F&C Investment Trust 23 October 2019
Disclosure – Independent Investment Research
This is independent research issued by Kepler Partners LLP. The analyst who has prepared this research is not aware of Kepler Partners LLP having a relationship with the company covered in this research report and/or a conflict of interest which is likely to impair the objectivity of the research and this report should accordingly be viewed as independent.
The objective of the trust is to secure long-term growth in capital and income through a policy of investing primarily in an internationally diversified portfolio of publicly listed equities, as well as unlisted securities and private equity, with the use of gearing.
F&C Investment Trust
BMO Global Asset Management
Association of Investment Companies (AIC) Sector
12 Mo Yield
Dividend Distribution Frequency
Latest Market Capitalisation
Latest Net Gearing (Cum Fair)
Latest Ongoing Charge Ex Perf Fee
(Discount) / Premium (Cum Fair)
Daily Closing Price
One of the world’s oldest investment trusts, F&C Investment Trust (FCIT) is a behemoth of the AIC Global sector, with almost £4bn in AUM.
The company, over 150 years old, utilises a fund of funds approach, employing BMO’s specialist teams and third-party managers to invest in global equities. According to JPM Cazenove, the company has over 500 holdings across a wide range of geographies and sectors. On top of this, the managers hold both listed and unlisted securities, helping offer investors access to companies and sectors they might otherwise struggle to have such access to.
The company is on course for its 49th consecutive year of dividend increases, having paid a dividend every year since launch. Income is not the main focus for the manager, however, and the fund is positioned to deliver long-term growth in capital via an internationally-diversified portfolio. This has been shown since Paul Niven took the helm in 2014, delivering decent NAV total returns. Over the period the company has outperformed both the Global AIC and IA peer groups, although has underperformed the FTSE All-World benchmark.
The discount widened out to double digits after the referendum; since then it has narrowed significantly. It currently stands at 5.3%.