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seeks to provide long-term growth in income and capital, principally by investment in equities listed on the London Stock Exchange.
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cty 2 mths reserve 4pc
others 10 mths reserve
others 6pc divi
Would any expert on here have time to give overview, there is an article today showing reserve and divi of favourites
https://www.thisismoney.co.uk/money/investing/article-10172107/The-trusts-raising-dividends-firms-cut-40.html
morgan
aberdeen
Hi HINDY, yep, me too. I sold at £4.00 late last week for exactly the same reason. I've had this trust for a few years myself but you're absolutely right, capital gains haven't been particularly great. It was intended to be one of my conservative trusts to balance a slightly more & volatile portfolio but the SP never seems to be able to break past that £4.00 per share resistance barrier for very long. Shame as I did have higher hopes for it this year but I'm simply not confident of it's ability to march on.
after 5 years with this share i have sold,yes the divis were good,but capital growth was abysmal.
Just thought I would add this as something else on the subject hat might be interesting:
Paragraphs taken from latest report on CTY by Kepler:
"Over the past decade, City of London has nearly doubled its share count through being a consistent issuer of shares at a small premium to NAV. However, the board and Job recognize that in issuing shares at a premium, they also have an implicit (and certainly not guaranteed) obligation to buy shares back if a discount to NAV materialises. The board’s overall aim is that the share price “reflect[s] closely its underlying asset value” and aims to reduce discount volatility. While it does not believe it to be in shareholders’ interests to have a specific policy on issuance or buybacks, the board intends to consider issuance or buybacks “within a narrow band to NAV”.
... ... Share issuance activity at a premium and buying back at a discount is additive to existing shareholders. Depending on the year and level of activity, it makes a meaningful contribution to returns over and above the benchmark. Clearly, these sorts of activity cannot be relied on as a contributor to returns, but the graph below illustrates that the board’s issuance activities have consistently lessened the impact of City of London’s already attractive management fee structure "
Maybe my response was a bit simplistic and I do not know if it is actually their policy. But this is the way that Investment Trusts seem to work. When the share price exceeds NAV it is a good time for the managers to sell some more shares at price higher than NAV without diluting existing share holder holdings [based on NAV] and increase the size of the Trust. It also means that in any downturn the reduction in the share price paid by the investors is limited to the underlying investments generally and not to an excessive uplift caused by being a popular share.
Hi
Bought into CTY last year on mu stockbroker's recommendation. Good / consistent dividend policy and retains earnings to enable dividend to be payed in 'bad' years. Wasn't aware of their policy of 'managing' the share price but personally I don't care with their dividend policy as it is.
Sorry I should have added. It is a question of supply and demand. The more in demand, the share price rises, so the continued issuance of new shares indicates that this particular share [CTY] is in high demand at the moment.
It is because the shares are in demand the share price is greater than the NAV [the actual value of the underlying shares]. I understand that the Trust Managers do not want the share price to become too excessive in relation to the NAV so they issue further shares if the price rises too much; conversely they buy back shares if the share price becomes lower then the NAV in order to try and keep the share price close to the NAV.
yes it is a pretty quite board ,pity as it is regularly recommended trust with a good yeild
Anyone care to comment?
I've been looking at these for some time as an alternative to buying individual shares. Why do they issue new shares so often though?
Amazing number of buys going through today and that is after the dividends have gone through
considering doing the same
Yep, tuck it away in the ISA, compound and sleep well.
Lindsell Train looks reasonable value too, massive premium all but disappeared.
I too will be drip feeding the majority of my income and my salary in to the CTY share price. At the low 300s, this is a great investment fund to buy. With a 6.2% annual dividend yield and a potential 25% upside in longer term capital growth, this is a must buy and hold. In the new UK tax year, from 6th April, I will be using my 20,000 GBP ISA allowance in a Stocks and Shares ISA to increase my holding on CTY. This is a quality/premium company based on strong fundamentals. GLA!
I’m not sure where we are heading but I’m going to keep drip feeing into this one. One day things will be normal again.
Bought in here, economy looking strong. Stock never let's you down.
I sold loads of this to buy Vela and Blu ! Hope they come good so I can go back to a life of normality with divi payers ! This share has never let me down !
Today is Ex-dividend date of 4.75p for CTY, paid on 31/5/19. If held at 4.75p per quarter, that’s 19p FY = 4.5% dividend at current price (422p).
Got sick and tired with BRCI, and moved here. Bought 4000 this afternoon at 427.5p
There is a detailed blog post on On-Line AGMs and City of London IT available here: hTTps://www.sharesoc.org/blog/company-news/line-agms-city-london/
With the UK and the rest of the world been through a torrid time over the last 8years or so, but we have rebounded and are on another growth story. City of London has gained since 1999 till today in relative terms, 60.6%. I added here back a year ago, and intend in doubling up over the next fortnight... I own BRCI, ALAI, JEMI, MUT, MYI, MRCH, Newton Global Income W. Maybe tempted to invest in SOI and PLI all depending on the American interest rate debate, as it is going to have a big knock on effect on emerging markets growth.
Going to buy more here starting early next week, drip feeding. UK looks a sorry mess, but if CTY goes to south of 350p it'll be good to pick up some more.
you know we love this share! Hope your investments are going well and your running around as usual all over the country!buy anything new lately?atb