DUNEDIN INCOME GROWTH INVESTMENT TRUST PLC
Circular to Shareholders concerning proposed amendment to Investment Policy
11 November 2010
In accordance with the statement made by the Chairman of Dunedin Income Growth Investment Trust PLC (the "Company") in the half yearly report ended 31 July 2010, the Board of the Company announces that it intends to seek shareholder approval at a general meeting convened for 7 December 2010 for an amendment to the Company's investment policy in order that the Company may invest up to 20 per cent. of its gross assets in overseas companies (but otherwise, in accordance with its current stated investment policy) such that the new investment policy would be as follows:
"In pursuit of the Company's objective, the Company's investment policy is to invest in high quality companies with strong income potential, while at the same time providing an above-average portfolio yield.
The Company maintains a diversified portfolio consisting, substantially, of equity or equity-related securities, and it can invest in other financial instruments. Whilst the Company is invested mainly in companies listed or quoted in the United Kingdom it has the freedom to invest up to 20 per cent. of its gross assets overseas.
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 per cent. 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.
It is the policy of the Company to invest no more than 15 per cent. of its gross assets in other listed investment companies.
The Company complies with chapter 4 of Part 24 of the Corporation Tax Act 2010 and does not invest more than 15 per cent. of its gross assets in any one company."
The Company's investment benchmark (the FTSE All Share Index) will not change and the change to the investment policy will not affect the Company's membership of the UK Growth Income Sector as defined by the Association of Investment Companies.
The Board and the Company's investment manager, Aberdeen Asset Managers Limited are of the view that the Company will enhance its ability to construct a diversified portfolio of high quality companies with strong income growth potential which, at the same time, provide an above-average portfolio yield.
Two copies of the circular to shareholders concerning the proposed amendment to the Company's investment policy have been submitted to the National Storage Mechanism and will shortly be available at http://www.Hemscott.com/nsm.do
Enquiries:
Ian Massie Tel: 0131 528 4000
Aberdeen Asset Managers Limited
Jeremy Whitley Tel: 0131 528 4000
Aberdeen Asset Managers Limited