Will the UK stock market continue to shine?
Job Curtis, Portfolio Manager of The City of London Investment Trust – one of the world’s oldest investment company’s – discusses performance for the financial year ending 30th June 2022, how he has navigated a volatile market environment, and provides his outlook for dividends going forward.
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- The City of London Investment Trust outperformed its benchmark for the financial year ending 30th June 2022. The Company has increased its dividend every year since 1966; this 56-year-old record is the longest of any investment trust.
- Stock selection was the key driver of returns, helped by the portfolio’s tilt towards large companies and dividend yield, and away from highly valued, growth stocks.
- While dividends from mining companies have probably peaked – given lower commodity prices – dividend recovery from sectors such as banks and energy should continue to drive the aggregate level of UK dividends higher.
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- If a Company's portfolio is concentrated towards a particular country or geographical region, the investment carries greater risk than a portfolio diversified across more countries.
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- Active management techniques that have worked well in normal market conditions could prove ineffective or detrimental at other times.
- The Company could lose money if a counterparty with which it trades becomes unwilling or unable to meet its obligations to the Company.
- Shares can lose value rapidly, and typically involve higher risks than bonds or money market instruments. The value of your investment may fall as a result.
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