Dunedin Income Growth Trust: the UK rally beneath the surface

Ben Ritchie, Co-Manager of Dunedin Income Growth Investment Trust (DIG), discusses why the trust has lagged the strong UK market despite delivering solid returns in 2025 and early 2026. He explains how performance has been concentrated in sectors such as banks, defence and tobacco, and why the trust remains focused on quality businesses, technology and UK mid-caps. He also outlines the role financials play within the portfolio, discusses recent shifts from European holdings into UK opportunities, and explains how overseas investments are used to diversify the trust and access sectors unavailable in the UK market.