The City of London Investment Fund celebrates a remarkable achievement as the first fund to increase its annual dividends for sixty consecutive years. Managed by Job Curtis, who has been at the helm for 35 years, the fund has consistently stood firm against market fluctuations since the privatizations of the early 1990s.
Conservative Investment Strategy
Job Curtis has achieved an unprecedented record in dividend increases by investing in UK-listed companies and avoiding investments in the field of artificial intelligence. He states, "I really do not invest in artificial intelligence. This technology is suitable for those who want to operate in this area; however, we are looking for companies that benefit from increased productivity and cost savings, such as banks."
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Dividend Record and Its Impact on Investors
The increase in dividends for this fund began in 1966, the year England won the World Cup and the Beatles released the album "Revolver." Interestingly, if Paul McCartney had invested £1000 of his earnings at that time, today that investment would have grown to £1.3 million. In contrast, if the same amount had been invested in the UK stock market, it would have only increased to £700,000.
Investors who have opted to receive their dividends rather than reinvest them have earned nearly £56,000 over six decades, while this amount would have been only £3900 in bank savings accounts.
Last year, the total return on the fund's shares was 24.5%, and over the past five years, it was 92%. Curtis has invested over 90% of his portfolio in British stocks, which have received less attention due to international investors' preference for riskier American stocks.
He also noted that "banks currently rank among our top ten shares, and I believe this is a good period for them." Curtis believes in diversification in investments, stating, "Our largest area is taxation, and we also invest in life insurance, consumer goods, and even shares of tobacco and oil companies."
The City of London Fund has continued to increase its dividends despite economic challenges, including the inflation shocks of the 1970s, the market crash of 1987, and the global financial crisis of 2008. Curtis states, "Continuous dividend increases signify financial discipline and reduce the risk of weakening the fund." He also pointed out that in 2020, during the COVID outbreak, many companies reduced their dividends, but the City of London Fund was an exception.
Curtis has recently purchased shares in data analytics companies such as RELX and credit rating agency Experian, believing that concerns about these companies are exaggerated. He assures investors that despite the existing challenges, he has no plans for retirement and will continue to manage this fund.
The chair of the fund's board, Laurie Magnus, also emphasized the importance of this achievement and expressed gratitude for Curtis's efforts and his management team. He said, "This increase in dividends demonstrates the unique leadership of the City of London in providing the longest record of annual dividend increases in the investment fund sector."
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