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 46 years - an industry record.
The UK equity market, as measured by the FTSE All-Share Index, produced a total return of 2.9% over May. This marked the twelfth month in a row of positive returns, which is the longest series of consecutive positive monthly returns since the inception of the index in 1962. UK gilt yields tracked US Treasury yields higher, rising by over 30 basis points (prices falling) and taking the 10-year yield to above 2%. Weakness in the utility sectors, considered by some as bond proxies, was partly offset by a takeover approach for Severn Trent Water where the Trust has a holding. In general, sentiment improved towards UK domestic cyclical sectors and general retailers was the best performing sector.
A new holding was purchased in GCP Student Living, a student accommodation real estate investment trust (REIT) with a 5.5% dividend yield. The holding in Inmarsat, the satellite communications provider, was sold on valuation concerns.