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 45 years - an industry record.

• The Trust has a proven track record in generating long term, sustainable, quarterly income, enjoying 45 years of rising annual dividends. Future dividends are supported by a large revenue reserve.
• The Trust has, at 0.44%, one of the lowest Total Expense Ratios* in the UK Growth and Income sector (Annual Report and Accounts 2011). Please remember that past performance is not a guide to future performance.
• The Fund Manager, Job Curtis, recently received a special award from Investment Week Magazine for the consistency of performance from the Trust over the last 20 years.

*The total of the management fees and other administrative expenses (including expenses charged to capital) as a percentage of the average shareholders' funds at the beginning and end of the year.

• The trust invests 80% of its shares in UK listed companies. When a trust is a specialist country-specific or geographic regional fund, the investment carries greater risk than a more internationally diversified portfolio.
• The investor needs to be aware of exchange rates. Not all the investments in this portfolio are made in Sterling, so exchange rates could affect the value of and income from your investment. Full details of risks.

The UK equity market, as measured by the FTSE 350 Index, fell by 0.6%. A disappointing UK gross domestic product (GDP) growth figure of -0.2% was announced for the first quarter of 2012. European economies were generally weak, but the US and emerging markets produced much better growth. City of London’s portfolio is biased towards companies that are operating in global markets rather than those focused on the UK. Two notable outperformers from the Trust’s top ten holdings were Diageo (alcoholic beverages) and Unilever (food producers). Both these companies are benefiting from exposure to fast-growing emerging markets.

No new holdings were bought, but significant additions were made to the holdings in J Sainsbury, the food retailer, and Merck, the US pharmaceutical company.

Job Curtis
April 2012