Dunedin Income Growth’s results for the six months ended 31 July show the fund’s asset value falling by 2.1% and the share price by 4.7% despite a 2.8% positive return on the FTSE All-Share. on the dividend, they say they intend to make three equal distributions of 2.575p in August, November and February and to pay a final balancing dividend in May next year.
Smaller companies outperformed their larger brethren with the FTSE 250 rising 10% and the FTSE Small Cap ex IT index increasing by 12.4% set against the 1.2% return from the FTSE 100.
The managers’ statement says the fund suffered from a relative lack of small and mid-cap companies, euro weakness affected the value of overseas holdings and a number of large positions such as Cobham, Compass, AstraZeneca and Pearson reversed strong share price performances in the prior period with, they believe, limited justification.
DIG : Large cap. bias holds back Dunedin Income Growth