City of London ups dividend 2.2% even as performance slips

Fri, 18th Sep 2020

Stock picker City of London Investment Trust raised its dividend despite it posting a negative annual performance pinned on the Covid-19 crisis. The company declared full-year dividends of 19p per share, up 2.2% on-year. Its net asset value per share fell 14.6%, compared to a 13.0% fall in the FTSE All-Share Index and a 14.3% fall in the AIC UK Equity Income sector. 'Looking forward, there are an unusually large number of uncertainties, which mainly relate to Covid-19,' chairman Philip Remnant said. Remnant said it was possible there could be a second wave of infections during the autumn and winter, though he added that governments would likely react with local rather than nationwide lockdowns. 'Alternatively, it may be that the worst of the virus has been seen and there are strong hopes for an effective vaccine in 2021,' he said. 'The policy response to the lockdown has been extraordinary, but it is not clear what will be the long-term effect of the build up of government debt or how the central banks will ever reduce their stock of government bonds.' 'Another major uncertainty remains the future trading relationship between the UK and the European Union, which is scheduled to have been agreed by the end of 2020.' At 1:26pm: (LON:CTY) City Of London Investment Trust PLC share price was -0.25p at 321.75p Story provided by StockMarketWire.com

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