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 Trust has a proven track record in generating long term, sustainable, quarterly income, enjoying 46 years of rising annual dividends. Future dividends are supported by a large revenue reserve.
• The Trust has, at 0.45%, one of the lowest Ongoing Charges* in the UK Growth and Income sector (Annual Report and Accounts 2012). Please remember that past performance is not a guide to future performance.
• The Fund Manager, Job Curtis, received a special award from Investment Week Magazine for the consistency of performance from the Trust over the last 21 years.

*The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

• 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, 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.

Job Curtis
May 2013