For more information visit dunedinincomegrowth.co.uk
aberdeeninvestments.com
dunedinincomegrowth.co.uk
Dunedin Income Growth
Investment Trust PLC
Annual Report 31 January 2026
A differentiated, UK-centric strategy, targeting rising income and capital growth,
aligned with our sustainable investing approach
Dunedin Income Growth Investment Trust PLC 121
Directors
Howard Williams (Chairman)
Gay Collins
Katrina Hart (appointed 1 March 2026)
Christine Montgomery
Arun Kumar Sarwal
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
aberdeen Investment Trusts
@aberdeenTrusts
aberdeen Investment Trusts
@aberdeenInvestmentTrusts
Registrar
Equiniti Limited
Highdown House
Yeoman Way
Worthing
West Sussex BN99 3HH
Shareholder help can be found at shareview.co.uk.
Alternatively, you can contact the Shareholder Helpline:
+44 (0)371 384 2441*
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excluding public holidays in England and Wales. Charges
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If calling from overseas, please ensure the country code
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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
Company Information and Contacts
Dunedin Income Growth Investment Trust PLC 1
“The Board is pleased to announce a total
dividend of 19.10p per share, an increase of
34.5% compared to the previous year,
providing a dividend yield of 6.2%.”
Howard Williams, Chairman
“The portfolio’s differentiated positioning in
high‑quality, resilient businesses looks unusually
well priced. The valuation premium relative
to the wider UK market has compressed to
levels not seen in many years.”
Ben Ritchie and Rebecca Maclean,
Aberdeen
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2 Dunedin Income Growth Investment Trust PLC
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 4
Financial Calendar 5
Financial Highlights 6
Your Company’s History 7
Strategic Report
Chairman’s Statement 10
Investment Manager’s Review 14
Ten Largest Investments 19
Portfolio 20
Sector and Geographical Analysis 22
Investment Case Studies 25
Performance 26
Information About the Investment Manager 29
Investment Process 30
Sustainable Investment Approach 32
Overview of Strategy 35
Promoting the Success of the Company 42
Governance
Board of Directors 48
Directors’ Report 51
Directors’ Remuneration Report 60
Audit & Risk Committee’s Report 63
Financial Statements
Statement of Directors’ Responsibilities 68
Independent Auditor’s Report 69
Statement of Comprehensive Income 77
Statement of Financial Position 78
Statement of Changes in Equity 79
Statement of Cash Flows 80
Notes to the Financial Statements 81
Other Information
Investor Information 102
Glossary of Terms 104
Share Capital History 106
AIFMD Disclosures (Unaudited) 107
Alternative Performance Measures 108
General
Notice of Annual General Meeting 112
Company Information and Contacts 121
Contents
Dunedin Income Growth Investment Trust PLC 3
Strategic Report Financial Statements Overview Governance General Other Information
A differentiated, UK-centric strategy, targeting rising income and capital growth, aligned
with our sustainable investing approach.
A stronger income proposition for shareholders
We have enhanced our income proposition with a dividend reset equivalent to 6.0% of
NAV*, offering an attractive notional yield compared to peers in the UK Equity Income
sector. Looking ahead, we plan to maintain our progressive dividend policy, aiming to
grow dividends over time while maintaining flexibility and resilience. With over 150
years of history, Dunedin Income Growth has a long-standing record of delivering for
investors. For more than 45 years, we have paid a steady or rising dividend and are
proud to be recognised as an AIC ‘Next Generation Dividend Hero’. The Company
continues to focus on high-quality companies and long-term capital growth,
supported by strong distributable reserves and a disciplined investment approach.
Focused investing in quality companies, primarily listed in the UK
Unlike many UK Equity Income investment trusts that focus on lowly-valued stocks, we
prioritise quality. We invest in around 40 carefully chosen companies with strong
financial foundations and long-term growth potential, making the Company a
compelling complement to more value-driven strategies. Our portfolio is actively
managed, with the investment team supported by a dedicated group of analysts
across the UK and Europe, delivering deep insight into the businesses we invest in.
Seeking growth that’s good for the future
We look for companies we believe can deliver reliable, long-term income in a
changing world. Our definition of quality goes beyond financial metrics – we consider
leadership strength, governance standards, sustainable practices, industry trends,
competitive advantages, and financial resilience. We assess both risks and
opportunities, focusing on businesses with resilient business models and a clear
commitment to acting responsibly. As active shareholders, we engage regularly with
company leadership and use our voting power to support positive change.
*as at 31 July 2025
Company Summary
4 Dunedin Income Growth Investment Trust PLC
Dividend yield
A
Net asset value total return per Ord share
AB
6.2% 8.2%
2025 5.0% 2025 9.0%
Share price total return per Ord share
A
Revenue return per Ord share
13.8% 13.6
p
2025 8.4% 2025 13.8p
Ongoing charges
A
Discount to net asset value
AB
0.57% 7.5%
2025 0.56% 2025 11.6%
A
Alternative Performance Measure (see pages 108 to 110).
B
With debt at fair value (see page 92).
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
309.0
302.8
309.0
322.4
332.9
22 23 24 25 26
310.0
294.0
276.0
285.0
308.0
22 23 24 25 26
12.90
13.10
13.75
14.20
19.10
22 23 24 25 26
Performance Hi
g
hli
g
hts
Dunedin Income Growth Investment Trust PLC 5
Strategic Report Financial Statements Overview Governance General Other Information
Calendar
Online shareholder presentation
8 May 2026
Annual General Meeting (London)
21 May 2026
Expected payment dates of quarterly dividends
29 May 2026
28 August 2026
27 November 2026
26 February 2027
Half year end
31 July 2026
Expected announcement of results for the
six months ending 31 July 2026
September 2026
Financial year end
31 January 2027
Expected announcement of results for the
year ending 31 January 2027
April 2027
Financial Calendar
6 Dunedin Income Growth Investment Trust PLC
31 January 2026 31 January 2025 % change
Total assets (£’000) (see page 105 for definition) 442,879 477,187 –7.2
Equity shareholders’ funds (£’000) 393,526 428,528 –8.2
Market capitalisation (£’000) 370,209 384,605 –3.7
Net asset value per Ordinary share* 327.40p 317.55p 3.1
Net asset value per Ordinary share with debt at fair value
A
* 332.88p 322.47p 3.2
Share price (mid)* 308.00p 285.00p 8.1
FTSE All-Share Index* 5,511.53 4,710.58 17.0
* Capital only movements
Discount (difference between share price and net asset value)
Discount where borrowings are deducted at fair value
A
7.5% 11.6%
Gearing (see page 104 for definition)
Net gearing
A
11.3% 10.9%
Dividends and earnings
Total return per share 22.00p 23.90p –7.9
Revenue return per share 13.64p 13.82p –1.3
Total dividend per share for the year 19.10p 14.20p 34.5
Dividend cover
A
0.71 0.97
Revenue reserves
Prior to payment of third and final dividends
B
17.94p 17.65p
After payment of third and final dividends
BC
6.29p 9.85p
Operating costs
Ongoing charges
AD
0.57% 0.56%
A
Considered to be an Alternative Performance Measure as defined on pages 108 and 109.
B
Calculated by dividing the revenue reserve per the Statement of Financial Position on page 78 by the number of shares in issue at the reporting date per note 16 on page 91.
C
Third interim dividend for the year ended 31 January 2026 of 4.25p per share (2025 – 3.2p). Final dividend for the year ended 31 January 2026 of 7.4p per share (2025 – final
dividend of 4.6p). See note 16 on page 91 for further details.
D
Calculated in accordance with the latest AIC guidance.
Financial Hi
g
hli
g
hts
Dunedin Income Growth Investment Trust PLC 7
Strategic Report Financial Statements Overview Governance General Other Information
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”, covering the life of the
Company from 1873 to 2018 is available on the
Company’s website.
Your Company’s History
8 Dunedin Income Growth Investment Trust PLC
Strategic Report
4.2% of the Company’s
total assets are invested in the
Gas, Water and Multi-utilities
sub-sector (2025: 6.0%).
Dunedin Income Growth Investment Trust PLC 9
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.
10 Dunedin Income Growth Investment Trust PLC
Highlights
· Total dividend of 19.10p per share, an increase of 34.5%
compared to the previous year.
· Dividend yield of 6.2% at the year end.
· 14.8 million shares bought back, representing 10.9% of
issued share capital.
· NAV total return of 8.2%.
· Share price total return of 13.8%.
Review of the Period
A key development during the year was the Board’s
announcement of a new dividend policy, increasing the
dividend by 34.5% and producing a share price yield of
6.2%. Full details of the new policy are set out below. The
Board has made these changes in the expectation that
they will lead to an increase in demand for the Company’s
shares over time.
The Company delivered another period of solid NAV and
share price performance during the year ended 31
January 2026. The net asset value (“NAV”) total return was
8.2% and the share price total return was 13.8%, reflecting
a narrowing of the discount at which the shares trade to
the NAV. (In the financial year ended 31 January 2025, the
NAV total return was 9.0% and the share price total return
was 8.4%.)
However, performance for the year lagged the wider
market by some margin, with the benchmark FTSE All-
Share Index producing a total return of 21.1%. While it is
disappointing to see the Company’s NAV and share price
underperform, the benchmark’s strong return was largely
driven by returns in specific sectors, namely, Banking,
Aerospace & Defence and Basic Materials, to which your
Company had limited exposure. This positioning reflects
the Investment Manager’s quality-focused and
sustainability-aligned investment approach which
continued to face headwinds as investors favoured
cheaper, more cyclical stocks. Performance was also
constrained by AI-related uncertainty, which led to some
indiscriminate selling in technology and information
services companies within the portfolio, despite these
holdings maintaining robust operational performance.
Overall, a small number of large benchmark constituents
not held in the portfolio, combined with style headwinds
and sentiment pressures, drove the relative
underperformance.
Given the de-rating of higher Quality stocks, it is perhaps
not surprising that relative performance has been so
challenged. However, the Investment Manager believes
that such stocks are now trading on highly attractive
valuations and is fully committed to maintaining its
investment approach. Performance can rebound quickly -
when the Quality style returns to favour – and the
Investment Manager’s strategy has delivered strong
outperformance in the past.
“The Company delivered another
period of solid NAV and share price
performance during the year ended
31 January 2026. The NAV total return
was 8.2% and the share price total
return was 13.8%.”
A more detailed review of performance for the year is
included in the Investment Manager’s Review on pages
14 to 18.
Sustainability and Responsible Investment
Criteria
The Company remains committed to its sustainability
ambitions which it believes support long term investing,
help identify companies with resilient and growing
dividends and is fully aligned with the Investment
Manager’s process. Applying sustainable and responsible
investing principles also enables the Investment Manager
to reduce risks in the portfolio. This is achieved by
excluding companies whose business models face
significant ESG-related threats, helping the Investment
Manager identify companies positioned to benefit
positively from sustainability themes, and creating
opportunities for engagement to improve companies’
performance and enhance shareholder value.
The Sustainable Investment Approach, including the
negative screening criteria, is set out on pages 32 to 34.
During the year, the Board and Investment Manager spent
considerable time reviewing the negative screening
criteria to ensure that they remain appropriate to the
Company’s objectives. Following this work, the Board has
approved a number of changes which are expected to be
introduced during the first half of the current financial
year. These changes are evolutionary in nature and are
designed to align with best practice, which has also
evolved in recent years, increase reporting transparency
and provide the Investment Manager with greater
flexibility in managing the portfolio.
Chairman’s Statement
Dunedin Income Growth Investment Trust PLC 11
Strategic Report Financial Statements Overview Governance General Other Information
At the headline level, the most significant changes in terms
of increasing the Investment Manager’s flexibility are to
allow greater flexibility to invest in Aerospace & Defence,
permit investment in Nuclear Energy and modify
restrictions around investment in Natural Resource
companies. As a consequence, the negative screening
criteria, which currently exclude approximately 23% of the
benchmark FTSE All-Share Index, will reduce the
exclusions to around 13%. More details of the updated
criteria will be published on the Company’s website, in
the Pre-investment Disclosure Document and in future
Annual Reports.
Earnings
Earnings per share for the year were 13.6p, slightly below
the 13.8p reported in the previous year. Investment
income declined by 9.2% over the period reflecting a
reduction of 10.9% in the Company’s capital base
following implementation of the share buy back
programme. Notwithstanding this, earnings growth from
the underlying portfolio companies has generally
remained positive, underscoring the resilience of the
portfolio. The Company has also benefited from the
receipt of a number of special dividends which provided
an additional uplift to income.
Income generated by options activities remained a
contributor, accounting for 8.7% of total income, albeit this
was lower than the 10.6% recorded in the previous year.
Elsewhere, the Board has sought to control costs
wherever possible and believes that the Company’s on-
going charges ratio of 0.57% remains competitive within
the sector, underpinned by a low marginal investment
management fee of 0.25% charged on net assets above
£425 million.
Dividends
As mentioned earlier, during the year the Board
announced a significant increase in dividend distributions,
targeting at least 19.10p per share for the year,
representing 6.0% of the NAV as at 31 July 2025. This
represents an attractive yield compared to cash, the FTSE
All-Share Index and peers in the UK Equity Income sector.
The Board also stated its intention to continue with a
progressive dividend policy with growth in absolute terms
in future years and building on the successful long-term
track record of dividend increases. The Company will fund
the dividend from a combination of revenue and capital
generation, utilising one of the key advantages of the
investment company structure.
The Board’s decision reflects the importance of dividends
in the Company’s long term total return and their value to
shareholders seeking reliable and sustainable income. The
Board has also observed the significant change in
corporate distribution policies which has seen UK
companies increasingly favour share buy backs over
dividend distributions. The revised approach therefore
aligns better with this change in corporate behaviour.
The Board does not expect significant changes to the
investment process as a result of the new dividend policy.
The Investment Manager will continue to focus on high-
quality companies and long-term capital and income
growth, supported by a disciplined investment approach
and an integrated sustainability focus. However, the policy
will give the Company’s portfolio managers additional
flexibility to focus on delivering total returns.
“A key development during the year
was the Board’s announcement of a
new dividend policy, increasing the
dividend by 34.5% and producing a
share price yield of 6.2%.”
Three interim dividends amounting to 11.70p per share
have already been paid. The Board is proposing a final
dividend of 7.40p per share, payable on 29 May 2026 to
shareholders on the register on 8 May 2026. This will bring
total distributions to 19.10p per share for the year,
equivalent to a dividend yield of 6.2% based on the year
end share price.
This represents the 42
nd
dividend increase in the past 46
years, with distributions maintained in the other four years.
In addition, having increased the dividend in every year
since 2011, the Company is classified by the Association of
Investment Companies as part of the ‘Next Generation of
Dividend Heroes’, which recognises those investment
trusts that have raised their dividend for between 10 and
19 consecutive years.
For future financial years, the Board expects to declare
three equal interim dividend payments followed by a
balancing final dividend.
12 Dunedin Income Growth Investment Trust PLC
Gearing
The Company currently has 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. A Sterling equivalent of £19.6 million
was
drawn down from the facility at the year end.
With debt valued at par, net gearing increased slightly
from 10.9% to 11.3% during the year. The Board believes
that the prudent use of gearing will enhance both revenue
and capital returns over the long term. With the revolving
credit facility only partially drawn, the Investment
Manager retains flexibility should attractive additional
investment opportunities arise.
Discount
With the Company’s discount relatively wide at the last
year end, the Board continued to use the share buyback
authority granted by shareholders at the AGM. During the
year, the Company bought back 14.8 million shares to
hold in treasury, representing 10.9% of the issued share
capital. The weighted average discount of the shares
bought back was 8.9% and the buy backs provided an
accretion of 1.1% to the NAV per share. The discount at
the end of the year was 7.5% (2025: 11.6%).
The Board will seek to renew the buy back authority at the
AGM and will continue to repurchase shares when it
considers this to be in shareholders’ best interests.
Alongside this, the Board and Investment Manager
continue to focus on improving relative performance, and
delivering a targeted investor relations and marketing
programme, which are key to achieving a higher rating for
the Company’s shares. The Board is particularly aware
that relative investment performance over the past two
years has been below expectations and will continue to
monitor the Investment Manager closely and challenge
the investment process robustly in anticipation of
improved performance.
Annual General Meeting (“AGM”) and Online
Shareholder Presentation
AGM
The AGM will be held at 12 noon on Thursday 21 May 2026
at Aberdeen’s offices at 18 Bishops Square, London, E1
6EG. 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: www.theaic.co.uk/how-to-
vote-your-shares
The Notice of the AGM is contained on pages 112 to 117.
Online Shareholder Presentation
In previous years, for those who are unable to attend the
AGM or for anyone who simply wishes to learn more
about the Company, we have hosted an Online
Shareholder Presentation. Given the popularity of these
events, we will be hosting one again this year at 11.00am
on Friday 8 May 2026. 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.
Full details on how to register for the online event are
available on the Company’s website.
Board Succession
Since the end of the year, the Board was pleased to
announce the appointment of Katrina Hart as an
independent non-executive Director of the Company with
effect from 1 March 2026.
Katrina is an experienced non-executive director and has
chaired a number of investment company boards. Her
biography is included on page 49 and, in accordance with
the Articles of Association, Katrina will stand for election at
the AGM.
Katrina’s appointment complements the appointment of
Arun Kumar Sarwal on 1 February 2025 and brings the
number of Directors on the Board back to five.
Chairman’s Statement
Continued
Dunedin Income Growth Investment Trust PLC 13
Strategic Report Financial Statements Overview Governance General Other Information
Outlook
As noted above, relative performance over the past year
has been challenging. Investors have favoured cyclical
and value-orientated sectors, while high-quality
technology franchises and the UK mid-cap segment -
areas where the Investment Manager sees many mis-
priced opportunities – have underperformed.
However, the Investment Manager believes that the
portfolio’s differentiated positioning in high-quality,
resilient businesses is very attractively valued with the
valuation premium relative to the wider UK market
compressed to levels not seen for several years, despite
the portfolio continuing to exhibit strong profitability and
balance sheet characteristics. The Investment Manager
remains focused on identifying sustainable businesses
capable of generating resilient income streams which
should generate strong returns for shareholders when
supported by disciplined portfolio construction, selective
use of gearing and careful management of downside risk.
“The Investment Manager believes
that the portfolio’s differentiated
positioning in high-quality, resilient
businesses is very attractively valued
with the valuation premium relative to
the wider UK market compressed to
levels not seen for several years.”
As I write, events in the Middle East are casting a long
shadow over an increasingly uncertain economic outlook,
causing significant volatility in bond, equity and
commodity markets across the globe. Investors are
grappling with the prospect of a sustained oil price shock
at a time when labour markets are showing signs of
weakness, inflation remains stubbornly above Central
Bank targets and against a backdrop of stretched
government finances. Faced with such a challenging
cocktail of macro-economic forces, it does not require a
huge leap to envisage investors rotating out of lower
quality, pro-cyclical stocks and into more defensive and
higher quality names. Time will tell.
Meanwhile, the introduction of a structurally higher
dividend policy has reinforced the Company’s positioning
as a highly differentiated proposition within the largely
homogeneous UK Equity Income sector. The Board will
remain vigilant in continuing to scrutinise our Investment
Manager’s performance and the investment process and
team that supports this. Over time, the Board believes that
the Company’s distinct long term investment approach,
together with the new dividend policy, should support the
objective of delivering attractive shareholder returns and
help the Company’s shares trade closer to NAV.
The Board remains grateful to shareholders for their
continued support.
Howard Williams
Chairman
8 April 2026
14 Dunedin Income Growth Investment Trust PLC
Introduction
Over the twelve months to 31 January 2026, the Company
delivered a solid absolute net asset value (“NAV”) total
return of 8.2% and a share price total return of 13.8%. Over
the same period, the FTSE All‑Share Index returned 21.1%,
meaning that the Company did not keep pace with a very
strong market. Relative underperformance was
predominantly driven by lower returns from high quality
companies and partly by strong outperformance from
sectors of the market excluded by our sustainability
criteria. Helping to offset these dynamics were a number
of exceptionally strong individual stock contributors,
while most companies held in the portfolio continued to
deliver robust operational results, including good
earnings growth, strong cash generation and ongoing
capital returns.
Market Backdrop
The UK equity market delivered another exceptional
return over the year, reaching new all-time highs.
Benchmark gains were driven by a relatively narrow set of
cyclical areas, with strength in Banking, Aerospace &
Defence and Basic Materials playing a prominent role. In
contrast, the higher quality part of the market lagged
significantly. This was particularly evident in Technology
and Information Services, where concerns around the
impact of artificial intelligence (“AI”) weighed on investor
confidence, despite strong underlying financial delivery. As
an illustration, the MSCI UK Quality Index was up just 5.1%
over the period. It was also a period where we saw strong
returns from sectors which we are largely precluded from
investing in given our sustainability focus, namely
Aerospace & Defence, Tobacco and Metals & Mining. Rolls
Royce (not held in the portfolio), for example was up over
100% over the course of the year. We estimate that the
impact of sustainability exclusions reduced returns by
around 5%.
This matters for the Company because we are
intentionally positioned to meet our long-term objective of
delivering consistent growth in both capital and income.
We run a high‑conviction portfolio, focused on selecting
high quality, financially resilient businesses with durable
growth prospects and attractive long‑term total return
potential, within the Company’s sustainable and
responsible investing approach. This combination typically
leads us to be more selective in the most cyclical parts of
the market, and in some sectors the sustainability
framework further raises the hurdle for investment. Over
time, this emphasis on quality and resilience has tended to
support the Company’s ability to protect capital and
income in more difficult markets, as we saw during Covid
in 2020, or more briefly during the Tariff Tantrum of early
2025, but it can be a headwind when investor optimism is
concentrated in the lowest‑valuation and more cyclical
areas. Over the past five years, the portfolio’s companies
have delivered faster earnings and dividend growth than
the market, reflecting this focus on strong underlying
business operations. However, the valuation rating that the
wider market trades on has recovered much faster than
that of the underlying portfolio. That effect was very much
in evidence again during the year under review.
“The UK equity market delivered
another exceptional return over the
year, reaching new all-time highs.
Benchmark gains were driven by a
relatively narrow set of cyclical areas,
with the higher quality part of the
market lagging significantly.”
Importantly, we are not inflexible. We seek balance in the
portfolio and will invest in cyclical businesses where we
have a high degree of confidence in their long‑term return
potential and believe their financial strength enables them
to navigate a range of economic outcomes. This would be
well reflected in our single largest position being a holding
in TotalEnergies, a cyclical and capital-intensive business
but one which we think is best placed to navigate the
energy transition while consistently delivering attractive
distributions back to investors.
We also believe the opportunity set in UK mid‑caps is
improving after a prolonged period in which market
returns were dominated by the largest companies.
Valuations in parts of the mid‑cap market remain more
compelling than we would typically expect in a market at
all‑time highs, creating an attractive environment for
active stock selection (approximately 40% of the portfolio
is invested in companies with market capitalisations below
£10 billion). We see several potential tailwinds that could
support this market segment over time, including easing
financial conditions, enhanced share buybacks and
ongoing appetite from private and public acquirers for
these types of assets.
Investment Mana
g
er’s Review
Dunedin Income Growth Investment Trust PLC 15
Strategic Report Financial Statements Overview Governance General Other Information
A Distinctive UK Income Proposition
The chart below shows the style and size positioning of the
portfolio at the year end relative to UK Equity Income
investment trust peers and the FTSE All-Share Index,
highlighting its differentiated approach to generating
long-term capital and income growth.
Source: Morningstar, January 2026.
Performance Drivers
On the whole, portfolio holdings performed well
operationally over the period, with good financial delivery
and robust shareholder returns. Within this, there were an
above average number of exceptional returns, with seven
holdings delivering share price gains in excess of 40%.
Prudential delivered an exceptional return of 81%,
supported by strong new business profit delivery and
improving confidence in its outlook, alongside good capital
generation and shareholder returns, including buybacks.
ASML gained 76% as rapid investment in data centres and
AI infrastructure supported order momentum, with
customers increasingly reliant on its advanced lithography
systems for next generation semiconductor development.
Genus (+64%) also delivered a standout return, reflecting a
cyclical recovery alongside continued progress with its
innovative product development. NatWest (+62%) was a
strong contributor, helped by resilient results and a re-
rating in the banking sector, with our investment case
supported by the company’s strengthened balance sheet
and attractive shareholder distributions. Alongside these
companies, closed life book consolidator Chesnara (+47%)
was rewarded for its acquisition of HSBC Life (UK),
Healthcare REIT Assura (+49%) was taken over and M&G
(+59%) benefitted from a return to growth in its asset
management division.
Despite these areas of very strong performance, relative
returns were held back by strong gains from a small
number of large companies not held in the portfolio,
AI‑related uncertainty over a portion of the holdings and
several weaker stock specific situations.
In terms of wider strength in the market, areas that we did
not have exposure to included Aerospace & Defence,
Mining and Tobacco. This was driven by our sustainability
focus. Banks were also extremely strong and an area
where we have tended to be underweight given generally
modest quality characteristics. A lack of exposure to these
areas was a significant opportunity cost over the period.
During the second half of the year, investor concern
increased about the pace and scale of generative AI
adoption and what that could mean for pricing power and
long-term growth assumptions across many segments of
the market, including Technology and Information
Services. This is a segment of the market to which we are
attracted given high margins and returns, strong cash
generation and attractive revenue growth potential. We
have been analysing these developments closely for the
past two years and recognise that the environment now
carries greater uncertainty. Our focus has therefore been
on testing each company’s competitive advantage, its
readiness to adapt to generative AI, the resilience of its
pricing model, and its financial capacity to fund that
transition. This work has been supported by extensive
engagement with management teams, boards and
external experts.
As a result, we believe the market has moved ahead of the
evidence, and that fear has led to pockets of
indiscriminate selling, leaving a number of high‑quality
franchises no longer priced for structural growth. In our
view, this reflects an overly pessimistic assumption that
incumbents will stand still. We instead expect the
strongest businesses - those with products that genuinely
add value for customers, proactive management teams,
sensible capital allocation plans, and clear strategies to
embed AI into products and workflows - to protect and
potentially strengthen their positions. While it is early days,
recent reporting would suggest accelerating revenue
growth rather than risks, and many of these companies
have also significantly stepped up their share buyback
programmes to take advantage of overly discounted
valuations.
16 Dunedin Income Growth Investment Trust PLC
On the rarer occasions where our assessment of a
company’s quality or prospects changes in a meaningful
way, we act accordingly. In the first half of the year, we
exited two holdings where our conviction had reduced -
the long-standing holding Novo-Nordisk and the more
recent addition Azelis, reinforcing the discipline at the
heart of our process. In both cases, the shares weakened
significantly after exit. Edenred’s share price fell over the
year, primarily due to regulatory changes in Italy and
Brazil that have increased uncertainty around fee
economics and profitability. Following detailed analysis,
including attending the company’s Capital Markets Day in
Paris, we have added to the holding because we believe
the current valuation offers the potential for attractive
total returns as the regulatory and sentiment backdrop
becomes clearer. We continually re-examine our
assumptions on total return potential and ensure valuation
compensates for the risks being taken, reallocating capital
to higher conviction opportunities when that balance no
longer holds.
Portfolio Activity
Investment activity reflected our continued focus on
delivering long‑term returns while maintaining a balanced
portfolio, with new positions funded by trimming or exiting
holdings that offered less compelling prospective returns.
With regards to the impact of AI, we backed our existing
positions by adding to RELX, Sage, and Softcat, where we
believe share price weakness does not reflect strong
underlying fundamentals or the resilience provided by
proprietary data, customer relationships and embedded
roles in mission critical workflows
In the Consumer Staples sector, we added to Haleon.
While its shares weakened on slower North American
growth, we believe its leading consumer health brands
and strengthening balance sheet support attractive
earnings and dividend growth relative to peers. In addition,
we introduced Tesco, where we see an attractive
combination of resilience and self‑help. The business
benefits from a strong position in UK food retail, and we
see scope for further progress through multi‑channel
execution and the continued development of
complementary profit streams. We funded this
purchase by exiting Unilever, where we judged
prospective returns to be less attractive than the
opportunities available elsewhere.
We introduced two long‑standing watchlist holdings,
Experian and Compass. Experian provides data and
analytics to businesses and consumers and, after several
years of investment in product expansion and an
integrated platform, we believe it is positioned for stronger
growth, improving cash generation and rising returns.
Compass is a global catering leader, taking share in a
large addressable market with scope to apply US best
practice to improve profitability in Europe. Both
companies offer a below market starting yield but the
potential for strong dividend growth which, alongside
balance sheet optionality, supports attractive
prospective returns.
We also added LondonMetric, a specialist real estate
company with a diversified portfolio across logistics,
convenience retail, healthcare and leisure assets, which
supports an attractive income profile and the potential for
modest growth. This was funded by exiting Primary Health
Properties following its successful acquisition of Assura,
and recycling capital into a holding we viewed as the
stronger long-term income opportunity, supported by a
high-quality portfolio, a strong management team and a
robust balance sheet.
Consistent with our view that the opportunity set for mid-
caps is improving, we introduced three new holdings.
Baltic Classifieds is a market‑leading digital classifieds
platform in the Baltics with strong cash generation and
attractive long‑term growth characteristics. XPS Pensions
is a pensions advisory and administration business with a
strong growth record, high revenue visibility supported by
regulatory tailwinds, and robust cash generation that
underpins an attractive and growing dividend. Kainos is a
digital transformation specialist serving public sector,
healthcare and commercial clients, and we see improving
momentum alongside longer‑term opportunities from its
product pipeline.
In the Financials sector, we introduced
Standard
Chartered as we believe the market has yet to fully reflect
the improvement in its returns profile and the growth
potential in its wealth business, supported by its broad
geographic footprint. We also participated in the rights
issue for Chesnara to finance the acquisition of HSBC Life
(UK) and subsequently reduced the position meaningfully
to manage risk as the transaction completed. We added
to NatWest in the volatility that followed ‘Liberation Day’,
and the shares subsequently recovered.
Investment Mana
g
er’s Review
Continued
Dunedin Income Growth Investment Trust PLC 17
Strategic Report Financial Statements Overview Governance General Other Information
These purchases were funded through a combination of
exits and reductions of strong performers, including
reductions in holdings such as Games Workshop,
Mercedes-Benz, Hiscox, ASML, AstraZeneca, Prudential,
Genus and National Grid along with exits from Morgan
Sindall, Novo-Nordisk and Azelis.
Income
Investment income for the year was 9.2% lower than the
preceding year, driven mainly by the reduction in the
Company’s capital base due to share buy backs (10.9% of
the issued share capital was bought back during the year),
We continued to generate additional income from
option writing.
During the year, the Company benefited from special
dividends from Softcat, and Volvo, alongside strong
dividend increases from a number of portfolio holdings
including N
atWest (+51%), London Stock Exchange
(+15%) and H
iscox (+ 15%). In contrast, Mercedes-Benz
lowered its distributions following weaker financial results
impacted by global tariffs, exchange rate headwinds and
competition from China.
Compelling Valuations For High Quality Companies
Source: Aberdeen, January 2026.
18 Dunedin Income Growth Investment Trust PLC
Outlook: A constructive view
Three developments leave us increasingly positive about
the relative performance prospects for the Company.
Firstly, with the developments in Iran, the investment
backdrop is shaped by a mix of geopolitical tensions,
macroeconomic challenges and heightened uncertainty.
In this environment, we believe the value of resilience
comes to the fore, with companies that have durable
business models, strong competitive positions and robust
balance sheets better placed to navigate uncertainty and
deliver attractive long‑term returns.
Secondly, the portfolio’s differentiated positioning in
high‑quality, resilient businesses looks unusually well
priced. The valuation premium relative to the wider UK
market has compressed to levels not seen in many years,
even though the portfolio continues to exhibit superior
growth, profitability and balance sheet strength (see table
on page 17).
Finally, the Company’s structure provides additional
flexibility to act when opportunities arise. The combination
of active discount management through share buybacks,
prudent gearing and an enhanced dividend policy gives us
a toolkit to enhance shareholder outcomes through the
cycle while remaining focused on long‑term total return.
We believe that this combination of high-quality
companies delivering very well operationally at extremely
attractive valuations at a time of heightened uncertainty
positions the Company to navigate markets with
confidence and deliver the goal of growth in capital
and income.
Ben Ritchie and Rebecca Maclean,
Aberdeen
8 April 2026
Investment Mana
g
er’s Review
Continued
Dunedin Income Growth Investment Trust PLC 19
Strategic Report Financial Statements Overview Governance General Corporate Information
As at 31 January 2026
TotalEnergies (Transition) NatWest (Transition)
TotalEnergies is an energy company
producing and marketing fuels, natural
gas and electricity globally.
NatWest is a UK-based banking
company providing personal, private
and business banking needs.
National Grid (Solutions) Haleon (Solutions)
National Grid owns gas and electricity
transmission and distribution assets in
the UK and United States.
Haleon is a consumer healthcare
company with a clear purpose to
deliver better everyday health
and humanity.
RELX (Solutions) Prudential (Solutions)
RELX is a global provider of information
and analytics for professionals and
businesses across a number of
industries including scientific, technical,
medical and law.
Prudential is a life insurance and
savings company with leading market
positions in Asia and the United States.
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.
Weir Group (Leader) Diageo (Leader)
Weir Group is an engineering services
company that designs and
manufactures products for the minerals,
oil and gas, and flow controls markets.
Diageo is a global leader in spirits and
liqueurs with a portfolio of world-
renowned brands.
Definitions of Sustainability Leaders, Solution Providers and Transition Companies are provided on page 33.
Ten Lar
g
est Investments
20 Dunedin Income Growth Investment Trust PLC
Portfolio
At 31 January 2026
Valuation Total Valuation
2026 assets 2025
Company Sector £’000 % £’000
TotalEnergies Oil, Gas and Coal 28,699 6.5 29,564
NatWest Banks 23,970 5.4 15,361
National Grid Gas, Water and Multi-utilities 18,693 4.2 28,807
Haleon Pharmaceuticals and Biotechnology 17,804 4.0 –
RELX Software and Computer Services 17,413 3.9 25,008
Prudential Life Insurance 15,585 3.6 13,060
London Stock Exchange Finance and Credit Services 14,413 3.3 22,874
AstraZeneca Pharmaceuticals and Biotechnology 13,457 3.0 22,179
Weir Group Industrial Engineering 13,183 3.0 10,166
Diageo Beverages 12,960 2.9 19,205
Ten largest investments 176,177 39.8
Tesco Personal Care, Drug and Grocery Stores 12,713 2.9 –
Gaztransport & Technigaz Oil, Gas and Coal 12,292 2.8 9,913
Taylor Wimpey Household Goods and Home Construction 12,072 2.7 9,607
LondonMetric Real Estate Investment Trusts 12,056 2.7 –
Convatec Medical Equipment and Services 11,883 2.7 13,086
Experian Industrial Support Services 11,698 2.6 –
Compass Consumer Services 11,263 2.5 –
Hiscox Non-life Insurance 11,045 2.5 10,555
Sirius Real Estate Real Estate Investment Trusts 10,973 2.5 11,334
ASML Technology Hardware and Equipment 10,875 2.5 9,785
Twenty largest investments 293,047 66.2
Oxford Instruments Electronic and Electrical Equipment 10,560 2.4 8,708
Genus Pharmaceuticals and Biotechnology 10,314 2.3 13,180
Sage Software and Computer Services 10,120 2.3 14,624
Softcat Software and Computer Services 10,000 2.2 9,994
Standard Chartered Banks 9,177 2.1 –
Genuit Construction and Materials 9,036 2.0 9,889
M&G Investment Banking and Brokerage Services 8,755 2.0 11,544
Games Workshop Leisure Goods 8,742 2.0 12,242
Telecom Plus Telecommunications Service Providers 8,714 2.0 10,303
Intermediate Capital Investment Banking and Brokerage Services 8,654 1.9 11,595
Thirty largest investments 387,119 87.4
Portfolio
Dunedin Income Growth Investment Trust PLC 21
Strategic Report Financial Statements Overview Governance General Corporate Information
At 31 January 2026
Valuation Total Valuation
2026 assets 2025
Company Sector £’000 % £’000
Volvo Industrial Transportation 8,073 1.8 11,375
Chesnara Life Insurance 7,688 1.7 15,599
Baltic Classifieds Software and Computer Services 7,411 1.7 –
Edenred Industrial Support Services 7,399 1.7 10,136
XPS Pensions Investment Banking and Brokerage Services 6,897 1.6 –
Kainos Software and Computer Services 6,176 1.4 –
Mercedes-Benz Automobiles & Parts 4,387 1.0 10,154
Total investments 435,150 98.3
Net current assets
A
7,729 1.7
Total assets less current liabilities
A
442,879 100.0
A
Excluding bank loan falling due within one year of £19,593,000 (2025 – £18,907,000).
22 Dunedin Income Growth Investment Trust PLC
0% 5% 10% 15% 20% 25 %
Fin anc ials
In dus tria ls
Consumer
Discretionary
Health Care
Technology
En ergy
Consumer Staples
Real Estate
Utilities
Telecomm unicatio n s
2026
2025
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
United Kingdom
Eu rop e
20 26
20 25
Sector and Geo
g
raphical Analysis
Dunedin Income Growth Investment Trust PLC 23
Strategic Report Financial Statements Overview Governance General Corporate Information
As at 31 January 2026
FTSE All-Share Portfolio Portfolio
Index weighting weighting weighting
2026 2026 2025
% % %
Energy Oil, Gas and Coal 8.5 9.3 8.3
8.5 9.3 8.3
Basic Materials Chemicals 0.3 – –
Industrial Metals and Mining 6.2 – –
Precious Metals & Mining 0.7 – –
7.2 – –
Industrials Aerospace & Defence 6.5 – –
Construction and Materials 0.5 2.0 4.1
Electronic and Electrical Equipment 0.9 2.4 1.8
General Industrials 0.7 – –
Industrial Engineering 0.6 3.0 2.1
Industrial Support Services 2.5 4.3 4.2
Industrial Transportation 0.8 1.8 2.4
12.5 13.5 14.6
Consumer Discretionary Automobiles & Parts 0.1 1.0 2.1
Consumer Services 1.3 2.5 –
Household Goods and Home Construction 0.8 2.7 2.0
Leisure Goods 0.2 2.0 2.6
Media 0.9 – 5.2
Personal Goods
0.2 – –
Retailers
1.4 – –
Travel & Leisure
1.8 – –
6.7 8.2 11.9
Health Care Medical Equipment and Services 0.5 2.7 2.7
Pharmaceuticals and Biotechnology 11.3 9.4 9.3
11.8 12.1 12.0
24 Dunedin Income Growth Investment Trust PLC
As at 31 January 2026
FTSE All-Share Portfolio Portfolio
Index weighting weighting weighting
2026 2026 2025
% % %
Consumer Staples Beverages 2.1 2.9 4.0
Food Producers 0.5 – –
Personal Care, Drug and Grocery Stores 6.8 2.9 6.8
Tobacco
4.1 – –
13.5 5.8 10.8
Real Estate Real Estate Investment & Services 0.3 – –
Real Estate Investment Trusts
1.8 5.2 4.9
2.1 5.2 4.9
Utilities Electricity 1.2 – –
Gas, Water and Multi-utilities
3.3 4.2 6.0
4.5 4.2 6.0
Financials Banks 16.1 7.5 3.3
Finance and Credit Services 1.5 3.2 4.8
Investment Banking and Brokerage Services 3.1 5.5 4.8
Closed End Investments 5.4 – –
Life Insurance 2.6 5.3 6.0
Non-life Insurance 0.7 2.5 2.2
29.4 24.0 21.1
Technology Software and Computer Services 2.5 11.5 5.2
Technology Hardware and Equipment – 2.5 2.1
2.5 14.0 7.3
Telecommunications Telecommunications Service Providers 1.3 2.0 2.2
1.3 2.0 2.2
Total investments 100.0 98.3 99.1
Net current assets before borrowings
A
1.7 0.9
Total assets less current liabilities
A
100.0 100.0
A
Excluding bank loan falling due within one year of £19,593,000 (2025 – £18,907,000).
Sector and Geo
g
raphical Analysis
Continued
Dunedin Income Growth Investment Trust PLC 25
Strategic Report Financial Statements Overview Governance General Other Information
The two case studies below illustrate how the portfolio combines income today with long-term, sustainable growth,
supporting the Company’s objective of delivering attractive total returns over time.
Prudential (Solutions)
Dividend yield 1.9%
Dividend growth* >10.0%
Foundations
· Provider of life and health insurance across Asia
and Africa.
· Footprint is concentrated in markets with low levels
of protection and savings penetration, rising household
wealth and large unmet needs for financial and
health security.
Investment Case
· Well positioned in structurally growing and under-
served life, health and protection markets across Asia.
The company is investing in technology to support and
enhance its agency-led distribution model and drive
new business profits.
· Simplification and a sharper focus on profitability and
cash generation supports the balance sheet and
underpins attractive shareholder returns, including
strong dividend growth and additional share buybacks.
Quality and Sustainability
· Inclusive Insurance Framework, which is intended to
guide and support local businesses in increasing
insurance penetration by developing commercially
viable products that are affordable and accessible for
underserved customer segments.
· One pillar of the framework relates to low income
segments and the company is looking to create
products for what it calls the ‘missed middle’.
*Based on consensus estimates. Source: Factset
Softcat (Solutions)
Dividend yield 3.8%
Dividend growth* 8.0%
Foundations
· The UK’s largest technology value‑added reseller,
supplying hardware, software and services to small and
mid‑sized businesses and the public sector.
· Highly cash generative business which operates a net
cash balance sheet, returning surplus capital to
shareholders through ordinary and special dividends,
and, more recently, share buybacks.
Investment Case
· Customers are increasingly investing in cloud,
networking, cybersecurity and data infrastructure, and
the pace of vendor innovation, including generative AI,
increases the need for trusted advice and
implementation support.
· Culture supports high customer satisfaction and is an
important driver of consistent execution and share gains
in a fragmented market.
Quality and Sustainability
· Remuneration framework reflects its long-term focus on
employees and service levels, linking a portion of annual
incentives to measures such as employee engagement,
customer satisfaction and sustainability.
· Winner of Glassdoor’s Employees’ Choice Awards (Best
Places to Work 2025) and has been certified as a Great
Place to Work across the UK and Ireland.
Investment Case Studies
26 Dunedin Income Growth Investment Trust PLC
Ten Year Financial Record
Year ended 31 January 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
Total revenue (£’000) 21,963 22,317 22,263 20,518 18,346 21,518 21,950 22,949 22,550 20,013
Per share (p)
Revenue return 12.55 12.64 12.68 12.08 10.90 12.87 13.02 13.54 13.82 13.64
Dividends paid/proposed 11.70 12.10 12.45 12.70 12.80 12.90 13.10 13.75 14.20 19.10
Revenue reserve
A
10.51 11.16 11.54 10.94 9.07 9.05 8.97 8.99 9.85 6.29
Net asset value
B
270.34 290.57 266.83 312.22 297.64 309.03 302.80 308.98 322.47 332.88
Total return
C
43.83 30.83 (11.95) 58.57 (1.81) 23.78 1.92 15.45 23.90 22.00
Shareholders’ funds (£’000) 415,810 442,384 401,731 469,806 448,293 464,579 448,605 445,815 428,528 393,526
A
After payment of third interim and final dividends (see note 16 on page 91 for further details).
B
With debt at fair value.
C
Per Statement of Comprehensive Income.
Performance (total return)
1 year 3 year 5 year
% return % return % return
Total return (Capital return plus net dividends reinvested)
Net asset value
AB
8.2 25.9 39.3
Share price
B
13.8 21.5 35.5
FTSE All-Share Index 21.1 44.5 80.8
Capital return
Net asset value
A
3.2 9.9 11.8
Share price 8.1 4.8 7.3
FTSE All-Share Index 17.0 29.5 51.3
A
Cum-income NAV with debt at fair value.
B
Considered to be an Alternative Performance Measure (see page 110)
Source: Aberdeen, Factset & Morningstar
Performance
Dunedin Income Growth Investment Trust PLC 27
Strategic Report Financial Statements Overview Governance General Other Information
Comparison of NAV Total Return Performance to FTSE All-Share Index
Total Return for 5 years
8.1%
2.4%
6.7%
9.0% 8.2%
39.3%
18.9%
5.2%
1.9%
17.1%
21.1%
80.8%
Year to
31/01/22
Year to
31/01/23
Year to
31/01/24
Year to
31/01/25
Year to
31/01/26
5 year total return
(cumulative)
Source: Aberdeen & Morningstar
NAV total return with debt
at fair value
FTSE All-Share total return
Dividends per Share – Pence
Year to 31 January
11.70
12.10
12.45
12.70
12.80
12.90
13.10
13.75
14.20
19.10
0
5
10
15
20
2017 20 18 20 19 20 20 2021 20 22 20 23 20 24 20 25 2026
28 Dunedin Income Growth Investment Trust PLC
Dividends per Share
Dividend per share Rate xd date Record date Payment date
Final dividend 2026 7.40p 7 May 2026 8 May 2026 29 May 2026
Third interim dividend 2026 4.25p 5 February 2026 6 February 2026 27 February 2026
Second interim dividend 2026 4.25p 6 November 2025 7 November 2025 28 November 2025
First interim dividend 2026 3.20p 7 August 2025 8 August 2025 29 August 2025
Total dividend 2026 19.10p
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
Performance
Continued
Dunedin Income Growth Investment Trust PLC 29
Strategic Report Financial Statements Overview Governance General Other Information
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 £556 billion as at
31 December 2025, managed for a range of clients
including 9 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 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
30 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
Investment Approach are included on pages 32 to 34.
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 Return
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 31
Strategic Report Financial Statements Overview Governance General Other Information
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.
32 Dunedin Income Growth Investment Trust PLC
Investing for Sustainable Income and Long-Term Value
Sustainability is a distinctive element of the Investment Manager’s approach to investing for the Company. Companies
with strong governance, sustainable business models and responsible practices are, in its view, better placed to manage
risk, adapt to change and support reliable shareholder returns over time. By contrast, poor governance, weak
stakeholder engagement and sustainable practices can undermine long-term performance.
The Investment Manager’s approach focuses on identifying companies that are positively positioned for the future,
avoiding those where sustainability risks are greatest, and engaging constructively with management teams to
encourage improvement where appropriate.
What this means for shareholders
The Company offers a differentiated approach to sustainability within the UK Equity Income sector. This includes a
disciplined focus on long‑term income sustainability, reduced exposure to businesses facing structural or governance
risks, and investment in companies with the potential for change over time.
How we invest sustainably
Sustainable Investment Approach
Quality first
• Begin by
assessing the
fundamentals
of a business,
including its
competitive
position,
financial
strength and
management
Exclusions
• Avoid investing
in companies
involved in
activities that
present
significant
long-term risks,
such as
thermal coal,
weapons and
tobacco
Sustainability
a
ssessment
• Consider the
materiality of
environmental,
social and
governance
("ESG") factors
over the long-
term
Diversification
• Invest across a
range of
sustainable
opportunities;
those with
leadership
today,
providing
sustainable
solutions, and
with credible
transition plans
Active
o
wnership
• Engage
regularly with
companies and
exercise voting
rights to
encourage
strong
governance
and long-term
decision-
making
Dunedin Income Growth Investment Trust PLC 33
Strategic Report Financial Statements Overview Governance General Other Information
Selection Criteria: Key Attributes and Exclusions
What we invest in
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. 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.
The portfolio encompasses;
Sustainability leaders
Companies with best-in-class ESG
credentials and demonstrating
ESG leadership
Solution providers
Businesses whose products or
services address global
environmental and
societal challenges
Transition companies
Typically companies with average
standards of governance, ESG
management practices and
disclosure with potential for
change over time
The Investment Manager believes this balanced approach broadens the opportunity set and can help it identify
attractively valued businesses that the market may be overlooking. In particular, the inclusion of transition companies
allows the Investment Manager to invest in selected energy companies where it believes portfolio composition and
capital allocation show greater alignment with the energy transition.
What we avoid
The Investment Manager does not invest in companies
whose activities or behaviours, in its assessment, present
long‑term sustainability risks. This includes companies with
weaker sustainability practices, with exclusions related to,
but not limited to, failures of the UN Global Compact,
involvement in thermal coal extraction, tobacco or
weaponry, and oil and gas companies without credible
transition plans.
The Pre-investment Disclosure Document published on
the Company’s website contains full details of the
screening criteria applied.
How sustainability is assessed
To support investment decision‑making, the Investment
Manager uses a combination of fundamental analysis,
proprietary sustainability tools and engagement to assess
material ESG risks and opportunities. This includes internal
ESG quality assessments to provide a consistent view
across the portfolio.
For companies classified as solutions providers, the
Investment Manager considers the extent to which
revenues or investment activity are aligned with
sustainability themes, such as the UN Sustainable
Development Goals.
Sustainability at the portfolio level
Carbon footprint: The portfolio’s carbon intensity (Scope 1
& 2) is materially lower than that of the FTSE All‑Share
Index, reflecting a focus on less carbon‑intensive
business models.
Sustainability profile: The portfolio is diversified across
sustainability leaders, solution providers and transition
companies, supporting both risk management and
long‑term opportunity.
21%
45%
33%
1%
Leader Solutions Transition Cash
34 Dunedin Income Growth Investment Trust PLC
During the year, the Board and Investment Manager spent
considerable time reviewing the negative screening
criteria to ensure that they remain appropriate to the
Company’s objectives. Following this work, the Board has
approved a number of changes which are expected to be
introduced during the first half of the current financial
year. These changes are evolutionary in nature and are
designed to align with best practice, which has also
evolved in recent years, increase reporting transparency
and provide the Investment Manager with greater
flexibility in managing the portfolio.
At the headline level, the most significant changes in terms
of increasing the Investment Manager’s flexibility are to
allow greater flexibility to invest in Aerospace & Defence,
permit investment in Nuclear Energy and modify
restrictions around investment in Natural Resource
companies. As a consequence, the negative screening
criteria, which currently exclude approximately 23% of the
benchmark FTSE All-Share Index, will reduce the
exclusions to around 13%. More details of the updated
criteria will be published on the Company’s website, in
the Pre-investment Disclosure Document and in future
Annual Reports.
Engagement and Active Ownership
Engagement activity
The Investment Manager believes that long‑term investors
have a responsibility to engage constructively with the
companies they own.
During the year, the Investment Manager held regular
meetings with portfolio companies where sustainability
topics were discussed. A number of these meetings were
with transition companies where the Investment Manager
believes progress could strengthen long‑term outcomes
for shareholders.
78%
Proportion of the portfolio
engaged with on ESG topics*
*Year ended 31 January 2026
Voting on your behalf
Voting is an important part of the Investment Manager’s
stewardship approach. While it typically supports
management at the companies it invests in, it will vote
against proposals where it believes they are not in the best
long term interests of shareholders.
Sustainable Investment Approach
Continued
Dunedin Income Growth Investment Trust PLC 35
Strategic Report Financial Statements Overview Governance General Other Information
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 Investment Approach details of which are
included on pages 32 to 34.
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 Investment Approach section on
pages 32 to 34).
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 Financial
Conduct Authority (“FCA”).
Overview of Strate
g
y
36 Dunedin Income Growth Investment Trust PLC
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.
Benchmark
The Company’s benchmark is the FTSE All-Share Index
(total return). Performance is measured on a net asset
value (“NAV”) total return basis over the long-term.
Dividend Policy
It is the stated intention of the Board to continue with a
progressive dividend policy with growth in absolute terms
in future years.
Promoting the Success of the Company
The Board’s statement on pages 42 to 45 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 The Company’s NAV total return performance against the total return of the
benchmark index – the FTSE All-Share Index – for this year and for the past three
and five years is shown on page 26.
Revenue return per Ordinary share The revenue returns per Ordinary share for each of the past 10 years are set out on
page 26.
Dividend per Ordinary share The dividends per share for each of the past 10 years are set out on page 26.
Share price performance The Company’s share price performance on a total return basis for this year and
for the past three and five years is shown on page 26.
Discount/premium to NAV The discount at the year end and at the end of the previous year are disclosed on
page 6.
Ongoing charges The ongoing charges ratio (“OCR”) is the total of investment management fees
and administrative expenses, expressed as a percentage of net assets. The OCR
for the year and the previous year is disclosed on page 6.
Overview of Strate
g
y
Continued
Dunedin Income Growth Investment Trust PLC 37
Strategic Report Financial Statements Overview Governance General Other Information
Principal Risks and Uncertainties
The Board carries out a regular review of the risk environment in which the Company operates, including 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 these principal risks and uncertainties, the Board considers that
the development of Artificial Intelligence (“AI”) presents potential risks, both positive and negative, 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.
Investment Performance risk is considered to have increased during the year due to the underperformance of the
Company against the benchmark index. Geo-political risk is considered to have increased as a result of the conflict in
the Middle East since the end of the financial year. The trend of other principal risks has not changed during the year.
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, to ensure they
remain relevant to shareholders.
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 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
Investment Manager acts outside
the terms of the management
agreement or investment
guidelines, leading to an adverse
impact on performance and a
widening of the discount.
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.
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.
38 Dunedin Income Growth Investment Trust PLC
Overview of Strate
g
y
Continued
Risk Trend Mitigating Action
Investment performance - poor
investment decisions, leading to
underperformance, a loss of
value for shareholders and a
widening discount.
Monitoring of performance. The Board reviews investment performance formally at
Board meetings where it receives a presentation on performance and the outlook for
the portfolio from the Investment Manager. The Board also keeps under close review
(inter alia) the Investment Manager’s resources and adherence to investment
processes.
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.
As set out in the Chairman’s Statement on pages 10 and 11 , since the year end the
Board has approved a number of changes to the Company’s sustainability criteria,
which are expected to be introduced during the first half of the current financial year.
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.
It is the stated intention of the Board to continue with a progressive dividend policy
with growth in absolute terms in future years.
Use of reserves. The Company has the ability to fund dividend distributions from both
accumulated revenue reserves and 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.
Further details of the Company’s financial instruments and risk management are
included in note 19 to the financial statements.
Dunedin Income Growth Investment Trust PLC 39
Strategic Report Financial Statements Overview Governance General Other Information
Risk Trend Mitigating Action
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 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 attend relevant training courses and seminars.
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.
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.
40 Dunedin Income Growth Investment Trust PLC
Overview of Strate
g
y
Continued
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
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 composition of the 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.
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 portfolio’s carbon intensity (Scope 1 & 2) is materially
lower than that of the FTSE All‑Share Index, reflecting a
focus on less carbon‑intensive business models.
Dunedin Income Growth Investment Trust PLC 41
Strategic Report Financial Statements Overview Governance General Other Information
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
34 and 41.
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
37 to 40 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 ability of the Company to fund dividend payments
from both accumulated revenue reserves and realised
capital reserves.
· 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
while the Investment Manager’s views on the outlook for
the portfolio are included on page 18.
On behalf of the Board
Howard Williams
Chairman
8 April 2026
42 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
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.
Promotin
g
the Success of the Company
Dunedin Income Growth Investment Trust PLC 43
Strategic Report Financial Statements Overview Governance General Other Information
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 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 14 to 18 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 pages 55 to 56.
44 Dunedin Income Growth Investment Trust PLC
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 34 and 41.
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 The 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 35.
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 2026. 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,
further details of which are included on pages 32 to 34.
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.
Dividend
During the year, and as explained in greater detail in the
Chairman’s Statement on page 11, the Board announced
that it would significantly increase dividend distributions to
shareholders such that, for the year ending 31 January
2026, the Company’s dividend was increased by 34.5% to
19.10p per share. This provided a dividend yield of 6.2% at
the end of the year, offering an attractive yield compared
to cash, the FTSE All-Share Index and peers in the UK
Equity Income sector.
Promotin
g
the Success of the Company
Continued
Dunedin Income Growth Investment Trust PLC 45
Strategic Report Financial Statements Overview Governance General Other Information
Furthermore, the Board stated its intention to continue
with a progressive dividend policy with growth in absolute
terms in future years from the increased level, and
building on the successful long-term track record of
dividend increases.
The Company has the ability to fund the dividend cost
from a combination of accumulated revenue reserves
and realised capital reserves thus utilising one of the key
benefits of the investment trust structure.
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. The Board
therefore considers that that the increase in the dividend
level is in the interest of shareholders.
Share Buy Backs
During the year, the Company bought back 14.8 million
Ordinary shares to be held in treasury, at a cost of £43.3
million, providing an accretion of 1.1% 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 Edinburgh. The AGM will be held in
London 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 Friday 8 May 2026. 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. Details of how to register for the event can be
found on the Company’s website.
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
Having served for nine years, David Barron and Jasper
Judd retired from the Board on 22 May 2025. As explained
in the Chairman’s Statement on page 12 and the
Directors’ Report on pages 52 and 56, as part of the
Board’s succession planning, and following a search
process, Arun Kumar Sarwal was appointed as an
independent non-executive Director on 1 February 2025
and as Chair of the Audit & Risk Committee on 22 May
2025. Katrina Hart was appointed as an independent non-
executive Director on 1 March 2026.
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
Howard Williams
Chairman
8 April 2026
46 Dunedin Income Growth Investment Trust PLC
Governance
2.7% of the Company’s total assets are invested in
the House Goods and Home Construction sub-
sector (2025: 2.0%).
Dunedin Income Growth Investment Trust PLC 47
The Company is committed to high standards of
corporate governance and applies the
principles identified in the UK Corporate
Governance Code and the AIC Corporate
Governance Code.
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.
48 Dunedin Income Growth Investment Trust PLC
Howard Williams
Independent Non-Executive Chairman
Experience:
Howard Williams has over 40 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:
8 years, appointed a Director on 1 April 2018 and
Chairman on 22 May 2025
Last re-elected to the Board:
22 May 2025
Committee membership:
Management Engagement Committee and Nomination &
Remuneration Committee
Contribution:
The Nomination & Remuneration Committee has
reviewed the contribution of Howard Williams and has
concluded that he has chaired the Company expertly
since his appointment to the role on 22 May 2025,
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
continues to provide significant investment insight to
the Board and knowledge of the investment
management sector.
Gay Collins
Independent Non-Executive Director and Chair of the
Nomination & Remuneration Committee
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 was, until January 2026, a non-
executive director of the Association of Investment
Companies.
Length of service:
4 years, appointed a Director on 1 July 2021
Last re-elected to the Board:
22 May 2025
Committee membership:
Audit & Risk Committee, Management Engagement
Committee and Nomination & Remuneration Committee
(Chair)
Contribution:
The Nomination & 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 49
Strategic Report Financial Statements Overview Governance General Other Information
Katrina Hart
Independent Non-Executive Director
Experience:
Katrina Hart spent her executive career in investment
banking, advising, analysing and commentating on a
broad range of businesses. Initially working in corporate
finance at ING Barings and Hawkpoint Partners, she then
moved into equities research at HSBC. Latterly, she
headed up the Financials research teams at Bridgewell
Group and Canaccord Genuity, specialising in wealth and
asset managers. She is currently Chair of JPMorgan UK
Small Cap Growth & Income plc and Blackrock Frontiers
Investment Trust plc and a non-executive director of AEW
UK REIT plc (due to retire in September 2026) and
Montanaro Asset Management Limited.
Length of service:
Appointed a Director on 1 March 2026
Last re-elected to the Board:
n/a – will stand for election at the AGM on 21 May 2026
Committee membership:
Audit & Risk Committee, Management Engagement
Committee and Nomination & Remuneration Committee
Christine Montgomery
Senior Independent Non-Executive Director and Chair 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:
6 years, appointed a Director on 1 February 2020
Last re-elected to the Board:
22 May 2025
Committee membership:
Audit & Risk Committee, Management Engagement
Committee (Chair) and Nomination & Remuneration
Committee
Contribution:
The Nomination & 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.
50 Dunedin Income Growth Investment Trust PLC
Arun Kumar Sarwal
Independent Non-Executive Director and Chairman of the
Audit & Risk Committee
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 Chairman of the board of
Tumelo, a director and Chairman of the Audit Committee
of JPMorgan European Discovery Trust plc and a director
of Invesco Bond Income Plus Limited. 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:
1 year, appointed a Director on 1 February 2025.
Elected to the Board:
22 May 2025
Committee membership:
Audit & Risk Committee (Chairman), Management
Engagement Committee and Nomination &
Remuneration Committee
Contribution:
The Nomination & Remuneration Committee has
reviewed the contribution of Arun Kumar Sarwal and has
concluded that he has chaired the Audit & Risk Committee
expertly since taking over the Chair on 22 May 2025 and
provides financial and business insight to the Board and
knowledge of the investment trust sector.
Board of Directors
Continued
Dunedin Income Growth Investment Trust PLC 51
Strategic Report Financial Statements Overview Governance General Other Information
The Directors present their report and the audited
financial statements for the year ended 31 January 2026.
Results and Dividends
The financial statements for the year ended 31 January
2026 are contained on pages 77 to 100. A first interim
dividend of 3.20p per Ordinary share was paid on 29
August 2025 and second and third interim dividends, each
of 4.25p per Ordinary share, were paid on 28 November
2025 and 27 February 2026. The Directors recommend a
final dividend of 7.40p per Ordinary share, payable on 29
May 2026 to shareholders on the register on 8 May 2026.
The ex-dividend date is 7 May 2026. 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 2026 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 £16,000 (2025: £20,000) to the Aberdeen
Group Charitable Trust, which directs funding to charities
around the world.
The Aberdeen Group Charitable Trust 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 2026
consisted of 120,197,609 Ordinary shares of 25p and
33,480,326 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
52 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 2026.
Shareholder
Number of
shares held % held
Interactive Investor 31,926,663 26.6
Hargreaves Lansdown 16,186,574 13.5
AJ Bell 6,494,302 5.4
HSDL Stockbrokers 5,016,029 4.2
WM Thomson 4,735,997 3.9
EFG Harris Allday 4,272,111 3.6
Charles Stanley 4,105,091 3.4
Rathbones 3,933,849 3.3
There have been no changes notified to the Company
between the year end and the date of approval of
this Report.
Directors
At the year end, the Board comprised four non-executive
Directors, each of whom is considered by the Board to be
independent of the Company and the Manager. Howard
Williams is the Chairman and Christine Montgomery is the
Senior Independent Director.
Arun Kumar Sarwal was appointed as an independent
non-executive Director on 1 February 2025. Following the
year end, Katrina Hart was appointed as an independent
non-executive Director on 1 March 2026 and will stand for
election at the Annual General Meeting. David Barron and
Jasper Judd retired as Directors on 22 May 2025.
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,
Christine Montgomery, Arun Kumar Sarwal and Howard
Willliams will retire at the Annual General Meeting and,
being eligible, offer themselves for re-election.
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
48 to 50, 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 2026 as
follows (with their eligibility to attend the relevant
meetings in brackets):
Board
Meetings
Audit &
Risk
Committee
Meetings
Management
Engagement
Committee
Meetings
Nomination &
Remuneration
Committee
Meetings
David Barron
A
2 (2) - (-) - (-) - (-)
Gay Collins 5 (5) 2 (2) 1 (1) 1 (1)
Jasper Judd
B
2 (2) 2 (2) - (-) - (-)
Christine
Montgomery
5 (5) 2 (2) 1 (1) 1 (1)
Arun Kumar
Sarwal
5 (5) 2 (2) 1 (1) 1 (1)
Howard Williams
C
5 (5) 1 (1) 1 (1) 1 (1)
A
David Barron retired as a Director on 22 May 2025. As Chairman of the Boad he was
not a member of the Audit & Risk Committee but attended by invitation.
B
Retired as a Director on 22 May 2025.
C
Howard Williams was appointed as Chairman of the Board on 22 May 2025. Since that
date, he has not been a member of the Audit & Risk Committee but attends by
invitation.
The Board meets more frequently when business
needs require.
Directors’ Report
Continued
Dunedin Income Growth Investment Trust PLC 53
Strategic Report Financial Statements Overview Governance General Other Information
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 2026
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 2 50%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Women 2 50% (note 1)
Not specified/prefer not to say - -
Table for reporting on ethnic background as at 31 January 2026
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)
3 75%
n/a
(note 3)
n/a
(note 3)
n/a
(note 3)
Asian/ Asian British 1 25% (note 2)
Not specified/prefer not to say - -
Notes:
1. Meets the target that at least 40% of Directors are women as set out in LR 6.6.6R (9)(a)(i).
2. Meets the target that at least one Director is from a minority ethnic background as set out in LR 6.6.6R (9)(a)(iii).
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 Board considers that the roles of Chairman of the Board, Senior Independent Director and Chairs of
the Audit & Risk 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) .
54 Dunedin Income Growth Investment Trust PLC
Matters Reserved for the Board
The Board has a schedule of matters reserved to it for
decision and the requirement for Board approval on these
matters is communicated directly to the senior staff of the
Manager. Such matters include strategy, gearing, treasury
and dividend policy. Full and timely information is provided
to the Board to enable the Directors to function effectively
and to discharge their responsibilities.
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 & 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
Dunedin Income Growth Investment Trust PLC 55
Strategic Report Financial Statements Overview Governance General Other Information
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 January 2024 (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 Corporate Governance Code as
published in August 2024 (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 investment companies.
The AIC Code is available on the AIC’s website:
theaic.co.uk. It includes an explanation of how the AIC
Code adapts the principles and provisions set out in the UK
Code to make them relevant for investment companies.
The Board considers that reporting against the principles
and provisions of the AIC Code, which has been endorsed
by the Financial Reporting Council (“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 41).
These provisions are not repeated in the AIC Code and the
Board 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 updated provisions in the UK
Code (provision 29) and the AIC Code (provision 34),
which are effective for accounting periods beginning on
or after 1 January 2026. These provisions relate to the
reporting by the Board on its monitoring and review of the
Company’s internal control framework and a declaration
by the Board of the effectiveness of the material controls
at the balance sheet date. It is the Board’s intention that
the Company will comply with these updated provisions
during the current financial year and include the required
disclosures in the Annual Report for the year ended 31
January 2027.
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 & Risk Committee
The Audit & Risk Committee’s Report is contained on
pages 63 to 65.
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.
56 Dunedin Income Growth Investment Trust PLC
Following a detailed review of performance for the year,
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.
Nomination & Remuneration Committee
The Nomination & Remuneration Committee consists of
all the Directors. The Committee is chaired by Gay Collins
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 60 to 62.
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 & 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. New Directors are selected on merit, and
with due regard to the benefits of diversity on the Board,
taking care to ensure that appointees have enough time
available to devote to the position. Every Director is
entitled to receive appropriate training as deemed
necessary.
In relation to the appointments of Arun Kumar Sarwal as a
Director on 1 February 2025 and Katrina Hart as a Director
on 1 March 2026, 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 68 and 73.
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.
Directors’ Report
Continued
Dunedin Income Growth Investment Trust PLC 57
Strategic Report Financial Statements Overview Governance General Other 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.
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 18 Bishops
Square, London E1 6EG at 12 noon on Thursday
21 May 2026.
The Notice of the Meeting is included on pages 112
to 117. Resolutions including the following business
will be proposed:
Allotment of Shares
Resolution 12 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 £9,887,830 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 2027,
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 12 is necessary to retain flexibility,
although they do not at the present time have any
intention of exercising such authority.
58 Dunedin Income Growth Investment Trust PLC
Limited Disapplication of Pre-emption Provisions
Resolution 13 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 10% 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
£2,966,645 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 2027,
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 13 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 14 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 17.8 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 2027, 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 59
Strategic Report Financial Statements Overview Governance General Other Information
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 27,574 Ordinary
shares, representing 0.02% 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
8 April 2026
60 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 69 to 76.
The Director’s Remuneration Policy and level of Directors’
remuneration are determined by the Nomination &
Remuneration Committee, which is chaired by Gay Collins
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.
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.
Directors’ Remuneration Report
Dunedin Income Growth Investment Trust PLC 61
Strategic Report Financial Statements Overview Governance General Other Information
A resolution to approve the Remuneration Policy will be
proposed at the Annual General Meeting to be held on 21
May 2026. 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 2029.
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 2025.
31 January
2026
£
31 January
2025
£
Chairman 45,000 44,000
Chairman of Audit & Risk
Committee
36,250 35,500
Director 30,000 29,500
An additional fee of £2,000 per annum is payable to the
Senior Independent Director.
The Nomination & 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 2026, fees should be increased to
£47,250 for the Chairman, £38,000 for the Audit & Risk
Committee Chairman and £31,500 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 2026 (rebased to 100 at 31 January 2016).
This Index was chosen for comparison purposes as it is the
Company’s benchmark used for investment performance
measurement purposes.
100
120
140
160
180
200
220
240
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
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 2026
£
2025
£
David Barron
A
13,911 44,000
Gay Collins 30,000 29,500
Jasper Judd
A
11,206 35,500
Christine Montgomery 31,382 29,500
Arun Kumar Sarwal
B
34,318 -
Howard Williams 40,981 31,500
Total 161,798 170,000
A
Retired as a Director on 22 May 2025
B
Appointed as a Director on 1 February 2025
62 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:
2026 2025 2024 2023 2022
Director % % % % %
Gay Collins
A
1.7 5.4 5.7 7.1 n/a
Christine
Montgomery
B
6.4 5.4 5.7 7.1 3.1
Arun Kumar Sarwal
C
16.3 - - - -
Howard Williams
D
30.1 5.0 5.3 6.5 8.1
A
Pro-rated from date of appointed on 1 July 2021
B
Appointed Senior Independent Director on 22 May 2025
C
Pro-rated from date of appointed on 1 February 2025. Appointed Chairman of the
Audit & Risk Committee on 22 May 2025
D
Appointed Senior Independent Director on 16 July 2020 and Chairman on 22 May
2025
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 2026 and 31 January 2025 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
2026
31 January
2025
Ordinary
shares
Ordinary
shares
David Barron
A
21,977 21,977
Gay Collins 3,032 3,032
Jasper Judd
A
5,000 5,000
Christine Montgomery 5,000 5,000
Arun Kumar Sarwal 5,026 -
Howard Williams 14,242 13,556
A
At date of retirement on 22 May 2025
Since the year end Howard Williams and Arun Kumar
Sarwal have acquired, respectively, an additional 204
Ordinary shares and 70 Ordinary shares through dividend
re-investment plans. 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 22
May 2025, shareholders approved the Directors’
Remuneration Report (excluding the Directors’
Remuneration Policy) in respect of the year ended 31
January 2025. 98.5% of proxy votes were in favour of the
resolution and 1.5% were against. There were abstentions
in respect of 279,665 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 2026 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 2026:
· 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
Howard Williams
Chairman
8 April 2026
Continued
Directors’ Remuneration Report
Dunedin Income Growth Investment Trust PLC 63
Strategic Report Financial Statements Overview Governance General Other Information
The Audit & Risk Committee presents its Report for the
year ended 31 January 2026.
Committee Composition
Throughout the year the Audit & Risk Committee
consisted of all the Directors except for the Chairman of
the Board. Since 22 May 2025, the Committee has been
chaired by Arun Kumar Sarwal 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.
Functions of the Audit & Risk Committee
The principal role of the Audit & Risk 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 risk management and
internal control framework 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 (2025: £nil). All non-audit services must
be approved in advance by the Audit & Risk 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.
· to report to the Board on how it has discharged its
responsibilities.
Activities During the Year
The Audit & Risk 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 2026 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 & Risk Committee’s Report
64 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 financial,
operational and compliance controls and risk
management. The Board, through the Audit & Risk
Committee, has prepared its own risk register which lists
potential risks as set out in the Strategic Report on pages
37 to 40. 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 2026, the Audit & Risk Committee
carried out an annual assessment of internal controls for
the year ended 31 January 2026 by considering
documentation from the Aberdeen Group, including the
internal audit and compliance functions and taking
account of events since 31 January 2026.
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 2026, the Audit & Risk
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 & Risk Committee’s Report
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Strategic Report Financial Statements Overview Governance General Other Information
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 & Risk Committee has reviewed the
effectiveness of the Auditor, Deloitte LLP (“Deloitte”),
including:
· Independence - the Auditor discusses with the Audit &
Risk 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 current professional guidelines the audit
partner is rotated after no more than five years and the
year ended 31 January 2026 is the fourth year for which
the present audit partner, Michael Caullay, has served.
The Audit & Risk Committee is satisfied that Deloitte is
independent and therefore supports the
recommendation to the Board that the re-appointment of
Deloitte as Auditor of the Company until the conclusion of
the next Annual General Meeting be put to shareholders
for approval at the Annual General Meeting.
In compliance with the appropriate regulations for the
tendering and rotation of auditors, the next audit tender of
the Company is due to take place by 2027.
Arun Kumar Sarwal
Chairman of the Audit & Risk Committee
8 April 2026
66 Dunedin Income Growth Investment Trust PLC
Financial Statements
7.5% of the Company’s total assets are invested
in the Banks sub-sector (2025: 3.3%).
Dunedin Income Growth Investment Trust PLC 67
The Company’s net asset value
(“NAV”) increased by 8.2% on a total
return basis. The share price total
return was 13.8%.
68 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;
· 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
Howard Williams
Chairman
8 April 2026
Statement of Directors’ Responsibilities
Dunedin Income Growth Investment Trust PLC 69
Strategic Report Financial Statements Overview Governance General Other Information
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 2026 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 22.
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 £3.9 million (2025: £4.3 million) which
was determined on the basis of 1% of net assets as at 31 January 2026.
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
70 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 Matters
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 £435.2 million as at 31 January 2026
(2025: £472.7 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
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Strategic Report Financial Statements Overview Governance General Other Information
investments has been included in the Audit & Risk Committee’s Report on page 64 as a significant reporting
matter.
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;
· we confirmed the existence of 100% of investments at the year-end date by obtaining independent
third-party confirmations directly from the Custodian; and
· we assessed the completeness and appropriateness of disclosures in relation to fair value measurement
and liquidity risk.
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 £3.9 million (2025: £4.3 million)
Basis for determining materiality 1% (2025: 1%) of net assets
Rationale for the benchmark applied Net assets have been chosen as this is considered the most relevant benchmark for
investors and is a key driver of shareholder value
Net assets: £393.5m
Materiality: £3.9m
Audit & Risk Committee
reporting threshold £0.2m
Net Assets Materiality
72 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 2026 audit (2025: 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) the quality of the control environment.
6.3 Error Reporting Threshold
We agreed with the Audit & Risk Committee that we would report to the Committee all audit differences in excess of
£0.2 million (2025: £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 & Risk 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 2024 to 30 September 2025. 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. Furthermore, we have performed additional procedures
on the bridging period where we have tested controls in relation to valuation and existence of investments.
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 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 pages 32 to 34. As 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
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Strategic Report Financial Statements Overview Governance General Other Information
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.
74 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 & Risk 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 & Risk 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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Investment Trust PLC
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Strategic Report Financial Statements Overview Governance General Other Information
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 56;
· 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 41;
· the Directors' statement is fair, balanced and understandable as set out on page 68;
· the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on
page 37;
· the section of the Annual Report that describes the review of effectiveness of risk management and internal control
systems set out on pages 63 to 64; and
· the section describing the work of the Audit & Risk Committee set out on pages 63 to 65.
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.
76 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 & Risk 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 eight years, covering the years ending 31 January 2018 to 31 January 2025. We were re-
appointed as part of the Annual General Meeting on 22 May 2025.
15.2 Consistency of the Audit Report with the Additional Report to the Audit & Risk Committee
Our audit opinion is consistent with the additional report to the Audit & Risk 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
8 April 2026
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Strategic Report Financial Statements Overview Governance General Other Information
Year ended 31 January 2026 Year ended 31 January 2025
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Gains on investments 10 – 13,321 13,321 – 16,405 16,405
Foreign currency (losses)/gains – (698) (698) – 175 175
Income 3 20,013 – 20,013 22,550 – 22,550
Investment management fee 4 (641) (961) (1,602) (691) (1,036) (1,727)
Administrative expenses 5 (725) – (725) (898) – (898)
Net return before finance costs and taxation 18,647 11,662 30,309 20,961 15,544 36,505
Finance costs 6 (740) (1,110) (1,850) (827) (1,240) (2,067)
Return before taxation 17,907 10,552 28,459 20,134 14,304 34,438
Taxation 7 (685) – (685) (510) – (510)
Return after taxation 17,222 10,552 27,774 19,624 14,304 33,928
Basic and diluted return per Ordinary share
(pence)
9 13.64 8.36 22.00 13.82 10.08 23.90
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
78 Dunedin Income Growth Investment Trust PLC
As at As at
31 January 2026 31 January 2025
Notes £’000 £’000
Non-current assets
Investments at fair value through profit or loss 10 435,150 472,652
Current assets
Debtors 11 3,605 3,292
Cash and cash equivalents 4,777 2,329
8,382 5,621
Creditors: amounts falling due within one year
Bank loan 12 (19,593) (18,907)
Other creditors 12 (653) (1,086)
(20,246) (19,993)
Net current liabilities (11,864) (14,372)
Total assets less current liabilities 423,286 458,280
Creditors: amounts falling due after more than one year 13 (29,760) (29,752)
Net assets 393,526 428,528
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 327,027 359,775
Revenue reserve 16 21,566 23,820
Equity shareholders’ funds 393,526 428,528
Net asset value per Ordinary share (pence) 17 327.40 317.55
The financial statements were approved and authorised for issue by the Board of Directors on 8 April 2026 and were signed on its
behalf by:
Howard Williams
Director
Company Number: SC000881
The accompanying notes are an integral part of the financial statements.
Statement of Financial Position
Dunedin Income Growth Investment Trust PLC 79
Strategic Report Financial Statements Overview Governance General Other Information
For the year ended 31 January 2026
Share Capital
Share premium redemption Capital Revenue
capital account reserve reserve reserve Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Balance at 31 January 2025 38,419 4,908 1,606 359,775 23,820 428,528
Return after taxation – – – 10,552 17,222 27,774
Repurchase of shares for Treasury – – (43,300) – (43,300)
Dividends paid 8 – – – – (19,476) (19,476)
Balance at 31 January 2026 38,419 4,908 1,606 327,027 21,566 393,526
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
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
80 Dunedin Income Growth Investment Trust PLC
Year ended Year ended
31 January 2026 31 January 2025
Notes £’000 £’000
Operating activities
Net return before finance costs and taxation 30,309 36,505
Adjustment for:
Gains on investments (13,321) (16,405)
Currency losses/(gains) 698 (175)
Decrease in accrued dividend income 11 116
Decrease/(increase) in other debtors excluding tax 14 (20)
Decrease in other creditors (32) (226)
Overseas withholding tax (1,023) (970)
Net cash flow from operating activities 16,656 18,825
Investing activities
Purchases of investments (135,747) (115,323)
Sales of investments 186,570 133,163
Net cash from investing activities 50,823 17,840
Financing activities
Interest paid (1,865) (2,007)
Dividends paid 8 (19,476) (19,710)
Buyback of Ordinary shares for treasury (43,678) (31,261)
Drawdown of Loan – 5,856
Net cash used in financing activities (65,019) (47,122)
Increase/(decrease) in cash and cash equivalents 2,460 (10,457)
Analysis of changes in cash and cash equivalents during the year
Opening balance 2,329 12,868
Effect of exchange rate fluctuations on cash held (12) (82)
Increase/(decrease) in cash as above 2,460 (10,457)
Closing balance 4,777 2,329
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 93.
Statement of Cash Flows
Dunedin Income Growth Investment Trust PLC 81
Strategic Report Financial Statements Overview Governance General Other Information
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 under the historical cost
convention, except for the revaluation of financial instruments held at fair value through profit or loss. 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 2026
82 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
Dunedin Income Growth Investment Trust PLC 83
Strategic Report Financial Statements Overview Governance General Other Information
(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
2026 2025
£’000 £’000
Income from investments
UK dividend income 12,731 13,458
Overseas dividends 5,505 6,623
18,236 20,081
Other income
Income on derivatives 1,736 2,390
Deposit Interest 4 36
Other Income 37 43
1,777 2,469
Total income 20,013 22,550
During the year, the Company earned premiums totalling £1,736,000 (2025 – £2,390,000) in exchange for entering into
derivative transactions. The Company had no open positions in derivative contracts at 31 January 2026 (2025 – no open
positions). Losses realised on the exercise of derivative transactions are disclosed in note 10.
84 Dunedin Income Growth Investment Trust PLC
4. Management fee
2026 2025
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Management fee 641 961 1,602 691 1,036 1,727
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 £261,000 (2025 – £274,000). 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 2026 (2025 – none).
The management agreement may be terminated by either party on six months’ written notice.
5. Administrative expenses
2026 2025
£’000 £’000
Directors’ fees 162 170
Auditor’s remuneration (excluding VAT):
– fees payable to the Company’s Auditor for the audit of the
Company’s annual accounts
43 39
Irrecoverable VAT 36 58
Promotional activities 226 200
Registrar’s fees 57 53
Other expenses 201 378
725 898
Expenses of £226,000 (2025 – £200,000) were paid to aFML in respect of the promotional activities of the Company. The
balance outstanding at the year end was £75,000 (2025 – £17,000).
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 85
Strategic Report Financial Statements Overview Governance General Other Information
6. Finance costs
2026 2025
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Bank loan 258 387 645 343 516 859
Loan Notes - repayable after more than five years 479 718 1,197 480 720 1,200
Amortised Loan Notes issue expenses 3 5 8 3 4 7
Bank overdraft - - - 1 - 1
740 1,110 1,850 827 1,240 2,067
Finance costs (excluding bank overdraft interest) are allocated 40% to revenue and 60% to capital.
7. Taxation
2026 2025
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
(a) Analysis of charge for the year
Overseas tax suffered 967 – 967 2,277 – 2,277
Overseas tax reclaimable (282) – (282) (1,767) – (1,767)
Total tax charge for the year 685 – 685 510 – 510
86 Dunedin Income Growth Investment Trust PLC
(b) Factors affecting the tax charge for the year. The UK corporation tax rate is 25% (2025 – 25%). The tax assessed for the
year is lower than the rate of corporation tax. The differences are explained below:
2026 2025
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Return before taxation 17,907 10,552 28,459 20,134 14,304 34,438
Corporation tax at 25% (2025 – 25%) 4,477 2,638 7,115 5,034 3,576 8,610
Effects of: –
Non-taxable UK dividend income (3,070) – (3,070) (3,342) – (3,342)
Capital gains on investments not taxable – (3,330) (3,330) – (4,102) (4,102)
Expenses not deductible for tax purposes 4 – 4 – – –
Currency gains not taxable – 174 174 – (43) (43)
Overseas taxes 685 – 685 510 – 510
Non-taxable overseas dividends (1,208) – (1,208) (1,493) – (1,493)
Excess management expenses (203) 518 315 (199) 569 370
Total tax charge 685 – 685 510 – 510
(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 £138,415,000 (2025 – £137,155,000). 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.
8. Ordinary dividends on equity shares
2026 2025
£’000 £’000
Amounts recognised as distributions paid during the year:
Third interim dividend for 2025 – 3.20p (2024 – 3.20p) 4,309 4,678
Final dividend for 2025 – 4.60p (2024 – 4.15p) 5,944 5,996
First interim dividend for 2026 – 3.20p (2025 – 3.20p) 4,057 4,569
Second interim dividend for 2026 – 4.25p (2025 – 3.20p) 5,182 4,467
Return of unclaimed dividends
A
(16) (20)
19,476 19,690
A
Unclaimed dividends returned to the Company during the year ended 31 January 2026 have been donated to charity (see note 22) .
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 87
Strategic Report Financial Statements Overview Governance General Other Information
A third interim dividend of 4.25p per Ordinary share was declared on 11 December 2025, payable on 27 February 2026 to
shareholders on the register on 6 February 2026 and has not been included as a liability in these financial statements. The
final dividend of 7.4p per Ordinary share was approved by the Board on 8 April 2026, payable on 29 May 2026 to
shareholders on the register on 8 May 2026 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 £17,222,000 (2025 – £19,624,000).
2026 2025
£’000 £’000
First interim dividend for 2026 – 3.20p (2025 – 3.20p) 4,057 4,569
Second interim dividend for 2026 – 4.25p (2025 – 3.20p) 5,182 4,467
Third interim dividend for 2026 – 4.25p (2025 – 3.20p) 5,104 4,309
Final dividend for 2026 – 7.40p (2025 – 4.60p) 8,781 5,944
23,124 19,289
The final dividend is based on the latest share capital of 118,665,838 Ordinary shares excluding those held in treasury.
9. Basic and diluted return per Ordinary share
2026 2025
£’000 p £’000 p
Revenue return 17,222 13.64 19,624 13.82
Capital return 10,552 8.36 14,304 10.08
Total return 27,774 22.00 33,928 23.90
Weighted average number of Ordinary shares in issue 126,250,861 141,967,627
88 Dunedin Income Growth Investment Trust PLC
10. Investments at fair value through profit or loss
2026 2025
£’000 £’000
Opening book cost 397,456 409,443
Investment holdings gains 75,196 64,644
Opening fair value 472,652 474,087
Analysis of transactions made during the year
Purchases 135,747 115,323
Sales - proceeds (186,570) (133,163)
Gains on investments 13,321 16,405
Closing fair value 435,150 472,652
Closing book cost 376,937 397,456
Closing investment holdings gains 58,213 75,196
Closing fair value 435,150 472,652
The Company received £186,570,000 (2025 - £133,163,000) from investments sold in the year. The book cost of these
investments when they were purchased was £156,266,000 (2025 - £127,311,000). 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 £1,338,000 (2025 - £563,000).
Premiums received of £1,736,000 (2025 - £2,390,000) are included within income per note 3.
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 on investments in the
Statement of Comprehensive Income. The total costs were as follows:
2026 2025
£’000 £’000
Purchases 599 463
Sales 84 82
683 545
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.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 89
Strategic Report Financial Statements Overview Governance General Other Information
11. Debtors: amounts falling due within one year
2026 2025
£’000 £’000
Net dividends and interest receivable 443 454
Tax recoverable 3,137 2,799
Other loans and receivables 25 39
3,605 3,292
12. Creditors: amounts falling due within one year
2026 2025
(a) Bank loan £’000 £’000
EUR 22,600,000 – 13 February 2025 – 18,907
EUR 22,600,000 – 23 February 2026 19,593 –
19,593 18,907
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 2026 €22,600,000 had been drawn down at a rate of 3.03% (2025 – €22,600,000 at a rate
of 3.93%), which matured on 23 February 2026. At the date this Report was approved €22,600,000 had been drawn
down at a rate of 2.97%, maturing on 23 April 2026. 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.
2026 2025
(b) Other creditors £’000 £’000
Loan Notes and bank loan interest 197 220
Amount due to brokers – 368
Sundry creditors 456 498
653 1,086
90 Dunedin Income Growth Investment Trust PLC
13. Creditors: amounts falling due after more than one year
2026 2025
£’000 £’000
3.99% Loan Notes 2045 30,000 30,000
Unamortised Loan Note issue expenses (240) (248)
29,760 29,752
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 2026 was £23,175,000 (2025 - £23,114,000), 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
2026 2025
£’000 £’000
Allotted, called up and fully paid:
120,197,609 (2025 – 134,949,033) Ordinary shares of 25p each – equity 30,049 33,737
Treasury shares:
33,480,326 (2025 –18,728,902) Ordinary shares of 25p each – equity 8,370 4,682
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 14,751,424 (2025 – 11,223,856) ordinary shares at a cost of £43,300,000, including
expenses (2025 – £31,525,000, including expenses). All of the shares were placed in treasury. Subsequent to the year end the
company repurchased a further 1,531,771 Ordinary shares at a total cost of £4,546,000.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 91
Strategic Report Financial Statements Overview Governance General Other Information
15. Analysis of changes in financing during the year
2026 2025
Equity Equity
share capital share capital
(including Loan (including Loan
premium) Notes premium) Notes
£’000 £’000 £’000 £’000
Opening balance at 31 January 2025 43,327 29,752 43,327 29,745
Movement in unamortised Loan Notes issue expenses - 8 - 7
Closing balance at 31 January 2026 43,327 29,760 43,327 29,752
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.
2026 2025
Revenue reserve (£’000) 21,566 23,820
Number of Ordinary shares in issue at year end 120,197,609 134,949,033
Revenue reserve per Ordinary share (p) 17.94 17.65
Less: – third interim dividend (p) (4.25) (3.20)
– final dividend (p) (7.40) (4.60)
Revenue reserve per Ordinary share (p) as per the Companies Act 6.29 9.85
92 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:
2026 2025
Net assets attributable (£’000) 393,526 428,528
Number of Ordinary shares in issue at year end
A
120,197,609 134,949,033
Net asset value per Ordinary share 327.40p 317.55p
A
Excluding shares held in treasury.
Adjusted net assets 2026 2025
Net assets attributable (£’000) as above 393,526 428,528
Unamortised Loan Note issue expenses (note 13) (240) (248)
Adjusted net assets attributable (£’000) 393,286 428,280
Number of Ordinary shares in issue at year end
A
120,197,609 134,949,033
Adjusted net asset value per Ordinary share 327.20p 317.36p
A
Excluding shares held in treasury.
Net assets - debt at fair value £’000 £’000
Net assets attributable 393,526 428,528
Amortised cost Loan Notes 29,760 29,752
Market value Loan Notes (23,175) (23,114)
Net assets attributable 400,111 435,166
Number of Ordinary shares in issue at the period end
A
120,197,609 134,949,033
Net asset value per Ordinary share (debt at fair value) 332.88p 322.47p
A
Excluding shares held in treasury.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 93
Strategic Report Financial Statements Overview Governance General Other Information
18. Analysis of changes in net debt
At Currency Non-cash At
31 January 2025 differences Cash flows movements 31 January 2026
£’000 £’000 £’000 £’000 £’000
Cash and cash equivalents 2,329 (12) 2,460 - 4,777
Debt due within one year (18,907) (686) - - (19,593)
Debt due after more than one year (29,752) - - (8) (29,760)
(46,330) (698) 2,460 (8) (44,576)
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)
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 £1,338,000 (2025 – £563,000). As disclosed in note 3, the premium received and fair value
changes in respect of options written in the year was £1,736,000 (2025 – £2,390,000). The largest position in derivative
contracts held during the year at any given time was £872,000 (2025 – £1,028,000). The Company had no open positions in
derivative contracts at 31 January 2026 (2025 – 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.
94 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.
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.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 95
Strategic Report Financial Statements Overview Governance General Other Information
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 2026 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 2026 Years % £’000 £’000
Assets
Sterling - - - 4,777
Total assets - - - 4,777
Liabilities
Bank loans 0.09 3.03 (19,593) -
Loan Notes 19.87 3.99 (29,760) -
Total liabilities - - (49,353) -
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) -
96 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 2026. 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 2026 31 January 2025
Net Total Net Total
monetary currency monetary currency
Investments assets exposure Investments assets exposure
£’000 £’000 £’000 £’000 £’000 £’000
Euro 63,652 (16,551) 47,101 90,674 (16,222) 74,452
Danish Krone – 68 68 9,126 72 9,198
Norwegian Krone – 12 12 – 11 11
Swedish Krona 8,073 – 8,073 11,375 – 11,375
Sterling 363,425 (25,153) 338,272 361,477 (27,985) 333,492
Total 435,150 (41,624) 393,526 472,652 (44,124) 428,528
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.
(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.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 97
Strategic Report Financial Statements Overview Governance General Other Information
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 30 to 34, 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 2026
would have increased by £43,515,000 (2025 – increase of £47,265,000) 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 2026 £’000 £’000 £’000 £’000 £’000 £’000 £’000
Bank loans 19,593 – – – – – 19,593
Loan Notes – – – – – 30,000 30,000
Interest cash flows on bank loans and
loan notes
1,248 1,197 1,197 1,197 1,197 17,955 23,991
Cash flows on other creditors 456 – – – – – 456
21,297 1,197 1,197 1,197 1,197 47,955 74,040
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
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 2026 are shown in notes 12 and 13.
98 Dunedin Income Growth Investment Trust PLC
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 2026 and 31 January 2025 the amortised cost of the Company’s Loan Notes was
£29,760,000 and £29,752,000 respectively. At 31 January 2026 and 31 January 2025 the Company’s bank loans
amounted to £19,593,000 and £18,907,000 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.
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:
2026 2025
Balance Maximum Balance Maximum
Sheet exposure Sheet exposure
£’000 £’000 £’000 £’000
Non-current assets
Investments at fair value through profit or loss 435,150 – 472,652 –
Current assets
Cash and short term deposits 4,777 4,777 2,329 2,329
439,927 4,777 474,981 2,329
None of the Company’s financial assets is past due or impaired.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 99
Strategic Report Financial Statements Overview Governance General Other Information
Fair values of financial assets and financial liabilities. The fair value of borrowings has been calculated at £42,768,000 as
at 31 January 2026 (2025 – £42,021,000) compared to an accounts value in the financial statements of £49,353,000
(2025 – £48,659,000) (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.
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 2026 Note £’000 £’000 £’000 £’000
Financial assets at fair value through profit or loss
Quoted equities a) 435,150 - - 435,150
Total 435,150 - - 435,150
Level 1 Level 2 Level 3 Total
As at 31 January 2025 £’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
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.
100 Dunedin Income Growth Investment Trust PLC
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.
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 pages 61 and 62.
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 £16,000 in respect of returned, unclaimed dividends accumulated over a number of
years. The Board took the decision to donate these monies to the Aberdeen Group Charitable Trust. The Aberdeen Group
Charitable Trust 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.
Notes to the Financial Statements
Continued
Dunedin Income Growth Investment Trust PLC 101
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.
102 Dunedin Income Growth Investment Trust PLC
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 abrdn Fund Managers Limited, as 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 107.
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
Company Information and Contacts). 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
Company Information and Contacts) 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 (under current tax rules and
depending on individual circumstances) 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
Dunedin Income Growth Investment Trust PLC 103
Strategic Report Financial Statements Overview Governance General Other Information
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
aberdeen Investment Trusts
@aberdeenTrusts
aberdeen Investment Trusts
@aberdeenInvestmentTrusts
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.
104 Dunedin Income Growth Investment Trust PLC
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 109.
Dividend Cover
Revenue return per share divided by the dividend per
share, expressed as a ratio. Refer to Alternative
Performance Measures on page 108.
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 108.
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.
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.
Glossary of Terms Glossary of Terms
Dunedin Income Growth Investment Trust PLC 105
Strategic Report Financial Statements Overview Governance General Other Information
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 109.
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 110.
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.
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.
106 Dunedin Income Growth Investment Trust PLC
Issued Share Capital at 31 January 2026
120,197,609 Ordinary shares of 25p (153,677,935 including treasury shares)
Treasury Shares at 31 January 2026
33,480,326 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
Year ended 31 January 2026 14,751,424 Ordinary shares purchased to hold in treasury
Share Capital History
Dunedin Income Growth Investment Trust PLC 107
Strategic Report Financial Statements Overview Governance General Other Information
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 2025.
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
2025 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 2026 1.23 1.24
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
)
108 Dunedin Income Growth Investment Trust PLC
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.
2026 2025
Revenue return per share a 13.64p 13.80p
Dividends per share b 19.10p 14.20p
Dividend cover a/b 0.71 0.97
Dividend yield
The annual dividend per Ordinary share divided by the share price at the year end, expressed as a percentage.
2026 2025
Dividends per share (p)
a 19.1 14.2
Share price (p)
b 308.0 285.0
Dividend yield
a/b 6.2% 5.0%
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.
2026 2025
Borrowings (£’000) a 49,353 48,659
Cash (£’000) b 4,777 2,329
Amounts due to brokers (£’000) c – 368
Amounts due from brokers (£’000) d – –
Shareholders’ funds (£’000) e 393,526 428,528
Net gearing (a-b+c-d)/e 11.33% 10.90%
Alternative Performance Measures
Dunedin Income Growth Investment Trust PLC 109
Strategic Report Financial Statements Overview Governance General Other Information
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.
2026 2025
NAV per Ordinary share (p) (see note 17) a 332.88p 322.47p
Share price (p) b 308.00p 285.00p
Discount (a-b)/b 7.47% 11.62%
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.
2026 2025
Investment management fees (£’000) 1,602 1,727
Administrative expenses (£’000) 725 898
Less: non-recurring charges (£’000) (30) (104)
Ongoing charges (£’000) 2,297 2,521
Average net assets (£’000) 406,263 446,732
Ongoing charges ratio 0.57% 0.56%
110 Dunedin Income Growth Investment Trust PLC
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 2026 NAV Price
Opening at 1 February 2025 a 322.5p 285.0p
Closing at 31 January 2026 b 332.9p 308.0p
Price movements c=(b/a)-1 3.2% 8.1%
Dividend reinvestment
A
d 5.0% 5.7%
Total return c+d +8.2% +13.8%
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%
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 111
General
The Annual General Meeting will be held at
18 Bishops Square, London E1 6EG at 12 noon
on Thursday 21 May 2026.
The Company will also be hosting an online shareholder
presentation, which will be held at 11.00am on Friday
8 May 2026. Full details on how to register for the
event can be found on the Company’s website.
3.0% of the Company’s total assets are invested in
the Industrial Engineering sub-sector (2025: 2.1%).
112 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 18 Bishops Square, London E1 6EG at 12 noon on Thursday 21 May 2026 for the following
purposes:
Ordinary Business
To consider and, if thought fit, pass resolutions 1 to 12 (inclusive) as ordinary resolutions:
1. To receive and adopt the audited financial statements of the Company for the financial year ended
31 January 2026 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 2026 which appears on pages 60 to 62 of the Annual Report and Accounts.
3. To approve the Directors’ Remuneration Policy which appears on page 60 of the Annual Report and Accounts.
4. To approve a final dividend of 7.40p per Ordinary share in respect of the financial year ended 31 January 2026.
5. To elect Ms Katrina Hart as a Director of the Company.
6. To re-elect Mr Arun Kumar Sarwal as a Director of the Company.
7. To re-elect Mr Howard Williams as a Director of the Company.
8. To re-elect Ms Christine Montgomery as a Director of the Company.
9. To re-elect Ms Gay Collins as a Director of the Company.
10. 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.
11. To authorise the Directors to determine the remuneration of the Company’s Auditor.
12. 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 £9,887,830 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 2027 (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 13 and 14 as special resolutions:
13. 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 12 set out in the notice of the 2026 Annual General Meeting ("Resolution 12"), 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 12 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 113
Strategic Report Financial Statements Overview Governance General Other Information
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 £2,966,645 or, if less, the number representing 10% 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
2027 (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.
14. 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 17,788,009 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
114 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 2027 (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
8 April 2026
Notice of Annual General Meetin
g
Continued
Dunedin Income Growth Investment Trust PLC 115
Strategic Report Financial Statements Overview Governance General Other Information
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.
116 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 19 May 2026 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 19 May 2026 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 8 April 2026 (being the latest practicable date prior to the publication of this document) the Company’s issued
share capital comprised 118,665,838 Ordinary shares of 25p each and 35,012,097 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 8 April 2026 was 118,665,838.
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 election/re-election are set out on pages 48 to 50 of the Annual
Report and financial statements of the Company for the financial year ended 31 January 2026.
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 117
Strategic Report Financial Statements Overview Governance General Other Information
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.
118 Dunedin Income Growth Investment Trust PLC
Dunedin Income Growth Investment Trust PLC 119
Strategic Report Financial Statements Overview Governance General Other Information
120 Dunedin Income Growth Investment Trust PLC
Dunedin Income Growth Investment Trust PLC 121
Directors
Howard Williams (Chairman)
Gay Collins
Katrina Hart (appointed 1 March 2026)
Christine Montgomery
Arun Kumar Sarwal
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
aberdeen Investment Trusts
@aberdeenTrusts
aberdeen Investment Trusts
@aberdeenInvestmentTrusts
Registrar
Equiniti Limited
Highdown House
Yeoman Way
Worthing
West Sussex BN99 3HH
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
Company Information and Contacts
For more information visit dunedinincomegrowth.co.uk
aberdeeninvestments.com
dunedinincomegrowth.co.uk
Dunedin Income Growth
Investment Trust PLC
Annual Report 31 January 2026
A differentiated, UK-centric strategy, targeting rising income and capital growth,
aligned with our sustainable investing approach