CT UK CAPITAL AND INCOME INVESTMENT TRUST PLC - Mid-year update

CT UK Capital and Income Investment Trust plc provided an investor update highlighting its long-standing strategy of delivering both capital growth and sustainable dividend growth, with an uninterrupted record of annual dividend increases since 1992. Fund Manager Dominic Younger outlined a value-driven, contrarian investment approach focused on identifying undervalued UK equities with strong cash flow generation, resilient business models, and attractive income characteristics. The Trust reported a recent 5% increase in its dividend and continues to target above-market portfolio yields while maintaining a balanced portfolio of recovery opportunities and established compounders. Portfolio activity included new investments in Bunzl, Croda and Standard Chartered, increased conviction in WPP and Rentokil, and the disposal of Burford Capital. Management remains constructive on the outlook for UK equities, citing compelling valuations, growing merger and acquisition activity, improving investor sentiment, and the potential for increased capital flows into the UK market. The presentation also highlighted opportunities across sectors such as real estate, financials, industrials and consumer businesses, while emphasising the importance of dividend reinvestment in driving long-term total returns. Despite ongoing geopolitical uncertainty and market volatility, the Trust believes its disciplined investment process, diversified portfolio, strong dividend profile and focus on value creation position it well to deliver attractive shareholder returns and income growth over the long term.