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