Factsheet: City of London Ord

UK Equity Income

Rated Fund 2015-2018. A dependable 'dividend hero'

City of London has a formidable reputation as an income-producing investment trust, becoming one of just three to reach the milestone of 50 consecutive years of rising dividends in March 2016.Job Curtis has run the trust since 1991. He manages it conservatively, focusing on high-yielding, cash-generative businesses.It has a good yield of 3.9 per cent and pays a quarterly dividend. It is one of the largest of the UK equity income trusts, with one of the lowest ongoing charge ratios of 0.42 per cent.Head of value and income at Janus Henderson Investors, Curtis is a value investor who looks for companies that are undervalued on a medium-term basis that he can invest in over the long term. He has, however, been focusing on overseas earners as opposed to UK domestic names, despite their valuations being higher, given what he views as an unprecedented level of economic uncertainty in the UK.Around 69 per cent of the portfolio is invested in UK blue-chip companies, typically businesses operating globally and investing in economies likely to grow faster than the UK. A further 19 per cent is in medium-sized UK companies and the remaining 12 per cent is in companies listed overseas.The portfolio is well-diversified with more than 100 holdings. The manager likes to run his winners so portfolio turn-over is low.Shares in the trust typically trade at a small premium to net asset value. Over the past three years their widest discount to NAV was 2.5 per cent (in March 2016) and loftiest premium 4.6 per cent (in June of the same year).

Narrative and ratings content all as of 01 January 2018.

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Name
City of London Ord
Manager
Janus Henderson Investors Ltd
Type
Closed Ended Investment Company
ISIN
GB0001990497
Sector
UK Equity Income
Launched
01/01/1891
OCF
0.42 %
Risk Rating
4
3 Year Sharpe
0.61
3 Year Alpha
0.06
Yield
4.1 %
Benchmark
AIC UK Growth&Inc Sec Wgt NAV TR
Fund Size
£ 1.54 billion
NAV
432
Gearing
108
Discount Premium
2
The prime objective is to provide long-term income and capital growth, principally by investing in UK equities. The Board continues to recognise the importance of dividend income to shareholders.
Holding %
British American Tobacco PLC 4.74 %
HSBC Holdings PLC 4.70 %
Royal Dutch Shell PLC B 3.35 %
Diageo PLC 3.27 %
BP PLC 3.11 %
Vodafone Group PLC 2.81 %
Prudential PLC 2.69 %
Lloyds Banking Group PLC 2.55 %
Royal Dutch Shell PLC Class A 2.54 %
Unilever PLC 2.51 %
Region %
United Kingdom 87.17 %
Eurozone 6.14 %
Sector %
Financial Services 20.20 %
Consumer Defensive 16.89 %
Consumer Cyclical 15.82 %
Energy 9.16 %
Communication Services 6.80 %
Basic materials 6.64 %
Industrials 6.53 %
Utilities 5.66 %
Healthcare 5.48 %
Name
Janus Henderson Investors Ltd
Address
EC2M 3AE, London, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Job Curtis
Joined 07/01/1991

Job Curtis joined Henderson Global Investors in 1992 following Henderson’s acquisition of Touche Remnant. Henderson Global Investors merged with Janus Capital Group in May 2017. 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). Job has a MA in Philosophy, Politics and Economics from Oxford University and is an Associate Member of the Society of Investment Professionals (ASIP).

Data provided by Morningstar.

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