Job Curtis, Fund Manager of The City of London Investment Trust, discusses the Trust’s recent performance, areas where he is finding opportunities, concentration risk among the strong dividend payers, and equity valuations in the UK market.

Key Takeaways

  • 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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