27th Feb 2026 12:04
(Alliance News) - City Of London Investment Trust PLC on Friday reported that it lagged slightly behind its benchmark but outperformed the sector with its investment decisions in the first half of the financial year.
The trust, which invests in London-listed companies, said its net asset value per share at the end of December was 518.3 pence, up 9.7% from 472.5 pence six months prior and 22% from 425.1 pence one year prior.
The NAV total return was 11.9% for the six months ended December 31. The company noted that this was behind the FTSE All-Share Index, which returned 13.7%, "but ahead of the Association of Investment Companies and Investment Association UK Equity Income sector averages, respectively 7.8% and 8.6%".
The trust said its share price was trading at a 1.9% premium to the NAV at the end of 2025, and that earnings per share increased by 5.5% in a year to 8.85 pence from 8.39 pence, mainly thanks to dividends from the banking sector.
The firm added that 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", but it has yet to review the level of the quarterly dividend.
In the six months to December, dividends per share grew by 2.9% to 10.8 pence from 10.5 pence a year prior.
Chair Laurie Magnus said in its outlook that "US economic growth, despite the uncertainties generated from the White House, remains positive as a result of expected productivity gains from artificial intelligence. It should be noted, however, that the scale of its fiscal stimulus would not be sustainable at an equivalent level in most other countries."
"UK growth is likely to be more pedestrian, despite healthy corporate balance sheets and a high personal savings ratio...UK equities performed well in 2025, with their relatively cheap values attracting global investors, including takeover bids from overseas companies and private equity firms...UK equities continue to offer good value, with attractive dividend yields compared to opportunities in other stock markets," he added.
City Of London Investment Trust's shares were up 0.5% at 582.96 pence each at midday on Friday in London.
By Martin Miraglia, Alliance News reporter
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