City of London Ord (LSE:CTY)

Investment trust
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Trading AccountISAJISASIPP

Trust Info

  • Market Cap£1.565bn
  • OCF0.86%
  • AIC sectorUK Equity Income
  • Manager GroupJanus Henderson
  • Currency
  • ISINGB0001990497

Investment Strategy

The Company's objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board continues to recognise the importance of dividend income to shareholders.

ii Super 60 selected

This Investment trust is a member of our ii Super 60 rated list

City of London remains a compelling core option for investors. It has a formidable reputation as an income-producing investment trust and in July 2020 notched its 54th consecutive year of rising dividends. Job Curtis has been managing the strategy for 29 years, a length of tenure that is exceptionally rare.

Curtis focuses on high-yielding, cash-generative businesses and initiates performance by taking relatively small bets away from the index, rather than aggressive sector and stock positioning.

As head of value and income at Janus Henderson Investors, Curtis looks for companies undervalued on a medium-term basis that he can invest in over the long term. He has, however, been focusing on overseas earners rather than UK domestic names, despite the former’s valuations being higher, given what he views as an unprecedented level of economic uncertainty in the UK.

The portfolio is well diversified with around 100 holdings. The manager likes to run his winners, so portfolio turnover is low. Shares in the trust typically trade at a small premium to net asset value. Investors benefit from the trust’s very low costs. This is one of the largest of the UK equity income trusts with one of the lowest ongoing charge ratios of 0.39%.

Shares in the trust currently have a yield of 6%, and pay a quarterly dividend.

Please note: As a result of recent extreme economic conditions, many companies have temporarily stopped paying dividends or have significantly reduced the amount they are paying out. This means the income that is likely to be achieved by funds and trusts in the near future may be far less than the historic yield quoted in the portfolios.

September 2020


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