Dunedin Income Growth Investment Trust revamp starts to yield returns

Trust up 20.9% in the year to 31 July

Vodafone's dividend cut served as "a sobering lesson" in the types of dividend-paying companies the Dunedin Income Growth Investment Trust (DIGIT) is trying to avoid, according to co-manager Ben Ritchie, as the trust begins to reap the rewards of a three-year portfolio revamp.

DIGIT's long-standing holding in Vodafone represented an overhang from the trust's previous investment process, which focused on high-yielding stocks. Since Louise Kernohan replaced Jeremy Whitley as co-manager in September 2016, that process has been overhauled to better reflect its income growth moniker. The trust's new process is threefold, Ritchie told Investment Week: "Making sure our best UK ideas are in there, making sure we are bringing our best European ideas, and then finding the most interesting places for yield." The pivot is now paying off. DIGIT beat its FTSE All-Shar...