Ideal for those wanting predictability of income and returns, and a suitable investment for children or grandchildren.
It aims for long-term growth in income and capital from a broad spread of large, blue chip, UK listed companies, medium sized companies, and has scope to invest in overseas stocks. The Trust has raised its dividends for 46 years - an industry record.
The UK equity market produced a positive total return of 0.6% as measured by the FTSE All-Share Index. This was the eleventh month in a row that the market has produced a positive return. UK gross domestic product (GDP) growth for the first quarter of 2013 was reported to be 0.3%, which was slightly better than expectations. Continuing investor concerns about slowing Chinese economic growth led to marked underperformance of the mining sector where City of London is underweight. In contrast, the Real Estate Investment Trust sector, where City of London is overweight, outperformed as investors favoured companies offering visible and sustainable income.
The holding in RSA was sold after disappointing results and a dividend cut. The Trust maintains significant exposure to the non-life insurance sector through Amlin, Hiscox, Munich Re and Direct Line which have performed well. Additions were made to the holding in BP which is benefiting from growing production from some new higher margin oil fields and was bought on a dividend yield of 5%.