City of London Investment Trust (CTY) increased its dividend for the 45th year in a row in respect of the year ended 30 June, as it saw its net asset value (NAV) total return of 29.2% exceeded the 26.5% return in 2010.

"The majority of the return was achieved in the first half of the period with the euro sovereign debt crisis and concerns about UK economic growth overshadowing the equity market in the second half."

The total dividend per share reached 13.2p, a 4.3% increase on last year. This represents a 41% increase over the last five years.

Earnings per share rose by 10.4% to 13.17p helped mainly by dividends from companies held in the portfolio. Investment income rose 16.9% from £25.81m to £30.18m.

The total expense ratio (investment management fees and non-interest expenses as a percentage of shareholder funds) was 0.44%, "among the lowest in the sector", chairman Simon de Zoete claimed.

The firm said that while the UK - along with most developed economies - is seeing subdued economic growth, "emerging economies should enjoy relatively rapid growth with portions of the vast population of countries, such as China and India, in the process of moving out of poverty and into a modest degree of affluence." The nine largest holdings in CTY's portfolio are multinationals (including British American Tobacco and Diageo), the firm boasted, with good exposure to fast-growing markets.

By 13:35, shares were trading 1.87% higher at 267p.

BC

Related share prices
City of London Inv Trust (CTY) share price