UK valuations remain cheap
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- The City of London Investment Trust performed well in the first half 2021, benefiting from exposure to financials and life insurance companies
- Concentration risk is now less of an issue in the UK, as companies that were overdistributing dividends previously; have had a chance to recalibrate their dividend payments to more affordable levels following the Covid-19 induced lull
- With UK equity market valuations appearing cheap relative to their global counterparts; there has been a flurry of takeover bids, with British supermarket chain Morrisons, the most recent example
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