For individual investors in the UK

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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Job Curtis

Job Curtis

Portfolio Manager


7 Nov 2022

Key takeaways:

  • 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.

These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.

 

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

Marketing Communication.

 

Glossary

 

 

 

Important information

Please read the following important information regarding funds related to this article.

Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser. This is a marketing communication. Please refer to the AIFMD Disclosure document and Annual Report of the AIF before making any final investment decisions.
    Specific risks
  • 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.
  • Where the Company invests in assets which are denominated in currencies other than the base currency then currency exchange rate movements may cause the value of investments to fall as well as rise.
  • This Company is suitable to be used as one component in several in a diversified investment portfolio. Investors should consider carefully the proportion of their portfolio invested into this Company.
  • 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.
  • The return on your investment is directly related to the prevailing market price of the Company's shares, which will trade at a varying discount (or premium) relative to the value of the underlying assets of the Company. As a result losses (or gains) may be higher or lower than those of the Company's assets.
  • The Company may use gearing as part of its investment strategy. If the Company utilises its ability to gear, the profits and losses incured by the Company can be greater than those of a Company that does not use gearing.
  • All or part of the Company's management fee is taken from its capital. While this allows more income to be paid, it may also restrict capital growth or even result in capital erosion over time.
Job Curtis

Job Curtis

Portfolio Manager


7 Nov 2022

Key takeaways:

  • 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.