Fact sheet: City of London IT

Rated Fund Information
Rated Funds Group
?Money Observer has arranged all its Rated Funds into easy to understand Rated Fund Groups, comprising funds and investment trusts.
UK EQUITY INCOME
Sector
IT UK Equity Income
Fund type
Investment Trust
Primary aim
GROWTH & INCOME
Why Money Observer Rates City of London IT

Rated Fund 2015-2017. A dependable 'dividend hero'

City of London has a formidable reputation as an income-producing investment trust with 50 years of consecutive annual dividend increases under its belt. It also has a good yield of 4 per cent and pays a quarterly dividend.

It is one of the largest of the UK equity income trusts and has one of the lowest ongoing charge ratios of 0.42 per cent. It is principally invested in the UK but has around 10 per cent invested in overseas companies. Job Curtis has run the trust since 1991. He manages it conservatively, focusing on high-yielding, cash-generative businesses.

Curtis works as a member of the global equity team at Henderson Global Investors, drawing on the ideas of fellow investment managers such as James Henderson, Alex Crooke and Ben Lofthouse.

He looks for companies that are undervalued on a medium-term basis that he can invest in over the long term. He likes to run his winners and the portfolio turnover is low. It is well-diversified with over 100 holdings.

Around two thirds of the portfolio is invested in blue-chip, UK-listed companies, but they tend to be businesses operating globally that are selling their goods and services overseas and investing in economies likely to grow faster than the UK.

The remainder is in medium and smaller-sized companies. Curtis points out that the prospects for dividend growth have been improved by the depreciation in sterling, especially since 28 per cent of the dividends the trust receives are declared in US dollars or euros.

3 Year Performance
Fund Performance31.2%
Average of Rated Funds Group35.4%
Sector Performance26.7%
Fund information
Fund name
The City of London Investment Trust Ord
Fund manager company
Henderson Global Investors Ltd
Fund type
Investment Trust
Fund manager
  • Job Curtissince 01/01/1991
Accolades
Fund objective
The Company’s objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board continues to recognise the importance of dividend income to shareholders.
Benchmark
  • Morningstar Investment Trust UK Growth & Income
Investment style
No data available.
Investment method
No data available.
Quick stats
1 Year return
12.7%
1 Year rank in sector
14/24
Sector
IT UK Equity Income
Yield
4%
Ongoing charge (OCF)
?A fund’s ongoing charges figure (OCF) is similar to the old-style total expense ratio. It reflects the annual charge to investors in the fund, in percentage terms, but does not include extra performance-related fees (where these are levied) or the fund’s trading expenses on its underlying investments.
0.42%
Fund size
£1,480m
FE Risk score
?FE Risk Scores measure the riskiness of instruments relative to the FTSE 100 index of shares. Weekly volatility is measured over three years with recent behaviour counting more heavily than earlier behaviour. Cash-type investments will have scores close to zero. Funds will tend to have scores in the 0-150 range. The FTSE 100 is always scored at 100. There is no upper limit.
89
Mid price
429.5
NAV
?Net asset value. The NAV per share may be higher or lower than the share price, which in turn is trading at either a discount or a premium to NAV.
423.4
Discount/Premium
?When the market price of an investment trust’s shares is less than the net asset value (NAV) per share then it is trading at a discount to NAV. A trust’s shares are on a premium when they trade at a higher price than the NAV.
+1.44
Gearing
?Investment trusts have the ability to borrow money which they invest with the aim of generating a higher return than the cost of the loan. An ungeared trust has a figure of 100. A figure of 110 would represent a trust with 10% gearing.
109
Top in this sector
Fund name1 Year
Shires Income plc27.5%
Chv Small Cos Div Tst plc27%
Std Life Eq In Tst23.8%
Finsbury Growth & Inc Tst PLC23%
JPMorganClaverhITplc19.6%
...more in IT UK Equity Income

Performance snapshot

Holdings snapshot

  • UK88.7%
    USA3.9%
    Netherlands2.7%
    Germany2.2%
    Switzerland2%
  • Financials26.4%
    Consumer Goods21.5%
    Consumer Services13.1%
    Industrials9.5%
    Oil & Gas9.2%
  • UK Equities88.7%
    US Equities3.9%
    Dutch Equities2.7%
    German Equities2.2%
    Swiss Equities2%

Performance vs Sector

Cumulative performance
 1 mth3 mth6 mth1 yr3 yr5 yr
Fund1.4%3.1%0.4%12.7%31.2%66.3%
Sector0.6%2.2%1.3%14.2%26.7%65.2%
Rank within sector5 / 247 / 2417 / 2414 / 248 / 2411 / 24
Quartile1st2nd3rd3rd2nd2nd
Calendar performance
 YTD - 20172016201520142013
Fund10.1%9.3%6.1%4.4%24.1%
Sector11.6%6.9%3.8%3%29.8%
Rank within sector16 / 2411 / 2411 / 2413 / 2416 / 24
Quartile3rd2nd2nd3rd3rd
Risk statistics
Alpha
?Alpha is a measure of a fund's over- or under-performance by comparison to its benchmark. If the Alpha is 5, the fund has outperformed its benchmark by 5%; so the greater the Alpha, the greater the outperformance.
-0.35
Beta
?Beta estimates a fund's volatility by comparison to that of its benchmark. A fund with a beta close to 1 means that the fund will move generally in line with the benchmark. Higher than 1 and the fund is more volatile than the benchmark and vice versa.
1.15
Sharpe
?This commonly-used measure calculates the level of return over and above the return of a notional risk-free investment, such as cash. The difference in returns is then divided by the fund's volatility. The resulting ratio is an indication of the amount of excess return generated per unit of risk.
0.39
Volatility
?Volatility (or standard deviation), when applied to an investment fund, expresses its risk. It shows how widely a range of returns varied from the fund's average return over a particular period. For example, if a fund had an average return of 5%, and its volatility was 15, this would mean that the range of its returns over the period had swung between +20% and -10%.
9.77
Tracking error
?This measures the standard deviation of a fund's excess returns over the returns of an index or benchmark portfolio. As such, it can be an indication of 'riskiness' in the manager's investment style. A Tracking Error below 2 suggests a passive approach. At 3 and above the the manager will be deploying a more active investment style.
4.22
Information ratio
?This is a useful risk-adjusted measure of actively managed fund performance. It is calculated by deducting the returns of the fund's benchmark from the fund's overall returns, then dividing the result by its tracking error. The higher the Information Ratio the better. It is generally considered that a figure of 0.5 reflects a good performance, 0.75 very good, and 1.00 outstanding.
0.11
R-Squared
?An indication of how closely correlated a fund is to an index or a benchmark. Values for R-Squared range between 0 and 1, with 0 indicating no correlation at all and 1 showing a perfect match. Values upwards of 0.7 suggest that the fund's behaviour is increasingly linked to its benchmark.
0.83
Price movement
52 week high441
52 week low393.4
Current bid price429
Current offer price429.6
Current mid price429.5
Region
1UK88.7%
2USA3.9%
3Netherlands2.7%
4Germany2.2%
5Switzerland2%
6Hong Kong0.5%
Industry sector
1Financials26.39%
2Consumer Goods21.53%
3Consumer Services13.07%
4Industrials9.47%
5Oil & Gas9.23%
6Utilities6.31%
7Telecommunications6.28%
8Health Care5.83%
9Basic Materials5.38%
Asset type
1UK Equities88.7%
2US Equities3.9%
3Dutch Equities2.7%
4German Equities2.2%
5Swiss Equities2%
6Hong Kong Equities0.5%
Individual holdings
1ROYAL DUTCH SHELL5.8%
2HSBC HOLDINGS PLC4.8%
3BRITISH AMERICAN TOBACCO PLC4.6%
4DIAGEO PLC3.2%
5BP PLC3%
6PRUDENTIAL PLC2.7%
7UNILEVER2.7%
8LLOYDS BANKING GROUP PLC2.6%
9VODAFONE GROUP2.6%
Management
Fund manager group
Janus Henderson Investors
Fund manager company
Henderson Global Investors Ltd
Fund type
Investment Trust
Fund objective
The Company’s objective is to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange. The Board continues to recognise the importance of dividend income to shareholders.
Benchmark
  • Morningstar Investment Trust UK Growth & Income
Investment style
No data available.
Investment method
No data available.
Fund manager
NameSinceBiography
Job Curtis01/01/1991Job Curtis joined Henderson in 1992 following Henderson’s acquisition of Touche Remnant and has more than 30 years of investment management experience. Job started at Touche Remnant in 1987 as a Unit Trust and Investment Trust Manager, he was then appointed Portfolio Manager of the City of London Investment Trust in 1991. Prior to joining Touche Remnant, he was an assistant fund manager at Cornhill Insurance (1985-1987), and a graduate trainee at Grieveson Grant stockbrokers (1983-1985). He has managed investment trusts for the past 27 years. Job has a MA in Philosophy, Politics and Economics from Oxford University and is an Associate Member of the Society of Investment Professionals (ASIP).
Compliance
AIC Member
Domicile
No data available.
Fund for sale in
United Kingdom
The City of London Investment Trust 4.2%Cum 1St Prf Stk
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price87.96
CurrencyGBP
Price updated14/12/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi code01JN
The City of London Investment Trust 4.2%Non-Cum 2Nd Prf Stk 1
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price95
CurrencyGBX
Price updated14/12/2017
TypeIncome
Institutional or retail classRetail
Domicile-
Citi code01JO
The City of London Investment Trust NAV
Initial charge-
Annual charge0.45%
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)0.45%
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price426.1
CurrencyGBX
Price updated13/12/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeTU13
The City of London Investment Trust Ord
Initial charge-
Annual charge-
Min single investment£0
Min regular saving£0
Available in ISANo
Ongoing charge (OCF)-
Total expense ratio (TER)-
Bid price-
Offer price-
Mid price428.8
CurrencyGBX
Price updated13/12/2017
TypeAccumulation
Institutional or retail classRetail
Domicile-
Citi codeNJFD
Data provided by

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