City of London ahead of the market and its peer group

City of London’s interim results for the six months ended 31 December 2014 show it generating a total return on net assets of 2.1% and a return to shareholders of 1.6%, better than the FTSE All-Share index which returned -0.4%, the average for its AIC peer group, 1.2%, and the average UK Equity Income OEIC, 1.6%. Below average exposure to the oil and mining sectors helped the fund outperform.  Among the biggest stock contributors held in the portfolio were Phoenix (in the life assurance sector), Croda (in chemicals) and Land Securities (in Real Estate Investment Trusts).

City of London’s earnings per share increased by 13.6%, partly reflecting the underlying dividend growth from investments but also the rise in the US dollar compared with sterling of 9.7% over the six months, enhancing the sterling value of dividend payments from those UK companies that declare their dividends in US dollars. City of London has declared two interim dividends of 3.75p each.  The quarterly rate will be reviewed by the Board before the third interim is declared in April 2015.

CTY : City of London ahead of the market and its peer group