CT UK Capital & Income (CTUK)

CT UK Capital and Income (CTUK) entered a new chapter on 01/01/2026, when Dominic Younger succeeded Julian Cane as lead manager after almost three decades of continuity under his predecessor. Dominic is no outsider: he joined Columbia Threadneedle in 2013, worked closely alongside Julian from 2021, and had already led the CT UK Monthly Income Fund since July 2024, giving him a recent, relevant track record ahead of taking the helm.

CTUK's Dividend remains a core attraction despite the transition, it having been raised for 32 consecutive years, comfortably ahead of inflation, with healthy underlying earnings and reserves underpinning prospects for a 33rd. Much of Dominic's early Portfolio activity has been geared toward not only broadening capital return drivers but also to enhance and extend the trust's dividend-earning power: new positions include Bunzl and IMI, whilst existing holdings with strong long-term potential at depressed valuations, like Croda, have been topped up.

On Performance, it has been difficult so far, however. Following a strong first two months, a sharp rally in oil & gas stocks, triggered by the outbreak of hostilities in the Middle East, hit CTUK hard in March, given the trust is underweight to the sector. NAV and share price total returns of 4.9% and 3.8% (to 25/09/2026) trailed the FTSE All-Share's 10.5% as a result. There have been bright spots since, though, including IMI and WPP, whilst CTUK has also benefitted from a pickup in UK M&A activity, with holding Tate & Lyle receiving a takeover approach at a near 60% premium. However, the impact of March was a severe drag on relative returns, yet to be offset, and a likely driver that has pushed CTUK's Discount out to 4.0%, now wider than its 3.3% five-year average.