City Of London IT raises dividend as return matches benchmark

City Of London Investment Trust PLC on Wednesday reported an increased net asset value, and boasted a "record" 60th consecutive dividend increase.

The FTSE 250-listed investment firm, which targets long-term growth through equities listed on the London Stock Exchange, reported an NAV per share of 553.4 pence as of June 30, up from 472.5p one year prior.

Shares in City of London were up 0.6% at 579.50p on Wednesday in London.

The trust's NAV total return was plus 21.9% for the year ended June 30, the same as the FTSE All-Share Index. For the previous year, its total return was plus 16.8%, beating the benchmark's return of plus 11.2%.

It also declared a 22.15p dividend for the year, up 4.0% from 21.30p the year before and marking its 60th consecutive annual raise, while revenue earnings per share increased 4.2% to 22.5p from 21.6p.

"This continues City of London's unique leadership in delivering the longest record of consecutive annual dividend increases in the investment trust sector," commented Chair Laurie Magnus. "The board is determined to maintain this leadership position over the years ahead."

He said the trust has achieved this record "by investing predominantly in the UK stock market and by harnessing the benefits of the investment trust structure, including the facility to use revenue reserves and to raise low-cost long-term debt...[and] through the exemplary custodianship of the fund management team, led by Job Curtis, who has consistently steered the portfolio through numerous unpredictable market challenges over a tenure of 35 years with skill, humility and dedicated commitment."

Magnus also commented: "Despite volatile global politics, stock markets produced good returns during the twelve months. Excitement about the potential for artificial intelligence ('AI') shifted from the large technology companies that will provide AI to those benefiting from the huge capital expenditure in building out the infrastructure, such as semi-conductor manufacturers...Equity markets were also helped by a loosening of monetary policy in the second half of 2025."

Looking ahead, the chair noted that oil and natural gas prices "continue to have an important influence on global inflation." As for AI, he said: "The huge amount being spent on rolling out the infrastructure for AI suggests it will be a groundbreaking new technology. While there will be significant medium-term productivity benefits for the world economy, there will also be disruption for some industries and related labour markets.

"The returns on the vast sums being invested could also be disappointing, with adverse consequences for the highly valued stocks that have capitalised on the speculation associated with the AI 'revolution'. In addition, this capital expenditure is having a short-term upward impact on inflation, with price rises in commodities and components, such as copper and semiconductors, even if the adoption of AI will ultimately be deflationary."

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