The City of
London
Investment
Trust plc
Annual Report 2026
JHI9224/2026The City of London Investment Trust plc – Annual Report 2026
The City of London Investment Trust plc
Registered as an investment company in England and Wales
Registration Number: 34871
Registered Office: 201 Bishopsgate, London EC2M 3AE
ISIN number/SEDOL: Ordinary Shares: GB0001990497/0199049
London Stock Exchange (TIDM) Code: CTY
Global Intermediary Identification Number (GIIN): S55HF7.99999.SL.826
Legal Entity Identifier (LEI): 213800F3NOTF47H6AO55
Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
www.cityinvestmenttrust.com
JHI9224/2026Designed and typeset by 2112 Communications, London. Printed by Paragon.
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60
The City of London Investment Trust plc Annual Report 2021
Strategic Report
Performance 2-5
The City of London Story 6-7
Chairman’s Statement 8-11
Portfolio Snapshot 12-13
Fund Managers’ Report 14-19
Portfolio Information 20-21
Business Review 22-37
Governance
Directors and Fund Managers 39-40
Directors’ Report 41-43
Corporate Governance Report 44-50
Audit and Risk Committee Report 51-54
Nominations Committee Report 55-56
Directors’ Remuneration Report 57-60
Statement of Directors’ Responsibilities 61
Independent Auditor’s Report 62-68
Financial Statements
Income Statement 70
Statement of Changes in Equity 71
Statement of Financial Position 72
Notes to the Financial Statements 73-88
Additional Information
Securities Financing Transactions 90-92
Alternative Performance Measures 93-94
Glossary 95
General Shareholder Information 96
Financial Calendar 97
Notice of AGM
Notice of Annual General Meeting 98-106
Corporate Information 107
For the methodology behind AIC Dividend Hero and AIC ISA Millionaire, see the AIC website at www.theaic.co.uk
Corporate Information
Registered Office
201 Bishopsgate
London EC2M 3AE
Service Providers
Alternative Investment Fund Manager
Janus Henderson Fund Management UK Limited
201 Bishopsgate
London EC2M 3AE
Corporate Secretary
Janus Henderson Secretarial Services UK Limited
201 Bishopsgate
London EC2M 3AE
Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
Depositary and Custodian
HSBC Bank plc
8 Canada Square
London E14 5HQ
Stockbroker
Cavendish Capital Markets Limited
1 Bartholomew Close
London EC1A 7BL
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone: 0370 889 3296
Email: WebCorres@computershare.co.uk
Investors with share certificates (i.e. not those with
ashareplan or ISA) can check their holding at
www.investorcentre.co.uk
Independent Auditor
Ernst & Young LLP
25 Churchill Place
London E14 5EY
Information Sources
For more information about The City of London Investment
Trustplc, visit the website at www.cityinvestmenttrust.com
This includes factsheets, interviews, current information on
the Company and up-to-date share price and net asset
valuedetails.
To sign up for expert insights about investment trusts,
updates from our fund managers as well as AGMs and
TrustTV episodes, please visit this page:
www.janushenderson.com/en-gb/investor/subscriptions
Follow the Janus Henderson Investment
Trusts on LinkedIn –
Janus Henderson Investment Trusts, UK
Investing
Shares can be purchased in the market via a stockbroker
orthrough share dealing platforms. They can also be held
through share plans, ISAs or pensions and links to various
providers are included on the website.
Potential investors are reminded that the value of investments
and the income from them may go down as well as up and
investors maynot get back the full amount invested. Tax
benefits may varyas a result of statutory changes and their
value will depend onindividual circumstances.
107
The City of London Investment Trust plc Annual Report 2026The City of London Investment Trust plc Annual Report 2021
Strategic
Report
Objective
The Company’s objective is to provide
long-term growth in income and
capital, principally by investment in
equities listed on the London Stock
Exchange. The Board fully recognises
the importance of dividend income
toshareholders.
1
Performance at 30 June
Total Return Performance for year to 30June
2026
%
2025
%
NAV
1,6
21.9 16.8
Share price
2,6
21.0 21.8
FTSE All-Share Index (Benchmark) 21.9 11.2
AIC UK Equity Income sector
3
13.7 12.6
IA UK Equity Income OEIC sector 15.1 10.5
Total Return Performance for 10 years to 30June 2026 (rebased to 100)
Share Price
NAV (debt at fair value)
FTSE All-Share Index
AIC UK Equity Income sector
4
IA UK Equity Income OEIC sector
80
100
120
140
160
180
200
220
240
260
2016 2017 2021 2022 2026202520242023202020192018
%
Dividend Yields
0
1
2
3
4
5
6
%
2026 2025
City of London IA UK Equity
Income OEIC sector
AIC UK Equity
Income sector
FTSE All-Share Index
(Benchmark)
4.4
3.1
3.5
4.1
3.93.93.9
4.1
The City of London Investment Trust plc Annual Report 2026
2
Performance at 30 June
City of London 10 Years of Dividend Growth (rebased to 100)
100
110
120
130
140
150
160
2016 2017 2021 2022
2026
202520242023202020192018
City of London Dividend Growth
RPI
CPI
%
City of London 20 Years of Dividend Growth (rebased to 100)
100
125
150
175
200
225
250
2006 2008 2016 2018
2026
202420222020201420122010
City of London Dividend Growth
RPI
CPI
%
City of London 60 Years of Dividend Growth (rebased to 100)
0
2,000
4,000
6,000
8,000
10,000
12,000
1966 1970 1986 1990
2026
20222018201420101994 1998 2002 2006198219781974
City of London Dividend Growth
RPI
%
Note: The Consumer Prices Index (“CPI”) was first introduced in the UK as an official measure in 1996 and is therefore not available for 60 years
The City of London Investment Trust plc Annual Report 2026
3
Performance at 30June
NAV per share
6
2026 2025
553.4p 472.5p
NAV per share (debt at fair value)
6
2026 2025
558.9p 478.1p
Share price
2026 2025
566.0p 487.5p
Revenue earnings per share
2026 2025
22.5p 21.6p
Ongoing charge for the year
5,6
2026 2025
0.36% 0.36%
Premium
6
2026 2025
2.3% 3.2%
Premium (debt at fair value)
6
2026 2025
1.3% 2.0%
Gearing at year end
6
2026 2025
4.7% 5.3%
Dividends per share
2026 2025
22.15p 21.30p
Revenue reserve per share
6
2026 2025
10.2p 9.9p
1 Net asset value (“NAV”) per ordinary share total return with debt at fair value (including dividends reinvested)
2 Share price total return using mid-market closing price
3 Association of Investment Companies (“AIC”) UK Equity Income sector size-weighted average NAV total return (shareholders’ funds)
4 AIC UK Equity Income sector NAV total return calculated on a simple average basis
5 Calculated using the methodology prescribed by the AIC
6 Alternative Performance Measure
Sources: Morningstar Direct, Janus Henderson, LSEG Datastream
A glossary of terms and an explanation of Alternative Performance Measures are on pages 93 to 95
Source: Janus Henderson
Financials 36.0%
Consumer Staples 17.2%
Health Care 8.3%
Energy 7.7%
Industrials 7.6%
Real Estate 5.8%
Utilities 4.7%
Basic Materials 4.5%
Consumer Discretionary 3.2%
Technology 2.6%
Telecommunications 2.4%
Sector Exposure
As a percentage of the investment portfolio excluding cash:
The City of London Investment Trust plc Annual Report 2026
4
1 NAV per share total return with debt at fair value (including dividends reinvested)
2 AIC UK Equity Income sector size-weighted average NAV total return (shareholders’ funds)
3 Share price total return using mid-market closing price
4 NAV per ordinary share is calculated after deducting all prior charges, including the preference and preferred ordinary stocks, at fair value
5 Rebased to 100 at 30 June 2016
Sources: Morningstar Direct, Janus Henderson, LSEG Datastream
A glossary of terms and Alternative Performance Measures are on pages 93 to 95
NAV Total Return Performance to 30 June 2026
1 year
%
3 years
%
5 years
%
10 years
%
NAV per ordinary share
1
21.9 64.5 84.8 136.9
FTSE All-Share Index 21.9 53.1 67.9 129.8
AIC UK Equity Income sector average
2
13.7 42.1 52.6 120.4
IA UK Equity Income OEIC sector average 15.1 45.8 50.8 101.5
Share Price Performance Total Return to 30 June 2026
Value of £1,000 with net income reinvested
1 year
£
3 years
£
5 years
£
10 years
£
Share price per ordinary share
3
1,209.8 1,640.4 1,839.2 2,384.2
FTSE All-Share Index 1,218.9 1,530.9 1,678.8 2,297.6
AIC UK Equity Income sector average 1,145.2 1,441.9 1,531.8 2,291.2
IA UK Equity Income OEIC sector average 1,151.0 1,457.6 1,507.8 2,015.2
Ten-Year NAV and Dividend Record
Year ended
Net asset value per
ordinary share
(p)
4
Net asset value per
ordinary share
(rebased)
5
Net dividends per
ordinary share
(p)
Net dividends per
ordinary share
(rebased)
5
30 June 2016 378.6 100.0 15.90 100.0
30 June 2017 416.1 109.9 16.70 105.0
30 June 2018 424.3 112.1 17.70 111.3
30 June 2019 416.3 110.0 18.60 117.0
30 June 2020 338.7 89.5 19.00 119.5
30 June 2021 384.1 101.5 19.10 120.1
30 June 2022 393.5 103.9 19.60 123.3
30 June 2023 391.2 103.3 20.10 126.4
30 June 2024 429.6 113.5 20.60 129.6
30 June 2025 478.1 126.3 21.30 134.0
30 June 2026 558.9 147.6 22.15 139.3
Historical dividend
0
3
6
9
12
15
18
21
24
2017 2018 2020 202120192016
pence per share
2022 2023 2025 20262024
19.6
20.1
20.6
21.3
22.2
15.9
16.7
17.7
18.6
19.0
19.1
Historical NAV
4
0
100
200
300
400
500
600
2017 2018 2020 202120192016
pence per share
2022 2023 2025 20262024
378.6
416.1
416.3
338.7
384.1
393.5
391.2
429.6
478.1
558.9
424.3
Performance at 30 June
The City of London Investment Trust plc Annual Report 2026
5
The City of London Story
Photo credit: Keith Osbourne
In 1932, the name was changed to The City of
London Brewery and Investment Trust Limited, parts
of the business having been sold and the proceeds
invested in securities according to investment trust
principles. In 1968, the remaining part of the brewery
business was sold and the Company concentrated
exclusively on investments in securities.
In 1970, the Company appointed Touche, Remnant &
Co. as Investment Manager and in 1982 the name
was changed to TR City of London Trust PLC. In
1992, Touche, Remnant & Co. was acquired by
Henderson Administration Group plc. The name of
the Company was changed to The City of London
Investment Trust plc in October 1997.
The Company has grown significantly with a strong
performance record. Invested mainly in UK equities
with a bias towards large, multinational companies
and a conservative approach to portfolio
composition, it prioritises sustainable income and
long-term capitalgrowth.
A Brief History
The Company (or “City of London”) was formed
as The City of London Brewery Company in 1860
to acquire Calverts, a family brewing business at
Upper Thames Street in the City of London,
registering as a limited company in 1891. The
brewery had extensive interests in the licensed
premises trade.
The Company has increased its dividend every year since
1966 and this 60 year record is the longest of any
investmenttrust.
In May 2017, Henderson Group plc merged with Janus Capital
Group Inc. to become Janus Henderson Group plc.
On 30 June 2026, Janus Henderson Group completed a
take-private transaction with Trian Fund Management L.P.,
General Catalyst Group Management LLC and Qatar
Investment Authority.
City of London: 60 Years of Dividend Growth
Pence per share
0
2
4
6
8
10
12
14
16
18
20
22
24
66 70 78 82 86 90 94 98 02 06 2610 14 18 22
74
Source: Janus Henderson
Photo credit: The Brewery History Society (custodians)
The City of London Investment Trust plc Annual Report 2026
6
History of income growth
The summer of 1966 was significant for English football fans
as it was the first (and most recent) time that England’s men’s
team won the World Cup. It was also the start of City of
London’s dividend growth track record which has continued
uninterrupted for 60years.
Over that time, an initial investment of:
£1,000 in CITY OF LONDON has
yielded investors
£55,900 in gross
income, assuming that they had not
reinvested their income.
This compares to just
£3,900 earned
from a SAVINGS ACCOUNT, based on
the Bank of England base rate, or
£37,300 paid out by the UK EQUITY
MARKET, as measured by the FTSE All-Share
Index over the same period.
Cumulative income received from £1,000
initialinvestment
£
City of London
Savings Account
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
66 70 78 82 86 90 94 98 02 06 2610 14 18 22
74
Source: Janus Henderson and LSEG Datastream
£
City of London
FTSE All-Share
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
55,000
66 70 78 82 86 90 94 98 02 06 2610 14 18 22
74
Source: Janus Henderson and LSEG Datastream
Compounding income and total return
While City of London has provided investors with a growing
source of income, it has also delivered strong long-term
capital growth on a total return basis. If investors had
reinvested their dividends back into shares in the Company
over the period since 1966, an initial investment of£1,000
would be worth £1.3m today. For comparison, aninvestment
of £1,000 in the UK market over 60 years, as measured by the
Datastream UK Market Index (as data for the FTSE All-Share
Index total return only goes back to 1986), would be worth
£0.7m on a comparable total return basis. This comparison
demonstrates a significant outperformance by City of London
over the long term.
City of London total return from a £1,000
initialinvestment
£
City of London Share Price Total Return
UK Market Total Return
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
66 70 78 82 86 90 94 98 02 06 2610 14 18 22
74
£0.7m
£1.3m
Source: Janus Henderson and LSEG Datastream
Reserves
One of the main advantages of investment trusts is their ability
to retain surplus income and create revenue reserves. These
reserves can be added to in profitable years and paid out in
the leaner years, thereby smoothing the level of dividend
payments to shareholders where appropriate. The investment
process for City of London aims to avoid companies that
cannot sustain dividend payments and the diversification of
the portfolio limits the impact of any dividend cut.
Furthermore, the use of revenue reserves along with the ability
to distribute capital reserves arising from gains realised from
investments gives compelling reassurance of the sustainability
of the dividend in challenging market conditions.
City of London’s dividend growth track record and strong
reserves position should give investors comfort over the
longterm.
The City of London Story (continued)
The City of London Investment Trust plc Annual Report 2026
7
Chairman’s
Statement
Sir Laurie Magnus CBE
Chairman
“
The dividend was
increased, for the 60th
consecutive year, by 4.0%
and was fully covered by
earnings per share.
This continues City of
London’s unique
leadership in delivering
the longest record of
consecutive annual
dividend increases in the
investment trust sector.
”
8
City of London produced a net asset value (“NAV”) total return of
21.9% over the year to 30 June 2026, which was the same as
the FTSE All-Share Index total return. The Company also
exceeded the FTSE All-Share Index total return over 3, 5 and
10years.
The dividend was increased, for the 60th consecutive year,
by4.0% and was fully covered by earnings per share. This
continues City of London’s unique leadership in delivering the
longest record of consecutive annual dividend increases in the
investment trust sector. The Board is determined to maintain
thisleadership position over the years ahead.
The Markets
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.
Companies whose business models appeared to be
threatened by AI were notable underperformers, even if the
threat had not yet impacted their results.
Equity markets were also helped by a loosening of monetary
policy in the second half of 2025. The US Federal Reserve
reduced interest rates to 3.75% after announcing three 25
basis points (“bps”) cuts and the Bank of England also
reduced its rate to 3.75% after two 25 bps cuts. Following the
outbreak of armed conflict between the US and Iran at the
end of February 2026, which led to the closure of the Strait of
Hormuz and an upward spike in the oil price, interest rates
stayed on hold in the US and UK. The European Central Bank
lifted its key deposit rate, in June, by 25 bps to 2.25% as
pricing pressures increased. Equity markets initially fell on the
escalation of the conflict in the Middle East but recovered in
anticipation of a ceasefire and with the Memorandum of
Understanding signed by the US and Iran in June.
UK GDP growth was tepid during the second half of 2025, partly
because of damaging speculation, for the second consecutive
year, about tax changes in the Budget. 10-year Gilt yields rose
during the 12 months from 4.5% to a peak of 5.2% in May,
before falling to 4.8% at the end of June, with continuing doubts
in the markets about the sustainability of the UK government’s
fiscal policy. Economic growth improved marginally during the
first half of 2026, but the arrival of Andy Burnham as Prime
Minister has revived uncertainty concerning the government’s
attitude towards business and its fiscal credibility.
There was a significant number of takeover bids for UK listed
companies by overseas companies and private equity firms,
as has been the case for several years. City of London’s
portfolio benefited with the proposed acquisitions of Beazley
by Zurich Insurance, Schroders by Nuveen of the US, Tate &
Lyle by Ingredion of the US and Segro by Prologis of the US.
Performance
Earnings and Dividends
City of London’s earnings per share increased by 4.4%. The
growth in dividends from the banks sector was the most
important positive contributor for the third year in a row. Special
dividends accounted for as revenue amounted to £0.3 million,
down from £0.6 million for the previous year and reflecting the
corporate trend for effecting shareholder distributions through
share buybacks rather than dividend payments.
Expenses remained under tight control, with City of London’s
ongoing charge ratio of 0.36% remaining very competitive
compared to most other actively managed funds. The
management fee with Janus Henderson is 0.3% for net assets
up to £3.0 billion, dropping to 0.275% on any excess above
£3.0 billion. Net assets amounted to £2.85 billion as at
30 June 2026.
City of London’s annual dividend grew by 4.0%, ahead of UK
CPI inflation of 2.6%. Over ten years, City of London’s
dividend has grown by 39.3%, slightly behind UK CPI inflation
of 41.7%. The last decade has been a difficult period for real
dividend growth, adversely affected both by the widespread
cuts during the Covid pandemic and a period when, mainly
because of rising energy costs, the annual rate of inflation
exceeded 10%. Over 20 years, City of London’s dividend has
risen by 136.6%, compared to UK CPI inflation of 78.0%.
City of London’s record of 60 consecutive annual dividend
increases is the longest of any investment trust. It has been
achieved 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. It has also been achieved
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 35years with skill, humility and
dedicated commitment.
The revenue reserve increased by £3.6 million to £52.3 million,
with the revenue reserve per share rising by 3.0% to 10.2p. The
Board is firmly of the view that dividend payments should, other
than in very exceptional circumstances, be covered by revenue
alone and not be supplemented by distribution from realised
capital profits. Whilst the Company’s capital reserves arising
from gains on investments sold (which rose by £61.0 million to
£459.4 million) could help to fund dividend payments, the
Board considers that a healthy revenue reserve provides an
important backstop for dividend payments made from revenue
alone, especially during periods of dividend cuts across the
stock market, as occurred during the Covid pandemic.
NAV Total Return
City of London’s NAV total return of 21.9% for the 12 months
was the same as for the FTSE All-Share Index. Gearing, which
Chairman’s Statement
Chairman’s
Statement
The City of London Investment Trust plc Annual Report 2026
9
Chairman’s Statement (continued)
contributed positively by 0.8%, was financed mainly by
secured debt. The £30 million 2.67% secured notes (maturing
in 2046) and the £50 million 2.94% secured notes (maturing in
2049) will continue to provide low-cost debt financing over the
next 20 years for investment in equities.
Stock selection detracted relative to the FTSE All-Share Index
by 0.5%. The biggest stock detractor relative to the FTSE
All-Share Index was Rolls Royce, the aero engine manufacturer,
which pays a low level of dividend and was not held. The next
largest detractors were being underweight in HSBC, the bank,
and AstraZeneca, the pharmaceutical company. The biggest
contributor to relative performance was not holding London
Stock Exchange followed by IG, the online trading company,
and not holding Experian, the credit rating company.
As mentioned in the introduction, City of London’s NAV total
return was ahead of the FTSE All-Share Index over 3, 5 and
10 years. City of London was also ahead of the AIC UK Equity
Income and IA UK Equity Income OEIC sector averages over
1, 3, 5 and 10 years.
Share Issues and Buybacks
The Board takes very seriously its stated policy to issue
andbuy back shares within a narrow band relative to NAV.
The ability to do this is underpinned by the liquidity of the
Company’s portfolio, all of which is listed and readily
marketable, in contrast to the position of some other
investment trusts. Over the last 15 years, the Company’s
prevailing share price premium and discount to NAV has
stayed within narrow bands rarely exceeding 3%. City of
London’s shareholders have therefore benefited from a
relatively low volatility of share price relative to NAV. In
addition, share issues at a premium and buybacks at a
discount have enhanced NAV. During the 12 months to
30 June 2026, the Company sold 9.1 million shares from
treasury (which had been bought back in earlier periods) and
issued 12.4 million new shares - all at a premium to NAV for
total proceeds of £114.8 million.
Environmental, Social and Governance
The Fund Manager and Deputy Fund Manager, supported by
specialists at Janus Henderson, give careful consideration to
environmental, social and governance (“ESG”) related risks
and opportunities when selecting stocks for the portfolio.
TheBoard recognises that these risks are highly relevant to
the long-term performance of City of London and of interest
toshareholders and commentators. An analysis by MSCI, a
company widely used in the review of ESG factors, shows that
City of London’s portfolio, as at 30 June 2026, had a lower
weighted score to ESG risks than the FTSE All-Share Index.
ESG-related issues receive careful consideration at each
Board meeting, including how shareholdings have been voted
at investee meetings. Further details on how the Fund
Managers take ESG considerations into account in their
investment decision-making process are provided on
pages 34 to 37.
Annual General Meeting
The 2026 Annual General Meeting (“AGM”) will be held in
theoffices of Janus Henderson, 201 Bishopsgate, London
EC2M 3AE on Thursday, 29 October 2026 at 1.00pm.
Themeeting will include a presentation by our Fund Manager,
Job Curtis, and Deputy Fund Manager, David Smith.
Anyshareholder who is unable to travel is encouraged to
joinvirtually by Zoom webinar by registering at
www.janushenderson.com/cty-agm. TheBoard has
decided to adopt the practice of conducting the voting for
each resolution on a poll, as an alternative to shareholders
voting on a show of hands at the meeting. This will mean
thatall votes submitted by proxy will be taken into account,
aswell as the votes of those shareholders physically present.
All shareholders, and particularly those who cannot attend in
person, are therefore requested to submit their votes by proxy
by the deadline set out in the Notice of Meeting to ensure their
vote counts.
Outlook
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.
Movements in oil and natural gas prices continue to have an
important influence on global inflation. The wars in Ukraine and
Iran have constrained the availability of these energy resources
and reduced refining capacity with adverse consequences for
critical products, such as jet fuel and diesel. The outcome of
these conflicts, which is still uncertain, will have a significant
effect on the global economy. Overall, while inflation remains
above target in the US and UK and rising in Europe, further
interest rate cuts by central banks are unlikely.
The City of London Investment Trust plc Annual Report 2026
10
Chairman’s Statement (continued)
The UK equity market offers a diverse range of sectors and is
not dominated by technology companies, as is the case with
the US stock market. The Board is confident that companies
in industries with large weightings in the UK stock market,
such as financials, resources and consumer staples, will grow
in the years ahead. The share prices of UK companies remain
at a considerable valuation discount to comparable
companies overseas and therefore likely to continue to attract
takeover bids. The Board believes City of London’s portfolio is
well placed to build on its record-breaking 60 years of
consecutive dividend growth and to provide shareholders with
a competitive total return.
Sir Laurie Magnus CBE
Chairman
15 September 2026
The City of London Investment Trust plc Annual Report 2026
11
Portfolio Snapshot
Forty Largest Investments as at 30 June 2026
The 40 largest investments, representing 84.35% of the portfolio, are listed below.
Position Company Sector
Market value
£’000
Portfolio
%
1 HSBC Banks 191,727 6.42
2 Shell Oil and Gas 126,076 4.22
3 British American Tobacco Tobacco 123,940 4.15
4 NatWest Banks 118,357 3.96
5 Lloyds Banking Banks 104,434 3.50
6 BAE Systems Aerospace and Defence 101,365 3.40
7 Unilever Personal Care, Drug and Grocery Stores 94,564 3.17
8 AstraZeneca Pharmaceuticals and Biotechnology 93,060 3.12
9 Tesco Personal Care, Drug and Grocery Stores 89,656 3.00
10 M&G Investment Banking and Brokerage Services 87,386 2.93
Top 10 1,130,565 37.87
11 Rio Tinto Industrial Metals and Mining 84,752 2.84
12 Imperial Brands Tobacco 80,184 2.69
13 Barclays Banks 78,270 2.62
14 BP Oil and Gas 73,327 2.46
15 GSK Pharmaceuticals and Biotechnology 73,278 2.45
16 IG Investment Banking and Brokerage Services 72,720 2.44
17 Aviva Life Insurance 72,367 2.42
18 Standard Life (formerly Phoenix) Life Insurance 71,968 2.41
19 RELX Software and Computer Services 64,052 2.14
20 National Grid Gas, Water and Multi-utilities 60,029 2.01
Top 20 1,861,512 62.35
21 Legal & General Life Insurance 57,915 1.94
22 British Land Real Estate Investment Trusts 57,739 1.93
23 Land Securities Real Estate Investment Trusts 57,569 1.93
24 Schroders Investment Banking and Brokerage Services 43,438 1.45
25 Severn Trent Gas, Water and Multi-utilities 35,472 1.19
26 Diageo Beverages 35,017 1.17
27 Reckitt Benckiser Personal Care, Drug and Grocery Stores 34,370 1.15
28 Glencore Industrial Metals and Mining 33,397 1.12
29 TotalEnergies Oil and Gas 30,464 1.02
30 Munich Re Non-life Insurance 27,329 0.92
Top 30 2,274,222 76.17
31 St. James’s Place Investment Banking and Brokerage Services 27,259 0.91
32 Segro Real Estate Investment Trusts 26,694 0.89
33 Swire Pacific General Industrials 26,672 0.89
34 SSE Electricity 26,176 0.88
35 Novartis Pharmaceuticals and Biotechnology 26,011 0.87
36 BT Telecommunications Service Providers 25,942 0.87
37 TP ICAP Investment Banking and Brokerage Services 21,996 0.74
38 IMI Electronic and Electrical Equipment 21,474 0.72
39 ITV Media 21,359 0.72
40 Smiths General Industrials 20,480 0.69
Top 40 2,518,285 84.35
All classes of equity in any one company are treated as one investment.
The City of London Investment Trust plc Annual Report 2026
12
Portfolio Snapshot (continued)
Classification of Investments and Portfolio Weighting as at 30 June 2026
Portfolio
%
FTSE All-Share
Index
%
Relative to the FTSE
All-Share Index
percentage points
Energy Oil and Gas 7.7 8.6 (0.9)
7.7 8.6 (0.9)
Basic Materials Chemicals 0.6 0.3 0.3
Industrial Metals and Mining 3.9 6.5 (2.6)
Precious Metals and Mining – 0.6 (0.6)
4.5 7.4 (2.9)
Industrials Aerospace and Defence 3.4 6.7 (3.3)
Construction and Materials 0.4 0.5 (0.1)
Electronic and Electrical Equipment 1.3 1.2 0.1
General Industrials 1.6 0.7 0.9
Industrial Engineering 0.4 0.5 (0.1)
Industrial Support Services 0.5 2.5 (2.0)
Industrial Transportation – 0.1 (0.1)
7.6 12.2 (4.6)
Consumer Staples Beverages 1.6 2.1 (0.5)
Food Producers 1.4 0.5 0.9
Personal Care, Drug and Grocery Stores 7.3 6.1 1.2
Tobacco 6.9 4.1 2.8
17.2 12.8 4.4
Health Care Medical Equipment and Services 0.6 0.5 0.1
Pharmaceuticals and Biotechnology 7.7 11.5 (3.8)
8.3 12.0 (3.7)
Consumer Discretionary Consumer Services – 1.4 (1.4)
Household Goods and Home Construction 1.1 0.6 0.5
Leisure Goods – 0.3 (0.3)
Media 0.7 0.9 (0.2)
Personal Goods – 0.2 (0.2)
Retailers 1.2 1.4 (0.2)
Travel and Leisure 0.2 1.9 (1.7)
3.2 6.7 (3.5)
Telecommunications Telecommunications Service Providers 2.4 1.2 1.2
2.4 1.2 1.2
Utilities Electricity 0.9 1.2 (0.3)
Gas, Water and Multi-utilities 3.8 3.3 0.5
4.7 4.5 0.2
Financials Banks 16.8 17.0 (0.2)
Closed End Investments – 5.6 (5.6)
Finance and Credit Services – 1.5 (1.5)
Investment Banking and Brokerage Services 9.7 2.9 6.8
Life Insurance 7.2 2.4 4.8
Non-life Insurance 2.3 0.9 1.4
36.0 30.3 5.7
Real Estate Real Estate Investment Trusts 5.4 1.8 3.6
Real Estate Investment and Services 0.4 0.2 0.2
5.8 2.0 3.8
Technology Software and Computer Services 2.6 2.3 0.3
2.6 2.3 0.3
Total 100.0 100.0 –
13
The City of London Investment Trust plc Annual Report 2026
“
The portfolio is designed to continue
growing City of London’s dividend
and provide a competitive total
return, including capital appreciation.
We believe the companies in the
portfolio offer good value relative
toour view of the prospects for
earnings and dividend growth.
”
Job Curtis
Fund Manager
David Smith
Deputy Fund Manager
Fund
Managers’
Report
14
Fund Managers’ Report
Investment Background
The UK equity market, as measured by the FTSE All-Share
Index, produced a total return of 21.9% over the year under
review. UK GDP growth slowed in the second half of 2025,
adversely affected by speculation over the Budget, but
recovered in the first half of 2026, leading to growth of 1.1%
over the 12 months. After poor results in the May local
elections, Sir Keir Starmer resigned as Prime Minister and was
replaced by Andy Burnham in July 2026.
Globally, the dominant investment theme was excitement over
the new technology of artificial intelligence (“AI”). The vast sums
being spent on building out the infrastructure for AI led to very
substantial opportunities for suppliers, such as manufacturers
of semi-conductor chips, copper miners and builders of data
centres. But concern grew towards the end of the period about
whether the returns would justify the scale of investment.
The outbreak of hostilities between the US and Iran, which led to
the Strait of Hormuz being closed, caused a rise in the oil price
and fall in global equity prices. These moves reversed in the
second quarter of 2026 as the conflict appeared to de-escalate.
FTSE All-Share Index total return (rebased to 100)
Jun
25
Jul
25
Aug
25
Sep
25
Oct
25
Nov
25
Dec
25
Jan
26
Feb
26
Mar
26
Apr
26
May
26
Jun
26
95
100
105
110
115
120
125
130
%
Source: LSEG Datastream, as at 30 June 2026. Rebased to 100 as at
30 June 2025
During the 12 months, the Bank of England made two 25
basis points cuts in the base rate, in August and December
2025, taking it from 4.25% to 3.75%. CPI inflation started the
period under review at 3.6% and was on a declining trend
until the conflict between the US and Iran led to a rise in the oil
price and inflation. The 10-year gilt yield, which was 4.5% on
30 June 2025, rose to a peak of 5.2% on 19 May 2026 and
ended the 12 months at 4.8% on 30 June 2026. The dividend
yield of the FTSE All-Share Index was 3.1% at 30 June 2026,
below the 10-year gilt yield and the base rate, but with
equities offering the prospect of dividend growth.
FTSE All-Share Index dividend yield, UK 10-year gilt
yield and UK base rate
UK Clearing Banks Base Rate
UK 10-year Gilt Yield
FTSE All-Share – dividend yield
Jun
25
%
Jul
25
Aug
25
Sep
25
Oct
25
Nov
25
Dec
25
Jan
26
Feb
26
Mar
26
Apr
26
May
26
Jun
26
2.5
3.0
3.5
4.0
4.5
5.0
5.5
Source: LSEG Datastream, as at 30 June 2026
In 2017 and 2021, when interest rates were exceptionally low,
the Company was able to fix cheap rates of borrowing for long
periods through the following secured notes: £30 million 2.67%
2046 and £50 million 2.94% 2049. In addition, there is also one
secured note with two-and-a-half years until maturity:
£35 million 4.53% 2029. These borrowings remained invested in
equities throughout the year. The HSBC facility, which is priced
off the base rate, was used opportunistically: £17 million was
drawn down at the start of the 12-month period, falling to
£4 million at 30 September 2025, rising to £73 million at 31 May
2026 and falling to £32 million at 30 June 2026.
UK £ vs US$ and Euro
GBP to EUR
GBP to USD
Jun
25
Jul
25
Aug
25
Sep
25
Oct
25
Nov
25
Dec
25
Jan
26
Feb
26
Mar
26
Apr
26
May
26
Jun
26
1.00
1.05
1.10
1.15
1.20
1.25
1.30
1.35
1.40
Source: LSEG Datastream, as at 30 June 2026
In the foreign exchange market, the US dollar strengthened
against sterling, which reflected the better growth of the US
economy, partly due to capital expenditure on AI infrastructure.
The exchange rate between the US dollar and sterling fell from
1.37 to 1.33. Against the euro, sterling was more stable, with
the exchange rate moving from 1.17 to 1.16.
The City of London Investment Trust plc Annual Report 2026
15
Fund Managers’ Report (continued)
Brent Crude Oil US$/bbl
Jun
25
Jul
25
Aug
25
Sep
25
Oct
25
Nov
25
Dec
25
Jan
26
Feb
26
Mar
26
Apr
26
May
26
Jun
26
50
60
70
80
90
100
110
120
130
US$
Source: Bloomberg, as at 30 June 2026
The oil price softened during the first eight months of the
period under review, reflecting an excess supply of oil in world
markets. There was a dramatic change with the outbreak of
the conflict between the US and Iran leading to the closure of
the Strait of Hormuz, a significant artery in the export of oil
and liquified natural gas (“LNG”) from the Middle East. In some
respects, it was surprising that the oil price did not rise higher
than $118/bbl. Consumers globally reduced demand for oil
and China was able to draw on its large oil reserves. The oil
price fell in June 2026, as the Memorandum of Understanding
between the US and Iran was agreed, and ended the
12 months at $73/bbl.
Performance Review
Estimated performance attribution (relative to
FTSEAll-Share Index total return)
2026
%
2025
%
Stock selection -0.51 +5.54
Gearing +0.76 +0.39
Expenses -0.36 -0.36
Share issues/buybacks +0.11 +0.02
Total 0.00 +5.59
Source: Janus Henderson
The Company produced a net asset value total return of
21.9%, which was the same as the FTSE All-Share Index.
Gearing contributed to performance by 0.76 percentage
points (“pp”) and stock selection detracted by 0.51pp.
The biggest stock detractor to relative performance was not
owning Rolls Royce, the aero engine manufacturer. Benefiting
from the upswing in the civil aerospace cycle, Rolls Royce’s
shares performed strongly but the company continued to pay
a low level of dividend. The second and third biggest
detractors were HSBC, the bank, and AstraZeneca, the
pharmaceutical company. Both were large holdings in the
portfolio but underweight relative to the benchmark index. The
fourth biggest detractor was RELX, the provider of information
and analytics to businesses, lawyers and scientists. RELX’s
shares underperformed on general fears of the medium-term
impact of AI on its business, despite it delivering short-term
profits growth in line with expectations. The fifth biggest
detractor was Anglo American, the mining company, which
was sold from the portfolio but subsequently announced a
combination with Teck of Canada, which was well received.
The biggest and third biggest contributors to relative
performance were respectively London Stock Exchange and
Experian, the credit rating company, which were not held in
the portfolio. Both companies derated on fears about the
impact of AI on their businesses. The second biggest
contributor was IG, the online trading company, which
benefited from supportive market conditions and an improved
product offering leading to strong customer growth. The
fourth biggest contributor was 3i, the investor in private
companies, where the holding was reduced and the portfolio
was underweight. The fifth largest contributor was Schroders,
the fund management company, which agreed to be taken
over by Nuveen of the US.
FTSE 100, 250 and SmallCap Indices total return
(rebased to 100)
FTSE 100 FTSE 250 FTSE SmallCap
Jun
25
Jul
25
Aug
25
Sep
25
Oct
25
Nov
25
Dec
25
Jan
26
Feb
26
Mar
26
Apr
26
May
26
Jun
26
90
100
110
120
130
%
Source: LSEG Datastream, as at 30 June 2026. Rebased to 100 as at
30 June 2025
Large companies, as represented by the FTSE 100 Index,
produced a total return of 23.6%, outperforming the 10.2%
return for medium-sized companies, as represented by the
FTSE 250 Index, and the 14.3% return for smaller companies,
as represented by the FTSE Smallcap Index. The FTSE 100
was helped by its large weighting in mining, banks and health
care which were strongly performing sectors.
FTSE 350 Higher and Lower Yield (rebased to 100)
FTSE 350 Lower Yield FTSE 350 Higher Yield
Jun
25
Jul
25
Aug
25
Sep
25
Oct
25
Nov
25
Dec
25
Jan
26
Feb
26
Mar
26
Apr
26
May
26
Jun
26
90
100
110
120
130
140
%
Source: LSEG Datastream, as at 30 June 2026. Rebased to 100 as at
30 June 2025
The City of London Investment Trust plc Annual Report 2026
16
Fund Managers’ Report (continued)
Higher yielding shares outperformed, with the FTSE 350
Higher Yield Index (the higher dividend-yielding half of the
largest 350 companies listed in the UK) producing a return of
28.2% compared to a total return of 15.6% by the FTSE 350
Lower Yield Index (the lower yielding half of the largest 350
companies listed in the UK). The perceived AI loser
companies, such as RELX, London Stock Exchange and
Experian mentioned above, tended to be lower yielding.
Portfolio Changes
Distribution of the portfolio as at 30 June 2026
Overseas-listed
companies 7%
Medium-sized and
small UK-listed
companies 8%
Large UK-listed companies
(constituents of the
FTSE 100 Index)
85%
Source: Janus Henderson, as at 30 June 2026
The proportion of the portfolio in large UK-listed companies
(constituents of the FTSE 100 Index) rose during the
12 months from 81% to 85%. This reflects the strong
performance and continuing good prospects, in our view, for
capital and income growth from sectors and companies
typically found in the FTSE 100 Index, such as banks and life
insurers. The proportion in overseas-listed companies
reduced slightly from 8% to 7%, given our preference for UK
companies which stood at a valuation discount to overseas
equivalents. There is scope for up to 20% of the portfolio to
be in overseas-listed equities and it did reach 17% as at
30 June 2022. In the future, a greater allocation will be given
to overseas-listed equities when we perceive the relative
valuation to have improved.
There were four new holdings bought during the 12 months.
Big Yellow is the UK’s largest self-storage operator with a
footprint of some six million square feet. Its estate is primarily
freehold and concentrated in London, the South-East and
large urban conurbations. Although demand can be affected
by the volume of housing transactions, evidence suggests
there is considerable scope for secular growth of self-storage
in the UK to reach the penetration found in some other
countries, such as the US.
ICG is an alternative asset management firm, in areas such as
structured capital, private debt, private equity secondaries,
credit and real assets. The private markets in which ICG
operates have been growing faster than public markets with
less pressure on management fees.
ITV’s revenues are split between media and entertainment,
where it is the leader in UK TV advertising, and the studios,
where it is one of the world’s largest makers of television
programmes. ITV has reached agreement to sell its media
and entertainment division to Sky (owned by Comcast of the
US), subject to regulatory approval. The remaining studios
division should be able to achieve a higher valuation given its
growth rate.
Rightmove is the UK’s leading property portal, with some 90%
of estate agents paying a monthly subscription to advertise an
unlimited number of properties on its website. Rightmove’s
shares have derated because of fears about AI disrupting its
business model. Rightmove is investing in AI to enhance its
platform and has proprietorial data and analytics to build on.
There were seven complete sales made during the 12 months.
Two companies were sold ahead of the completion of
takeovers: Beazley, the specialist insurer, which is being bought
by Zurich Insurance; and Dowlais, the motor components
company, which was taken over by American Axle.
Anglo American, the mining company, was sold after it cut its
dividend severely and concern about the difficulty of selling its
coal assets in Australia and its controlling interest in De Beers,
the diamond company. XP Power, a power supply
manufacturer, passed its dividend, and Hays, the employment
agency, and Mondi, paper and packaging company, both cut
their dividends. These three companies, which were small
holdings in the portfolio, were sold given uncertainty about
their recovery prospects.
In the oil and gas sector, the holding in Harbour Energy was
sold, given the cut in its dividend and its high leverage. In
contrast, a significant addition was made to BP, which
stopped its share buyback but continued to increase its
dividend. The elevated oil price has enabled BP to reduce its
debt levels more quickly than previously anticipated. In
addition, the company made several discoveries of new oil
and gas fields over the last year, including Bumerangue, a
large prospect off the coast of Brazil.
In consumer staples, additions were made to two long-
standing holdings, Diageo and Unilever. Diageo is one of the
world’s largest alcoholic drinks companies, with brands such
as Johnnie Walker (Scotch whisky), Guinness (beer), Smirnoff
(vodka) and Don Julio (tequila). Diageo has performed poorly
in recent years, with falling profits leading to a cut in its
dividend. Although weight-loss drugs may have had an
impact, there is also an element of cyclicality in demand for
premium alcoholic beverages, which should recover. The new
Chief Executive, Sir Dave Lewis, who had an excellent record
turning around Tesco, should be able to improve Diageo’s
trading performance and operational efficiency over the
medium term.
Unilever is in the process of significantly simplifying its
business. It spun out its ice cream business, Magnum, which
was sold from the portfolio. It also announced the merger of
its food division with McCormick of the US. This will take
The City of London Investment Trust plc Annual Report 2026
17
Fund Managers’ Report (continued)
place in 2027 and lead to a better-balanced food business.
McCormick also has a good record of dividend growth. The
remaining Unilever business (personal care, beauty & well-
being and homecare) should have a higher growth rate,
especially given their large presence in emerging markets.
GSK, the pharmaceutical company, was added to given its
more consistent profits delivery and promising pipeline of new
drugs in research and development. The holding in RELX, the
provider of information and analytics to businesses, lawyers
and scientists, was increased. In our view, RELX has high
barriers to entry around its businesses and is likely to be a
beneficiary of AI.
The share prices of the Real Estate Investment Trust shares
held in the portfolio traded on substantial discounts to their net
asset values despite high occupancies of their properties and
improving rental growth. Additions were made to Land
Securities (London offices and shopping centres), British Land
(London offices and retail warehouses) and Segro (industrial
warehouses and data centres). In June 2026, there was a
takeover approach for Segro from Prologis of the US,
subsequently recommended by Segro’s board in August 2026.
Reductions were made in the utilities SSE and National Grid
on substantial premiums to their regulatory asset values.
While both businesses have strong growth prospects as
renewable energy infrastructure is built out, they will need to
execute well on their large investment programmes.
Over 80% of the holding in 3i, the investor in private
companies, which entered the portfolio in 2021, was sold at a
large profit compared with our book cost. 3i’s shares were
standing on a large premium to its NAV, reflecting the success
of its investment in Action, a European discount retailer.
Subsequently, Action’s sales fell short of expectations, leading
to share price underperformance.
Portfolio Outlook
Revenue exposure (%)
United Kingdom 42%
North America 21%
Europe ex UK 12%
Asia Pacific
(inc Japan) 15%
Emerging Markets 10%
Source: FactSet, as at 30 June 2026
The portfolio remains well diversified, with 58% of investee
companies’ revenues coming from overseas. As shown in
thechart above, the detailed split is 42% UK, 21% North
America, 15% Asia Pacific, 12% Europe ex UK and 10%
Emerging Markets.
Largest sector weightings
Portfolio
%
FTSE
All-Share
Index
%
Relative to
the FTSE
All-Share
Index
%
Banks 16.8 17.0 -0.2
Investment Banking and
Brokerage Services 9.7 2.9 +6.8
Oil and Gas 7.7 8.6 -0.9
Pharmaceuticals and
Biotechnology 7.7 11.5 -3.8
Personal Care, Drug and
Grocery Stores 7.3 6.1 +1.2
Life Insurance 7.2 2.4 +4.8
Tobacco 6.9 4.1 +2.8
The largest sector exposure is banks at 16.8% of the portfolio,
which had risen from 14.0% a year ago due to strong share
price performances rather than any additions to the holdings.
The largest position in the banks sector (and in the whole
portfolio) is in HSBC (6.4% of the portfolio) followed by
NatWest (4.0%), Lloyds (3.5%) and Barclays (2.6%). The sector
should continue to benefit as balances that were hedged out
when bond yields were low before 2023 (often referred to as
the “structural hedge”) are rolled over to the higher yields that
are now available. The regulatory climate continues to improve
with the overall capital position of the leading banks seen to
be sufficient with the trend towards a relaxation of capital
requirements to boost lending and economic growth. As the
profitability of the banks sector builds, further dividend growth
can be expected, with pay-out ratios at a conservative level.
The second largest sector weighting is in investment banking
and brokerage services (9.7% of the portfolio). This sector
includes fund managers, wealth managers and financial
advisers. The three largest holdings are: M&G (2.9%), the fund
manager and life insurer; IG (2.4%), the online trading
company; and Schroders (1.5%), the asset management
group. M&G offers a compelling dividend yield backed by the
cash flow from its life insurance business. Its fund
management operation should benefit from the strategic
partnership with Dai-ichi Life of Japan, which has bought a
15% stake in M&G. IG is well placed in the large and growing
markets for the investment in and trading of financial
instruments, while the recently announced acquisition of
Underdog increases the company’s exposure to the US and
adds new products in sports and prediction markets.
Schroders has agreed to be taken over by Nuveen of the US
and will probably exit the portfolio in the second half of 2026.
The oil and gas sector is the third largest in the portfolio, with
the two largest holdings being Shell (4.2%) and BP (2.5%), but
slightly underweight compared with the benchmark index.
The price of oil and natural gas are the key determinants for
the profitability of the oil companies, which can make them
volatile despite their large size. Shell has a strong balance
The City of London Investment Trust plc Annual Report 2026
18
Fund Managers’ Report (continued)
sheet, with a low level of debt, and a large share buyback
programme, which should lead to its share price being
defensive relative to others in the sector. As discussed in the
Portfolio Changes section above, BP, in our view, has
considerable recovery potential.
The fourth largest sector is pharmaceuticals and
biotechnology, where the two largest holdings are
AstraZeneca (3.1%) and GSK (2.5%). AstraZeneca has a
strong record for the discovery and development of new
drugs and a promising pipeline. Its share price stands at a
valuation premium compared with most others in the global
sector, with a relatively low dividend yield. The portfolio is
underweight relative to the FTSE All-Share Index. GSK is more
modestly rated and, as discussed in the Portfolio Changes
section, additions have been made to the holding given
improved prospects.
The fifth largest sector is personal care, drug and grocery
stores, where the two largest holdings are Unilever (3.2%) and
Tesco (3.0%). As discussed above, Unilever will be demerging
its food business, which should release the growth potential
of its remaining operations. Tesco is the UK’s leading food
retailer with a market share of around 29%. Tesco trades in a
variety of different sized stores as well as online. It is
competitive with its prices and offers a full range of goods in
its large stores. It also has a more sophisticated loyalty card
programme than competitors.
The sixth largest sector is life insurance, where the largest
holdings are Aviva (2.4%), Standard Life (2.4%) and Legal &
General (1.9%). These companies benefit from the cash flow
from existing books of business as well as the growth
potential as leaders in the market for UK savings and
retirement products.
The seventh largest sector is tobacco, where the holdings are
British American Tobacco (4.2%) and Imperial Brands (2.7%).
Both companies are strongly cash generative with scope to
enhance returns through share buybacks as well as dividends.
British American Tobacco is also well placed in what are
widely considered to be less harmful nicotine products, such
as pouches and vapes, whose growth is offsetting some of
the decline in volumes from combustible products.
The largest seven sectors, which make up 63.3% of the total
portfolio, illustrate the range of the UK equity market as they
include companies from financial industries (banks,
investment banking and brokerage services and life insurers),
energy (oil and gas), health care (pharmaceuticals) and
consumer staples (personal care, drug and grocery stores
and tobacco). In addition, there are large holdings in other
sectors with significant growth potential, such as BAE
Systems (3.4%, in aerospace and defence), Rio Tinto (2.8%,
inmining) and RELX (2.1%, in software).
Overall, the portfolio is designed to continue growing City of
London’s dividend and provide a competitive total return,
including capital appreciation. It has a tilt towards stocks with
above-average dividend yield, but some lower yielding stocks
are included in the mix. The portfolio is diversified by
geography and sector, in contrast to many global portfolios
which are dominated by technology shares. We believe the
companies in the portfolio continue to offer good value relative
to our view of the prospects for earnings and dividend growth
and compared with equivalents overseas.
Job Curtis David Smith
Fund Manager Deputy Fund Manager
15 September 2026
The City of London Investment Trust plc Annual Report 2026
19
Portfolio Information
Sector Breakdown of Investments as at 30 June 2026
1 Overseas listed
All classes of equity in any one company are treated as one investment
Valuation
£’000
ENERGY
Oil and Gas
Shell 126,076
BP 73,327
TotalEnergies
1
30,464
229,867
Total Energy 229,867
BASIC MATERIALS
Chemicals
Johnson Matthey 12,866
Victrex 4,313
17,179
Industrial Metals and Mining
Rio Tinto 84,752
Glencore 33,397
118,149
Total Basic Materials 135,328
INDUSTRIALS
Aerospace and Defence
BAE Systems 101,365
101,365
Construction and Materials
Ibstock 7,164
Marshalls 6,600
13,764
Electronic and Electrical Equipment
IMI 21,474
Morgan Advanced Materials 8,819
Rotork 7,680
37,973
General Industrials
Swire Pacific
1
26,672
Smiths 20,480
47,152
Industrial Engineering
Vesuvius 11,872
11,872
Industrial Support Services
PayPoint 14,338
14,338
Total Industrials 226,464
Valuation
£’000
CONSUMER STAPLES
Beverages
Diageo 35,017
Coca-Cola
1
13,464
48,481
Food Producers
Nestlé
1
19,786
Tate & Lyle 14,681
Hilton Food 8,240
42,707
Personal Care, Drug and Grocery Stores
Unilever 94,564
Tesco 89,656
Reckitt Benckiser 34,370
218,590
Tobacco
British American Tobacco 123,940
Imperial Brands 80,184
204,124
Total Consumer Staples 513,902
HEALTH CARE
Medical Equipment and Services
Smith & Nephew 17,985
17,985
Pharmaceuticals and Biotechnology
AstraZeneca 93,060
GSK 73,278
Novartis
1
26,011
Johnson & Johnson
1
19,903
Merck
1
16,928
229,180
Total Health Care 247,165
The City of London Investment Trust plc Annual Report 2026
20
Portfolio Information (continued)
1 Overseas listed
All classes of equity in any one company are treated as one investment
Valuation
£’000
CONSUMER DISCRETIONARY
Household Goods and Home Construction
Persimmon 18,060
Taylor Wimpey 12,909
30,969
Media
ITV 21,359
21,359
Retailers
Kingfisher 15,293
Inchcape 11,943
Halfords 8,068
35,304
Travel and Leisure
Young & Co’s Brewery 6,900
6,900
Total Consumer Discretionary 94,532
TELECOMMUNICATIONS
Telecommunications Service Providers
BT 25,942
Deutsche Telekom
1
16,899
Vodafone 15,933
Verizon Communications
1
12,751
71,525
Total Telecommunications 71,525
UTILITIES
Electricity
SSE 26,176
26,176
Gas, Water and Multi-utilities
National Grid 60,029
Severn Trent 35,472
United Utilities 19,635
115,136
Total Utilities 141,312
FINANCIALS
Banks
HSBC 191,727
NatWest 118,357
Lloyds Banking 104,434
Barclays 78,270
Nationwide Building Society 10.25% Var
Perp CCDS 8,393
501,181
Valuation
£’000
Investment Banking and Brokerage Services
M&G 87,386
IG 72,720
Schroders 43,438
St. James’s Place 27,259
TP ICAP 21,996
Rathbones 16,420
ICG 12,660
3i 7,955
289,834
Life Insurance
Aviva 72,367
Standard Life (formerly Phoenix) 71,968
Legal & General 57,915
Prudential 12,036
214,286
Non-life Insurance
Munich Re
1
27,329
Admiral 17,800
Hiscox 15,691
Sabre Insurance 8,690
69,510
Total Financials 1,074,811
REAL ESTATE
Real Estate Investment Trusts
British Land 57,739
Land Securities 57,569
Segro 26,694
Big Yellow 18,050
160,052
Real Estate Investment and Services
Rightmove 12,708
12,708
Total Real Estate 172,760
TECHNOLOGY
Software and Computer Services
RELX 64,052
Sage 13,954
78,006
Total Technology 78,006
TOTAL INVESTMENTS 2,985,672
The City of London Investment Trust plc Annual Report 2026
21
Business
Review
22
Our Purpose
The Company’s purpose is to deliver growth in income and
capital to shareholders principally by investing in equities
listed on the London Stock Exchange. We do this by following
a disciplined process of investment, by controlling costs and
using borrowings to enhance returns.
Investment Approach
The Fund Manager, Job Curtis, has managed the
Company’sportfolio since July 1991. He is a member of
JanusHenderson’s Global Equity Income team and is
assisted by David Smith, who has been Deputy Fund Manager
since 2021. They manage the portfolio in a conservative way,
focusing on companies with cash-generative businesses able
to grow their dividends with attractive yields. The portfolio is
well diversified. At 30 June 2026, 85% of the portfolio was in
FTSE 100 companies (compared with 81% at 30 June 2025)
and it remains biased towards UK-listed companies with
international exposure to economies likely to grow faster than
the UK. In order to provide a stable and reliable income, the
portfolio aims to provide shareholders with a dividend yield
broadly between 10% and 30% higher than the FTSE
All-Share Index.
The Fund Managers are committed to maintaining a
diversifiedportfolio and have structured the portfolio so
thatshareholders stand to gain in the short term through
quarterly dividends, while long-term capital appreciation
iscentral to stock-pickingdecisions.
How the Company Creates Value
The Company’s business model offers numerous advantages:
●
it provides investors with access to a professionally and
actively managed portfolio of assets;
●
it offers investors exposure to large UK companies;
●
it enables investors to spread the risks of investing;
●
it enhances returns to investors by operating as an
approved investment trust meaning no capital gains tax
ispaid on the realisation of investments;
●
the closed end structure allows the Fund Managers to take
a longer-term view on investments and remain fully invested;
●
the ability to draw on revenue reserves to support the
payment of dividends;
●
the ability to use leverage to increase returns for investors;
and
●
oversight by a Board of Directors wholly independent of
the Manager.
Any material change to the investment policy would require
the prior approval of both shareholders and the FCA.
Business Model
Investment Objective
The Company’s objective is to provide long-term growth in
income and capital, principally by investment in equities listed
on the London Stock Exchange. The Board fully recognises
the importance of dividend income to shareholders.
Investment Policy
Asset allocation
While the Company will mainly invest in equities, there is the
flexibility to invest in debt securities, such as convertibles,
corporate bonds or government debt, if it is deemed that these
will, at a particular time or for a particular period, enhance the
performance of the Company in the pursuit of its objective.
The Company has a portfolio invested predominantly in
larger companies. Typically at least 60% of the portfolio by
value willbe invested in large companies (being companies
with amarket capitalisation greater than £5 billion at the time
of investment). The remainder of the portfolio will be invested
in medium-sized and small companies. No more than 20%
oftheportfolio will be invested in overseas listed stocks.
There are no set limits on sector exposures, although the
Board regularly monitors the Company’s investments and
the Manager’s investment activity. The Manager primarily
employs a bottom-up value-based investment process to
identify suitable opportunities and pays particular regard
tocash generation and dividends.
The portfolio yield will usually be broadly between 10% and
30% above the average dividend yield for the UK equity
market. There may be some holdings, selected for their
above average growth potential, which have a dividend yield
lower than the market.
Gearing
The Company will at times utilise limited gearing, both
short and long term, in order to enhance performance.
Other than in exceptional market conditions, gearing will
not exceed 20% of net asset value at the time of draw
down of the relevant borrowings. Up to 10% of the net
assets can be held in cash.
Selling traded options where the underlying share is held in
the portfolio can be used to generate income. Buying and
selling FTSE 100 Index Futures can be used to increase or
reduce gearing.
Diversification
The Company achieves an appropriate spread of investment
risk principally through a broadly diversified portfolio.
The Company will not invest more than 15% of its portfolio
inany single investment on acquisition, nor will it invest
more than 15% of the portfolio in any other UK listed
investment trusts or investment companies.
The City of London Investment Trust plc Annual Report 2026
23
Business Model (continued)
Liquidity and Discount Management
The Board’s policy, subject to prevailing market conditions, is
for the Company’s share price to reflect closely its underlying
NAV, while smoothing volatility and encouraging aliquid
market in the shares. The ability to influence thismeaningfully
over the longer term is, of course, limited. However, the Board
intends, subject always to the overall impact on the portfolio,
the pricing of other investment companies and general market
conditions, to consider issuance and buybacks within a
narrow band relative to NAV. We believe that flexibility is
important and thatit isnot in shareholders’ interests to have a
specific issuance and buyback policy.
Borrowings
The Company has a borrowing facility of £120.0 million
(2025:£120.0 million) with HSBC Bank plc, of which
£31.6million was drawn at the year end (2025:£17.0 million).
The Company has £114.4 million (2025:£114.3 million)
ofsecured notes in issue (fairvalue of the secured notes:
£84.9million (2025:£85.5 million)).
The level of borrowing at 30 June 2026 was 5.2% of NAV with
debt at par (2025:5.8%) and 4.1% with debt at fair value
(2025:4.5%).
Structure and Governance
The Company was founded in 1860 and registered as a public
limited company in 1891. It is an investment company as
defined in Section 833 of the Companies Act 2006. It is not
aclose company.
The Company operates as an investment trust under Sections
1158/9 of the Corporation Tax Act 2010, as amended
(“Section 1158/9”), under which it is exempt from corporation
tax on capital gains. The Company has obtained approval
from HMRC as an investment trust. The Directors are of the
opinion that the Company has conducted its affairs in
compliance with Section 1158/9 since approval was granted
and intends to continue to do so.
The Company’s shares trade on the Main Market of the
London Stock Exchange under the closed ended investment
funds category. It is included in the FTSE 250 Index. It is
subject to applicable FCA requirements, including the UK
Listing Rules, Prospectus Rules and Disclosure Guidance and
Transparency Rules. The Company is a member of the
Association of Investment Companies (“AIC”).
The Company has a Board of independent non-executive
Directors. It has no employees and investment and
operational matters are delegated to specialist third-party
service providers. The Board retains responsibility for strategy,
governance, risk oversight and the monitoring of the
performance of service providers. The Board is accountable
to shareholders, who have the ability to remove a Director
from office where they consider it to be in the interests of
theCompany.
The Company and the Board are governed by its Articles of
Association, amendments to which must be approved by
shareholders by way of a special resolution.
The Board
It is the Board’s aim to have an appropriate level of diversity in
the boardroom. The current Directors have a diverse range of
experience andskills, bringing knowledge of investment
management, financial markets, accounting and auditing, risk
and governance, and marketing and distribution expertise to
discussions on the Company’s business. At the date of this
report, the Board comprises five Directors, three of whom
aremale and two are female.
The Nominations Committee considers diversity in its
broadest sense when making recommendations for
appointments to the Board. Diversity is an important
consideration, although the Board’s responsibility is to ensure
its overall strength and effectiveness. Further details regarding
the Board’s Diversity and Inclusion Policy, including its
approach to recommended diversity targets, can be found
inthe Nominations Committee report on pages 55 and 56.
The Company has no employees and, therefore, has nothing
further to report in respect of gender representation within
theCompany. Details of Janus Henderson’s diversity and
inclusion initiatives can be found onits website at
www.janushenderson.com/corporate/who-we-are/
diversity-equity-and-inclusion/.
Culture, Values and Business Ethics
Good governance is at the heart of any company and is
integral to ensuring its success and sustainability as a
business. The Board aspires to follow high standards of
governance, with a culture based upon openness, mutual
respect, integrity, constructive challenge and trust. The Board
seeks always to act in the best interests of shareholders,
making themost effective use possible of the diversity of skills
and experience of the Directors. This culture of openness and
constructive challenge extends to the Board’s interaction with
the Manager, being the Company’s most important service
provider. The Board expects the Manager and all of the
Company’s other service providers to hold values which
alignwith the high standards promoted by the Board.
The Company has a number of policies and procedures in
place to assist with maintaining a culture of good governance
including those relating to Directors’ conflicts of interest,
Directors’ dealings in the Company’s shares, bribery
(including the acceptance of gifts and hospitality) and tax
evasion. The Board assesses and monitors compliance with
these policies and procedures regularly through Board
meetings and an annual review process.
The City of London Investment Trust plc Annual Report 2026
24
As an investment vehicle, the Company does not provide
goods or services in the normal course of business and does
not have any customers. Accordingly, the Board considers
that the Company is not within the scope of the Modern
Slavery Act 2015 and is therefore not required to make a
modern slavery statement.
As the Company’s operations are delegated to third-party
service providers, the Board seeks annual assurances from its
service providers that they comply with the provisions of the
UK Modern Slavery Act and maintain adequate safeguards in
relation to anti-bribery and corruption, criminal finances and
sanctions compliance. Given the Company’s externally
managed structure and absence of employees, its direct
exposure to employee, social, community and human rights
matters is limited; where relevant, these matters are
considered through the Board’s oversight of service providers
and the Manager’s stewardship of investee companies.
Management Arrangements
The Company is an Alternative Investment Fund (“AIF”) in
accordance with the Alternative Investment Fund Managers
Directive (“AIFMD”). The Board has appointed Janus
Henderson Fund Management UK Limited (“JHFM”) toact as
its Alternative Investment Fund Manager. JHFMdelegates
investment management services to JanusHenderson
Investors UK Limited. Both entities are authorised and
regulated by the FCA, and form part of the Janus Henderson
group of companies. References to “Janus Henderson” or the
“Manager” refer to the services provided to the Company by
the Manager’s group.
The Manager is engaged under the terms of an agreement
dated 15 February 2024. The agreement isterminable by
JHFM on sixmonths’ notice. TheCompany mayterminate the
agreement on three months’ notice withoutcompensation.
Janus Henderson and its subsidiaries also provide
accounting, company secretarial and general administrative
services. Some of the administration and accounting services
are carried out, on behalf of the Manager, by BNP Paribas.
Janus Henderson Secretarial Services UK Limited, a
subsidiary of Janus Henderson Investors, acts as the
Corporate Secretary. It has its own reporting lines and audited
internal controls. There are processes and controls in place to
ensure that there is a clear distinction between the Corporate
Secretary and Janus Henderson, particularly when dealing
with any conflicts or issues between the Company and
JanusHenderson.
Management Fee
The Manager is paid a fee of 0.3% per annum of net assets
under management on the first £3 billion of assets and
0.275% on any excess over £3 billion of net assets under
management. Fees are payable quarterly in arrears based on
the level of net assets at the relevant quarter end. There is no
performance fee arrangement in place.
Approval
The Strategic Report, set out on pages 1 to 37, has been
approved by the Board.
On behalf of the Board
Sir Laurie Magnus CBE
Chairman
15 September 2026
Business Model (continued)
The City of London Investment Trust plc Annual Report 2026
25
Measuring our Performance
The Directors use the following Key Performance Indicators (“KPIs”) to measure the success of the Company in meeting its
objective and to evaluate the performance of the Manager. The charts and data on pages 2 to 5 give more insight into how the
Company has performed against these KPIs. They are also explained in the glossary of terms and Alternative Performance
Measures on pages 93 to 95.
KPI Action
Performance against
benchmark
The Board reviews and compares, at each meeting, the performance of the portfolio as well
asthe NAV and share price for the Company and the FTSE All-Share Index.
During the year under review, the Company’s NAV performed in line with the Index (2025:+5.6%)
on a total return basis. Over five years to 30 June 2026, the Company’s NAV has outperformed
the benchmark by 16.9%.
Share Price NAV (debt at fair value) FTSE All-Share Index
80
100
120
140
160
180
200
Jun 21
Sep 21
Dec 21
Mar 22
Jun 22
Sep 22
Dec 22
Mar 23
Jun 23
Sep 23
Dec 23
Sep 24
Dec 24
Mar 25
Mar 24
Jun 25
Sep 25
Dec 25
Mar 26
Jun 26
Jun 24
%
Performance against
peer group
The Company is included in the AIC UK Equity Income sector. The Board considers the size-
weighted average NAV total return of its AIC peer group at each Board meeting.
During the year under review, the Company outperformed the peer group by 8.2% (2025:4.2%).
Over five years, the Company has outperformed the peer group by 32.2% (on a size-weighted
average basis).
80
100
120
140
160
180
200
Jun 21
Sep 21
Dec 21
Mar 22
Jun 22
Sep 22
Dec 22
Mar 23
Jun 23
Sep 23
Dec 23
Sep 24
Dec 24
Mar 25
Mar 24
Jun 25
Sep 25
Dec 25
Mar 26
Jun 26
Jun 24
NAV (debt at fair value) AIC UK Equity Income sector
1
%
Key Performance Indicators
1 AIC UK Equity Income sector NAV total return calculated on a simple average basis (see Glossary on page 95)
The City of London Investment Trust plc Annual Report 2026
26
Key Performance Indicators (continued)
KPI Action
Performance against the
OEIC sector
The Board considers the performance of the portfolio against the IA UK Equity Income OEIC sector.
During the year under review, the Company outperformed the OEIC sector average by 6.8%
(2025:6.3%). Over five years, the Company has outperformed the OEIC sector average by 34.0%.
IA UK Equity Income OEIC sectorNAV (debt at fair value)
80
100
120
140
160
180
200
Jun 21
Sep 21
Dec 21
Mar 22
Jun 22
Sep 22
Dec 22
Mar 23
Jun 23
Sep 23
Dec 23
Sep 24
Dec 24
Mar 25
Mar 24
Jun 25
Sep 25
Dec 25
Mar 26
Jun 26
Jun 24
%
Premium/discount to net
asset value
The Board’s policy, subject to prevailing market conditions, is for the Company’s share price to reflect
closely its underlying NAV while smoothing volatility and encouraging a liquid market in the
shares. At each meeting, the Board monitors the level of the Company’s premium/discount to
NAV per share and reviews the average premium/discount for the Company’s AIC sector.
At 30 June 2026, the Company’s shares were trading at a premium of 1.3% to NAV (2025:2.0%
premium) with debt at fair value.
City of London Peer Group Average
-10
-8
-6
-4
-2
0
2
4
6
2021 20232022 202620252024
%
Ongoing charge The Board regularly reviews the ongoing charge and monitors Company’s expenses.
For the year ended 30 June 2026, the ongoing charge as a percentage of average
shareholders’ fundswas 0.36% (2025:0.36%). This is the lowest in the AIC UK Equity Income
sector, and the Board remains focused on maintaining this comparative cost advantage for
shareholders.
2022 20242023 2025 2026 City of London
Source: Association of Investment Companies
Peer Group
Average
Industry Average
(ex VCTs)
%
%
0.00
0.05
0.10
0.15
0.20
0.25
0.30
0.35
0.40
0.0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.37 0.37 0.37
0.36 0.36
0.36
0.54
0.69
The City of London Investment Trust plc Annual Report 2026
27
Promoting the Company’s Success
Section 172 Statement
The Board regards a well-governed business as essential for the successful delivery of its investment proposition. The Directors carry
out their duties under Section 172 of the Companies Act 2006 to act in good faith to promote the success of the Company for the
benefit of its members as a whole, and in doing so have regard (amongst other matters) to the likely consequences of any decisions
in the longer term, the need to foster the Company’s wider stakeholders, the impact of the Company’s operations on the community
and the environment and the desirability of the Company maintaining a reputation for high standards of business conduct.
The Company has no employees, premises, assets other than financial assets, or operations. Core activities are conducted
through the Manager (Janus Henderson), with whom the Board maintains a close working relationship, and the Board holds the
Manager to account for the smooth running of the Company’s day-to-day business. Each service provider has an established
track record and has in place suitable policies and procedures to ensure it maintains high standards of business conduct.
The Board retains responsibility for decisions over corporate strategy, corporate governance, risk and internal control
assessment, investment performance monitoring and setting marketing budgets. It also determines the overall limits and
restrictions for the portfolio, including gearing and asset allocation.
Engagement with Stakeholders
Shareholders’ assets are managed taking account of the Company’s stakeholders and their interests. The Board has mapped
who the stakeholders are to support it in identifying and understanding them and fostering the appropriate level and form of
interaction. Interaction is facilitated through meetings (both face-to-face and via video conferencing and other electronic means),
seminars, presentations, publications and the Company’s website. Set out below are examples of the way the Board and the
Company engage with key stakeholders.
Why we engage How we engage Outcome
Shareholders and investors
The Board is conscious of the
importance of providing an
investment product which meets
the needs of its investors.
Shareholders rely on the
Company to deliver sustainable
and reliable returns on
investment, with regular, ongoing
income. The Board believes that
its primary focus should be on
providing an excellent service to
its shareholders and it seeks to
ensure that the Company is
accessible and available.
Regular updates on the Company and its activities are
made available on the Company’s website with the aim
of enhancing investors’ understanding of the Company,
its performance and prospects.
The Chairman and Directors are available to meet with
shareholders. A number of meetings were attended by
the Chairman and the Senior Independent Director
during the year. The Fund Managers, the Manager’s
sales team, the Broker and external marketing research
provider (Kepler Partners) also regularly meet with
shareholders and analysts.
Shareholders are encouraged to attend the AGM, where
they have the opportunity to address questions directly
to the Directors and the Fund Managers. Shareholders
who cannot attend the AGM in person are able to join
the meeting and raise questions online. Details of this
year’s AGM are in the Notice of Meeting on pages 98
to106.
Shareholders can raise issues or concerns with the
Directors at any time by writing to the Chairman at
theregistered office or by email to
itsecretariat@janushenderson.com.
The Fund Managers promote the Company with the
support of the Manager’s dedicated investment trust
sales team and the Board makes additional spend
available to support marketing activities aimed at raising
the profile of the Company.
The Company provides an
accessible, affordable and
reliable investment for retail and
institutional investors. Clear
communication of the
Company’s strategy and
performance against its
objective helps shareholders to
make informed decisions about
their investments, facilitating the
retention of existing shareholders
and attracting new ones.
Close interaction with
shareholders provides the Board
with a good understanding of
how the Company is perceived
in the market. This enables it to
run the Company in line with
shareholders’ interests as a
whole and for the Company’s
long-term success.
The City of London Investment Trust plc Annual Report 2026
28
Promoting the Company’s Success (continued)
Why we engage How we engage Outcome
Manager – Janus Henderson
The Manager provides the
following services:
●
Fund management
●
Sales and marketing
●
Company secretarial
●
Financial reporting
●
Internal controls functions
●
Investment accounting and
administration (outsourced
by Janus Henderson to
BNPParibas)
●
Oversight of third-party
service providers
Successful management of the
Company’s portfolio is essential
for the Company to meet its
strategic objectives and enable
its long-term sustainable
success, whilst effective
provision of the ancillary services
ensures the efficient running of
the Company’s day-to-day
affairs.
The Board sets and oversees the parameters for the
Manager’s activities, including asset allocation, gearing
and risk management. The Board seeks to engage with
the Manager in a collaborative and collegiate manner,
encouraging open and constructive discussion and
debate, whilst also ensuring appropriate and regular
challenge.
The Board receives presentations from the Fund
Manager and Deputy Fund Manager at each Board
meeting and receives timely and accurate information
from the Manager. There is continuous engagement and
dialogue between Board meetings with the Fund
Managers and Corporate Secretary, as well as with
other representatives, as and when necessary, with
communication channels remaining open and
information, ideas and advice flowing freely.
The Board meets with other key representatives of the
Manager throughout the year to develop strategy,
assess internal controls and risk management, and to
discuss the sales and marketing activities to promote
the success of the Company and raise its profile.
The Board, with the assistance of the Nominations
Committee, formally reviews the performance and terms
of appointment of the Manager at least annually (see
pages 48, 49 and 56 for further details).
The portfolio activities undertaken by the Manager and
the impact of decisions are set out in the Fund
Managers’ Report on pages 15 to 19.
The Board places great value on
the expertise and experience of
the Fund Manager and Deputy
Fund Manager to execute the
investment objective and deliver
returns for shareholders, and on
the Manager’s internal controls
and risk management. The
Board is confident that the
Company’s assets are well-
managed and managed in line
with the investment objective
and the parameters established
by the Board.
Other service providers
The Company needs to be
supported by experienced and
capable third parties for all the
services required in order to be
able to function effectively and
provide the outcome desired by
shareholders.
The Manager maintains the overall day-to-day
relationship with the other service providers and reports
back to the Board on performance.
The Board regularly considers the support provided by
the service providers, including quality of service,
succession planning, costs and any potential
interruption of service or other risks to provision.
The Board evaluates the terms of engagement and the
control environments in place at each service provider
and, through the Nominations Committee, formally
assesses their appointment annually.
The Board is confident that
Janus Henderson has developed
and maintains good working
relationships with all of the
Company’s third-party suppliers
and ensure that the costs are
commensurate with the services
provided.
The City of London Investment Trust plc Annual Report 2026
29
Promoting the Company’s Success (continued)
Why we engage How we engage Outcome
Investee companies and the environment
Stewardship is a fundamental
part of the Manager’s long-term,
active approach to investment
management. Strong ownership
practices, including engagement
with management and boards,
can help protect and enhance
long-term shareholder value.
The Board is conscious of the
need to take appropriate
account of broader ESG
concerns.
The Board discusses stock selection, asset allocation
and engagement with investee companies with the Fund
Managers at each Board meeting.
The investment team regularly conducts face-to-face
and/or virtual meetings with portfolio companies’
management teams to enable them to understand
current trading and prospects for their businesses. The
Manager has a dedicated Responsible Investment and
Governance Team that the Fund Managers can utilise
when making investment decisions and voting. The
Manager’s approach to engagement and voting is set
out on pages 34 to 37.
The Company is a responsible
investor.
Board decision-making
In making decisions, the Board seeks to promote the success
of the Company for the benefit of shareholders as a whole.
Italso considers the interests of other stakeholders and the
other factors set out in Section 172 of the Companies Act
2006. In addition to its regular, detailed consideration of the
Company’s investment portfolio, strategy and performance,
the Board discussed and made the following key decisions
during the year under review.
Dividends paid to shareholders
The Company’s investment objective recognises the
importance of dividend income to shareholders. The Board
reviewed revenue forecasts for the current and following
financial year, supported by scenario modelling and an
assessment of the economic and geo-political outlook. It also
considered the long-term sustainability of the dividend and
the Company’s capacity to continue increasing it. Following
this review, the Board approved a 4.0% increase in the annual
dividend for the year ended 30 June 2026. This marked the
60th consecutive year of dividend growth, while £0.9 million
was added to the revenue reserve.
Share capital
As explained on page 24, the Board’s policy is to manage
theCompany’s share price so that it reflects closely the
underlying NAV, while smoothing volatility and encouraging a
liquid market in the shares. The Board considers it beneficial
to shareholders for the Company to issue shares when they
trade at a premium to NAV and to buy back shares when they
trade at a discount. Both actions enhance NAV, and issuing
shares also spreads certain costs across a larger asset base.
The Board reconfirmed this policy at its annual strategy
meeting. During the year, the Company’s shares traded largely
at a premium to NAV. To meet investor demand, the Company
sold all the remaining 9 million shares that were being held in
treasury and issued more than 12 million new shares.
Marketing and promotion
Retail investors represent a significant and growing proportion
of the Company’s share register and remain an important
source of demand for its shares. To maintain the momentum
of the retail advertising campaign and mark the Company’s
60th consecutive year of dividend growth, the Board
approved an increase in the marketing budget for the
calendar year 2026. The total marketing spend for the year
ended 30 June 2026 was £0.6 million (including VAT) and
remains immaterial in the context of the Company’s assets
and revenue account. Mr Dhillon was appointed as the
Board’s Marketing Lead to oversee marketing activities
andmonitor the increased budget. He liaises directly with
theJanus Henderson investment trust marketing team.
TheBoard also established a marketing sub-group, which
meets on an ad hoc basis as required.
Articles of Association
The Board reviewed the Company’s Articles of Association,
which were last updated in 2014. A number of amendments
tomodernise these and ensure they are aligned with current
best market practice and latest regulations are being
proposed for shareholder approval at the forthcoming AGM.
Further details are set out in the Explanation of the
Resolutions on pages 101 to 103.
The City of London Investment Trust plc Annual Report 2026
30
Managing Our Risks
The Board, with the assistance of the Manager, has carriedout a robust assessment of the principal and emerging risks and
uncertainties facing the Company, including those that would threaten its business model, future performance, solvency or
liquidity and reputation.
The Audit and Risk Committee maintains a detailed risk matrix which sets out the risks facing the Company and the steps taken
to mitigate these. This is reviewed at each Committee meeting, and the full Board also regularly considers the principal and
emerging risks facing the Company. The mitigating measures include a schedule of investment limits and restrictions,
appropriate to the Company’s investment objective and policy, within which the fund management team must operate. In
addition, one of the meetings of the Audit and Risk Committee held each year is dedicated to a review of risk management and
internal controls.
During the year, the Audit and Risk Committee began formalising the mapping of existing key controls to the material controls
reporting requirement under Provision 34 of the AIC Code of Corporate Governance. The enhanced reporting requirements
under Provision 34 will apply to the Company for the financial year ending 30 June 2027.
As well as the principal risks, the Directors regularly consider emerging risks, defined as potential trends, sudden events or
changing risks which are characterised by a high degree of uncertainty in terms of the probability of them happening and the
possible effects on the Company. Should an emerging risk become sufficiently clear, it may be reclassified as a principal risk.
During the year under review, the Board did not identify any emerging risks which are not already encompassed within the
existing principal risks.
The principal risks which have been identified and the steps taken by the Board to mitigate these are set out in the table below.
The principal financial risks are detailed in note 16 to the financial statements. Details of how the Board monitors the services
provided by Janus Henderson and its other suppliers, and the key elements designed to provide effective internal control, are
explained further in the internal controls section of the Corporate Governance Report on pages 49 and 50.
Principal risk Trend Key controls and mitigating measures
Portfolio and market price
Although the Company invests almost entirely in
securities that are listed on recognised markets, share
prices may move rapidly. The companies in which
investments are made may operate unsuccessfully, or
fail entirely. A fall in the market value of the Company’s
portfolio would have an adverse effect on equity
shareholders’ funds.
The Board reviews the portfolio at each Board meeting
andreceives regular reports from the Company’s brokers.
Adetailed liquidity report is considered on a regular basis.
The Fund Managers closely monitor the portfolio and
mitigate this risk through diversification of investments.
TheFund Managers periodically present the Company’s
investment strategy in respect of current market conditions
to the Board. Performance relative to the FTSE All-Share
Index, other UK equity income trusts and IA UKEquity
Income OEICs is also monitored.
The majority of the Company’s investments are multi-national
companies with operations in local markets and are
therefore not dependent on the UK economy.
Dividend income
A reduction in dividend income from investee companies
could adversely affect the Company’s ability to maintain
its record of paying a growing dividend to shareholders
each year.
The Board reviews income forecasts at each meeting. The
Fund Managers consider the sustainability of the dividend
foreach stock held and provide scenario analyses for each
Board meeting.
The Board monitors the level of the Company’s reserves as
well as income received in the period. The Company has
revenue reserves of £52.3 million (before payment of the
fourth interim dividend) and distributable capital reserves of
£459.4million.
Unchanged on the previous year
The City of London Investment Trust plc Annual Report 2026
31
Managing Our Risks (continued)
Principal risk Trend Key controls and mitigating measures
Investment activity, gearing and performance
An inappropriate investment strategy (for example, in
terms of asset allocation or the level of gearing) may
result in underperformance against the Company’s
benchmark and/or its peer group.
Investment performance could be disrupted over the
longer term by the impact of potentially catastrophic
events, whether man-made (for example extreme
political tensions, conflict, poor trade relations, wide-
scale financial market disruption), or natural disasters,
whether arising from climate change, adverse weather
events or disease.
At each meeting, the Board reviews investment performance,
both absolute and relative to the benchmark and the
Company’s peer group, the level of gearing, the level of
premium/discount, income forecasts and a schedule of
expenses. It also has an annual meeting focused on strategy
at which these matters are considered in more depth.
Tax and regulatory
Changes in the tax and regulatory environment,
including the Company failing to identify and implement
any necessary regulatory change, could adversely affect
the Company’s financial performance, including the
return on equity, or demand for the Company’s shares.
These may also include government measures which
damage the market appeal of investment trusts for
investors.
A breach of Section 1158/9 could lead to a loss of
investment trust status, resulting in capital gains realised
within the portfolio being subject to corporation tax.
Abreach of the UK Listing Rules could result in
suspension of the Company’s shares, while a breach
ofthe Companies Act 2006 could lead to criminal
proceedings, or financial or reputational damage.
The Manager provides its services, inter alia, through suitably
qualified professionals and the Board receives internal control
reports produced by the Manager on a quarterly basis, which
confirm legal and regulatory compliance. The Fund Managers
also consider tax and regulatory change in their monitoring of
the Company’s underlying investments.
Operational
The disruption or failure of technology systems used
bythe Manager or its Administrator (BNP Paribas)
(forexample, cyber attacks, failed software updates or
data breaches) could profoundly impact the accurate
reporting and monitoring of the Company’s financial
position. The Company is also exposed to the
operational risk that one or more of its suppliers may
notprovide the required level of service.
The Board monitors the services provided by the Manager
and its other suppliers and the Audit and Risk Committee
receives reports on the key elements in place to provide
effective internal control.
Cyber security is closely monitored and the Audit and Risk
Committee receives regular updates from Janus Henderson’s
Chief Information Security Officer.
The Board considers the loss of the Fund Manager as a risk
but this is mitigated by the depth of experience of the team
atJanus Henderson and the appointment of the Deputy
FundManager.
Unchanged on the previous year
The City of London Investment Trust plc Annual Report 2026
32
The AIC Corporate Governance Code includes a requirement
for the Board to assess the future prospects for the Company,
and to report on the assessment within the Annual Report.
The Directors have completed their assessment and report as
set outbelow.
The Board considers that certain characteristics of the
Company’s business model and strategy are relevant to
thisassessment:
●
The Board seeks to deliver long-term performance by
theCompany.
●
The Company’s investment objective, strategy and policy,
which are subject to regular Board monitoring, mean
thatthe Company is invested mainly in readily realisable,
UK-listed securities and that the level of borrowings
isrestricted.
●
The Company is a closed end investment company and
therefore does not suffer from the liquidity issues arising
from unexpected redemptions.
●
The Company has an ongoing charge of 0.36%, which is
lower than other comparable investment trusts.
Also relevant are a number of aspects of the Company’s
operational agreements:
●
The Company retains title to all assets held by the
Custodian under the terms of a formal agreement with
theDepositary.
●
Longer-term fixed rate borrowing is in place, being 4.53%
secured notes 2029 (which are due to be repaid during the
five-year assessment period), 2.94% secured notes 2049
and 2.67% secured notes 2046 which are subject to
financial covenants with which the Company complied in
full during the year. Thevalue of long-term borrowing is
relatively small in comparison to the value of net assets,
being 4.0%.
●
Revenue and expenditure forecasts are reviewed by the
Directors at each Board meeting. This includes stress
testing of the forecast under different scenarios.
●
Cash is held with approved banks.
Three model scenarios are considered which evaluate the
impact on revenue reserves over a five year period. These range
from a worst-case scenario which includes low consensus
dividend estimates and significant dividend cuts of up to 50%
from specific sectors and investee companies, to a best-case
scenario with high consensus dividend estimates, no dividend
cuts in any specific sector and limited dividend cuts in specific
investee companies. Increasing dividend payments to
shareholders could continue under all three scenarios whether
through revenue, or supported by distributable capital reserves.
None of the results from the three scenarios would therefore
threaten theviability of the Company.
Covenant limits are tested to ascertain the level that net
assets would need to fall by to breach any covenant
conditions. Net assets would need to fall by amounts in
excess of £2.5 billion to breach covenants, with all other
factors remaining constant. The Board considers this to be
highly unlikely and therefore does not threaten the viability
ofthe Company.
In addition, the Directors carried out a robust assessment of
the principal risks and uncertainties which could threaten the
Company’s business model, including future performance,
liquidity and solvency, and considered emerging risks that
could have a future impact on the Company.
The principal risks identified as relevant to the viability
assessment were those relating to investment portfolio
performance, including climate change, and its effect on the
NAV, share price and dividends, and threats to security over
the Company’s assets. The Board took into account: the
liquidity of the Company’s portfolio; the existence of the longer-
term fixed rateborrowings; the effects of any significant future
falls in investment values and income receipts on the ability to
repay and renegotiate borrowings, grow dividend payments
and retain investors; and the potential need for share buybacks
to maintain a narrow share price discount.
The Directors assess viability over five-year rolling periods,
taking account of foreseeable severe but plausible scenarios.
The Directors believe that a rolling five-year period best
balances the Company’s long-term objective, its financial
flexibility and scope with the difficulty in forecasting economic
conditions affecting the Company and its shareholders.
TheDirectors have considered the current geopolitical and
macroeconomic uncertainties andthe potential for sudden
catastrophic events such as pandemics, conflict and climate
events, in particular the impact on income and the Company’s
ability to meet its investment objective. The Directors do not
believe that they will have a terminal impact on the viability of
the Company andits ability to continue in operation,
notwithstanding the short-term uncertainty these events could
cause in the markets and specific short-term issues, such as
energy and/or supply chain disruption, inflation and labour
shortages.
Based on their assessment, and in the context of the
Company’s business model, strategy and operational
arrangements set out above, the Directors have a reasonable
expectation that the Company will be able to continue in
operation and meet its liabilities as they fall due over the
five-year period.
The Company’s Viability
The City of London Investment Trust plc Annual Report 2026
33
How we integrate Environmental, Social
and Governance considerations in our
investment decisions
The Board believes that integrating ESG into investment
decision-making and ownership practices is an important
factor for delivering the investment outcomes our
shareholders seek. ESG considerations are therefore a fully
embedded component of the investment process employed
by the Fund Managers, and the wider Janus Henderson
investment teams. The Company integrates ESG but does not
pursue a sustainable investment objective or otherwise take
ESG factors into account in a binding manner. ESG integration
is the practice of incorporating material environmental/social
and governance information or insights in a non-binding
manner alongside traditional measures into the investment
decision process to improve long-term financial outcomes
ofportfolios. ESG related research is one of many factors
considered within the investment process.
Defining ESG
Environmental factors include climate change, use of natural
resources, pollution, waste management, water usage and
deforestation.
Social factors include corporate culture, diversity, health and
safety, community relations and supply chain management.
Governance factors include business ethics, board
composition, remuneration and shareholder rights.
Investment Considerations
Resilience of business models is crucial to the Company’s
investment strategy. The Company’s investment philosophy is
valuation driven, with a dividend yield considered the most
important measure of value. As such, a considerable amount
of time is spent by the Fund Managers identifying fundamental
factors, including ESG factors which may impact profits, cash
flow and dividends and ensuring that investee companies
have robust policies and processes in place to manage these.
Whilst no company is specifically excluded based on ESG
considerations, the Fund Managers would seek to avoid
companies where ESG risks are not sufficiently considered or
managed. As the Fund Managers strive to understand all
drivers of company performance, theyalso strive to
understand the risks. An evaluation of ESGfactors is integral
to this.
Governance is a key part of fundamental factor analysis with
good corporate governance supportive of long-term decision-
making and investment returns. The significance of
environmental and social factors can vary depending on the
sector and the region in which a company operates.
Nonetheless, each ESG factor, in addition to the quantitative
and qualitative assessments, is an important consideration
when evaluating the opportunity in an equity investment.
Fundamental factors considered vary, but may include:
Financial
Analysis
Dividend sustainability, free cash flow,
operating margin, balance sheet strength,
leverage, profitability, earnings growth.
Qualitative
Evaluation
Competitive position, industry trends,
business volatility, business model, barriers
to entry, exposure to disruption.
Environmental Pollution, carbon emissions, water usage,
waste management, resource use,
sustainable sourcing.
Social Health and safety, employee relations,
diversity and inclusion, employee
development, data privacy, supply chain
management.
Governance Shareholder alignment, board
independence, shareholder rights, business
ethics, voting structure, remuneration, board
experience, accounting standards.
Valuation Dividend yield, free cash flow, price to
earnings ratio (“P/E”), earnings per share
(“EPS”), enterprise value/earnings before
interest, tax, depreciation and amortisation
(“EV/EBITDA”) and dividend cover.
The Manager engages MSCI (see footnote 1 on page 37),
aleading firm researching and rating ESG factors globally,
tosupport investment research. MSCI can also be used to
monitor the holdings within the Company and analyse its
overall ESG risk exposure.
Weighted average ESG score
0 2 4 6 8 10
Benchmark
City of London
8.2
7.9
Source: MSCI, City of London and Index weights as at 30 June 2026
MSCI Risk data as at 30 June 2026
MSCI provides an ESG quality score which measures the
ability of the underlying holdings to manage key medium to
long-term risks and opportunities that arise from ESG factors.
It is based on MSCI ESG ratings and is measured on a scale
of 0 to 10 (0 being worst and 10 being best). For this metric
the Company scores 8.2 and the benchmark 7.9. The risk
ratings are aggregated for the Company’s portfolio and the
benchmark, the FTSE All-Share Index. The Company’s ESG
risk is 3.8% lower than the benchmark, as assessed by MSCI.
ESG
The City of London Investment Trust plc Annual Report 2026
34
Distribution of MSCI ESG Fund Ratings Universe
CCC B BB BBB A AA AAA
City of London
Benchmark
% of portfolio
0
10
20
30
40
50
LAGGARD AVERAGE LEADER
Source: MSCI, City of London and Index weights as at 30 June 2026
MSCI Risk data as at 30 June 2026
MSCI’s ESG ratings are ranked using a seven-point AAA-CCC
scale. Both the Company and the benchmark score AA
ratings using this analysis. The Company has no exposure to
companies with the lowest CCC scores, with more exposure
to AAA rated stocks than the benchmark.
Carbon emissions
0
1,000,000
500,000 1,500,000 2,000,000 2,500,000
Benchmark
City of London
Tons CO2e
3,000,000 3,500,000
Source: MSCI, City of London and Index weights as at 30 June 2026
MSCI Risk data as at 30 June 2026
The above chart shows the direct and indirect carbon
emissions of the holdings in both the Company and the
benchmark. These emissions are based on the assets under
management of the Company compared to an equivalent
portfolio of assets under management invested in the
benchmark. Scope 1 and 2 emissions are the direct emissions
from a company’s operations and scope 3 emissions are
indirect emissions. The Company’s direct and indirect carbon
emissions are 21.9% lower than the benchmark.
Engagement and Stewardship
Stewardship is a fundamental part of the Manager’s long-
term, active approach to investment management. Strong
ownership practices, including engagement with management
and boards, can help protect and enhance long-term
shareholder value. Janus Henderson is a signatory to the UK
Stewardship Code and is a founding member of the UN
Principles of Responsible Investment (“UN PRI”). Additionally,
Janus Henderson is a supporter of a number of broader ESG
initiatives such as the Access to Medicine Index which aims to
improve availability of health care in developed and emerging
markets and Climate Action 100+, an investor-led initiative to
engage with heavily emitting companies to reduce their
greenhouse gas emissions.
As a part of the research process, portfolio managers and
analysts meet frequently with company management, senior
executives and boards, with Janus Henderson conducting
thousands of meetings per year. These meetings typically
occur prior to initiating a position and throughout the holding
period. The portfolio managers develop long-term
relationships with the management of firms in which they
invest. Should concerns arise over a firm’s practices or
performance, they would seek to leverage these constructive
relationships by engaging with company management or
express their views through voting on management or
shareholder proposals. Escalation of engagement activities
depends upon a company’s individual circumstances.
Voting
The Board believes that voting at general meetings is an
important aspect of corporate stewardship, and a means of
signalling shareholder views on board policy, practices and
performance. The Board has delegated responsibility for voting
the rights attached to the shares held in the Company’s portfolio
to the Manager, who actively votes at shareholder meetings
and engages with companies as part of the voting process.
Voting decisions are guided by the best interests of the
investee companies’ shareholders and made in consultation
with the Fund Managers, who have an in-depth understanding
of the respective company’s operations. Voting decisions
aretaken in keeping with the provisions of the Manager’s
Responsible Investment Policy, which sets out the Manager’s
approach to corporate governance, corporate responsibility
and compliance with the Stewardship Code, and is
publiclyavailable on the Manager’s website at
www.janushenderson.com. To retain oversight of the
process, the Directors regularly receive reports on how the
Manager has voted the shares held in the Company’s
portfolio. They also review the Manager’s Responsible
Investment Policy and Proxy Voting Policy and Procedures at
least annually.
In the period under review, the shares in the Company’s
portfolio were voted in respect of 85 meetings. The level of
governance in leading global companies is generally of a high
ESG (continued)
The City of London Investment Trust plc Annual Report 2026
35
standard in terms of best practice, which meant support in
favour of the resolutions proposed by management was
warranted. However, in respect of 4 resolutions (<1% of
theresolutions proposed), support was not warranted
and,following discussion between the Fund Managers and
Janus Henderson’s governance team, the shares were voted
against the investee board recommendation. On occasion,
the Fund Managers take voting decisions after consultation
with the Chairman on behalf of the Board.
As an active manager, Janus Henderson’s preference is to
engage with management and boards to resolve issues of
concern rather than to vote against shareholder meeting
proposals. This approach is more likely to be effective in
influencing company behaviour. The Fund Managers therefore
actively seek to engage with companies throughout the year
and in the lead up to the annual shareholder meeting to
discuss any potentially controversial agenda items. However,
where they believe that proposals are not in shareholder
interests or where engagement proves unsuccessful, they will
vote against.
Voting record
88% of meetings where all
resolutions were voted in favour
12% of meetings with at least
one vote against or withheld
In terms of resolutions not supported, the principal area was
environment/social resolutions:
Environmental/social* 11
Governance 3
Director-related 2
Compensation 2
Other business** 2
Source: Janus Henderson using Institutional Shareholder Services (“ISS”)
categories
Note: Some meetings had more than one vote against management
* Environmental/social voting relates to where an improvement in reporting and
disclosures are needed by companies on environmental and/or social matters
** Janus Henderson routinely votes against proposals labelled ‘other business’.
Many companies put forward proposals labelled ‘other business’. This is
a request to allow the board and shareholders to raise other issues and
discuss them at the meeting. It is often a routine request, however as it could
potentially lead to subsequent approval of items without prior disclosure to
minority shareholders, Janus Henderson routinely votes against these items
The Environment
As an investment company, the Company’s own direct
environmental impact is minimal. The Company has no
greenhouse gas emissions to report from its operations, nor
does it have responsibility for any other emissions producing
sources under the Companies Act 2006 (Strategic Report and
Directors’ Reports) Regulations 2013. For the same reasons,
the Company considers itself to be a low energy user under
the Streamlined Energy & Carbon Reporting (“SECR”)
regulations and therefore is not required to disclose energy
and carbon information.
The Manager recognises the importance of managing its
operational activities in a sustainable way and minimising any
adverse impact on the environment. In 2021, Janus Henderson
reached its target to reduce its carbon footprint for its own
operations by 15% per full-time employee (“FTE”) based on
2018 consumption levels. In 2022, Janus Henderson set new
five-year reduction targets for its operations relative to a
2019baseline:
●
reduction target of 29.4% in Scope 1 (fuel) and Scope 2
(electricity) emissions;
●
reduction target of 17.5% in Scope 3 (business travel,
freight, paper, water, waste) emissions; and
●
reduction target of 17.5% on water and waste
consumption by FTEs.
ESG (continued)
Engagement Example
The Fund Manager engaged with investee companies in
the tobacco sector to discuss the risks and opportunities
evolving from “next generation” nicotine products, such as
vapes/e-cigarettes, heated tobacco products and modern
oral (nicotine pouches). Job Curtis (Fund Manager) and
Charlotte Nisbet (Janus Henderson Responsible
Investment & Governance Analyst) met with executives of
Imperial Brands (on 13 August 2025) and British American
Tobacco (on 23 September 2025).
Both companies explained the complex market of “next
generation” product development and regional regulation
differences. New product development and growth is
determined by what is permitted by regulators and consumer
preferences. A key risk is the semi-illicit market for products,
including Chinese produced vapes and oral nicotine,
sometimes targeted at the youth market. Both companies
would welcome more regulation to restrict this activity.
From this engagement, we gained comfort that Imperial
Brands and British American Tobacco were responding to
the growing demand for “next generation” nicotine
products in a responsible way.
The City of London Investment Trust plc Annual Report 2026
36
ESG (continued)
Janus Henderson has been certified as aCarbonNeutral
®
company since 2007 and retained that certification throughout
2025, offsetting its residual emissions by financing renewable
energy, afforestation and landfill methane capture projects.
Janus Henderson discloses its carbon emissions annually
through regulatory and voluntary reporting frameworks,
including the CDP, aswell as in its 2025 Responsibility Report.
Janus Henderson produces product-level Task Force on
Climate-Related Financial Disclosures (“TCFD”) reports for
funds in scope as well as an entity-level TCFD report.
Thesereports include an overview of the climate-related
governance, strategy, risk management, and metrics and
targets of Janus Henderson and its portfolios. Product-level
metrics include absolute carbon emissions, carbon
footprint,weighted average carbon intensity, implied
temperature rise and climate scenario analysis (Climate
Valueat Risk). JanusHenderson’s TCFD Report specific
toCity of London isavailable on the Company’s website
atwww.cityinvestmenttrust.com.
1 Certain information contained herein (the “Information”) is sourced from/copyright of MSCI Inc, MSCI ESG Research LLC, or their affiliates (“MSCI”), or information
providers (together the “MSCI Parties”) and may have been used to calculate scores, signals, or other indicators. The Information is for internal use only and may not
be reproduced or disseminated in whole or part without prior written permission. The Information may not be used for, nor does it constitute, an offer to buy or sell,
or a promotion or recommendation of, any security, financial instrument or product, trading strategy, or index, nor should it be taken as an indication or guarantee of
any future performance. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the fund’s assets under management
or other measures. MSCI has established an information barrier between index research and certain Information. None of the Information in and of itself can be used
to determine which securities to buy or sell or when to buy or sell them. The Information is provided “as is” and the user assumes the entire risk of any use it may
make or permit to be made of the Information. No MSCI Party warrants or guarantees the originality, accuracy and/or completeness of the Information and each
expressly disclaims all express or implied warranties. No MSCI Party shall have any liability for any errors or omissions in connection with any Information herein,
orany liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notified of the possibility of such damages
The City of London Investment Trust plc Annual Report 2026
37
Governance
38
Directors and Fund Managers
All Directors are non-executive and independent of Janus Henderson.
All Directors are members of the Nominations Committee.
The Audit and Risk Committee comprises Sally Lake, Ominder Dhillon, Ted Holmes and Clare Wardle.
The Insider Committee comprises the Chairman and Senior Independent Director or, in their absence any two Directors.
Sally Lake
Position: Chair of the Audit and
RiskCommittee
Date of Appointment:
1 August 2024 (Chair of the Audit and
Risk Committee from 31 October 2024)
Skills and Experience: Sally is a fellow
of the Institute of Actuaries, and has
spent themajority of her career within
non-life commercial insurance. During
her time at Beazley plc, from 2006 to
2024, she held avariety of roles,
including within both business units and
the actuarial and finance functions.
In her final five years with Beazley, Sally
served as group CFO during a period of
significant change both within the
business, within the finance and
accounting function as well as the wider
macro environment. Aspart of her role,
she also was responsible for
investments, investor relations, actuarial,
corporate governance, compliance,
finance change and modernisation as
well as all aspects of finance. She was a
member of the plc board until May 2024,
as well as a number of subsidiaries.
Sally is a very proud and active DEI
advocate. She was the executive
sponsor for HM Treasury’s Women in
Finance Charter, as well as a supporter
of a number of changes at Beazley to
improve inclusion and representation for
women, families and people of colour.
Current External Appointments:
None.
Sir Laurie Magnus CBE
Position: Chairman of the Board and
Nominations Committee
Date of Appointment:
1 March 2020 (Chairman on
27 October 2020)
Skills and Experience: Sir Laurie
hasover 45 years of experience in
corporate finance markets and over
20years as a member of investment
supervisory bodies, including as a
director of various investment trusts.
Hewas Chairman of Pantheon
International plc until October 2022.
Hehas held senior positions at financial
institutions including Samuel Montagu,
Phoenix Securities, Donaldson Lufkin
&Jenrette and Lexicon Partners (latterly
as Chairman prior to its merger with
Evercore). He iscurrently a non-
executive senior adviser toEvercore’s
European business.
Current External Appointments:
Sir Laurie is the Independent Adviser
tothe Prime Minister on Ministerial
Standards. In the not-for-profit sector,
heis a trustee of the Migration
Museum.
Ominder Dhillon
Position: Director
Date of Appointment:
1 September 2021
Skills and Experience: Ominder brings
to the Board strong investment
knowledge across public and private
markets, sustainable investing, sales and
marketing expertise and a good
understanding of governance and risk
management. He was, until January
2020, Global Head of Institutional
Distribution at M&G plc. Prior to that,
from 2011 to 2015, he was Head of
Distribution at Impax Asset
Management. He was also formerly
Head of UK and Ireland at Fidelity
International, Director of Institutional
Sales at Scottish Widows Investment
Partnership and a trustee of UK charity
Facing History and Ourselves.
Current External Appointments:
Non-executive Director of Fidelity Special
Values PLC and a Director of Ocris
Partners SL.
Directors
The City of London Investment Trust plc Annual Report 2026
39
Fund Manager
Job Curtis has been City of London’s Fund Manager since 1 July 1991. After graduating from Oxford University
in 1983 with a BAHons in Philosophy, Politics and Economics, he joined Grieveson Grant stockbrokers as
atrainee. In 1985, he joined Cornhill Insurance as an assistant fund manager and then moved to Touche
Remnant in 1987 where he became a fund manager. Touche Remnant was taken over by Henderson Group
plc in 1992 and Job is currently a member of Janus Henderson’s Global Equity Income team.
Deputy Fund Manager
David Smith is a Fund Manager on the Janus Henderson Global Equity Income team, a position he has held
since 2008. David manages Henderson High Income Trust plc, a number of UK equity institutional funds and
co-manages the Janus Henderson Cautious Managed Fund. He joined Janus Henderson in 2002, initially
working in operations and progressing to the UK Equities team, and is now part of the Global Equity Income
team. David graduated with a BSc degree (Hons) in Chemistry from Bristol University. He holds the Investment
Management Certificate and the Chartered Financial Analyst designation.
Directors and Fund Managers (continued)
Clare Wardle
Position: Senior Independent Director
Date of Appointment:
1 November 2019
Skills and Experience: Clare brings to the
Board considerable international experience
in risk, governance, competition and
compliance. Clare was General Counsel
and Company Secretary of Coca-Cola
Europacific Partners plc until March 2026.
She played a leading role in the growth of
Coca-Cola Europacific from a $15 billion
market cap company operating in Europe to
a $33billion market cap company operating
in 30 countries. Previously she was Group
General Counsel and Company Secretary
of Kingfisher, Europe’s largest home
improvement group. Before that, Clare was
Commercial Director, General Counsel and
Company Secretary of Tube Lines, held a
number of senior roles in Royal Mail Group
and worked atwhat is now Hogan Lovells.
She is currently chair of a fundraising
committee for Royal British Legion
Industries. She was also formerly a non-
executive Director of ViaCode Limited, Chair
of Basketball England, Senior Independent
Director of Modern Pentathlon GB and a
trustee of the Friendly Almshouses.
Current External Appointments:
None.
Robert Holmes (Ted)
Position: Director
Date of Appointment:
1 January 2018
Skills and Experience: Ted has a
strong background in investment
management. Ted joined the Board
following a twenty-year career at
UBS Asset Management. During that
time, he worked as a managing
director in both the Chicago office
(previously Brinson Partners) and
London office (previously Phillips and
Drew) in a variety of positions, from
analyst to European Head of
Equities. Prior to UBS, he worked for
Ernst & Young in Washington, D.C.
He has an MBA from the University
of Chicago Booth School of
Business, is a Chartered Financial
Analyst and is a Certified Public
Accountant.
Current External Appointments:
Non-executive Director and Chair of
the Audit Committee of River UK
Micro Cap Limited and Director of
Octopus AIM VCT 2 plc and Blue
Ocean Investment Partners Limited.
The City of London Investment Trust plc Annual Report 2026
40
Directors’ Report
The Directors present their report and the audited financial
statements for the year ended 30 June 2026.
The Investment Portfolio on pages 20 and 21, Corporate
Governance Report, Audit and Risk Committee Report and
Nominations Committee Report on pages 44 to 56, Statement
of Directors’ Responsibilities on page 61, explanations to the
AGM resolutions on pages 101 to 104 and Securities
Financing Transactions, Alternative Performance Measures
and other information on pages 90 to 97 form part of the
Directors’ Report.
Results and Dividends
The results for the year are set out in the financial statements.
First and second interim dividends of 5.40p each, a third
interim dividend of 5.65p and a fourth interim dividend of
5.70p, totalling 22.15p per share, have been declared and paid
in respect of the year to 30June 2026, an increase of4.0%
over the previous year. Seenote 10 on page 79 for more
information. No final dividend is being proposed.
A review of the year and the outlook for the forthcoming year
can be found in the Strategic Report.
Directors
The Directors of the Company are listed on pages 39 and 40.
All served throughout the period.
In accordance with the recommendations ofthe AIC Corporate
Governance Code, all Directors will offer themselves for
re-election at the forthcoming AGM.
The beneficial interests of the Directors and their connected
persons in the securities of the Company as at 30June 2026
are set out in the Directors’ Remuneration Report on page 59.
Details of Directors’ insurance and indemnification are set out
on page 48.
Share Capital
There are no restrictions on the transfer of the Company’s
share capital and there are no shares or stock which carry
specific rights with regards to control of the Company. The
Company is not aware of any agreements or arrangements
between holders of securities which would result in
restrictions on the transfer of securities or voting rights.
The Company’s equity and non-equity share capital comprises:
Ordinary shares of 25p nominal value each
The voting rights of the ordinary shares on a poll are one vote
for every 15 shares held. At the beginning of the year, there
were 502,664,868 ordinary shares in issue, of which 9,147,762
shares were held in treasury. Accordingly, there were
493,517,106 shares in issue with voting rights. During the year,
the Company sold from treasury/issued a total of 21,555,000
shares with a nominal value of £5,388,750 and representing
4.3% of the shares in issue at the beginning of the year. This
figure includes 9,147,762 shares sold from treasury and the
issue of 12,407,238 new shares. The shares were sold/issued
to Cavendish Capital Markets Limited at a price range of
497pto 580p per share for total proceeds (net of
commissions) of £114,836,000. No shares were bought back
during the year.
At 30 June 2026, the number of ordinary shares in issue was
515,072,106, with no shares held in treasury.
Since 30 June 2026 and up to 11 September 2026, being the
last practicable date prior to publication of the Annual Report,
770,000 new shares have been issued. No shares have been
bought back since the year end.
Cumulative first preference stock
The voting rights of the first preference stock on a poll are one
vote per £10 of stock held. At 1 July 2025 and at 30 June
2026 there was £301,982 of first preference stock in issue.
Non-cumulative second preference stock
Second preference stockholders have no rights to attend and vote
at general meetings (except on the winding-up of the Company
or if dividends are in arrears). At 1 July 2025 and at 30 June
2026 there was £507,202 of second preference stock in issue.
Non-cumulative preferred ordinary stock
The voting rights of the preferred ordinary stock on a poll are
one vote per £20 of stock held. At 1 July 2025 and at 30 June
2026 there was £589,672 of preferred ordinary stock in issue.
Further details on the first and second preference stock and
the preferred ordinary stock are contained in note 15 on
pages 81 and 82.
Total voting rights
At 30 June 2026, the total voting rights in the Company were
34,397,822, comprising 34,338,140 ordinary share voting rights
(99.8%), 30,198 first preference stock voting rights (0.1%) and
29,484 preferred ordinary stock voting rights (0.1%).
Shareholder authorities
The Directors seek annual authority from the shareholders to
allot new ordinary shares, to dis-apply the pre-emption rights
of existing shareholders and to buy back, for cancellation or to
be held in treasury, the Company’s ordinary shares. In
addition, the Directors seek annual authority to buy back and
cancel the Company’s preferred and preference stocks.
The Directors will once again be seeking to renew the
authorities to allot and repurchase the ordinary shares at the
upcoming AGM, when the existing authorities will expire.
Detailsare set out in the Notice of Meeting on pages 99 to 104.
The City of London Investment Trust plc Annual Report 2026
41
Holdings in the Company’s Shares
There are no declarations of interests in the voting rights of
the Company as at 30 June 2026 in accordance with the
Disclosure Guidance and Transparency Rules of the FCA.
No changes have been notified in the period from 1 July 2026
to 11 September 2026.
Fund Managers’ Interests
As at 30 June 2026, Job Curtis, the Fund Manager, has a
beneficial interest in 320,258 shares and a non-beneficial
interest in 18,700 shares and David Smith, the Deputy Fund
Manager has a beneficial interest in 56,792 shares.
Related Party Transactions
The Company’s transactions with related parties in the year
were with the Directors and the Manager. There were no
material transactions between the Company and its Directors
during the year and the only amounts paid to them were in
respect of expenses and remuneration for which there were
no outstanding amounts payable at the year end.
In relation to the provision of services by the Manager, other
than fees payable by the Company in the ordinary course of
business and the provision of marketing services, there were
no material transactions with the Manager affecting the
financial position of the Company during the year under
review. More details on transactions with the Manager,
including amounts outstanding at the year end, are given
innote 23 on page 88.
Financial Risk Management
The principal risks and uncertainties facing the Company are
set out on pages 31 and 32. The Company’s financial risk
management policies and procedures, including its exposure
to market price, currency, interest rate, liquidity and credit
risks, are set out in note 16 to the financial statements on
pages 82 to 86.
Greenhouse Gas Emissions
The Company’s environmental statements are set out in the
Strategic Report on pages 34 to 37.
Annual General Meeting
The AGM will be held on 29 October 2026 at 1.00pm. The
Board invites shareholders to attend the meeting at the
registered office at 201 Bishopsgate, London EC2M 3AE. The
Meeting will include a presentation by the Fund Manager, Job
Curtis, and Deputy Fund Manager, David Smith. Shareholders
will also be able to join the Meeting via Zoom webinar by
registering at www.janushenderson.com/cty-agm.
Voting at the meeting will be held on a poll. Joining the
meeting electronically via the Zoom webinar will not constitute
formal attendance for quorum or voting purposes and
shareholders will not be able to vote live through the platform.
The Board therefore requests all shareholders, and
particularly those who cannot attend physically, tosubmit
their votes by completing a Form of Proxy. Shareholders with
shares held in their own names will receive a Form of Proxy
enabling them to vote; shareholders holding shares through
nominee accounts, such as through ashare dealing service or
platform, should contact their provider directly and ask them
to submit the proxy votes ontheir behalf.
Instructions for attending the AGM and details of
resolutionsto be put to the AGM are included in the
NoticeofAGM on pages 98 to 106. If shareholders would
liketo submitany questions in advance of the Meeting,
theyare welcome to send these to the Corporate Secretary
atitsecretariat@janushenderson.com.
The Board considers that the resolutions to be proposed
atthe AGM are in the best interests of the Company’s
shareholders as a whole. The Board therefore recommends
unanimously to shareholders that they vote in favour of each
of the resolutions, as the Directors intend to do in respect
oftheir own beneficial holdings.
Disclosure ofInformation to Auditor
Each of the Directors who were members of the Board at the
date of approval of this report confirms that, to the best of
their knowledge and belief, there is no information relevant to
the preparation of the Annual Report of which the Company’s
Auditor is unaware and they have taken all the steps a Director
might reasonably be expected to have taken to be aware of
relevant audit information and to establish that the Company’s
Auditor is aware of that information.
Re-appointment of Auditor
Ernst & Young LLP (“EY”) have indicated their willingness to
continue in office as Auditor and resolutions proposing their
re-appointment and authorising the Audit and Risk Committee
to determine their remuneration forthe ensuing year will be
put to shareholders at the forthcoming AGM. Further
information inrelation to their re-appointment can be found in
the Auditand Risk Committee Report on pages 51 to 54.
UK Listing Rule 6.6.4
UK Listing Rule (“UKLR”) 6.6.4 requires the Company to
include certain information in a single identifiable section of
the Annual Report or a cross-reference table indicating
where the information is set out. The Directors confirm that
there are nodisclosures to be made in this regard, other
than in accordance with UKLR 6.6.1(6), the information for
which is detailed on page 41 under Share Capital.
Directors’ Report (continued)
The City of London Investment Trust plc Annual Report 2026
42
Directors’ Report (continued)
Securities Financing Transactions
The Company has appointed HSBC Bank plc as its lending
agent. All stocklending is carried out in line with the Securities
Lending Agreement and is overseen by the Depositary. Under
that Agreement, HSBC provides indemnification to the
Company against borrower default. As the Company
undertakes securities lending, it is required to report on
securities financing transactions (as defined in Article 3 of
Regulation (EU) 2015/2365, securities financing transactions
include repurchase transactions, securities or commodities
lending and securities or commodities borrowing, buy-sell
back transactions or sell-buy back transactions and margin
lending transactions). In accordance with Article 13 of the
Regulation, the Company’s involvement in and exposures
related to securities lending for the accounting period ended
30 June 2026 are detailed on pages 90 to 92.
Approval
The Directors’ Report has been approved by the Board.
By order of the Board
Janus Henderson Secretarial Services UK Limited
Corporate Secretary
15 September 2026
The City of London Investment Trust plc Annual Report 2026
43
The Board has two principal Committees: the Audit and Risk Committee and the Nominations Committee. The terms of
reference for these committees are available on the Company’s website at www.cityinvestmenttrust.com. The Company has
also established an Insider Committee, which would meet as required to assist the Board in meeting its obligations under the
Market Abuse Regulation.
Corporate Governance Report
Governance Structure
HSBC Bank plc
(Depositary and Custodian)
Ensure safe custody of the
Company’s assets, verification of
ownership and valuation
Computershare Investor
Services plc
(Registrar)
Maintain the register of members
andassist shareholders with queries
in respect of their shareholdings
Cavendish Capital Markets
Limited
(Corporate Broker)
Conduit between the stock market
and the Company, keeping the Board
updated on market conditions and
shareholder views
Nominations Committee
Purpose: Ensure the Board has a balance of skills, experience
and diversity, oversee performance evaluations of the Board
and its committees, and maintain an effective framework for
succession planning, with a formal approach to the
appointment ofDirectors
Ensure that the performance of service providers meets
expectations and their terms of engagement remain appropriate
Chairman: Sir Laurie Magnus
See pages 55 and 56 for the Nominations
Committee Report
Audit and Risk Committee
Purpose: Ensure the integrity of the financial reporting,
evaluate the effectiveness of the systems of internal control
and risk management, and oversee the relationship with the
external auditors
Chair: Sally Lake
See pages 51 to 54 for the Audit and Risk Committee Report
Third-party service providers appointed by the Board
Janus Henderson
Fund Management: Global Equity Income team with Job Curtis and DavidSmith as the
Company’s appointed Fund Manager and DeputyFundManager respectively
Sales, Marketing, Administration
Corporate Secretary: Janus Henderson Secretarial Services UK Limited
Alternative Investment Fund Manager: Janus Henderson Fund Management UK Limited
Board of Directors
Responsible for providing leadership, setting the investment objective and policy of the Company, establishing
anappropriately robust framework of internal control and risk management, and appointing and monitoring the
performance of the Company’s third-party service providers
Chairman: Sir Laurie Magnus
Senior Independent Director: Clare Wardle
The City of London Investment Trust plc Annual Report 2026
44
Corporate Governance Report (continued)
Corporate Governance
The Board is accountable to shareholders for the governance
of the Company’s day-to-day affairs and is pleased to report
to shareholders on the Company’s governance arrangements
and how the principles of the applicable codes have been
applied during the year under review.
Applicable Corporate Governance Codes
By virtue of the Company’s listing on the London Stock
Exchange, the Board is required to report on how the
principles of the 2024 UK Corporate Governance Code (“UK
Code”) have been applied. Being an investment company, a
number of the provisions of the UK Code are notapplicable
as the Company has no executive directors or internal
operations and all day-to-day activities are outsourced to
external service providers. The Board has therefore
considered the principles and recommendations of the
Corporate Governance Code published by the Association of
Investment Companies in August 2024 (“AIC Code”). The AIC
Code addresses the principles set out in the UK Code as well
as additional principles and recommendations on issues that
are of specific relevance to investment companies. The
Financial Reporting Council (“FRC”) has endorsed the
AICCode and confirmed that, by following it, the boards of
investment companies should fully meet their obligations in
relation to the UK Code and UK Listing Rule 6.6.6. TheBoard
considers that reporting against the principles and provisions
of the AIC Code provides more relevant information to
shareholders in terms of its governancearrangements.
The 2024 AIC Code applies to the Company’s financial year
ended 30 June 2026. The enhanced reporting requirements
under Provision 34 of the AIC Code relating to the Board’s
declaration on the effectiveness of material controls, will apply
for the year ending 30 June 2027. The preparatory work
undertaken during the year is described in the Strategic
Report on page 31.
The AIC Code and the UK Code can be found on the
respective organisations’ websites: www.theaic.co.uk and
www.frc.org.uk. The AIC Code includes an explanation of
how it adapts the principles and provisions set out in the UK
Code to make them relevant for investment companies.
Statement of Compliance
The Company has complied with the principles and provisions
of the 2024 AIC Code throughout the year to 30 June 2026
except as set out below.
The Company has no chief executive or other executive
directors. It therefore has no need to consider the
remuneration of executive directors and has notreported
further in respect of these provisions. In addition, the
Company does not have any internal operations and therefore
does not maintain an internal audit function. However, the
Audit and Risk Committee considers the need for such a
function at least annually (see page 49 for further information).
As the Company has no employees and has a small Board of
solely non-executive Directors, the Board has not established
a separate remuneration committee. The remuneration of
Directors is dealt with by the Board as a whole.
Given the business model operated by the Company and
theimportance of the role of the Manager in ensuring the
success of the Company, the Board believes that it remains its
responsibility to keep under review the level of service provided
by the Manager. It is assisted in this by the Nominations
Committee, as set out in the Nominations Committee Report
on pages 55 and 56. Accordingly, a separate Management
Engagement Committee has not beenformed.
The AIC Code includes two deviations from the UK Code
permitting the Chairman of the Board to be a member of
theAudit and Risk Committee and for their tenure to exceed
nineyears. The Company has not taken advantage of these
provisions and continues to comply with the provisions of
theUK Code in this respect.
Governance Overview
The Board is comprised entirely of non-executive Directors
and has constituted two principal committees: the Audit and
Risk Committee and the Nominations Committee. The Board
has also constituted an Insider Committee. The governance
structure and committee membership are set out on pages
39 and 44.
The Board engages third-party service providers to deliver the
operations of the Company. Janus Henderson has been
appointed to manage the investment portfolio and is the
Company’s Alternative Investment Fund Manager. Janus
Henderson also provides or manages the day-to-day
accounting, company secretarial, administrative, sales and
marketing activities. The Company has appointed a
Depositary, which in turn appoints the Custodian, responsible
for the safe custody of the Company’s assets, and a Registrar
to maintain the Register of Members and assist shareholders
with queries in respect of their holdings. The Board and its
Committees maintain oversight of the third-party service
providers through regular and ad hoc reporting. The Board
also meets annually with representatives from the Depositary
and Custodian to discuss amongst other matters
performance, service levels, their value for money, information
security and business resilience plans.
Board Leadership and Purpose
The Board has overall responsibility for the Company’s affairs
and for promoting the long-term success of the Company.
TheBoard is collectively responsible for providing leadership,
setting the investment objective and policy, appointing the
Company’s third-party service providers, establishing a robust
internal control and risk management system and monitoring
the performance delivered by service providers within the
established control framework. It is also responsible for setting
the Company’s standards and values and for ensuring that its
obligations to its shareholders and other stakeholders are
understood and met. Information relating to the Company’s
purpose and values can be found in the Business Model on
pages 23 and 24 andto the Board’s engagement with
stakeholders on pages 28 to 30.
The City of London Investment Trust plc Annual Report 2026
45
Division of Responsibilities
Role Primary responsibilities
Shareholders/
investors
●
Approving material changes to the Company’s investment policy.
●
Making decisions regarding changes to the Company’s constitution.
●
Electing and re-electing Directors to the Board, or removing them from office if deemed appropriate.
●
Determining the overall limit for Directors’ remuneration.
Chairman
●
Leading and managing Board business and ensuring the timely flow of information from service
providers to the Board, facilitating open, honest and constructive debate among Directors.
●
Leading the Nominations Committee in developing succession planning and the identification of
potential candidates for appointment to the Board (except when considering his own succession).
●
Leading the Board in determining its governance framework, culture and values.
●
Leading the Board’s relationship and engagement with shareholders and other stakeholders.
●
Managing the relationship with the Manager.
The role description for the Chairman is available on the Company’s website.
Senior Independent
Director
●
Acting as a sounding board for the Chairman and intermediary for the other Directors as necessary.
●
Leading the performance evaluation of the Chairman.
●
Acting as a channel of communication for shareholders in the event that contact through the
Chairman is inappropriate.
The role description of the Senior Independent Director is available on the Company’s website.
Independent non-
executive Directors
●
Providing independent judgement and constructive and effective challenge, especially to the
decisions of the Manager.
●
Scrutinising and holding to account the performance of the:
– Fund Managers in meeting the investment objective; and
– Manager in the promotion of the Company and day-to-day smooth operations of the Company’s
business.
●
Providing strategic guidance and offering specialist advice.
Committee Chairs
●
The leadership and governance of their Committee.
●
Maintaining the relationships with specialist service providers delivering services within the remit of
their Committee.
●
Reporting on the activities of their Committee to the Board.
●
Seeking approval from the Board for the responsibilities set out in their respective terms of
reference.
Company Secretary
●
Advising the Board on governance, regulatory and procedural matters.
●
Supporting the Chairman in planning Board and Committee business.
●
Minuting the proceedings of Board and Committee meetings.
●
Helping to ensure that Board and Committee processes operate effectively.
Manager (AIFM)
●
Promoting the Company’s investment proposition to professional and retail investors.
●
Making the necessary reporting to the FCA regarding the Company’s status as an AIF.
●
Providing accounting, company secretarial and other administrative services to the Company
ensuring compliance with the applicable statutory and regulatory provisions.
●
Coordinating the delivery of services provided by the Company’s other third-party service
providers.
Fund Managers
●
Selecting the stocks held within the portfolio.
●
Diversification and risk management through stock selection and size of investment.
●
Determining the volume and timing of acquisitions and disposals.
●
Determining the frequency and level of gearing within the overall limits set by the Board.
Corporate Governance Report (continued)
The City of London Investment Trust plc Annual Report 2026
46
Operation of the Board
The Board met formally seven times in the year to 30 June
2026. With effect from the current financial year, it is
anticipated that there will be six scheduled meetings each
year. Additional Board or Committee meetings are convened
when required. TheDirectors have regular contact with the
Fund Managers, Corporate Secretary and other employees
ofthe Manager between meetings.
The Board has a formal schedule of matters specifically
reserved for its decision, which includes setting strategy and
oversight of performance, risk management and internal
controls. All matters that are not delegated to the Manager
under the management agreement are reserved for the
Board’s decision. A copy of the schedule of matters reserved
is available on the Company’s website. A procedure for
Directors, in the furtherance of their duties, to take
independent professional advice at the expense of the
Company has been adopted.
At each meeting the Board reviews with the Fund Managers the
Company’s investment performance and compliance with
theapproved investment policy, and also considers financial
analyses and other reports of an operational nature. TheBoard
monitors compliance with the Company’s objective and
isresponsible for setting asset allocation, investment and
gearing limits within which the Fund Managers have discretion
to act.The Fund Managers take decisions as to the purchase
and sale of individual investments, although the Board has
responsibility for the approval of any investments in in-house
funds managed or advised by the Manager.
The Manager and Corporate Secretary ensure that all
Directors receive, in a timely manner, all relevant management,
financial, regulatory and other information to allow them to
discharge their responsibilities and to enable the Board (and
its Committees) to function effectively. Representatives of the
Manager attend each Board meeting enabling the Directors to
probe further on matters of concern. In addition, the Chairman
is invited to attend meetings of all the chairs of the investment
trust companies managed by Janus Henderson which provide
a forum to discuss industry matters, and then reports back to
the Board.
The Directors have direct access to the advice and services of
the Corporate Secretary, Janus Henderson Secretarial
Services UK Limited, which provides company secretarial
services, through its nominated chartered secretary, and
advises the Board on governance, regulatory and procedural
matters. The Corporate Secretary is a subsidiary of Janus
Henderson. It has its own reporting lines and controls in place
to ensure that there is a clear distinction between the two
entities to manage potential conflicts between the Company
and Janus Henderson.
Any correspondence from shareholders addressed to the
Chairman or the Board received at JanusHenderson’s offices
is forwarded to the Chairman inline with the established
procedures in place. Any correspondence is submitted to
thenext Board meeting. See page 28 for information about
how the Company communicates with shareholders.
Janus Henderson and BNP Paribas, which is engaged by
Janus Henderson, have arrangements in place by which their
staff may, in confidence, raise concerns about possible
improprieties in relation to financial reporting or other matters.
The Board, the Manager and the Corporate Secretary operate
in a supportive, co-operative and open environment.
The Board
Board composition and independence
Under the Company’s Articles of Association, the total
number of Directors shall not be less than three nor more than
seven. Asat the date of this report, the Board comprises five
non-executive Directors, whose biographies are included
onpages 39 and 40. Thesebiographies demonstrate the
breadth of investment, financial, commercial and professional
experience relevant totheir positions as Directors.
Sir Laurie Magnus was appointed as Chairman of the Board
on 27 October 2020. Sir Laurie was independent on
appointment in accordance with the criteria set out in the AIC
Code and has no relationships that may create a conflict
ofinterest between his interests and those of shareholders.
Details of his other significant commitments can be found on
page 39. Following review by the Nominations Committee as
part of the performance evaluation, the Board is satisfied that
Sir Laurie has sufficient time to devote to the Company.
The independence of the Directors is determined with
reference to the AIC Code. The Nominations Committee
considers the independence of each Director at least annually
by reviewing their other appointments and commitments, as
well as their tenure of service and any connection they may
have with the Manager.
Following evaluation, the Nominations Committee determined
that all Directors continued to be independent in character
and judgement and that their individual skills, broad business
experience and knowledge and understanding of the
Company were of benefit to shareholders. All Directors are
considered by the Board to be independent of the Manager
and free of any relationship which could materially interfere
with the exercise of their independent judgement.
There were no contracts subsisting during or at the end of
theyear in which any Director is or was materially interested
and which is or was significant in relation to the Company’s
business. No Director has a contract of service with the
Company and there are no agreements between the
Company and its Directors concerning compensation
forlossof office.
Appointment and retirement
The Board may appoint Directors at any time and any Director
so appointed will stand for election by shareholders at the
next AGM following appointment. Each Director receives a
letter of appointment that sets out, amongst other matters,
what is expected of them in terms oftime commitment.
Corporate Governance Report (continued)
The City of London Investment Trust plc Annual Report 2026
47
In keeping with the provisions of the AIC Code, the Board
hasadopted a policy for all Directors to retire and stand for
re-election annually at each AGM.
Under the Articles of Association, shareholders may remove
aDirector before the end of their term by passing an ordinary
resolution at a general meeting.
The Board considers a potential candidate’s other
commitments on appointment and then annually through the
performance evaluation process to ensure that Directors have
sufficient time to commit to the Company. A schedule of
Directors’ other commitments is reviewed at each Board
Meeting and Directors are required to seek the Chairman’s
approval prior to accepting further appointments.
Tenure
The Board’s policy for Directors, including the Chairman, is
that they serve for no more than nine years, other than in
exceptional circumstances and where it considers this to be in
the best interests of the Company. This ensures the regular
refreshment of the Board and its Committees and forms
anintegral part of the Board’s succession planning.
In advance of each AGM, the Nominations Committee will
consider and make recommendations to the Board about
whether it is appropriate for eligible Directors to be
recommended for re-election, taking into account the results
of the annual performance evaluation andthe ongoing
requirements of the AIC Code.
Professional development
Newly appointed Directors are offered a bespoke induction
programme which covers the legal and regulatory framework
for investment companies and the operations of the Manager,
including the compliance and risk management frameworks,
accounting, sales and marketing, and other administration
services provided by the Manager.
Directors are also provided on a regular basis with key
information on the Company’s policies, regulatory and
statutory requirements and internal controls. Changes
affecting Directors’ responsibilities are advised to the Board
as they arise. Directors also regularly participate in relevant
training and industry seminars and may do so at the
expense of the Company.
Directors’ individual training requirements are considered
aspart of the annual evaluation process which is led by the
Chairman of the Board.
Conflicts of Interest
The Company’s Articles of Association permit the Board to
authorise situations where a Director has or may have an
interest that conflicts, with the interests of the Company
(“situational conflicts”). TheBoard has a formal system in
place for Directors to declare situational conflicts to be
considered for authorisation by those Directors who have no
interest in the matter being considered. In deciding whether
toauthorise a situational conflict, the non-conflicted Directors
must act honestly and in good faith with a view to the best
interests of the Company and they may impose limits or
conditions when giving the authorisation, or subsequently,
ifthey think this is appropriate. Any situational conflicts
considered, and any authorisations given, are recorded in
therelevant meeting’s minutes. The Board believes that the
systems it has in place for reporting and considering
situational conflicts continue to operate effectively. No
situational conflicts of interest were considered during the
year or up to the date of this report.
Insurance and Indemnification
Directors’ and officers’ liability insurance cover is in place in
respect of the Directors. Under the Company’s Articles of
Association and subject to the provisions of UK legislation, a
qualifying third-party indemnity may be provided to Directors
in respect of costs which they may incur relating to the
defence of any proceedings brought against them arising out
of their positions as Directors, in which they are acquitted or
judgment is given in their favour by the Court. No indemnity
was given during the year or up to the date of this report.
Board Attendance
The table below sets out the number of scheduled formal
Board and Committee meetings held during the year under
review andthe number of meetings attended by each
Director. All Directors attended the 2025 AGM. Thenumber in
brackets denotes the number of meetings each Director was
entitled to attend.
Board
Audit and Risk
Committee
Nominations
Committee
Ominder Dhillon 7 (7) 3 (3) 1 (1)
Ted Holmes 7 (7) 3 (3) 1 (1)
Sally Lake 7 (7) 3 (3) 1 (1)
Sir Laurie Magnus 7 (7) 3 (3) 1 (1)
Clare Wardle 7 (7) 3 (3) 1 (1)
Notes:
Sir Laurie Magnus attended each of the Audit and Risk Committee meetings by
invitation. An additional meeting of the Nominations Committee was held during
the year to consider the Board evaluation process. The Insider Committee did
not meet during the year
Continued Appointment of the Manager
The Board monitors investment performance at each meeting,
including information about performance relative to the
benchmark and competitors in the AIC’s UK Equity Income
sector, receives updates in respect of professional sales
andmarketing activities carried out by the Manager for the
Company twice annually and receives a formal
recommendation from the Nominations Committee in
Corporate Governance Report (continued)
The City of London Investment Trust plc Annual Report 2026
48
Corporate Governance Report (continued)
respectof the continued appropriateness of the terms
ofthemanagement agreement at least annually.
The assessment of the Manager by the Nominations
Committee included consideration of the quality of the team
involved in all aspects of servicing the Company, including
company secretarial, administration, sales and marketing,
the Manager’s use of gearing and management of the
portfolio’s risk profile, the stability of the management
group, its business priorities and the adequacy of
succession planning.
Following completion of the review, the Board was satisfied
with the performance of the Manager and the services being
provided and believes that the continued appointment of the
Manager on the terms agreed is in the interests of the
Company’s shareholders as awhole.
Internal Control and Risk Management
The Board has overall responsibility for the Company’s risk
management and internal control framework and for reviewing
its effectiveness, as set out in the chart on the following page.
The Audit and Risk Committee supports the Board in the
continuous monitoring of the framework. Details of the
principal risks facing the Company, including emerging risks,
and how these are mitigated are set out on pages 31 and 32.
The Board has established an ongoing process for identifying,
evaluating and managing the principal and emerging risks
faced by the Company. The process was in operation
throughout the period and up to the date of this report.
Theframework is designed tomeet the specific risks faced
bythe Company and takes account of the nature of the
Company’s reliance on its service providers and their internal
controls. The framework is designed to manage rather than
eliminate the risk offailure toachieve the Company’s business
objectives and provides reasonable, butnot absolute,
assurance against material misstatement orloss.
The key components of the internal control framework
include:
●
clearly defined investment criteria which specify levels of
authority and exposure limits. The Board reviews reports
on compliance with the criteria at each meeting;
●
regular reporting which allows the Board to assess the
Company’s financial position. The management accounts
and forecasts are reviewed by the Board at each meeting
including reports on investment performance and gearing;
●
the contractual agreements with the Manager and other
third-party service providers. The Board reviews
performance levels and adherence to relevant provisions
of the agreements on a regular basis. The Nominations
Committee conducts a formal evaluation of the overall
level of service provided at least annually (see Nominations
Committee Report on pages 55 and 56);
●
the review of controls (including financial, operational and
compliance) at the Manager and other third-party service
providers. The Board receives quarterly reporting from the
Manager and Depositary, and reviews annual assurance
reports on the effectiveness of the control environments
atthe Company’s key service providers; and
●
the review of additional reporting provided by:
– the Manager’s Operational Risk team on the control
environment in operation at the Manager and their view
of the control environments in place at the third-party
service providers used by the Company; and
– the Manager’s Internal Audit team on areas of operation
which are relevant to the Company.
The Board, assisted by the Audit and Risk Committee, has
carried out a review of the effectiveness of the Company’s
system of internal controls for the year ended 30June 2026.
During the course of its review the Board did not identify and
was not advised of any failings or weaknesses relating to the
Company’s portfolio that have been determined as material.
Internal Audit Function
Systems are in operation to safeguard the Company’s assets
and shareholders’ investments, to maintain proper accounting
records and to ensure that financial information used within
the business, or published, is reliable.
The Company is an investment company, has no employees
and delegates all executive activities to third-party service
providers, principally among them, the Manager. The Board
places reliance on the Company’s framework of internal
control and the Audit and Risk Committee’s view on reporting
received from specific second and third line of defence teams
at theManager.
The Manager’s Operational Risk team supports the Audit and
Risk Committee in considering the independently audited
reports on the effectiveness of internal controls in place at the
Company’s third-party service providers. The Manager’s
Internal Audit department provides regular reporting to the
Board on the operations at the Manager and presents at least
annually to the Audit and Risk Committee. The Board
considers the need for its own internal audit function annually
and continues to conclude that it is not necessary atthe
present time for the Company to have its own function.
The City of London Investment Trust plc Annual Report 2026
49
Corporate Governance Report (continued)
Framework of Internal Controls
How the system of internal control operates
The Board delegates contractually to third-party service providers all of the Company’s operational requirements. It maintains
oversight of these providers throughout the year by receiving regular reporting on their activities. All are consideredstakeholders.
The Nominations Committee formally evaluates the performance and service delivery of key third-party service providers
atleastannually.
The Audit and Risk Committee evaluates theperformance of the Auditor on completion of each auditcycle and monitors the
effectiveness of the control environment of the key third-party service providers each year through review of their annual
assurance reports (usually ISAE 3402), supplemented by the view of the Manager’s Operational Risk team.
Ernst & Young LLP has been appointed as the Company’s Auditor.
Janus Henderson
(Investment management,
company secretarial,
sales, marketing, PR,
financial reporting and
administration)
Reporting
• Investment
performance update (at
each meeting)
• Compliance with
investment limits and
restrictions (monthly)
• Internal controls report
(quarterly)
• Effectiveness of control
environment (annually)
HSBC
(Depositary & Custodian)
Reporting
• Depositary report
(quarterly)
• Presentation from the
Depositary and
Custodian (annually)
• Effectiveness of control
environment (annually)
BNP Paribas
(Accounting and
administration services
(engaged by the Manager))
Reporting
• NAV (daily)
• Balance sheet
• Liquidity and gearing
• Revenue forecasts
• Portfolio valuation
• Portfolio transactions
• Effectiveness ofcontrol
environment (annually)
Computershare
(Registrar)
Reporting
• Voting reports pre- and
post-shareholder
meetings
• Shareholder
correspondence
• Operational service
updates (semi-annually)
• Effectiveness of control
environment (annually)
Board of Directors
(independent non-executive Directors)
The City of London Investment Trust plc Annual Report 2026
50
Audit and Risk Committee Report
I am pleased to present the Audit and Risk Committee Report
for the year ended 30 June 2026.
Membership
The members of the Audit and Risk Committee (“Committee”)
are Sally Lake (Committee Chair), Ominder Dhillon, Ted
Holmes and Clare Wardle. The Committee Chair is considered
by the Board to have recent and relevant financial experience,
and the Committee as a whole has competence relevant to
the sector in which the Company operates and to the
Company as an investment trust. The Chairman of the Board
may attend meetings by invitation of the Chair.
Meetings
The Committee usually meets three times a year, to review
thehalf-year results, the annual results and to review the
Company’s risk management and internal controls. It met
three times in the year under review. The Company’s Auditor,
the Fund Managers and the Manager’s Financial Reporting
Senior Manager for Investment Trusts are invited to attend
meetings of the Committee on a regular basis. Other
representatives of theManager, including those responsible
for operational risk,internal audit and information security, and
BNP Paribas may also be invited to attend if deemed
necessary by theCommittee.
Role and Responsibilities
The primary responsibilities of the Committee are: to ensure
the integrity of the Company’s financial reporting, including
oversight of the preparation and audit of the annual financial
statements; to monitor and review the effectiveness of the
Company’s risk management and internal control framework
and the control environments of the Manager and the
Company’s other third-party service providers; and to monitor
the effectiveness and objectivity of the external Auditor. The
Committee oversees the relationship with the external Auditor,
approving the terms of their appointment or their removal.
TheCommittee reports to the Board after each meeting.
The Committee’s responsibilities are set out in formal terms
ofreference which are reviewed at least annually. The FRC’s
Minimum Standard for Audit Committees is incorporated
within the terms of reference and this report includes details
ofthe activities undertaken to meet the requirements of the
Minimum Standard. The terms of reference were updated
during the year to reflect the 2024 AIC Code and the
forthcoming enhanced reporting requirements relating to
material controls.
Committee Effectiveness Review
The activities of the Committee were considered as part of
theBoard effectiveness review (see page 55 for more details).
The review concluded that the Committee continued to
operate effectively.
Activities during the Year
In the year under review, the Committee considered the
following matters:
Financial reporting
●
The appropriateness of the Company’s accounting
policies and of the quality and effectiveness of the
accounting records and management information
maintained on behalf of the Company.
●
The level of dividends to be paid by the Company,
forrecommendation to the Board.
●
The disclosures made in the annual and half year reports
in relation to internal controls and risk management,
viability, going concern and related parties and
consideration of whether the report is fair, balanced and
understandable and provides the information necessary
for shareholders to assess the Company’s position and
performance, business model and strategy in order to
make recommendations to the Board.
Auditor
●
The audit plan, including the principal areas of focus.
●
The nature, scope and cost of the external audit and
reviewing the Auditor’s findings in this respect.
●
The re-appointment and evaluation of the independence,
effectiveness and objectivity of the Auditor.
Internal controls and management of risk
●
The principal risks facing the Company, including
consideration of emerging risks, the risk management
systems in place and the Company’s risk map.
●
Reports on the effectiveness of the internal controls in
place at Janus Henderson and the Company’s other
principal third-party service providers and discussing
themwith the Manager’s Operational Risk Team.
●
Compliance with the terms of the loan notes in issue.
●
The need for the Company to have its own internal audit
function.
●
The whistleblowing arrangements in place at the Manager
and other key service providers for their staff to raise
concerns, in confidence, about possible improprieties,
including in relation to the Company.
●
The Manager’s policies and arrangements in relation to
information security, meeting with the Janus Henderson
Chief Information Security Officer.
●
Meeting with representatives of Janus Henderson’s
business resilience and internal audit teams.
●
The Company’s anti-bribery policy, approach to tax
evasion and the confirmations received from third-party
service providers as to whether they have appropriate
procedures in place in these respects.
●
The annual confirmation from the Company’s Depositary
in respect of the safe-keeping of the Company’s assets.
The City of London Investment Trust plc Annual Report 2026
51
Audit and Risk Committee Report (continued)
The Committee also undertook preparatory work to support
the enhanced reporting requirements under Provision 34 of
the 2024 AIC Code. The Board will be required to make a
declaration on the effectiveness of material controls in the
Annual Report for the year ending 30 June 2027.
External Audit
Appointment and Tenure of the Auditor
The Committee confirms that the Company is in compliance
with the requirements of The Statutory Audit Services for
Large Companies Market Investigation (Mandatory Use of
Competitive Tender Processes and Audit Committee
Responsibilities) Order 2014. This order relates to the
frequency and governance of tenders for the appointment
ofthe external auditors and the setting of the policy on the
provision of non-audit services.
An audit tender was last carried out in 2023. The appointment
of Ernst & Young LLP (“EY”) as Auditor was recommended to
the Board, and their appointment was confirmed by
shareholders at the 2023 AGM. The financial statements for
the year ended 30 June 2026 will be the third to be audited
byEY and the third year for the audit partner, Mike Gaylor.
Auditor’s Independence
The Committee monitors the Auditor’s independence by:
●
approving the policy regulating the non-audit services that
may be provided by the Auditor to the Company;
●
assessing the appropriateness of the fees paid to the
Auditor for all work undertaken by them; and
●
reviewing the information and assurances provided by
theAuditor on their compliance with the relevant ethical
standards.
For the year ended 30 June 2026, EY confirmed that all of its
partners and staff involved with the audit were independent
ofany links to the Company and had complied with its ethics
and independence policies and procedures, which are fully
consistent with the FRC’s Ethical Standards. Having
considered the above-mentioned aspects, the performance
and behaviour of the Auditor during the audit process and the
assurances received from EY, the Committee is satisfied that
auditor independence and objectivity are safeguarded.
Audit Fees
The fees payable to the Auditor for audit services in respect of
the year ended 30 June 2026 were £67,000 (2025: £65,000)
(inclusive of VAT).
Policy on Non-Audit Services
The Committee has approved, and keeps under regular
review, the policy on the provision of non-audit services by the
auditor. The policy sets out that the Company’s auditor will not
be considered for non-audit work where this is prohibited by
the current regulations and where it appears to affect their
independence and objectivity. In addition, the provision of any
non-audit services by the auditor is not permitted to exceed
70% of the average annual statutory audit fee for the three
consecutive financial periods preceding the financial period
towhich the cap applies. Such services require approval in
advance by the Committee, or Audit and Risk Committee
Chair, following due consideration of the proposed services.
No non-audit services were provided by EY in the year
underreview.
FRC Review of the 2025 Annual Report
The Company’s Annual Report for the year ended 30 June
2025 was reviewed by the FRC as part of their normal
monitoring activities. Confirmation was received from the FRC
that they had no questions or queries to raise with the
Company, although they noted that they may raise queries in
the future should new information become available to them
that they considered to be relevant. Their letter advised that
their review had been based solely on the report and
accounts and did not benefit from detailed knowledge of the
Company’s business or an understanding of the underlying
transactions entered into. It had, however, been conducted by
staff of the FRC who had an understanding of the relevant
legal and accounting framework. It also noted that the FRC’s
role was not to verify the information provided but to consider
compliance with reporting requirements.
Audit for the Year ended 30 June 2026
In the year under review, EY challenged both the Manager’s
and the Board’s judgements and exercised professional
scepticism. The audit team required detailed evidence of all
metrics, numbers and disclosures made within the Annual
Report to support a robust assessment and evaluation of the
financial information contained therein. As an example, the
Manager provides the Committee and the Auditor with an
analysis of special dividends and the rationale for whether
these should be treated as income or capital. The Auditor’s
review included challenge to the Manager to provide additional
justification or background to the dividends before confirming
whether they concurred with the proposed treatment.
The Committee faces fewer issues of judgement than might
apply with an operating business. Areas where the Committee
challenges the Manager include the determination of the fair
market value of debt in order to confirm the appropriate basis
for calculation, and stress testing of the revenue forecast to
support the dividend payment policy and the assumptions in
the viability statement.
The Committee did not consider it necessary to request the
Auditor to look at any specific areas in addition to those
already identified in the audit plan in relation to the audit for
the year ended 30 June 2026.
The Committee is satisfied that the Annual Report for the year
ended 30 June 2026, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Company’s position and
performance, business model and strategy.
The City of London Investment Trust plc Annual Report 2026
52
Audit and Risk Committee Report (continued)
In relation to the Annual Report for the year ended 30 June 2026, the following significant issues were considered by
theCommittee:
Significant issue How the issue was addressed
Valuation and ownership of
theCompany’s investments
The Directors have appointed the Manager, who outsources administration and
accounting services to BNP Paribas, to perform the valuation of the assets of the
Company in accordance with its responsibilities under the AIFMD rules. As required
under the AIFMD rules, the Manager has adopted a written valuation policy, which may
be modified from time to time. Actively traded investments are valued using stock
exchange prices provided by third-party pricing vendors.
Ownership of listed investments is verified by reconciliation to the Custodian’s records
and the Directors have received quarterly reports from the Depositary, which has
responsibility for overseeing the Company’s operations, including verification of
ownership and valuation.
Recognition of income Income received, including special dividends, is accounted for in line with the Company’s
accounting policy (as set out on page 74). Special dividends, and their treatment as
revenue or capital, have been reviewed by the Committee and the rationale agreed.
The Board reviews revenue forecasts and scenario analyses at each Board meeting in
support of the Company’s future dividends.
Maintaining internal controls Information about the internal control and risk management framework adopted by the
Company is set out in the Corporate Governance Report on pages 49 and 50.
The Committee receives regular reports on internal controls and assurance reporting
from Janus Henderson, BNP Paribas, HSBC Bank plc and Computershare Investor
Services plc and has access to the relevant personnel of Janus Henderson who have a
responsibility for risk management and internal audit.
The assurance report for one of the Company’s service providers had received a qualified
opinion by the respective service auditor. The Committee thoroughly reviewed the
instances giving rise to the qualification, whether these had impacted the Company
directly and the corrective actions taken by management. Following these discussions,
the Committee was satisfied that the Company’s internal controls had operated as
intended and that the qualification had had no direct impact on the Company.
The Committee also meets annually with representatives from Janus Henderson and
HSBC Bank plc to discuss and challenge their reports.
Maintenance of investment
truststatus
The Committee considered regularly the controls in place to ensure that the regulations
for ensuring investment trust status are observed at all times, receiving supporting
documentation from Janus Henderson and BNP Paribas.
Effectiveness of the External Audit
The Auditor attended two Committee meetings in the year,
when the Committee was considering the audit plan and the
annual results. An initial audit planning meeting between EY,
BNP Paribas, the Fund Managers and the Manager’s staff
was held. The Committee Chair met with the Auditor prior to
the commencement of the audit to discuss the audit plan and
proposed audit fee, and again to review the audit results prior
to these being presented to the Committee.
The Auditor presented and discussed the findings of the
FRC’s latest Audit Quality Inspection Report on EY to the
Committee and reported on the progress made by the firm in
addressing the areas identified for improvement in the prior
year’s report.
The Committee carried out a post-audit assessment of the
performance of the Auditor. The Committee reviewed and
assessed the robustness of the audit, the level of challenge
offered by the audit team, the Auditor’s understanding of the
Company and the investment trust sector, the quality of the
audit team and the timeliness of delivering the tasks required
for the audit and reporting for the Committee. The Committee
Chair invited views from the Directors, the Fund Managers
and other members of the Manager’s staff. The Committee
also met privately with the Audit Partner to discuss how the
audit operated from his perspective.
The City of London Investment Trust plc Annual Report 2026
53
Audit and Risk Committee Report (continued)
Overall, the Committee considers that the audit quality for the
year ended 30 June 2026 has been high and that the
Manager and EY have worked together effectively. Following
completion of the assessment, the Committee remained
satisfied with the effectiveness of the audit provided by EY.
EYhave indicated their willingness to continue in office and
resolutions re-appointing them as Auditor to the Company
and authorising the Committee to determine their
remuneration will be proposed at the AGM.
Sally Lake
Chair of the Audit and Risk Committee
15 September 2026
The City of London Investment Trust plc Annual Report 2026
54
Nominations Committee Report
I am pleased to present the Nominations Committee Report
for the year ended 30 June 2026.
Membership
All Directors are members of the Nominations Committee
(“Committee”). The Chairman ofthe Board is the Chairman of
the Committee but does not chair discussions relating to his
own performance or succession.
Meetings
The Committee meets at least once a year. One additional
meeting was held in the year under review to agree theformat
for the annual Board evaluation.
Role and Responsibilities
The Committee advises the Board on the composition of the
Board and its Committees, in making appointments to the
Board and ensuring suitable succession plans are in place
forthe Directors and the Fund Manager. It carries out annual
Board effectiveness reviews and makes recommendations to
the Board for the proposed election and re-election of
Directors ahead of each AGM. It also reviews and monitors
the engagement and performance of the Manager and other
third-party service providers.
The Committee reports to the Board after each meeting and
its responsibilities are set out in formal terms of reference
which are reviewed at least annually.
Committee Effectiveness Review
The activities of the Committee were considered as part of the
Board effectiveness review (see below for more details). The
review concluded that the Committee continued to operate
effectively.
Succession Planning and Recruitment
When considering succession planning, the Committee bears
in mind the balance of skills, knowledge, experience and
diversity existing on the Board. Once a decision is made to
recruit an additional Director, a formal job description is drawn
up. The Committee will engage external recruitment agencies
to facilitate the search. The Committee will assess candidates
against objective criteria and with due regard for the benefits
ofdiversity on the Board (including gender, social and ethnic
backgrounds, as well as cognitive and personal strengths),
taking care that any candidates recommended for appointment
will be able to allocate sufficient time to the Company to
discharge their responsibilities fully and effectively.
New appointments to the Board are made on a staggered
basis in line with the tenure policy, ensuring ongoing
refreshment combined with the importance of maintaining
continuity and corporate knowledge. As part of the evaluation
process, the Committee reviews the tenure of the Directors.
Atthe date of this report, the Directors have been on the
Boardfor between 2 and 8years.
In the normal course of events, Mr Holmes is due to retire at the
2027 AGM. The Committee will be commencing steps to recruit
a successor to Mr Holmes during the final quarter of 2026.
The Committee also reviews and recommends to the Board
the Directors seeking re-election. Recommendation is not
automatic and will follow a process of evaluation of each
Director’s performance and consideration of the Director’s
independence, including their time commitment. The
Committee also takes into account the mix of skills and
experience of the current Board members.
Board Effectiveness Review
Each year, the Committee assesses the composition of the
Board and its performance, including that of individual
Directors. An external review is conducted every three years,
with the next external review due to be carried out in 2028.
This year, the evaluation was undertaken internally, with each
Director completing a questionnaire and then meeting
individually with the Chairman.
The areas considered included Board composition and
dynamics, management of meetings and support from the
Manager in this respect, the appropriateness of the
investment strategy and performance, the quality of the
Board’s understanding of shareholders’ views and the
Manager’s sales and marketing activities, succession
planning and priorities for change. A review of the
performance and effectiveness of the Board Committees
wasincluded as part of the evaluation process. The
Committee also reviewed the independence of each Director
and their time commitment.
The principal areas for attention identified from the review
included:
●
maintaining the focus on risk management, in particular
remaining alert to the challenges of cyber security;
●
the appointment of a new Director to succeed Mr Holmes;
and
●
monitoring the results from the investment in marketing
activity.
The review of the Chairman was led by Clare Wardle as
theSenior Independent Director. Mrs Wardle met with
eachDirector to discuss the leadership and effectiveness
ofthe Chairman.
Following completion of the review, the Committee concluded
that the Board remained fit for purpose and worked in a
harmonious, effective and collegiate manner. Directors gave
an appropriate level of focus and discussion to the oversight
of strategy and performance. There was a very good range of
skills represented on the Board and a clear understanding of
the risks facing the Company. The Board Committees were
operating effectively. Mrs Wardle also reported that the
Chairman provided effective leadership. No areas of material
weakness or concern were identified. The Committee
accordingly recommended to the Board that it should support
those Directors seeking re-election at the 2026 AGM.
The City of London Investment Trust plc Annual Report 2026
55
Nominations Committee Report (continued)
Diversity and Inclusion
All Board appointments are subject to a formal, rigorous
andtransparent procedure. The Company seeks to ensure
that any Board vacancies are filled by the most qualified
candidates based on objective criteria and merit and in the
context of the skills, knowledge and experience that are
needed for the Board to be effective.
Whilst the Board does notfeel that it would be appropriate to
use specific diversity targets, given its small size, the Directors
acknowledge thatdiversity is important to ensure that the
Company can draw on a broad range of backgrounds, skills,
knowledge, experience and perspectives to achieve effective
stewardship of the Company. An integral part of the
appointment process includes the consideration of diversity
inits broadest sense and the Nominations Committee ensures
that long lists of potential non-executive Directors include
diverse candidates of appropriate experience and merit and
there will be nodiscrimination on the grounds of gender, race,
ethnicity, religion, sexual orientation, age or physical ability.
TheCommittee reviewed the Company’s Diversity and
Inclusion Policy during the year and concluded that it
remained appropriate.
As at 30 June 2026, the Board met the applicable UK Listing
Rule diversity targets: 40% of the Board were female, two
senior Board positions were held by women, and at least one
Director was from a minority ethnic background. In relation to
the senior board positions target, the Company has followed
the AIC guidance for externally managed investment
companies, as explained in the note to the tables below.
The following tables set out the gender and ethnic diversity of
the Board at 30 June 2026:
Gender identity
Number of
Board
members
Percentage
of the Board
Number of
senior
positions on
the Board
1
Men 3 60 1
Women 2 40 2
Ethnic background
White British or other
White (including
minority-white groups) 4 80 3
Asian/Asian British 1 20 –
1 Senior positions include Chairman, Senior Independent Director and Audit and
Risk Committee Chair
As an investment trust company with solely independent,
non-executive Directors, the Company does not have a Chief
Executive or a Chief Financial Officer and has no employees.
Accordingly, there are no disclosures about executive
management positions to be included. The role of Audit and
Risk Committee Chair is considered to be a senior position
and has been included in the above tables. The categories for
ethnic groups which are not represented on the Board are not
included in the ethnic background table. The information in
the tables was provided by individual Directors in response to
a request from the Company.
There have been no changes to the Board or the roles of
Directors since 30June 2026.
Performance of Third-Party
ServiceProviders
Each year, the Committee carries out an evaluation of
theManager and the Company’s key third-party service
providers and their respective terms of engagement.
The Committee’s evaluation of the Manager includes assessing
whether the contractual arrangements and remuneration
structure in place remain appropriate and competitive and in
theinterests of shareholders as a whole. The Committee also
considers the arrangements in place at Janus Henderson in
terms of a short-term incapacity of the Fund Manager and
succession planning for the Fund Manager over the longer
term. The evaluation includes consideration of the quality of
the team involved in all aspects of servicing the Company and
a review of the stability of the management group and its
business priorities.
Following its review, the Committee concluded that it was in
the interests of shareholders as a whole to recommend to
theBoard that the appointment of the Manager should
continue on the existing terms. The Committee also
recommended the continuation of the appointment of
theother keythird-party service providers.
Sir Laurie Magnus CBE
Nominations Committee Chairman
15 September 2026
The City of London Investment Trust plc Annual Report 2026
56
Directors’ Remuneration Report
Remuneration Policy
The Remuneration Policy (“the Policy”) sets out the principles
applied in the remuneration of the Company’s Directors.
ThePolicy was last approved by shareholders at the AGM on
31 October 2023. Shareholders will be asked to re-approve
the Policy at the 2026 AGM; if approved, it will continue in
force until the AGM in 2029.
The Board has not established a separate remuneration
committee and matters relating to Directors’ remuneration are
dealt with by the Board as a whole. Individual Directors do not
participate in discussions relating to their own remuneration.
The appropriateness and relevance of the Policy is reviewed
at least annually, particularly in terms of whether the policy
supports the Company’s long-term sustainable success.
Indetermining the Policy,the Board takes into account all
factors which it deemsnecessary, including relevant legal and
regulatory requirements, the provisions and recommendations
of the UKCode and the AIC Code and fees paid to directors
of comparable investment trusts.
The objective of the Policy is to attract, retain and motivate
non-executive Directors of the quality required to manage the
Company successfully. The Company’s approach is that fees
payable to the non-executive Directors should reflect the time
spent on the Company’s affairs, reflect the responsibilities
borne by the Directors, and be sufficient to promote the
long-term success of the Company.
Directors are remunerated in the form of fees payable to the
Director personally quarterly in arrears. Fees are pro-rated
where a change takes place during a financial year. The total
annual aggregate fees payable to Directors shall not
exceed£350,000.
The Chairman of the Board is paid a higher fee in recognition
of his additional responsibilities, as is the Senior Independent
Director, the Chair of the Audit and Risk Committee and the
Marketing Lead. The Directors may be reimbursed for all
reasonable and properly documented expenses incurred in
the performance of their duties. The level of fees paid to each
Director is reviewed annually, although such a review may not
necessarily result in any change to therates. The level of fees
paid to the directors of other investment companies of a
similar size and nature is taken into account when carrying out
the review in order to avoid and manage conflicts of interest in
determining remuneration levels. The Board may amend the
level of remuneration paid to individual Directors within the
parameters of the Policy.
No Director is eligible to receive bonuses, pension benefits,
share options or other benefits and no long-term incentive
schemes are in place.
The Policy, irrespective of any changes, is put to shareholders
at intervals of not more than three years with the next approval
due to be sought at the AGM in 2029.
Letters of appointment
All Directors are non-executive and are appointed under a
Letter of Appointment. No Director has a service contract with
the Company. There are no set notice periods and a Director
may resign by notice in writing to the Board at any time. No
compensation is payable for loss of office.
Recruitment principles
All Directors, including any new appointments to the Board,
are paid at the same rate. The Chairman of the Board,
SeniorIndependent Director, Chair of the Audit and Risk
Committee and Marketing Lead are paid higher fees in
recognition of their additional responsibilities.
The Board will not pay any introductory fee or incentive to any
person to encourage them to become a Director, but may pay
the fees of search and selection specialists in connection with
the appointment of any new non-executive Director.
The Company intends to appoint only non-executive Directors
for the foreseeable future.
Views of shareholders
Any views expressed by shareholders on the fees being paid
to Directors would be taken into consideration by the Board
when reviewing levels of remuneration.
Annual Report on Remuneration
This report has been prepared in accordance with Schedule 8
ofTheLarge and Medium-sized Companies and Groups
(Accounts and Reports) Regulations 2008 as amended (the
“Regulations”). The report also meets the relevant
requirements of the Companies Act 2006 (the “Act”) and the
UK Listing Rules of the FCA and describes how the Board has
applied the principles relating toDirectors’ remuneration.
As required by the Act, an ordinary resolution to approve the
Directors’ Remuneration Report will be proposed at the
forthcoming AGM.
The City of London Investment Trust plc Annual Report 2026
57
Directors’ Remuneration Report (continued)
The Company’s Auditor is required to report on certain
information contained within this report; where information
setout below has been audited, it is indicated as such.
All Directors are non-executive and the Company has no chief
executive officer or employees; as such some of the reporting
requirements contained in the Regulations are not applicable
and have not been reported on, including the requirement for
a future policy table and an illustrative representation of the
level of remuneration that could be received by each individual
Director. It is believed that all relevant information is disclosed
within this report in an appropriate format.
The Board has not been provided with advice or services by
any person in respect of its consideration of the Directors’
remuneration.
Statement from the Chairman
As the Company has no employees and the Board comprises
entirely non-executive Directors, the Board hasnot
established a separate Remuneration Committee. Directors’
remuneration is reviewed annually and is determined by the
Board as a whole within the parameters approved by
shareholders.
During the year, the Board reviewed the fees paid by other
investment companies in the AIC UK Equity Income sector
(the Company’s peer group), fees paid to directors of other
large investment trusts with assets of over £1 billion (excluding
sector specialists) and those paid by the Janus Henderson
managed investment trusts. The Board also took into
consideration the prevailing rate of inflation, looking at RPI,
CPI, as well as the increasing responsibilities and time
commitment required of Directors. Following consideration,
the Directors’ fees were increased with effect from 1January
2026 by 3.5% (rounded to the nearest £100), slightly below
the CPI rise of 3.6% for the 12 months to 31 October 2025.
MrDhillon carries out additional work for the Board as
Marketing Lead, liaising with the Manager on the marketing
and advertising programme and budget. It was agreed that he
should be paid an annual fee equivalent to that of the Senior
Independent Director to reflect his additional responsibilities.
The new rates are as set out in the table below. Theincreases
were to ensure that the Directors are properly remunerated for
their services to the Company and so that the Company can
remain competitive when seeking new Directors. There have
been no other major decisions on Directors’ remuneration or
any other changes to the remuneration paid to each individual
Director in the year underreview.
The Board is satisfied that the changes to the remuneration
of the Directors are compliant with the Directors’
Remuneration Policy approved by shareholders at the 2023
AGM. There will be no significant change in the way that the
Remuneration Policy will be implemented in the course
ofthe next financial year.
Directors’ annual fees
The current fees for specific responsibilities are set out in
thetable below. Other than the Chair of the Audit and Risk
Committee, no fees are payable for membership of the
Board’s Committees.
Role
Rate at
30 June 2026
£
Rate at
30 June 2025
£
Chairman of the Board 58,500 56,500
Chair of the Audit and Risk
Committee 44,000 42,500
Senior Independent Director 40,300 38,900
Marketing Lead 40,300 n/a
Other non-executive Directors 36,600 35,300
Performance
The chart below illustrates the total shareholder return for a
holding in the Company’s shares over the ten-year period to
30 June 2026 as compared with the FTSE All-Share Index,
which was adopted as the Company’s benchmark index with
effect from 1 July 2019.
Total return performance over the ten-year period
to 30June 2026
City of London share price total return, assuming the investment
of £100 on 30 June 2016 and the reinvestment of all dividends
(excluding dealing expenses)
FTSE All-Share Index total return, assuming the notional investment of
£100 on 30 June 2016 and the reinvestment of all income (excluding
dealing expenses)
Sources: Morningstar Direct and LSEG Datastream
£
2018 2021 20222020201920172016 2023 2025 20262024
80
100
120
140
160
180
200
220
240
260
The City of London Investment Trust plc Annual Report 2026
58
Directors’ Remuneration Report (continued)
Directors’ remuneration (audited)
The remuneration paid to the Directors who served during the year ended 30 June 2026 and 30 June 2025 was as follows:
Year ended
30 June 2026
Total salary and
fees
£
Year ended
30 June 2025
Total salary and
fees
£
Year ended
30 June 2026
Total expenses
and taxable
benefits
£
Year ended
30 June 2025
Total expenses
and taxable
benefits
£
Year ended
30 June 2026
Total
£
Year ended
30 June 2025
Total
£
Ominder Dhillon
1
37,800 34,900 218 250 38,018 35,150
Ted Holmes 35,950 34,900 – – 35,950 34,900
Sally Lake
2
43,250 36,804 – – 43,250 36,804
Sir Laurie Magnus
3
57,500 55,850 – – 57,500 55,850
Clare Wardle 39,600 38,550 – – 39,600 38,550
Samantha Wren
4
– 13,833 – – – 13,833
Total 214,100 214,837 218 250 214,318 215,087
Notes:
The amounts paid by the Company to the Directors were for services as non-executive Directors. The table above omits other columns set out in the relevant regulations
because no payments of other types such as performance-related pay and pension-related payments were made. No variable pay was paid to any Director
1 Appointed as Marketing Lead with effect from 1 January 2026
2 Appointed as a non-executive Director on 1 August 2024 and appointed as Chair of the Audit and Risk Committee on 31 October 2024
3 Chair and highest paid Director
4 Chair of the Audit and Risk Committee until resignation on 31 October 2024
No other remuneration or compensation was paid or payable by the Company during the year to any of the current or former
Directors or third parties.
Directors’ interests in shares (audited)
Ordinary shares of 25p
Beneficial interest 30 June 2026 1 July 2025
Ominder Dhillon 5,943 5,943
Ted Holmes 10,000 10,000
Sally Lake 9,200 9,200
Sir Laurie Magnus 110,000 110,000
Clare Wardle 16,447 16,447
The interests of the Directors and their connected persons in
the ordinary shares of the Company at the beginning and end
of the financial year are shown in the table. There have been
no changes toany of the Directors’ interests in the period
from 1 July 2026to the date of this report. No Director has
any interests in the preference or preferred stock of
theCompany.
The Company does not have a shareholding requirement
forDirectors.
Relative importance of spend on pay
In order to show the relative importance of spend on pay, the table below sets out the total level of remuneration compared with
the distributions to shareholders by way of dividends. There were no other significant distributions, payments or other uses of the
Company’s net return or cash flow deemed to assist in the understanding of the relative importance of spend on pay.
2026
£
2025
£
Change
£
Change
%
Total Directors’ remuneration 214,318 215,087 (769) (0.4)
Ordinary dividends paid 109,827,058 104,438,793 5,388,265 5.2
The City of London Investment Trust plc Annual Report 2026
59
Directors’ Remuneration Report (continued)
Statement of voting at AGM
At the Company’s last AGM held on 30 October 2025, shareholders approved the Directors’ Remuneration Report in respect
ofthe year ended 30 June 2025. Shareholders last approved the Directors’ Remuneration Policy at the AGM on 31 October 2023.
Resolution
For (including at
Chairman’s
discretion) % of total votes
1
Against % of total votes
1
Withheld
Remuneration Policy 6,622,825 99.2 56,004 0.8 53,908
Remuneration Report 5,958,371 99.0 62,014 1.0 47,965
1 Excluding votes withheld
Approval of the Annual Report on Remuneration
The Annual Report on Remuneration was approved by the Board on 15 September 2026.
On behalf of the Board
Sir Laurie Magnus CBE
Chairman
15 September 2026
The City of London Investment Trust plc Annual Report 2026
60
Statement of Directors’ Responsibilities
The Directors are responsible for preparing the Annual
Report, the Directors’ Remuneration Report and the financial
statements in accordance with applicable law and regulations.
Company law requires the Directors to prepare financial
statements for each financial year. Under that law the
Directors have prepared the financial statements in
accordance with United Kingdom Generally Accepted
Accounting Practice (UK Accounting Standards, comprising
FRS 102 “The Financial Reporting Standard applicable in the
UK and the Republic of Ireland”, and applicable law). Under
company law the Directors must not approve the financial
statements unless they are satisfied that they give a true and
fair view of the state of affairs of the Company and ofthe net
return or loss of the Company for that period. In preparing
thesefinancial statements, the Directors are required to:
●
select suitable accounting policies and then apply them
consistently;
●
make judgements and accounting estimates that are
reasonable and prudent;
●
state whether applicable UK Accounting Standards,
comprising FRS 102, have been followed, subject to any
material departures disclosed and explained in the
financial statements; and
●
prepare the financial statements on a going concern basis
unless it is inappropriate to presume that the Company will
continue in business.
The Directors are responsible for keeping adequate
accounting records that are sufficient to show and explain the
Company’s transactions and disclose with reasonable
accuracy at any time the financial position of the Company
and enable them to ensure that thefinancial statements and
the Directors’ Remuneration Report comply with the
Companies Act 2006. They are also responsible
forsafeguarding the assets of the Company and hence for
taking reasonable steps for the prevention and detection of
fraud and otherirregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Strategic Report, Directors’ Report
and Corporate Governance Report that comply with that law
and those regulations.
The Directors consider that the Annual Report, taken as a whole,
isfair, balanced and understandable and provides the information
necessary for shareholders to assess the Company’s position
and performance, business model and strategy.
Directors’ Responsibility Statement
Each of the Directors, who are listed on pages 39 and 40,
confirms that, to the best of their knowledge:
●
the Company’s financial statements, which havebeen
prepared in accordance with UK Accounting Standards on
a going concern basis, give a true and fair view of the
assets, liabilities, financial position and return of the
Company; and
●
the Strategic Report and financial statements include a
fair review of the development and performance of the
business and the position of the Company, together with
a description of the principal risks and uncertainties that
it faces.
On behalf of the Board
Sir Laurie Magnus CBE
Chairman
15 September 2026
The financial statements are published on the website www.cityinvestmenttrust.com.
Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from
legislation in other jurisdictions.
The maintenance and integrity of the website is the responsibility of Janus Henderson; the work carried out by the Auditor
does not involve consideration of these matters and, accordingly, the Auditor accepts no responsibility for any changes
that may have occurred to the Annual Report since it was initially presented on the website.
The City of London Investment Trust plc Annual Report 2026
61
Independent Auditor’s Report to the Members
ofThe City of London Investment Trust plc
Opinion
We have audited the financial statements of The City of London Investment Trust plc (the “Company”) for the year ended 30 June
2026 which comprise the Income Statement, the Statement of Changes in Equity and the Statement of Financial Position and
the related notes 1 to 23, including a summary of significant accounting policies. The financial reporting framework that has been
applied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 “The Financial
Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, the financial statements:
●
give a true and fair view of the Company’s affairs as at 30 June 2026 and of its profit for the year then ended;
●
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
●
have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Ourresponsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial
statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide
abasis for our opinion.
Independence
We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial
statements in the UK, including the FRC’s Ethical Standard as applied to public interest entities, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Company and we remain independent
of the Company in conducting the audit.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the Directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate. Our evaluation of the Directors’ assessment of the Company’s ability to
continue to adopt the going concern basis of accounting included:
●
Confirming our understanding of the Company’s going concern assessment process by engaging with the Directors and the
Corporate Secretary to determine if the key factors were considered in their assessment.
●
Inspecting the Directors’ assessment of going concern, including the revenue forecast, for the period to 15 September 2027
which is at least 12 months from the date these financial statements are authorised for issue. In preparing the revenue
forecast, the Company has concluded that it is able to continue to meet its ongoing costs as they fall due.
●
We reviewed the Company’s assessment of the liquidity of investments held and evaluated the Company’s ability to sell those
investments to cover the working capital requirements should revenue decline significantly.
●
Reviewing the factors and assumptions, including the impact of the current economic environment and other significant
events that could give rise to market volatility, as applied to the revenue forecast and the liquidity assessment of the
investments. We considered the appropriateness of the methods used to calculate the revenue forecast and the liquidity
assessment and determined, through testing of the methodology and calculations, that the methods, inputs and assumptions
utilised were appropriate to be able to make an assessment for the Company.
●
Considering the mitigating factors included in the revenue forecast that are within the control of the Company.
●
In relation to the Company’s borrowing arrangements, we recalculated the Company’s compliance with debt covenants and
performed stress testing to assess the likelihood of the Company breaching the financial covenants as a result of a reduction
in the value of the Company’s portfolio.
●
Reviewing the Company’s going concern disclosures included in the annual report in order to assess that the disclosures
were appropriate and in conformity with the reporting standards.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Company’s ability to continue as a going concern for the period
assessed by the Directors, being the period to 15 September 2027, which is at least 12 months from the date these financial
statements are authorised for issue.
The City of London Investment Trust plc Annual Report 2026
62
Independent Auditor’s Report to the Members
ofThe City of London Investment Trust plc
(continued)
In relation to the Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing material
to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors
considered it appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections
of this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the
Company’s ability to continue as a going concern.
Overview of our audit approach
Key audit matters
●
Risk of incomplete or inaccurate revenue recognition.
●
Risk of incorrect valuation or ownership of the investment portfolio.
Materiality
●
Overall materiality of £28.5m which represents 1% of the net asset value.
An overview of the scope of our audit
Tailoring the scope
Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit
scope for the Company. This enables us to form an opinion on the financial statements. We take into account size, risk profile,
the organisation of the Company and effectiveness of controls, the potential impact of climate change and changes in the
business environment when assessing the level of work to be performed. All audit work was performed directly by the audit
engagement team.
Climate change
Stakeholders are increasingly interested in how climate change will impact The City of London Investment Trust. The Company
has determined that the most significant future impacts from climate change could affect the Company’s investments. These are
explained on pages 31 and 32 in the principal risks and uncertainties. All of these disclosures form part of the “Other
information”, rather than the audited financial statements. Our procedures on these unaudited disclosures therefore consisted
solely of considering whether they are materially inconsistent with the financial statements or our knowledge obtained in the
course of the audit or otherwise appear to be materially misstated.
Our audit effort in considering climate change was focused on the adequacy of the Company’s disclosures in the financial
statements as set out in note 1(a) and conclusion that there was no further impact of climate change to be taken into account as
the investments are valued based on market pricing as required by FRS 102. We also challenged the Directors’ considerations of
climate change risks in their assessment of going concern, viability and associated disclosures. Based on our work, we have not
identified the impact of climate change on the financial statements to be a key audit matter or to impact a key audit matter.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due to
fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation of
resources in the audit; and directing the efforts of the engagement team. These matters were addressed in the context of our audit of
the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.
The City of London Investment Trust plc Annual Report 2026
63
Independent Auditor’s Report to the Members
ofThe City of London Investment Trust plc
(continued)
Risk Our response to the risk
Key observations communicated to the Audit
and Risk Committee
Incomplete or inaccurate revenue
recognition (as described on page 53
in the Audit and Risk Committee Report
and as per the accounting policy set out
on page 74).
The total revenue for the year to 30 June
2026 is £119.88m (2025: £112.47m),
consisting primarily of dividend income
from listed equity investments.
There is a risk of incomplete or
inaccurate recognition of revenue
through the failure to recognise proper
income entitlements or to apply an
appropriate accounting treatment.
Additionally, in accordance with the AIC
SORP, special dividends received by the
Company can be included in either the
revenue or capital columns of the Income
Statement depending on the commercial
circumstances behind the payments.
We performed the following
procedures:
We obtained an understanding of the
processes and controls surrounding
revenue recognition, including the
classification of special dividends, by
performing walkthrough procedures.
For 100% of dividends received and
accrued, we recalculated the income by
multiplying the investment holdings at
the ex-dividend date, traced from the
accounting records, by the dividend
pershare, which was agreed to an
independent data vendor. We also
agreed all exchange rates to an
independent data vendor and agreed
asample of dividend receipts to
bankstatements.
For 100% of dividends accrued,
wereviewed the investee company
announcement to assess whether the
dividend entitlements arose prior to
30 June 2026.
To test completeness of recorded
income, we verified that expected
dividends for each investee company
held during the year had been recorded
as income with reference to investee
company announcements obtained from
an independent data vendor.
For all investments held during the year,
we inspected the type of dividends paid
with reference to an external data
vendor to identify those which were
special dividends. The Company
received six special dividends in the
year, three classified as revenue and
three classified as capital. The total
value of special dividends was
immaterial to our audit.
The results of our procedures identified
no material misstatement in relation to
incomplete or inaccurate revenue
recognition.
The City of London Investment Trust plc Annual Report 2026
64
Independent Auditor’s Report to the Members
ofThe City of London Investment Trust plc
(continued)
Risk Our response to the risk
Key observations communicated to the Audit
and Risk Committee
Incorrect valuation or ownership of
the investment portfolio (as described
on page 53 in the Audit and Risk
Committee Report and as per the
accounting policy set out on page 73).
The valuation of the investment portfolio
at 30 June 2026 was £2,986.02m
(2025: £2,455.88m) consisting primarily
of listed investments.
The valuation of the investments held by
the Company is the key driver of the
Company’s net asset value and total
return. Incorrect investment pricing, or a
failure to maintain proper legal title of the
assets held by the Company could have
a significant impact on the net asset
value and the return generated
forshareholders.
The fair value of listed investments is
determined using quoted market bid
prices at close of business on the
reporting date.
The Company participates in stock
lending activity governed by a stock
lending agreement with the custodian,
HSBC. The agreement allows the
custodian to use, for their own
purposes, the collateral posted for the
stocks on loan. There is a risk that
valuation or ownership of the stocks
onloan is incorrect.
We performed the following
procedures:
We obtained an understanding of the
processes surrounding investment
pricing and legal title of listed
investments by performing walkthrough
procedures.
For 100% of investments in the portfolio,
including the stocks on loan and
collateral, we verified the market prices
and exchange rates applied to an
independent pricing vendor and
recalculated the investment valuations
as at the year end.
For all investments in the portfolio, we
obtained the market prices from an
independent pricing vendor for five
business days pre and post the year end
date and calculated the day-on-day
movements to identify any stale prices.
We verified that the listed prices are valid
fair values through review of trading
activity.
We compared the Company’s
investment holdings including the stocks
on loan as at 30 June 2026 to an
independent confirmation received
directly from the Company’s Custodian
and Depositary.
The results of our procedures identified
no material misstatement in relation to
the risk of incorrect valuation or
ownership of the investment portfolio.
Our application of materiality
We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on
the audit and in forming our audit opinion.
Materiality
The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence
the economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and
extent of our audit procedures.
We determined materiality for the Company to be £28.50m (2025: £23.32m), which is 1% (2025: 1%) of net assets. We believe
that net asset value provides us with a materiality aligned to the key measure of the Company’s performance.
Performance materiality
The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low
level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.
On the basis of our risk assessments, together with our assessment of the Company’s overall control environment, our
judgement was that performance materiality was 75% (2025: 75%) of our planning materiality, namely £21.38m (2025: £17.49m).
We have set performance materiality at this percentage due to our past experience of working with the Company which therefore
indicates a lower risk of misstatements, both corrected and uncorrected.
The City of London Investment Trust plc Annual Report 2026
65
Independent Auditor’s Report to the Members
ofThe City of London Investment Trust plc
(continued)
Given the importance of the distinction between revenue and capital for investment trusts, we also applied a separate testing
threshold for the revenue column of the Income Statement of £5.71m (2025: £5.36m) being 5% (2025: 5%) of the revenue net
return before taxation.
Reporting threshold
An amount below which identified misstatements are considered as being clearly trivial.
We agreed with the Audit and Risk Committee that we would report to them all uncorrected audit differences in excess of £1.43m
(2025: £1.17m), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted
reporting on qualitative grounds.
We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of
other relevant qualitative considerations in forming our opinion.
Other information
The other information comprises the information included in the annual report other than the financial statements and our
auditor’s report thereon. The Directors are responsible for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated
in this report, we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and, in doing so, consider whether the other information is materially
inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise appears to be
materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to
determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we
have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact.
We have nothing to report in this regard.
Opinions on other matters prescribed by the Companies Act 2006
In our opinion the part of the Directors’ Remuneration Report to be audited has been properly prepared in accordance with the
Companies Act 2006.
In our opinion, based on the work undertaken in the course of the audit:
●
the information given in the Strategic Report and the Directors’ Report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
●
the Strategic Report and Directors’ Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we
have not identified material misstatements in the Strategic Report or Directors’ Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report
to you if, in our opinion:
●
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches
not visited by us; or
●
the financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the
accounting records and returns; or
●
certain disclosures of Directors’ remuneration specified by law are not made; or
●
we have not received all the information and explanations we require for our audit.
Corporate Governance Report
We have reviewed the Directors’ statement in relation to going concern, longer-term viability and that part of the Corporate
Governance Report relating to the Company’s compliance with the provisions of the UK Corporate Governance Code specified
for our review by the UK Listing Rules.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Report is materially consistent with the financial statements or our knowledge obtained during the audit:
The City of London Investment Trust plc Annual Report 2026
66
Independent Auditor’s Report to the Members
ofThe City of London Investment Trust plc
(continued)
●
Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 73;
●
Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the
period is appropriate set out on page 33;
●
Director’s statement on whether it has a reasonable expectation that the Company will be able to continue in operation and
meets its liabilities set out on page 33;
●
Directors’ statement on fair, balanced and understandable set out on page 61;
●
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 31;
●
The section of the annual report that describes the review of effectiveness of risk management and internal control systems
set out on page 49; and
●
The section describing the work of the Audit and Risk Committee set out on page 51.
Responsibilities of Directors
As explained more fully in the Statement of Directors’ Responsibilities set out on page 61, the Directors are responsible for the
preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as
the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
isa high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a
material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or
inthe aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these
financial statements.
Explanation as to what extent the audit was considered capable of detecting
irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our
responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to
fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for
example, forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of
detecting irregularities, including fraud is detailed below.
However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of
the Company and management.
●
We obtained an understanding of the legal and regulatory frameworks that are applicable to the Company and determined
that the most significant are UK GAAP, the Companies Act 2006, the UK Listing Rules, the UK Corporate Governance Code,
the Statement of Recommended Practice for the Financial Statements of Investment Trust Companies as issued by the
Association of Investment Companies, Section 1158 of the Corporation Tax Act 2010 and The Companies (Miscellaneous
Reporting) Regulations 2018.
●
We understood how the Company is complying with those frameworks through discussions with the Audit and Risk
Committee and Company Secretary, review of Board and committee minutes and review of papers provided to the Audit and
Risk Committee.
●
We assessed the susceptibility of the Company’s financial statements to material misstatement, including how fraud might
occur by considering the key risks impacting the financial statements.
●
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations.
Our procedures involved review of the reporting to the Directors with respect to the application of the documented policies and
procedures and review of the financial statements to ensure compliance with the reporting requirements of the Company.
The City of London Investment Trust plc Annual Report 2026
67
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s
website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Other matters we are required to address
●
Following the recommendation from the Audit and Risk Committee, we were appointed by the Company on 31 October 2023
to audit the financial statements for the year ending 30 June 2024 and subsequent financial periods.
●
The period of total uninterrupted engagement including previous renewals and reappointments is three years, covering the
year ended 30 June 2026.
●
The audit opinion is consistent with the additional report to the Audit and Risk Committee.
Use of our report
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to
state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report, or
for the opinions we have formed.
Mike Gaylor (Senior statutory auditor)
For and on behalf of Ernst & Young LLP
Statutory Auditor
London
15 September 2026
Independent Auditor’s Report to the Members
ofThe City of London Investment Trust plc
(continued)
The City of London Investment Trust plc Annual Report 2026
68
Financial
Statements
69
Income Statement
Year ended 30 June 2026 Year ended 30 June 2025
Notes
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
2 Gains on investments held at fair
value through profit or loss – 409,587 409,587 – 244,522 244,522
3 Income from investments held at
fair value through profit or loss 119,588 – 119,588 112,223 – 112,223
4 Other interest receivable and
similar income 290 – 290 242 – 242
Gross revenue and capital
gains 119,878 409,587 529,465 112,465 244,522 356,987
5 Management fee (2,417) (5,639) (8,056) (2,006) (4,680) (6,686)
6 Other administrative expenses (1,453) – (1,453) (1,228) – (1,228)
Net return before finance costs
and taxation 116,008 403,948 519,956 109,231 239,842 349,073
7 Finance costs (1,852) (3,954) (5,806) (1,954) (4,191) (6,145)
Net return before taxation 114,156 399,994 514,150 107,277 235,651 342,928
8 Ta xation (733) – (733) (812) – (812)
Net return after taxation 113,423 399,994 513,417 106,465 235,651 342,116
9 Return per ordinary share -
basic and diluted 22.52p 79.43p 101.95p 21.57p 47.74p 69.31p
The total columns of this statement represent the Company’s Income Statement. The revenue return and capital return columns
are supplementary to this and are prepared under guidance published by the Association of Investment Companies. All revenue
and capital items in the above statement derive from continuing operations. The Company has no recognised gains or losses
other than those recognised in the Income Statement.
The notes on pages 73 to 88 form part of these financial statements
70
The City of London Investment Trust plc Annual Report 2026
Statement of Changes in Equity
Notes Year ended 30 June 2026
Called up
share capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other capital
reserves
£’000
Revenue
reserve
£’000
Total
£’000
At 1 July 2025 125,666 1,073,479 2,707 1,081,493 48,694 2,332,039
Net return after taxation – – – 399,994 113,423 513,417
17, 18, 19 Sale of 9,147,762 ordinary
shares from treasury – 8,079 – 38,277 – 46,356
17, 18 Issue of 12,407,238 new
ordinary shares 3,102 65,378 – – – 68,480
10 Dividends paid – – – – (109,799) (109,799)
At 30 June 2026 128,768 1,146,936 2,707 1,519,764 52,318 2,850,493
Notes Year ended 30 June 2025
Called up
share capital
£’000
Share
premium
account
£’000
Capital
redemption
reserve
£’000
Other capital
reserves
£’000
Revenue
reserve
£’000
Total
£’000
At 1 July 2024 125,666 1,072,624 2,707 849,910 46,621 2,097,528
Net return after taxation – – – 235,651 106,465 342,116
17, 19 Buyback of 2,530,895
ordinary shares for treasury – – – (11,154) – (11,154)
17, 18, 19 Sale of 1,685,000 ordinary
shares from treasury – 855 – 7,086 – 7,941
10 Dividends paid – – – – (104,392) (104,392)
At 30 June 2025 125,666 1,073,479 2,707 1,081,493 48,694 2,332,039
The notes on pages 73 to 88 form part of these financial statements
71
The City of London Investment Trust plc Annual Report 2026
Statement of Financial Position
Notes
30 June 2026
£’000
30 June 2025
£’000
Fixed assets
11 Investments held at fair value through profit or loss
Listed at market value in the United Kingdom 2,667,474 2,163,235
Listed at market value overseas 210,207 190,162
Investments on loan 107,991 102,131
12 Investment in subsidiary undertakings 347 347
2,986,019 2,455,875
Current assets
13 Debtors 16,428 14,443
16,428 14,443
14 Creditors: amounts falling due within one year (36,172) (22,552)
Net current liabilities (19,744) (8,109)
Total assets less current liabilities 2,966,275 2,447,766
15 Creditors: amounts falling due after more than one year (115,782) (115,727)
Net assets 2,850,493 2,332,039
Capital and reserves
17 Called up share capital 128,768 125,666
18 Share premium account 1,146,936 1,073,479
19 Capital redemption reserve 2,707 2,707
19 Other capital reserves 1,519,764 1,081,493
20 Revenue reserve 52,318 48,694
21 Total shareholders’ funds 2,850,493 2,332,039
21 Net asset value per ordinary share - basic and diluted 553.42p 472.53p
The financial statements on pages 70 to 88 were approved by the Board of Directors on 15 September 2026 and signed on its
behalf by:
Sir Laurie Magnus CBE
Chairman
The notes on pages 73 to 88 form part of these financial statements
Registration number: 34871
72
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements
1 Accounting policies
(a) Basis of accounting
The Company is a registered investment company as defined in Section 833 of the Companies Act 2006 and is
incorporated in the UK. It operates in the UK and is registered at the address on page 107.
The financial statements have been prepared in accordance with the Companies Act 2006, FRS 102, the Financial
Reporting Standard applicable in the UK and Republic of Ireland, and with the Statement of Recommended Practice:
Financial Statements of Investment Trust Companies and Venture Capital Trusts (the “SORP”) issued in July 2022 by the
Association of Investment Companies.
The principal accounting policies applied in the presentation of these financial statements are set out below. These policies
have been consistently applied to all the years presented.
As an investment fund the Company has the option, which it has taken, not to present a cash flow statement. A cash flow
statement is not required when an investment fund meets all the following conditions: substantially all of the entity’s
investments are highly liquid, substantially all of the entity’s investments are carried at market value, and the entity provides
a Statement of Changes in Equity. The Directors have assessed that the Company meets all of these conditions.
The financial statements have been prepared under the historical cost basis except for the measurement at fair value of
investments. In applying FRS 102, financial instruments have been accounted for in accordance with Section 11 and 12 of
the standard. All of the Company’s operations are of a continuing nature.
The financial statements of the Company’s three subsidiaries have not been consolidated on the basis of immateriality.
Consequently, the financial statements present information about the Company as an individual entity. The Directors
consider that the values of the subsidiary undertakings are not less than the amounts at which they are included in the
financial statements.
The preparation of the Company’s financial statements on occasion requires the Directors to make judgements, estimates
and assumptions that affect the reported amounts in the primary financial statements and the accompanying disclosures.
These assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of
assets or liabilities affected in the current and future periods, depending on circumstance.
The decision to allocate special dividends as income or capital and the allocation of expenses to income or capital are
judgements taken by the Directors. Neither of these have any impact on net assets but do impact the net revenue return
that is available to pay dividends from current year revenue in any specific year, The Directors believe that any accounting
judgements or estimates applied to this set of financial statements do not create significant risk of material adjustments in
the future to the carrying amount of assets and liabilities.
(b) Going concern
The assets of the Company consist of securities that are readily realisable. As set out in the Viability Statement, the Directors
consider three model scenarios that stress test the revenue reserves. None of the results from these scenarios would
threaten the viability of the Company and its ability to continue as a going concern. The Directors have also considered the
current geopolitical and macroeconomic uncertainties and the impact of potentially catastrophic events, whether man-made
or natural disasters, including cash flow forecasting, a review of covenant compliance including the headroom above the
most restrictive covenants and an assessment of the liquidity of the portfolio. They have concluded that the Company is able
to meet its financial obligations, including the repayment of the bank overdraft, as they fall due for a period to 15 September
2027, which is at least 12 months from the date of approval of the financial statements. Having assessed these factors, the
principal risks and other matters discussed in connection with the Viability Statement, the Board has determined that it is
appropriate for the financial statements to be prepared on a going concern basis.
(c) Valuation of investments held at fair value through profit or loss
Listed investments are valued at fair value, which is deemed to be closing bid market prices or the last traded price
depending on the convention of the exchange on which the investment is quoted.
The only unquoted investments are the Company’s subsidiaries which are valued at the net asset value according to their
latest financial statements and this is considered to be fair value.
Changes in the fair value of investments held at fair value through profit or loss and gains and losses on disposal are
recognised in the Income Statement as “Gains on investments held at fair value through profit or loss”. Transaction costs
incurred on the purchase and disposal of investments are recognised as a capital item in the Income Statement. All
purchases and sales are accounted for on a trade date basis.
73
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
1 Accounting policies (continued)
(d) Foreign currency
The results and financial position of the Company are expressed in pounds sterling, which is the functional currency and
presentational currency of the Company. Sterling is the functional currency because it is the currency of the primary
economic environment in which the Company operates.
Transactions recorded in overseas currencies during the year are translated into sterling at the appropriate daily exchange
rates. Assets and liabilities denominated in overseas currencies at the Statement of Financial Position date are translated
into sterling at the exchange rates ruling at that date.
Any gains or losses on the translation of foreign currency balances, whether realised or unrealised, are taken to the capital
or to the revenue return of the Income Statement, depending on whether the gain or loss is of a capital or revenue nature.
(e) Income
Dividends receivable from equity shares are taken to the revenue return on an ex-dividend basis except where, in the
opinion of Directors, the dividend is capital in nature in which case it is taken to the capital return. Special dividends are
recognised on an ex-dividend basis and treated as capital or revenue depending on the facts and circumstances of each
dividend. Bank interest and stock lending revenue are accounted for on an accruals basis.
The ordinary element of scrip dividends received in lieu of cash dividends is recognised as revenue. Any enhancement
above the cash dividend is treated as capital.
Fees earned from stock lending are accounted for on an accruals basis and shown in the revenue return based on
amounts to which the Company is entitled. This is after deduction of amounts withheld by the counterparty arranging the
stock lending facility. The stock lending accounting policy is set out in note 16.3.
(f) Management and other administrative expenses and finance costs
All expenses and finance costs are accounted for on an accruals basis. In accordance with the Board’s expectation, over
the long term, that investment returns will be attributable 70% to capital and 30% to revenue, the Company charges to
capital 70% of the finance costs (excluding dividends payable on the preference and preferred ordinary stocks) and
management fees with the remaining 30% being charged to revenue. Other administrative expenses are charged 100% to
revenue except where they relate directly to a capital transaction.
(g) Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
The tax currently payable is based on the taxable profit for the year. Taxable profit differs from net profit as reported in the
Income Statement because it excludes items of income or expense that are taxable or deductible in other years and it further
excludes items that are never taxable or deductible. The Company’s liability for current tax is calculated using the effective tax
rate of corporation tax for the accounting period.
The tax effect of different items of expenditure is allocated between the capital return and revenue return using the Company’s
effective rate of tax for the year. In line with the recommendations of the SORP, the allocation method used to calculate tax relief
on expenses presented against capital returns in the supplementary information in the Income Statement is the “marginal
basis”. Under this basis, if taxable income is capable of being offset entirely by expenses presented in the revenue return
column of the Income Statement, then no tax relief is transferred to the capital return column.
Deferred taxation is provided on all timing differences that have originated but not reversed by the Statement of Financial
Position date. This is subject to deferred tax assets only being recognised if it is considered more likely than not that there will
be suitable profits from which the future reversal of timing differences can be deducted. Any liability to deferred tax is provided
at the average rate of tax expected to apply based on tax rates and laws that have been enacted or substantially enacted at the
Statement of Financial Position date. Deferred tax assets and liabilities are not discounted to reflect the time value of money.
(h) Borrowings
Overdrafts and secured notes are initially recorded at the value of the proceeds received, net of direct issue costs. They are
subsequently measured at amortised cost. Finance costs, including interest payable, premiums payable on settlement or
redemption and direct issue costs, are accounted for on an accruals basis in the Income Statement using the effective
interest rate method and are added to the carrying amount of the instrument to the extent that they are not settled in the
period in which they arise.
74
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
1 Accounting policies (continued)
(i) Preference stocks
The preference and preferred ordinary stocks have been assessed against the criteria set out in section 22.5 of FRS 102
and are deemed to be debt and are therefore classified as financial liabilities. The dividends associated with the preference
and preferred ordinary stocks are fixed amounts paid in priority to dividends on ordinary shares and on a winding up are
repaid in priority to ordinary shareholders. Dividends in respect of preference and preferred ordinary stocks are charged
fully to the Company’s revenue return within finance costs.
(j) Dividends payable to shareholders
Dividends payable to shareholders are recognised in the financial statements when they are paid, or in the case of final
dividends, when they are approved by shareholders. Dividends are disclosed in the Statement of Changes in Equity.
(k) Issue and repurchase of ordinary shares and associated costs
The proceeds from the issue of new ordinary shares (including those relating to the sale of shares out of treasury) and the
aggregate cost of repurchasing ordinary shares (including those to be held in treasury) are taken directly to equity and dealt
with in the Statement of Changes in Equity. Issue costs incurred in respect of shares sold out of treasury are offset against
proceeds received and dealt with in other capital reserves. Share issues and repurchase transactions are accounted for on
a trade date basis.
(l) Capital and reserves
Called up share capital represents the nominal value of ordinary shares issued.
The share premium account represents the premium above nominal value received by the Company on issuing shares
net of issue costs and proceeds of sales of shares held in treasury in excess of the weighted average purchase price paid
by the Company to repurchase the shares.
The revenue reserve represents accumulated revenue profits retained by the Company that have not currently been
distributed to shareholders as a dividend.
The capital redemption reserve represents the nominal value of ordinary shares, preference stock and preferred ordinary
stock that have been repurchased and cancelled.
Other capital reserves are split into two components, the capital reserve arising on investments sold and the capital
reserve arising on revaluation of investments held. The following analyses what is accounted for in each of these
components.
Capital reserve arising on investments sold
The following are accounted for in this reserve: gains and losses on disposals of investments; expenses and finance costs
allocated to capital net of tax relief; realised foreign exchange differences of a capital nature; and cost of repurchasing
ordinary share capital.
Capital reserve arising on revaluation of investments held
The following are accounted for in this reserve: increases and decreases in the valuation of investments held at the year
end; and unrealised foreign exchange differences of a capital nature.
(m) Distributable reserves
The Company’s capital reserve arising on investments sold and revenue reserve may be distributed by way of a dividend.
There may however, be other factors that restrict the value of reserves that can be distributed. In the case of the Company,
there are small priority amounts that are payable to preference stock and preferred stockholders, which amount to less
than 1% of distributable reserves at 30 June 2026. In addition, unrealised fair value losses on investments held would be
deducted from distributable reserves, but at 30 June 2026, the Company had unrealised fair value gains of
£1,060,369,000.
75
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
2 Gains on investments held at fair value through profit or loss
2026
£’000
2025
£’000
Gains on the sale of investments based on historical cost 32,290 65,072
Revaluation gains recognised in previous years (24,326) (50,280)
Gains on investments sold in the year based on carrying value at the previous Statement of
Financial Position date 7,964 14,792
Revaluation of investments held at 30 June 401,624 229,729
Exchange (losses)/gains (1) 1
Total gains on investments held at fair value through profit or loss 409,587 244,522
3 Income from investments held at fair value through profit or loss
2026
£’000
2025
£’000
UK dividends:
Listed - ordinary dividends
103,858 97,526
Listed - special dividends
252 616
104,110 98,142
Other dividends:
Dividend income – overseas investments 8,399 8,665
Dividend income – UK REIT 7,079 5,416
15,478 14,081
119,588 112,223
4 Other interest receivable and similar income
2026
£’000
2025
£’000
Bank interest
65 1
Underwriting commission (allocated to revenue)
1
7 5
Stock lending revenue
218 236
290 242
1 During the year the Company was not required to take up shares in respect of its underwriting (2025:none)
Stock lending revenue has been shown net of brokerage fees of £55,000 (2025: £59,000).
76
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
5 Management fee
2026 2025
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Management fee 2,417 5,639 8,056 2,006 4,680 6,686
A summary of the terms of the Management Agreement is given on page 25 and in note 23 on page 88.
Details of apportionment between revenue and capital can be found in note 1 on page 74.
6 Other administrative expenses
1
2026
£’000
2025
£’000
Directors’ fees and expenses (see Directors’ Remuneration Report on page 59) 214 215
Auditors’ remuneration – for statutory audit services 67 65
Marketing 600 377
Bank charges (overdraft facility fees) 10 10
Annual and Half Year reports 33 28
Registrar’s fees 80 80
AIC subscriptions 29 23
Listing fees 259 219
Advisory and consultancy fees 31 75
Depositary fees 63 63
Other expenses 67 73
1,453 1,228
1 Administrative expenses include VAT where applicable
All transactions with Directors are disclosed in the Directors’ Remuneration Report and are related party transactions.
7 Finance costs
2026 2025
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
(Restated*)
£’000
Capital
return
(Restated*)
£’000
Total
return
(Restated*)
£’000
Interest on secured notes repayable wholly or partly
– between one and five years (includes amortisation
of issue costs) 487 1,137 1,624 485 1,132 1,617
– after five years (includes amortisation of issue
costs) 685 1,598 2,283 693 1,616 2,309
Bank overdraft interest 523 1,219 1,742 619 1,443 2,062
Dividends per share:
– cumulative first preference stock 18 – 18 18 – 18
– non-cumulative second preference stock 21 – 21 21 – 21
– non-cumulative preferred ordinary stock 118 – 118 118 – 118
1,852 3,954 5,806 1,954 4,191 6,145
* Restated to reflect the 4.53% secured notes expiry on 22 January 2029
Details of apportionment between revenue return and capital return can be found in note 1 on page 74.
77
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
8 Taxation
Analysis of tax charge for the year
2026 2025
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Analysis of tax charge for the year
Overseas withholding tax 1,199 – 1,199 1,108 – 1,108
Less: overseas withholding tax recoverable (466) – (466) (296) – (296)
733 – 733 812 – 812
The UK corporation tax rate is 25% (2025: 25%). The tax charge for the year is lower than the corporation tax rate. The
differences are explained below:
Factors affecting the tax charge for the year
2026 2025
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Revenue
return
£’000
Capital
return
£’000
Total
return
£’000
Net return before taxation 114,156 399,994 514,150 107,277 235,651 342,928
Corporation tax at 25% (2025: 25%) 28,539 99,999 128,538 26,819 58,913 85,732
Effects of:
Non-taxable UK dividends (25,571) – (25,571) (24,391) – (24,391)
Non-taxable overseas dividends (2,556) – (2,556) (2,568) – (2,568)
Overseas tax suffered 733 – 733 812 – 812
Excess management expenses (451) 2,398 1,947 101 2,218 2,319
Preference and preferred ordinary dividends not
allowable for tax 39 – 39 39 – 39
Net capital gains not subject to tax – (102,397) (102,397) – (61,131) (61,131)
733 – 733 812 – 812
Investment trusts are exempt from corporation tax on capital gains provided that the Company complies with tests under
Section 1158 of the Corporation Tax Act 2010.
Deferred taxation
No provision for deferred taxation has been made in the current or prior accounting year. The Company has not provided
for deferred tax on capital gains or losses arising on the revaluation and disposal of investments as it is exempt from tax on
these items because of its investment trust status.
Factors that may affect future tax charges
The Company can offset management fees, other administrative expenses and interest costs against taxable income to
eliminate any tax charge on such income. The tax legislation refers to these as management expenses (management
fees and other administrative expenses) and non-trade loan relationship deficits (interest costs) and these are captured
together under the heading “Excess management expenses” in the table above. Where these are not fully utilised, they
can be carried forward to future years. As the Company is unlikely to generate future taxable profits to utilise these
amounts, the Company cannot recognise an asset to reflect them, but must still disclose the deferred tax amount
carried forward arising from any unutilised amounts.
Consequently, the Company has not recognised a deferred tax asset totalling £43,692,000 (2025: £42,680,000) arising
as a result of having unutilised management expenses and unutilised non-trade loan relationship deficits totalling
£174,768,000 (2025: £170,721,000). These expenses will only be utilised, to any material extent, if changes are made
either to the tax treatment of the capital gains made by investment trusts or to the Company’s investment profile which
require them to be used.
78
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
9 Return per ordinary share – basic and diluted
The return per ordinary share is based on the net return attributable to the ordinary shares of £513,417,000
(2025: £342,116,000) and on 503,585,202 ordinary shares (2025: 493,599,088), being the weighted average number
ofordinary shares in issue during the year, excluding treasury shares.
The return per ordinary share is analysed between revenue and capital as below.
2026
£’000
2025
£’000
Net revenue return 113,423 106,465
Net capital return 399,994 235,651
Net total return 513,417 342,116
Weighted average number of ordinary shares in issue during the year 503,585,202 493,599,088
2026
Pence
2025
Pence
Revenue return per ordinary share 22.52 21.57
Capital return per ordinary share 79.43 47.74
Total return per ordinary share 101.95 69.31
The Company does not have any dilutive securities, therefore the basic and diluted returns per share are the same.
10 Dividends paid on ordinary shares
Record date Payment date
2026
£’000
2025
£’000
Fourth interim dividend (5.25p) for the year ended 30 June 2024
26 July 2024 30 August 2024 – 25,953
First interim dividend (5.25p) for the year ended 30 June 2025
25 October 2024 29 November 2024 – 25,953
Second interim dividend (5.25p) for the year ended 30 June 2025
24 January 2025 28 February 2025 – 25,953
Third interim dividend (5.40p) for the year ended 30 June 2025
25 April 2025 30 May 2025 – 26,580
Fourth interim dividend (5.40p) for the year ended 30 June 2025
25 July 2025 29 August 2025 26,650 –
First interim dividend (5.40p) for the year ended 30 June 2026
24 October 2025 28 November 2025 27,018 –
Second interim dividend (5.40p) for the year ended 30 June 2026
23 January 2026 27 February 2026 27,344 –
Third interim dividend (5.65p) for the year ended 30 June 2026
24 April 2026 29 May 2026 28,815 –
Unclaimed dividends over 12 years old
(28) (47)
109,799 104,392
In accordance with FRS 102, interim dividends payable to equity shareholders are recognised in the Statement of Changes
in Equity when they have been paid to shareholders.
All dividends have been paid or will be paid out of revenue reserves or current year revenue profits and at no point during
the year did the revenue reserve move to a negative position.
The total dividends payable in respect of the financial year which form the basis of the test under Section 1158 of the
Corporation Tax Act 2010 are set out below.
2026
£’000
2025
£’000
Revenue available for distribution by way of dividend for the year 113,423 106,465
First interim dividend of 5.40p (2025: 5.25p) (27,018) (25,953)
Second interim dividend of 5.40p (2025: 5.25p) (27,344) (25,953)
Third interim dividend of 5.65p (2025: 5.40p) (28,815) (26,580)
Fourth interim dividend of 5.70p (2025: 5.40p) paid on 28 August 2026¹ (29,385) (26,650)
Transfer to revenue reserve² 861 1,329
1 Based on 515,522,106 ordinary shares in issue at 23 July 2026 (the ex-dividend date) (2025: 493,517,106)
2 The surplus of £861,000 (2025: surplus of £1,329,000) has been taken to the revenue reserve
Since the year end, the Board has announced a first interim dividend of 5.70p per ordinary share in respect of the year ending
30 June 2027. This will be paid on 30 November 2026 to holders registered at the close of business on 23 October 2026.
TheCompany’s shares will go ex-dividend on 22 October 2026.
79
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
11 Investments held at fair value through profit or loss
2026
Investments in
subsidiaries
£’000
Other investments
£’000
Total
£’000
Valuation at 1 July 2025 347 2,455,528 2,455,875
Investment holding gains at 1 July 2025 – (683,071) (683,071)
Cost at 1 July 2025 347 1,772,457 1,772,804
Additions at cost – 248,896 248,896
Disposals at cost – (96,050) (96,050)
Cost at 30 June 2026 347 1,925,303 1,925,650
Investment holding gains at 30 June 2026 – 1,060,369 1,060,369
Valuation at 30 June 2026 347 2,985,672 2,986,019
2025
Investments in
subsidiaries
£’000
Other investments
£’000
Total
£’000
Valuation at 1 July 2024 347 2,246,245 2,246,592
Investment holding gains at 1 July 2024 – (503,622) (503,622)
Cost at 1 July 2024 347 1,742,623 1,742,970
Additions at cost – 170,312 170,312
Disposals at cost – (140,478) (140,478)
Cost at 30 June 2025 347 1,772,457 1,772,804
Investment holding gains at 30 June 2025 – 683,071 683,071
Valuation at 30 June 2025 347 2,455,528 2,455,875
The portfolio valuation at 30 June 2026 of £2,985,672,000 (2025: £2,455,528,000) is shown on the Statement of Financial
Position as investments held at fair value through profit or loss.
At 30 June 2026, the total value of securities on loan by the Company for stock lending purposes was £107,991,000
(2025: £102,131,000). The maximum aggregate value of securities on loan at any one time during the year ended 30 June
2026 was £360,430,000 (2025: £383,119,000). The Company’s agent holds collateral at 30 June 2026, with a value of
£114,313,000 (2025: £108,057,000) in respect of securities on loan, the value of which is reviewed on a daily basis and
comprises CREST Delivery By Value (“DBVs”) and Government Bonds with a market value of 106% (2025: 106%) of the
market value of any securities on loan.
Purchase transaction costs for the year ended 30 June 2026 were £1,251,000 (2025: £845,000). These comprise mainly of
stamp duty and commission. Sale transaction costs for the year ended 30 June 2026 were £49,000 (2025: £65,000).
The Company received £128,340,000 (2025: £205,550,000) from investments sold in the year. The book cost of these
investments when they were purchased were £96,050,000 (2025: £140,478,000). These investments have been revalued
over time and until they were sold any unrealised gains/losses were included in the fair value of the investments.
12 Subsidiaries and related undertakings
The Company’s related undertakings are its three wholly-owned subsidiary undertakings, all of which are registered in
England and Wales: The City of London European Trust Limited, City of London Investments Limited and The City of
London Finance Company Limited.
The financial statements of the three companies have not been consolidated on the basis of immateriality. Consequently
the financial statements present information about the Company as an individual entity. The Directors consider that the
values of the subsidiary undertakings are not less than the amounts at which they are included in the financial statements.
The subsidiaries are maintained in order to protect the company names.
●
The City of London European Trust Limited was incorporated in 1899 as Patrick & McGregor Limited and is dormant,
not having traded since 1968. Its registered office is 201 Bishopsgate, London, EC2M 3AE. The aggregate amount of
the capital and reserves of The City of London European Trust Limited at 30 June 2026 was £347,000 (2025: £347,000).
This Company has 10,000 issued ordinary shares of £1 each.
●
City of London Investments Limited is a dormant company and has not traded since its incorporation in 1982. Its registered
office is 201 Bishopsgate, London, EC2M 3AE. The aggregate amount of the capital and reserves of City of London
Investments Limited at 30 June 2026 was £2 (2025: £2). This company has two issued ordinary shares of £1 each.
80
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
12 Subsidiaries and related undertakings (continued)
●
The City of London Finance Company Limited was incorporated in 1978 as a share dealing company. It is a dormant
company, having not traded since 2009. Its registered office is 201 Bishopsgate, London, EC2M 3AE. The aggregate
amount of capital and reserves of The City of London Finance Company Limited at 30 June 2026 was £2 (2025: £2). This
company has two issued ordinary shares of £1 each.
13 Debtors
2026
£’000
2025
£’000
Withholding and income tax recoverable 2,724 2,526
Sales for future settlement 1,871 –
Share issues for future settlement – 1,960
Prepayments and accrued income 11,833 9,957
16,428 14,443
14 Creditors: amounts falling due within one year
2026
£’000
2025
£’000
Bank overdraft 31,611 17,020
Amounts owed to subsidiary undertakings 347 347
Purchases for future settlement – 1,776
Dividends payable on preference and preferred ordinary stocks 79 79
Accruals and deferred income 4,135 3,330
36,172 22,552
The Company has an uncommitted overdraft facility of £120,000,000 at 30 June 2026 (2025: £120,000,000) provided by
its Custodian and has provided a floating charge over its assets in return. The overdraft may be withdrawn by the
Custodian at any time and is repayable on demand. Interest on the overdraft was payable at a rate of HSBC base rate
plus 1.25% at 30 June 2026 (2025: plus 1.25%). Covenants relating inter alia to a maximum level of borrowings apply to
the Company’s borrowing facility. A breach of these covenants may result in any overdraft drawn down becoming
repayable immediately. Further details are provided in note 16.6 on page 86.
15 Creditors: amounts falling due after more than one year
2026
£’000
2025
£’000
4.53% secured notes 2029 34,895 34,856
2.67% secured notes 2046 29,782 29,774
2.94% secured notes 2049 49,706 49,698
£301,982 cumulative first preference stock 302 302
£507,202 non-cumulative second preference stock 507 507
£589,672 non-cumulative preferred stock 590 590
115,782 115,727
On 22 January 2014 the Company issued £35,000,000 (nominal) 4.53% secured notes due 2029, net of issue costs
totalling £476,000. The issue costs will be amortised over the life of the secured notes.
On 17 November 2017 the Company issued £50,000,000 (nominal) 2.94% secured notes due 2049, net of issue costs
totalling £360,000. The issue costs will be amortised over the life of the secured notes.
On 19 March 2021 the Company issued £30,000,000 (nominal) 2.67% secured notes due 2046, net of issue costs totalling
£257,000. The issue costs will be amortised over the life of the secured notes.
The repayment terms of the secured notes are as follows:
●
£35,000,000 4.53% secured notes 2029 redeemable at par on 22 January 2029.
●
£30,000,000 2.67% secured notes 2046 redeemable at par on 19 March 2046.
●
£50,000,000 2.94% secured notes 2049 redeemable at par on 17 November 2049.
81
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
15 Creditors: amounts falling due after more than one year (continued)
The notes are secured by a first floating charge over the Company’s assets.
A summary of the rights that attach to each of the preference and preferred ordinary stocks, all of which are non-
redeemable, is given below.
First Preference Stock Second Preference Stock Preferred Ordinary Stock
a) Rights to dividends A fixed cumulative
dividend of 6% per
annum, of which 5.5%
is payable in preference
to the dividend on the
second preference
stock and 0.5% is
payable after it.
A fixed non-cumulative
dividend of 4.2% per
annum, which is
payable after the first
5.5% per annum
entitlement on the first
preference stock.
A fixed non-cumulative
dividend of 20% per
annum, which is
payable after the
entitlements on the
first and second
preference stocks.
b) Priority and amounts
receivable on a winding-up
Repayment of capital in
priority to payment to
the other members of
the Company. Any
arrears of dividend are
payable after the
repayment of the capital
on the second
preference stock.
Repayment of capital
after the repayment
of the capital on the
first preference stock.
Payment of £3.50 in
respect of each £1 of
capital, after the
repayment of the
entitlements on the
first and second
preference stocks.
c) Voting rights at general
meetings
Right to attend and
vote at general
meetings. On a poll,
voting rights are one
vote per £10 of stock
held.
No rights to attend or
vote at general
meetings (except on a
winding-up of the
Company or if
dividends are in
arrears).
Right to attend and
vote at general
meetings. On a poll,
voting rights are one
vote per £20 of stock
held.
Notes:
i) The dividend entitlements of the first preference stock and the preferred ordinary stock reverted on 6 April 1999 to the rates which applied before 6 April 1973
ii) In the event of a winding-up, the preferred ordinary stock would be repaid at £3.50 per £1 of stock. However, its share of equity shareholders’ funds is
included in the financial statements at par because no winding-up is envisaged
16 Risk management policies and procedures
The Directors manage investment risk principally through setting an investment policy (that is approved by shareholders)
which incorporates risk parameters (see page 23), by contracting management of the Company’s investments to an
investment manager (Janus Henderson) under a contract which incorporates appropriate duties and restrictions and by
monitoring performance in relation to these. Internal control and the Board’s approach to risk is on pages 31 and 32.
Therehave been no material changes to the management or nature of the Company’s investment risks from the prior year.
The main risks arising from the Company’s pursuit of its investment objective are market risk (comprising market price risk,
currency risk and interest rate risk), credit risk and liquidity risk. The effects of these can also be increased by gearing.
The Board and Janus Henderson coordinate the Company’s risk management and there are various risk management
systems in place as detailed below.
●
Straight-through processing via a deal order and management system (“OMS”) is utilised for listed securities.
●
Portfolio modelling and investment management functions (including order-raising, dealing and trade execution) are
performed using one of, or a combination of, the following third-party software applications: Charles River
Development OMS and/or Imagine.
●
Fund pricing and accounting services are outsourced to a third-party administrator (currently BNP Paribas) which
utilises HiPortfolio software.
●
The IT tools to which the Janus Henderson risk, compliance and operations teams have access for independent
monitoring and risk measurement purposes include:
– Charles River Compliance module for investment restrictions monitoring;
– SAI360 operational risk database;
– RiskMetrics, UBS Delta, Style Research and Barra for market risk measurement;
– Bloomberg for market data and price-checking; and
– HiPortfolio for portfolio holdings and valuations.
82
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
16 Risk management policies and procedures (continued)
16.1 Market risk
The fair value of a financial instrument held by the Company may fluctuate due to changes in market prices. This market
risk comprises market price risk (see note 16.1.1), currency risk (see note 16.1.2) and interest rate risk (see note 16.1.3).
TheFund Managers assess the exposure to market risk when making each investment decision, and monitor the overall
level of market risk on the whole of the investment portfolio on an ongoing basis.
16.1.1 Market price risk
Market price risk (changes in market prices other than those arising from interest rate risk or currency risk) may affect the
value of investments. The Company’s investments are susceptible to market price risk arising from uncertainties about the
future prices of the investments.
Management of the risk
The Board manages the risks inherent in the investment portfolio by ensuring full and timely access to relevant information
from Janus Henderson. The Board meets regularly and at each meeting reviews investment performance. The Board
monitors Janus Henderson’s compliance with the Company’s objectives, including investment strategy and asset allocation.
When appropriate, the Company may buy/sell put or call options or futures on indices and on equity investments in its
portfolio to manage its exposure to price risk or to generate income. At 30 June 2026, the Company had no open positions
(2025: nil).
Concentration of exposure to market price risk
An analysis of the Company’s investment portfolio is shown on pages 20 and 21. This shows that the majority of the
Company’s investments are in UK-listed companies. Accordingly, there is a concentration of exposure to the UK, though
itis recognised that an investment’s country of domicile or of listing does not necessarily equate to its exposure to the
economic conditions in that country.
Market price risk sensitivity
The sensitivity of (a) the return after taxation for the year and (b) the Company’s net assets to an increase or decrease of
10% in the fair values of the Company’s investments at each Statement of Financial Position date is shown below. This level
of change is considered to be reasonably possible, based on observation of current market conditions.
The impact of a 10% increase in the value of the investments on the revenue return as at 30 June 2026 is a decrease of
£269,000 (2025: £221,000) and on the capital return is an increase of £297,940,000 (2025: £245,037,000). The total impact
on equity shareholders’ funds would be an increase of £297,671,000 (2025: £244,816,000).
The impact of a 10% decrease in the value of the investments on the revenue return as at 30 June 2026 is an increase of
£269,000 (2025: £221,000) and on the capital return is a decrease of £297,940,000 (2025: £245,037,000). The total impact
on equity shareholders’ funds would be a decrease of £297,671,000 (2025: £244,816,000).
16.1.2 Currency risk
The Company is not itself materially exposed to currency risk, although some of the investments will be in companies that
have operations that involve currency risk and pay dividends in foreign currencies.
Management of the risk
Investment income denominated in foreign currencies is converted into sterling on receipt. The Company does not use
financial instruments to mitigate the currency exposure in the period between the time that income is included in the
financial statements and its receipt. However, the Company does sometimes hedge foreign currency exposure ahead of
the declaration of dividends from companies in which it invests.
Foreign currency exposure
The fair values of the Company’s monetary items that have foreign currency exposure at 30 June 2026 are £4,752,000
(2025: £2,350,000).
Foreign currency sensitivity
The Company’s sensitivity to movements in exchange rates affecting its investment income, assuming a 10% movement in
the sterling/US dollar rate, will be a loss of £1,715,000 (2025: £1,456,000) if sterling strengthens and a profit of £2,480,000
(2025: £2,513,000) if sterling weakens and, assuming a 10% movement in the sterling/euro rate, will be a loss of £54,000
(2025: £129,000) if sterling strengthens and a profit of £1,042,000 (2025: £1,051,000) if sterling weakens. The 10%
movement has been based on average market volatility in exchange rates in the previous 12 months.
83
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
16 Risk management policies and procedures (continued)
16.1.3 Interest rate risk
Interest rate movements may affect:
●
the level of income receivable from cash at bank and on deposit; and
●
the interest payable on the Company’s variable rate bank borrowings.
Management of the risk
The Company, generally, does not hold significant cash balances. The Company finances part of its activities through
borrowings at levels approved and monitored by the Board. Derivative contracts have not been used during the year to
hedge against the exposure to interest rate risk. There has been no hedging during the year.
Interest rate exposure
The Company’s exposure at 30 June 2026 of financial liabilities to fixed interest rate risk can be found in note 15. The
exposure to floating interest rates can be found on the Statement of Financial Position under cash at bank and under bank
overdraft in note 14.
Interest receivable and finance costs are at the following rates:
●
interest paid on borrowings under the overdraft facility provided by the Custodian is at a margin of 1.25% above the
HSBC base rate (2025: same).
The table below analyses the Company’s aggregated interest costs and principal amounts due over the life of the liabilities.
2026 2025
Within
1 year
£’000
Between 1
and 5 years
£’000
More than
5 years
£’000
Within
1 year
£’000
Between 1
and 5 years
£’000
More than
5 years
£’000
Secured notes
1
3,857 47,255 119,210 3,857 48,840 121,481
Preference stock and preferred ordinary stock
2
157 628 1,399 157 628 1,399
Bank overdrafts and interest 31,611 – – 17,020 – –
Other creditors and accruals 4,561 – – 5,532 – –
40,186 47,883 120,609 26,566 49,468 122,880
1 The above figures show interest payable over the remaining term of the secured notes. The figure in the “between 1 and 5 years” column also includes the
capital to be repaid on the 2029 secured notes. The figure in the “more than 5 years” column also includes the capital to be repaid on the 2046 and 2049
secured notes. Details of repayment are set out on page 81 and interest payment dates on page 97
2 The figures in the “more than 5 years” columns are the repayments at par value of the preference and preferred ordinary stock. They do not include the
ongoing annual finance cost of £157,000
Interest rate risk sensitivity
The Company is not materially exposed to changes in interest rates.
16.2 Liquidity risk
This is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities.
Management of the risk
Liquidity risk is not significant as the majority of the Company’s assets is in investments in quoted equities that are readily
realisable. For details of the Company’s bank borrowing facility, see note 14.
The Board gives guidance to Janus Henderson as to the maximum amount of the Company’s resources that should be
invested in any one company. The policy is that the Company should remain fully invested in normal market conditions and
that short-term borrowings should be used to fund short-term cash requirements.
Liquidity risk exposure
The remaining contractual maturities of the financial liabilities at 30 June 2026, based on the earliest date on which
payment can be required, is given on page 81.
84
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
16 Risk management policies and procedures (continued)
16.3 Credit and counterparty risk
The failure of the counterparty to a transaction to discharge its obligations under that transaction could result in the Company
suffering a loss.
Management of the risk
The risk is not significant and is managed as follows:
●
investment transactions are carried out with a large number of brokers, whose credit standard is reviewed periodically
by the Manager, and limits are set on the amount that may be due from any one broker; and
●
cash at bank and overdrafts is held only with reputable banks with high quality external credit ratings.
Stock lending transactions are carried out with a number of approved counterparties, whose credit rating is reviewed
regularly and limits are set on the amount that may be lent to any one counterparty. Stock lending is the temporary transfer
of securities by a lender to a borrower, with an agreement by the borrower to return equivalent securities to the lender at an
agreed future date. Stock lending revenue is received for making the investments available to the borrower, which
increases the returns on the portfolio. Securities lent are disclosed separately in the Statement of Financial Position. Details
of the value of securities on loan at the year end, and the collateral held, can be found in note 11.
In summary, the Company only transacts with counterparties considered to be creditworthy. In addition to the stock
lending exposure referred to above, the exposure to credit and counterparty risk at 30 June 2026 was to other debtors of
£16,428,000 (2025: £14,443,000).
None of the Company’s financial assets are past their due date or impaired.
16.4 Fair values of financial assets and financial liabilities
The financial assets and financial liabilities (other than long-term liabilities) are either carried in the Statement of Financial
Position at their fair value or at a reasonable approximation of their fair value (sales for future settlement, dividends, interest
receivable, purchases for future settlement, accruals and deferred income, bank overdraft). The secured notes, preference
stocks and preferred ordinary stock are carried in the Statement of Financial Position at par.
At 30 June 2026, the fair value of the secured notes was estimated to be £84,928,000 (2025: £85,446,000). At 30 June
2026, the fair value of the preference and preferred ordinary stock was £2,635,000 (2025: £2,635,000). The valuation of the
preference and preferred ordinary stock is from the Daily Official List quotations.
The fair value of the secured notes is calculated using a discount rate which reflects the yield of a UK Gilt of similar maturity
plus a suitable credit spread.
The preference stocks and preferred ordinary stock are categorised as Level 1 in the fair value hierarchy. The secured
notes are categorised as Level 3 in the fair value hierarchy. These are not included in the values in note 16.5.
16.5 Fair value hierarchy disclosures
The table below sets out fair value measurements using FRS 102 fair value hierarchy.
Financial assets at fair value through profit or loss at 30 June 2026
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Equity investments 2,985,672 – 347 2,986,019
Total 2,985,672 – 347 2,986,019
Financial assets at fair value through profit or loss at 30 June 2025
Level 1
£’000
Level 2
£’000
Level 3
£’000
Total
£’000
Equity investments 2,455,528 – 347 2,455,875
Total 2,455,528 – 347 2,455,875
Categorisation within the hierarchy has been determined on the basis of the lowest level input that is significant to the fair
value measurement of the relevant asset as follows:
Level 1 – the unadjusted quoted prices in an active market for identical assets or liabilities that the entity can access at the
measurement date;
Level 2 – inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for
the asset or liability, either directly or indirectly; and
Level 3 – inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
The valuation techniques used by the Company are explained in the accounting policies note on page 73.
85
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
16 Risk management policies and procedures (continued)
16.6 Capital management policies and procedures
The Company’s capital management objectives are to ensure that it will be able to continue as a going concern, and to
provide long-term growth in income and capital, principally by investment in UK equities.
The Company’s capital at 30 June 2026 comprises its equity share capital, reserves and bank debt that are shown in the
Statement of Financial Position as a total of £2,850,493,000 (2025: £2,332,039,000).
The Company is subject to several externally imposed capital requirements:
●
borrowings under the overdraft facility are not to exceed the lower of £120,000,000 or 15% of the portfolio;
●
as a public company, the Company has a minimum share capital of £50,000;
●
in order to be able to pay dividends out of profits available for distribution by way of dividends, the Company has to be
able to meet one of the two capital restriction tests imposed on investment companies by company law; and
●
the terms of the secured notes include financial covenants in relation to the level of borrowings, including net worth
not being less than £400,000,000, the ratio of gross borrowings to net worth not exceeding 50%, and gross
borrowings owed to the custodian not exceeding the greater of 12% of net worth and £80,000,000 (for the 2029
notes)/£120,000,000 (for the 2046 and 2049 notes).
The Company has complied with these requirements.
Other than in exceptional market conditions, gearing will not exceed 20% of the net asset value at the time of the draw
down of the relevant borrowings.
17 Called up share capital
Number of
shares held
in treasury
Number of
shares entitled
to dividend
Total number
of shares in
issue
Nominal value
of total
shares in issue
£’000
Allotted and issued ordinary shares of 25p each
At 1 July 2025 9,147,762 493,517,106 502,664,868 125,666
Sale of shares from treasury (9,147,762) 9,147,762 – –
Issue of new shares – 12,407,238 12,407,238 3,102
At 30 June 2026 – 515,072,106 515,072,106 128,768
Number of
shares held
in treasury
Number of
shares entitled
to dividend
Total number
of shares in issue
Nominal value
of total
shares in issue
£’000
Allotted and issued ordinary shares of 25p each
At 1 July 2024 8,301,867 494,363,001 502,664,868 125,666
Buyback of shares for treasury 2,530,895 (2,530,895) – –
Sale of shares from treasury (1,685,000) 1,685,000 – –
At 30 June 2025 9,147,762 493,517,106 502,664,868 125,666
During the year the Company sold 9,147,762 ordinary shares from treasury with total proceeds of £46,356,000, and
12,407,238 new ordinary shares were issued for total proceeds of £68,480,000 (2025: the Company sold 1,685,000
ordinary shares from treasury with total proceeds of £7,941,000 and bought back into treasury 2,530,895 shares for a net
payment of £11,154,000) after deduction of issue costs of £452,000 (2025: £12,000). The average price of the ordinary
shares that were issued was 536.6p (2025: 468.5p).
86
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
18 Share premium account
£’000
At 1 July 2025 1,073,479
Sale of shares from treasury 8,079
Issue of new shares 65,830
Less: issue costs (452)
At 30 June 2026 1,146,936
£’000
At 1 July 2024 1,072,624
Sale of shares from treasury 855
At 30 June 2025 1,073,479
19 Other capital reserves
Capital
redemption
reserve
£’000
Capital reserve arising
on revaluation of
investments held
£’000
Capital reserve
arising on
investments sold
£’000
Total other
capital
reserves
£’000
At 1 July 2025 2,707 683,071 398,422 1,081,493
Transfer on disposal of investments – (24,326) 24,326 –
Net gains on investments
1
– 401,624 7,964 409,588
Exchange losses – – (1) (1)
Sale of shares from treasury – – 38,277 38,277
Management fees charged to capital – – (5,639) (5,639)
Finance costs charged to capital – – (3,954) (3,954)
At 30 June 2026 2,707 1,060,369 459,395 1,519,764
Capital
redemption
reserve
£’000
Capital reserve arising
on revaluation of
investments held
£’000
Capital reserve
arising on
investments sold
£’000
Total other
capital
reserves
£’000
At 1 July 2024 2,707 503,622 346,288 849,910
Transfer on disposal of investments – (50,280) 50,280 –
Net gains on investments – 229,729 14,792 244,521
Exchange gains – – 1 1
Buyback of shares to treasury – – (11,154) (11,154)
Sale of shares from treasury – – 7,086 7,086
Management fees charged to capital – – (4,680) (4,680)
Finance costs charged to capital – – (4,191) (4,191)
At 30 June 2025 2,707 683,071 398,422 1,081,493
1 During the year the Company received special dividends totalling £3,011,000 (2025: no special dividends) which were deemed to be capital in nature and
were taken to the capital reserve arising on investments sold. These dividends are available to be distributed to shareholders as part of realised capital profits
87
The City of London Investment Trust plc Annual Report 2026
Notes to the Financial Statements (continued)
20 Revenue reserve
£’000
At 1 July 2025 48,694
Net return for the year 113,423
Dividends paid (note 10) (109,799)
At 30 June 2026 52,318
£’000
At 1 July 2024 46,621
Net return for the year 106,465
Dividends paid (note 10) (104,392)
At 30 June 2025 48,694
21 Net asset value per ordinary share – basic and diluted
The net asset value per ordinary share of 553.42p (2025: 472.53p) is based on the net assets attributable to the ordinary
shares of £2,850,493,000 (2025: £2,332,039,000) and on 515,072,106 (2025: 493,517,106) shares in issue on 30 June
2026, excluding treasury shares.
An alternative net asset value per ordinary share can be calculated by deducting from the total assets less current liabilities
of the Company the preference and preferred ordinary stocks and secured notes at their market (or fair) values rather than
at their par (or book) values. The net asset value per ordinary share at 30 June 2026 calculated on this basis was 558.89p
(2025: 478.14p). See page 93 for further details of the Alternative Performance Measure and how it is calculated.
The movements during the year of the assets attributable to the ordinary shares were as follows: £’000
Total net assets attributable to the ordinary shares at 30 June 2025 2,332,039
Total net return after taxation 513,417
Dividends paid on ordinary shares in the year (109,799)
Sale of shares from treasury 46,356
Issue of new shares 68,480
Total net assets attributable to the ordinary shares at 30 June 2026 2,850,493
The Company does not have any dilutive securities.
22 Capital commitments and contingent liabilities
Capital commitments
There were no capital commitments as at 30 June 2026 (2025: none).
Contingent liabilities
There were no contingent liabilities as at 30 June 2026 (2025: none).
23 Transactions with the Manager and related parties
The Company appointed subsidiaries of Janus Henderson Group to provide investment management, accounting,
secretarial and administrative services under an agreement dated 22 July 2014. This agreement was updated and restated
with effect from 15 February 2024. Janus Henderson has contracted BNP Paribas to provide accounting and
administration services.
The management fee is charged at 0.3% per annum of net assets under management on the first £3 billion of assets and
0.275% thereafter. The total of management fees paid or payable to Janus Henderson under this agreement in respect of
the year ended 30 June 2026 was £8,056,000 (2025: £6,686,000). The amount outstanding at 30 June 2026 was
£2,131,000 (2025: £1,740,000).
In addition to the above services, Janus Henderson facilitates marketing activities with third parties which are recharged to
the Company. The total fees paid or payable for these services for the year ended 30 June 2026 amounted to £580,000
including VAT (2025: £367,000) of which £521,000 was outstanding at 30 June 2026 (2025: £180,000).
Details of fees paid to Directors are included in the Directors’ Remuneration Report on page 59 and in note 6 on page 77.
88
The City of London Investment Trust plc Annual Report 2026
Additional
Information
89
Securities Financing Transactions (unaudited)
The Company engages in Securities Financing Transactions (as defined in Article 3 of Regulation (EU) 2015-2365, securities
financing transactions include repurchase transactions, securities or commodities lending and securities or commodities
borrowing, buy-sell back transactions and margin lending transactions). In accordance with Article 13 of the Regulation, the
Company’s involvement in and exposures related to securities lending for the year ended 30 June 2026 are detailed below.
Global Data
The amount of securities on loan as a proportion of total lendable assets and the Company’s net assets as at 30 June 2026 are
disclosed below:
Stock lending 2026
Market value of securities on loan £’000 % of lendable assets % of assets under management
107,991 3.62 3.79
Concentration Data
The ten largest collateral issuers across all the securities financing transactions as at 30 June 2026 are disclosed below:
Issuer
Market value of
collateral received
£’000
Government of United States of America 9,083
Alibaba 7,640
Government of Japan 4,812
AGL Energy 4,554
Westgold 4,553
Aurizon 4,553
Ampol 4,553
J Front Retail 4,553
Tosoh 4,552
Sandfire 4,267
53,120
The top ten counterparties of each type of securities financing transactions as at 30 June 2026 are disclosed below:
Counterparty
Market value of
securities on loan
£’000
Macquarie 42,952
Barclays 29,953
Morgan Stanley 12,563
HSBC 6,064
Skandinaviska Enskilda 4,347
Goldman Sachs 3,624
UBS 2,504
Société Générale 2,070
BNP Paribas 2,048
Bank of Nova Scotia 1,866
107,991
All counterparties are shown.
The City of London Investment Trust plc Annual Report 2026
90
Securities Financing Transactions (unaudited) (continued)
Aggregate Transaction Data
The following table discloses a summary of aggregate transaction data related to the collateral received from securities on loan as at
30 June 2026:
Stock lending
Counterparty
Counterparty
country of
origin Type Quality
Collateral
currency
Settlement
basis Custodian
Market
value of
collateral
received
£’000
Macquarie Australia Equity Main Market Listing AUD Tri-party HSBC 30,120
Equity Main Market Listing JPY Tri-party HSBC 10,944
Equity Main Market Listing HKD Tri-par ty HSBC 4,465
Barclays UK Equity Main Market Listing HKD Tri-party HSBC 19,047
Equity Main Market Listing EUR Tri-party HSBC 12,701
Equity Main Market Listing CAD Tri-party HSBC 2
Morgan Stanley US Government Debt Investment Grade USD Tri-party HSBC 5,277
Government Debt Investment Grade JPY Tri-party HSBC 4,812
Government Debt Investment Grade EUR Tri-party HSBC 2,638
Equity Main Market Listing EUR Tri-party HSBC 429
Equity Main Market Listing SGD Tri-par ty HSBC 31
Equity Main Market Listing USD Tri-par ty HSBC 10
HSBC UK Equity Main Market Listing GBP Tri-party HSBC 2,571
Equity Main Market Listing EUR Tri-party HSBC 1,928
Equity Main Market Listing USD Tri-par ty HSBC 1,048
Equity Main Market Listing SEK Tri-party HSBC 643
Equity Main Market Listing NOK Tri-par ty HSBC 238
Skandinaviska Sweden Equity Main Market Listing JPY Tri-party HSBC 3,200
Enskilda Government Debt Investment Grade EUR Tri-party HSBC 454
Equity Main Market Listing USD Tri-par ty HSBC 439
Equity Main Market Listing CHF Tri-party HSBC 333
Equity Main Market Listing EUR Tri-party HSBC 177
Goldman Sachs US Government Debt Investment Grade USD Tri-party HSBC 3,805
UBS Switzerland Equity Main Market Listing JPY Tri-party HSBC 1,247
Equity Main Market Listing USD Tri-par ty HSBC 662
Equity Main Market Listing HKD Tri-par ty HSBC 256
Equity Main Market Listing SGD Tri-par ty HSBC 199
Equity Main Market Listing AUD Tri-party HSBC 169
Equity Main Market Listing GBP Tri-party HSBC 65
Equity Main Market Listing CAD Tri-party HSBC 57
Société Générale France Equity Main Market Listing USD Tri-party HSBC 2,176
Equity Main Market Listing EUR Tri-party HSBC 19
BNP Paribas France Equity Main Market Listing EUR Tri-party HSBC 1,208
Equity Main Market Listing CHF Tri-party HSBC 394
Equity Main Market Listing GBP Tri-party HSBC 394
Equity Main Market Listing JPY Tri-party HSBC 175
Government Debt Investment Grade USD Tri-party HSBC 1
Bank of Nova Scotia Canada Equity Main Market Listing GBP Tri-par ty HSBC 944
Equity Main Market Listing USD Tri-par ty HSBC 425
Equity Main Market Listing CAD Tri-party HSBC 208
Equity Main Market Listing AUD Tri-party HSBC 197
Equity Main Market Listing CHF Tri-party HSBC 141
Equity Main Market Listing EUR Tri-party HSBC 64
114,313
The lending and collateral transactions are on an open basis and can be recalled on demand.
The City of London Investment Trust plc Annual Report 2026
91
Re-use of collateral
The Company does not engage in re-use of collateral.
Return and cost
The return and cost of engaging in securities lending by the Company and the securities lending agent in absolute terms and as
a percentage of overall returns are disclosed below:
Total gross amount of
securities lending income
Direct and indirect costs
andfees deducted by
securities lending agent
% return of the securities
lending agent
Net securities lending
incomeretained by the
Company % return of the Company
£273,000 £55,000 20 £218,000 80
Securities Financing Transactions (unaudited) (continued)
The City of London Investment Trust plc Annual Report 2026
92
Alternative Performance Measures (unaudited)
The Company uses the following Alternative Performance Measures (“APMs”) throughout the annual report, financial statements
and notes to the financial statements. The APMs are reconciled to the financial statements through the narrative below. The
Board believes that each of the APMs, which are typically used within the investment trust sector, provide additional useful
information to shareholders to help assess the Company’s performance against its peer group.
Performance is calculated based on the daily NAV per ordinary share published as at the year-end date with debt at fair value.
The NAV per share reported in the financial statements may differ due to the financial statements being prepared on a different
basis to the daily NAV in order to comply with accounting standards, or adjustments made in the preparation of the financial
statements subsequent to the published NAV.
Discount or Premium
The amount by which the market price per share of an investment trust is either higher (premium) or lower (discount) than the
NAV per share, expressed as a percentage of the NAV per ordinary share.
NAV with debt at
fair value
Pence
NAV with debt at
par value
Pence
Share price
Pence
Premium/
(discount)
to fair
value NAV
%
Premium/
(discount)
to par
value NAV
%
At 30 June 2026 558.89 553.42 566.00 1.3 2.3
At 30 June 2025 478.14 472.53 487.50 2.0 3.2
Gearing/(Net Cash)
Gearing means borrowing money to buy assets with the expectation that the return on investments bought will exceed the
interest cost of the borrowings. The gearing percentage reflects the amount of borrowings (e.g. bank loans, overdrafts or
secured notes) the Company has used to invest in the market, and is calculated by taking the difference between total
investments (see note 11 on page 80) and total shareholders’ funds (see Statement of Financial Position), dividing this by total
shareholders’ funds and multiplying by 100 as indicated below:
2026 2025
Investments held at fair value through profit or loss (see note 11) (£’000) (A) 2,985,672 2,455,528
Net assets (page 72) (£’000) (B) 2,850,493 2,332,039
Gearing (C = A/B -1) (%) (C) 4.7 5.3
The Company can also use synthetic gearing through derivatives and foreign exchange hedging.
NAV with Debt at Par and Fair Value
2026
£’000
2025
£’000
Investments held at fair value through profit or loss (see note 11) 2,985,672 2,455,528
Investment in subsidiary undertakings (see note 12) 347 347
Current assets (see page 72) 16,428 14,443
Creditors: amounts falling due within one year (see note 14) (36,172) (22,552)
Creditors: amounts falling due after more than one year (see note 15) (115,782) (115,727)
NAV with debt at par (A) 2,850,493 2,332,039
Less: fair value of preference and preferred stock and secured notes (see note 16.4) (87,563) (88,081)
Add back: par value of preference and preferred stock and amortised cost of secured notes 115,782 115,727
NAV with debt at fair value (B) 2,878,712 2,359,685
Ordinary shares in issue excluding treasury shares (see note 17) (C) (number) (C) 515,072,106 493,517,106
NAV per ordinary share with debt at par (see page 72) (A/C x 100) (pence) 553.42 472.53
NAV per ordinary share with debt at fair value (B/C x 100) (pence) 558.89 478.14
The aggregate NAV is also referred to as total shareholders’ funds in the Statement of Financial Position. The NAV per ordinary
share is published daily and the year end NAV can be found on page 72 and further information is available on page 88 in note 21.
The City of London Investment Trust plc Annual Report 2026
93
Alternative Performance Measures (unaudited) (continued)
Ongoing Charge
The ongoing charge ratio has been calculated in accordance with the guidance issued by the AIC. It represents the total investment
management fee and other administrative expenses expressed as a percentage of the average net asset values with debt at fair
value throughout the year.
2026
£’000
2025
£’000
Management fee (see note 5) 8,056 6,686
Other administrative expenses (see note 6) 1,453 1,228
Less: non-recurring expenses (95) (31)
Ongoing charge 9,414 7,883
Average net assets¹ 2,631,120 2,200,090
Ongoing charge ratio 0.36% 0.36%
1 Calculated using the average daily net asset value with debt at fair value
The non-recurring expenses primarily include costs associated with the Board evaluation process, legal fees regarding a review
of the Company’s Articles of Association and stocklending agreement and additional marketing costs associated with the
Company’s 60th anniversary of dividend growth (2025: Board evaluation and research on the Company and its competitors).
Revenue Earnings per Share
The revenue earnings per share is the revenue return for the year (see Income Statement) divided by the weighted average
number of ordinary shares in issue during the year (see note 9 on page 79).
Revenue Reserve per Share
The revenue reserve per share is the revenue reserve (see Statement of Financial Position) at the year end divided by the number
of shares in issue (see note 17 on page 86) at the year end date.
Total Return
The total return is the return on the share price or NAV with debt at fair value taking into account both the rise and fall of NAVs/
share prices and dividends paid to shareholders. Each component of the total return needs to be compounded as a geometric
return to arrive at the total return. Any dividends received by a shareholder are assumed to have been reinvested in either
additional shares (for share price total return) or the Company’s assets (for NAV with debt at fair value total return). The dividend
reinvestment factor is based on geometric returns. Dividends paid and payable are set out in note 10 on page 79.
2026 2025
NAV per share with
debt at fair value Share price
NAV per share with
debt at fair value Share price
Opening NAV/share price per share (pence)
478.14 487.50 429.57 420.00
Closing NAV/share price per share (pence)
558.89 566.00 478.14 487.50
Change in the year (%)
16.9 16.1 11.3 16.1
Impact of dividends reinvested (%)
4.3 4.2 4.9 4.9
Total return for the year (%)
21.9 21.0 16.8 21.8
Yield
The yield is the annual dividend expressed as a percentage of the year end share price.
30 June
2026
30 June
2025
Annual dividend (pence) (A) 22.15 21.30
Share price (pence) (B) 566.0 487.5
Yield (C = A/B) (%) (C) 3.9 4.4
The City of London Investment Trust plc Annual Report 2026
94
Glossary
Alternative Investment Fund Managers
Directive (“AIFMD”)
The AIFMD classifies certain investment vehicles, including
investment companies, as Alternative Investment Funds
(“AIFs”) and requires them to appoint an Alternative
Investment Fund Manager (“AIFM”) and depositary
tomanage and oversee the operations of the investment
vehicle. TheBoard of Directors retains responsibility for
strategy, operations and compliance and the Directors
retaina fiduciary dutyto shareholders.
Alternative Performance Measures
Details of alternative performance measures used by the
Company can be found on pages 93 and 94.
Association of Investment Companies
(“AIC”)
The Company is a member of the AIC which is the trade
body for investment companies and represents the industry
in relation to various matters which impact the regulation of
such entities. The Company is a constituent of the UK Equity
Income sector.
Benchmark
A measure against which performance is compared. For the
Company this is the FTSE All-Share Index.
Custodian
The custodian is responsible for ensuring the safe custody
of the Company’s assets and ensuring that all transactions
in the underlying holdings are transacted in an accurate and
timely manner.
Depositary
As an AIF, the Company is required to appoint a depositary
who has responsibility for overseeing the operations of the
Company including safekeeping, cash monitoring and
verification of ownership and valuation. TheDepositary is
strictly liable for the loss of any investments or other assets in
its custody unless it has notified that ithas discharged its
liability in certain markets. TheDepositary has confirmed that
it has not discharged liability inrelation to any of the
Company’s assets.
The Depositary has further confirmed that, in all material
respects, the Company has been managed in accordance
with the FCA’s Investment Funds Sourcebook, the Company’s
Articles of Association and as required by the AIFMD.
Derivative
A contract between two or more parties in relation to an
underlying security. The value of a derivative will fluctuate in
accordance with the value of the security and is a form of
gearing as the fluctuations in value are usually greater than
thefluctuations in the underlying security’s value. Examples
ofderivatives are put and call options, swap contracts,
futuresand contracts for difference. Foreign exchange,
interest rates and commodities may also be traded using
derivative contracts.
Dividend Dates
When declared or recommended, each dividend will have
three key dates applied to it. The payment date is the date on
which shareholders will receive their dividend, either by BACS
transfer or by receipt of a dividend cheque. The record date
applied to the dividend is used as a cut-off for the Company’s
Registrar to know which shareholders should be paid a
dividend. Only shareholders on the Register of Members at
the close of business on the record date will receive the
dividend. The ex-dividend date is the business day before the
record date and is the date upon which the Company’s net
asset value will be disclosed ex-dividend.
Investment Trusts
Investment trusts are public limited companies, listed on the
London Stock Exchange, which provide shareholders with a
professionally managed portfolio of investments. Investment
trusts are exempt from tax on the capital gains arising on
their investments subject to meeting certain criteria. Income,
net of expenses and tax, is substantially distributed to
shareholders. Investment trusts are also known as
investment companies, although the tax legislation retains
the reference to investment trusts.
Liquidity
In the context of the liquidity of shares in the stock market, this
refers to the availability of buyers in the market for the share in
question. Where the market in a particular share is described as
liquid, that share will be in demand and holders wishing to sell
their shares should find ready buyers. Conversely, where the
market in a share is illiquid the difficulty of finding a buyer will
tend to depress the price that might be negotiated for a sale.
Market Capitalisation
The market value of a company, calculated by multiplying the
mid-market price per share by the number of shares in issue.
Ongoing Charge
The ongoing charge reflects those expenses of a type which
are likely to recur in the foreseeable future, whether charged
to revenue or capital, and which relate to the operation of
theCompany as a collective fund, excluding the costs of
acquisition or disposal of investments, finance costs and
gains or losses arising on investments. Details of the
calculation of the ongoing charge can be found on page 94.
Simple versus Weighted Average
The simple average ignores the fund size and assigns an equal
weight to all data points. Under the weighted average, greater
importance (weight) is assigned to funds of a larger size.
The City of London Investment Trust plc Annual Report 2026
95
General Shareholder Information
AIFMD Disclosures and Remuneration
In accordance with the AIFMD, information in relation to the
Company’s leverage and remuneration of Janus Henderson
Fund Management UK Limited, asthe Company’s AIFM are
required to be made available to investors. These disclosures,
including those on the AIFM’s remuneration policy, are
contained in an AIFMD Disclosure document which can
befound on the Company’s website.
BACS
Dividends and interest can be paid to shareholders and
stockholders by means of BACS (Bankers’ Automated Clearing
Services); mandate forms for this purpose are available from the
Registrar. Alternatively, shareholders can write to the Registrar to
give their instructions; these must include thebank account
number, the bank account title and the sort code ofthe bank to
which payments are tobe made.
Common Reporting Standard (“CRS”)
Tax legislation requires the Company toprovide personal
information to HMRC on certain investors who purchase
shares in investment trusts. This information is provided
annually to thelocal tax authority of the tax residencies of
anumber of non-UK based certificated shareholders and
corporate entities.
Cost Disclosures
The FCA published final rules for the new Consumer
Composite Investments regime in December 2025. The new
regime, which will apply fully from 8 June 2027, will introduce
updated requirements for the presentation of costs and
charges information for closed-ended funds. While an annual
ongoing costs figure must be shown as the main headline, it
will exclude transaction costs, performance fees, and one-off
costs, which must instead be disclosed separately. The new
rules will also not require closed-end investment funds to
include the cost of gearing and borrowing in their cost
disclosures.
Equality Act 2010
This report and other documents issued by the Company are
available from the Corporate Secretary. If needed, copies can
be made available in a variety of formats, including larger type.
A ‘typetalk’ operator (provided by the Royal National Institute
for Deaf People) is available to support speech and hearing-
impaired people to make telephone calls. Please dial 18001
followed by the number you wish to dial.
General Data Protection Regulation
(“GDPR”)
A privacy statement can be found on the website
www.janushenderson.com.
Individual Savings Account (“ISA”)
The Company intends to continue to manage its affairs in
order toqualify as an eligible investment for a stocks and
shares ISA.
Non-Mainstream Pooled Investments
Status
The Company currently conducts its affairs so that its
ordinary shares of 25p each can be recommended by IFAs
to ordinary retail investors in accordance with the FCA’s rules
in relation to non-mainstream investment products and
intends to continue to do so for the foreseeable future.
Theshares are excluded from the FCA’s restrictions which
apply to non-mainstream investment products because
theyare shares in an investment trust.
Performance Details/Share Price
Information
Information about the Company’s share price and NAV is
available onits website, www.cityinvestmenttrust.com
andin the London Stock Exchange Daily Official List.
TheCompany’s NAV is published daily.
The market price of the Company’s ordinary shares is
published dailyin The Financial Times and other leading
newspapers. TheFinancial Times also shows figures for
theestimated NAV andthe premium/discount.
Shareholder Details
Shareholders who hold their shares in certificated form can
check their shareholding with the Registrar, Computershare
Investor Services PLC, via www.investorcentre.co.uk.
To gain access to your details on the Computersharesite
youwill need the holder reference number shown on your
share certificate.
Taxonomy Regulation
Regulation (EU) 2020/852 establishes the basis for the EU
taxonomy. This is a classification system, establishing a list of
environmentally sustainable economic activities to provide
companies, investors and policymakers with appropriate
definitions for which economic activities can be considered
environmentally sustainable. The Company confirms that the
investments underlying this financial product do not take into
account the EU criteria for environmentally sustainable
economic activities.
The City of London Investment Trust plc Annual Report 2026
96
FCA Share Fraud Warning
Investment and pension scams are
often sophisticated and di�cult to spot
Be a ScamSmart investor and spot the warning signs
Fraudsters will often:
• contact you out of the blue
• apply pressure to invest quickly
• downplay the risks to your money
• promise tempting returns that sound too good to be true
• say that they’re only making the o�er available to you or
even ask you to not tell anyone else about it
How to avoid investment and pension scams
If you’re suspicious, report it
You can report the �rm or scam to us by
contacting our Consumer Helpline on
0800 111 6768 or using our reporting form
using the link below.
If you’ve lost money in a scam, contact
Report Fraud on 0300 123 2040 or
www.reportfraud.police.uk
Reject unexpected o�ers
Scammers usually cold call, but contact
can also come by email, post, word of mouth
or at a seminar. If you’ve been o�ered an
investment out of the blue, chances are it’s
a high risk investment or a scam.
Check the FCA Warning List
Use the FCA Warning List to check the risks
of a potential investment – you can also search
to see if the �rm is known to be operating without
our authorisation.
Get impartial advice
Get impartial advice before investing – don’t use
an adviser from the �rm that contacted you.
Be ScamSmart and visit
www.fca.org.uk/scamsmart
1
2
3
Financial Calendar
Financial Calendar
Annual results: September
Annual General Meeting: October
Half-year results: February
Dividends
1
Ordinary shares:
●
first interim payable on 30 November
●
second interim payable on 28 February
●
third interim payable on 31 May
●
fourth interim payable on 31 August
Preference and preferred ordinary stocks:
●
payable on 28 February and 31 August
1 Payments are made on the nearest working day prior tothedatesindicated
Secured Notes Interest
4.53% secured notes 2029:
●
payable on 22 January and 22 July
1
Redeemable at par on 22 January 2029
2.94% secured notes 2049:
●
payable on 17 May and 17 November
1
Redeemable at par on 17 November 2049
2.67% secured notes 2046:
●
payable on 19 March and 19 September
1
Redeemable at par on 19 March 2046
The City of London Investment Trust plc Annual Report 2026
97
Notice of
Annual General
Meeting
98
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION.
If you are in any doubt as to what action you should take, you should consult your stockbroker, solicitor, accountant or
other independent financial adviser authorised under the Financial Services and Markets Act 2000 (as amended) if you are
resident in the UK, or if not, from another appropriately authorised independent financial adviser in your own jurisdiction.
If you have sold, transferred or otherwise disposed of all your shares or other voting securities in The City of London
Investment Trust plc, please pass this document, but not any accompanying personalised Form of Proxy, to the purchaser
or transferee or to the bank, stockbroker or other agent through whom or by whom the sale or transfer was made, for
delivery to the purchaser or transferee. If you have sold or transferred or otherwise disposed of only part of your holding,
you should retain this document and the accompanying Form of Proxy and consult the stockbroker, bank or other agent
through whom you made the sale, transfer or disposal.
Notice is hereby given that the 134th Annual General Meeting
ofThe City of London Investment Trust plc (the “Company”) will
be held at 201Bishopsgate, London EC2M 3AE on Thursday,
29 October 2026 at 1.00pm for the transaction of the following
business:
Ordinary Business
1 To receive the Annual Report and the audited financial
statements for the year ended 30 June 2026.
2 To approve the Directors’ Remuneration Report for the
year ended 30 June 2026.
3 To approve the Directors’ Remuneration Policy.
4 To re-elect Sir Laurie Magnus CBE as a Director of the
Company.
5 To re-elect Mr Ominder Dhillon as a Director of the
Company.
6 To re-elect Mr Robert Holmes as a Director of the
Company.
7 To re-elect Ms Sally Lake as a Director of the Company.
8 To re-elect Mrs Clare Wardle as a Director of the
Company.
9 To re-appoint Ernst & Young LLP as independent auditor
to the Company.
10 To authorise the Audit and Risk Committee to determine
the auditor’s remuneration.
Special Business
To consider and, if thought fit, pass the following resolutions,
of which resolutions 11 and 12 will be proposed as ordinary
resolutions and resolutions 13 to 17 will be proposed as
special resolutions:
11 To approve the Company’s dividend policy of continuing
to pay four quarterly interim dividends in each year.
12 THAT, in substitution for all existing authorities, the
Directors of the Company be and they are hereby
generally and unconditionally authorised pursuant to and
in accordance with Section 551 of the Companies Act
2006 to exercise all the powers of the Company to allot
ordinary shares of 25p each in the capital of the Company
(“ordinary shares”) and to grant rights to subscribe for, or
to convert any security into, ordinary shares up to an
aggregate nominal amount of £12,896,052 (orsuch other
amount as shall be equivalent to 10% of the issued
ordinary share capital at the date of passing of this
resolution, excluding shares held in treasury). This
authority shall expire at the conclusion of the next annual
general meeting of the Company or, if earlier, on
theexpiry of 15 months from the passing of this
resolution, unless renewed at a general meeting prior to
such time, save that the Directors may before such expiry
make an offer or enter into an agreement which would or
might require ordinary shares to be allotted or rights to be
granted after such expiry and the Directors may allot
ordinary shares and grant rights in pursuance of such
anoffer or agreement as if the authority conferred hereby
hadnot expired.
13 THAT, subject to the passing of Resolution 12 and in
substitution for all existing authorities, the Directors be
and they are hereby empowered pursuant to Sections
570 and 573 of the Companies Act 2006 (“the Act”) to
allot ordinary shares for cash pursuant to the authority
conferred by Resolution 12 and to sell ordinary shares
from treasury for cash as if Section 561(1) of the Act did
not apply to any such allotment or sale, provided that this
authority shall be limited to the allotment or sale of
ordinary shares:
(a) up to an aggregate nominal amount of £12,896,052
(orsuch other amount as shall be equivalent to 10% of
the issued ordinary share capital at the date of passing
of this resolution, excluding shares held in treasury); and
(b) at a price not less than the net asset value per share;
and shall expire at the conclusion of the next annual
general meeting of the Company, or if earlier, on the expiry
of 15 months from the passing of this resolution, unless
renewed at a general meeting prior to such time, save that
the Directors may before such expiry make an offer or
enter into an agreement which would or might require
Notice of Annual General Meeting
The City of London Investment Trust plc Annual Report 2026
99
Notice of Annual General Meeting (continued)
ordinary shares to beallotted or sold from treasury after
such expiry and the Directors may allot ordinary shares or
sell ordinary shares from treasury in pursuance of such an
offer or agreement as if the authority conferred hereby had
not expired.
14 THAT, in substitution for all existing authorities, the
Company be and is hereby generally and unconditionally
authorised in accordance with Section 701 of the
Companies Act 2006 (“the Act”) to make market
purchases (within the meaning of Section 693(4) of the
Act) of ordinary shares of 25p each in the capital of the
Company, on such terms and in such manner as the
Directors may from time to time determine, provided that:
(a) the maximum number of ordinary shares which may
be purchased is 14.99% of the Company’s issued
ordinary share capital at the date of the resolution,
excluding shares held in treasury (equivalent to
77,324,731 ordinary shares as at 11 September 2026,
being the last practicable date prior to publication of
this Notice);
(b) the maximum price (exclusive of expenses) which may
be paid for an ordinary share shall not exceed the higher
of:
(i) 105% of the average of the middle market
quotations for the shares as taken from the London
Stock Exchange Daily Official List for the five
business days preceding the date of purchase; and
(ii) the higher of the last independent trade and the
highest current independent bid on the London
Stock Exchange;
(c) the minimum price (exclusive of expenses) which may
be paid for an ordinary share shall be 25p, being the
nominal value per share;
(d) the authority hereby conferred shall expire at the
conclusion of the next annual general meeting of the
Company, or, if earlier, on the expiry of 15 months from
the passing of this resolution, unless such authority is
renewed before that expiry;
(e) the Company may make a contract to purchase
ordinary shares under the authority hereby conferred
which will or may be executed wholly or partly after the
expiration of such authority and may make a purchase
of ordinary shares pursuant to any such contract; and
(f) any ordinary shares so purchased shall be:
(i) cancelled immediately upon completion of the
purchase; or
(ii) held, sold, transferred or otherwise dealt with as
treasury shares in accordance with the provisions of
the Act.
15 THAT the Company be and is hereby authorised in
accordance with Section 701 of the Companies Act 2006
(“the Act”) to make market purchases (within the meaning
of Section 693(4) of the Act) of the Company’s 4.2%
cumulative first preference stock (“the First Preference
Stock”), 4.2% non-cumulative second preference stock
(“the Second Preference Stock”) and 14% non-cumulative
preferred ordinary stock (“the Preferred Ordinary Stock”)
(together “the Preferred Stock”), provided that:
(a) the maximum amount of Preferred Stock hereby
authorised to be purchased is the entire issued capital
amount of each such class of Preferred Stock as at the
date of this resolution, being:
(i) £301,982 of First Preference Stock;
(ii) £507,202 of Second Preference Stock; and
(iii) £589,672 of Preferred Ordinary Stock;
(b) the minimum price (exclusive of expenses) which may
be paid for each £1 of capital of Preferred Stock is 1p;
(c) the maximum price (exclusive of expenses) which may
be paid for each £1 of capital of Preferred Stock is an
amount equal to a yield of 175 basis points over the
50-year gilt at the time of purchase;
(d) the authority hereby conferred shall expire at the
conclusion of the next annual general meeting of the
Company, or, if earlier on the expiry of 15 months from
the passing of this resolution, unless such authority is
renewed before that expiry; and
(e) the Company may make a contract to purchase any
class of Preferred Stock under the authority hereby
conferred prior to the expiry of such authority which
will or may be executed wholly or partly after the
expiration of such authority and may make a purchase
of Preferred Stock pursuant to any such contract.
16 THAT a general meeting other than an annual general
meeting may be called on not less than 14 clear days’
notice, such authority to expire at the conclusion of the
next annual general meeting of the Company.
17 THAT with effect from the conclusion of the meeting, the
draft articles of association produced to the meeting and,
for the purposes of identification, initialled by the
Chairman be adopted as the Articles of Association of the
Company in substitution for, and to the exclusion of, the
Company’s existing Articles of Association.
By order of the Board
Janus Henderson Secretarial Services UK Limited
Corporate Secretary
15 September 2026
Registered Office:
201 Bishopsgate, London EC2M 3AE
The City of London Investment Trust plc Annual Report 2026
100
MOORGATE
BISHOPSGATE
PRIMROSE ST.
WORSHIP STREET
201 Bishopsgate
London EC2M 3AE
LIVERPOOL
STREET
STATION
APPOLD ST.
SUN STREET
BROADGATE
CIRCLE
FINSBURY PAVE.
EARL ST.
WORSHIP STREET
ROPEMAKER STR EET
LIVERPOOL ST
LONDON WALL
WILSON ST.
BISHOPSGATE
GREAT EASTERN ST.
COMMERCIAL ST.
SHOREDITCH
HOUNDSDITCH
AL DGATE
MIDDLESEX
STREET
CHISWELL STREET
SOUTH PLACE
ELDON ST.
FINSBU RY
CIRCUS
CITY ROAD
FINSBURY SQ.
FINSBURY SQ.
CLIFTON ST.
SPITALFIELDS
MARKET
FOLGATE ST.
NORTON
MIDDLESEX ST.
BRUSHFIELD STREET
APPOLD ST.
Janus Henderson Investors is located in the
City of London at 201 Bishopsgate. It is a few
minutes’ walk from Liverpool Street Station.
Notice of Annual General Meeting (continued)
Explanations of the Resolutions
The information below is an explanation of the business to be
considered at the 2026 Annual General Meeting. Shareholders
are welcome to attend the AGM in person. The Company also
provides a facility for shareholders to watch the meeting
remotely by Zoom webinar. Shareholders wishing to watch
themeeting remotely should register in advance at
www.janushenderson.com/cty-agm. Shareholders
watching the meeting remotely will not be able to vote
throughthe webinar facility and are therefore encouraged
toappoint a proxy in advance of the AGM. Questions may
besubmitted in advance of the meeting by email to
itsecretariat@janushenderson.com, or during the meeting
via the online Q&A feature.
Resolutions 1 to 12 are proposed as ordinary resolutions.
Thismeans that for each of those resolutions to be passed more
than half of the votes cast must be in favour of the resolution.
Resolutions 13 to 17 are proposed as special resolutions.
Thismeans that for each of those resolutions to be passed
atleast three-quarters of the votes cast must be in favour of
the resolution.
Ordinary Business
Resolution 1: Annual Report
(ordinary resolution)
The Directors are required to present to the Meeting the
Annual Report and audited financial statements for the year
ended 30 June 2026, including the Strategic Report,
Directors’ Report, Independent Auditor’s Report and the
Directors’ Remuneration Report. Shareholders will be given
an opportunity to ask questions on these items at the Meeting
before being invited to receive the Annual Report and audited
financial statements.
Resolutions 2 and 3: Remuneration Report and
Remuneration Policy
(ordinary resolutions)
Shareholders are asked to approve the Directors’
Remuneration Report for the year ended 30 June 2026 and the
Directors’ Remuneration Policy, which are set out on pages 57
to 60 of the Annual Report. The vote on the Remuneration
Report is advisory and does not affect the remuneration
payable to any individual Director. However, the Board will
take feedback from shareholders regarding remuneration and
incorporate this into any future remuneration discussions. The
vote on the Directors’ Remuneration Policy is binding and put
to shareholders every three years in accordance with
legislation. The Remuneration Policy was last approved at the
AGM in 2023.
Resolutions 4 to 8: Re-election of Directors
(ordinary resolutions)
In keeping with provisions of the AIC Code of Corporate
Governance (“the AIC Code”), all Directors will be retiring at
the Meeting and offer themselves for re-election.
The Board has reviewed the performance and commitment of
the Directors standing for re-election and considers that each
of the Directors should continue in office as they bring wide,
current and relevant business experience that allows them to
contribute effectively to the leadership of the Company.
Furthermore, the Board is satisfied that, having considered
each Director’s experience and the nature of, and anticipated
demands on their time by their other business commitments,
each Director is able to commit the time required to fulfil their
responsibilities as a Director of theCompany.
The biographies of each Director, including details of their
skills and experience, are set out on pages 39 and 40 of the
Annual Report. All directors standing for re-appointment held
office throughout the year under review.
AGM Venue
The City of London Investment Trust plc Annual Report 2026
101
Notice of Annual General Meeting (continued)
Resolutions 9 and 10: Re-appointment and
remuneration of the auditor
(ordinary resolutions)
In accordance with Sections 489 and 492 of the Companies
Act 2006 (the “Act”), shareholders are required to approve the
appointment of the Company’s auditor, Ernst & Young LLP.
Ernst & Young have expressed their willingness to continue as
auditor to the Company. Following a satisfactory performance
review, the Board is recommending their re-appointment in
respect of the year ending 30 June 2027 and seeking
authority for the Audit and Risk Committee to determine their
remuneration.
Special Business
Resolution 11: Dividend payment policy
(ordinaryresolution)
The Company’s policy is to pay dividends on a quarterly
basis, with dividends declared in September, December, April
and July and paid in November, February, May and August
each year. As the fourth dividend is payable prior to the AGM,
which is held in October each year, it is declared as an interim
dividend and there is accordingly no final dividend.
The Board is conscious that this means shareholders will not
be given the opportunity to vote on payment of a final dividend.
Accordingly, shareholders are asked to confirm their ongoing
approval of the approach to paying four quarterly interim
dividends, which in the year ended 30 June 2026 totalled
22.15p per ordinary share.
Resolutions 12 and 13: Authority to allot shares
and disapply pre-emption rights
(ordinary and special
resolutions respectively)
On 30 October 2025, the Directors were granted authority to
issue up to 50,034,208 ordinary shares, having a nominal
value of £12,508,552 and representing 10% of the issued
ordinary share capital, on a non pre-emptive basis.
15,500,000 shares have been sold from treasury/issued under
this authority in the period since the 2025 AGM to
11September 2026 (the latest practicable date prior to
publication of this notice). The authorities will expire at the
2026 AGM.
Resolution 12 will renew the authority to allot shares and
Resolution 13 will authorise the Directors to disapply pre-
emption rights when issuing shares and selling shares from
treasury. The authorities will allow the Directors to issue or sell
up to 51,584,208 ordinary shares (with a nominal value of
£12,896,052) (or such other amount as shall be equivalent to
10% of the issued ordinary share capital (excluding shares
held in treasury) at the date of passing the resolution) on a non
pre-emptive basis. If renewed, the authorities will expire on
the earlier of the date falling 15 months after the passing of
the resolution and the conclusion of the next AGM.
The Board’s policy, subject to prevailing market conditions, is for
the Company’s share price to reflect closely its underlying NAV
while smoothing volatility and encouraging a liquid market in the
ordinary shares. For this reason, the Board has, when
appropriate, sought to utilise the Company’s ability to issue
additional ordinary shares to satisfy investor appetite and reduce
share price volatility by preventing the build-up of excessive
demand for the ordinary shares. By issuing the shares at a
premium to NAV, the Board seeks to protect the interests of
existing shareholders so they benefit from an enhancement to
NAV, to increase liquidity and to spread the fixed costs of the
Company over a larger asset base. The Board also seeks to
ensure that the price at which new ordinary shares are issued
remains attractive to potential investors.
Resolution 14: Repurchase of the Company’s
ordinary shares
(special resolution)
On 30 October 2025, the Directors were granted authority to
repurchase 75,001,281 ordinary shares (with a nominal value
of £18,750,320). Resolution 14 will renew the Company’s
authority to buy back shares. The authority under this
resolution is limited to the purchase of a maximum of 14.99%
of the ordinary shares in issue at the date of the resolution
(excluding shares held in treasury), equal to 77,324,731
ordinary shares at 11 September 2026.
No shares have been bought back under the existing authority
in the period to 11 September 2026. The Directors believe
that, from time to time and subject to market conditions, it will
continue to be in the shareholders’ interests to buy back the
Company’s shares when they are trading at a discount to the
underlying net asset value per share.
The Company may utilise the authority to purchase shares by
either a single purchase or a series of purchases when market
conditions allow, with the aim of maximising the benefit to
shareholders. This proposal does not indicate that the
Company will purchase shares at any particular time or price,
nor imply any opinion on the part of the Directors as to the
market or other value of the Company’s shares.
The Company may cancel or hold in treasury any shares
bought back under this authority. The authority granted under
Resolution 14 will expire at the earlier of the date falling
15 months after the passing of this resolution and the
conclusion of the next AGM and it is the present intention of
the Directors to seek a similar authority annually.
Resolution 15: Repurchase of the Company’s
Preferred Stock
(special resolution)
The Company has in issue 4.2% cumulative first preference
stock (“First Preference Stock”), 4.2% non-cumulative second
preference stock (“Second Preference Stock”) and 14%
non-cumulative preferred ordinary stock (“Preferred Ordinary
Stock”) (together the “Preferred Stock”).
On 30 October 2025, the Directors were granted authority to
repurchase for cancellation up to the entire issued capital
amount of each class of Preferred Stock. At the date of this
Notice, no repurchases have been made of any of the
Preferred Stock under this authority.
The City of London Investment Trust plc Annual Report 2026
102
Notice of Annual General Meeting (continued)
The Board considers that the Company should continue to have
the power to make market purchases of its Preferred Stock in
the event that appropriate opportunities to make such
purchases arise. Accordingly, a resolution will be proposed at
the forthcoming AGM to authorise the Company to make market
purchases for cancellation of the Preferred Stock, up to the
entire issued capital amount of each class in issue. The
maximum price that can be paid for each £1 of Preferred Stock
is an amount equal to a yield of 175 basis points over the
50-year gilt at the time of purchase. By way of example, as at
11September 2026, the 50-year gilt was at a 5.49% yield to
maturity. The lowest yield that would therefore be paid would be
7.24%, resulting in maximum prices (excluding accrued interest
and calculated as the stock interest coupon divided by the yield)
of 82.9p on the First Preference Stock, 58.0p on the Second
Preference Stock and 276.2p on the Preferred Ordinary Stock.
The Directors will only use the authority if to do so will result in
an increase in the NAV per ordinary share and will be in the
best interests of shareholders generally. This authority will
expire at the earlier of the date falling 15 months after the
passing of this resolution and the conclusion of the next AGM.
Resolution 16: Notice of general meetings
(specialresolution)
The Act and the Company’s Articles of Association provide
that all general meetings (other than an annual general
meeting) can be convened on 14 clear days’ notice. However,
one of the requirements of the Shareholders’ Rights
Regulation is that all general meetings must be held on
21clear days’ notice, unless shareholders agree to a shorter
notice period. The Board is of the view that it is in the
Company’s interests to have a shorter notice period which
allows all general meetings (other than an annual general
meeting) to be called on not less than 14 clear days’ notice.
The passing of Resolution 16 would constitute shareholders’
agreement for the purposes of the Shareholders’ Rights
Regulation and would therefore preserve the Company’s
ability to call general meetings (other than an annual general
meeting) on 14 clear days’ notice. The Board would utilise this
authority to provide flexibility when merited and would not use
it as a matter of routine. The Board intends to seek a renewal
of such authority at subsequent annual general meetings.
Resolution 17: Articles of Association
(special resolution)
The Board is this year asking for shareholder approval to
adopt new articles of association (“New Articles”) to take
account of changes to law and best practice, improve the
Company’s corporate governance and include additional
protections for shareholders. A summary of the main changes
proposed to the existing articles of association (“Existing
Articles”) is set out below.
Appointment and retirement of Directors and Board
continuity
New provisions address the unlikely scenario where, following
a general meeting at which resolutions are proposed for the
election, re-election and/or removal of Directors, the Company
is left with no Directors, or fewer than the minimum number of
Directors required by law or the New Articles. In such
circumstances, the proposed amendments provide for the
automatic and temporary appointment or re-appointment of
the incumbent Directors. The Board will then be required to
convene a further general meeting as soon as reasonably
practicable for the purpose of appointing or re-appointing
persons as Directors so that the number of Directors is not
less than the minimum number of Directors required by law
orthe New Articles.
These arrangements are intended to ensure the Company
cancontinue to operate and comply with its legal obligations
at all times, in line with AIC guidance. The provisions are not
designed to entrench Directors who have not secured
sufficient shareholder support at a general meeting. The
amendments are designed to ensure that shareholder
decisions regarding the composition of the Board are
respected, while also safeguarding the orderly management
and legal standing of the Company.
In addition, the provisions of the Existing Articles requiring the
Directors to retire by rotation are proposed to be removed as
all Directors stand for re-election annually, in accordance with
the AIC Code. The New Articles reflect this and require all
Directors to retire and, if desired, seek re-election at each
annual general meeting.
Remuneration of Directors
The Existing Articles do not currently provide for Directors to
be paid additional remuneration where they perform any
duties or services outside their ordinary duties as a director.
There is no current intention to make any such payments and,
in any event, shareholders would need to approve
amendments to the remuneration policy in future to enable
any such additional payments to be made. The Board
considers it would be prudent, however, to include such a
provision in the New Articles which is a common provision in
articles of other investment trusts and may be a consideration
for any future appointees to the Board.
Strengthened conflict of interest provisions
A new article has been added which provides that where
aproposed investment manager has a significant existing
interest in the Company, or is associated with a shareholder
who has a significant interest in the Company, shareholders
are provided with appropriate information and any decision
regarding that appointment is determined by a vote of
shareholders who are independent ofthe relevant conflict of
interest. This amendment does not restrict the Board’s right to
appoint or replace an investment manager. Rather, it is
intended to ensure that decisions affecting the Company’s
management arrangements are taken transparently and in the
interests of shareholders as a whole.
The City of London Investment Trust plc Annual Report 2026
103
Notice of Annual General Meeting (continued)
In addition, the provisions relating to Directors’ conflicts of
interest have been updated and strengthened to make clearer
the situations in which Directors may not count in the quorum
or vote on resolutions by the Board relating to transactions or
arrangements in respect of which they (or their connected
persons) may have a conflict of interest.
The Directors believe that these measures are consistent with
good corporate governance, enhance the integrity of
shareholder decision-making and are in the best interests of
shareholders as a whole.
Untraced shareholders
The New Articles modernise the process for selling shares
belonging to shareholders who remain untraced for a
prolonged period. Under the New Articles, the Company will
be required to make reasonable tracing enquiries and to send
a notice to the registered address of the shareholder before
itmay sell the shares of the untraced shareholder. However,
the New Articles no longer oblige the Company to publish
advertisements in national and local newspapers.
The New Articles also no longer require the Company to
obtain the best price reasonably obtainable; instead, they
allow the Directors to sell the shares at such time and price
and on such terms as the Directors may determine.
There is no change to the provisions which require that the
Company must account to a member or former member
whose shares have been sold.
These changes seek to reflect current market practice and
safeguard shareholder rights while not placing unduly onerous
administrative obligations on the Company.
General modernisation
The New Articles also include changes in line with modern
practice and to reflect current statutory and regulatory rules,
including, for example, to remove references to the issue of
share warrants, to remove reference to the register of
directors and to remove references to special business of a
general meeting. The New Articles also contain other non-
substantive tidy-up and clarificatory amendments.
Notes to the Notice of Annual General
Meeting
1. Voting record date
Only members registered in the Registers of Members of the
Company at close of business on Tuesday, 27 October 2026
(the “voting record date”) shall be entitled to attend, speak
and vote at the AGM in respect of the number of voting rights
registered in their name at that time. Changes to entries on
the Registers of Members after the voting record date shall be
disregarded in determining the rights of any person to attend
and vote at the Meeting.
If the AGM is adjourned for no more than 48 hours after the
original time, the same voting record date will also apply for
the purpose of determining the entitlement of members to
attend, speak and vote (and for the purpose of determining
the number of votes they may cast) at the adjourned meeting.
If the AGM is adjourned for more than 48 hours, then the
voting record date will be close of business on the day which
is two days (excluding non-working days) before the day of the
adjourned meeting or, if the Company gives notice of the
adjourned meeting, at any time specified in that notice.
In the case of joint holders of a voting right, the vote of the
senior who tenders a vote, whether in person or by proxy,
shall be accepted to the exclusion of the votes of the other
joint holders and, for this purpose, seniority shall be
determined by the order in which the names stand in the
Register of Members in respect of the joint holding.
2. Right to attend and vote
Holders of ordinary shares, First Preference and Preferred
Ordinary Stock are entitled to attend, speak and vote at the
AGM. On a vote on a show of hands, each shareholder and
stockholder or their proxy has one vote. On a poll, holders of:
(a) ordinary shares have one vote for every 15 shares; (b) First
Preference Stock have one vote for every £10 of stock held;
and (c) Preferred Ordinary Stock have one vote for every
£20of stock held.
The Board has reviewed the voting process. A poll will
enablethe votes of all shareholders to be counted, whether
ornot they attend the AGM in person. Accordingly, voting
onthe Resolutions will be by way of a poll rather than a show
of hands.
3. Holders of Second Preference Stock
This notice is sent for information only to holders of the
Second Preference Stock who are not entitled to attend,
speak or vote at the Meeting.
The City of London Investment Trust plc Annual Report 2026
104
Notice of Annual General Meeting (continued)
4. Right to appoint proxies
A member entitled to attend, speak and vote at the Meeting
may appoint one or more proxies to exercise all or any of their
rights to attend, speak and vote on their behalf. A proxy need
not be a member of the Company. A member may appoint
more than one proxy provided that each proxy is appointed to
exercise the rights attached to a different share or shares held
by that member.
A Form of Proxy is enclosed. The return of the Form of Proxy
or a CREST proxy instruction will not preclude a member from
attending and voting in person at the Meeting.
If the total number of voting rights that the Chairman will be
able to vote (taking into account any proxy appointments from
shareholders over which he is given discretion and any voting
rights in respect of his own shares) is such that he will have a
notifiable obligation under the Disclosure Guidance and
Transparency Rules (“DTRs”) of the FCA, theChairman will
make the necessary notifications to the Company and to the
FCA. Therefore, any member holding 3% or more of the voting
rights in the Company who grants the Chairman a
discretionary proxy in respect of some or all of those voting
rights and so would otherwise have a notification obligation
under the DTRs, need not make a separate notification to the
Company and to the FCA. However, any member holding 3%
or more of the voting rights in the Company who appoints a
person other than the Chairman as proxy will need to ensure
that both the member and the proxy comply with their
respective disclosure obligations under the DTRs.
The rights of members relating to the appointment of proxies
do not apply to nominated persons. Persons nominated to
receive information rights under Section 146 of the Act have
been sent this Notice and are hereby informed, in accordance
with Section 149(2) of the Act, that they may have the right
under an agreement with the registered member by whom
they are nominated to be appointed, or to have someone else
appointed, as a proxy for this Meeting. If they do not wish to
exercise their right or do not have such right, they may have a
right under such an agreement to give instructions to the
member as to the exercise of voting rights. Nominated
persons should contact the registered member by whom they
were nominated (not the Company) in respect of their
arrangements.
If you are an institutional investor you may also be able to
appoint a proxy electronically via the Proxymity platform, a
process which has been agreed by the Company and
approved by the Registrar. For further information regarding
Proxymity, please go to www.proxymity.io. Your proxy must
be lodged by 1.00pm on Tuesday, 27 October 2026 to be
considered valid. Before you can appoint a proxy via this
process you will need to have agreed to Proxymity’s
associated terms and conditions. It is important that you read
these carefully as you will be bound by them and they will
govern the electronic appointment of your proxy.
5. Proxies’ right to vote at the Meeting
All or any of the voting rights of the member may be exercised
by one or more duly appointed proxies. However, where a
member appoints more than one proxy, Section 285(4) of the
Act does not permit the exercise by the proxies taken together
of more extensive voting rights than could be exercised by the
member in person.
6. Voting by corporate representatives
Corporate representatives are entitled to attend, speak and
vote on behalf of the corporate member in accordance with
Section 323 of the Act provided they do not do so in relation
to the same shares.
7. Receipt and termination of proxies
To be valid the enclosed Form of Proxy must be received by
the Company’s Registrar (Computershare Investor Services
PLC, The Pavilions, Bridgwater Road, Bristol BS99 6ZY)
before 1.00pm on Tuesday, 27 October 2026 (or, in the case
of an adjournment, no later than 48 hours before the time
fixed for the holding of the adjourned meeting).
As an alternative to completing and returning the printed Form
of Proxy, you may submit your proxy electronically by accessing
www.investorcentre.co.uk/eproxy. For security purposes,
you will be asked to enter the control number, your
shareholder reference number (“SRN”) and personal
identification number (“PIN”) to validate the submission of your
proxy online. The control number and members’ individual SRN
and PIN numbers are shown on the Form of Proxy. To be valid,
electronic proxies must be received no later than 1.00pm on
Tuesday, 27 October 2026 (or, in the case of an adjournment, no
later than 48 hours before the time fixed for the holding of the
adjourned meeting).
A member may terminate a proxy’s authority at any time
before the commencement of the Meeting. Termination must
be provided in writing and submitted to the Company’s
Registrar.
In accordance with the Company’s Articles of Association, in
determining the deadline for receipt of proxies, no account
shall be taken of any part of a day that is not a working day.
8. Submitting proxies through CREST
To appoint one or more proxies or to give an instruction to a
proxy (whether previously appointed or otherwise) via the
CREST system, CREST messages must be received by the
Company’s agent (ID number 3RA50) no later than the
deadline specified in Note 7. For this purpose, the time of
receipt will be taken to be the time (as determined by the
timestamp generated by the CREST system) from which the
issuer’s agent is able to retrieve the message. The Company
may treat as invalid a proxy appointment sent by CREST in
the circumstances set out in Regulation 35(5)(a) of the
Uncertificated Securities Regulations 2001.
Instructions on how to vote through CREST can be found on
the website www.euroclear.com.
The City of London Investment Trust plc Annual Report 2026
105
Notice of Annual General Meeting (continued)
9. Communication with the Company
Members may not use any electronic address provided either
in the Notice or any related documents (including the Form of
Proxy) to communicate with the Company for any purpose
other than those expressly stated.
10. Questions at the Meeting
Any member attending the Meeting has the right to ask
questions. Section 319A of the Act requires the Directors to
answer any question raised at the AGM which relates to the
business of the Meeting, although no answer need be given:
(a) if to do so would interfere unduly with the proceedings of the
Meeting or involve disclosure of confidential information; or
(b) if the answer has already been given on the Company’s
website; or
(c) if it is undesirable in the best interests of the Company or the
good order of the Meeting that the question be answered.
11. Website
Members satisfying the thresholds in Section 527 of the Act
can require the Company to publish a statement on its
website setting out any matter relating to (a) the audit of the
Company’s financial statements (including the Auditors’ report
and the conduct of the audit) that are to be laid before the
Meeting; or (b) any circumstances connected with an auditor
of the Company ceasing to hold office since the last AGM,
that the members propose to raise at the Meeting. The
Company cannot require the members requesting the
publication to pay its expenses.
Any statement placed on the website must also be sent to the
Company’s Auditors no later than the time it makes its
statement available on the website. The business which may
be dealt with at the Meeting includes any statement that the
Company has been required to publish on its website.
By attending the Meeting, members and their proxies and
representatives are understood by the Company to have
agreed to receive any communications relating to the
Company’s shares made at the Meeting.
A copy of this Notice, including the information required by
Section 311A of the Act, is available from the Company’s
website, www.cityinvestmenttrust.com.
12. Documents available for inspection
Copies of the Directors’ letters of appointment and the
proposed amended Articles of Association, marked to show
the proposed changes, will be available for inspection at the
registered office of the Company during normal business
hours on any weekday (public holidays excepted) and will
beavailable at the AGM from 15 minutes prior to the
commencement of the Meeting until its conclusion.
Theproposed amended Articles of Association will also
beavailable to view via the National Storage Mechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism).
No Director has a contract of service with the Company.
13. Total voting rights
As at 11 September 2026 (being the last practicable date prior
to the publication of this Notice) the Company’s total voting
rights were:
(a) 515,842,106 ordinary shares (excluding shares held in
treasury), representing 34,389,473 votes;
(b) £301,982 of First Preference Stock, representing 30,198
votes;
(c) £589,672 of Preferred Ordinary Stock, representing 29,484
votes.
Therefore, the total number of voting rights in the Company as
at 11 September 2026 was 34,449,155. There are no ordinary
shares held in treasury.
The City of London Investment Trust plc Annual Report 2026
106
The City of London Investment Trust plc Annual Report 2021
Strategic Report
Performance 2-5
The City of London Story 6-7
Chairman’s Statement 8-11
Portfolio Snapshot 12-13
Fund Managers’ Report 14-19
Portfolio Information 20-21
Business Review 22-37
Governance
Directors and Fund Managers 39-40
Directors’ Report 41-43
Corporate Governance Report 44-50
Audit and Risk Committee Report 51-54
Nominations Committee Report 55-56
Directors’ Remuneration Report 57-60
Statement of Directors’ Responsibilities 61
Independent Auditor’s Report 62-68
Financial Statements
Income Statement 70
Statement of Changes in Equity 71
Statement of Financial Position 72
Notes to the Financial Statements 73-88
Additional Information
Securities Financing Transactions 90-92
Alternative Performance Measures 93-94
Glossary 95
General Shareholder Information 96
Financial Calendar 97
Notice of AGM
Notice of Annual General Meeting 98-106
Corporate Information 107
For the methodology behind AIC Dividend Hero and AIC ISA Millionaire, see the AIC website at www.theaic.co.uk
Corporate Information
Registered Office
201 Bishopsgate
London EC2M 3AE
Service Providers
Alternative Investment Fund Manager
Janus Henderson Fund Management UK Limited
201 Bishopsgate
London EC2M 3AE
Corporate Secretary
Janus Henderson Secretarial Services UK Limited
201 Bishopsgate
London EC2M 3AE
Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
Depositary and Custodian
HSBC Bank plc
8 Canada Square
London E14 5HQ
Stockbroker
Cavendish Capital Markets Limited
1 Bartholomew Close
London EC1A 7BL
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol BS99 6ZZ
Telephone: 0370 889 3296
Email: WebCorres@computershare.co.uk
Investors with share certificates (i.e. not those with
ashareplan or ISA) can check their holding at
www.investorcentre.co.uk
Independent Auditor
Ernst & Young LLP
25 Churchill Place
London E14 5EY
Information Sources
For more information about The City of London Investment
Trustplc, visit the website at www.cityinvestmenttrust.com
This includes factsheets, interviews, current information on
the Company and up-to-date share price and net asset
valuedetails.
To sign up for expert insights about investment trusts,
updates from our fund managers as well as AGMs and
TrustTV episodes, please visit this page:
www.janushenderson.com/en-gb/investor/subscriptions
Follow the Janus Henderson Investment
Trusts on LinkedIn –
Janus Henderson Investment Trusts, UK
Investing
Shares can be purchased in the market via a stockbroker
orthrough share dealing platforms. They can also be held
through share plans, ISAs or pensions and links to various
providers are included on the website.
Potential investors are reminded that the value of investments
and the income from them may go down as well as up and
investors maynot get back the full amount invested. Tax
benefits may varyas a result of statutory changes and their
value will depend onindividual circumstances.
107
The City of London Investment Trust plc Annual Report 2026The City of London Investment Trust plc Annual Report 2021
The City of
London
Investment
Trust plc
Annual Report 2026
JHI9224/2026The City of London Investment Trust plc – Annual Report 2026
The City of London Investment Trust plc
Registered as an investment company in England and Wales
Registration Number: 34871
Registered Office: 201 Bishopsgate, London EC2M 3AE
ISIN number/SEDOL: Ordinary Shares: GB0001990497/0199049
London Stock Exchange (TIDM) Code: CTY
Global Intermediary Identification Number (GIIN): S55HF7.99999.SL.826
Legal Entity Identifier (LEI): 213800F3NOTF47H6AO55
Telephone: 020 7818 1818
Email: itsecretariat@janushenderson.com
www.cityinvestmenttrust.com
JHI9224/2026Designed and typeset by 2112 Communications, London. Printed by Paragon.
This report is printed on Revive 100 Silk manufactured from FSC
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