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City of London Investment Trust PLC on Wednesday said its net asset value declined with return underperforming the benchmark, but increased its total dividend for the year. The FTSE 250 listing said its NAV at June 30 was 385.2 pence per share, down from 390.9p on the same day in 2022. City of London IT shares were up 0.9% at 404.20p in London around noon on Wednesday. Total return for the year ended June 30 was positive 4.5%, down from 7.5% the prior year and beaten by the FTSE All-Share Index, which delivered a positive 7.9% return for the period. The trust’s total dividend for the year was 20.1p per share, up from 19.6p the year before. Chair Laurie Magnus, however, said the trust’s performance in financial 2023 ‘should be considered in the light of its longer-term outperformance and its consistent 57-year record of annual dividend increases.’ ‘Although this most recent underperformance is disappointing, City of London’s portfolio is managed for the long term and its NAV total return has exceeded the FTSE All-Share Index over three, five and 10 years,’ he added. Magnus also noted that the macroeconomic backdrop had been ‘challenging’ throughout the year, with ‘persistent’ UK inflation and ‘the war in Ukraine and tensions in Asia causing fluctuations in the cost of raw materials and energy.’ Looking forward, he claimed that ‘prospects for the global economy remain very uncertain.’ However: ‘Our portfolio has, at its core, good quality and cash generative companies that are well placed to deliver reliable and competitive returns.’ Copyright 2023 Alliance News Ltd. All Rights Reserved.
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