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 Trust has a proven track record in generating long term, sustainable, quarterly income, enjoying 46 years of rising annual dividends. Future dividends are supported by a large revenue reserve.
• The Trust has, at 0.45%, one of the lowest Ongoing Charges* in the UK Growth and Income sector (Annual Report and Accounts 2012). Please remember that past performance is not a guide to future performance.
• The Fund Manager, Job Curtis, received a special award from Investment Week Magazine for the consistency of performance from the Trust over the last 21 years.

*The total expenses for the financial year (excluding performance fee), divided by the average daily net assets, multiplied by 100.

• 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 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%.

Job Curtis
April 2013