City of London Investment Trust increases 2013 full year dividend by 4.1%

DividendMax Ltd.

City of London Investment Trust increases 2013 full year dividend by 4.1%

Net asset value total return of 23.8%.

● Dividend per share up 4.1%. The 47th consecutive annual increase.

● Ongoing charge of 0.44%

 

30 June 2013

30 June 2012

 

Dividends per ordinary share ('DPS')

+4.1%

+4.1%

 

Revenue return per ordinary share ('EPS')

+8.7%

+6.7%

 

 

 

 

 

Total Returns:

 

 

 

Net asset value per ordinary share ('NAV') #

+23.8%

+2.3%

 

UK Growth & Income sector NAV (size weighted average) (benchmark) #

+26.0%

+1.2%

 

FTSE All-Share Index †

+17.9%

(3.1%)

Ordinary share price #

+21.5%

+2.9%

 

 

Chairman's Statement

I am pleased to report another year of positive progress. City of London produced a net asset value total return of 23.8% for the year ended 30 June 2013. Whilst this slightly lagged the average for the UK Growth & Income investment trust sector, it was well ahead of the FTSE All-Share Index. Indeed, over the longer term we have significantly outperformed the wider market in each of the last three, five and ten year periods. The dividend was increased for the 47th consecutive year, by 4.1%, and our ongoing charge remains, at 0.44%, the lowest in the sector.

The Markets

Equities proved consistently resilient through the year until a correction in June followed positive returns in each of the preceding 11 months. Overall, the FTSE All-Share Index total return rose 17.9% over the 12 months. In the UK, base rates remained at 0.5% and growth returned to the economy underpinned by a strengthening housing market. Overseas, growth picked up in the US but Europe and emerging markets were mixed. Equity markets have rerated upwards, with share prices outpacing growth in companies' earnings per share and dividends.

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