraZeneca is a pharmaceutical
company that focuses on the research,
development and manufacture of
drugs in a range of therapeutic areas.
Diageo (Leader)
Chesnara (Transition)
Diageo is a global leader in spirits and
liquers with a portfolio of world-
renowned brands.
Chesnara is an owner and manager of
primarily closed books of life assurance
assets in the UK, Sweden and Holland.
NatWest (Transition)
Sage (Solutions)
NatWest is a UK-based banking
company providing personal, private
and business banking needs.
Sage is UK-based company, providing
cloud business management solutions,
supporting small and medium sized
businesses globally.
Ten Lar
g
est Investments
Dunedin Income Growth Investment Trust PLC 49
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
At 31 January 2025
Valuation Total Valuation
2025 assets 2024
Company Sector £’000 % £’000
Unilever Personal Care, Drug and Grocery Stores 32,470 6.8 28,205
TotalEnergies Oil, Gas and Coal 29,564 6.2 26,125
National Grid Gas, Water and Multi-utilities 28,807 6.0 17,956
RELX Media 25,008 5.2 23,846
London Stock Exchange Finance and Credit Services 22,874 4.8 23,696
AstraZeneca Pharmaceuticals and Biotechnology 22,179 4.6 32,517
Diageo Beverages 19,205 4.0 22,711
Chesnara Life Insurance 15,599 3.3 15,510
NatWest Banks 15,361 3.3 –
Sage Software and Computer Services 14,624 3.1 12,769
Ten largest investments 225,691 47.3
Genus Pharmaceuticals and Biotechnology 13,180 2.8 6,865
Convatec Medical Equipment and Services 13,086 2.7 –
Prudential Life Insurance 13,060 2.7 13,015
Games Workshop Leisure Goods 12,242 2.6 12,196
Assura Real Estate Investment Trusts 11,880 2.5 10,061
Intermediate Capital Investment Banking and Brokerage Services 11,595 2.4 16,018
M&G Investment Banking and Brokerage Services 11,544 2.4 12,402
Volvo Industrial Transportation 11,375 2.4 11,466
Sirius Real Estate Real Estate Investment Trusts 11,334 2.4 11,433
Hiscox Non-life Insurance 10,555 2.2 10,043
Twenty largest investments 345,542 72.4
Telecom Plus Telecommunications Service Providers 10,303 2.2 8,970
Weir Group Industrial Engineering 10,166 2.1 10,471
Mercedes-Benz Automobiles & Parts 10,154 2.1 9,893
Edenred Industrial Support Services 10,136 2.1 10,040
Softcat Software and Computer Services 9,994 2.1 7,269
Gaztransport & Technigaz Oil, Gas and Coal 9,913 2.1 –
Genuit Construction and Materials 9,889 2.1 –
Azelis Industrial Support Services 9,788 2.1 –
ASML Technology Hardware and Equipment 9,785 2.0 13,067
Taylor Wimpey Household Goods and Home Construction 9,607 2.0 15,075
Thirty largest investments 445,277 93.3
Portfolio
50 Dunedin Income Growth Investment Trust PLC
Portfolio
At 31 January 2025
Valuation Total Valuation
2025 assets 2024
Company Sector £’000 % £’000
Morgan Sindall Construction and Materials 9,541 2.0 11,166
Novo-Nordisk Pharmaceuticals and Biotechnology 9,126 1.9 9,009
Oxford Instruments Electronic and Electrical Equipment 8,708 1.9 9,228
Total investments 472,652 99.1
Net current assets
A
4,535 0.9
Total assets less current liabilities
A
477,187 100.0
A
Excluding bank loan falling due within one year of £18,907,000 (2024 – £13,307,000).
Continued
Dunedin Income Growth Investment Trust PLC 51
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
0% 5% 10% 15% 20% 25% 30%
Financials
Consumer Discretionary
Industrials
Consumer Staples
Health Care
Technology
Utilities
Energy
Real Estate
Basic Materials
Telecommunications
2025
2024
0% 10% 20% 30% 40% 50% 60% 70% 80%
United Kingdom
Europe
2025
2024
Sector and Geo
g
raphical Breakdown
52 Dunedin Income Growth Investment Trust PLC
As at 31 January 2025
FTSE All-Share Portfolio Portfolio
Index weighting weighting weighting
2025 2025 2024
% % %
Energy Oil, Gas and Coal 9.6 8.3 5.3
9.6 8.3 5.3
Basic Materials Chemicals 0.4 – –
Industrial Metals and Mining
5.4 – 1.9
Precious Metals & Mining
0.2 – –
6.0 – 1.9
Industrials Aerospace & Defence 4.1 – –
Construction and Materials 0.4 4.1 4.1
Electronic and Electrical Equipment 1.1 1.8 1.9
General Industrials 1.4
Industrial Engineering 0.6 2.1 2.1
Industrial Support Services 3.3 4.2 2.1
Industrial Transportation 1.2 2.4 2.3
12.1 14.6 12.5
Consumer Discretionary Automobiles & Parts 0.1 2.1 2.0
Consumer Services 1.9 – –
Household Goods and Home Construction 1.0 2.0 3.1
Leisure Goods 0.2 2.6 2.5
Media 4.4 5.2 4.9
Personal Goods 0.2 – –
Retailers 1.5 – 2.9
Travel & Leisure
2.3 – –
11.6 11.9 15.4
Health Care Medical Equipment and Services 0.5 2.7 –
Pharmaceuticals and Biotechnology 10.6 9.3 9.9
11.1 12.0 9.9
Sector Analysis
Dunedin Income Growth Investment Trust PLC 53
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
As at 31 January 2025
FTSE All-Share Portfolio Portfolio
Index weighting weighting weighting
2025 2025 2024
% % %
Consumer Staples Beverages 2.4 4.0 4.6
Food Producers 0.6 – –
Personal Care, Drug and Grocery Stores 7.7 6.8 5.8
Tobacco 3.5 – –
14.2 10.8 10.4
Real Estate Real Estate Investment Trusts 2.3 4.9 4.4
2.3 4.9 4.4
Utilities Electricity 0.9 – 2.8
Gas, Water and Multi-utilities 2.8 6.0 3.7
3.7 6.0 6.5
Financials Banks 11.8 3.3 3.6
Closed End Investments 6.0 – –
Finance and Credit Services 2.6 4.8 4.8
Investment Banking and Brokerage Services 3.5 4.8 5.8
Life Insurance 2.1 6.0 5.8
Non-life Insurance 0.9 2.2 2.1
26.9 21.1 22.1
Technology Software and Computer Services 1.4 5.2 4.1
Technology Hardware and Equipment – 2.1 2.7
1.4 7.3 6.8
Telecommunications Telecommunications Service Providers 1.1 2.2 1.8
1.1 2.2 1.8
Total investments 100.0 99.1 97.0
Net current assets before borrowings
A
– 0.9 3.0
Total assets less current liabilities
A
100.0 100.0
A
Excluding bank loan falling due within one year of £18,907,000 (2024 – £13,307,000).
54 Dunedin Income Growth Investment Trust PLC
RELX (Solutions)
RELX is a multinational information and analytics company
that provides critical decision-making tools to professional
and business customers across various sectors. The
company's offerings include risk prediction and fraud
detection solutions, scientific information supporting
research, legal and regulatory insights for informed legal
decisions, and market-leading events.
RELX has successfully transitioned from its print media
heritage, with digital products now accounting for 83% of
its sales. This shift has been driven by the company's
strategic focus on high-growth analytics and AI-driven
tools, such as Lexis+ AI, which automates tasks such as
drafting and document analysis for legal professionals.
The business model benefits from excellent earnings
visibility due to subscription contracts and proprietary
databases, creating a strong competitive moat. This has
resulted in robust and accelerating revenue growth, driven
by strong demand for its analytics and decision tools.
Through its Scientific, Technical and Medical segment,
RELX plays a crucial role in facilitating scientific progress.
Platforms such as ScienceDirect offer access to over 18
million documents, supporting primary research for
scientists and researchers. Elsevier, a leading academic
publisher within RELX, ensures rigorous peer review
processes to maintain the quality of scientific publications.
This commitment to academic excellence underscores
RELX's position as a key enabler of scientific advancement.
Investment Case Studies
Dunedin Income Growth Investment Trust PLC 55
NatWest (Transition)
NatWest is a major UK retail and commercial bank, serving
over 19 million customers. The business is generating
robust returns, including a 17.5% return on tangible equity
in 2024, supported by higher interest rates and low
impairment rates in the UK. The business has delivered
growth across its three divisions of personal, commercial
and private banking. The company is focused on
simplification and investing in technology to support
customer service and operational efficiency. The
combination of an improving outlook, good visibility of
returns and strong balance sheet supports an attractive
above-market distribution yield.
NatWest has taken significant strides in recent years to
enhance its sustainability credentials. These include
growing its climate and sustainable funding and financing
business, gradual improvements in gender and ethnic
diversity in management, and major work on internal
culture and investment in training for staff. The company
reports detailed analysis of its financed and facilitated
emissions, and has ambitious targets to decarbonise its
lending portfolio. Furthermore, it is putting in place the
foundations, such as sustainable-finance solutions,
including green mortgages, to take advantage of
opportunities from home energy efficiency investments in
the UK, once the policy environment improves.
Games Workshop (Transition)
Games Workshop is a prominent designer, manufacturer,
and distributor of fantasy miniatures, notably under the
Warhammer brand. Despite a challenging consumer
environment, the company has delivered resilient growth
through its retail stores and online channels. Strong
customer loyalty, premium pricing power and a vertically
integrated supply chain, have enabled Games Workshop
to sustain high gross margins.
The company has granted Amazon exclusive rights to
adapt the Warhammer 40,000 universe into films and
television series, creating a new and potentially lucrative
licensing revenue stream. Games Workshop continues to
return surplus cash to shareholders in the form of
dividends while maintaining a strong balance sheet and
investing organically in the business, offering a compelling
and growing income stream.
The Investment Manager views Games Workshop as a
transition business and has been monitoring its progress in
key areas. For example, it is monitoring packaging and
plastics volumes, efforts to enhance the strong human
capital base through greater diversity, and levels of
disclosures and transparency for investors. These initiatives
are crucial for long-term sustainability and growth.
56 Dunedin Income Growth Investment Trust PLC
Governance
Dunedin Income Growth Investment Trust PLC 57
The Company is committed to high
standards of corporate governance and
applies the principles identified in the UK
Corporate Governance Code and the
AIC Code of Corporate Governance.
The Directors, all of whom are non-
executive and independent of the
Manager, supervise the management
of the Company and represent the
interests of shareholders.
58 Dunedin Income Growth Investment Trust PLC
David Barron
Independent Non-Executive Chairman
Experience:
David Barron was Head of Investment Trusts at JP Morgan
Asset Management until 2013, Chief Executive of Miton
Group plc until 2019, and then a non-executive director of
Premier Miton Group plc until July 2023. He was also a
director of The Association of Investment Companies until
2014. He Chairman of Baillie Gifford European Growth
Trust plc and a non-executive director of BlackRock
American Income Trust plc and Fidelity Japan Trust plc.
Length of service:
9 years, appointed a Director on 1 February 2016 and
Chairman on 23 May 2017
Last re-elected to the Board:
23 May 2024
Committee membership:
Management Engagement Committee and Nomination
and Remuneration Committee
Contribution:
The Nomination and Remuneration Committee has
reviewed the contribution of David Barron and has
concluded that he has continued to Chair the Company
expertly, fostering a collaborative spirit between the Board
and Manager whilst ensuring that meetings remain
focused on the key areas of stakeholder relevance. In
addition, he has continued to provide significant
investment trust expertise to the Board. Having served as
a Director for nine years, David Barron will retire from the
Board at the AGM.
Gay Collins
Independent Non-Executive Director
Experience:
Gay Collins has over 35 years of experience in the
financial services sector and has founded and grown
three PR companies, Montfort Communications, Penrose
Financial (which became MHP) and Ludgate
Communications, and has an executive role at Montfort
where she advises financial services companies on
communications. She is also a non-executive director of
the Association of Investment Companies.
Length of service:
3 years, appointed a Director on 1 July 2021
Last re-elected to the Board:
23 May 2024
Committee membership:
Audit Committee, Management Engagement
Committee and Nomination and Remuneration
Committee
Contribution:
The Nomination and Remuneration Committee has
reviewed the contribution of Gay Collins in light of her
proposed re-election at the AGM and has concluded that
she has continued to provide significant value to the Board
through her knowledge of the financial services sector,
and promotional activities in particular, and knowledge of
the investment trust sector.
Board of Directors
Dunedin Income Growth Investment Trust PLC 59
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Jasper Judd
Independent Non-Executive Director and Chairman of the
Audit Committee
Experience:
Jasper Judd worked for Brambles Limited, a listed
Australian multi-national, where he held a number of
senior executive roles including Global Head of Strategy.
He is also a non-executive director of Brown Advisory US
Smaller Companies plc and Schroder Asian Total Return
Investment Company plc. He is a Chartered Accountant.
Length of service:
9 years, appointed a Director on 1 February 2016
Last re-elected to the Board:
23 May 2024
Committee membership:
Audit Committee (Chairman), Management Engagement
Committee and Nomination and Remuneration
Committee
Contribution:
The Nomination and Remuneration Committee has
reviewed the contribution of Jasper Judd and has
concluded that he has continued to chair the Audit
Committee expertly through the year and provide
financial and business insight to the Board and knowledge
of the investment trust sector. Having served as a Director
for nine years, Jasper Judd will retire from the Board at
the AGM.
Christine Montgomery
Independent Non-Executive Director and Chairman of the
Management Engagement Committee
Experience:
Christine Montgomery has over 30 years of investment
management experience, most recently as Head of
Global Equities at AustralianSuper in Melbourne from 2016
until 2019. She previously held roles as a global equities
portfolio manager at Fidelity Worldwide Investments,
Martin Currie and Edinburgh Partners. She is also a non-
executive director of The Scottish American Investment
Company plc.
Length of service:
5 years, appointed a Director on 1 February 2020
Last re-elected to the Board:
23 May 2024
Committee membership:
Audit Committee, Management Engagement Committee
(Chairman) and Nomination and Remuneration
Committee
Contribution:
The Nomination and Remuneration Committee has
reviewed the contribution of Christine Montgomery in light
of her proposed re-election at the AGM and has
concluded that she has continued to provide significant
investment insight to the Board and knowledge of the
investment management sector.
60 Dunedin Income Growth Investment Trust PLC
Arun Kumar Sarwal
Independent Non-Executive Director
Experience:
Arun Kumar Sarwal has broad experience of global
equities and fund management over some 35 years in the
UK, Europe, and Asia. He is a Board Advisor to Tumelo and
a director and Chairman of the Audit Committee of
JPMorgan European Discovery Trust plc. His previous roles
include CEO of Broadridge Fund Communication
Solutions, Senior Vice President of SS&C Technologies,
COO and CFO at Scottish Widows Investment Partnership
and global roles at ABN AMRO and Societe Generale
Investment Limited. He is a Chartered Accountant.
Length of service:
Appointed a Director on 1 February 2025.
Last re-elected to the Board:
n/a – will stand for election at the AGM on 22 May 2025
Committee membership:
Audit Committee, Management Engagement Committee
and Nomination and Remuneration Committee
Howard Williams
Senior Independent Non-Executive Director
and Chairman of the Nomination and
Remuneration Committee
Experience:
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 Strategic Equity
Capital plc and Lifesight Limited and is Chairman of
Schroders Unit Trusts Limited.
Length of service:
7 years, appointed a Director on 1 April 2018 and Senior
Independent Director on 16 July 2020
Last re-elected to the Board:
23 May 2024
Committee membership:
Audit Committee, Management Engagement Committee
and Nomination and Remuneration Committee
(Chairman)
Contribution:
The Nomination and Remuneration Committee has
reviewed the contribution of Howard Williams in light of
his proposed re-election at the AGM and has concluded
that he continues to provide significant investment insight
to the Board and knowledge of the investment
management sector.
Board of Directors
Continued
Dunedin Income Growth Investment Trust PLC 61
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
The Directors present their report and the audited
financial statements for the year ended 31 January 2025.
Results and Dividends
The financial statements for the year ended 31 January
2025 are contained on pages 87 to 111. First, second and
third interim dividends, each of 3.20p per Ordinary share,
were paid on 30 August 2024, 29 November 2024 and 28
February 2025 respectively. The Directors recommend a
final dividend of 4.60p per Ordinary share, payable on 30
May 2025 to shareholders on the register on 2 May 2025.
The ex-dividend date is 1 May 2025. A resolution to
approve the final dividend will be proposed at the Annual
General Meeting.
Principal Activity and Status
The Company is registered as a public limited company
(registered in Scotland No. SC000881) and is an
investment company within the meaning of Section 833 of
the Companies Act 2006. The Company has been
approved by HM Revenue & Customs as an investment
trust subject to it continuing to meet the relevant eligibility
conditions of Section 1158 of the Corporation Tax Act
2010 and the ongoing requirements of Part 2 Chapter 3
Statutory Instrument 2011/2999. The Directors are of the
opinion that the Company has conducted its affairs for the
year ended 31 January 2025 so as to enable it to comply
with the ongoing requirements for investment trust status.
Individual Savings Accounts
The Company has conducted its affairs in such a way as
to satisfy the requirements as a qualifying security for
Individual Savings Accounts. The Directors intend that
the Company will continue to conduct its affairs in
this manner.
Donations to Charity
The Board has previously decided that amounts of
unclaimed dividends greater than 12 years old, which are
returned annually to the Company by the Registrar in
accordance with the Company Articles of Association, will
be donated to charity. Accordingly, the Company made a
donation of £20,000 (2024: £19,000) to the abrdn
Charitable Foundation, which directs funding to charities
around the world.
The abrdn Charitable Foundation is a registered charity.
Its board of directors includes independent representation
from the Aberdeen Group and provides oversight and
guidance for its charitable giving activities.
Capital Structure and Voting Rights
The issued Ordinary share capital at 31 January 2025
consisted of 134,949,033 Ordinary shares of 25p and
18,728,902 Ordinary shares held in treasury.
Each Ordinary share holds one voting right and
shareholders are entitled to vote on all resolutions which
are proposed at general meetings of the Company. The
Ordinary shares, excluding treasury shares, carry a right to
receive dividends. On a winding up or other return of
capital, after meeting the liabilities of the Company, the
surplus assets will be paid to Ordinary shareholders in
proportion to their shareholdings.
There are no restrictions on the transfer of, or voting rights
attaching to, the Ordinary shares in the Company other
than certain restrictions which may from time to time be
imposed by law.
Management Agreement
The Company has appointed abrdn Fund Managers
Limited (“aFML”), a wholly owned subsidiary of Aberdeen
Group plc, as its alternative investment fund manager.
aFML has been appointed to provide investment
management, risk management, administration and
company secretarial services and promotional activities
to the Company. The Company's portfolio is managed by
abrdn Investments Limited (“aIL) by way of a group
delegation agreement in place between aFML and aIL. In
addition, aFML has sub-delegated administrative and
secretarial services to abrdn Holdings Limited and
promotional activities to aIL. Details of the management
fees and fees payable for promotional activities are
shown in notes 4 and 5 to the financial statements.
The management agreement is terminable on not less
than six months’ notice. In the event of termination by the
Company on less than the agreed notice period,
compensation is payable to the Manager in lieu of the
unexpired notice period.
Directors’ Report
62 Dunedin Income Growth Investment Trust PLC
Substantial Interests
Information provided to the Company by major
shareholders pursuant to the FCA’s Disclosure Guidance
and Transparency Rules is published by the Company via
a Regulatory Information Service.
The table below sets out the interests in 3% or more of the
issued share capital of the Company, of which the Board
was aware as at 31 January 2025.
Shareholder
Number of
shares held % held
Interactive Investor 33,310,409 24.7
Hargreaves Lansdown 16,767,409 12.4
AJ Bell 6,531,239 4.8
1607 Capital Partners 6,164,502 4.6
EFG Harris Allday 5,868,678 4.3
HSDL Stockbrokers 4,841,838 3.6
WM Thomson 4,747,208 3.5
Charles Stanley 4,582,393 3.4
Canaccord Genuity Wealth
Management
4,180,790 3.1
There have been no changes notified to the Company
between the year end and the date of approval of
this Report.
Directors
Throughout the year, the Board comprised five non-
executive Directors, each of whom is considered by the
Board to be independent of the Company and the
Manager. David Barron is the Chairman and Howard
Williams is the Senior Independent Director.
Arun Kumar Sarwal was appointed as an independent
non-executive Director on 1 February 2025 and will stand
for election at the Annual General Meeting.
Under the terms of the Company’s Articles of Association,
Directors are subject to election at the first Annual General
Meeting after their appointment and are required to retire
and be subject to re-election at least every three years
thereafter. However, the Board has decided that all
Directors will retire annually. Accordingly, Gay Collins,
Howard Williams and Christine Montgomery will retire at
the Annual General Meeting and, being eligible, offer
themselves for re-election. Having served as Directors for
nine years, David Barron and Jasper Judd will not seek re-
election and will retire from the Board at the conclusion of
the Annual General Meeting.
The Board believes that all the Directors seeking
election/re-election are independent of the Manager and
free from any relationship which could materially interfere
with the exercise of their judgement on issues of strategy,
performance, resources and standards of conduct. The
biographies of each of the Directors are shown on pages
58 to 60, setting out their range of skills and experience as
well as length of service and their contribution to the
Board during the year. The Board believes that each
Director has the requisite high level and range of business,
investment and financial experience which enables the
Board to provide clear and effective leadership and
proper governance of the Company. Following formal
performance evaluations, each Director’s performance
continues to be effective and demonstrates commitment
to the role, and their individual performances contribute to
the long-term sustainable success of the Company. All of
the Directors have demonstrated that they have sufficient
time and commitment to fulfil their directorial roles with
the Company. The Board therefore recommends the
election/re-election of each of the Directors at the Annual
General Meeting.
The Directors attended scheduled Board and Committee
meetings during the year ended 31 January 2025 as
follows (with their eligibility to attend the relevant
meetings in brackets):
Board
Meetings
Audit
Committee
Meetings
Management
Engagement
Committee
Meetings
Nomination
and
Remuneration
Committee
Meetings
David Barron 5 (5) - (-)
A
1 (1) 1 (1)
Gay Collins 5 (5) 2 (2) 1 (1) 1 (1)
Jasper Judd 5 (5) 2 (2) 1 (1) 1 (1)
Christine
Montgomery
5 (5) 2 (2) 1 (1) 1 (1)
Howard Williams 5 (5) 2 (2) 1 (1) 1 (1)
A
David Barron is not a member of the Audit Committee but attends by invitation. He
attended all Audit Committee meetings during the year.
The Board meets more frequently when business
needs require.
Directors’ Report
Continued
Dunedin Income Growth Investment Trust PLC 63
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Board’s Policy on Tenure
In normal circumstances, it is the Board’s expectation that
Directors will not serve beyond the Annual General Meeting
following the ninth anniversary of their appointment.
However, the Board takes the view that independence of
individual Directors is not necessarily compromised by
length of tenure on the Board and that continuity and
experience can add significantly to the Board’s strength.
The Board believes that recommendation for re-election
should be on an individual basis following a rigorous review
which assesses the contribution made by the Director
concerned, but also taking into account the need for
managed succession and diversity.
It is the Board’s policy that the Chairman of the Board will
not serve as a Director beyond the Annual General Meeting
following the ninth anniversary of his or her appointment to
the Board. However, this may be extended in exceptional
circumstances or to facilitate effective succession planning
and the development of a diverse Board. In such a situation
the reasons for the extension will be fully explained to
shareholders and a timetable for the departure of the
Chairman clearly set out.
Board Diversity
The Board recognises the importance of having a range
of skilled, experienced individuals with the right knowledge
represented on the Board in order to allow it to fulfil its
obligations. The Board also recognises the benefits, and is
supportive of, the principle of diversity in its recruitment of
new Board members, including diversity of thought,
location and background. The Board will not display any
bias for age, gender, race, sexual orientation, religion,
ethnic or national origins, or disability in considering the
appointment of its Directors. In view of its size, the Board
will continue to ensure that all appointments are made on
the basis of merit against the specification prepared for
each appointment. In doing so, the Board will take account
of the targets set out in the FCA’s Listing Rules, which are
set out below.
The Board has resolved that the Company’s year end
date is the most appropriate date for disclosure purposes.
Table for reporting on gender as at 31 January 2025
Number of Board
members
Percentage of
the Board
Number of senior positions
on the Board (CEO, CFO,
Chair and SID)
Number in
executive
management
Percentage of
executive
management
Men 3 60%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Women 2 40% (note 1)
Not specified/prefer not to say - -
Table for reporting on ethnic background as at 31 January 2025
Number of Board
members
Percentage of
the Board
Number of senior positions
on the Board (CEO, CFO,
Chair and SID)
Number in
executive
management
Percentage of
executive
management
White British or other White
(including minority-white groups)
5 100%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Minority ethnic - - (note 2)
Not specified/prefer not to say - -
Notes:
1. Meets target that at least 40% of Directors are women as set out in LR 6.6.6R (9)(a)(i).
2. Does not meet target that at least one Director is from a minority ethnic background as set out in LR 6.6.6R (9)(a)(iii) (see paragraph
below).
3. This column is not applicable as the Company is externally managed and does not have any executive staff. Specifically, it does not
have either a CEO or CFO. The Company considers that the roles of Chairman of the Board, Senior Independent Director and
Chairs of the Audit Committee, Nomination & Remuneration Committee and Management Engagement Committee are senior
Board positions and, accordingly, that the Company meets in spirit the requirement that at least one of the senior Board positions is
held by a woman as set out in LR 6.6.6R (9)(a)(ii) .
64 Dunedin Income Growth Investment Trust PLC
As shown in the above table, as at 31 January 2025 the
Company did not meet the target set out in LR 6.6.6R
(9)(a)(iii) that at least one Director is from a minority
ethnic background. Since the year end, Mr Arun Kumar
Sarwal, who identifies as a minority ethnic individual
(Asian/Asian British), has been appointed as a Director
and this target has now been met.
The Roles of the Chairman and Senior
Independent Director
The Chairman is responsible for providing effective
leadership of the Board, demonstrating objective
judgement and promoting a culture of openness and
debate. The Chairman facilitates the effective
contribution and encourages active engagement by each
Director. In conjunction with the Company Secretary, the
Chairman ensures that Directors receive accurate, timely
and clear information to assist them with effective
decision-making. The Chairman acts upon the results of
the Board evaluation process by recognising strengths
and addressing any weaknesses and also ensures that the
Board engages with major shareholders and that all
Directors understand shareholder views.
The Senior Independent Director acts as a sounding board
for the Chairman and acts as an intermediary for other
Directors, when necessary. Working closely with the
Nomination and Remuneration Committee, the Senior
Independent Director takes responsibility for an orderly
succession process for the Chairman, and leads the
annual appraisal of the Chairman’s performance. The
Senior Independent Director is also available to
shareholders to discuss any concerns they may have.
Directors’ and Officers’ Liability Insurance
The Company maintains insurance in respect of Directors’
and Officers’ liabilities in relation to their acts on behalf of
the Company. Each Director is entitled to be indemnified
out of the assets of the Company to the extent permitted
by law against any loss or liability incurred by him or her in
the execution of his or her duties in relation to the affairs of
the Company. These rights are included in the Articles of
Association of the Company.
Management of Conflicts of Interest
The Board has a procedure in place to deal with a
situation where a Director has a conflict of interest. As part
of this process, each Director prepares a list of other
positions held and all other conflict situations that may
need to be authorised either in relation to the Director
concerned or his or her connected persons. The Board
considers each Director’s situation and decides whether
to approve any conflict, taking into consideration what is in
the best interests of the Company and whether the
Director’s ability to act in accordance with his or her wider
duties is affected. Each Director is required to notify the
Company Secretary of any potential, or actual, conflict
situations that will need authorising by the Board.
Authorisations given by the Board are reviewed at each
Board meeting.
No Director has a service contract with the Company
although all Directors are issued with letters of
appointment. There were no contracts during, or at the
end of the year, in which any Director was interested.
The Company has a policy of conducting its business in an
honest and ethical manner. The Company takes a zero-
tolerance approach to bribery and corruption and has
procedures in place that are proportionate to the
Company’s circumstances to prevent them. The Manager
also adopts a group-wide zero-tolerance approach and
has its own detailed policy and procedures in place to
prevent bribery and corruption. Copies of the Manager’s
anti-bribery and corruption policies are available on
its website.
In relation to the corporate offence of failing to prevent tax
evasion, it is the Company’s policy to conduct all business
in an honest and ethical manner. The Company takes a
zero-tolerance approach to facilitation of tax evasion
whether under UK law or under the law of any foreign
country and is committed to acting professionally,
fairly and with integrity in all its business dealings
and relationships.
Directors’ Report
Continued
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Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Corporate Governance
The Company is committed to high standards of
corporate governance. The Board is accountable to the
Company’s shareholders for good governance and this
statement describes how the Company has applied the
principles identified in the UK Corporate Governance
Code as published in July 2018 (the “UK Code”), which is
available on the Financial Reporting Council’s (the “FRC”)
website: frc.org.uk.
The Board has also considered the principles and
provisions of the AIC Code of Corporate Governance as
published in February 2019 (the “AIC Code”). The AIC
Code addresses the principles and provisions set out in the
UK Code, as well as setting out additional provisions on
issues that are of specific relevance to the Company. The
AIC Code is available on the AIC’s website: theaic.co.uk.
The Board considers that reporting against the principles
and provisions of the AIC Code, which has been
endorsed by the FRC, provides more relevant information
to shareholders.
The Board confirms that, during the year, the Company
complied with the principles and provisions of the AIC
Code and the relevant provisions of the UK Code, except
as set out below.
The UK Code includes provisions relating to:
· interaction with the workforce (provisions 2, 5 and 6);
· the role and responsibility of the chief executive
(provisions 9 and 14);
· requirement of the chairman of a remuneration
committee to have served on a remuneration
committee for at least 12 months prior to appointment
(provision 32); and
· executive directors’ remuneration (provisions 33 and 36
to 40).
These provisions are not repeated in the AIC Code and the
Board therefore considers that they are not relevant to
the position of the Company, being an externally
managed investment company. In particular, all of the
Company’s day-to-day management and administrative
functions are outsourced to third parties. As a result, the
Company has no executive directors, employees or
internal operations. The Company has therefore not
reported further in respect of these provisions.
Full details of the Company’s compliance with AIC Code
can be found on its website.
The Board is conscious of the FRC’s updates to the UK
Corporate Governance Code, and the corresponding
updates to the AIC Code, some of which will apply to the
Company’s financial year beginning on 1 February 2025. It
is the Board’s intention that the Company will comply with
all relevant provisions of the new codes.
Board Committees
The Board has appointed a number of Committees, as set
out below. Copies of their terms of reference, which
clearly define the responsibilities and duties of each
Committee, are available on the Company’s website, or
upon request from the Company. The terms of reference
of each of the Committees are reviewed and re-assessed
by the Board for their adequacy on an ongoing basis.
Audit Committee
The Audit Committee’s Report is contained on pages
73 to 75.
Management Engagement Committee
The Management Engagement Committee consists of all
the Directors and is chaired by Christine Montgomery. The
terms and conditions of the Manager’s appointment,
including an evaluation of performance and fees, are
reviewed by the Committee on an annual basis. The
Committee also keeps the resources of the Aberdeen
Group under review, together with its commitment to the
Company and its investment trust business. In addition, the
Committee conducts an annual review of the
performance, terms and conditions of the Company’s
main third party suppliers.
The Board remains satisfied with the capability of the
Aberdeen Group to deliver satisfactory investment
performance, that its investment screening processes are
thorough and robust and that it employs a well-resourced
team of skilled and experienced fund managers. In
addition, the Board is satisfied that the Aberdeen Group
has the secretarial, administrative and promotional skills
required for the effective operation and administration of
the Company. Accordingly, the Board believes that the
continuing appointment of the Manager on the terms
agreed is in the interests of shareholders as a whole.
66 Dunedin Income Growth Investment Trust PLC
Nomination and Remuneration Committee
The Nomination and Remuneration Committee consists of
all the Directors. The Committee is chaired by Howard
Williams who has relevant experience and understanding
of the Company. The Committee reviews the
effectiveness of the Board, succession planning, Board
appointments, appraisals and training, and determines
the Directors’ remuneration policy and level of
remuneration, including for the Chairman. The Committee
also considers the need to appoint an external
remuneration consultant. Further details of the
remuneration policy are provided in the Directors’
Remuneration Report on pages 70 to 72.
During the year, the Committee undertook an annual
appraisal of the Chairman of the Board, individual
Directors and the performance of Committees and the
Board as a whole. This process involved the completion of
questionnaires by each Director and follow-on discussions
between the Chairman and each Director. The appraisal
of the Chairman was undertaken by the Senior
Independent Director. The results of the process were
discussed by the Board following its completion, with
appropriate action points made.
Following the evaluation process, the Board believes that it
continues to operate in an efficient and effective manner
with each Director making a significant contribution to
the Board.
The Nomination and Remuneration Committee will
consider the need for a regular externally evaluated
Board evaluation.
The Committee considers succession planning on at least
an annual basis. Potential new Directors are identified
against the requirements of the Company’s business and
the need to have a balance of skills, experience,
independence, diversity and knowledge of the Company
within the Board.
In relation to the appointment of Arun Kumar Sarwal as a
Director on 1 February 2025, the Board engaged the
services of an independent search consultant,
Sapphire Partners.
Going Concern
The Company’s assets consist mainly of equity shares in
companies listed on the London Stock Exchange and in
most circumstances are considered to be realisable within
a short timescale. The Board has set limits for borrowing
and derivative contract positions and regularly reviews
actual exposures, cash flow projections and compliance
with loan covenants. The Directors have considered the
fact that Company’s investments comprise readily
realisable securities which can be sold to meet funding
requirements if necessary. The Directors have also
performed stress testing on the portfolio and the loan
financial covenants.
Having taken these matters into account, the Directors
believe that the Company has adequate financial
resources to continue in operational existence for the
foreseeable future and for at least twelve months from
the date of this Report. Accordingly, they continue to
adopt the going concern basis of accounting in preparing
the financial statements.
Accountability and Audit
The respective responsibilities of the Directors and the
Auditor in connection with the financial statements
appear on pages 78 and 83.
Each Director confirms that, so far as he or she is aware,
there is no relevant audit information of which the
Company’s Auditor is unaware, and they have taken all
the steps that they could reasonably be expected to have
taken as Directors in order to make themselves aware of
any relevant audit information and to establish that the
Company’s Auditor is aware of that information.
Independent Auditor
The Company’s Auditor, Deloitte LLP, has indicated its
willingness to remain in office. The Board will propose
resolutions at the Annual General Meeting to re-appoint
Deloitte LLP as Auditor for the ensuing year and to
authorise the Directors to determine its remuneration.
Directors’ Report
Continued
Dunedin Income Growth Investment Trust PLC 67
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Relations with Shareholders
The Directors place a great deal of importance on
communications with shareholders. Shareholders and
investors may obtain up to date information on the
Company through its website.
The Board’s policy is to communicate directly with
shareholders and their representative bodies without the
involvement of the management group (including the
Company Secretary or the Manager) in situations where
direct communication is required, and representatives
from the Board and Manager meet with major
shareholders on at least an annual basis in order to gauge
their views.
abrdn Holdings Limited has been appointed Company
Secretary to the Company. Whilst abrdn Holdings Limited
is a wholly owned subsidiary of the Aberdeen Group, there
is a clear separation of roles between the Manager and
Company Secretary with different board compositions
and different reporting lines in place. The Company
Secretary only acts on behalf of the Board, not the
Manager, and there is no filtering of communication.
At each Board meeting the Board receives full details of
any communication from shareholders to which the
Chairman responds personally as appropriate.
Directors attend meetings with the Company’s largest
shareholders and meet other shareholders at the Annual
General Meeting and, as explained in the Chairman’s
Statement, the Company will hold an online shareholder
presentation in advance of the Annual General Meeting
this year, which will include an interactive question and
answer session.
The notice of the Annual General Meeting is sent out at
least 20 working days in advance of the meeting. All
shareholders have the opportunity to put questions to the
Board and Manager at the meeting.
Disclosures in Strategic Report
In accordance with Section 414 C (11) of the Companies
Act 2006, the following information otherwise required to
be set out in the Directors’ Report has been included in the
Strategic Report: risk management objectives and policies
and likely future developments in the business.
Annual General Meeting
The Annual General Meeting will be held at
InterContinental Edinburgh, The George, 19-21 George
Street, Edinburgh EH2 2PB at 12 noon on Thursday
22 May 2025.
The Notice of the Meeting is included on pages 124
to 129. Resolutions including the following business
will be proposed:
Allotment of Shares
Resolution 10 will be proposed as an ordinary resolution to
confer an authority on the Directors, in substitution for any
existing authority, to allot up to 33.33% of the issued
Ordinary share capital of the Company (excluding
treasury shares) as at the date of the passing of the
resolution (up to a maximum aggregate nominal amount
of £10,815,749 based on the number of Ordinary shares in
issue as at the date of this Report) in accordance with
Section 551 of the Companies Act 2006. The authority
conferred by this resolution will expire at the next Annual
General Meeting of the Company or on 31 July 2026,
whichever is earlier (unless previously revoked, varied or
extended by the Company in general meeting).
The Directors consider that the authority proposed to be
granted by Resolution 10 is necessary to retain flexibility,
although they do not at the present time have any
intention of exercising such authority.
68 Dunedin Income Growth Investment Trust PLC
Limited Disapplication of Pre-emption Provisions
Resolution 11 will be proposed as a special resolution and
seeks to give the Directors power to allot Ordinary shares
and to sell Ordinary shares held in treasury (see below) (i)
by way of a rights issue (subject to certain exclusions); (ii)
by way of an open offer or other offer of securities (not
being a rights issue) in favour of existing shareholders in
proportion to their shareholdings (subject to certain
exclusions); and (iii) to persons other than existing
shareholders for cash up to a maximum aggregate
nominal amount representing 5% of the Company’s
issued Ordinary share capital as at the date of the passing
of the resolution (up to an aggregate nominal amount of
£1,622,524 based on the number of Ordinary shares in
issue as at the date of this Report), without first being
required to offer such shares to existing shareholders pro
rata to their existing shareholding.
This power will expire at the conclusion of the next Annual
General Meeting of the Company or on 31 July 2026,
whichever is earlier (unless previously revoked, varied or
extended by the Company in general meeting).
The Company may buy back and hold shares in treasury
and then sell them at a later date for cash rather than
cancelling them. Such sales are required to be on a pre-
emptive, pro rata basis to existing shareholders unless
shareholders agree by special resolution to disapply such
pre-emption rights. Accordingly, in addition to giving the
Directors power to allot unissued Ordinary share capital
on a non pre-emptive basis, Resolution 11 will also give the
Directors power to sell Ordinary shares held in treasury on
a non pre-emptive basis, subject always in both cases to
the limitations noted above. Pursuant to this power,
Ordinary shares would only be issued for cash, and
treasury shares would only be sold for cash, at a price of
not less than the net asset value per share of the existing
Ordinary shares (calculated after the deduction of prior
charges at market value). Treasury shares are explained
in more detail under the heading “Market Purchase of the
Company’s own Ordinary Shares” below.
Market Purchase of the Company’s own Ordinary Shares
Resolution 12 will be proposed as a special resolution to
authorise the Company to make market purchases of its
own Ordinary shares. The Company may do either of the
following things in respect of its own Ordinary shares
which it buys back and does not immediately cancel but,
instead, holds in treasury:
· sell such shares (or any of them) for cash (or its
equivalent); or
· ultimately cancel the shares (or any of them).
Treasury shares may be re-sold quickly and cost
effectively. The Directors therefore intend to continue to
take advantage of this flexibility as they deem
appropriate. Treasury shares also enhance the Directors’
ability to manage the Company’s capital base.
No dividends will be paid on treasury shares and no voting
rights attach to them.
The maximum aggregate number of Ordinary shares
which may be purchased pursuant to the authority is
14.99% of the issued Ordinary share capital of the
Company as at the date of the passing of the resolution
(approximately 19.5 million Ordinary shares as at the date
of this Report). The minimum price which may be paid for
an Ordinary share is 25p (exclusive of expenses). The
maximum price (exclusive of expenses) which may be
paid for the shares is the higher of (a) 5% above the
average of the middle market quotations of the Ordinary
shares (as derived from the Daily Official List of the
London Stock Exchange) for the shares for the five
business days immediately preceding the date of
purchase; and (b) the higher of the price of the last
independent trade and the highest current independent
bid on the main market for the Ordinary shares.
This authority, if conferred, will expire at the conclusion of
the next Annual General Meeting of the Company or on
31 July 2026, whichever is earlier (unless previously
revoked, varied or extended by the Company in general
meeting), and will be exercised only if it would result in an
increase in net asset value per Ordinary share for the
remaining shareholders and if it is in the best interests of
shareholders as a whole.
Directors’ Report
Continued
Dunedin Income Growth Investment Trust PLC 69
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Recommendation
The Directors consider that the resolutions to be proposed
at the Annual General Meeting are in the best interests of
the Company and its shareholders as a whole and
recommend that shareholders vote in favour of the
resolutions as they intend to do in respect of their own
beneficial shareholdings, amounting to 48,708 Ordinary
shares, representing 0.04% of the issued share capital as
at the date of this Report.
By order of the Board
abrdn Holdings Limited
Company Secretary
1 George Street
Edinburgh EH2 2LL
14 April 2025
70 Dunedin Income Growth Investment Trust PLC
This Directors’ Remuneration Report comprises
three parts:
1. a Remuneration Policy which is subject to a binding
shareholder vote every three years (or sooner if varied
during this interval) – most recently voted on at the
Annual General Meeting on 16 May 2023;
2. an Implementation Report which is subject to an
advisory vote on the level of remuneration paid during
the year; and
3. an Annual Statement.
Company law requires the Company’s Auditor to audit
certain of the disclosures provided in the Directors’
Remuneration Report. Where disclosures have been
audited, they are indicated as such. The Auditor’s report is
included on pages 79 to 86.
The Director’s Remuneration Policy and level of Directors’
remuneration are determined by the Nomination and
Remuneration Committee, which is chaired by Howard
Williams and comprises all of the Directors.
The Directors’ Remuneration Policy takes into
consideration the principles of the UK Corporate
Governance Code and the AIC’s recommendations
regarding the application of those principles to
investment companies.
No shareholder views have been sought in setting the
remuneration policy although any comments received
from shareholders are considered.
Remuneration Policy
The Board’s policy is that the remuneration of non-
executive Directors should be sufficient to attract
Directors of the quality required to run the Company
successfully. The remuneration should also reflect the
nature of the Directors’ duties, responsibilities, the value of
their time spent and be fair and comparable to that of
other investment trusts that are similar in size, and have
similar capital structures and similar investment objectives.
Appointment
· The Company only intends to appoint non-executive
Directors.
· All the Directors are non-executive and are appointed
under the terms of letters of appointment.
· Under the terms of the Company’s Articles of
Association, Directors are subject to election at the first
Annual General Meeting after their appointment and
are required to retire and be subject to re-election at
least every three years thereafter. However, the Board
has decided that all Directors will retire annually.
· Any Director newly appointed to the Board will receive
the fee applicable to each of the other Directors at the
time of appointment together with any other fee then
currently payable in respect of a specific role which the
new Director is to undertake for the Company.
· No incentive or introductory fees will be paid to
encourage a person to become a Director.
· Directors are not eligible for bonuses, pension
benefits, share options, long term incentive schemes
or other benefits.
· Directors are entitled to re-imbursement of out-of-
pocket expenses incurred in connection with the
performance of their duties, including travel expenses.
· The Company indemnifies its Directors for all costs,
charges, losses, expenses and liabilities which may be
incurred in the discharge of duties as a Director of
the Company.
Performance, Service Contracts, Compensation
and Loss of Office
· Directors’ remuneration is not subject to any
performance related fee.
· No Director has a service contract.
· No Director was interested in contracts with the
Company during the period or subsequently.
· The terms of appointment provide that a Director may
be removed without notice.
· Compensation will not be due upon leaving office.
· No Director is entitled to any other monetary payment
or any assets of the Company.
Directors’ & Officers’ liability insurance cover is maintained
by the Company on behalf of the Directors.
There were no changes to the Directors’ Remuneration
Policy during the year nor are there any proposals for
changes in the foreseeable future.
Directors’ Remuneration Report
Dunedin Income Growth Investment Trust PLC 71
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Approval of Remuneration Policy and Statement of Voting
at Annual General Meeting
The Remuneration Policy was last approved by
shareholders at the Annual General Meeting on 16 May
2023. 97.8% of proxy votes were in favour of the resolution
and 2.2% were against. There were abstentions in respect
of 712,258 shares.
The Remuneration policy is reviewed by the Board on an
annual basis and it is the Board’s intention that this
Remuneration Policy will apply for the three year period
ending 31 January 2026.
Implementation Report
Limit on Directors’ Fees
Directors’ fees are set within the limits of the Company’s
Articles of Association which limit the aggregate fees
payable to the Board of Directors per annum. The current
limit is £250,000 per annum and may only be increased by
shareholder resolution.
Review of Directors’ Fees
The levels of fees at the year end are set out in the table
below. Fees are reviewed annually and were most
recently changed with effect from 1 February 2024.
31 January
2025
£
31 January
2024
£
Chairman 44,000 42,000
Chairman of Audit Committee 35,500 33,000
Director 29,500 28,000
An additional fee of £2,000 per annum is payable to the
Senior Independent Director.
The Nomination and Remuneration Committee carried
out a review of the level of Directors’ fees during the year.
This included consideration of fees paid by comparable
investment trusts and the sector as a whole, the
responsibilities and time commitment of the Directors,
their skills and experience, and the level of basic fee
required to attract new Directors of sufficient calibre.
Following this review, the Committee concluded that, with
effect from 1 February 2025, fees should be increased to
£45,000 for the Chairman, £36,250 for the Audit
Committee Chairman and £30,000 for the other Directors.
It was also agreed that an additional fee of £2,000 per
annum should continue to be payable to the Senior
Independent Director. There are no further fees to
disclose as the Company has no employees, chief
executive or executive directors.
Company Performance
The graph below shows the share price and NAV total
returns (assuming all dividends are reinvested) to
Ordinary shareholders compared to the total return from
the FTSE All-Share Index for the ten year period to 31
January 2025 (rebased to 100 at 31 January 2015). This
Index was chosen for comparison purposes as it is the
Company’s benchmark used for investment performance
measurement purposes.
80
100
120
140
160
180
200
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Share price total return
NAV total return with debt at market value
FTSE All-Share total return
Spend on Pay
As the Company has no employees, the Directors do not
consider it appropriate to present a table comparing
remuneration paid to employees with distributions to
shareholders. The total fees paid to Directors are
shown below.
Fees Payable (Audited Information)
The Directors who served during the year received the
following emoluments in the form of fees.
Director 2025
£
2024
£
David Barron 44,000 42,000
Gay Collins 29,500 28,000
Jasper Judd 35,500 33,000
Christine Montgomery 29,500 28,000
Howard Williams 31,500 30,000
Total 170,000 161,000
72 Dunedin Income Growth Investment Trust PLC
The above amounts exclude any employers’ national
insurance contributions. All fees are at a fixed rate and
there is no variable remuneration. Fees are pro-rated
where a change takes place during a financial year. There
were no payments to third parties included in the fees
referred to in the table above.
Annual Percentage Change in Directors’ Remuneration
The table below sets out the annual percentage change in
Directors’ fees for the past five years.
Year ended 31 January:
2025 2024 2023 2022 2021
Director % % % % %
David Barron 4.8 5.0 5.3 2.7 5.7
Gay Collins
A
5.4 5.7 7.1 n/a n/a
Jasper Judd 7.6 4.8 6.8 3.5 5.6
Christine
Montgomery
B
5.4 5.7 7.1 3.1 n/a
Howard Williams
C
5.0 5.3 6.5 8.1 7.6
A
Pro-rated from date of appointed on 1 July 2021
B
Appointed on 1 February 2020
C
Appointed Senior Independent Director on 16 July 2020
Directors’ Interests in the Company
The Directors are not required to have a shareholding in
the Company. The Directors (including their connected
persons) at 31 January 2025 and 31 January 2024 had no
interest in the share capital of the Company other than
those interests, all of which are beneficial, shown in the
following table.
31 January
2025
31 January
2024
Ordinary
shares
Ordinary
shares
David Barron 21,977 21,977
Gay Collins 3,032 3,032
Jasper Judd 5,000 5,000
Christine Montgomery 5,000 5,000
Howard Williams 13,556 12,934
Since the year end Howard Williams has acquired an
additional 143 Ordinary shares through a dividend re-
investment plan. There have been no other changes to the
Directors’ interests in the share capital of the Company
since the year end up to the date of approval of
this Report.
Statement of Voting at Annual General Meeting
At the Company’s last Annual General Meeting, held on 23
May 2024, shareholders approved the Directors’
Remuneration Report (excluding the Directors’
Remuneration Policy) in respect of the year ended 31
January 2024. 99.1% of proxy votes were in favour of the
resolution and 0.9% were against. There were abstentions
in respect of 249,889 shares.
A resolution to receive, adopt and approve the Directors’
Remuneration Report (excluding the Directors’
Remuneration Policy) in respect of the year ended
31 January 2025 will be proposed at the Annual
General Meeting.
Annual Statement
On behalf of the Board and in accordance with Part 2 of
Schedule 8 of the Large and Medium-sized Companies
and Groups (Accounts and Reports) (Amendment)
Regulations 2013, it is confirmed that the above
Remuneration Report summarises, as applicable, for the
year to 31 January 2025:
· the major decisions on Directors’ remuneration;
· any substantial changes relating to Directors’
remuneration made during the year; and
· the context in which the changes occurred and
decisions have been taken.
On behalf of the Board
David Barron
Chairman
14 April 2025
Continued
Directors’ Remuneration Report
Dunedin Income Growth Investment Trust PLC 73
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
The Audit Committee presents its Report for the year
ended 31 January 2025.
Committee Composition
Throughout the year the Audit Committee consisted of all
the Directors except for the Chairman of the Board, David
Barron. The Committee is chaired by Jasper Judd who is a
Chartered Accountant and has recent and relevant
financial experience. The Board is satisfied that the
Committee as a whole has competence relevant to the
investment trust sector. Jasper Judd will retire as a
Director at the forthcoming Annual General Meeting. It is
the Board’s intention that Arun Kumar Sarwal will succeed
Jasper Judd as Chairman of the Audit Committee. Arun
Kumar Sarwal is a Chartered Accountant and has recent
and relevant financial experience.
Functions of the Audit Committee
The principal role of the Audit Committee is to assist the
Board in relation to the reporting of financial information,
the review of financial controls and the management of
risk. The Committee has defined terms of reference which
are reviewed and re-assessed for their adequacy on at
least an annual basis. Copies of the terms of reference are
published on the Company’s website and are available
from the Company on request.
The Committee’s main functions are listed below:
· to review and monitor the internal control systems and
risk management systems (including review of non-
financial risks) on which the Company is reliant (the
Directors’ statement on the Company’s internal controls
and risk management is set out below);
· to consider whether there is a need for the Company to
have its own internal audit function;
· to monitor the integrity of the half-yearly and annual
financial statements of the Company by reviewing, and
challenging where necessary, the actions and
judgements of the Manager;
· to review, and report to the Board on, the significant
financial reporting issues and judgements made in
connection with the preparation of the Company’s
financial statements, half-yearly financial reports,
announcements and related formal statements;
· to review the content of the Annual Report and advise
the Board on whether, taken as a whole, it is fair,
balanced and understandable and provides the
information necessary for shareholders to assess the
Company’s position and performance, business model
and strategy;
· to meet with the Auditor to review the proposed audit
programme of work and the findings of the Auditor. The
Committee shall also use this as an opportunity to
assess the effectiveness of the audit process;
· to develop and implement policy on the engagement of
the Auditor to supply non-audit services. Non-audit fees
paid to the Auditor during the year under review
amounted to £nil (2024: £nil). All non-audit services must
be approved in advance by the Audit Committee and
will be reviewed in the light of statutory requirements
and the need to maintain the Auditor’s independence;
· to review a statement from the Aberdeen Group
detailing the arrangements in place within the group
whereby staff may, in confidence, escalate concerns
about possible improprieties in matters of financial
reporting or other matters;
· to make recommendations in relation to the
appointment of the Auditor and to approve the
remuneration and terms of engagement of the
Auditor; and
· to monitor and review the Auditor’s independence,
objectivity, effectiveness, resources and qualification.
Activities During the Year
The Audit Committee met twice during the year when,
amongst other things, it considered the Annual Report and
the Half-Yearly Financial Report in detail. Representatives
of the Aberdeen Group’s internal audit, risk and
compliance departments reported to the Committee at
these meetings on matters such as internal control
systems, risk management and the conduct of the
business in the context of its regulatory environment.
Internal Controls and Risk Management
There is an ongoing process for identifying, evaluating and
managing the Company’s significant business and
operational risks, that has been in place for the year
ended 31 January 2025 and up to the date of approval of
the Annual Report, is regularly reviewed by the Board and
accords with the FRC’s guidance on internal controls.
The Board has overall responsibility for ensuring that there
is a system of internal controls in place and a process for
reviewing its effectiveness. Any system of internal control
is designed to manage rather than eliminate the risk of
failure to achieve business objectives and can only provide
reasonable and not absolute assurance against material
misstatement or loss.
Audit Committee’s Report
74 Dunedin Income Growth Investment Trust PLC
The design, implementation and maintenance of controls
and procedures to safeguard the assets of the Company
and to manage its affairs properly extends to operational
and compliance controls and risk management. The
Board, through the Audit Committee, has prepared its
own risk register which lists potential risks as set out in the
Strategic Report on pages 16 to 19. The Board considers
the potential cause and possible effect of these risks as
well as reviewing the controls in place to mitigate them.
Clear lines of accountability have been established
between the Board and the Manager. The Board receives
regular reports covering key performance and risk
indicators and considers control and compliance issues
brought to its attention. In carrying out its review, the
Board has had regard to the activities of the Aberdeen
Group, including its internal audit and compliance
functions, and the Auditor.
The Board has reviewed the Aberdeen Group’s process
for identifying and evaluating the significant risks faced by
the Company and the policies and procedures by which
these risks are managed. The Board has also reviewed the
effectiveness of the Aberdeen Group’s system of internal
control including its annual internal controls report
prepared in accordance with the International Auditing
and Assurance Standards Board’s International Standard
on Assurances Engagements (“ISAE”) 3402, “Assurance
Reports on Controls at a Service Organization”.
Risks are identified and documented through a risk
management framework by each function within the
Aberdeen Group’s activities. Risk is considered in the
context of the FRC’s guidance on internal controls and
includes financial, regulatory, market, operational and
reputational risk. This helps the internal audit risk
assessment model identify those functions for review. Any
weaknesses identified are reported to the Board and
timetables are agreed for implementing improvements to
systems. The implementation of any remedial action
required is monitored and feedback provided to
the Board.
The key components designed to provide effective
internal control are outlined below:
· written agreements are in place which specifically
define the roles and responsibilities of the Manager and
other third party service providers;
· the Board and Manager have agreed clearly defined
investment criteria, specified levels of authority and
exposure limits. Reports on these issues, including
performance statistics and investment valuations, are
regularly submitted to the Board;
· the Manager prepares forecasts and management
accounts which allow the Board to assess the
Company’s activities and review its performance; the
emphasis is on obtaining the relevant degree of
assurance and not merely reporting by exception;
· as a matter of course the Aberdeen Group’s
compliance department continually reviews the
Company’s operations; and
· at its meeting in March 2025, the Audit Committee
carried out an annual assessment of internal controls for
the year ended 31 January 2025 by considering
documentation from the Aberdeen Group, including the
internal audit and compliance functions and taking
account of events since 31 January 2025.
The Board has considered the need for an internal audit
function. However, the Company has no employees and
the day-to-day management of the Company’s assets
has been delegated to the Aberdeen Group which has its
own compliance and internal control systems. The Board
has therefore decided to place reliance on those systems
and internal audit procedures and has concluded that it is
not necessary for the Company to have its own internal
audit function.
Financial Statements and Significant Issues
During its review of the Company’s financial statements
for the year ended 31 January 2025, the Audit Committee
considered the following significant issues, in particular
those communicated by the Auditor during its planning
and reporting of the year-end audit:
Valuation and Existence of Investments
How the issue was addressed
- The Company’s
investments have been valued in accordance with the
accounting policies, as disclosed in note 2 c) to the
financial statements. All investments are in quoted
securities in active markets, are considered to be liquid
and have been categorised as Level 1 within the FRS102
fair value hierarchy. The portfolio holdings and their pricing
is reviewed and verified by the Manager on a regular basis
and management accounts, including a full portfolio
listing, are prepared for each Board meeting. The
Company uses the services of an independent Depositary
(The Bank of New York Mellon (International) Limited) to
hold the assets of the Company. The Depositary checks
the consistency of its records with those of the Manager
on a monthly basis and reports to the Board on an
annual basis.
Audit Committee’s Report
Continued
Dunedin Income Growth Investment Trust PLC 75
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Recognition of Investment Income
How the issue was addressed
- The recognition of
investment income is undertaken in accordance with the
stated accounting policies. In addition, the Directors
review the Company’s income, revenue forecasts and
dividend comparisons at each Board meeting.
Maintenance of Investment Trust Status
How the issue was addressed
- The Company has been
approved as an investment trust under Sections 1158 and
1159 of the Corporation Tax Act 2010. Ongoing
compliance with the eligibility criteria is monitored on a
regular basis by the Manager and reported at each
Board meeting.
Review of the Auditor
The Audit Committee has reviewed the effectiveness of
the Auditor, Deloitte LLP (“Deloitte”), including:
· Independence - the Auditor discusses with the Audit
Committee, at least annually, the steps it takes to ensure
its independence and objectivity and makes the
Committee aware of any potential issues, explaining all
relevant safeguards.
· Quality of audit work - including the ability to resolve
issues in a timely manner (identified issues are
satisfactorily and promptly resolved), its
communications/presentation of outputs (the
explanation of the audit plan, any deviations from it and
the subsequent audit findings are comprehensive and
comprehensible), and working relationship with
management (the Auditor has a constructive working
relationship with the Manager).
· Quality of people and service - including continuity and
succession plans (the audit team is made up of
sufficient, suitably experienced staff with provision
made for knowledge of the investment trust sector and
rotation of the audit partner).
In reviewing the Auditor, the Committee also took
into account the FRC’s Audit Quality Inspection Report
for Deloitte.
Tenure of the Auditor
Deloitte was initially appointed as the Company’s Auditor
at the Annual General Meeting on 23 May 2017. In
accordance with present professional guidelines the audit
partner is rotated after no more than five years and the
year ended 31 January 2025 is the third year for which the
present audit partner, Michael Caullay, has served.
In compliance with the appropriate regulations, the next
audit tender of the Company is due to take place by 2027.
The Audit Committee is satisfied that Deloitte is
independent and therefore supports the
recommendation to the Board that the re-appointment of
Deloitte be put to shareholders for approval at the Annual
General Meeting.
Jasper Judd
Chairman of the Audit Committee
14 April 2025
76 Dunedin Income Growth Investment Trust PLC
Financial
Statements
The Company’s net asset value
(“NAV”) increased by 9.0% on a total
return basis. The share price total
return was 8.4%.
14.6% of the Company’s total assets are
invested in the Industrials sector (2024: 12.5%).
Dunedin Income Growth Investment Trust PLC 77
78 Dunedin Income Growth Investment Trust PLC
The Directors are responsible for preparing the Annual
Report and the financial statements in accordance with
applicable law and regulations. Company law requires
the Directors to prepare financial statements for each
financial year. Under that law the Directors have elected
to prepare the financial statements in accordance with UK
Accounting Standards, including FRS 102 ‘The Financial
Reporting Standard Applicable in the UK and Republic
of Ireland’.
Under Company law the Directors must not approve the
financial statements unless they are satisfied that they
give a true and fair view of the state of affairs of the
Company and of the profit or loss of the Company for
that period.
In preparing these financial statements, the Directors are
required to:
· select suitable accounting policies and then apply
them consistently;
· make judgments and estimates that are reasonable
and prudent;
· state whether applicable UK Accounting Standards
have been followed, subject to any material departures
disclosed and explained in the financial statements; and
· prepare the financial statements on the going concern
basis unless it is inappropriate to presume that the
Company will continue in business.
The Directors are responsible for keeping proper
accounting records that disclose with reasonable
accuracy at any time the financial position of the
Company and enable them to ensure that the financial
statements comply with the Companies Act 2006. They
have general responsibility for taking such steps as are
reasonably open to them to safeguard the assets of
the Company and to prevent and detect fraud and
other irregularities.
Under applicable law and regulations, the Directors are
also responsible for preparing a Strategic Report,
Directors’ Report, Directors’ Remuneration Report and
Statement of Corporate Governance that comply with
that law and those regulations.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information
included on the Company’s website, but not for the
content of any information included on the website that
has been prepared or issued by third parties. Legislation in
the UK governing the preparation and dissemination of
financial statements may differ from legislation in
other jurisdictions.
The Directors confirm that to the best of their knowledge:
· the financial statements have been prepared in
accordance with applicable accounting standards and
give a true and fair view of the assets, liabilities, financial
position and profit or loss of the Company; and
· the Annual Report taken as a whole, is fair, balanced and
understandable and it provides the information
necessary to assess the Company’s position and
performance, business model and strategy; and
· the Strategic Report and Directors’ Report include a fair
review of the development and performance of the
business and the position of the Company, together with
a description of the principal risks and uncertainties that
the Company faces.
On behalf of the Board
David Barron
Chairman
14 April 2025
Statement of Directors’ Responsibilities
Dunedin Income Growth Investment Trust PLC 79
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Report on the Audit of the Financial Statements
1. Opinion
In our opinion the financial statements of Dunedin Income Growth Investment Trust PLC (the “Company”):
· give a true and fair view of the state of the Company’s affairs as at 31 January 2025 and of its return for the year
then ended;
· have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including
Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ and
the Statement of Recommended Practice issued by the Association of Investment Companies in July 2022 ‘Financial
Statements of Investment Trust Companies and Venture Capital Trusts’; and
· have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements which comprise:
· the Statement of Comprehensive Income;
· the Statement of Financial Position;
· the Statement of Changes in Equity;
· the Statement of Cash Flows; and
· the related notes 1 to 23.
The financial reporting framework that has been applied in their preparation is applicable law, United Kingdom
Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK
and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice)’ (“FRS 102”) and the Statement of
Recommended Practice issued by the Association of Investment Companies in July 2022 ‘Financial Statements of
Investment Trust Companies and Venture Capital Trusts’ (“SORP”).
2. Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the
Financial Statements section of our report.
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the
financial statements in the UK, including the Financial Reporting Council’s (the “FRC’s”) Ethical Standard as applied to
listed public interest entities, and we have fulfilled our other ethical responsibilities in accordance with these
requirements. We confirm that we have not provided any non-audit services prohibited by the FRC’s Ethical Standard to
the Company.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
3. Summary of Our Audit Approach
Key audit matters The key audit matter that we identified in the current year was:
· Valuation and existence of listed investments.
Materiality The materiality that we used in the current year was £4.3 million (2024: £4.5 million) which
was determined on the basis of 1% of net assets as at 31 January 2025.
Scoping Audit work to respond to the risks of material misstatement was performed directly by the
audit engagement team.
Significant changes in our approach There were no significant changes in our approach in the current year.
Independent Auditor’s Report to Dunedin
Income Growth Investment Trust PLC
80 Dunedin Income Growth Investment Trust PLC
4. Conclusions Relating to Going Concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Company’s ability to continue to adopt the going concern basis of
accounting included:
· obtaining an understanding of management’s process for evaluating the Company’s ability to continue as
a going concern;
· reviewing the output of management's assessment of the Company's ability to remain an investment trust;
· assessing the performance and position of the Company, including its cash position, dividend income and
management fee expenses;
· assessing whether the Company has complied with the covenant tests for its borrowings facilities in order to assess
the continued availability of those facilities;
· assessing the risks to the investment portfolio of market altering factors such as inflation and increased interest rates,
by looking at the Company’s operational impact and business continuity plans;
· assessing the Company’s ability to cover its expenses for the 12 month period from the date of signing the financial
statements, including the ability of the Company to exit underperforming investments, if needed; and
· assessing the appropriateness of the disclosures in the financial statements relating to going concern.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions
that, individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for a
period of at least twelve months from when the financial statements are authorised for issue.
In relation to the reporting on how the Company has applied the UK Corporate Governance Code, we have nothing
material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the
Directors considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant
sections of this report.
5. Key Audit Matter
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified. These matters included those which had the greatest effect on: the
overall audit strategy; the allocation of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
5.1 Valuation and Existence of Listed Investments
Key audit matter
description
As an investment entity, the Company holds listed investments of £472.7 million as at 31 January 2025 (2024:
£474.1 million). These represent the most quantitatively significant financial statement line on the Statement
of Financial Position.
There is a risk that investments may not be valued correctly or may not represent the property of the
Company. This may result in a material misstatement within the investments held at fair value through profit
or loss and we consider that there is a potential area for fraud since investment return is a key performance
indicator for the Company.
Refer to note 2 c) to the financial statements for the accounting policy on investments and details of the
investments are disclosed in note 10 to the financial statements. The valuation and existence of listed
investments has been included in the Audit Committee’s Report as a significant reporting matter.
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How the scope of our
audit responded to
the key audit matter
We performed the following procedures to address the valuation and existence of the listed
investment portfolio:
· we tested the, relevant controls over the valuation and existence of listed investments;
· we independently valued 100% of the investment portfolio to the closing bid prices published by an
independent pricing source; and
· we confirmed the existence of 100% of investments at the year-end date by obtaining independent third-
party confirmations directly from the Custodian.
Key observations Based on the work performed, we concluded that the valuation and existence of listed investments
was appropriate.
6. Our Application of Materiality
6.1 Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the
economic decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in
planning the scope of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Materiality £4.3 million (2024: £4.5 million)
Basis for determining materiality 1% (2024: 1%) of net assets
Rationale for the benchmark applied Net assets has been chosen as it is considered the most relevant benchmark for
investors and is a key driver of shareholder value
Net assets: £428.5m
Materiality: £4.3m
Audit Committee
reporting threshold
£0.2m
Net Assets Materiality
82 Dunedin Income Growth Investment Trust PLC
6.2 Performance Materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate,
uncorrected and undetected misstatements exceed the materiality for the financial statements as a whole.
Performance materiality was set at 70% of materiality for the 2025 audit (2024: 70%). In determining performance
materiality, we considered the following factors:
a) there have been no significant changes in the business structure and operations;
b) our experience from previous audits has indicated a low number of corrected and uncorrected misstatements
identified in prior periods; and
c) quality of the control environment and our ability to rely on controls over the valuation and existence of listed
investments.
6.3 Error Reporting Threshold
We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of
£0.2 million (2024: £0.2 million), as well as differences below that threshold that, in our view, warranted reporting on
qualitative grounds.
We also report to the Audit Committee on disclosure matters that we identified when assessing the overall presentation
of the financial statements.
7. An Overview of the Scope of our Audit
7.1 Scoping
Our audit was scoped by obtaining an understanding of the Company and its environment, including internal control and
assessing the risks of material misstatement. Audit work to respond to the risks of material misstatement was performed
directly by the audit engagement team.
7.2 Our Consideration of the Control Environment
In assessing the Company’s control environment, we considered controls in place at the Company’s service
organisation, BNP Paribas, which acts as administrator. As part of this we evaluated the System and Organisation
Controls (SOC 1) Report of BNP Paribas which covers the period from 1 October 2023 to 30 September 2024. We
evaluated the SOC 1 report in respect of general IT controls and the relevant controls over the process around the
valuation and existence of investments. We have obtained a bridging letter to cover the four month period between the
date of the controls report and the date of the Annual Report.
We also obtain an understanding of relevant controls over the financial reporting process and the posting of journal
entries and other adjustments made in the preparation of the financial statements.
7.3 Our Consideration of Climate-Related Risks
In planning our audit, we have considered the potential impact of climate change on the Company’s business and its
financial statements. The Company continues to develop its assessment of the potential impacts of environmental,
social and governance (“ESG”) on the Company, including climate change, as outlined on page 36 to 40. As a part of our
audit, we held discussions with management to understand the process of identifying climate-related risks,
management’s determination of mitigating actions and the impact on the Company’s financial statements. We
performed our own qualitative risk assessment of the potential impact of climate change on the Company’s account
balances and classes of transactions. We have read the disclosures in relation to climate change made in the other
information within the Annual Report to ascertain whether the disclosures are materially consistent with the financial
statements and our knowledge from our audit.
Independent Auditor’s Report to Dunedin
Income Growth Investment Trust PLC
Continued
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8. Other Information
The other information comprises the information included in the Annual Report, other than the financial statements and
our Auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise
explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to
be materially misstated.
If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether
this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact.
We have nothing to report in this regard.
9. Responsibilities of the Directors
As explained more fully in the Statement of Directors’ Responsibilities, the Directors are responsible for the preparation of
the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a
going concern, disclosing as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic
alternative but to do so.
10. Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditor’s report.
11. Extent to which the Audit was Considered Capable of Detecting Irregularities,
Including Fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line
with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The
extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
84 Dunedin Income Growth Investment Trust PLC
11.1 Identifying and Assessing Potential Risks Related to Irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-
compliance with laws and regulations, we considered the following:
· the nature of the industry and sector, control environment and business performance including the design of the
Company’s remuneration policies, key drivers for remuneration, bonus levels and performance targets;
· results of our enquiries of management, the Directors and the Audit Committee about their own identification and
assessment of the risks of irregularities, including those that are specific to the Company’s sector;
· any matters we identified having obtained and reviewed the Company’s documentation of its policies and procedures
relating to:
· identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of
non-compliance;
· detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or
alleged fraud;
· the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
· the matters discussed among the audit engagement team regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation
for fraud and identified the greatest potential for fraud in the valuation and existence of listed investments. In common
with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of
management override.
We also obtained an understanding of the legal and regulatory framework that the Company operates in, focusing on
provisions of those laws and regulations that had a direct effect on the determination of material amounts and
disclosures in the financial statements. The key laws and regulations we considered in this context included the UK
Companies Act, Listing Rules, tax legislation and the Association of Investment Companies’ SORP.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental to the Company’s ability to operate or to avoid a material
penalty. This included the requirements of the United Kingdom’s Financial Conduct Authority (“FCA”), the Alternative
Investment Fund Managers Directive and the ESG Sourcebook.
11.2 Audit Response to Risks Identified
As a result of performing the above, we identified the valuation and existence of listed investments as a key audit matter
related to the potential risk of fraud. The key audit matters section of our report explains the matter in more detail and
also describes the specific procedures we performed in response to that key audit matter.
In addition to the above, our procedures to respond to risks identified included the following:
· reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with
provisions of relevant laws and regulations described as having a direct effect on the financial statements;
· enquiring of management and the Audit Committee concerning actual and potential litigation and claims;
· performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
material misstatement due to fraud;
· reading minutes of meetings of those charged with governance; and
· in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries
and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a
potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the
normal course of business.
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Income Growth Investment Trust PLC
Continued
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Strategic Report Governance Overview General Portfolio Other Information Financial Statements
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team
members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout
the audit.
Report on Other Legal and Regulatory Requirements
12. Opinions on Other Matters Prescribed by the Companies Act 2006
In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance
with the Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
· the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial
statements are prepared is consistent with the financial statements; and
· the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit,
we have not identified any material misstatements in the Strategic Report or the Directors’ Report.
13. Corporate Governance Statement
The Listing Rules require us to review the Directors' statement in relation to going concern, longer-term viability and that
part of the Corporate Governance Statement relating to the Company’s compliance with the provisions of the UK
Corporate Governance Code specified for our review.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the
Corporate Governance Statement is materially consistent with the financial statements and our knowledge obtained
during the audit:
· the Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and
any material uncertainties identified set out on page 66;
· the Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and
why the period is appropriate set out on page 21;
· the Directors' statement is fair, balanced and understandable as set out on page 78;
· the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on
page 16;
· the section of the Annual Report that describes the review of effectiveness of risk management and internal control
systems set out on pages 73 to 74; and
· the section describing the work of the Audit Committee set out on pages 73 to 75.
14. Matters on Which we are Required to Report by Exception
14.1 Adequacy of Explanations Received and Accounting Records
Under the Companies Act 2006 we are required to report to you if, in our opinion:
· we have not received all the information and explanations we require for our audit; or
· adequate accounting records have not been kept, or returns adequate for our audit have not been received from
branches not visited by us; or
· the financial statements are not in agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
86 Dunedin Income Growth Investment Trust PLC
14.2 Directors’ Remuneration
Under the Companies Act 2006 we are also required to report if in our opinion certain disclosures of Directors’
remuneration have not been made or the part of the Directors’ Remuneration Report to be audited is not in agreement
with the accounting records and returns.
We have nothing to report in respect of these matters.
15. Other Matters Which we Are Required to Address
15.1 Auditor Tenure
Following the recommendation of the Audit Committee, we were appointed by shareholders at the Annual General
Meeting on 23 May 2017 to audit the financial statements for the period ending 31 January 2018 and subsequent
financial periods. The period of total uninterrupted engagement including previous renewals and reappointments of the
firm is seven years, covering the years ending 31 January 2018 to 31 January 2024. We were re-appointed as part of the
Annual General Meeting on 23 May 2024.
15.2 Consistency of the Audit Report with the Additional Report to the Audit Committee
Our audit opinion is consistent with the additional report to the Audit Committee we are required to provide in
accordance with ISAs (UK).
16. Use of Our Report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the
Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those
matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted
by law, we do not accept or assume responsibility to anyone other than the Company and the Company’s members as
a body, for our audit work, for this report, or for the opinions we have formed.
Michael Caullay (Senior Statutory Auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
Glasgow
United Kingdom
14 April 2025
Independent Auditor’s Report to Dunedin
Income Growth Investment Trust PLC
Continued
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Year ended 31 January 2025 Year ended 31 January 2024
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments 10 – 16,405 16,405 – 4,712 4,712
Currency profit – 175 175 – 267 267
Income 3 22,550 – 22,550 22,949 – 22,949
Investment management fee 4 (691) (1,036) (1,727) (696) (1,044) (1,740)
Administrative expenses 5 (898) – (898) (1,072) – (1,072)
Net return before finance costs and taxation 20,961 15,544 36,505 21,181 3,935 25,116
Finance costs 6 (827) (1,240) (2,067) (757) (1,116) (1,873)
Return before taxation 20,134 14,304 34,438 20,424 2,819 23,243
Taxation 7 (510) – (510) (410) – (410)
Return after taxation 19,624 14,304 33,928 20,014 2,819 22,833
Return per Ordinary share (pence) 9 13.82 10.08 23.90 13.54 1.91 15.45
The column of this statement headed “Total” represents the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
The accompanying notes are an integral part of the financial statements.
Statement of Comprehensive Income
88 Dunedin Income Growth Investment Trust PLC
As at As at
31 January 2025 31 January 2024
Notes £’000 £’000
Non-current assets
Investments at fair value through profit or loss 10 472,652 474,087
Current assets
Debtors 11 3,292 2,925
Cash and cash equivalents 2,329 12,868
5,621 15,793
Creditors: amounts falling due within one year
Bank loan 12 (18,907) (13,307)
Other creditors 12 (1,086) (1,013)
(19,993) (14,320)
Net current (liabilities)/assets (14,372) 1,473
Total assets less current liabilities 458,280 475,560
Creditors: amounts falling due after more than one year 13 (29,752) (29,745)
Net assets 428,528 445,815
Capital and reserves
Called-up share capital 14 38,419 38,419
Share premium account 4,908 4,908
Capital redemption reserve 1,606 1,606
Capital reserve 359,775 376,996
Revenue reserve 16 23,820 23,886
Equity shareholders’ funds 428,528 445,815
Net asset value per Ordinary share (pence) 17 317.55 304.99
The financial statements were approved and authorised for issue by the Board of Directors on 14 April 2025 and were signed on its
behalf by:
David Barron
Director
Company Number: SC000881
The accompanying notes are an integral part of the financial statements.
Statement of Financial Position
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For the year ended 31 January 2025
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 January 2024 38,419 4,908 1,606 376,996 23,886 445,815
Return after taxation – – – 14,304 19,624 33,928
Repurchase of shares for Treasury – – (31,525) – (31,525)
Dividends paid 8 – – – – (19,690) (19,690)
Balance at 31 January 2025 38,419 4,908 1,606 359,775 23,820 428,528
For the year ended 31 January 2024
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 January 2023 38,419 4,908 1,606 379,839 23,833 448,605
Return after taxation – – – 2,819 20,014 22,833
Repurchase of shares for Treasury – – (5,662) – (5,662)
Dividends paid 8 – – – – (19,961) (19,961)
Balance at 31 January 2024 38,419 4,908 1,606 376,996 23,886 445,815
The Revenue reserve and the part of the Capital reserve represented by realised capital gains represent the amount of the
Company’s reserves distributable by way of dividend.
The accompanying notes are an integral part of the financial statements.
Statement of Chan
g
es in Equity
90 Dunedin Income Growth Investment Trust PLC
Year ended Year ended
31 January 2025 31 January 2024
Notes £’000 £’000
Operating activities
Net return before finance costs and taxation 36,505 25,116
Adjustment for:
Gains on investments (16,405) (4,712)
Currency gains (175) (267)
Decrease in accrued dividend income 116 196
(Increase)/decrease in other debtors excluding tax (20) 15
(Decrease)/increase in other creditors (226) 109
Overseas withholding tax (970) (1,093)
Net cash flow from operating activities 18,825 19,364
Investing activities
Purchases of investments (115,323) (91,372)
Sales of investments 133,163 100,244
Net cash from investing activities 17,840 8,872
Financing activities
Interest paid (2,007) (1,916)
Dividends paid 8 (19,710) (19,961)
Buyback of Ordinary shares for treasury (31,261) (5,571)
Drawdown of Loan 5,856 –
Net cash used in financing activities (47,122) (27,448)
(Decrease)/increase in cash and cash equivalents (10,457) 788
Analysis of changes in cash and cash equivalents during the year
Opening balance 12,868 12,267
Effect of exchange rate fluctuations on cash held (82) (187)
(Decrease)/increase in cash as above (10,457) 788
Closing balance 2,329 12,868
The accompanying notes are an integral part of the financial statements. A reconciliation of the changes in net debt can be found in
note 18 on page 103.
Statement of Cash Flows
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1. Principal activity
The Company is a closed-end investment company, registered in Scotland No. SC000881, with its Ordinary shares being listed
on the London Stock Exchange.
2. Accounting policies
(a) Basis of preparation and going concern. The financial statements have been prepared in accordance with Financial
Reporting Standard 102, the requirements of the Companies Act 2006 and with the AIC (“Association of Investment
Companies”) Statement of Recommended Practice ‘Financial Statements of Investment Trust Companies and Venture
Capital Trusts’ issued in July 2022. The financial statements are prepared in sterling which is the functional currency of the
Company and rounded to the nearest £’000. They have also been prepared on the assumption that approval as an
investment trust will continue to be granted.
The Company’s assets consist mainly of equity shares in companies listed on the London Stock Exchange and in most
circumstances are considered to be realisable within a short timescale. The Board has set limits for borrowing and
derivative contract positions and regularly reviews actual exposures, cash flow projections and compliance with loan
covenants. The Directors have considered the fact that Company’s investments comprise readily realisable securities
which can be sold to meet funding requirements if necessary. The Directors have also performed stress testing on the
portfolio and the loan financial covenants.
Having taken these matters into account, the Directors believe that the Company has adequate financial resources to
continue in operational existence for the foreseeable future and for at least twelve months from the date of this Report.
Accordingly, they continue to adopt the going concern basis of accounting in preparing the financial statements.
Critical accounting judgements and key sources of estimation uncertainty. The preparation of financial statements requires
the use of certain significant accounting judgements, estimates and assumptions which requires management to
exercise its judgement in the process of applying the accounting policies which are continually evaluated. The Board
considers that there are no accounting judgements, estimates and assumptions which would significantly impact the
financial statements.
(b) Revenue, expenses and interest payable. Income from equity investments (other than special dividends), including taxes
deducted at source, is included in revenue by reference to the date on which the investment is quoted ex-dividend.
Special dividends are credited to revenue or capital according to the circumstances. Foreign income is converted at the
exchange rate applicable at the time of receipt. Interest receivable on short term deposits and expenses are accounted
for on an accruals basis. Income from underwriting commission is recognised as earned. Interest payable is calculated on
an effective yield basis. Stock lending income is recognised on an accruals basis.
Underwriting commission is taken to revenue, unless any shares underwritten are required to be taken up, in which case
the proportionate commission received is deducted from the cost of the investment.
Expenses are charged to capital when they are incurred in connection with the maintenance or enhancement of the
value of investments. In this respect, the investment management fee and relevant finance costs, including the
amortisation of expenses, are allocated between revenue and capital in line with the Board’s expectation of returns from
the Company’s investments over the long-term of 40% to revenue and 60% to capital.
Notes to the Financial Statements
For the year ended 31 January 2025
92 Dunedin Income Growth Investment Trust PLC
(c) Investments. Investments have been designated upon initial recognition as fair value through profit or loss. Investments are
recognised and de-recognised at trade date where a purchase or sale is under a contract whose terms require delivery
within the timeframe established by the market concerned, and are measured initially at fair value. Subsequent to initial
recognition, investments are recognised at fair value through profit or loss. For listed investments, this is deemed to be bid
market prices or closing prices for SETS stocks sourced from the London Stock Exchange. SETS is the London Stock
Exchange electronic trading service covering most of the market including all FTSE All-Share and the most liquid AIM
constituents. Gains or losses arising from changes in fair value are included in net profit or loss for the period as a capital
item in the Statement of Comprehensive Income.
(d) Dividends payable. Final dividends payable to equity shareholders are recognised in the financial statements when they
have been approved by Shareholders and become a liability of the Company. Interim dividends are recognised in the
financial statements in the period in which they are paid.
(e) Nature and purpose of reserves
Called-up share capital. The Ordinary share capital on the Statement of Financial Position relates to the number of shares
in issue and in treasury. Only when the shares are cancelled, either from treasury or directly, is a transfer made to the
capital redemption reserve.
Share premium account. The balance classified as share premium includes the premium above the nominal value from the
proceeds on issue of any equity share capital comprising Ordinary shares of 25p.
Capital redemption reserve. The capital redemption reserve is used to record the amount equivalent to the nominal value
of any of the Company’s own shares purchased and cancelled in order to maintain the Company’s capital.
Capital reserve. Gains or losses on the disposal of investments and changes in the fair values of investments are
transferred to the capital reserve. The capital element of the management fee and relevant finance costs are charged to
this reserve. Any associated tax relief is also credited to this reserve. Certain other items including gains or losses on foreign
currency and special dividends are also allocated to this reserve as appropriate. The part of this reserve represented by
realised capital gains is available for distribution by way of dividend.
The costs of share buybacks to be held in treasury are also deducted from this reserve.
Revenue reserve. Income and expenses which are recognised in the revenue column of the Statement of Comprehensive
Income are transferred to the revenue reserve. The revenue reserve is available for distribution by way of dividend.
(f) Taxation. The charge for taxation is based on the profit for the year and takes into account taxation deferred because of
timing differences between the treatment of certain items for taxation and accounting purposes.
Owing to the Company’s status as an investment trust, and the intention to continue meeting the conditions required to
obtain approval in the foreseeable future, the Company has not provided deferred tax on any capital gains and losses
arising on the revaluation or disposal of investments.
(g) Foreign currency. Monetary assets and liabilities and non-monetary assets held at fair value denominated in foreign
currencies are converted into sterling at the rate of exchange ruling at the reporting date. Transactions during the year
involving foreign currencies are converted at the rate of exchange ruling at the transaction date. Gains or losses arising
from a change in exchange rates subsequent to the date of a transaction are included as a currency gain or loss in
revenue or capital in the Statement of Comprehensive Income, depending on whether the gain or loss is of a revenue or
capital nature. The Company receives a proportion of its investment income in foreign currency. These amounts are
translated at the rate ruling on the date of receipt.
Notes to the Financial Statements
Continued
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Strategic Report Governance Overview General Portfolio Other Information Financial Statements
(h) Traded options. The Company may enter into certain derivative contracts (e.g. options). Option contracts are accounted
for as separate derivative contracts and are therefore shown in other assets or other liabilities at their fair value. The initial
fair value is based on the initial premium, which is recognised upfront. The premium received and fair value changes in the
open position which occur due to the movement in underlying securities are recognised in the revenue column, losses
realised on the exercise of the contracts are recorded in the capital column of the Statement of Comprehensive Income.
In addition, the Company may enter into derivative contracts to manage market risk and gains or losses arising on such
contracts are recorded in the capital column of the Statement of Comprehensive Income.
(i) Borrowings. Borrowings are measured initially at the fair value of the consideration received, net of any issue expenses,
and subsequently at amortised cost using the effective interest method. The finance costs of such borrowings are
accounted for on an accruals basis using the effective interest rate method and are charged 40% to revenue and 60% to
capital in the Statement of Comprehensive Income to reflect the Company’s investment policy and prospective income
and capital growth.
(j) Treasury shares. When the Company purchases the Company’s equity share capital to be held as treasury shares, the
amount of the consideration paid, which includes directly attributable costs, is net of any tax effects, and is recognised as a
deduction from the capital reserve. When these shares are sold subsequently, the amount received is recognised as an
increase in equity, and any resulting surplus on the transaction is transferred to the share premium account and any
resulting deficit is transferred from the capital reserve.
3. Income
2025 2024
£’000 £’000
Income from investments
UK dividend income 13,458 14,970
Overseas dividends 6,623 5,843
20,081 20,813
Other income
Income on derivatives 2,390 2,060
Interest on tax reclaims - 3
Deposit Interest 36 73
Other Income 43 -
2,469 2,136
Total income 22,550 22,949
During the year, the Company earned premiums totalling £2,390,000 (2024 - £2,060,000) in exchange for entering into
derivative transactions. The Company had no open positions in derivative contracts at 31 January 2025 (2024 - no open
positions). Losses realised on the exercise of derivative transactions are disclosed in note 10.
94 Dunedin Income Growth Investment Trust PLC
4. Management fee
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Management fee 691 1,036 1,727 696 1,044 1,740
The Company has an agreement with abrdn Fund Managers Limited (“aFML”) for the provision of investment management, risk
management, accounting, administrative and secretarial services. The management fee is calculated and charged, on a
monthly basis, at 0.45% per annum on the first £225 million, 0.35% per annum on the next £200 million and 0.25% per annum on
amounts over £425 million of the net assets of the Company, with debt at par and excluding commonly managed funds. The
balance due at the year end was £274,000 (2024 – £289,000). The management fee is allocated 40% to revenue and 60% to
capital. There were no commonly managed funds held in the portfolio during the year to 31 January 2025 (2024 – none).
The management agreement may be terminated by either party on six months’ written notice.
5. Administrative expenses
2025 2024
£’000 £’000
Directors’ fees 170 161
Auditor’s remuneration (excluding VAT):
– fees payable to the Company’s Auditor for the audit of the
Company’s annual accounts
39 34
Irrecoverable VAT 58 64
Promotional activities 200 246
Registrar’s fees 53 46
Share plan fees – 149
Other expenses 378 372
898 1,072
Expenses of £200,000 (2024 – £246,000) were paid to aFML in respect of the promotional activities of the Company. The
balance outstanding at the year end was £17,000 (2024 – £79,000).
Notes to the Financial Statements
Continued
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Strategic Report Governance Overview General Portfolio Other Information Financial Statements
6. Finance costs
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Bank loan 343 516 859 263 394 657
Loan Notes - repayable after more than five years 480 720 1,200 479 718 1,197
Amortised Loan Notes issue expenses 3 4 7 3 4 7
Bank overdraft 1 - 1 12 - 12
827 1,240 2,067 757 1,116 1,873
Finance costs (excluding bank overdraft interest) are allocated 40% to revenue and 60% to capital.
7. Taxation
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(a) Analysis of charge for the year
Overseas tax suffered 2,277 – 2,277 1,203 – 1,203
Overseas tax reclaimable (1,767) – (1,767) (793) – (793)
Total tax charge for the year 510 – 510 410 – 410
96 Dunedin Income Growth Investment Trust PLC
(b) Factors affecting the tax charge for the year. The UK corporation tax rate is 25% (2024 – 25%). The tax assessed for the year
is lower than the rate of corporation tax. The differences are explained below:
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Return before taxation 20,134 14,304 34,438 20,424 2,819 23,243
Corporation tax at 25% (2024 – effective rate
of 24%)
5,034 3,576 8,610 4,902 677 5,579
Effects of: –
Non-taxable UK dividend income (3,342) – (3,342) (3,406) – (3,406)
Capital gains on investments not taxable – (4,102) (4,102) – (1,123) (1,123)
Expenses not deductible for tax purposes – – – 1 – 1
Currency gains not taxable – (43) (43) – (73) (73)
Overseas taxes 510 – 510 410 – 410
Non-taxable overseas dividends (1,493) – (1,493) (1,402) – (1,402)
Excess management expenses (199) 569 370 (95) 519 424
Total tax charge 510 – 510 410 – 410
(c) Factors that may affect future tax charges. At the year end, the Company has, for taxation purposes only, accumulated
unrelieved management expenses and loan relationship deficits of £137,155,000 (2024 – £135,671,000). A deferred tax
asset in respect of this has not been recognised and these unrelieved expenses will only be utilised if the Company has
profits chargeable to corporation tax in the future.
Notes to the Financial Statements
Continued
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8. Ordinary dividends on equity shares
2025 2024
£’000 £’000
Amounts recognised as distributions paid during the year:
Third interim dividend for 2024 – 3.20p (2023 – 3.00p) 4,678 4,448
Final dividend for 2024 – 4.15p (2023 – 4.10p) 5,996 6,079
First interim dividend for 2025 – 3.20p (2024 – 3.20p) 4,569 4,744
Second interim dividend for 2025 – 3.20p (2024 – 3.20p) 4,467 4,709
Return of unclaimed dividends
A
(20) (19)
19,690 19,961
A
Unclaimed dividends returned to the Company during the year ended 31 January 2025 have been donated to charity (see note 22).
A third interim dividend of 3.20p per Ordinary share was declared on 11 December 2024, payable on 28 February 2025 to
shareholders on the register on 7 February 2025 and has not been included as a liability in these financial statements. The
final dividend of 4.60p per Ordinary share was approved by the Board on 14 April 2025, payable on 30 May 2025 to
shareholders on the register on 2 May 2025 and has not been included as a liability in the financial statements.
The table below sets out the total dividends paid and proposed in respect of the financial year, which is the basis upon which
the requirements of Sections 1158–1159 of the Corporation Tax Act 2010 are considered. The net revenue available for
distribution by way of dividend for the year is £19,598,000 (2024 – £20,014,000).
2025 2024
£’000 £’000
First interim dividend for 2025 – 3.20p (2024 – 3.20p) 4,569 4,744
Second interim dividend for 2025 – 3.20p (2024 – 3.20p) 4,467 4,709
Third interim dividend for 2025 – 3.20p (2024 – 3.20p) 4,309 4,678
Final dividend for 2025 – 4.60p (2024 – 4.15p) 5,971 6,019
19,316 20,150
The final dividend is based on the latest share capital of 129,801,974 Ordinary shares excluding those held in treasury.
98 Dunedin Income Growth Investment Trust PLC
9. Return per Ordinary share
2025 2024
£’000 p £’000 p
Revenue return 19,624 13.82 20,014 13.54
Capital return 14,304 10.08 2,819 1.91
Total return 33,928 23.90 22,833 15.45
Weighted average number of Ordinary shares in issue 141,967,627 147,764,075
10. Investments at fair value through profit or loss
2025 2024
£’000 £’000
Opening book cost 409,443 424,815
Investment holdings gains 64,644 54,080
Opening fair value 474,087 478,895
Analysis of transactions made during the year
Purchases 115,323 90,723
Sales - proceeds (133,163) (100,243)
Gains on investments 16,405 4,712
Closing fair value 472,652 474,087
Closing book cost 397,456 409,443
Closing investment holdings gains 75,196 64,644
Closing fair value 472,652 474,087
The Company received £133,163,000 (2024 - £100,243,000) from investments sold in the year. The book cost of these
investments when they were purchased was £127,311,000 (2024 - £105,411,000). These investments have been revalued
over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.
The realised gains figure above includes losses realised on the exercise of traded options of £563,000 (2024 - £1,251,000).
Premiums received of £2,390,000 (2024 - £2,060,000) are included within income per note 3.
Notes to the Financial Statements
Continued
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Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Transaction costs. During the year expenses were incurred in acquiring or disposing of investments classified as fair value
through profit or loss. These have been expensed through capital and are included within gains/(losses) on investments in the
Statement of Comprehensive Income. The total costs were as follows:
2025 2024
£’000 £’000
Purchases 463 333
Sales 82 55
545 388
The above transaction costs are calculated in line with the AIC SORP. The transaction costs in the Company’s Key Information
Document are calculated on a different basis and in line with the PRIIPs regulations.
11. Debtors: amounts falling due within one year
2025 2024
£’000 £’000
Net dividends and interest receivable 454 568
Tax recoverable 2,799 2,340
Other loans and receivables 39 17
3,292 2,925
12. Creditors: amounts falling due within one year
2025 2024
(a) Bank loan £’000 £’000
EUR 15,600,000 – 11 February 2024 – 13,307
EUR 22,600,000 – 13 February 2025 18,907 –
18,907 13,307
The Company has a £30 million multi–currency revolving credit facility (“RCF”) with The Bank of America N.A., London
Branch committed until 8 August 2027. Under the terms of the facility, subject to the lender’s credit approval, the
Company has the option to increase the level of the facility from £30 million to £40 million at any time, should further
investment opportunities be identified. The RCF is secured by a floating charge over the whole of the assets of the
Company. As at 31 January 2025 €22,600,000 had been drawn down at a rate of 3.93% (2024 – €15,600,000 at a rate of
5.13%), which matured on 13 February 2025. At the date this Report was approved €22,600,000 had been drawn down
at a rate of 3.50%, maturing on 14 April 2025. The terms of the loan facility contain covenants that total net borrowings
shall not exceed 33% of the net asset value and that the minimum net assets of the Company are £200 million.
100 Dunedin Income Growth Investment Trust PLC
2025 2024
(b) Other creditors £’000 £’000
Loan Notes and bank loan interest 220 209
Amount due to brokers 368 92
Sundry creditors 498 712
1,086 1,013
13. Creditors: amounts falling due after more than one year
2025 2024
£’000 £’000
3.99% Loan Notes 2045 30,000 30,000
Unamortised Loan Note issue expenses (248) (255)
29,752 29,745
The 3.99% Loan Notes were issued in December 2015 and are due to be redeemed at par on 8 December 2045. Interest is
payable in half-yearly instalments in June and December. The Loan Notes are secured by a floating charge over the whole of
the assets of the Company. The Company has complied with the Loan Note Trust Deed covenant that total net borrowings
(ie. after the deduction of cash balances) should not exceed 33% of the Company’s net asset value and that the Company’s
net asset value should not be less than £200 million.
The fair value of the Loan Notes as at 31 January 2025 was £23,114,000 (2024 – £23,916,000), the valuation methodology is
disclosed in note 19. The effect on the net asset value of deducting the Loan Notes at fair value rather than at par is disclosed
in note 17.
14. Called-up share capital
2025 2024
£’000 £’000
Allotted, called up and fully paid:
134,949,033 (2024 – 146,172,889) Ordinary shares of 25p each – equity 33,737 36,543
Treasury shares:
18,728,902 (2024 – 7,505,046) Ordinary shares of 25p each – equity 4,682 1,876
38,419 38,419
The Ordinary share capital on the Statement of Financial Position relates to the number of shares in issue and in treasury. Only
when the shares are cancelled, either from treasury or directly, is a transfer made to the capital redemption reserve.
During the year the Company repurchased 11,223,856 (2024 – 2,091,781) ordinary shares at a cost of £31,525,000, including
expenses (2024 – £5,662,000, including expenses). All of the shares were placed in treasury. Subsequent to the year end the
company repurchased a further 5,147,059 Ordinary shares at a total cost of £14,673,000.
Notes to the Financial Statements
Continued
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15. Analysis of changes in financing during the year
2025 2024
Equity Equity
share capital share capital
(including Loan (including Loan
premium) Notes premium) Notes
£’000 £’000 £’000 £’000
Opening balance at 31 January 2024 43,327 29,745 43,327 29,738
Movement in unamortised Loan Notes issue expenses – 7 – 7
Closing balance at 31 January 2025 43,327 29,752 43,327 29,745
16. Revenue reserve per share
The following information is presented supplemental to the financial statements to show the Companies Act position at the
year end.
2025 2024
Revenue reserve (£’000) 23,820 23,886
Number of Ordinary shares in issue at year end 134,949,033 146,172,889
Revenue reserve per Ordinary share (p) 17.65 16.34
Less: – third interim dividend (p) (3.20) (3.20)
– final dividend (p) (4.60) (4.15)
Revenue reserve per Ordinary share (p) as per the Companies Act 9.85 8.99
102 Dunedin Income Growth Investment Trust PLC
17. Net asset value per share
Equity shareholders’ funds have been calculated in accordance with the provisions of FRS 102. The analysis of equity
shareholders’ funds on the face of the Statement of Financial Position does not reflect the rights under the Articles of
Association of the Ordinary shareholders on a return of assets. These rights are reflected in the net asset value and the net
asset value per share attributable to Ordinary shareholders at the year end, adjusted to reflect the deduction of the Loan
Notes at par. A reconciliation between the two sets of figures is as follows:
2025 2024
Net assets attributable (£’000) 428,528 445,815
Number of Ordinary shares in issue at year end
A
134,949,033 146,172,889
Net asset value per Ordinary share 317.55p 304.99p
A
Excluding shares held in treasury.
Adjusted net assets 2025 2024
Net assets attributable (£’000) as above 428,528 445,815
Unamortised Loan Note issue expenses (note 13) (248) (255)
Adjusted net assets attributable (£’000) 428,280 445,560
Number of Ordinary shares in issue at year end
A
134,949,033 146,172,889
Adjusted net asset value per Ordinary share 317.36p 304.82p
A
Excluding shares held in treasury.
Net assets – debt at fair value £’000 £’000
Net assets attributable 428,528 445,815
Amortised cost Loan Notes 29,752 29,745
Market value Loan Notes (23,114) (23,916)
Net assets attributable 435,166 451,644
Number of Ordinary shares in issue at the period end
A
134,949,033 146,172,889
Net asset value per Ordinary share (debt at fair value) 322.47p 308.98p
A
Excluding shares held in treasury.
Notes to the Financial Statements
Continued
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18. Analysis of changes in net debt
At Currency Non-cash At
31 January 2024 differences Cash flows movements 31 January 2025
£’000 £’000 £’000 £’000 £’000
Cash and cash equivalents 12,868 (82) (10,457) – 2,329
Debt due within one year (13,307) 256 (5,856) – (18,907)
Debt due after more than one year (29,745) – – (7) (29,752)
(30,184) 174 (16,313) (7) (46,330)
At Currency Non-cash At
31 January 2023 differences Cash flows movements 31 January 2024
£’000 £’000 £’000 £’000 £’000
Cash and cash equivalents 12,267 (187) 788 – 12,868
Debt due within one year (13,762) 455 – – (13,307)
Debt due after more than one year (29,738) – – (7) (29,745)
(31,233) 268 788 (7) (30,184)
A statement reconciling the movement in net funds to the net cash flow has not been presented as there are no differences
from the above analysis.
19. Financial instruments and risk management
The Company’s investment activities expose it to various types of financial risk associated with the financial instruments and
markets in which it invests. The Company’s financial instruments comprise securities and other investments, cash balances,
loans and debtors and creditors that arise directly from its operations; for example, in respect of sales and purchases awaiting
settlement, and debtors for accrued income. The Company also has the ability to enter into derivative transactions in the form
of option contracts for the purpose of generating income and futures/options for hedging market exposures.
During the year, the Company entered into certain options contracts for the purpose of generating income. Positions closed
during the year realised a loss of £563,000 (2024 – £1,251,000). As disclosed in note 3, the premium received and fair value
changes in respect of options written in the year was £2,390,000 (2024 – £2,060,000). The largest position in derivative
contracts held during the year at any given time was £1,028,000 (2024 – £905,000). The Company had no open positions in
derivative contracts at 31 January 2025 (2024 – none).
The Board relies on abrdn Fund Managers Limited (“aFML” or the “Manager”) for the provision of risk management activities
under the terms of its management agreement with aFML (further details of which are included under note 4). The Board
regularly reviews and agrees policies for managing each of the key financial risks identified with the Manager. The types of risk
and the Manager’s approach to the management of each type of risk, are summarised below. Such approach has been
applied throughout the year and has not changed since the previous accounting period. The numerical disclosures exclude
short-term debtors and creditors on the grounds that they are not considered to be material.
104 Dunedin Income Growth Investment Trust PLC
The Company’s Manager has an independent Investment Risk department for reviewing the investment risk parameters of all
core equity, fixed income and alternative asset classes on a regular basis. The department reports to the Manager’s
Performance Review Committee which is chaired by the Manager’s Chief Investment Officer. The department’s responsibility
is to review and monitor ex-ante (predicted) portfolio risk and style characteristics using best practice, industry standard
multi-factor models.
Risk management framework. The directors of aFML collectively assume responsibility for aFML’s obligations under the AIFMD
including reviewing investment performance and monitoring the Company’s risk profile during the year.
aFML is a fully integrated member of the Aberdeen Group (the “Group”) which provides a variety of services and support to
aFML in the conduct of its business activities, including in the oversight of the risk management framework for the Company.
aFML has delegated the day to day administration of the investment policy to abrdn Investments Limited, which is responsible
for ensuring that the Company is managed within the terms of its investment guidelines and the limits set out in its pre-
investment disclosures to investors (details of which can be found on the Company’s website). aFML has retained
responsibility for monitoring and oversight of investment performance, product risk and regulatory and operational risk for the
Company.
The Manager conducts its risk oversight function through the operation of the Group’s risk management processes and
systems which are embedded within the Group’s operations. The Group’s Risk Division supports management in the
identification and mitigation of risks and provides independent monitoring of the business. The Division includes Compliance,
Business Risk, Market Risk, Risk Management and Legal. The team is headed up by the Group’s Chief Risk Officer, who reports
to the Chief Executive Officers of the Group. The Risk Division achieves its objective through embedding the Risk Management
Framework throughout the organisation using the Group’s operational risk management system (“SHIELD”).
The Group’s Internal Audit Department is independent of the Risk Division and reports directly to the Group’s Chief Executive
Officers and to the Audit Committee of the Group’s Board of Directors. The Internal Audit Department is responsible for
providing an independent assessment of the Group’s control environment.
The Group’s corporate governance structure is supported by several committees to assist the board of directors of Aberdeen,
its subsidiaries and the Company to fulfil their roles and responsibilities. The Group’s Risk Division is represented on all
committees, with the exception of those committees that deal with investment recommendations. The specific goals and
guidelines on the functioning of those committees are described on the committees’ terms of reference.
Risk Management. The main risks the Company faces from its financial instruments are (i) market risk (comprising interest rate
risk, currency risk and other price risk), (ii) liquidity risk and (iii) credit risk.
The Board regularly reviews and agrees policies for managing each of these risks. The Group’s policies for managing these
risks are summarised below and have been applied throughout the year. The numerical disclosures exclude short-term
debtors and creditors, other than for currency disclosures.
(i) Market risk. Market risk comprises three elements – interest rate risk, currency risk and price risk.
(a) Interest rate risk. Interest rate movements may affect:
– the fair value of the investments in fixed interest rate securities;
– the level of income receivable on cash deposits; and
– interest payable on the Company’s variable rate borrowings.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 105
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Management of the risk. The possible effects on fair value and cash flows that could arise as a result of changes in interest
rates are taken into account when making investment and borrowing decisions.
The Board imposes borrowing limits to ensure gearing levels are appropriate to market conditions and reviews these on
a regular basis. Borrowings comprise fixed rate, revolving, and uncommitted facilities. Details of borrowings at 31 January
2025 are shown in notes 12 and 13.
Interest risk profile. The interest rate risk profile of the portfolio of financial assets and liabilities at the Statement of
Financial Position date was as follows:
Weighted
average Weighted
period for average
which interest Fixed Floating
rate is fixed rate rate rate
At 31 January 2025 Years % £’000 £’000
Assets
Sterling - - - 2,329
Total assets - - - 2,329
Liabilities
Bank loans 0.08 3.93 (18,907) -
Loan Notes 20.87 3.99 (29,752) -
Total liabilities - - (48,659) -
Weighted
average Weighted
period for average
which interest Fixed Floating
rate is fixed rate rate rate
At 31 January 2024 Years % £’000 £’000
Assets
Sterling - - - 12,868
Total assets - - - 12,868
Liabilities
Bank loans 0.08 5.13 (13,307) -
Loan Notes 21.87 3.99 (29,745) -
Total liabilities - - (43,052) -
106 Dunedin Income Growth Investment Trust PLC
The weighted average interest rate is based on the current yield of each asset, weighted by its market value. The
weighted average interest rate on bank loans is based on the interest rate payable, weighted by the total value of the
loans. The maturity dates of the Company’s borrowings are shown in notes 12 and 13 to the financial statements.
The floating rate assets consist of cash deposits all earning interest at prevailing market rates.
The Company’s equity portfolio and short-term debtors and creditors (excluding bank loans) have been excluded from
the above tables. All financial liabilities are measured at amortised cost.
Interest rate sensitivity. Movements in interest rates would not significantly affect net assets attributable to the
Company’s shareholders and total profit.
(b) Foreign currency risk. A proportion of the Company’s investment portfolio is invested in overseas securities whose
values are subject to fluctuation due to changes in exchange rates. In addition, the impact of changes in foreign
exchange rates upon the profits of investee companies can result, indirectly, in changes in their valuations. Consequently
the Statement of Financial Position can be affected by movements in exchange rates.
Management of the risk. It is not the Company’s policy to hedge this risk on a continuing basis but the Company may,
from time to time, match specific overseas investment with foreign currency borrowings. A proportion of the Company’s
borrowings, as detailed in note 12, is in foreign currency as at 31 January 2025. The revenue account is subject to
currency fluctuations arising on dividends received in foreign currencies and, indirectly, due to the impact of foreign
exchange rates upon the profits of investee companies. The Company does not hedge this currency risk.
Foreign currency risk exposure by currency of denomination:
31 January 2025 31 January 2024
Net Total Net Total
monetary currency monetary currency
Investments assets exposure Investments assets exposure
£’000 £’000 £’000 £’000 £’000 £’000
Euro 90,674 (16,222) 74,452 57,491 (11,208) 46,283
Swiss Francs – – – – 96 96
Danish Krone 9,126 72 9,198 9,009 109 9,118
Norwegian Krone – 11 11 13,067 11 13,078
Swedish Krona 11,375 – 11,375 22,478 – 22,478
Sterling 361,477 (27,985) 333,492 372,042 (17,280) 354,762
Total 472,652 (44,124) 428,528 474,087 (28,272) 445,815
The asset allocation between specific markets can vary from time to time based on the Manager’s opinion of the
attractiveness of the individual stocks in these markets.
Foreign currency sensitivity. There is no sensitivity analysis included as the Board believes the amount exposed to foreign
currency denominated monetary assets to be immaterial. Where the Company’s equity investments (which are non-
monetary items) are priced in a foreign currency, they have been included within the other price risk sensitivity analysis
so as to show the overall level of exposure.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 107
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
(c) Price risk. Price risks (i.e. changes in market prices other than those arising from interest rate or currency risk) may
affect the value of the quoted investments and traded options.
Management of the risk. It is the Board’s policy to hold an appropriate spread of investments in the portfolio in order to
reduce the risk arising from factors specific to a particular company or sector. Both the allocation of assets and the stock
selection process, as detailed on page 34 to 40, act to reduce market risk. The Manager actively monitors market prices
throughout the year and reports to the Board, which meets regularly in order to review investment strategy. The
investments held by the Company are listed on various stock exchanges in the UK and Europe.
Price risk sensitivity. If market prices at the Statement of Financial Position date had been 10% higher while all other
variables remained constant, the return attributable to Ordinary shareholders for the year ended 31 January 2025
would have increased by £47,265,000 (2024 – increase of £47,409,000) and equity reserves would have increased by the
same amount. Had market prices been 10% lower the converse would apply.
(ii) Liquidity risk. This is the risk that the Company will encounter difficulty in meeting obligations associated with financial
liabilities as they fall due in line with the maturity profile analysed below.
More
Within Within Within Within Within than
1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
At 31 January 2025 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Bank loans 18,907 – – – – – 18,907
Loan Notes – – – – – 30,000 30,000
Interest cash flows on bank loans and
loan notes
1,259 1,197 1,197 1,197 1,197 19,152 25,199
Cash flows on other creditors 866 – – – – – 866
21,032 1,197 1,197 1,197 1,197 49,152 74,972
More
Within Within Within Within Within than
1 year 1-2 years 2-3 years 3-4 years 4-5 years 5 years Total
At 31 January 2024 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Bank loans 13,307 – – – – – 13,307
Loan Notes – – – – – 30,000 30,000
Interest cash flows on bank loans and
loan notes
1,254 1,197 1,197 1,197 1,197 20,349 26,391
Cash flows on other creditors 804 – – – – – 804
15,365 1,197 1,197 1,197 1,197 50,349 70,502
108 Dunedin Income Growth Investment Trust PLC
Management of the risk. The Board imposes borrowing limits to ensure gearing levels are appropriate to market
conditions and reviews these on a regular basis. Borrowings comprise Loan Notes and a revolving facility. The Loan
Notes provide secure long-term funding while short term flexibility is achieved through the borrowing facility. It is the
Board’s policy to maintain a gearing level, measured on the most stringent basis of calculation after netting off cash
equivalents, of less than 30% at all times. Details of borrowings at 31 January 2025 are shown in notes 12 and 13.
Liquidity risk is not considered to be significant as the Company’s assets comprise mainly cash and listed securities,
which can be sold to meet funding commitments if necessary. Short-term flexibility is achieved through the use of loan
and overdraft facilities, details of which can be found in note 12. Under the terms of the loan facility, the Manager
provides the lender with loan covenant reports on a monthly basis, to provide the lender with assurance that the terms
of the facility are not being breached. The Manager will also review the credit rating of a lender on a regular basis. Details
of the Board’s policy on gearing are shown in the interest rate risk section of this note.
Liquidity risk exposure. At 31 January 2025 and 31 January 2024 the amortised cost of the Company’s Loan Notes was
£29,752,000 and £29,745,000 respectively. At 31 January 2025 and 31 January 2024 the Company’s bank loans
amounted to £18,907,000 and £13,307,000 respectively. The facility is committed until 8 August 2027.
(iii) Credit risk. This is failure of the counterparty to a transaction to discharge its obligations under that transaction that
could result in the Company suffering a loss.
Management of the risk. Investment transactions are carried out with a large number of brokers, whose credit standing is
reviewed periodically by the Manager, and limits are set on the amount that may be due from any one broker;
– the risk of counterparty exposure due to failed trades causing a loss to the Company is mitigated by the review of
failed trade reports on a daily basis. In addition, both stock and cash reconciliations to the Custodians’ records are
performed on a daily basis to ensure discrepancies are investigated on a timely basis. The Group’s Compliance
department carries out periodic reviews of the custodian’s operations and reports its finding to the Aberdeen Group’s
Risk Management Committee. This review will also include checks on the maintenance and security of investments held;
– cash is held only with reputable banks whose credit ratings are monitored on a regular basis.
There are internal exposure limits to cash balances placed with counterparties. The credit worthiness of counterparties
is also reviewed on a regular basis.
None of the Company’s financial assets are secured by collateral or other credit enhancements.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 109
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Credit risk exposure. In summary, compared to the amounts in the Statement of Financial Position, the maximum
exposure to credit risk at 31 January was as follows:
2025 2024
Balance Maximum Balance Maximum
Sheet exposure Sheet exposure
£’000 £’000 £’000 £’000
Non-current assets
Investments at fair value through profit
or loss
472,652 – 474,087 –
Current assets
Cash and short term deposits 2,329 2,329 12,868 12,868
474,981 2,329 486,955 12,868
None of the Company’s financial assets is past due or impaired.
Fair values of financial assets and financial liabilities. The fair value of borrowings has been calculated at £42,021,000 as at
31 January 2025 (2024 – £37,223,000) compared to an accounts value in the financial statements of £48,659,000 (2024 –
£43,052,000) (notes 12 and 13). The fair value of each loan is determined by aggregating the expected future cash flows
for that loan discounted at a rate comprising the borrower’s margin plus an average of market rates applicable to loans
of a similar period of time and currency. All other assets and liabilities of the Company are included in the Statement of
Financial Position at fair value.
20. Fair value hierarchy
FRS 102 requires an entity to classify fair value measurements using a fair value hierarchy that reflects the significance of the
inputs used in making the measurements. The fair value hierarchy has the following classifications:
Level 1: unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2: inputs other than quoted prices included within Level 1 that are observable (ie developed using market data) for the
asset or liability, either directly or indirectly.
Level 3: inputs are unobservable (ie for which market data is unavailable) for the asset or liability.
110 Dunedin Income Growth Investment Trust PLC
The financial assets and liabilities measured at fair value in the Statement of Financial Position are grouped into the fair value
hierarchy at the reporting date as follows:
Level 1 Level 2 Level 3 Total
As at 31 January 2025 Note £’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Quoted equities a) 472,652 - - 472,652
Total 472,652 - - 472,652
Level 1 Level 2 Level 3 Total
As at 31 January 2024 £’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Quoted equities a) 474,087 - - 474,087
Total 474,087 - - 474,087
a) Quoted equities. The fair value of the Company’s investments in quoted equities has been determined by reference to
their quoted bid prices at the reporting date. Quoted equities included in Fair Value Level 1 are actively traded on
recognised stock exchanges.
21. Capital management policies and procedures
The Company’s capital management objectives are:
- to ensure that the Company will be able to continue as a going concern; and
- to maximise the return to its equity shareholders through an appropriate balance of equity capital and debt.
The capital of the Company consists of equity, comprising issued capital, reserves and retained earnings.
The Board monitors and reviews the broad structure of the Company’s capital. This review includes the nature and planned
level of gearing, which takes account of the Manager’s views on future expected returns and the extent to which revenue in
excess of that which is required to be distributed should be retained. The Company is not subject to any externally imposed
capital requirements.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 111
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
22. Related party transactions and transactions with the Manager
Directors’ fees and interests. Fees payable during the year to the Directors and their interests in the shares of the Company are
disclosed within the Directors’ Remuneration Report on page 71.
Transactions with the Manager. The Company has an agreement with the Aberdeen Group for the provision of management,
secretarial, accounting and administration services and also for the provision of promotional activities. Details of transactions
during the year and balances outstanding at the year end are disclosed in notes 4 and 5.
During the year, the Company received £20,000 in respect of returned, unclaimed dividends accumulated over a number of
years. The Board took the decision to donate these monies to the abrdn Charitable Foundation. The abrdn Charitable
Foundation is a registered charity. Its board of directors includes independent representation from the Aberdeen Group and
provides oversight and guidance for its charitable giving activities.
23. Subsequent events
Subsequent to the year end, the Company's NAV has decreased in common with falls in equity markets globally. At the date of
this Report the latest published NAV per share was 290.21p as at the close of business on 11 April 2025, a decline of 8.6%
compared to the NAV per share of 317.55p at the year end.
112 Dunedin Income Growth Investment Trust PLC
Other
Information
Investors can buy and sell shares
in the Company directly through a
stockbroker or other professional
adviser. Alternatively, for private
investors, there are a number of
online dealing platforms that
offer share dealing, ISAs and
other means to invest in the
Company.
Dunedin Income Growth Investment Trust PLC 113
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Alternative Investment Fund Managers
Directive (“AIFMD”) and Pre-Investment
Disclosure Document (“PIDD”)
The Company has appointed abrdn Fund Managers
Limited as its Alternative Investment Fund Manager
(“AIFM”) and The Bank of New York Mellon (International)
Limited as its depositary under the AIFMD.
The AIFMD requires the Company’s AIFM, to make
available to investors certain information prior to such
investors’ investment in the Company. Details of the
leverage and risk policies which the Company is required
to have in place under the AIFMD are published in the
Company’s PIDD which can be found on its website:
dunedinincomegrowth.co.uk. The periodic disclosures
required to be made by the AIFM under the AIFMD are set
out on page 120.
Investor Warning: Be alert to share
fraud and scams
Aberdeen has been contacted by investors informing it
that it has received telephone calls and emails from
people who have offered to buy their investment
company shares, purporting to work for Aberdeen or for
third party firms. Aberdeen has also been notified of
emails claiming that certain investment companies under
its management have issued claims in the courts against
individuals. These may be scams which attempt to gain
your personal information with which to commit identity
fraud or could be ‘boiler room’ scams where a payment
from you is required to release the supposed payment for
your shares. These callers/senders do not work for
Aberdeen and any third party making such offers/claims
has no link with Aberdeen.
Aberdeen does not ‘cold-call’ investors in this way. If you
have any doubt over the veracity of a caller, do not offer
any personal information and end the call.
The Financial Conduct Authority provides advice with
respect to share fraud and boiler room scams at:
fca.org.uk/consumers/scams
Shareholder Enquiries
For queries regarding shareholdings, lost certificates,
dividend payments, registered details and related
matters, shareholders holding their shares directly in the
Company are advised to contact the Registrar (see
Contact Addresses). Changes of address must be notified
to the Registrar in writing.
Any general queries about the Company should be
directed to the Company Secretary in writing (see
Contact Addresses) or by email to:
dunedin.income@aberdeenplc.com
How to Invest
Investors can buy and sell shares in the Company directly
through a stockbroker or indirectly through a lawyer,
accountant or other professional adviser. Alternatively, for
private investors, there are a number of online dealing
platforms that offer share dealing, ISAs and other means
to invest in the Company. Real-time execution-only
stockbroking services allow you to trade online, manage
your portfolio and buy UK listed shares. These sites do not
give advice. Some comparison websites also look at
dealing rates and terms.
Investors can, using certain platforms, arrange to have
dividends reinvested or establish regular savings to invest
in the shares of the Company. This can also be done under
the auspices of an ISA which provides tax efficiencies for
private investors in the treatment of income and
capital gains.
Discretionary Private Client Stockbrokers
If you have a large sum to invest, you may wish to contact
a discretionary private client stockbroker. They can
manage your entire portfolio of shares and will advise you
on your investments. To find a private client stockbroker
visit The Personal Investment Management and Financial
Advice Association at: pimfa.co.uk
Financial Advisers
To find an adviser who recommends on investment trusts,
visit: unbiased.co.uk
Regulation of Stockbrokers
Before approaching a stockbroker, always check that
they are regulated by the Financial Conduct Authority at:
fca.org.uk/firms/financial-services-register
Investor Information
114 Dunedin Income Growth Investment Trust PLC
How to Attend and Vote at Company
Meetings
Investors who hold their shares through a platform or
share plan provider (for example Hargreaves Lansdown,
Interactive Investor or AJ Bell) and would like to attend and
vote at Company meetings (including AGMs) should
contact their platform or share plan provider directly to
make arrangements.
Investors who hold their shares through platforms and
have their shares held through platform nominees, may
not necessarily receive notification of general meetings
and are advised to keep themselves informed of
Company business by referring to the Company’s
website. Where voting is required, and the Board
encourages shareholders to vote at all general meetings
of the Company, shareholders with their holdings in
nominees will need to instruct the nominee to vote on their
behalf and should do so in good time before the meetings.
For investors who hold their shares on a platform via a
nominee, the Association of Investment Companies has
provided helpful information on how to attend an AGM
and how to vote investment company shares held on
some of the major platforms. This information can be
found at: theaic.co.uk/how-to-vote-your-shares
Keeping You Informed
Information about the Company can be found on its
website: dunedinincomegrowth.co.uk, including share price
and performance data as well as London Stock Exchange
announcements, current and historic Annual and Half-
Yearly Reports, and the latest monthly factsheet on the
Company issued by the Manager. Investors can receive
updates via email by registering on the home page of
the Company’s website.
The Company’s Ordinary share price appears under the
heading ‘Investment Companies’ in the Financial Times.
Details are also available at: invtrusts.co.uk
LinkedIn: aberdeen Investment Trusts
X: @aberdeenTrusts
Facebook: aberdeen Investment Trusts
YouTube: @aberdeenInvestmentTrusts
Key Information Document (“KID”)
The KID relating to the Company and published by the
Manager can be found on the Company’s website.
Suitable for Retail/NMPI Status
The Company’s shares are intended for investors,
primarily in the UK, including retail investors, professionally-
advised private clients and institutional investors who are
seeking growth of income and capital from a high quality
portfolio invested mainly in companies listed or quoted in
the United Kingdom, and who understand and are willing
to accept the risks of exposure to equities.
Investors should consider consulting a financial adviser
who specialises in advising on the acquisition of shares
and other securities before acquiring shares. Investors
should be capable of evaluating the risks and merits of
such an investment and should have sufficient resources
to bear any loss that may result.
The Company currently conducts its affairs so that its
securities can be recommended by a financial adviser to
ordinary retail investors in accordance with the Financial
Conduct Authority’s rules in relation to non-mainstream
pooled investments (“NMPIs”) and intends to continue to
do so for the foreseeable future. The Company’s securities
are excluded from the Financial Conduct Authority’s
restrictions which apply to NMPIs because they are
securities issued by an investment trust.
Investor Information
Continued
Dunedin Income Growth Investment Trust PLC 115
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Aberdeen or Aberdeen Group
Aberdeen Group plc and its group of companies.
AIC
The Association of Investment Companies.
AIFMD
The UK version of the Alternative Investment Fund
Managers Directive and all implementing and delegating
legislation thereunder, as it forms part of UK law following
the UK’s departure from the EU. The AIFMD was originally
European legislation which created a European-wide
framework for regulating managers of ‘alternative
investment funds’ (“AIFs”). It is designed to regulate any
fund which is not a UCITS fund and which is managed
and/or marketed in the EU (and, now separately, the UK).
The Company has been designated as an AIF.
Benchmark
This is a measure against which an Investment Trust’s
performance is compared. The Company’s benchmark is
the FTSE All-Share Index. The index averages the
performance of a defined selection of listed companies
over specific time periods.
Call Option
An option contract which gives the buyer the right, but not
the obligation, to purchase a specified amount of an asset
at the strike price by a future specified date.
Closed-End Fund
A collective investment scheme which has a fixed number
of shares which are not redeemable from the fund itself.
Unlike open-ended funds, new shares/units are not
created by managers to meet demand from investors;
instead, shares are purchased (or sold) only in the market.
Closed-end funds are normally listed on a recognised
stock exchange, such as the London Stock Exchange, and
shares can be bought and sold on that exchange.
Discount
The amount by which the market price per share of an
Investment Trust is lower than the Net Asset Value per
share. The discount is normally expressed as a
percentage of the Net Asset Value per share. Refer to
Alternative Performance Measures on page 121.
Dividend Cover
Revenue return per share divided by the dividend per
share, expressed as a ratio. Refer to Alternative
Performance Measures on page 121.
Dividend Yield
The annual dividend expressed as a percentage of the
share price.
FCA
Financial Conduct Authority.
Gearing
Net gearing is calculated by dividing total borrowings less
cash and cash equivalents by shareholders’ funds,
expressed as a percentage. Refer to Alternative
Performance Measures on page 121.
Investment Manager
abrdn Investments Limited is a wholly owned subsidiary
of Aberdeen Group plc and acts as the Company’s
investment manager. It is authorised and regulated by
the FCA.
Investment Trust
A type of Closed-End Fund which invests in other
securities, allowing shareholders to share the risks, and
returns, of collective investment.
Key Information Document or KID
UK regulation previously required the Manager to make a
KID available to retail investors prior to them making any
investment decision. On 22 November 2024, new
legislation came into force in the UK which meant that
manufacturers, advisors and sellers of shares in a closed-
ended investment company that is UK-listed are no longer
required to produce the KID.
However, the Manager continues to publish a modified KID
for the Company because a number of platforms/market
participants still require prospective investors to confirm
that they have read the KID prior to a buy order being
placed. The modified KID is available via the Company’s
website. In addition to the KID, the Manager has developed
a Statement of Operating Expenses which is incorporated
into the Company’s factsheet and can also be found on
the Company’s website.
Glossary of Terms Glossary of Terms
116 Dunedin Income Growth Investment Trust PLC
Leverage
For the purposes of the AIFMD, leverage is any method
which increases the Company’s exposure, including the
borrowing of cash and the use of derivatives. It is
expressed as a ratio between the Company’s exposure
and its Net Asset Value and can be calculated on a gross
and a commitment method. Under the gross method,
exposure represents the sum of the Company’s positions
after the deduction of Sterling cash balances, without
taking into account any hedging and netting
arrangements. Under the commitment method, exposure
is calculated without the deduction of Sterling cash
balances and after certain hedging and netting positions
are offset against each other.
Manager, AIFM or aFML
abrdn Fund Managers Limited is a wholly owned
subsidiary of Aberdeen Group plc and acts as the
Company’s Alternative Investment Fund Manager. It is
authorised and regulated by the FCA.
Net Asset Value or NAV
The value of total assets less liabilities. Liabilities for this
purpose include current and long-term liabilities. The Net
Asset Value divided by the number of shares in issue
produces the Net Asset Value per Ordinary share.
NAV with debt at fair value
The Net Asset Value with debt valued divided by the
number of shares in issue where the Company’s
borrowings are valued using the discounted cash
flow basis.
Ongoing Charges
Ratio of expenses as a percentage of average daily
shareholders’ funds calculated as per the AIC’s industry
standard method. Refer to Alternative Performance
Measures on page 122.
Pre-Investment Disclosure Document
(“PIDD”)
The AIFM and the Company are required to make certain
disclosures available to investors in accordance with the
AIFMD. Those disclosures that are required to be made
pre-investment are included within a PIDD, which can be
found on the Company’s website.
Premium
The amount by which the market price per share of an
Investment Trust exceeds the Net Asset Value per share.
The premium is normally expressed as a percentage of
the Net Asset Value per share.
Price/Earnings Ratio
This is calculated by dividing the market price per share by
the earnings per share. The calculation assumes no
change in earnings but in practice the multiple reflects the
stock market’s view of a company’s prospects and profit
growth potential.
Prior Charges
The name given to all borrowings including debentures,
loans and overdrafts that are to be used for investment
purposes, reciprocal foreign currency loans, currency
facilities to the extent that they are drawn down, index-
linked securities, and all types of preference or preferred
capital, irrespective of the time until repayment.
Sustainability Disclosure Requirements
or SDR
The sustainability disclosure requirements and investment
labels regime as published by the Financial Conduct
Authority in November 2023.
Total Assets
Total assets less current liabilities (before deducting Prior
Charge as defined above), as per the Statement of
Financial Position.
Total Return
Total Return involves reinvesting the net dividend in the
month that the share price goes ex-dividend. The NAV
Total Return involves investing the same net dividend in the
NAV of the Company on the date to which that dividend
was earned. Refer to Alternative Performance Measures
on page 122.
UN Global Compact
A global corporate sustainability initiative, calling on
companies, investors and other participants to align
their strategies and operations with universal principles
on human rights, labour, the environment and
anti-corruption.
Glossary of Terms
Continued
Dunedin Income Growth Investment Trust PLC 117
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
UN Sustainable Development Goals
The Sustainable Development Goals (“SDGs”) or Global
Goals are a collection of 17 interlinked global goals
designed to be a "blueprint to achieve a better and more
sustainable future for all". The SDGs were set in 2015 by
the United Nations General Assembly and are intended to
be achieved by 2030.
Weighted Average Carbon Intensity
Average carbon intensity of the portfolio weighted by the
weight of the company in the portfolio.
118 Dunedin Income Growth Investment Trust PLC
The provenance of Dunedin Income Growth Investment
Trust PLC goes back to 1873 and to the origins of the
investment trust industry in Scotland. In 1873, a 28 year old
Robert Fleming (sometimes dubbed the “father of the
investment trust industry”), persuaded a group of
Dundee’s wealthiest investors to back his idea of forming
“the first Association in Scotland for investments in
American railroad bonds, carefully selected and widely
distributed, and where investments would not exceed
one-tenth of the capital in any one security”. Fleming, who
was later founder of the merchant bank that bore this
name, showed extraordinary commercial acumen at a
very young age. He was born in modest circumstances in
Dundee and was first apprenticed as office boy at 13, then
rose to become, at 21, book-keeper with the exporting
arm of Dundee’s largest textile merchant, Edward
Baxter & Son.
In 1870, the elderly Mr Baxter sent Robert Fleming to the
United States to represent him on business. Fleming
returned enthused about the investment opportunities
offered by the States, despite the country still suffering
from the aftermath of the American Civil War. The
“association” proved to be an attractive means for
investors to pool their resources, spread risk and put their
investments under full-time management. The new fund,
then known as The Scottish American Investment Trust,
was launched on 1 February 1873. The Scottish American
Investment Trust was partly modelled on the Foreign &
Colonial Government Trust that was launched in 1868.
Unlike Foreign & Colonial, which purchased overseas
government stocks, the new trust would invest in “The
Bonds of States, cities, railroads and other corporations in
the US, but chiefly in the mortgage bonds of railroads”.
John Guild, one of the chairmen, reported “while in this
country you could not lend money on first-class railway
debentures at over 4% or 4.5%, in America you could get
7% with the best security of this description”. Coupled with
the fact that railway infrastructure development in the UK
had by then become relatively mature, it was for this
reason that the United States was an attractive
destination for Scottish funds.
The original prospectus described the intended issue of
£150,000 in certificates of £100 each, paying interest of 6%
per annum. Such was the level of demand that the original
prospectus was withdrawn and a new one was printed
with a capital issue of £300,000. The trust started out with
30 stocks, each comprising no more than 10% of the
portfolio. Confusingly, a similar sounding investment trust
company, launched in Edinburgh, The Scottish American
Investment Company was formed in April 1873, just a few
months after Fleming’s launch in February 1873. In
Dundee, two almost identical issues were made in the
following two years, described as the “Second Issue” and
“Third Issue”. The three issues became three separate
trust companies, under the Joint Stock Companies Act, in
1879 – the First, Second and Third Scottish American Trust
Companies Ltd, but merged into a single trust company in
1969 as The First Scottish American Trust Company Ltd.
In 1984, The First Scottish American Trust Company Ltd
became part of the Dunedin Fund Managers’ stable of
trusts and was subsequently renamed in 1990 as Dunedin
Income Growth Investment Trust. Dunedin Fund
Managers merged with Edinburgh Fund Managers in
1996, which was then acquired by Aberdeen Asset
Management in 2003. Aberdeen Asset Management
merged with Standard Life in 2017 to form what is now the
Aberdeen Group.
In 2023, the Company celebrated its 150
th
anniversary
and returned to Dundee for its AGM.
The book entitled “The History of Dunedin Income
Growth Investment Trust PLC” is available on the
Company’s website.
Your Company’s History
Dunedin Income Growth Investment Trust PLC 119
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Issued Share Capital at 31 January 2025
134,949,033 Ordinary shares of 25p (153,677,935 including treasury shares)
Treasury Shares at 31 January 2025
18,728,902 Ordinary shares
Name Change
April 1990 Company name changed from “The First Scottish American Trust PLC” to Dunedin Income
Growth Investment Trust PLC
Share Capital History
April 1997 Capitalisation issue of four Ordinary shares of 25p issued for each existing Ordinary share
April 1999 Reduction of share capital by way of repayment of £840,000 of 3 ½% Preference stock
Year ended 31 January 2004 50,000 Ordinary shares purchased for cancellation
Year ended 31 January 2005 1,950,000 Ordinary shares purchased for cancellation
Year ended 31 January 2006 450,000 Ordinary shares purchased for cancellation and 450,000 Ordinary shares
purchased to hold in treasury
Year ended 31 January 2007 3,231,101 Ordinary shares purchased to hold in treasury
Year ended 31 January 2008 2,237,440 Ordinary shares purchased to hold in treasury, 1,972,800 treasury shares cancelled
Year ended 31 January 2009 1,026,007 Ordinary shares purchased to hold in treasury, 2,000,000 treasury shares cancelled
Year ended 31 January 2014 300,000 Ordinary shares sold from treasury
Year ended 31 January 2017 493,500 Ordinary shares purchased to hold in treasury
Year ended 31 January 2018 833,000 Ordinary shares purchased to hold in treasury
Year ended 31 January 2019 1,387,018 Ordinary shares purchased to hold in treasury
Year ended 31 January 2020 105,550 Ordinary shares purchased to hold in treasury
Year ended 31 January 2021 22,449 Ordinary shares purchased to hold in treasury
Year ended 31 January 2023 100,000 Ordinary shares sold from treasury
Year ended 31 January 2024 2,091,781 Ordinary shares purchased to hold in treasury
Year ended 31 January 2025 11,223,856 Ordinary shares purchased to hold in treasury
Share Capital History
120 Dunedin Income Growth Investment Trust PLC
The AIFM and the Company are required to make certain disclosures available to investors in accordance with the
Alternative Investment Fund Managers Directive (“AIFMD”). Those disclosures that are required to be made pre-
investment are included within a pre-investment disclosure document (“PIDD”) which can be found on the
Company’s website.
There have been no material changes to the disclosures contained within the PIDD since its most recent update
in April 2024.
The periodic disclosures as required under the AIFMD to investors are made below:
· information on the investment strategy, geographic and sector investment focus and principal stock exposures is
included in the Strategic Report;
· none of the Company’s assets are subject to special arrangements arising from their illiquid nature;
· the Strategic Report, note 19 to the financial statements and the PIDD together set out the risk profile and risk
management systems in place. There have been no changes to the risk management systems in place in the period
under review and no breaches of any of the risk limits set, with no breach expected;
· there are no new arrangements for managing the liquidity of the Company or any material changes to the liquidity
management systems and procedures employed by aFML; and
· all authorised Alternative Investment Fund Managers are required to comply with the AIFMD Remuneration Code. In
accordance with the Remuneration Code, the AIFM’s remuneration policy is available from the Company Secretary on
request, and the remuneration disclosures in respect of the AIFM’s reporting period for the year ended 31 December
2024 are available on the Company’s website.
Leverage
The table below sets out the current maximum permitted limit and actual level of leverage for the Company:
Gross Method Commitment Method
Maximum level of leverage 2.50 2.00
Actual level at 31 January 2025 1.22 1.22
There have been no breaches of the maximum level during the period and no changes to the maximum level of
leverage employed by the Company. There have been no changes to the circumstances in which the Company may
be required to post assets as collateral and no guarantees granted under the leveraging arrangement. Changes to the
information contained either within this Annual Report or the PIDD in relation to any special arrangements in place, the
maximum level of leverage which aFML may employ on behalf of the Company, the right of use of collateral or any
guarantee granted under any leveraging arrangement, or any change to the position in relation to any discharge of
liability by the Depositary will be notified via a regulatory news service without undue delay in accordance with
the AIFMD.
The information on this page has been approved for the purposes of Section 21 of the Financial Services and Markets Act
2000 (as amended by the Financial Services Act 2012) by abrdn Fund Managers Limited which is authorised and
regulated by the Financial Conduct Authority in the United Kingdom.
AIFMD Disclosures
(
Unaudited
)
Dunedin Income Growth Investment Trust PLC 121
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Alternative performance measures are numerical measures of the Company’s current, historical or future performance, financial
position or cash flows, other than financial measures defined or specified in the applicable financial framework. The Company’s
applicable financial framework includes FRS 102 and the AIC SORP. The Directors assess the Company’s performance against a
range of criteria which are viewed as particularly relevant for closed-end investment companies.
Dividend cover
Dividend cover measures the revenue return per share divided by total dividends per share, expressed as a ratio.
2025 2024
Revenue return per share a 13.80p 13.54p
Dividends per share b 14.20p 13.75p
Dividend cover a/b 0.97 0.98
Net gearing
Net gearing measures total borrowings less cash and cash equivalents divided by shareholders’ funds, expressed as a percentage.
Under AIC reporting guidance cash and cash equivalents includes net amounts due to and from brokers at the period end as well as
cash and short term deposits.
2025 2024
Borrowings (£’000) a 48,659 43,052
Cash (£’000) b 2,329 12,868
Amounts due to brokers (£’000) c 368 92
Amounts due from brokers (£’000) d – –
Shareholders’ funds (£’000) e 428,528 445,815
Net gearing (a-b+c-d)/e 10.90% 6.79%
Discount to net asset value per share with debt at fair value
The discount is the amount by which the share price is lower than the net asset value per share with debt at fair value, expressed as a
percentage of the net asset value with debt at fair value.
2025 2024
NAV per Ordinary share (p) (see note 17) a 322.47p 308.98p
Share price (p) b 285.00p 276.00p
Discount (a-b)/b 11.62% 10.67%
Alternative Performance Measures
122 Dunedin Income Growth Investment Trust PLC
Ongoing charges
The ongoing charges ratio has been calculated in accordance with guidance issued by the AIC as the total of investment
management fees and administrative expenses less non-recurring charges, expressed as a percentage of the average net asset
values with debt at fair value throughout the year.
2025 2024
Investment management fees (£’000) 1,727 1,740
Administrative expenses (£’000) 898 1,073
Less: non-recurring charges (£’000) (104) (17)
Ongoing charges (£’000) 2,521 2,796
Average net assets (£’000) 446,732 448,512
Ongoing charges ratio (excluding look-through costs) 0.56% 0.62%
Look-through costs
A
– 0.02%
Ongoing charges ratio (including look-through costs) 0.56% 0.64%
A
2024 is calculated in accordance with AIC guidance issued in October 2020 to include the Company’s share of costs of holdings in investment companies on a
look-through basis.
Total return
NAV and share price total returns show how the NAV and share price has performed over a period of time in percentage terms, taking
into account both capital returns and dividends paid to shareholders. Share price and NAV total returns are monitored against open-
ended and closed-ended competitors, and the Reference Index, respectively.
Share
Year ended 31 January 2025 NAV Price
Opening at 1 February 2024 a 309.0p 276.0p
Closing at 31 January 2025 b 322.5p 285.0p
Price movements c=(b/a)-1 4.4% 3.3%
Dividend reinvestment
A
d 4.6% 5.1%
Total return c+d +9.0% +8.4%
Share
Year ended 31 January 2024 NAV Price
Opening at 1 February 2023 a 302.8p 294.0p
Closing at 31 January 2024 b 309.0p 276.0p
Price movements c=(b/a)-1 2.0% –6.1%
Dividend reinvestment
A
d 4.7% 4.5%
Total return c+d +6.7% –1.60%
A
NAV total return involves investing the net dividend in the NAV of the Company with debt at fair value on the date on which that dividend goes ex-dividend. Share price total
return involves reinvesting the net dividend in the share price of the Company on the date on which that dividend goes ex-dividend.
Alternative Performance Measures
Continued
Dunedin Income Growth Investment Trust PLC 123
General
The Annual General Meeting will be held at InterContinental
Edinburgh, The George, 19-21 George Street, Edinburgh EH2
2PB at 12 noon on Thursday 22 May 2025.
The Company will also be hosting an online shareholder
presentation, which will be held at 11.00am on Wednesday
7 May 2025. Full details on how to register for the event can be
found at: bit.ly/abrdn-Dunedin-Income-2025
124 Dunedin Income Growth Investment Trust PLC
NOTICE IS HEREBY GIVEN that the Annual General Meeting of Dunedin Income Growth Investment Trust PLC
(the “Company”) will be held at InterContinental Edinburgh, The George, 19-21 George Street, Edinburgh EH2 2PB at 12
noon on Thursday 22 May 2025 for the following purposes:
Ordinary Business
To consider and, if thought fit, pass resolutions 1 to 10 (inclusive) as ordinary resolutions:
1. To receive and adopt the audited financial statements of the Company for the financial year ended
31 January 2025 and the reports of the Directors and the Auditor on those financial statements.
2. To receive, adopt and approve the Directors’ Remuneration Report (excluding the Directors’ Remuneration Policy)
for the financial year ended 31 January 2025 which appears on pages 70 to 72 of the Annual Report and Accounts.
3. To approve a final dividend of 4.60p per Ordinary share in respect of the financial year ended 31 January 2025.
4. To elect Mr Arun Kumar Sarwal as a Director of the Company.
5. To re-elect Mr Howard Williams as a Director of the Company.
6. To re-elect Ms Christine Montgomery as a Director of the Company.
7. To re-elect Ms Gay Collins as a Director of the Company.
8. To re-appoint Deloitte LLP as Auditor of the Company, to hold office from the conclusion of the Annual General
Meeting until the conclusion of the next Annual General Meeting of the Company.
9. To authorise the Directors to determine the remuneration of the Company’s Auditor.
10. That, in substitution for any existing authority under Section 551 of the Companies Act 2006 (the “Act”), but without
prejudice to the exercise of any such authority prior to the passing of this resolution, the directors of the Company
(the “Directors”) be and are hereby generally and unconditionally authorised, pursuant to and in accordance with
Section 551 of the Act, to exercise all the powers of the Company to allot shares in the Company (“Shares”) and to
grant rights to subscribe for or to convert any security into Shares in the Company (“Rights”) up to an aggregate
nominal amount of £10,815,749 or, if less, the number representing 33.33% of the issued Ordinary share capital of
the Company (excluding treasury shares) as at the date of the passing of this resolution on such terms as the
Directors may determine, provided that such authorisation expires (unless previously renewed, varied or revoked by
the Company in general meeting) at the conclusion of the next Annual General Meeting of the Company held after
the passing of this resolution or on 31 July 2026 (whichever is earlier) save that the Company may, at any time prior
to the expiry of such authority, make offers or enter into agreements which would or might require Shares to be
allotted or Rights to be granted after such expiry and the Directors may allot Shares or grant Rights in pursuance of
any such offers or agreements as if the authority conferred by this resolution had not expired.
To consider and, if thought fit, pass resolutions 11 and 12 as special resolutions:
11. That in substitution for any existing power under Sections 570 and 573 of the Companies Act 2006 (the “Act”) (but
without prejudice to the exercise of any such authority prior to the passing of this resolution), and subject to the
passing of Resolution 10 set out in the notice of the 2025 Annual General Meeting ("Resolution 10"), the directors of
the Company (the “Directors”) be and are hereby generally empowered, pursuant to Sections 570 and 573 of the
Act, to allot or make offers or agreements to allot equity securities (as defined in Section 560 of the Act) for cash
pursuant to the authority conferred by Resolution 10 and/or by way of a sale of treasury shares for cash (within the
meaning of Section 560(3) of the Act), as if Section 561(1) of the Act did not apply to any such allotment or sale
provided that this power shall be limited to:
Notice of Annual General Meetin
g
Dunedin Income Growth Investment Trust PLC 125
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
i. the allotment of equity securities and the sale of treasury shares (otherwise than pursuant to sub-paragraph (ii)
below) up to an aggregate nominal amount of £1,622,524 or, if less, the number representing 5% of the issued
Ordinary share capital of the Company (excluding treasury shares) as at the date of the passing of this
resolution, at a price of not less than the net asset value per share of the existing Ordinary shares at allotment or
sale, as determined by the Directors; and
ii. the allotment of equity securities by way of rights issue, open offer or other pre-emptive offer in favour of all
holders of Ordinary shares where the equity securities respectively attributable to the interests of all such
holders are either proportionate (as nearly as may be) to the respective number of Ordinary shares held by
them on a record date fixed by the Directors (subject to such exclusions, limitations, restrictions or other
arrangements as the Directors consider necessary or appropriate to deal with treasury shares, fractional
entitlements, record dates, legal, regulatory or practical problems in or under the laws of, or requirements of,
any regulatory body or any stock exchange in any territory or otherwise howsoever);
and shall expire (unless previously renewed, varied or revoked by the Company in general meeting) at the
conclusion of the next Annual General Meeting of the Company held after the passing of this resolution or on 31 July
2026 (whichever is earlier), save that the Company may, at any time prior to the expiry of such authority, make
offers or enter into agreements which would or might require equity securities to be allotted or treasury shares to
be sold after such expiry and the Directors may allot equity securities or sell treasury shares in pursuance of such
offers or agreements as if the power conferred by this resolution had not expired.
12. That, in substitution for any existing authority under Section 701 of the Companies Act 2006 (the “Act”), but without
prejudice to the exercise of any such authority prior to the passing of this resolution, the Company be and is hereby
generally and unconditionally authorised, for the purposes of Section 701 of the Act, to make one or more market
purchases (within the meaning of Section 693(4) of the Act) of fully paid Ordinary shares of 25p each in the capital
of the Company (“Ordinary shares”) on such terms and in such manner as the directors of the Company may from
time to time determine (either for cancellation or for retention as treasury shares for future re-issue, resale, transfer
or cancellation) provided that:
i. the maximum aggregate number of Ordinary shares hereby authorised to be purchased is 19,457,315 Ordinary
shares or, if less, the number representing 14.99% of the issued Ordinary share capital of the Company
(excluding treasury shares) immediately prior to the passing of this resolution;
ii. the minimum price (exclusive of expenses) which may be paid for an Ordinary share purchased pursuant to this
authority shall be 25p (being the nominal value of an Ordinary share);
iii. the maximum price (exclusive of expenses) which may be paid for an Ordinary share purchased pursuant to
this authority shall be the higher of:
a. 5% above the average of the middle market quotations of the Ordinary shares (as derived from the Daily
Official List of the London Stock Exchange) for the five business days immediately preceding the date of
purchase; and
b. the higher of the price of the last independent trade in Ordinary shares and the highest current
independent bid for Ordinary shares on the London Stock Exchange at the time the purchase is carried out;
and
126 Dunedin Income Growth Investment Trust PLC
iv. unless previously varied, revoked or renewed by the Company in a general meeting, the authority hereby
conferred shall expire at the conclusion of the next Annual General Meeting of the Company held after the
passing of this resolution or on 31 July 2026 (whichever is the earlier) save that the Company may at any time
prior to such expiry, enter into a contract or arrangement to purchase Ordinary shares under this authority
which will or may be completed or executed wholly or partly after the expiration of this authority and may make
a purchase of shares pursuant to any such contract or arrangement.
By order of the Board Registered Office:
abrdn Holdings Limited 1 George Street
Company Secretary Edinburgh EH2 2LL
14 April 2025
Notice of Annual General Meetin
g
Continued
Dunedin Income Growth Investment Trust PLC 127
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
Notes
i. A member entitled to attend and vote at the meeting may appoint a proxy or proxies to exercise all or any of his/her
rights to attend, speak and vote on his/her behalf at the meeting. A proxy need not be a member of the Company.
A member may appoint more than one proxy provided each proxy is appointed to exercise rights attached to
different shares. A member may not appoint more than one proxy to exercise the rights attached to any one share.
If you wish your proxy to speak on your behalf at the meeting you will need to appoint your own choice of proxy (not
the Chairman of the meeting) and give your instructions directly to them. A proxy form which may be used to make
such appointment and give proxy instructions accompanies this notice. If you do not have a proxy form and believe
that you should have one, or if you require additional forms or would like to appoint more than one proxy, please
contact the Company's Registrar, Equiniti Limited on +44 (0)371 384 2441. Charges for calling this number are
determined by the caller’s service provider. Lines open 8.30 a.m. to 5.30 p.m., Monday to Friday, excluding bank
holidays in England and Wales. If calling from overseas, please ensure the country code is used. In the case of joint
holders, where more than one of the joint holders purports to appoint a proxy, only the appointment submitted by
the most senior holder will be accepted. Seniority is determined by the order in which the names of the joint holders
appear in the Company's Register of Members in respect of the joint holding (the first-named being the most
senior). A member present in person or by proxy shall have one vote on a show of hands and on a poll every
member present in person or by proxy shall have one vote for every Ordinary share of which he/she is the holder.
ii. A form of proxy is enclosed. To be valid, any proxy form or other instrument of proxy and any power of attorney or
other authority, if any, under which they are signed or a notarially certified copy of that power of attorney or
authority should be sent to the Company’s Registrar, Equiniti Limited, Aspect House, Spencer Road, Lancing, West
Sussex BN99 6DA so as to arrive not less than 48 hours (excluding non-working days) before the time fixed for
the meeting.
iii. The return of a completed proxy form or other such instrument of proxy will not prevent a member attending the
Annual General Meeting and voting in person if he/she wishes to do so.
iv. CREST members who wish to appoint a proxy or proxies through the CREST electronic proxy appointment service
may do so for the meeting and any adjournment(s) thereof by using the procedures described in the CREST Manual
and by logging on to the website euroclear.com. CREST personal members or other CREST sponsored members,
and those CREST members who have appointed a voting service provider(s), should refer to their CREST sponsor or
voting service provider(s), who will be able to take the appropriate action on their behalf.
v. In order for a proxy appointment or instruction made using the CREST service to be valid, the appropriate CREST
message (a “CREST Proxy Instruction”) must be properly authenticated in accordance with Euroclear UK &
International Limited’s specifications, and must contain the information required for such instruction, as described in
the CREST Manual. The message, regardless of whether it constitutes the appointment of a proxy or is an
amendment to the instruction given to a previously appointed proxy must, in order to be valid, be transmitted so as
to be received by the Company’s Registrar (ID RA19) no later than 48 hours (excluding non-working days) before
the time of the meeting or any adjournment. For this purpose, the time of receipt will be taken to be the time (as
determined by the timestamp applied to the message by the CREST Application Host) from which the Company’s
Registrar is able to retrieve the message by enquiry to CREST in the manner prescribed by CREST. After this time any
change of instructions to proxies appointed through CREST should be communicated to the appointee through
other means.
vi. CREST members and, where applicable, their CREST sponsors, or voting service providers should note that
Euroclear UK & International Limited does not make available special procedures in CREST for any particular
message. Normal system timings and limitations will, therefore, apply in relation to the input of CREST Proxy
Instructions. It is the responsibility of the CREST member concerned to take (or, if the CREST member is a CREST
personal member, or sponsored member, or has appointed a voting service provider(s), to procure that his CREST
sponsor or voting service provider(s) take(s)) such action as shall be necessary to ensure that a message is
transmitted by means of the CREST system by any particular time. In this connection, CREST members and, where
applicable, their CREST sponsors or voting system providers are referred, in particular, to those sections of the
CREST Manual concerning practical limitations of the CREST system and timings.
128 Dunedin Income Growth Investment Trust PLC
vii. The Company may treat as invalid a CREST Proxy Instruction in the circumstances set out in Regulation 35(5)(a) of
the Uncertificated Securities Regulations 2001.
viii. If you are an institutional investor you may be able to appoint a proxy electronically via the Proxymity platform, a
process which has been agreed by the Company and approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io. Your proxy must be lodged by 12 noon on 20 May 2025 in order to be
considered valid. Before you can appoint a proxy via this process you will need to have agreed to Proxymity’s
associated terms and conditions. It is important that you read these carefully as you will be bound by them and they
will govern the electronic appointment of your proxy.
ix. The “vote withheld” option on the proxy form is provided to enable a member to abstain on any particular resolution.
It should be noted that an abstention is not a vote in law and will not be counted in the calculation of the proportion
of votes “for” or “against” a particular resolution.
x. The right to vote at the meeting is determined by reference to the Company’s register of members as at 6.30 p.m.
on 20 May 2025 or, if the meeting is adjourned, at 6.30 p.m. on the day which is two days (excluding non-working
days) prior to the adjourned meeting. Changes to entries on that register after that time shall be disregarded in
determining the rights of any member to attend and vote at the meeting.
xi. As at 14 April 2025 (being the latest practicable date prior to the publication of this document) the Company’s
issued share capital comprised 129,801,974 Ordinary shares of 25p each and 23,875,961 treasury shares. Each
Ordinary share carries the right to one vote at a general meeting of the Company and, therefore, the total number
of voting rights in the Company as at 14 April 2025 was 129,801,974.
xii. Any person holding 3% or more of the total voting rights of the Company who appoints a person other than the
Chairman of the meeting as his/her proxy will need to ensure that both he/she and his/her proxy complies with their
respective disclosure obligations under the UK Disclosure Guidance and Transparency Rules.
xiii. A person to whom this notice is sent who is a person nominated under Section 146 of the Companies Act 2006 to
enjoy information rights (a “Nominated Person”) may, under an agreement between him/her and the shareholder
by whom he/she was nominated, have a right to be appointed (or to have someone else appointed) as a proxy for
the meeting. If a Nominated Person has no such proxy appointment right or does not wish to exercise it, he/she may,
under any such agreement, have a right to give instructions to the shareholder as to the exercise of voting rights.
The statements of the rights of members in relation to the appointment of proxies in notes (i) to (iii) above do not
apply to a Nominated Person. The rights described in those notes can only be exercised by registered members of
the Company.
xiv. Biographical details of the Directors standing for re-election are set out on pages 58 to 60 of the Annual Report and
financial statements of the Company for the financial year ended 31 January 2025.
xv. Members who have general queries about the Annual General Meeting should contact the Company Secretary in
writing. Members are advised that any telephone number, website or email address which may be set out in this
notice of Annual General Meeting or in any related documents (including the proxy form) is not to be used for the
purposes of serving information or documents on, or otherwise communicating with, the Company for any
purposes other than those expressly stated.
Continued
Notice of Annual General Meetin
g
Dunedin Income Growth Investment Trust PLC 129
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
xvi. Members should note that, it is possible that, pursuant to requests made by members of the Company under
Section 527 of the Companies Act 2006, the Company may be required to publish on a website a statement setting
out any matter relating to the audit of the Company’s accounts (including the Auditor’s report and the conduct of
the audit) that are to be laid before the meeting or any circumstances connected with an auditor of the Company
ceasing to hold office since the previous meeting at which annual accounts and reports were laid in accordance
with Section 437 of the Companies Act 2006. The Company may not require the members requesting any such
website publication to pay its expenses in complying with Sections 527 or 528 of the Companies Act 2006. Where
the Company is required to place a statement on a website under Section 527 of the Companies Act 2006, it must
forward the statement to the Company’s Auditor no later than the time when it makes the statement available on
the website. The business which may be dealt with at the meeting includes any statement that the Company has
been required under Section 527 of the Companies Act 2006 to publish on a website.
xvii. No Director has a service contract with the Company. Copies of the Directors’ letters of appointment are available
for inspection on any day (except Saturdays, Sundays and public holidays in England and Wales) from the date of
this notice until the date of the meeting during usual business hours at the Company’s registered office and for 15
minutes prior to, and at, the meeting.
xviii. Further information regarding the meeting which the Company is required by section 311A of the Companies Act
2006 to publish on a website in advance of the meeting (including this notice) is available from the Company’s
website: dunedinincomegrowth.co.uk
xix. Members have a right under section 319A of the Companies Act 2006 to require the Company to answer any
question raised by a member at the Annual General Meeting, which relates to the business being dealt with at the
meeting, although no answer need be given: (a) if to do so would interfere unduly with the preparation of the
meeting or involve disclosure of confidential information; (b) if the answer has already been given on the
Company’s website; or (c) it is undesirable in the best interests of the Company or the good order of the meeting.
130 Dunedin Income Growth Investment Trust PLC
Dunedin Income Growth Investment Trust PLC 131
Strategic Report Governance Overview General Portfolio Other Information Financial Statements
132 Dunedin Income Growth Investment Trust PLC
Dunedin Income Growth Investment Trust PLC 133
Directors
David Barron (Chairman)
Gay Collins
Jasper Judd
Christine Montgomery
Arun Kumar Sarwal (appointed 1 February 2025)
Howard Williams
Registered Office & Company Secretary
abrdn Holdings Limited
1 George Street
Edinburgh EH2 2LL
Email: dunedin.income@aberdeenplc.com
Alternative Investment Fund Manager
abrdn Fund Managers Limited
280 Bishopsgate
London EC2M 4AG
Investment Manager
abrdn Investments Limited
1 George Street
Edinburgh EH2 2LL
Company Registration Number
SC000881 (Scotland)
Legal Entity Identifier (“LEI”)
549300PPXLZPR5JTL763
Website
dunedinincomegrowth.co.uk
LinkedIn: aberdeen Investment Trusts
X: @aberdeenTrusts
Facebook: aberdeen Investment Trusts
YouTube: @aberdeenInvestmentTrusts
Registrar
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex BN99 6DA
Shareholder help can be found at shareview.co.uk.
Alternatively, you can contact the Shareholder Helpline:
+44 (0)371 384 2441*
(*Lines open 8.30 a.m. to 5.30 p.m., Monday to Friday
excluding public holidays in England and Wales. Charges
for calling telephone numbers starting with ‘03’ are
determined by the caller’s service provider.)
If calling from overseas, please ensure the country code
is used.
Depositary
The Bank of New York Mellon (International) Limited
160 Queen Victoria Street
London EC4V 4LA
Stockbroker
JPMorgan Cazenove
25 Bank Street
Canary Wharf
London E14 5JP
Auditor
Deloitte LLP
110 Queen Street
Glasgow G1 3BX
Contact Addresses
dunedinincomegrowth.co.uk
Dunedin Income Growth
Investment Trust PLC
Annual Report 31 January 2025
A differentiated strategy seeking to deliver resilient income and capital growth,
while meeting our sustainable and responsible investing approach
For more information visit dunedinincomegrowth.co.uk
aberdeeninvestments.com