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Dunedin Income Growth Investment Trust PLC on Thursday said ‘the higher quality part of the market lagged significantly’ as it underperformed against its benchmark. The UK-focused investment trust said net asset value per share was 327.40 pence as at January 31, up 3.1% from 317.55p a year ago. NAV total return per share was 8.2% in the financial year ended January 31, underperforming against its benchmark, the FTSE All-Share index which had a total return of 21.1%. Dunedin Income said: ‘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.’ The company proposed a final dividend per share of 7.40p, up 61% from 4.60p a year ago. This brings the total payout to 19.10p, up 35% from 14.20p. Chair Howard Williams said: ‘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.’ Investment Managers Ben Ritchie and Rebecca Maclean, Aberdeen, said: ‘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 longterm returns. Dunedin Income shares were 0.5% lower at 297.50 pence each on Thursday morning in London. Copyright 2026 Alliance News Ltd. All Rights Reserved.
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