Thursday, 18 September 2014
City of London Trust - Final Results
City have just announced full year results for the year to 30th June 2014 (link via Investegate). Share price total return has increased by 15.1% over the year compared to the FTSE All Share benchmark of 13.1%. Dividends have increased by 3.2% from 14.3p to currently 14.76p giving a yield of 3.9%. The dividend was increased for the 48th consecutive year.
Income was significantly impacted by the strength of sterling as the UK economy recovered. Over the year, the pound appreciated by 12.4% against the US dollar. Some 22% of the dividends which City of London receives (from its holdings in UK companies such as HSBC and BP) are declared in dollars
Ongoing charge remains, at 0.43%, the lowest in the sector.
Over the year there was again a reduction in the weighting in large UK-listed companies with a corresponding increase in the weighting of medium-sized and overseas listed companies. Large companies (FTSE 100) account for 69% of the portfolio, medium companies 20% and overseas-listed companies, 11%.
Looking at their top 40 holdings, I hold a significant number in my individual shares portfolio namely Glaxo, Diageo, Unilever, BHP Billiton, Legal & General, Centrica, Reckitt, Imperial Tobacco, IMI and BSkyB. This is the nearest proxy to a HYP portfolio often discussed on the Motley Fool discussion boards. I have been monitoring the performance of my individual shares portfolio against a basket of investment trusts for the past 4 years. In each of those years, the basket of trusts has delivered slightly better returns than my shares. This year, they seem to be on track to repeat this out-performance. More on this at the end of the year!
I first purchased CTY for my personal equity plan (PEP) in 1995. Having topped up my ISA holding this week it now represents the largest weighting in my IT portfolio and yes, it still feels like a dependable, faithful old carthorse. Happy to continue holding for the foreseeable…