dunedinincomegrowth.co.uk

Dunedin Income Growth

Investment Trust PLC

Annual Report 31 January 2024

Targeting income and long-term growth from mainly UK companies

chosen for their quality and commitment to improving sustainability

Dunedin Income Growth Investment Trust PLC 1

“The NAV total return of 6.7% outperformed the

FTSE All-Share Index return of 1.9%, resulting in the

Company ranking top of the AIC UK Equity Income

sector by NAV total return for the year.”

David Barron, Chairman

“The portfolio remains highly differentiated

compared to both peers and its benchmark. It

remains the only UK Equity Income investment trust

with a formal sustainability approach.”

Ben Ritchie and Rebecca Maclean,

abrdn Investments Limited

2 Dunedin Income Growth Investment Trust PLC

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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

Strategic Report

Chairman’s Statement 8

Overview of Strategy 12

Promoting the Success of the Company 19

Performance 22

Investment Process 26

Investment Manager’s Review 34

Information About the Investment Manager 37

Portfolio

Ten Largest Investments 40

Portfolio 41

Portfolio Sector Breakdown 43

Sector Analysis 44

Investment Case Studies 46

Governance

Board of Directors 50

Directors’ Report 53

Directors’ Remuneration Report 61

Audit Committee’s Report 65

Financial Statements

Statement of Directors’ Responsibilities 70

Independent Auditor’s Report 71

Statement of Comprehensive Income 79

Statement of Financial Position 80

Statement of Changes in Equity 81

Statement of Cash Flows 82

Notes to the Financial Statements 83

Other Information

Investor Information 104

Glossary of Terms 106

Your Company’s History 109

Share Capital History 110

AIFMD Disclosures (Unaudited) 111

Alternative Performance Measures 112

General

Notice of Annual General Meeting 116

Contact Addresses 125

Contents

Dunedin Income Growth Investment Trust PLC 3

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Built to help your returns

keep pace with the

cost of living

Searching out the UK and

European companies

shaping a better future

Actively investing to bring

together what we believe

are the best opportunities

Long term growth Reliable quarterly income

To capture long-term growth, the Investment

Manager looks across the UK and Europe to find

companies, from major multi-nationals to dynamic

smaller companies, benefiting from major economic

trends such as energy transition, digitisation, shifting

demographics and changing consumer behaviour.

To keep delivering a reliable and growing quarterly

income, the team invests in well-managed, financially

healthy companies with robust earnings potential.

A sustainable focus Robust financial returns

By using a range of forward-looking tools to interrogate

Environmental, Social and Governance (“ESG”)

practices, theInvestment Manager looks to ensure

that every company it invests in is leading on

sustainability today or taking steps to

lead the way tomorrow.

By applying these stringent criteria, the Company

is dedicated to delivering robust financial returns

for investors – and helping to shape a better

future for everyone.

Company Summary

4 Dunedin Income Growth Investment Trust PLC

Net asset value total return

Earnings per share (revenue)

+6.7% 13.5

2023 +2.4% 2023 13.0p

Ongoing charges

Share price total return

0.64%

(

1.6

)

2023 0.64% 2023 (0.9)%

Discount to net asset value

Dividends per Ordinary share

10.7% 13.75

2023 2.9% 2023 13.10p

Alternative Performance Measure (see pages 112 to 114).

With debt at fair value, dividends reinvested (see page 94).

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

312.2

297.6

309.0

302.8

309.0

20 21 22 23 24

301.0

287.0

310.0

294.0

276.0

20 21 22 23 24

12.70

12.80

12.90

13.10

13.75

20 21 22 23 24

Performance Hi

hli

hts

Dunedin Income Growth Investment Trust PLC 5

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Calendar

Online shareholder presentation

7 May 2024

Annual General Meeting (London)

23 May 2024

Expected payment dates of quarterly dividends

31 May 2024

30 August 2024

29 November 2024

28 February 2025

Half year end

31 July 2024

Expected announcement of results for the

six months ending 31 July 2024

September 2024

Financial year end

31 January 2025

Expected announcement of results for the

year ending 31 January 2025

April 2025

Financial Calendar

6 Dunedin Income Growth Investment Trust PLC

31 January 2024 31 January 2023 % change

Total assets (£’000) (see page 108 for definition) 488,867 492,105 (0.66)

Equity shareholders’ funds (£’000) 445,815 448,605 (0.62)

Market capitalisation (£’000) 403,437 435,898 (7.45)

Net asset value per Ordinary share 304.99p 302.57p +0.80

Net asset value per Ordinary share with debt at fair value

308.98p 302.80p +2.04

Share price (mid) 276.00p 294.00p (6.12)

FTSE All-Share Index 4,173.06 4,255.72 (1.94)

Discount (difference between share price and net asset value)

Discount where borrowings are deducted at fair value

10.67% 2.91%

Gearing (see page 107 for definition)

Net gearing

6.79% 7.11%

Dividends and earnings

Total return per share 15.45p 1.92p

Revenue return per share 13.54p 13.02p +4.03

Total dividend per share for the year 13.75p 13.10p +4.96

Dividend cover

0.99 0.99

Revenue reserves

Prior to payment of third and final dividends

16.34p 16.07p

After payment of third and final dividends

8.99p 8.97p

Operating costs

Ongoing charges

0.64% 0.64%

Considered to be an Alternative Performance Measure as defined on pages 112 and 113.

Calculated by dividing the revenue reserve per the Statement of Financial Position on page 80 by the number of shares in issue at the reporting date per note 16 on page 93.

Third interim dividend for the year ended 31 January 2024 of 3.2p per share (2023 – 3.00p). Final dividend for the year ended 31 January 2024 of 3.83p per share (2023 – final

dividend of 4.10p). See note 16 on page 93 for further details.

Calculated in accordance with the latest AIC guidance issued in October 2020 to increase the scope of reporting the look-through costs of holdings in investment companies.

Financial Hi

hli

hts

Dunedin Income Growth Investment Trust PLC 7

Strategic Report

The Company is an investment

trust with a premium listing on the

London Stock Exchange.

The Company’s objective is to

achieve growth of income and

capital from a portfolio invested

mainly in companies listed or

quoted in the United Kingdom

that meet the Company’s

sustainable and responsible

investing criteria as set by

the Board.

9.9% of the Company’s total assets are

invested in the Pharmaceuticals and

Biotechnology sub-sector.

8 Dunedin Income Growth Investment Trust PLC

I am pleased to present the Annual Report for Dunedin Income Growth Investment Trust for the year ended 31 January

2024 and to report that our Company’s net asset value (“NAV”) total return outperformed both the benchmark and

peers for the year.

· NAV total return of 6.7%, outperforming the FTSE All-Share Index return of 1.9%, resulting in the Company

ranking top of the AIC UK Equity Income sector by NAV total return for the year.

· Five year NAV total return of 43.8%, with the Company ranking 3rd out of 20 in the AIC UK Equity Income

sector by NAV total return.

· Record revenue return for the year of 13.54p per share, an increase of 4.0%.

· Total dividend for the year of 13.75p per share, an increase of 5.0% which compares to the CPI increase of 4.0%.

Performance

After the rapid tightening of monetary policy and

dramatic geopolitical and domestic political events of

2022, the reporting period this year provided a more

stable investment environment and one that provided

fewer headwinds to the Company’s investment strategy.

As a result, the portfolio’s total return exceeded that of the

FTSE All-Share Index and, in the process, delivered a

positive absolute return. Whilst performance of the

portfolio, which is highly active and differentiated from our

benchmark, should be considered over longer time

periods, this year’s performance represents a welcome

return to outperformance after two years in which the

Investment Manager’s strategic focus on high quality

companies with an emphasis on dividend growth and

sustainability had proven something of a challenge in a

market that had favoured more value orientated

investment styles and seen strong returns from

commodity related sectors.

Over the longer term, the Company has delivered a NAV

total return of 43.8% over five years compared to

the benchmark return of 30.4%, and over that period ranks

3rd out of 20 in the AIC UK Equity Income sector by NAV

total return.

The Board recognises the importance of the

dividend return to shareholders and we are pleased to

report that the portfolio has seen continued revenue

growth, with revenue earnings per share reaching another

record high, at the upper end of our original expectations

for the year.

The NAV total return of the Company remains ahead of

the benchmark and peers over both the short and longer

term. The main frustration in the period has been the

widening of the discount at which the Company’s shares

are trading to NAV. Particularly as this now represents

a wider discount than the average of the UK Equity

Income sector, despite stronger performance. Alongside

that, the portfolio remains highly differentiated to its peer

group, offering a highly active, relatively concentrated

strategy, with a sustainability overlay that remains unique

within the sector and rare within the wider investment

trust universe.

“The portfolio remains highly

differentiated to its peer group,

with a sustainability overlay that

remains unique within the sector

and rare within the wider investment

trust universe.”

We remain committed to the sustainability ambitions

of the Company and believe it is the right approach

when investing for the long term and to deliver sustainable

and growing dividends. We expect that investors will

return their focus towards this segment of the market

as environmental and social risks rise and asset owners

turn their attention to the impact of their holdings. For the

Investment Manager, this is about both avoiding risks and

taking advantage of opportunities such as investing

behind the powerful demand trends stemming from

the climate transition.

Earnings and Dividend

Investment income increased by 4.6% during the year,

reflecting good progress in dividend distributions from

companies in the portfolio. The revenue return per

share increased by 4.0%, reaching an all-time high of

13.54p, growing slightly less than income due primarily to

higher finance costs given increases in interest rates.

Chairman’s Statement

Dunedin Income Growth Investment Trust PLC 9

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Having paid three quarterly dividends of 3.2p per

share, the Board is proposing a final dividend of 4.15p per

share, payable on 31 May 2024 to shareholders on the

13.75p per share for the year, an increase of 5.0% on last

year and ahead of the rate of inflation of 4.0% as

measured by CPI. This represents a welcome return to

dividend growth in real terms after two years of

exceptionally high inflation and will be the 40th year out of

the past 44 that the Company has grown its dividend, with

the distribution maintained in the other four years.

Furthermore, having increased the dividend in every year

since 2011, the Company is classified as a ‘next generation

of dividend heroes’ by the Association of Investment

Companies, being one of the 33 investment trusts that

have raised their dividend for 10 to 19 consecutive years.

“The revenue return per share

increased by 4.0%, reaching

an all-time high of 13.54p.”

Following payment of the final dividend, we will

have utilised 0.21p per share of the Company’s

revenue reserves to meet dividends declared for this

financial year, meaning that 9.0p per share will be

available to support future distributions. This represents

approximately 65% of the current annual dividend cost.

The net revenue earned during the financial year covers

98.5% of the proposed dividend cost for the year. The

Company has drawn 2.84p per share from revenue

reserves since January 2019, both through the strategic

transition away from higher yielding, lower growth

companies and, particularly in 2020/21, to support the

dividend through a period of extraordinary market

disruption when 1.9p per share was utilised from

revenue reserves following the impact of the Covid

pandemic on the portfolio. It is worth noting that, given its

long history, the Company is in a favourable position of

having the ability to pay dividends out of realised capital

reserves which exceeded £300 million at the year end,

forming a significant part of equity shareholders’ funds.

The increased dividend of 13.75p per share represents a

yield of 5.0% based on the share price of 276p at the end

of the year, compared to a notional yield of 4.0% from the

FTSE All-Share Index. Our distribution policy remains to

grow the dividend faster than inflation over the medium

term and, with the Company’s robust revenue and capital

reserves and the healthy underlying dividend and

earnings growth of the companies within the portfolio, we

believe that the policy remains very well supported.

“The increased dividend of 13.75p

per share represents a yield of 5.0%

based on the share price of 276p at

the end of the year.”

Comments on SDR

The Board notes the FCA’s recent regulation on

sustainability disclosures, including product labelling and

presentation of sustainable credentials by UK funds,

including investment trusts; the Sustainable Disclosure

Regime (‘SDR”). The Board is considering the implications

of this for the Company, which is one of the few UK

investment trusts to adopt a sustainable investment

approach. It is worth noting that the decision to formally

adopt the sustainable investment approach in 2021 was

very much an evolution of our investment approach which

focuses on quality companies capable of delivering

superior total returns with growing income, rather than a

response to heightened levels of investor interest. The

Board will continue to ensure that our approach and

process are described in terms that meet all facets of UK

regulation and we are confident that our successful,

differentiated investment approach will not have to

change in any material respect as a result of the

introduction of this regulation.

Gearing

The Board believes that the sensible use of

modest financial gearing, whilst amplifying market

movements in the short term, will enhance returns of both

capital and income to shareholders over the long term.

We also recognise the benefit that having a reasonable

proportion of long-term fixed rate funding provides to

managing the Revenue Account, through greater

certainty over financing costs. The Company currently

employs two sources of gearing; the £30 million loan notes

maturing in 2045, and a £30 million multi-currency

revolving credit facility that expires in July 2024. A Sterling

equivalent of £13.3 million of the revolving credit facility

was drawn down at the year end. The loan notes bear a

fixed interest rate of 3.99% and the multi-currency facility

is at a variable rate, and thus the costs of borrowing have

increased compared to the prior year.

10 Dunedin Income Growth Investment Trust PLC

With debt valued at par, the Company’s net

gearing decreased from 7.1% to 6.8% during the year. This

decline was due to holding a higher cash balance at the

year end and a small reduction in borrowings due to the

impact of foreign exchange translation. The Board

believes this remains a relatively conservative level of

gearing and, with part of the revolving credit facility

undrawn, this provides the Company with

financial flexibility should opportunities to deploy

additional capital arise.

Discount

The share price total return for the year of -1.6% was

significantly lower than the NAV total return, reflecting a

move in the discount from 2.9% at the end of last year

to 10.7% as at 31 January 2024 (on a cum-income basis

with borrowings stated at fair value). In response to this

widening during the year, 2.1 million shares were bought

back at an average price of £2.69, well below the NAV.

The Board believes a consistent rating of the

Company’s shares close to the underlying asset value is of

significant benefit to shareholders. As well as a strong

focus on execution of the investment strategy, the Board

continues to support efforts to attract new investors and

retain existing ones through clear messaging and regular

engagement with investors. We are confident that the

company’s strong performance, attractive dividend

profile and differentiated positioning are a good basis to

support a strong rating for the Company’s shares over the

medium term. We will continue to use the buyback facility

to provide liquidity and address the imbalances between

buyers and sellers. Continued good performance and a

renewal of broadly based interest in UK equity markets

will, we believe, place the Company’s shares back on a

rating that reflects its performance. As in previous years,

we will seek shareholders’ permission at the forthcoming

AGM to buy back shares and issue new shares.

Annual General Meeting and Online

Shareholder Presentation

AGM

The AGM will be held at 12 noon on Thursday 23 May 2024

at the offices of abrdn, 18 Bishops Square, London E1 6EG.

The meeting will include a presentation from the

Investment Manager and will be followed by lunch. We

encourage all shareholders to complete and return the

Proxy Form enclosed with the Annual Report so as to

ensure that your votes are represented at the meeting. If

you hold your shares in the Company via a share plan or a

platform and would like to attend and/or vote at the AGM,

then you will need to make arrangements with the

relevant administrator.

We recognise that many shareholders who previously

held the Company’s shares through the abrdn Savings

Schemes now hold their shares through the Interactive

Investor platform. Where we have contact details, abrdn

will keep you up to date with information relating to the

Company, including regarding the AGM. You can also

links to videos and podcasts by the portfolio managers,

articles on the Company and notification of publication of

interim and annual results. You can register by scanning

the QR Code on the Contents Page of this Annual Report

or by registering here: www.dunedinincomegrowth.co.uk.

We would encourage all shareholders to register for

updates. In addition, the Association of Investment

Companies has included helpful information on its website

explaining how platform customers can attend and vote

at an AGM: www.theaic.co.uk/how-to-vote-your-shares.

Should you wish to receive any information directly from

the Company, or request to receive a hard copy of this

and future Annual Reports, please contact the Company

Secretary at CEF.CoSec@abrdn.com

The Notice of Meeting is contained on pages 116 to 121.

Online Shareholder Presentation

In order to encourage as much interaction as possible with

our shareholders, and especially for those who are unable

to attend the AGM, we will also be hosting an Online

Shareholder Presentation, which will be held at 10.00 am

on Tuesday 7 May 2024. 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. The online presentation is being held

ahead of the AGM to allow shareholders to submit their

proxy votes subsequently.

Full details on how to register for the online event can be

found at: https://bit.ly/abrdn-Dunedin-Income-2024

Details are also contained on the Company’s website.

Board Succession

It is the Company’s stated policy that Directors should

stand down after nine years on the Board. Jasper Judd,

who is Chairman of the Audit Committee, and I, both

joined the Board in February 2016. Accordingly, we will

stand down from the Board at the conclusion of the

Company’s AGM in 2025. The Board will recruit a further

Director during the course of this financial year who, it is

intended, will take over from Jasper as Chairman of the

Audit Committee. The number of Directors will therefore

Chairman’s Statement

Continued

Dunedin Income Growth Investment Trust PLC 11

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

increase to six for a short period to allow for an orderly

handover and smooth succession. Howard Williams, who

has been a Director since April 2018, will succeed me as

Chair of the Company and it is the Board’s intention to

recruit a fifth Director in 2025 to bring the number of

Directors back to five.

Outlook

The Company has a clear focus on generating both total

return and dividend growth while formally incorporating

sustainability into its mandate. The Board believes that this

is the correct strategy to deliver capital outperformance

and dividend growth over the longer term. Having

weathered a volatile economic and political environment

over the past few years, we believe that there are now

reasons for cautious optimism for the Company’s relative

performance to continue to prove robust.

“The Board is confident that the

Company is well-positioned to

continue to deliver relative total

return outperformance over the

medium and long term. This,

combined with the return to

growing the dividend ahead of

inflation should enable the

Company’s shares to trade closer

to NAV.”

Inflationary pressures have eased substantially, paving the

way for the Bank of England to potentially cut interest

rates at some point in 2024. The global economy, while far

from booming, is continuing to prove relatively robust,

despite substantial tightening in monetary policy and very

subdued Chinese output. Sustainability is coming back

onto investors’ radars as environmental, social and

governance increasingly impact investment cases.

Meanwhile, the market valuations of UK and European

equities are extremely attractive on an absolute and

relative basis. This all potentially points to an environment

that can both support earnings delivery and an expansion

in equity multiples which could drive attractive total

returns to investors. While declining interest rates may also

help to narrow the discount at which your Company’s

shares trade.

We also believe that the Investment Manager’s focus on

sustainable companies means that the income growth of

the Company should be driven more by structural rather

than cyclical growth and that gives the Investment

Manager a higher degree of confidence on the likely path

of income generation. This should help to underpin

earnings delivery even in an environment where

economic growth remains modest, while the balance of

the portfolio means it is well set to navigate volatile

markets and demonstrate resilience in a range of

different market environments.

There are a number of reasons to be watchful. Elections at

home and abroad will generate plenty of speculation and

debate and, while inflationary pressures have eased, they

are still at elevated levels compared to central bank

targets. Likewise, geopolitical tensions continue to persist

across the Middle East, Russia continues with its invasion of

Ukraine and China’s relationship with Taiwan remains

tense. As a result, we think it is important to maintain a

relatively well-balanced portfolio and the

Investment Manager’s focus on investing in companies

with pricing power, strong balance sheets and with

greater exposure to structural, rather than cyclical,

growth should offer greater resilience in both capital and

income generation. The Company’s track record over the

past five years with this strategy remains highly

creditable.

The Board is confident that the Company is well-

positioned to continue to deliver relative total return

outperformance over the medium and long term. This,

combined with the return to growing the dividend ahead

of inflation, should enable the Company’s shares to trade

closer to NAV.

David Barron

Chairman

3 April 2024

12 Dunedin Income Growth Investment Trust PLC

Business

The Company is an investment trust with a premium listing

on the London Stock Exchange.

Investment Objective

The Company’s objective is to achieve growth of income

and capital from a portfolio invested mainly in companies

listed or quoted in the United Kingdom that meet the

Company’s sustainable and responsible investing criteria

as set by the Board.

Investment Policy

In pursuit of its objective, the Company's investment policy

is to invest in high quality companies with strong income

potential and providing an above-average portfolio yield.

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.

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.

Delivering the Investment Objective

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.

Investment Process

The Investment Process adopted by the Investment

Manager is contained on pages 26 to 33.

Benchmark

The Company’s benchmark is the FTSE All-Share Index

(total return). Performance is measured on a net asset

value total return basis over the long-term.

Promoting the Success of the Company

The Board’s statement on pages 19 to 21 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.

Overview of Strate

Dunedin Income Growth Investment Trust PLC 13

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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

and comparable investment trusts

The Board measures the Company’s NAV total return performance against the total

return of the benchmark index – the FTSE All-Share Index. The figures for this year

and for the past three and five years, and a graph showing performance against the

benchmark index over the past five years are shown on page 22. The Board also

monitors performance relative to a peer group of investment trusts which have

similar objectives, policies and yield characteristics.

Revenue return per Ordinary share The Board monitors the Company’s net revenue return. The revenue returns per

Ordinary share for each of the past 10 years are set out on page 24.

Dividend per Ordinary share The Board monitors the Company’s annual dividends per Ordinary share. The

dividends per share for each of the past 10 years are set out on page 24.

Share price performance The Board monitors the performance of the Company’s share price on a total return

basis. The returns for this year and for the past three and five years, and a graph

showing the share price total return performance against the benchmark index

over the past five years are shown on page 22.

Premium/discount to NAV The premium/discount of the share price relative to the NAV per share is monitored

by the Board. The discount at the year end and at the end of the previous year are

disclosed on page 6.

Ongoing charges The Board monitors the Company’s operating costs carefully. Ongoing charges for

the year and the previous year are disclosed on page 6.

14 Dunedin Income Growth Investment Trust PLC

Principal Risks and Uncertainties

The Board carries out a regular review of the risk environment in which the Company operates, 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 those principal risks and uncertainties, the Board considers that

the development of Artificial Intelligence (“AI”) presents potential risks 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.

There are a number of other risks which, if realised, could have a material adverse effect on the Company and its

financial condition, performance and prospects. These include a number of existing geo-political risks. The Board is also

conscious of the impact of inflation and higher interest rates on financial markets.

The principal risks associated with an investment in the Company’s shares are published monthly in the Company’s

factsheet and they can be found in the pre-investment disclosure document (“PIDD”) published by the Manager, both of

which are available on the Company’s website.

Risk 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.

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 the opportunity for 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 any widening of the discount.

Investment strategies - the Company adopts

inappropriate investment strategies in pursuit

of its objectives which could result in investors

avoiding the Company’s shares, leading to

a widening of the discount and poor

investment performance.

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.

Continued

Overview of Strate

Dunedin Income Growth Investment Trust PLC 15

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Risk Mitigating Action

Investment performance - the appointment or

continuing appointment of an investment

manager with inadequate resources, skills or

expertise or which makes poor investment

decisions. This could result in poor investment

performance, a loss of value for shareholders

and a widening discount.

Monitoring of performance. The Board meets the Investment Manager on a regular

basis and keeps under close review (inter alia) its resources and adherence to

investment processes. The Board also keep under review the adequacy of risk

controls and investment performance.

Management Engagement Committee. A detailed formal appraisal of the Manager is

carried out annually by the Management Engagement Committee.

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 covering both the current and subsequent financial years

at Board meetings. Dividend income received is compared to forecasts and

variances analysed.

Use of reserves. The Company has built up revenue reserves which are available to

smooth dividend distributions to shareholders should there be a shortfall in revenue

returns. The Company also has the ability to fund dividend distributions from

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.

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.

16 Dunedin Income Growth Investment Trust PLC

Risk Mitigating Action

Regulatory - changes to, or failure to comply

with, relevant regulations (including the

Companies Act, The Financial Services and

Markets Act, The Alternative Investment Fund

Managers Directive, accounting standards,

investment trust regulations, the Packaged

Retail and Insurance-based Investment

Product Regulations, the Listing Rules,

Disclosure Guidance and Transparency Rules

and Prospectus Rules) 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 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 are encouraged to attend relevant training courses.

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.

ESG Risks - 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 above, the

Board is also aware of the relevant ESG regulations impacting the Company.

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.

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.

Geo-political risk is considered to have increased during the year as a result of heightened global tensions. The trend

of other principal risks has not changed during the year.

Overview of Strate

Continued

Dunedin Income Growth Investment Trust PLC 17

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 abrdn 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 make-up of that 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 Key

Literature section of the Company's website.

Environmental, 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.

Environmental, Social and Governance

(“ESG”) Matters

The Investment Manager’s Approach to ESG matters is

included within the Investment Process on pages 26 to 33.

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.

abrdn plc is a tier 1 signatory of 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.

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 15.4.29(R), the Company, as a closed

ended investment company, is exempt from complying

with the Task Force on Climate-related Financial

Disclosures.

The carbon intensity of the portfolio is shown on page 29.

18 Dunedin Income Growth Investment Trust PLC

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

14 to 16 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.

· Share buy backs carried out in the past have not

resulted in significant reductions to the capital of the

Company.

· Although the Company’s stated investment policy

contains a maximum gearing limit of 30% of the NAV 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 refinance its £30 million

multi-currency credit facility when it matures in July

2024 (see Going Concern on page 58).

· 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 11

whilst the Investment Manager’s views on the outlook for

the portfolio are included on page 36.

On behalf of the Board

David Barron

Chairman

3 April 2024

Overview of Strate

Continued

Dunedin Income Growth Investment Trust PLC 19

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 five

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 regular 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.

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

Promotin

the Success of the Company

20 Dunedin Income Growth Investment Trust PLC

the Company. In addition to the Annual General Meeting, this year the Company will again hold an

interactive 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 34 to 36 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 page 57.

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 26 to 33.

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 Nova

Scotia, 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 and

the Investment Manager embeds Environmental, Social and Governance (“ESG”) considerations into

the research and analysis as part of the investment decision-making process. Further details are

provided within the Investment Process on pages 26 to 33.

Promotin

the Success of the Company

Continued

Dunedin Income Growth Investment Trust PLC 21

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 2024. Each of these decisions was

made after taking into account the short and long term

benefits for stakeholders.

Investment Objective and Portfolio

The Investment Manager’s Review details the key

investment decisions taken during the year. 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 compliance with the Company’s

sustainable and responsible investing criteria.

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

Following the payment of the final dividend for the year, of

4.15p per Ordinary share, total dividends for the year will

amount to 13.75p per Ordinary share. This represents an

increase of 5.0% compared to the previous year. This will

be the 40th year out of the past 44 that the Company has

grown its dividend, with the distribution maintained in the

other four years, and is in accordance with its policy to

grow total annual dividends in real terms over the medium

term.

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.

Renewal of Bank Loan

During the year, the Board announced the renewal of the

Company’s £30 million multi-currency revolving credit

facility with Bank of Nova Scotia London Branch. The

facility replaced the expiring £30 million multi-currency

revolving credit facility and will expire on 11 July 2024.

Under the terms of the facility, the Company has the

option to increase the level of the commitment from £30

million to £40 million at any time, subject to the lender’s

credit approval.

The Board continues to believe that borrowings, in the

form of the Company’s Loan Notes 2045 and the multi-

currency revolving credit facility, are beneficial to long

term net asset value returns and is one of the benefits of

the closed ended investment trust structure.

Share Buy Backs

During the year, the Company bought back 2,091,781

Ordinary shares to be held in treasury, providing a small

accretion 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

and the Chairman met directly with representatives of

some of the Company’s largest shareholders. The AGM

was held in Dundee in 2023 and will be held in London this

year.

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 10.00am on Tuesday 7 May 2024. 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. The online presentation is being held ahead of the

Annual General Meeting to allow shareholders to submit

their proxy votes prior to the meeting. Details of how to

Statement on page 10.

The Board considers that it is very important to maintain

an ongoing dialogue with shareholders to properly

understand their views and to communicate the actions of

the Board.

On behalf of the Board

David Barron

Chairman

3 April 2024

22 Dunedin Income Growth Investment Trust PLC

Performance (total return)

1 year 3 year 5 year

% return % return % return

Total return (Capital return plus net dividends reinvested)

Net asset value

+6.7% +18.0% +43.8%

Share price

(1.6)% +9.8% +41.4%

FTSE All-Share Index +1.9% +27.5% +30.4%

Capital return

Net asset value

+2.0% +3.8% +17.1%

Share price (6.1)% (3.8)% +14.1%

FTSE All-Share Index (1.9)% +14.6% +9.1%

Cum-income NAV with debt at fair value.

Considered to be an Alternative Performance Measure (see page 114)

Source: abrdn, Factset & Morningstar

Comparison of NAV and Share Price Total Return Performance to

FTSE All-Share Index (figures rebased to 100)

Five years to 31 January 2024

100

105

110

115

120

125

130

135

140

145

150

31/01/19 31/01/20 31/01/21 31/01/22 31/01/23 31/01/24

Source: abrdn & Morningstar

Share price total

return

NAV total return with

debt at fair value

FTSE All-Share Index

total return

Performance

Dunedin Income Growth Investment Trust PLC 23

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Comparison of NAV Total Return Performance to FTSE All-Share Index

Total Return for 5 years

22. 2%

-0.3%

8. 1%

2. 4%

6. 7%

43. 8%

10.7%

-7.5%

18. 9%

5. 2%

1. 9%

30. 4%

Year to

31/01/20

Year to

31/01/21

Year to

31/01/22

Year to

31/01/23

Year to

31/01/24

5 year total return

(cumulative)

Source: abrdn & Morningstar

NAV total

return with

debt at fai r

value

FTSE Al l-

Share Index

total return

Analysis of Total Return Performance for the year ended 31 January 2024

Gross assets total return 5.8

Total NAV return per share

6.7

Total return on FTSE All-Share Index 1.9

Relative performance 4.8

With debt at fair value.

Analysis of Performance for the year Relative to the FTSE All-Share Index

3.8

1.0

1.5

-0.7

-0.1

0.3

4.8

Listed equities

- Stock selection^

- Sector allocation^

Borrowings & cash

Fees and expenses

Tax

Technical differences

Total

^ Further analysis of performance attributable to listed equities

- Stock selection^

- Sector allocation^

24 Dunedin Income Growth Investment Trust PLC

Ten Year Financial Record

Year ended 31 January 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Total revenue (£’000) 20,994 20,359 21,963 22,317 22,263 20,518 18,346 21,518 21,950 22,949

Per share (p)

Revenue return 11.90 12.11 12.55 12.64 12.68 12.08 10.90 12.87 13.02 13.54

Dividends paid/proposed 11.25 11.40 11.70 12.10 12.45 12.70 12.80 12.90 13.10 13.75

Revenue reserve

8.89 9.63 10.51 11.16 11.54 10.94 9.07 9.05 8.97 8.99

Net asset value

279.66 237.48 270.34 290.57 266.83 312.22 297.64 309.03 302.80 308.98

Total return

27.76 (28.94) 43.83 30.83 (11.95) 58.57 (1.81) 23.78 1.92 15.45

Shareholders’ funds (£’000) 428,702 368,041 415,810 442,384 401,731 469,806 448,293 464,579 448,605 445,815

After payment of third interim and final dividends (see note 16 on page 93 for further details).

With debt at fair value.

Per Statement of Comprehensive Income.

Comparison of Dividend Growth to Inflation

Five years ended 31 January 2024

2.0%

0.8%

1.6%

5.0%

10.4%

1.8%

0.7%

5.4%

10.0%

4.0%

23.7%

Year to

31/01/20

Year to

31/01/21

Year to

31/01/22

Year to

31/01/23

Year to

31/01/24

5 years to

31/01/24

Source: abrdn, ONS & Factset

DIGIT

dividend

growth

Consumer

Price Index

Performance

Continued

Dunedin Income Growth Investment Trust PLC 25

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Dividends per Share – Pence

Year to 31 January

11.25

11.40

11.70

12.10

12.45

12.70

12.80

12.90

13.10

13.75

2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Dividends per Share

Dividend per share Rate Ex dividend date Record date Payment date

Final dividend 2024 4.15p 2 May 2024 3 May 2024 31 May 2024

Third interim dividend 2024 3.20p 1 February 2024 2 February 2024 29 February 2024

Second interim dividend 2024 3.20p 2 November 2023 3 November 2023 24 November 2023

First interim dividend 2024 3.20p 3 August 2023 4 August 2023 25 August 2023

Total dividend 2023 13.75p

Dividend per share Rate Ex dividend date Record date Payment date

Final dividend 2023 4.10p 4 May 2023 5 May 2023 30 May 2023

Third interim dividend 2023 3.00p 2 February 2023 3 February 2023 24 February 2023

Second interim dividend 2023 3.00p 3 November 2022 4 November 2022 25 November 2022

First interim dividend 2023 3.00p 4 August 2022 5 August 2022 26 August 2022

Total dividend 2023 13.10p

26 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.

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 Returns

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 27

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

A Highly Selective Strategy

Emphasis on sustainability, quality, total return and income

The Investment Manager’s Approach to ESG

Introduction

The Investment Manager believes that effective analysis

of, and engagement with, the ESG risks and opportunities

that companies face will enhance investors’ risk

adjusted returns. While sustainable and responsible

investing principles were formally incorporated into the

Company’s investment objective in 2021, a focus on ESG

factors has been a long standing part of the Investment

Manager’s process, making the transition a relatively

straightforward one.

Those sustainable and responsible investment principles

are integrated into the investment process through a

combination of exclusions, positive allocation and ongoing

corporate engagement. To deliver this, the Investment

Manager utilises binary screens, qualitative analytical

assessment, proprietary quantitative tools and ongoing

corporate access and voting policy.

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.

28 Dunedin Income Growth Investment Trust PLC

Exclusions

The Investment Manager uses three different forms of exclusions. These are complementary in form with binary

exclusions providing assurance to shareholders that companies with certain types of business activities will not be

invested in. Additionally, the Investment Manager utilises both the judgement of its investment analysts and its own

proprietary quantitative tools to exclude companies with poorly managed ESG risks.

1. Binary exclusions – these screens focus on areas where the Investment Manager sees long-term risks arising from ESG

factors to companies’ business models and, as a result, it chooses not to invest. These will be subject to ongoing review to

ensure that they are consistent with industry best practice.

2. ESG House Score – this is a proprietary quantitative tool that scores the companies in the investment universe on

operational and governance risks. The Investment Manager excludes the bottom 10% of companies from consideration

for the portfolio.

3. ESG Quality Score – every company under research coverage is judged by the analysts on the quality of its

management of ESG risks. Companies deemed to be below average are excluded from consideration for the portfolio.

The effect of the above screening process is that the number of investible companies available to the Investment

Manager is reduced by approximately 20%.

Investment Process

Continued

Dunedin Income Growth Investment Trust PLC 29

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Carbon Intensity

The Company also commits to having a carbon intensity (Scope 1 & 2) of less than 80% of the FTSE All-Share Index,

which constrains investment in high carbon emitting companies.

Weighted Average Carbon Intensity (WACI)

In tonnes of CO2e / million USD revenue

Scope 1 & 2 Scope 1 Scope 2 Scope 3

Upstream

Scope 3

Downstream

Portfolio 48.25 36.11 12.14 164.68 823.30

Benchmark 86.40 62.47 23.94 174.95 1,325.00

Relative carbon intensity % 55.84 57.81 50.71 94.13 62.14

Total Emissions

(In tonnes of CO2e)

Scope 1 & 2 Scope 1 Scope 2 Scope 3

Upstream

Scope 3

Downstream

Portfolio 20,217 16,426 3,792 68,698 349,311

Benchmark 58,336 46,318 12,017 94,928 689,969

Relative carbon intensity % 34.66 35.46 31.55 72.37 50.63

Source: Trucost

The Company’s portfolio currently has a Carbon Intensity on Scope 1 and 2 emissions of 56% of the benchmark.

On a total emissions basis, the portfolio sits at 35% of the benchmark on Scope 1 and 2 emissions.

30 Dunedin Income Growth Investment Trust PLC

Positive Allocation

Companies that investment analysts score highly on the quality of their ESG risk management are designated as

sustainable leaders. Those sustainable leaders that have a high alignment of revenues or investment with the UN

sustainable development goals will additionally be designated as solutions providers. The majority of the Company’s

portfolio is invested into those two leadership categories and the Investment Manager will actively search for

opportunities where it believes these attributes to be undervalued.

Split of Sustainable Leaders, Solutions Providers and Improvers

Investment Process

Continued

Dunedin Income Growth Investment Trust PLC 31

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Engagement

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.

Improvers are typically companies whose ESG potential is

being overlooked by the market and the Investment

Manager supports these companies through active

engagement. Clearly defined 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, and these are

closely monitored from initiation through to completion.

The Investment Manager believes that effective

engagement presents a significant opportunity to add

shareholder value over time.

During the year ended 31 January 2024, the Investment

Manager held 109 separate meetings with portfolio

companies where ESG topics were raised. Eight of these

were dedicated priority engagement meetings,

addressing areas of material improvement. By topic,

Corporate Governance was the area most discussed, but

there was also significant focus on Climate and

Corporate Behaviour and, increasingly, on Social Issues.

% of Meetings where Topic Discussed

32 Dunedin Income Growth Investment Trust PLC

Engagement Case Studies

National Grid (Solutions)

The Investment Manager engaged with the Group Director of Land Planning and External Affairs to discuss

sustainability-related risks and opportunities relevant to the investment case. Their engagement with the company

primarily focussed on two areas. First, National Grid's approach to securing public consent among those communities

that are likely to be affected by the construction of new transmission infrastructure. This investment is required to meet

the electricity needs of the economy, however it brings with it community impacts. In particular, there is current public

opposition to a National Grid project in East Anglia. Second, National Grid's plans for its natural gas distribution assets in

New York, where policymakers have set ambitious legal goals to transition away from gas. National Grid expressed

support for compensating communities hosting infrastructure. Public opposition and negotiations have the potential to

lead to project delays and the Investment Manager will continue to engage with the company on how it is addressing

these challenges.

Taylor Wimpey (Improver)

The Investment Manager participated in a presentation on Taylor Wimpey’s research and development efforts to meet

the Future Homes Standards. The Future Home Standards come into effect from 2025 and are designed to increase

energy efficiency and reduce greenhouse gas emissions in new build homes compared to prior regulations. This

upcoming regulation presents a significant change in the regulatory environment and requires both innovation and

execution to meet the standards and scale up. The standards will further enhance the energy efficiency attributes of

new homes compared to existing housing stock and the Investment Manager expects execution will impact customer

demand. The Investment Manager discussed with the company the installation and operating costs associated with

meeting the regulations and the potential financial burden on the industry and customers.

Taylor Wimpey has built five trail plots in Sudbury, with a combination of technology and fabric solutions using its existing

supply chain and is in the process of monitoring customer costs and engagement. The Investment Manager was

encouraged by the cross-disciplined approach being taken by the company to address the standards and its strategic

focus. The Investment Manager welcomes the efforts being undertaken and believes this will create divergence in the

industry, with those with superior resources better placed to navigate the regulations. The Investment Manager will

continue to monitor this development and its implications for both the housebuilders and the supply chain.

Investment Process

Continued

Dunedin Income Growth Investment Trust PLC 33

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Proxy Voting

Voting policy forms an important part of the Investment Manager’s corporate engagement approach. Every proxy is

voted and, where needed, input sought from the investment and ESG analysts in conjunction with the expertise of the

central voting team. Where direct engagement has not proven effective, the Investment Manager is very prepared to

vote against companies.

Metric Value

Number of meetings held 40

Number of meetings with at least one vote against management 13

Percentage of meetings with at least one vote against management 32.5%

Total number of voteable proposals 704

Number of votes against management 31

Votes against management as a percentage of voteable proposals 4.4%

Number of votes against ISS Policy 37

Votes against ISS Policy as a percentage of voteable proposals 5.3%

Number of votes against policy 23

Votes against policy as a percentage of voteable proposals 3.3%

The Investment Manager voted against management recommendations in 32.5% of the general meetings held by

portfolio companies during the year, which it thinks is the most useful metric for measuring the level of its constructive

engagement. It is important to bear in mind that the Investment Manager typically begins from a position of support for

the select group of companies it invests in.

There is an extensive ongoing programme which allows the Investment Manager to actively engage with investee

companies throughout the year beyond the voting season.

34 Dunedin Income Growth Investment Trust PLC

Introduction

For the year ended 31 January 2024, the Company’s net

asset value total return of 6.7% compared favourably to a

total return of 1.9% from the benchmark, the FTSE All-

Share Index. This encouraging outcome occurred despite

various challenges in the UK market, such as geopolitical

risks, concerns over the financial stability of the banking

sector, fears of persistent inflation, and the delayed

impact of tight monetary policy. Economies proved more

resilient than anticipated coming into the year. Consumer

confidence has benefited from real wage growth and a

moderating cost of living, meanwhile the UK faced a mild

technical recession in the latter half of the year. More

disappointingly, in the context of strong portfolio

outperformance, the share price of the Company

declined over the year by 1.6% in total return terms and

the discount widened. The revenue return hit a new

record level of 13.54p a share.

The global macro-economic outlook remains mixed, with

a high degree of uncertainty. While fears of a US recession

have lessened, the Chinese recovery has disappointed

and global growth is expected to slow. Recognising this

backdrop, we believe the Company is well-positioned to

navigate potential challenges in the market. Our focus on

higher-quality companies and investments that can

deliver both income and capital growth, while adhering to

the Company’s sustainable and responsible investing

approach, should help us manage any difficult market

conditions ahead.

“We are pleased with the Company’s

income progression in the year. The

revenue return hit a new record level

of 13.54p a share.”

The portfolio remains highly differentiated compared to

both peers and its benchmark. It remains the only UK

Equity Income investment trust with a formal sustainability

approach. The active share of the portfolio is 76%, while

the number of holdings is a focussed group of 35. We see

attractive opportunities in innovative mid-sized UK

companies and have 25% of the Company’s assets in the

FTSE 250 Index and 50% in UK large companies. We utilise

the Company’s flexibility to invest overseas with an

allocation of up to 25% to high quality overseas

companies, offering diversification and unique exposures.

The Company offers an attractive 5.0% dividend yield

(based on the year end share price of 276p),

approximately 20% ahead of the FTSE All-Share Index.

The free cash flow performance of companies held in the

portfolio has been strong, with many growing their

dividends during the year. As a result, income generation

came in ahead of our initial expectations.

Performance

We are pleased with the Company’s income progression

in the year. The revenue earnings per share of 13.54p

exceeded our expectations and represents an increase of

4.0% over the previous year. Special dividends were paid

by Volvo and Softcat in the year. A number of holdings

delivered strong dividend growth, including Games

Workshop, Morgan Sindall, Novo-Nordisk, Relx, and Sirius

Real Estate. We continued writing options based on our

fundamental analysis of holdings in the portfolio and this

has been a benefit to the Company by diversifying and

increasing the level of income generated.

“The Company’s sustainable

investment approach targets

investment in high-quality,

sustainable Leaders and Improvers

across the market.”

The UK market concluded the year with a modest

increase, despite experiencing some volatility throughout

the year. The Company benefited from positive sector

allocation given its underweight exposure to the basic

materials sector, which underperformed due to lower

commodity prices associated with weaker Chinese

activity. The portfolio's overweight position in the

technology sector, an area with numerous quality and

growth characteristics that we focus on, proved beneficial

to performance.

The Company’s sustainable investment approach targets

investment in high-quality, sustainable Leaders and

Improvers across the market and we continue to engage

with investee companies. Filters are applied to the

universe to reduce exposure to sectors and companies

facing the highest environmental and social risks. During

the year, the investable universe provided a tailwind to

relative performance, primarily due to its lower exposure

to basic materials. While the primary focus of the

Company is on selecting high-quality, sustainable

companies, we continue to monitor factor risks presented

by this approach and remain confident that it aligns with

positive outcomes for shareholders.

Investment Mana

er’s Review

Dunedin Income Growth Investment Trust PLC 35

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Encouragingly, fundamental analysis and stock picking

contributed positively, with the market rewarding

companies that demonstrated attractive growth and

improving fundamentals. In the healthcare sector, Novo-

Nordisk announced a series of trial data indicating that the

anti-obesity drug Wegovy not only leads to weight loss in

patients but also reduces the risk of cardiovascular events.

The drug targets a significant unmet need, obesity, with

attractive long-term supply/demand dynamics and the

shares responded very favourably. The accounting

software firm Sage exceeded expectations with

accelerating revenue growth, driven by its US cloud

accounting software product, Sage Intacct. Upon

purchasing shares in late 2022, we anticipated that the

company was at a growth and margin inflection point,

which has subsequently materialised. Sage's transition to

subscription contracts and product innovation form a

strong foundation for sustained growth in the medium

term. Relx is performing better than anticipated due to its

investment in data analytics and decision-making tools,

which enable customers to extract more value from its

platform. With the valuation at a discount to US peers,

mainly due to its UK listing, we continue to believe it is a

compelling opportunity.

“We are pleased with the Company’s

income progression in the year. A

number of holdings delivered strong

dividend growth.”

As addressed in last year's Annual Report, UK domestic

and mid-sized companies’ underperformance in 2022

resulted in heavily discounted valuations, but we

anticipated that long-term alpha generation from UK mid-

sized companies would return. This trend of

underperformance continued through to October 2023

due to concerns about sticky inflation, recession risk and

market liquidity headwinds, before sharply reversing in the

last quarter of the financial year. The holding in

Intermediate Capital rebounded strongly, while UK

construction company Morgan Sindall and large

housebuilder Taylor Wimpey saw share price recovery as

fears of a deep UK recession and house price deflation

moderated. Taylor Wimpey's unique dividend policy,

based on net asset value rather than earnings, ensured a

visible and healthy shareholder distribution.

Turning to the detractors to performance. The holding in

the Asian insurer Prudential underperformed on concerns

about the pace of recovery in China. We view this as a

temporary setback and believe that Prudential's long-

term structural growth potential, offered by its market

exposures, is not reflected in its discounted valuation. The

specialist UK lender Close Brothers faced news that the UK

financial regulator, the FCA, has opened an enquiry into

legacy motor finance commission structures in the

industry and whether customers are owed financial

redress. The quantum and timing of the amount to be paid

to customers is uncertain and patience will be required,

with a regulatory announcement anticipated in

September this year. Meanwhile the company cut its

dividend in order to conserve capital which was a

disappointing development.

Portfolio Activity

We introduced several new holdings this year. We initiated

a position in Telecom Plus, a retailer of utility, telecom and

insurance products, which operates in the UK under the

Utility Warehouse brand. The company has a capital-light

business model, strong balance sheet and attractive cost

advantage which means it is well placed to deliver long-

term customer growth, earnings progression and

shareholder distributions. We also introduced the UK’s

largest IT value added reseller Softcat to the portfolio. We

believe Softcat has significant potential for long-term

growth, coupled with a strong balance sheet and the

optionality for enhanced shareholder cash returns.

Alongside these additions, we purchased a new position in

German automotive manufacturer Mercedes-Benz which

is repositioning its strategy towards the luxury end of the

market and is well positioned from a technology

perspective to meet the challenges of the electric vehicle

transition and the gradual move to autonomous driving.

Finally, we introduced National Grid, which has been

owned by the Company in the past. The company aims to

deliver both asset value and earnings growth over the

medium term, driven by the investment required to

decarbonise the UK and US energy networks and is a

critical enabler of the energy transition. We part funded

this purchase with a reduction in the holding in SSE, which

benefits from similar drivers. National Grid has a superior

shareholder distribution return and so is helpful from an

income perspective.

36 Dunedin Income Growth Investment Trust PLC

To fund these new ideas we exited small holdings in lower

conviction names Direct Line Insurance, Ashmore and

Ubisoft. We also took the opportunity to exit Dechra

Pharmaceuticals after it received an all-cash offer from

private equity company EQT and the private equities

investment department of Abu Dhabi Investment

Authority. Finally, we exited Coca-Cola Hellenic Bottling

Company following strong share price recovery from the

negative reaction to the Russian invasion of Ukraine, and

resilient earnings.

Outlook

Signs are emerging that the actions taken by central

banks to manage the high levels of inflation in the UK and

Europe are having their desired effect. While inflation is

decelerating, geopolitical risk and wage growth remain

elevated, together making the path to monetary easing a

challenge to predict. Global growth is expected to slow

and the UK and Eurozone are already in recession-like

conditions. The US economy has remained more resilient

than many feared, however household savings and

corporate balance sheets are finite. Chinese growth has

stabilised amid easing but household confidence and the

real estate sector weigh on the economy. Despite this

backdrop, we remain positive on the potential long-term

returns available from the portfolio. Fundamental

company analysis supports our conviction in the high

quality businesses in the portfolio, and we see attractive

opportunities that are underappreciated by the market.

“We remain positive on the potential

long-term returns available from the

portfolio. Fundamental company

analysis supports our conviction in the

high quality businesses in the portfolio,

and we see attractive opportunities

that are underappreciated by

the market.”

There are reasons to be optimistic. The Company should

benefit from the focus on higher quality companies with

less reliance on the economic cycle, given our attention to

diversification, balance sheet strength, and resilience of

income. The UK equity market remains highly attractive in

terms of valuation, both on an absolute basis and relative

to global markets. This view is supported by the increased

frequency of mergers and acquisitions across the market

which, in our view, will act as a catalyst to address

the mispricing.

Overall, we will continue to maintain a balanced approach

to the positioning of the portfolio, giving it the potential to

perform in a range of market environments. Our primary

attention is on protecting capital, but we will continue to

look to participate in opportunities where share prices in

good companies with attractive long-term prospects

have been oversold. Simultaneously, we will concentrate

on those UK and overseas companies committed to

creating a more sustainable future.

Ben Ritchie and Rebecca Maclean,

abrdn Investments Limited

3 April 2024

Investment Mana

er’s Review

Continued

Dunedin Income Growth Investment Trust PLC 37

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

abrdn Investments Limited

The Company’s Investment Manager is abrdn

Investments Limited which is a wholly-owned subsidiary of

abrdn plc. The abrdn Group’s assets under management

and administration were £494.9 billion as at 31 December

2023, managed for a range of clients including 16 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

abrdn. He originally joined abrdn in 2002 as a graduate

trainee and has been managing of the Company since

2012. 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 certified

CFA Charterholder.

Rebecca Maclean

Investment Director, UK Equities

Rebecca Maclean is an Investment Director in the UK

Equities team at abrdn. She has worked in the responsible

investment industry since 2010 and joined abrdn 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

38 Dunedin Income Growth Investment Trust PLC

Portfolio

“Fundamental analysis and stock

picking contributed positively to

performance, with the market

rewarding companies that

demonstrated attractive growth and

improving fundamentals.”

6.8% of the Company’s total assets are invested in

the Technology sector.

Dunedin Income Growth Investment Trust PLC 39

40 Dunedin Income Growth Investment Trust PLC

As at 31 January 2024

AstraZeneca (Solutions)

Unilever (Leader)

AstraZeneca is a pharmaceutical

company that focuses on the research,

development and manufacture of

drugs in a range of therapeutic areas.

Unilever is a global consumer goods

company, with particularly strong

market positions in emerging markets

and operating in a number of product

areas including Beauty, Personal Care,

Home Care and Nutrition.

TotalEnergies (Improver)

Relx (Leader)

TotalEnergies is an energy company

producing and marketing fuels, natural

gas and electricity globally.

Relx is a global provider of information

and analytics for professionals and

businesses across a number of

industries including scientific, technical,

medical and law.

London Stock Exchange (Improver)

Diageo (Leader)

London Stock Exchange is a leading

financial information company that

also owns prominent pieces of market

infrastructure.

Diageo is a global leader in spirits and

liquers with a portfolio of world-

renowned brands.

National Grid (Solutions)

Intermediate Capital (Improver)

National Grid owns gas and electricity

transmission and distribution assets in

the UK and United States.

Intermediate Capital is a private

equity investment firm focused on

providing capital to help companies

grow through private and public

markets and provides a number of

strategies and funds aimed at

institutional investors.

Chesnara (Improver)

Taylor Wimpey (Improver)

Chesnara is an owner and manager of

primarily closed books of life assurance

assets in the UK, Sweden and Holland.

Taylor Wimpey is one of the

largest home construction companies

in the United Kingdom.

Ten Lar

est Investments

Dunedin Income Growth Investment Trust PLC 41

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

Valuation Total Valuation

2024 assets 2023

Company Sector £’000 % £’000

AstraZeneca Pharmaceuticals and Biotechnology 32,517 6.7 38,221

Unilever Personal Care, Drug and Grocery Stores 28,205 5.8 35,175

TotalEnergies Oil, Gas and Coal 26,125 5.3 28,736

Relx Media 23,846 4.9 24,794

London Stock Exchange Finance and Credit Services 23,696 4.8 13,697

Diageo Beverages 22,711 4.6 25,344

National Grid Gas Water and Multi-utilities 17,956 3.7 –

Intermediate Capital Investment Banking and Brokerage Services 16,018 3.3 12,451

Chesnara Life Insurance 15,510 3.2 16,934

Taylor Wimpey Household Goods and Home Construction 15,075 3.1 11,926

Ten largest investments 221,659 45.4

SSE Electricity 13,876 2.8 20,814

ASML Technology Hardware and Equipment 13,067 2.7 10,202

Prudential Life Insurance 13,015 2.7 17,980

Sage Software and Computer Services 12,769 2.6 10,059

M&G Investment Banking and Brokerage Services 12,402 2.5 9,072

Games Workshop Leisure Goods 12,196 2.5 12,772

Volvo Industrial Transportation 11,466 2.3 14,667

Sirius Real Estate Real Estate Investment Trusts 11,433 2.3 4,112

Morgan Sindall Construction and Materials 11,166 2.3 8,085

Nordea Bank Banks 11,012 2.3 20,309

Twenty largest investments 344,061 70.4

Weir Group Industrial Engineering 10,471 2.1 11,653

Assura Real Estate Investment Trusts 10,061 2.1 13,327

Hiscox Non-life Insurance 10,043 2.1 10,869

Edenred Industrial Support Services 10,040 2.1 9,319

Mercedes-Benz Automobiles & Parts 9,893 2.0 –

Oxford Instruments Electronic and Electrical Equipment 9,228 1.9 80

Croda Chemicals 9,179 1.9 9,297

Novo-Nordisk Pharmaceuticals and Biotechnology 9,009 1.8 9,909

Telecom Plus Telecommunication Service Providers 8,970 1.8 –

Pets At Home Retailers 8,951 1.8 11,329

Thirty largest investments 439,906 90.0

Portfolio

42 Dunedin Income Growth Investment Trust PLC

Valuation Total Valuation

2024 assets 2023

Company Sector £’000 % £’000

Marshalls Construction and Materials 8,914 1.8 9,109

Softcat Software and Computer Services 7,269 1.5 –

Genus Pharmaceuticals and Biotechnology 6,865 1.4 6,020

Close Brothers Banks 6,170 1.3 11,001

Moonpig Retailers 4,963 1.0 3,551

Total investments 474,087 97.0

Net current assets

14,780 3.0

Total assets less current liabilities

488,867 100.0

Excluding bank loan of £13,307,000

Portfolio

Continued

Dunedin Income Growth Investment Trust PLC 43

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

0% 5% 10% 15% 20% 25% 30%

Financials

Consumer Discretionary

Industrials

Consumer Staples

Health Care

Technology

Utilities

Energy

Real Estate

Basic Materials

Telecommunications

2024

2023

Portfolio Sector Breakdown

44 Dunedin Income Growth Investment Trust PLC

As at 31 Januar

2024

FTSE All-Share Portfolio Portfolio

Index weighting weighting weighting

2024 2024 2023

% % %

Energy Oil, Gas and Coal 10.8 5.3 5.8

10.8 5.3 5.8

Basic Materials Industrial Metals And Mining 6.3 1.9 1.9

Precious Metals And Mining 0.2 – –

Chemicals 0.6 – –

7.1 1.9 1.9

Industrials Construction and Materials 0.4 4.1 3.5

Aerospace And Defence 3.3 – –

Electronic and Electrical Equipment 1.0 1.9 –

General Industrials 1.6 – –

Industrial Engineering 0.6 2.1 2.4

Industrial Support Services 3.6 2.1 1.9

Industrial Transportation 1.2 2.3 3.0

11.7 12.5 10.7

Consumer Discretionary Automobiles & Parts 0.1 2.0 –

Consumer Services 1.6 – –

Household Goods and Home Construction 1.3 3.1 2.5

Leisure Goods 0.1 2.5 3.0

Personal Goods 0.3 – –

Media 4.1 4.9 5.0

Retailers 1.5 2.9 3.0

Travel And Leisure 3.5 – –

12.5 15.4 13.6

Health Care Medical Equipment And Services 0.6 – –

Pharmaceuticals and Biotechnology 10.7 9.9 12.2

11.3 9.9 12.2

Consumer Staples Beverages 3.2 4.6 8.3

Food Producers 0.6 – –

Tobacco 3.0 – –

Personal Care, Drug and Grocery Stores 7.6 5.8 7.1

14.4 10.4

15.5

Sector Analysis

Dunedin Income Growth Investment Trust PLC 45

Strategic Report Governance Overview General Portfolio Corporate Information Financial Statements

As at 31 Januar

2024

FTSE All-Share Portfolio Portfolio

Index weighting weighting weighting

2024 2024 2023

% % %

Real Estate Real Estate Investment and Services

0.4 –

3.5

Real Estate Investment Trusts

2.3 4.4

–

2.7 4.4

3.5

Utilities Electricity

0.9 2.8

4.2

Gas Water and Multi-utilities

2.8 3.7

–

3.7 6.5

4.2

Financials Banks

9.0 3.6

6.3

Finance and Credit Services

1.9 4.8

2.8

Investment Banking and Brokerage Services

2.9 5.8

5.5

Closed End Investments

6.3 –

–

Life Insurance

2.4 5.8

7.1

Non-life Insurance

0.8 2.1

4.1

23.3 22.1

25.7

Technology Software and Computer Services

1.4 4.1

2.0

Technology Hardware and Equipment

– 2.7

2.1

1.4 6.8

4.1

Telecommunications Telecommunication Service Providers

1.1 1.8

–

1.1 1.8

–

Total investments 100.0 97.0

97.3

Net current assets before borrowings

3.0

2.7

Total assets less current liabilities

100.0

Excluding bank loan of £13,307,000

46 Dunedin Income Growth Investment Trust PLC

National Grid (Solutions)

National Grid is a new holding in the portfolio this year. The

company’s primary business is the transmission and

distribution of electricity and gas across the UK and the

northeastern United States. Governments recognise the

investment required to upgrade aging electricity networks

in order to address energy security and the clean energy

transition. In the UK, the Government plans to increase

offshore wind capacity to 50GW by 2030. This will require

substantial expansion of the electricity transmission grid in

order to get the electricity from where it is generated, in

the north, to where it is consumed, in the south. In the US,

growth is underpinned by a long-dated pipe replacement

programme and capital expenditure to support

the transition.

National Grid intends to invest £42 billion in its UK and US

networks over the next five years, with £32 billion

dedicated to decarbonising the grid. National Grid is well

positioned to deliver strong asset growth for several years,

which will support visible returns and earnings growth. The

company is also committed to maintaining its credit rating

and offers an attractive dividend.

ASML (Solutions)

ASML is a leading global supplier of photolithography

systems used in the manufacturing of semiconductor

chips. These chips are found in a wide range of electronic

devices, data centres, automotive segments and

communications infrastructure. Growth is supported by

the increasing adoption of advanced technologies, such

as Artificial Intelligence, and demand for more powerful

and energy-efficient semiconductors. ASML’s strong

commitment to research and development and

technological innovation has driven its market leadership

and allows the company to maintain strong pricing power

and durable customer relationships. While there is a

degree of cyclicality in ASML's end market, the Investment

Manager anticipates a more positive outlook through

2024. As a long-term investor, the Investment Manager

acknowledges the underlying structural drivers of the

business and the implications for future returns.

ASML’s innovation is a key enabler of the semiconductor

industry. The company is investing in leading-edge

technologies that improves energy use and adoption of

semiconductor chips in a range of industries.

Investment Case Studies

Dunedin Income Growth Investment Trust PLC 47

Mercedes-Benz (Improver)

Mercedes-Benz has one of the most widely recognised

and valuable global brands. 2023 was a year full of

challenges for the automotive sector, including consumer

discretionary pressures, heightened competition, and

deceleration in demand for electric vehicles (“EVs”).

Mercedes Benz’ strategy ‘to build desirable cars’ supports

its leading market position. The company targets the

premium end of the automotive market and, in doing so, it

has better pricing power, robust margins and earnings

resilience compared to peers. This strategy, and a focus

on cost optimisation, has allowed it to invest in innovative

technology and development to progress in areas of

automation and the future electric powertrain. With a

strong net cash balance sheet and healthy returns,

Mercedes-Benz offer an attractive dividend in addition to

an appealing buyback.

The company’s commitment to plug-in hybrids and all

electric cars is highlighted by its ambitious targets. The

company spends 24% of its capital expenditure and 32%

of its operating expenditure on low carbon transport

technologies and offers an electric alternative in every

segment in which it competes. The company is planning to

install 10,000 Mercedes-Benz high-power chargers in

core markets. In addition, the company has made

progress to decarbonise its own production and that of its

supply chain. While Mercedes-Benz depends on

consumer, regulatory and infrastructure developments

to support its transition, the Investment Manager

believes the company is well placed to lead in this

dynamic environment.

48 Dunedin Income Growth Investment Trust PLC

Governance

Dunedin Income Growth Investment Trust PLC 49

The Company is committed to high

standards of corporate governance and

applies the principles identified in the UK

Corporate Governance Code and the AIC

Code of Corporate Governance.

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.

50 Dunedin Income Growth Investment Trust PLC

David Barron

Independent Non-Executive Chairman

Experience:

David Barron was Head of Investment Trusts at JP Morgan

Asset Management until 2013, Chief Executive of Miton

Group plc until 2019, and then a non-executive director of

Premier Miton Group plc until July 2023. He was also a

director of The Association of Investment Companies until

2014. He is also a non-executive director of Baillie Gifford

European Growth Trust plc, BlackRock Sustainable

American Income Trust plc and Fidelity Japan Trust plc.

Length of service:

8 years, appointed a Director on 1 February 2016 and

Chairman on 23 May 2017

Last re-elected to the Board:

16 May 2023

Committee membership:

Management Engagement Committee and Nomination

and Remuneration Committee

Contribution:

The Nomination and Remuneration Committee has

reviewed the contribution of David Barron in light of his

proposed re-election at the AGM and has concluded that

he has continued to Chair the Company expertly,

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 has

continued to provide significant investment trust expertise

to the Board.

Gay Collins

Independent Non-Executive Director

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 is also a non-executive director of

the Association of Investment Companies.

Length of service:

2 years, appointed a Director on 1 July 2021

Last re-elected to the Board:

16 May 2023

Committee membership:

Audit Committee, Management Engagement

Committee and Nomination and Remuneration

Committee

Contribution:

The Nomination and 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 51

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Jasper Judd

Independent Non-Executive Director and Chairman of the

Audit Committee

Experience:

Jasper Judd worked for Brambles Limited, a listed

Australian multi-national, where he held a number of

senior executive roles including Global Head of Strategy.

He is also a non-executive director of JPMorgan Indian

Investment Trust plc, Brown Advisory US Smaller

Companies plc and Schroder Asian Total Return

Investment Company plc. He is a Chartered Accountant.

Length of service:

8 years, appointed a Director on 1 February 2016

Last re-elected to the Board:

16 May 2023

Committee membership:

Audit Committee (Chairman), Management Engagement

Committee and Nomination and Remuneration

Committee

Contribution:

The Nomination and Remuneration Committee has

reviewed the contribution of Jasper Judd in light of his

proposed re-election at the AGM and has concluded that

he has continued to chair the Audit Committee expertly

through the year and provide financial and business

insight to the Board and knowledge of the investment

trust sector.

Christine Montgomery

Independent Non-Executive Director and Chairman of 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:

4 years, appointed a Director on 1 February 2020

Last re-elected to the Board:

16 May 2023

Committee membership:

Audit Committee, Management Engagement Committee

(Chairman) and Nomination and Remuneration

Committee

Contribution:

The Nomination and 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.

52 Dunedin Income Growth Investment Trust PLC

Howard Williams

Senior Independent Non-Executive Director

and Chairman of the Nomination and

Remuneration Committee

Experience:

Howard Williams has over 35 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 Trust Limited.

Length of service:

6 years, appointed a Director on 1 April 2018 and Senior

Independent Director on 16 July 2020

Last re-elected to the Board:

16 May 2023

Committee membership:

Audit Committee, Management Engagement Committee

and Nomination and Remuneration Committee

(Chairman)

Contribution:

The Nomination and Remuneration Committee has

reviewed the contribution of Howard Williams in light of

his proposed re-election at the AGM and has concluded

that he continues to provide significant investment insight

to the Board and knowledge of the investment

management sector.

Board of Directors

Continued

Dunedin Income Growth Investment Trust PLC 53

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

The Directors present their report and the audited

financial statements for the year ended 31 January 2024.

Results and Dividends

The financial statements for the year ended 31 January

2024 are contained on pages 79 to 102. First, second and

third interim dividends, each of 3.20p per Ordinary share,

were paid on 25 August 2023, 24 November 2023 and 29

February 2024 respectively. The Directors recommend a

final dividend of 4.15p per Ordinary share, payable on 31

May 2024 to shareholders on the register on 3 May 2024.

The ex-dividend date is 2 May 2024. 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 for all financial years

commencing on or after 1 February 2012. The Directors

are of the opinion that the Company has conducted its

affairs for the year ended 31 January 2024 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

During the previous year, the Board 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,

would be donated to charity. Accordingly, the Company

made a donation of £19,000 (2023: £16,000) to the abrdn

Charitable Foundation, which directs funding to charities

around the world.

The abrdn Charitable Foundation is a registered charity.

Its board of directors includes independent representation

from the abrdn Group and provides oversight and

guidance for its charitable giving activities.

Capital Structure and Voting Rights

The issued Ordinary share capital at 31 January 2024

consisted of 146,172,889 Ordinary shares of 25p and

7,505,046 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 abrdn 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

54 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 2024.

Shareholder

Number of

shares held % held

Interactive Investor 37,572,556 25.7

Hargreaves Lansdown 17,857,977 12.2

EFG Harris Allday 6,942,544 4.7

A J Bell 6,328,721 4.3

W M Thomson 5,750,363 3.9

Charles Stanley 5,547,100 3.8

Rathbones 5,404,196 3.7

HSDL 5,044,283 3.4

Canaccord Genuity Wealth

Management

4,579,615 3.1

There have been no changes notified to the Company

between the year end and the date of approval of

this Report.

Directors

Throughout the year, the Board comprised five non-

executive Directors, each of whom is considered by the

Board to be independent of the Company and the

Manager. David Barron is the Chairman and Howard

Williams is the Senior Independent Director.

The Directors attended scheduled Board and Committee

meetings during the year ended 31 January 2024 as

follows (with their eligibility to attend the relevant

meetings in brackets):

Board

Meetings

Audit

Committee

Meetings

Management

Engagement

Committee

Meetings

Nomination

and

Remuneration

Committee

Meetings

David Barron 6 (6) - (-)

1 (1) 1 (1)

Gay Collins 6 (6) 2 (2) 1 (1) 1 (1)

Jasper Judd 6 (6) 2 (2) 1 (1) 1 (1)

Christine

Montgomery

6 (6) 2 (2) 1 (1) 1 (1)

Howard Williams 6 (6) 2 (2) 1 (1) 1 (1)

David Barron is not a member of the Audit Committee but attends by invitation. He

attended all Audit Committee meetings during the year.

The Board meets more frequently when business

needs require.

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,

Jasper Judd, Howard Williams, Christine Montgomery and

David Barron will retire at the Annual General Meeting and,

being eligible, offer themselves for re-election.

The Board believes that all the Directors seeking re-

election remain 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

50 to 52, 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. The

Board therefore recommends the re-election of each of

the Directors at the Annual General Meeting.

Directors’ Report

Continued

Dunedin Income Growth Investment Trust PLC 55

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 2024

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 3 60%

n/a

(note 3)

n/a

(note 3)

n/a

(note 3)

Women 2 40% (note 1)

Not specified/prefer not to say - -

Table for reporting on ethnic background as at 31 January 2024

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)

5 100%

n/a

(note 3)

n/a

(note 3)

n/a

(note 3)

Minority ethnic - - (note 2)

Not specified/prefer not to say - -

Notes:

1. Meets target that at least 40% of Directors are women as set out in LR 9.8.6R (9)(a)(i).

2. Does not meet target that at least one Director is from a minority ethnic background as set out in LR 9.8.6R (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 Company

considers that the roles of Chairman of the Board, Senior Independent Director and Chairs of the Audit Committee, Nomination and 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 9.8.6R (9)(a)(ii) .

As shown in the above table, the Company has not as yet met the target set out in LR 9.8.6R (9)(a)(iii) that at least one

Director is from a minority ethnic background. It is the Board’s intention that this target will be taken into account at the

time of the next appointment.

56 Dunedin Income Growth Investment Trust PLC

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 and 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 57

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 July 2018 (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 Code of Corporate Governance as

published in February 2019 (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 the Company. The

AIC Code is available on the AIC’s website: theaic.co.uk.

The Board considers that reporting against the principles

and provisions of the AIC Code, which has been

endorsed by the 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 40).

These provisions are not repeated in the AIC Code and the

Board therefore 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.

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 Committee

The Audit Committee’s Report is contained on pages

65 to 67.

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 abrdn 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.

The Board remains satisfied with the capability of the

abrdn 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 abrdn 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 and Remuneration Committee

The Nomination and Remuneration Committee consists of

all the Directors. The Committee is chaired by Howard

Williams 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 61 to 64.

58 Dunedin Income Growth Investment Trust PLC

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 intention is that the evaluation is externally facilitated

every three years, the next such review to be conducted

during the year ending 31 January 2025.

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.

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.

The Company has borrowings in the form of £30 million

3.99% Loan Notes that mature in December 2045, and a

£30 million multi-currency revolving credit facility with The

Bank of Nova Scotia, London Branch, which matures in

July 2024. The Board has reviewed indicative quotes for

the renewal of the multi-currency revolving credit facility

and expects to be able to renew it upon its maturity with a

similar facility.

Following this assessment, 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 70, and 75.

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.

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 abrdn 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’ Report

Continued

Dunedin Income Growth Investment Trust PLC 59

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 23 May 2024.

The Notice of the Meeting is included on pages 116

to 121. Resolutions including the following business

will be proposed:

Allotment of Shares

Resolution 11 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 £12,085,441 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 2025,

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 11 is necessary to retain flexibility,

although they do not at the present time have any

intention of exercising such authority.

Limited Disapplication of Pre-emption Provisions

Resolution 12 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 5% 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

£1,812,997 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 2025,

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 12 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.

60 Dunedin Income Growth Investment Trust PLC

Market Purchase of the Company’s own Ordinary Shares

Resolution 13 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 21.7 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 2025, 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.

Increase in Directors’ Fee Cap

The Company’s Articles of Association currently state that

the aggregate remuneration of the Directors may not

exceed £200,000 per annum. By way of ordinary

resolution 14, the Board seeks shareholder approval to

increase the aggregate amount to £250,000 per annum.

The higher limit is being sought so as to allow for increases

in Directors’ remuneration over a number of years and

also for a higher level of aggregate fees during years

when new Directors are appointed as part of the Board’s

secession planning.

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 48,080 Ordinary

shares, representing 0.03% 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

3 April 2024

Directors’ Report

Continued

Dunedin Income Growth Investment Trust PLC 61

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 71 to 78.

The Director’s Remuneration Policy and level of Directors’

remuneration are determined by the Nomination and

Remuneration Committee, which is chaired by Howard

Williams 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.

Directors’ Remuneration Report

62 Dunedin Income Growth Investment Trust PLC

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.

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 2026.

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 £200,000 per annum and may only be increased by

shareholder resolution.

As explained in the Report of the Directors on page 60, an

ordinary resolution will be proposed at the Annual General

Meeting to seek shareholder approval to increase the

aggregate limit to £250,000 per annum. The higher limit is

being sought so as to allow for increases in Directors’

remuneration over a number of years and also for a

higher level of aggregate fees during years when new

Directors are appointed as part of the Board’s secession

planning.

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 2023.

31 January

2024

31 January

2023

Chairman 42,000 40,000

Chairman of Audit Committee 33,000 31,500

Director 28,000 26,500

An additional fee of £2,000 per annum is payable to the

Senior Independent Director.

The Nomination and Remuneration Committee carried

out a review of the level of Directors’ fees during the year,

which included consideration of fees paid by comparable

investment trusts and the sector as a whole. Following this

review, the Committee concluded that, with effect from 1

February 2024, fees should be increased to £44,000 for the

Chairman, £35,500 for the Audit Committee Chairman

and £29,500 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 2024 (rebased to 100 at 31 January 2014). 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

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Share price total return

NAV total return with debt at market value

FTSE All-Share Index 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.

Directors’ Remuneration Report

Continued

Dunedin Income Growth Investment Trust PLC 63

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Fees Payable (Audited Information)

The Directors who served during the year received the

following emoluments in the form of fees.

Director 2024

2023

David Barron 42,000 40,000

Gay Collins 28,000 26,500

Jasper Judd 33,000 31,500

Christine Montgomery 28,000 26,500

Howard Williams 30,000 28,500

Total 161,000 153,000

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 four years.

Year ended 31 January:

2024 2023 2022 2021

Director % % % %

David Barron 5.0 5.3 2.7 5.7

Gay Collins

5.7 n/a n/a n/a

Jasper Judd 4.8 6.8 3.5 5.6

Christine

Montgomery

5.7 7.1 3.1 n/a

Howard Williams

5.3 6.5 8.1 7.6

Appointed on 1 July 2021

Appointed on 1 February 2020

Appointed Senior Independent Director on 16 July 2020

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 2024 and 31 January 2023 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

2024

31 January

2023

Ordinary

David Barron 21,977 21,977

Gay Collins 3,032 3,032

Jasper Judd 5,000 5,000

Christine Montgomery 5,000 5,000

Howard Williams 12,934 12,358

Since the year end Howard Williams has acquired an

additional 137 Ordinary shares through a dividend re-

investment plan. 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 16

May 2023, shareholders approved the Directors’

Remuneration Report (excluding the Directors’

Remuneration Policy) in respect of the year ended 31

January 2023. 98.6% of proxy votes were in favour of the

resolution and 1.4% were against. There were abstentions

in respect of 378,737 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 2024 will be proposed at the Annual

General Meeting.

64 Dunedin Income Growth Investment Trust PLC

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 2024:

· 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

David Barron

Chairman

3 April 2024

Continued

Directors’ Remuneration Report

Dunedin Income Growth Investment Trust PLC 65

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

The Audit Committee presents its Report for the year

ended 31 January 2024.

Committee Composition

Throughout the year the Audit Committee consisted of all

the Directors except for the Chairman of the Board, David

Barron. The Committee is chaired by Jasper Judd 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 Committee

The principal role of the Audit 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 internal control systems and

risk management systems (including review of non-

financial risks) 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 (2023: £7,000, representing the review

of the Half-Yearly Financial Report in the preceding

year). All non-audit services must be approved in

advance by the Audit 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 abrdn 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.

Activities During the Year

The Audit 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 abrdn 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 2024 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 Committee’s Report

66 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 operational

and compliance controls and risk management. The

Board, through the Audit Committee, has prepared its

own risk register which lists potential risks as set out in the

Strategic Report on pages 14 to 16. 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 abrdn Group,

including its internal audit and compliance functions, and

the Auditor.

The Board has reviewed the abrdn 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 abrdn 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

abrdn 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 abrdn Group’s compliance

department continually reviews the Company’s

operations; and

· at its meeting in March 2024, the Audit Committee

carried out an annual assessment of internal controls for

the year ended 31 January 2024 by considering

documentation from the abrdn Group, including the

internal audit and compliance functions and taking

account of events since 31 January 2024.

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 abrdn 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 2024, the Audit 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 Committee’s Report

Continued

Dunedin Income Growth Investment Trust PLC 67

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 Committee has reviewed the effectiveness of

the Auditor, Deloitte LLP (“Deloitte”), including:

· Independence - the Auditor discusses with the Audit

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

retention on 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 present professional guidelines the audit

partner is rotated after no more than five years and the

year ended 31 January 2024 is the second year for which

the present audit partner, Michael Caullay, has served.

In compliance with the appropriate regulations, the next

audit tender of the Company is due to take place by 2027.

The Audit Committee is satisfied that Deloitte is

independent and therefore supports the

recommendation to the Board that the re-appointment of

Deloitte be put to shareholders for approval at the Annual

General Meeting.

Jasper Judd

Chairman of the Audit Committee

3 April 2024

68 Dunedin Income Growth Investment Trust PLC

Financial

Statements

The Company’s net asset value

(“NAV”) increased by 6.7% on a total

return basis, outperforming the FTSE

All-Share Index which produced a

total return of 1.9%.

2.1% of the Company’s total assets are invested in

the Industrial Engineering sub-sector.

Dunedin Income Growth Investment Trust PLC 69

70 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; and

· 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

David Barron

Chairman

3 April 2024

Statement of Directors’ Responsibilities

Dunedin Income Growth Investment Trust PLC 71

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 2024 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 ownership of listed investments.

Materiality The materiality that we used in the current year was £4.5 million (2023: £4.5 million) which

was determined on the basis of 1% of net assets as at 31 January 2024.

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

72 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 strong 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 Matter

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 Ownership of Listed Investments

Key audit matter

description

As an investment entity, the Company holds listed investments of £474.1 million as at 31 January 2024 (2023:

£478.9 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 ownership of listed

investments is included in the Audit Committee’s Report as a significant reporting matter on page 66.

Independent Auditor’s Report to Dunedin

Income Growth Investment Trust PLC

Continued

Dunedin Income Growth Investment Trust PLC 73

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

How the scope of our

audit responded to

the key audit matter

We performed the following procedures to address the valuation and ownership of the listed

investment portfolio:

· we obtained an understanding of, and tested, relevant controls over the valuation and ownership of listed

investments; we relied on these controls in our audit approach to investment valuation;

· we independently valued 100% of the investment portfolio to the closing bid prices published by an

independent pricing source; and

· we confirmed the ownership of 100% of investments at the year-end date by obtaining independent

third-party confirmations directly from the Custodian.

Key observations Based on the work performed, we concluded that the valuation and ownership 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 £4.5 million (2023: £4.5 million)

Basis for determining materiality 1% (2023: 1%) of net assets

Rationale for the benchmark applied Net assets has been chosen as it is considered the most relevant benchmark for

investors and is a key driver of shareholder value

Net assets: £445.8m

Materiality: £4.5m

Audit Committee reporting

threshold £0.2m

Net Assets Materiality

74 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 2024 audit (2023: 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) there were no significant changes in the Company’s operating environment caused by the uncertainty and volatility

brought about by inflation and increased interest rates.

6.3 Error Reporting Threshold

We agreed with the Audit Committee that we would report to the Committee all audit differences in excess of

£0.2 million (2023: £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 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

The Administrator of the Company, BNP Paribas, provides day to day administration of the Company and is also

responsible for the Company’s general administrative functions, including the calculation and publication of the net

asset value and maintenance of the Company’s accounting and statutory records.

In assessing the Company’s control environment, we considered controls in place at the Administrator. As part of this we

reviewed BNP Paribas’ Service Organisation Controls (SOC 1) Report and have taken a controls reliance approach in

respect of the controls relating to valuation and ownership of listed investments. We also reviewed the controls report of

the Administrator in respect of general IT controls. We obtained a bridging letter to cover the gap between the SOC 1

report and the Company’s year end date. Further, we performed understanding of relevant business processes and

controls that address the risk of material misstatement in financial reporting.

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 page 17. As a 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

Continued

Dunedin Income Growth Investment Trust PLC 75

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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.

76 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 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 following area: valuation and ownership 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, the Listing Rules and UK tax legislation and the 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 ownership 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 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.

Independent Auditor’s Report to Dunedin

Income Growth Investment Trust PLC

Continued

Dunedin Income Growth Investment Trust PLC 77

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 58;

· 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 18;

· the Directors' statement on fair, balanced and understandable set out on page 70;

· the Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on

page 14;

· the section of the Annual Report that describes the review of effectiveness of risk management and internal control

systems set out on pages 65 to 66; and

· the section describing the work of the Audit Committee set out on pages 65 to 67.

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.

78 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 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 seven years, covering the years ending 31 January 2018 to 31 January 2024.

15.2 Consistency of the Audit Report with the Additional Report to the Audit Committee

Our audit opinion is consistent with the additional report to the Audit 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

3 April 2024

Independent Auditor’s Report to Dunedin

Income Growth Investment Trust PLC

Continued

Dunedin Income Growth Investment Trust PLC 79

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

Year ended 31 January 2024 Year ended 31 January 2023

Revenue Capital Total Revenue Capital Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Gains/(losses) on investments 10 – 4,712 4,712 – (13,996) (13,996)

Currency profit/(loss) – 267 267 – (558) (558)

Income 3 22,949 – 22,949 21,950 – 21,950

Investment management fee 4 (696) (1,044) (1,740) (682) (1,022) (1,704)

Administrative expenses 5 (1,072) – (1,072) (951) – (951)

Net return/(loss) before finance costs and taxation 21,181 3,935 25,116 20,317 (15,576) 4,741

Finance costs 6 (757) (1,116) (1,873) (597) (888) (1,485)

Return/(loss) before taxation 20,424 2,819 23,243 19,720 (16,464) 3,256

Taxation 7 (410) – (410) (412) – (412)

Return/(loss) after taxation 20,014 2,819 22,833 19,308 (16,464) 2,844

Return/(loss) per Ordinary share (pence) 9 13.54 1.91 15.45 13.02 (11.10) 1.92

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

80 Dunedin Income Growth Investment Trust PLC

As at As at

31 January 2024 31 January 2023

Notes £’000 £’000

Non-current assets

Investments at fair value through profit or loss 10 474,087 478,895

Current assets

Debtors 11 2,925 2,452

Cash and cash equivalents 12,868 12,267

15,793 14,719

Creditors: amounts falling due within one year

Bank loan 12 (13,307) (13,762)

Other creditors 12 (1,013) (1,509)

(14,320) (15,271)

Net current assets/(liabilities) 1,473 (552)

Total assets less current liabilities 475,560 478,343

Creditors: amounts falling due after more than one year 13 (29,745) (29,738)

Net assets 445,815 448,605

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 376,996 379,839

Revenue reserve 16 23,886 23,833

Equity shareholders’ funds 445,815 448,605

Net asset value per Ordinary share (pence) 17 304.99 302.57

The financial statements were approved and authorised for issue by the Board of Directors on 3 April 2024 and were signed on its

behalf by:

David Barron

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 81

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

For the year ended 31 January 2024

Share Capital

Share premium redemption Capital Revenue

capital account reserve reserve reserve Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Balance at 31 January 2023 38,419 4,908 1,606 379,839 23,833 448,605

Return after taxation – – – 2,819 20,014 22,833

Repurchase of shares for Treasury – – (5,662) – (5,662)

Dividends paid 8 – – – – (19,961) (19,961)

Balance at 31 January 2024 38,419 4,908 1,606 376,996 23,886 445,815

For the year ended 31 January 2023

Share Capital

Share premium redemption Capital Revenue

capital account reserve reserve reserve Total

Notes £’000 £’000 £’000 £’000 £’000 £’000

Balance at 31 January 2022 38,419 4,619 1,606 396,303 23,632 464,579

(Loss)/return after taxation – – – (16,464) 19,308 2,844

Issue of shares from Treasury – 289 – – – 289

Dividends paid 8 – – – – (19,107) (19,107)

Balance at 31 January 2023 38,419 4,908 1,606 379,839 23,833 448,605

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

es in Equity

82 Dunedin Income Growth Investment Trust PLC

Year ended Year ended

31 January 2024 31 January 2023

Notes £’000 £’000

Operating activities

Net return before finance costs and taxation 25,116 4,741

Adjustment for:

(Gains)/losses on investments (4,712) 13,996

Currency (gains)/losses (267) 558

Decrease in accrued dividend income 196 18

Decrease/(increase) in other debtors excluding tax 15 (16)

Increase in other creditors 109 186

Overseas withholding tax (1,093) (1,052)

Net cash flow from operating activities 19,364 18,431

Investing activities

Purchases of investments (91,372) (109,784)

Sales of investments 100,244 120,822

Net cash from investing activities 8,872 11,038

Financing activities

Interest paid (1,916) (1,409)

Dividends paid 8 (19,961) (19,107)

Buyback of Ordinary shares for treasury (5,571) –

Issue of shares from treasury – 289

Net cash used in financing activities (27,448) (20,227)

Increase in cash and cash equivalents 788 9,242

Analysis of changes in cash and cash equivalents during the year

Opening balance 12,267 2,855

Effect of exchange rate fluctuations on cash held (187) 170

Increase in cash as above 788 9,242

Closing balance 12,868 12,267

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 95.

Statement of Cash Flows

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Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 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.

The Company has borrowings in the form of £30 million 3.99% Loan Notes that mature in December 2045, and a £30

million multi-currency revolving credit facility with The Bank of Nova Scotia, London Branch, which matures in July 2024.

The Board has reviewed indicative quotes for the renewal of the multi-currency revolving credit facility and expects to

be able to renew it upon its maturity with a similar facility.

Following this assessment, 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 2024

84 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

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Strategic Report Governance Overview General Portfolio Other Information Financial Statements

(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

2024 2023

£’000 £’000

Income from investments

UK dividend income 14,970 13,643

Overseas dividends 5,843 6,262

20,813 19,905

Other income

Income on derivatives 2,060 2,007

Interest on tax reclaims 3 –

Interest received on withholding tax refunds 73 38

2,136 2,045

Total income 22,949 21,950

During the year, the Company earned premiums totalling £2,060,000 (2023 – £2,007,000) in exchange for entering into

derivative transactions. The Company had no open positions in derivative contracts at 31 January 2024 (2023 – no open

positions). Losses realised on the exercise of derivative transactions are disclosed in note 10.

86 Dunedin Income Growth Investment Trust PLC

4. Management fee

2024 2023

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Management fee 696 1,044 1,740 682 1,022 1,704

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 £289,000 (2023 – £286,000). 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 2024 (2023 – none).

The management agreement may be terminated by either party on six months’ written notice.

5. Administrative expenses

2024 2023

£’000 £’000

Directors’ fees 161 153

Auditor’s remuneration (excluding VAT):

– fees payable to the Company’s Auditor for the audit of the

Company’s annual accounts

34 30

– fees payable to the Company’s Auditor for other services:

– interim review – 7

Irrecoverable VAT 64 61

Promotional activities 246 243

Registrar’s fees 46 43

Share plan fees 149 120

Printing and postage 104 65

Other expenses 268 229

1,072 951

Expenses of £246,000 (2023 – £243,000) were paid to aFML in respect of the promotional activities of the Company. The

balance outstanding at the year end was £79,000 (2023 – £81,000).

Notes to the Financial Statements

Continued

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6. Finance costs

2024 2023

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Bank loan 263 394 657 110 166 276

Loan Notes – repayable after more than five years 479 718 1,197 479 718 1,197

Amortised Loan Notes issue expenses 3 4 7 3 4 7

Bank overdraft 12 – 12 5 – 5

757 1,116 1,873 597 888 1,485

Finance costs (excluding bank overdraft interest) are allocated 40% to revenue and 60% to capital.

7. Taxation

2024 2023

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

(a) Analysis of charge for the year

Overseas tax suffered 1,203 – 1,203 1,154 – 1,154

Overseas tax reclaimable (793) – (793) (742) – (742)

Total tax charge for the year 410 – 410 412 – 412

88 Dunedin Income Growth Investment Trust PLC

(b) Factors affecting the tax charge for the year. The UK corporation tax rate is 25% (2023 – 19%). The tax assessed for the

year is lower than the rate of corporation tax. The differences are explained below:

2024 2023

Revenue Capital Total Revenue Capital Total

£’000 £’000 £’000 £’000 £’000 £’000

Return before taxation 20,424 2,819 23,243 19,720 (16,464) 3,256

Corporation tax at 24% (2023 – 19%) 4,902 677 5,579 3,747 (3,128) 619

Effects of: –

Non-taxable UK dividend income (3,406) – (3,406) (2,628) – (2,628)

Non-taxable stock dividends – – – – –

Capital (gains)/losses on investments

not taxable

– (1,123) (1,123) – 2,659 2,659

Expenses not deductible for tax purposes 1 – 1 1 – 1

Currency (gains)/losses not taxable – (73) (73) – 106 106

Overseas taxes 410 – 410 412 – 412

Non-taxable overseas dividends (1,402) – (1,402) (1,050) – (1,050)

Excess management expenses (95) 519 424 (70) 363 293

Total tax charge 410 – 410 412 – 412

(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 £135,671,000 (2023 – £133,906,000). 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.

The UK corporation tax rate increased to 25% with effect from 1 April 2023. This impacted, where appropriate, the value

of UK deferred tax balances and the tax charged on future UK profits.

Notes to the Financial Statements

Continued

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8. Ordinary dividends on equity shares

2024 2023

£’000 £’000

Amounts recognised as distributions paid during the year:

Third interim dividend for 2023 – 3.00p (2022 – 3.00p) 4,448 4,445

Final dividend for 2023 – 4.10p (2022 – 3.90p) 6,079 5,782

First interim dividend for 2024 – 3.20p (2023 – 3.00p) 4,744 4,448

Second interim dividend for 2024 – 3.20p (2023 – 3.00p) 4,709 4,448

Return of unclaimed dividends

(19) (16)

19,961 19,107

Unclaimed dividends returned to the Company during the year ended 31 January 2024 have been donated to charity (see note 22).

A third interim dividend of 3.20p per Ordinary share was declared on 14 December 2023, payable on 29 February 2024 to

shareholders on the register on 2 February 2024 and has not been included as a liability in these financial statements. The final

dividend of 4.15p per Ordinary share was approved by the Board on 3 April 2024, payable on 31 May 2024 to shareholders on

the register on 3 May 2024 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 £20,014,000 (2023 – £19,308,000).

2024 2023

£’000 £’000

First interim dividend for 2024 – 3.20p (2023 – 3.00p) 4,744 4,448

Second interim dividend for 2024 – 3.20p (2023 – 3.00p) 4,709 4,448

Third interim dividend for 2024 – 3.20p (2023 – 3.00p) 4,678 4,448

Final dividend for 2024 – 4.15p (2023 – 4.10p) 6,019 6,079

20,150 19,423

The final dividend is based on the latest share capital of 145,039,800 Ordinary shares excluding those held in treasury.

90 Dunedin Income Growth Investment Trust PLC

9. Return per Ordinary share

2024 2023

£’000 p £’000 p

Revenue return 20,014 13.54 19,308 13.02

Capital return/(loss) 2,819 1.91 (16,464) (11.10)

Total return 22,833 15.45 2,844 1.92

Weighted average number of Ordinary shares in issue 147,764,075 148,256,451

10. Investments at fair value through profit or loss

2024 2023

£’000 £’000

Opening book cost 424,815 428,488

Investment holdings gains 54,080 73,935

Opening fair value 478,895 502,423

Analysis of transactions made during the year

Purchases 90,723 110,433

Sales - proceeds (100,243) (119,965)

Gains/(losses) on investments 4,712 (13,996)

Closing fair value 474,087 478,895

Closing book cost 409,443 424,815

Closing investment holdings gains 64,644 54,080

Closing fair value 474,087 478,895

The Company received £100,243,000 (2023 - £119,965,000) from investments sold in the year. The book cost of these

investments when they were purchased was £105,411,000 (2023 - £114,106,000). 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 £1,251,000 (2023 - £625,000).

Premiums received of £2,060,000 (2023 - £2,007,000) are included within income per note 3.

Notes to the Financial Statements

Continued

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Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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/(losses) on investments in the

Statement of Comprehensive Income. The total costs were as follows:

2024 2023

£’000 £’000

Purchases 333 506

Sales 55 76

388 582

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.

11. Debtors: amounts falling due within one year

2024 2023

£’000 £’000

Net dividends and interest receivable 568 763

Tax recoverable 2,340 1,657

Other loans and receivables 17 32

2,925 2,452

12. Creditors: amounts falling due within one year

2024 2023

(a) Bank loan £’000 £’000

EUR 15,600,000 – 11 February 2023 – 13,762

EUR 15,600,000 – 11 February 2024 13,307 –

13,307 13,762

The Company has a £30,000,000 multi–currency revolving credit facility with The Bank of Nova Scotia, London Branch

committed until 11 July 2024. 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 £30,000,000 to £40,000,000 at any time, should further investment

opportunities be identified. As at 31 January 2024 €15,600,000 had been drawn down at a rate of 5.130% (2023 –

€15,600,000 at a rate of 3.618%), which matured on 15 February 2024. At the date this Report was approved €15,600,000

had been drawn down at a rate of 5.109%, maturing on 15 April 2024. The terms of the loan facility contain covenants

that the adjusted asset coverage is not be less than 4.00 to 1.00 and that the minimum net assets of the Company are

£200 million.

92 Dunedin Income Growth Investment Trust PLC

2024 2023

(b) Other creditors £’000 £’000

Loan Notes and bank loan interest 209 257

Amount due to brokers 92 649

Sundry creditors 712 603

1,013 1,509

13. Creditors: amounts falling due after more than one year

2024 2023

£’000 £’000

3.99% Loan Notes 2045 30,000 30,000

Unamortised Loan Note issue expenses (255) (262)

29,745 29,738

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 2024 was £23,916,000 (2023 – £29,393,000), the value stated 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

2024 2023

£’000 £’000

Allotted, called up and fully paid:

146,172,889 (2023 – 148,264,670) Ordinary shares of 25p each – equity 36,543 37,066

Treasury shares:

7,505,046 (2023 – 5,413,265) Ordinary shares of 25p each – equity 1,876 1,353

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 issued no Ordinary shares (2023 – 100,000 shares issued at a price of 290p per share). During

the year the Company repurchased 2,091,781 (2023 – nil) Ordinary shares at a cost of £5,662,000, including expenses. All of

the shares were placed in treasury. Subsequent to the year end the Company repurchased a further 1,133,089 Ordinary

shares at a total cost of £3,135,000.

Notes to the Financial Statements

Continued

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15. Analysis of changes in financing during the year

2024 2023

Equity Equity

share capital share capital

(including Loan (including Loan

premium) Notes premium) Notes

£’000 £’000 £’000 £’000

Opening balance at 31 January 2023 43,327 29,738 43,038 29,731

Issue of shares from Treasury - - 289 -

Movement in unamortised Loan Notes issue expenses - 7 - 7

Closing balance at 31 January 2024 43,327 29,745 43,327 29,738

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.

2024 2023

Revenue reserve (£’000) 23,886 23,833

Number of Ordinary shares in issue at year end 146,172,889 148,264,670

Revenue reserve per Ordinary share (p) as

per the Companies Act

16.34 16.07

Less: – third interim dividend (p) (3.20) (3.00)

– final dividend (p) (4.15) (4.10)

Revenue reserve per Ordinary share (p) 8.99 8.97

94 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:

2024 2023

Net assets attributable (£’000) 445,815 448,605

Number of Ordinary shares in issue at year end

146,172,889 148,264,670

Net asset value per Ordinary share 304.99p 302.57p

Excluding shares held in treasury.

Adjusted net assets 2024 2023

Net assets attributable (£’000) as above 445,815 448,605

Unamortised Loan Note issue expenses (note 13) (255) (262)

Adjusted net assets attributable (£’000) 445,560 448,343

Number of Ordinary shares in issue at year end

146,172,889 148,264,670

Adjusted net asset value per Ordinary share 304.82p 302.39p

Excluding shares held in treasury.

Net assets - debt at fair value £’000 £’000

Net assets attributable 445,815 448,605

Amortised cost Loan Notes 29,745 29,738

Market value Loan Notes (23,916) (29,393)

Net assets attributable 451,644 448,950

Number of Ordinary shares in issue at the period end

146,172,889 148,264,670

Net asset value per Ordinary share (debt at fair value) 308.98p 302.80p

Excluding shares held in treasury.

Notes to the Financial Statements

Continued

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18. Analysis of changes in net debt

At Currency Non-cash At

31 January 2023 differences Cash flows movements 31 January 2024

£’000 £’000 £’000 £’000 £’000

Cash and cash equivalents 12,267 (187) 788 – 12,868

Debt due within one year (13,762) 455 – – (13,307)

Debt due after more than one year (29,738) – – (7) (29,745)

(31,233) 268 788 (7) (30,184)

At Currency Non-cash At

31 January 2022 differences Cash flows movements 31 January 2023

£’000 £’000 £’000 £’000 £’000

Cash and cash equivalents 2,855 170 9,242 – 12,267

Debt due within one year (13,034) (728) – – (13,762)

Debt due after more than one year (29,731) – – (7) (29,738)

(39,910) (558) 9,242 (7) (31,233)

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 £1,251,000 (2023 - £625,000). As disclosed in note 3, the premium received and fair value

changes in respect of options written in the year was £2,060,000 (2023 - £2,007,000). The largest position in derivative

contracts held during the year at any given time was £905,000 (2023 - £889,000). The Company had no open positions in

derivative contracts at 31 January 2024 (2023 - 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.

96 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 abrdn 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 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 abrdn, 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

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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 2024 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 2024 Years % £’000 £’000

Assets

Sterling - - - 12,868

Total assets - - - 12,868

Liabilities

Bank loans 0.08 5.13 (13,307) -

Loan Notes 21.87 3.99 (29,745) -

Total liabilities - - (43,052) -

Weighted

average Weighted

period for average

which interest Fixed Floating

rate is fixed rate rate rate

At 31 January 2023 Years % £’000 £’000

Assets

Sterling - - - 12,267

Total assets - - - 12,267

Liabilities

Bank loans 0.17 3.62 (13,762) -

Loan Notes 22.87 3.99 (29,738) -

Total liabilities - - (43,500) -

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.

98 Dunedin Income Growth Investment Trust PLC

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 2024. 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 2024 31 January 2023

Net Total Net Total

monetary currency monetary currency

Investments assets exposure Investments assets exposure

£’000 £’000 £’000 £’000 £’000 £’000

Euro 57,491 (11,208) 46,283 44,258 (12,391) 31,867

Swiss Francs - 96 96 15,617 90 15,707

Danish Krone 9,009 109 9,118 9,909 114 10,023

Norwegian Krone 13,067 11 13,078 10,202 12 10,214

Swedish Krona 22,478 - 22,478 34,976 1 34,977

Sterling 372,042 (17,280) 354,762 363,933 (18,116) 345,817

Total 474,087 (28,272) 445,815 478,895 (30,290) 448,605

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 99

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 26 to 33, 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 2024

would have increased by £47,409,000 (2023 - increase of £47,890,000) 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.

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 2024 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Bank loans 13,307 – – – – – 13,307

Loan Notes – – – – – 30,000 30,000

Interest cash flows on bank loans and

loan notes

1,254 1,197 1,197 1,197 1,197 20,349 26,391

Cash flows on other creditors 804 – – – – – 804

15,365 1,197 1,197 1,197 1,197 50,349 70,502

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 2023 £’000 £’000 £’000 £’000 £’000 £’000 £’000

Bank loans 13,762 – – – – – 13,762

Loan Notes – – – – – 30,000 30,000

Interest cash flows on bank loans and

loan notes

1,281 1,197 1,197 1,197 1,197 21,546 27,615

Cash flows on other creditors 1,252 – – – – – 1,252

16,295 1,197 1,197 1,197 1,197 51,546 72,629

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 2024 are shown in notes 12 and 13.

100 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 normally 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 2024 and 31 January 2023 the amortised cost of the Company’s Loan Notes was

£29,745,000 and £29,738,000 respectively. At 31 January 2024 and 31 January 2023 the Company’s bank loans

amounted to £13,307,000 and £13,762,000 respectively. The facility is committed until 11 July 2024.

(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 abrdn 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:

2024 2023

Balance Maximum Balance Maximum

Sheet exposure Sheet exposure

£’000 £’000 £’000 £’000

Non-current assets

Investments at fair value through profit or loss 474,087 – 478,895 –

Current assets

Cash and short term deposits 12,868 12,868 12,267 12,267

486,955 12,868 491,162 12,267

Notes to the Financial Statements

Continued

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Strategic Report Governance Overview General Portfolio Other Information Financial Statements

None of the Company’s financial assets is past due or impaired.

Fair values of financial assets and financial liabilities. The fair value of borrowings has been calculated at £37,223,000 as at

31 January 2024 (2023 – £43,155,000) compared to an accounts value in the financial statements of £43,052,000 (2023

– £43,500,000) (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 2024 Note £’000 £’000 £’000 £’000

Financial assets at fair value through profit or loss

Quoted equities a) 474,087 - - 474,087

Total 474,087 - - 474,087

Level 1 Level 2 Level 3 Total

As at 31 January 2023 £’000 £’000 £’000 £’000

Financial assets at fair value through profit or loss

Quoted equities a) 478,895 - - 478,895

Total 478,895 - - 478,895

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.

102 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 page 63.

Transactions with the Manager. The Company has an agreement with the abrdn 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 £19,000 in respect of returned, unclaimed dividends accumulated over a number of

years. The Board took the decision to donate these monies to the abrdn Charitable Foundation. The abrdn Charitable

Foundation is a registered charity. Its board of directors includes independent representation from the abrdn Group and

provides oversight and guidance for its charitable giving activities.

Notes to the Financial Statements

Continued

Dunedin Income Growth Investment Trust PLC 103

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.

104 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 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 111.

Investor Warning: Be alert to share

fraud and scams

abrdn 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 abrdn or for third party firms. abrdn

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 abrdn

and any third party making such offers/claims has no link

with abrdn.

abrdn 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

Contact Addresses). 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

Contact Addresses) or by email to: CEF.CoSec@abrdn.com

Closure of the abrdn Investment Trust

Savings Plans (the “Plans”)

In June 2023, abrdn notified investors in the abrdn

Investment Trust ISA, Share Plan and Investment Plan for

Children that these plans would be closing in December

2023. All investors with a holding or cash balance at that

time transferred to interactive investor (“ii”). ii

communicated with investors in November to set up

account security to ensure that investors could continue

to access their holdings via ii following the closure of

the Plans.

Please contact ii for any ongoing support with your

account on 0345 646 1366, or +44 113 346 2309 if you are

calling from outside the UK. Lines are open 8.00am to

5.00pm Monday to Friday. Alternatively, you can access

the ii website at: www.ii.co.uk/abrdn-welcome

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.

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

Investor Information

Dunedin Income Growth Investment Trust PLC 105

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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

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.

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

Twitter:

@abrdnTrusts

LinkedIn:

abrdn Investment Trusts

Key Information Document (“KID”)

The KID relating to the Company and published by the

Manager can be found on the Company’s website.

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 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.

Note

Please remember that past performance is not a guide to

the future. Stock market and currency movements may

cause the value of shares and the income from them to

fall as well as rise and investors may not get back the

amount they originally invested.

As with all equity investments, the value of investment

trust shares purchased will immediately be reduced by

the difference between the buying and selling prices of

the shares, known as the market maker’s spread.

Investors should further bear in mind that the value of

any tax relief will depend on the individual

circumstances of the investor and that tax rates and

reliefs, as well as the tax treatment of ISAs, may be

changed by future legislation.

The information on pages 104 to 105 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 Investments Limited which is

authorised and regulated by the Financial Conduct

Authority in the United Kingdom.

106 Dunedin Income Growth Investment Trust PLC

abrdn Group or abrdn

The abrdn plc group of companies. abrdn is the brand of

abrdn plc.

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.

Carbon Emissions

Carbon emissions is used as a generic term for the main

greenhouse gas (“GHG”) emissions (carbon dioxide,

methane, nitrous oxide, F-gases).

Carbon Emissions – Scope 1

Greenhouse gas emissions generated from burning fossil

fuels and production processes which are owned or

controlled by a company.

Carbon Emissions – Scope 2

Greenhouse gas emissions generated from the

consumption of purchased electricity, heat or steam

by a company.

Carbon Emissions – Scope 3

Other upstream and downstream indirect greenhouse

gas emissions such as the extraction and production of

purchased materials and fuels, transport-related activities

in vehicles not owned or controlled by a reporting entity,

electricity related activities (egT&D losses) not covered in

Scope 2.

Carbon Intensity

Carbon emissions relative to a specific activity. For

company carbon footprinting, the carbon intensity

reflects the CO2e emissions divided by revenue in million

US$. For countries, the standard intensity metric is the

ratio of greenhouse gas emissions produced to gross

domestic product.

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 pages 112 to 114.

Dividend Cover

Revenue return per share divided by the dividend per

share, expressed as a ratio. Refer to Alternative

Performance Measures on pages 112 to 114.

Dividend Yield

The annual dividend expressed as a percentage of the

share price.

FCA

Financial Conduct Authority.

Glossary of Terms

Dunedin Income Growth Investment Trust PLC 107

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 pages 112 to 114.

Investment Manager

abrdn Investments Limited is a wholly owned subsidiary of

abrdn 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.

Key Information Document or KID

The UK version of the Packaged Retail and Insurance-

based Investment Products (“PRIIPS”) Regulation (as it

forms part of UK law following the UK’s departure from the

EU) requires the Manager, as the Company’s PRIIP

‘manufacturer’, to prepare a Key Information Document

(“KID”) in respect of the Company. This KID must be made

available by the Manager to retail investors prior to them

making any investment decision and is available via the

Company’s website. The Company is not responsible for

the information contained in the KID and investors should

note that the procedures for calculating the risks, costs

and potential returns are prescribed by law. The figures in

the KID may not reflect the expected returns for the

Company and anticipated performance returns cannot

be guaranteed.

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 abrdn plc and acts as the Company’s

Alternative Investment Fund Manager. It is authorised and

regulated by the FCA.

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 pages 112 to 114.

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.

108 Dunedin Income Growth Investment Trust PLC

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.

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 pages 112 to 114.

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.

Glossary of Terms

Continued

Dunedin Income Growth Investment Trust PLC 109

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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

abrdn Group.

In 2023, the Company celebrated its 150

anniversary

and returned to Dundee for its AGM.

The book entitled “The History of Dunedin Income

Growth Investment Trust PLC” is available on the

Company’s website.

Your Company’s History

110 Dunedin Income Growth Investment Trust PLC

Issued Share Capital at 31 January 2024

146,172,889 Ordinary shares of 25p (153,677,935 including treasury shares)

Treasury Shares at 31 January 2024

7,505,046 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 2010 No shares purchased, cancelled or issued

Year ended 31 January 2011 No shares purchased, cancelled or issued

Year ended 31 January 2012 No shares purchased, cancelled or issued

Year ended 31 January 2013 No shares purchased, cancelled or issued

Year ended 31 January 2014 300,000 Ordinary shares sold from treasury

Year ended 31 January 2015 No shares purchased, cancelled or issued

Year ended 31 January 2016 No shares purchased, cancelled or issued

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 2022 No shares purchased, cancelled or issued

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

Share Capital History

Dunedin Income Growth Investment Trust PLC 111

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

abrdn Fund Managers Limited 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 2023.

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,

abrdn Holdings Limited, on request, and the remuneration disclosures in respect of the AIFM’s reporting period for the

year ended 31 December 2023 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 2024 1.16 1.19

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

)

112 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.

2024 2023

Revenue return per share a 13.54p 13.02p

Dividends per share b 13.75p 13.10p

Dividend cover a/b 0.98 0.99

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.

2024 2023

Borrowings (£’000) a 43,052 43,500

Cash (£’000) b 12,868 12,267

Amounts due to brokers (£’000) c 92 649

Amounts due from brokers (£’000) d – –

Shareholders’ funds (£’000) e 445,815 448,605

Net gearing (a-b+c-d)/e 6.79% 7.11%

Alternative Performance Measures

Dunedin Income Growth Investment Trust PLC 113

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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.

2024 2023

NAV per Ordinary share (p) (see note 17) a 308.98p 302.80p

Share price (p) b 276.00p 294.00p

Discount (a-b)/b 10.67% 2.91%

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.

2024 2023

Investment management fees (£’000) 1,740 1,704

Administrative expenses (£’000) 1,073 951

Less: non-recurring charges (£’000) (17) –

Ongoing charges (£’000) 2,796 2,655

Average net assets (£’000) 448,512 430,038

Ongoing charges ratio (excluding look-through costs) 0.62% 0.62%

Look-through costs

0.02% 0.02%

Ongoing charges ratio (including look-through costs) 0.64% 0.64%

Calculated in accordance with AIC guidance issued in October 2020 to include the Company’s share of costs of holdings in investment companies on a look-through basis.

The ongoing charges ratio provided in the Company’s Key Information Document is calculated in line with the PRIIPs regulations which

amongst other things, includes the cost of borrowings and transaction costs.

114 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.

Year ended 31 January 2024 NAV Price

Opening at 1 February 2023 a 302.8p 294.0p

Closing at 31 January 2024 b 309.0p 276.0p

Price movements c=(b/a)-1 2.0% –6.1%

Dividend reinvestment

d 4.7% 4.5%

Total return c+d +6.7% (1.6)%

Year ended 31 January 2023 NAV Price

Opening at 1 February 2022 a 309.0p 310.0p

Closing at 31 January 2023 b 302.8p 294.0p

Price movements c=(b/a)-1 (2.0)% (5.2)%

Dividend reinvestment

d 4.4% 4.3%

Total return c+d +2.4% –0.9%

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 115

General

The Annual General Meeting will be held at

18 Bishops Square, London E1 6EG at 12 noon

on Thursday 23 May 2024.

The Company will also be hosting an online

shareholder presentation, which will be held at

10.00am on Tuesday 7 May 2024. Full details on how

to register for the event can be found at:

https://bit.ly/abrdn-Dunedin-Income-2024

116 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 23 May 2024 for the following

purposes:

Ordinary Business

To consider and, if thought fit, pass resolutions 1 to 11 (inclusive) as ordinary resolutions:

1. To receive and adopt the audited financial statements of the Company for the financial year ended

31 January 2024 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 2024 which appears on pages 61 to 64 of the Annual Report and Accounts.

3. To approve a final dividend of 4.15p per Ordinary share in respect of the financial year ended 31 January 2024,

payable on 31 May 2024 to holders of Ordinary shares on the register of members as at the close of business on 3

May 2024.

4. To re-elect Mr Jasper Judd as a Director of the Company.

5. To re-elect Mr Howard Williams as a Director of the Company.

6. To re-elect Mr David Barron as a Director of the Company.

7. To re-elect Ms Christine Montgomery as a Director of the Company.

8. To re-elect Ms Gay Collins as a Director of the Company.

9. 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.

10. To authorise the Directors to determine the remuneration of the Company’s Auditor.

11. 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 £12,085,441 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 2025 (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 12 and 13 as special resolutions:

12. 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 11 set out in the notice of the 2024 Annual General Meeting ("Resolution 11"), 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 11 and/or by way o

f 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

Dunedin Income Growth Investment Trust PLC 117

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 £1,812,997 or, if less, the number representing 5% 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

2025 (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.

13. 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 21,741,466 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 O

rdinary shares and the highest current

independent bid for Ordinary shares on the London Stock Exchange at the time the purchase is carried out;

and

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 2025 (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.

118 Dunedin Income Growth Investment Trust PLC

Special Business

To consider and, if thought fit, pass resolution 14 as an ordinary resolution:

14. That the maximum aggregate value of fees payable to the directors of the Company be increased from £200,000

per annum to £250,000 per annum.

By order of the Board Registered Office:

abrdn Holdings Limited 1 George Street

Company Secretary Edinburgh EH2 2LL

3 April 2024

Notice of Annual General Meetin

Continued

Dunedin Income Growth Investment Trust PLC 119

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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 CRE

ST 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.

120 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 21 May 2024 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 21 May 2024 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 3 April 2024 (being the latest practicable date prior to the publication of this document) the Company’s issued

share capital comprised 145,039,800 Ordinary shares of 25p each and 8,638,135 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 3 April 2024 was 145,039,800.

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 re-election are set out on pages 50 to 52 of the Annual Report and

financial statements of the Company for the financial year ended 31 January 2024.

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

Dunedin Income Growth Investment Trust PLC 121

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

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.

122 Dunedin Income Growth Investment Trust PLC

Dunedin Income Growth Investment Trust PLC 123

Strategic Report Governance Overview General Portfolio Other Information Financial Statements

124 Dunedin Income Growth Investment Trust PLC

Dunedin Income Growth Investment Trust PLC 125

Directors

David Barron (Chairman)

Gay Collins

Jasper Judd

Christine Montgomery

Howard Williams

Registered Office & Company Secretary

abrdn Holdings Limited

1 George Street

Edinburgh EH2 2LL

Email: CEF.CoSec@abrdn.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)

United States Internal Revenue Service

FATCA Registration Number (“GIIN”)

CJ1DH9.99999.SL.826

Legal Entity Identifier (“LEI”)

549300PPXLZPR5JTL763

Website

dunedinincomegrowth.co.uk

Registrar

Equiniti Limited

Aspect House

Spencer Road

Lancing

West Sussex BN99 6DA

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

Contact Addresses

For more information visit dunedinincomegrowth.co.uk

abrdn.com