15th Apr 2025 15:18
(Alliance News) - Dunedin Income Growth Investment Trust PLC on Tuesday said its total return fell short of its benchmark for its most recent financial year, as a result of "challenging market conditions".
The UK-focused investment fund said its net asset value total return for the year that ended January 31 was 9.0%, underperforming against a 17.1% return on its benchmark, the FTSE All-Share index, but improved from a 6.7% return in financial 2024.
Its share price total return was 8.4%, compared to a negative 1.6% return the year before.
"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," said Chair David Barron.
"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."
Dunedin Income Growth declared a final dividend of 4.60 pence per share. This brought its total dividend for the year to 14.20p, up 3.3% on-year from 13.75p.
Its pretax return for the year increased 48% to GBP34.4 million from GBP23.2 million.
Looking ahead, Chair Barron said: "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."
Shares in Dunedin Income Growth were up 1.4% at 283.00 pence each in London on Tuesday afternoon. The stock is up 1.8% over the past year.
By Emily Parsons, Alliance News reporter
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