Suits investors looking to access the growth potential of the full spectrum of companies in the UK, while enjoying some income. Long-term investors prepared to accept some short-term volatility from companies outside the main market in return for the prospect of higher growth, may also find it of interest.

The Trust aims to provide a higher-than-average return for investors, with growth of both capital and income over the medium-to-long term. It invests in a broad range of mainly UK companies, from blue chips to small and medium-sized companies, with not more than 50% of the portfolio comprised of FTSE100 companies.

• The Trust invests in a broad range of mainly UK companies, from blue chips to small and medium sized companies, with not more than 50% of the portfolio comprised of FTSE 100 companies.
• The Trust has an outstanding long term track record of income growth, with 38 consecutive years of increasing dividends until 2009, when the dividend was held. It has a current dividend yield of 3.25% (Source: Henderson Global Investors as at 31/08/2011). Please remember that past performance is not a guide to future performance.
• The Trust can blend growth opportunities from the largest UK corporations with those from well run, family-owned companies.

• Some of the investments in this portfolio are in smaller companies shares. They may be more difficult to buy and sell and their share price may fluctuate more than that of larger companies.
• If a fund is a specialist country-specific or geographic regional fund, the investment carries greater risk than a more internationally diversified portfolio. Full details of risks.

Notable performers over the month included global engineering group GKN which rose 14.5%; GKN is one of our top ten positions. Other stocks within the portfolio that provided strong returns were Rio Tinto (21.8%), Barclays (20.7%) and Aviva (16.2%). At the other end of the spectrum was Royal Dutch Shell, which lost 5.9%. A hard hit high street over the Christmas period led to disappointing sales from toys retailer Hornby and the share price was duly affected.

The fund aims for steady and reliable results over the long term through investing in good quality companies; engineer Senior has been one of these companies, providing strong and steady returns consistently. After a disappointing end to 2011 industrial stock Cape has staged a convincing recovery. Markets have taken a more upbeat tone as the majority of economic data released has surprised on the upside, meanwhile European leaders have taken some steps forwards in dealing with the Eurozone crisis. We believe the outlook for global equities is improving.

James Henderson
January 2012