FUND FOCUS

City of London Investment Trust

The trust’s biggest holdings include HSBC
The trust’s biggest holdings include HSBC
KIRSTY WIGGLESWORTH

What it does
The City of London Investment Trust looks for companies that are undervalued and worth investing in for the long term. The portfolio is a broad mix of stocks, with about 100 holdings.

What it invests in
The trust’s biggest holding is Royal Dutch Shell (7%), followed by HSBC (4.5%) and BP (3.9%). The trust is 90% invested in UK equities.

Performance
Although the trust lost 2.5% last year, that still beat the 6.3% loss across the UK equity income sector. Over five years, the total return was 35.7%, against 25.7% for its benchmark. Its management charge is one of the lowest around, which it cut to 0.33% earlier this year.

What the manager says
“Our portfolio is predominantly invested in large UK