Ideal for those wanting predictability of income and returns, and a suitable investment for children or grandchildren.

It aims for long-term growth in income and capital from a broad spread of large, blue chip, UK listed companies, medium sized companies, and has scope to invest in overseas stocks. The Trust has raised its dividends for 45 years - an industry record.

• The Trust has a proven track record in generating long term, sustainable, quarterly income, enjoying 45 years of rising annual dividends. Future dividends are supported by a large revenue reserve.
• The Trust has, at 0.44%, one of the lowest Total Expense Ratios* in the UK Growth and Income sector (Annual Report and Accounts 2011). Please remember that past performance is not a guide to future performance.
• The Fund Manager, Job Curtis, recently received a special award from Investment Week Magazine for the consistency of performance from the Trust over the last 20 years.

*The total of the management fees and other administrative expenses (including expenses charged to capital) as a percentage of the average shareholders' funds at the beginning and end of the year.

• The trust invests 80% of its shares in UK listed companies. When a trust is a specialist country-specific or geographic regional fund, the investment carries greater risk than a more internationally diversified portfolio.
• The investor needs to be aware of exchange rates. Not all the investments in this portfolio are made in Sterling, so exchange rates could affect the value of and income from your investment. Full details of risks.

The UK equity market delivered a total return of 0.8%, as measured by the FTSE All Share Index, in December 2011. Market sentiment was dominated by international factors with a lot of attention on the eurozone sovereign debt crisis. Positive economic data from the US helped to rally equities towards the end of the month.

Overall, the fund was helped by the outperformance of defensive sectors such as pharmaceuticals, tobacco and mobile telecoms. On the other hand, cyclical sectors where the fund is underweight, such as mining and banks, underperformed. A new holding was purchased in Balfour Beatty, the international engineering and construction group with significant exposure to transport, energy and infrastructure projects. The stock appeared to be attractively valued given the strength of its order book.

Job Curtis
December 2011