Dunedin Income Growth Investment Trust PLC
Report for the half year ended 31 July 2014
November 2014
Ben Ritchie, Senior Investment Manager
Aberdeen Asset Management
Dunedin Income Growth Investment Trust PLC
Objective
• The Company’s investment objective is to achieve growth of income and capital from a portfolio invested
mainly in companies listed or quoted in the United Kingdom
Benchmark
• FTSE All-Share Index total return
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Financial highlights and performance
Performance (total returnA)
Six months ended
31 Jul 14
%
Year ended
31 Jan 13
%
Net asset value total returnB
+6.9
+8.7
Share price total return
+6.1
+8.6
FTSE All-Share Index
+4.5
+10.1
31 Jul 14
31 Jan 14
% change
Total assets (£’000)C
460,490
437,058
+5.4
Total shareholders’ funds (£’000)D
421,118
403,526
+4.4
Net asset value per Ordinary shareD
278.83p
267.17p
+4.4
Net asset value per Ordinary shareE
274.37p
262.34p
+4.6
Share price per Ordinary share (mid)
269.50p
259.75p
+3.8
1.1%
1.6%
Premium to net asset valueEF
A
Capital return plus net dividends reinvested
Debt at fair value
C Defined as total shareholders’ funds before deduction of borrowings
D Debt at par value
E Debt at fair value
F These premiums are lower than the numbers that appear in the statutory accounts because they are calculated in accordance with AIC guidelines (capital only)
Past Performance is not a guide to future results
Source: Dunedin Income Growth Investment Trust PLC, Annual Report to 31 Jul 14
B
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Long history of steady dividend growth
Pence
12
10.00 10.25 10.25 10.25
10
9.00
8
6
11.10
10.65 10.75
5.08
5.15
5.32
5.50
5.78
6.00
6.18
6.35
6.55
6.75
7.00
7.25
7.55
8.20
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2
0
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
• Historic yield 4.3% as at November 2014, a 19% premium to the FTSE All Share
• Interim dividend maintained at 2.575p
• Revenue reserves of 8.2p (up 10.8% yoy) provide support and flexibility for future income distribution
• Quarterly dividend distribution with equal payments in August, November, February and a final balancing
payment in May
Past Performance is not a guide to future results
4 Source: Dunedin Income Growth Investment Trust PLC, Annual Report to 31 Jul 14, WINS, Bloomberg 10th November 2014,
Sector breakdown
31 Jan 14
31 Jul 14
Financials
Oil & Gas
Consumer Goods
Health Care
Utilities
Consumer Services
Industrials
Telecommunications
Basic Materials
Technology
0%
Source: Aberdeen Asset Managers, Jul 14
5
5%
10%
15%
20%
25%
Top twenty largest investments
Market value
2014
£’000
Total assets
%
Oil & Gas Producers
24,831
5.4
HSBC Holdings
Banks
20,466
4.5
British American Tobacco
Tobacco
20,445
4.4
GlaxoSmithKline
Pharmaceuticals & Biotechnology
20,111
4.4
Centrica
Gas, Water & Multi-utilities
19,112
4.2
Prudential
Life Insurance
18,666
4.1
Unilever
Food Producers
17,784
3.9
AstraZeneca
Pharmaceuticals & Biotechnology
17,248
3.7
BHP Billiton
Mining
16,618
3.6
Pearson
Media
15,198
3.3
190,479
41.5
​Company
Sector
Royal Dutch Shell ‘A’
Top ten equity investments
National Grid
Gas, Water & Multi-utilities
14,800
3.2
BP
Oil & Gas Producers
13,683
3.0
Cobham
Aerospace & Defence
13,648
3.0
ENI
Oil & Gas Producers
13,579
3.0
Standard Chartered
Banks
12,460
2.7
Zurich Financial Services
Non-life Insurance
12,070
2.6
Total
Oil & Gas Producers
11,738
2.6
Vodafone
Mobile Telecommunications
11,661
2.5
Close Brothers
Financial Services
11,528
2.5
Roche
Pharmaceuticals & Biotechnology
11,207
2.4
316,853
69.0
Top twenty equity investments
Source: Dunedin Income Growth Investment Trust PLC, Annual Report to 31 Jul 14
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Outlook
• Equity markets have become increasingly volatile
• Smaller cap and “growth” stocks look fully valued
• UK economy is performing relatively well though it now looks to be slowing
• We continue to be cautious on the wider outlook for the global economy
• Aggregate corporate earnings likely to continue to remain under pressure
• FX headwinds have eased in recent months but will remain a headwind into 2015
But
• DIGIT’s yield remains relatively attractive
• Interim dividend season has passed largely in line with our expectations
• More volatile markets are beginning to throw out some stock specific opportunities
• Focus is on returning to real growth in dividend distribution and preserving capital in challenging market
conditions
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Contact details
Should you require further information please do not hesitate to contact us:
Private investors: 0500 00 00 40
Institutional investors:
Andrew Leigh +44 (0)207 463 6312
or
Kenneth Harper +44 (0)131 528 4224
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Disclaimer
Issued by Aberdeen Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority in
the United Kingdom. A member of the Aberdeen Asset Management group of companies. Registered Office:
10 Queen’s Terrace, Aberdeen, AB10 1YG.
Viewers should remember that the price of shares and the income from them may go down as well as up and
investors may not get back the full amount invested on disposal of the shares. Past performance is no
guarantee of future performance. The use of gearing is likely to lead to a volatility in the Net Asset Value
(NAV), meaning that a relatively small movement either down or up in value of the trusts total assets, will
result in a magnified movement in the same direction, of that NAV.
There is no guarantee that the market price of shares in investment trusts will fully reflect their underlying
NAV. Investment trusts should be considered only as part of a balanced portfolio, of which they should not
form a disproportionate part. Under no circumstances should this information be considered as an offer, or
solicitation, to deal in investments.
This information does not constitute advice or a personal recommendation for which the duty of suitability
would be owed by us, and you should seek your own advice as to the suitability of any investment matter
mentioned here.
The information contained herein, including any expressions of opinion or forecast, has been obtained from or
is based upon, sources believed by us to be reliable but is not guaranteed as to the accuracy or
completeness.
No part of this presentation may be reproduced in any manner without prior approval.
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