City of London Inv't Trust underperforms market, outperforms peers in H1

(Sharecast News) - City of London Investment Trust's first-half results showed that the fund underperformed the wider market over the six months to 31 December but outperformed peers, as the company lifted its dividend. The company, which is primarily invested in the London stock market, said its net asset value per share rose to 518.3p from 472.5p six months earlier, while its share price premium narrowed to 1.9% (528p) from 3.2% (487.5p).

The NAV total return performance over the half was 11.9%, while its share price gained 10.6%, slightly below the 13.7% return for the FTSE All-Share Index.

However, that was still ahead of the AIC and the IA UK Equity Income sector averages of 7.8% and 8.6%, respectively, the company pointed out.

Earnings per share rose 5.5% to 8.85p, compared with the previous year, with the banking sector being the biggest contributor to dividend growth across the portfolio.

Financials make up around 35% of the fund's portfolio excluding cash, with HSBC, NatWest and Lloyds among its seven largest investments by the end of 2025.

Dividends per share increased to 10.8p for the half - comprising two 5.4p interim dividends - up from 10.5p for the year before.

"The company's diverse portfolio, strong cash flow and revenue reserve give the board confidence that, in line with its objective to provide long-term income and capital growth, it will be able to increase the total annual dividend for the 60th consecutive year," said chair Laurie Magnus.

CTY shares were up 0.9% at 585p by 1038 GMT.