Fund Profile

Disclaimer

This is a non-independent marketing communication commissioned by BMO Global Asset Management. The report has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is not subject to any prohibition on the dealing ahead of the dissemination of investment research.

Overview
FCIT’s broad-based approach to global equity investing has let it capitalise on current markets, being one of the sector’s best performers recently…
Overview

F&C Investment Trust (FCIT) offers investors a highly diversified, multi-manager approach to global equity investing. FCIT’s manager, Paul Niven, leverages both BMO’s own internal strategies as well as what he believes are best-in-class external managers, including a significant allocation to private equity. Paul’s role is not merely to select delegated managers, but also to modify overall exposures in accordance with his own views. Over the last 12 months Paul has made a number of changes to FCIT, cutting exposure to growth styles and emerging markets in favour of more value-oriented strategies. This is a reflection of his view that stock-picking will increasingly be rewarded, but also reflects the potential reversal of the historical outperformance of growth stocks over value. We cover FCIT’s portfolio, and the economic events which are shaping Paul’s view, in more detail in our Portfolio section.

FCIT’s Performance has been strong over the last 12 months, generating an NAV total return of 20.8% and beating both its benchmark and peers, thus resulting in FCIT being the third best-performing trust within the AIC Global peer group. Paul comments that FCIT’s performance reflects a market environment that is more suitable for a broad-based approach to equity investing, rather than being led by the narrow group of growth stocks which have supported FCIT’s more concentrated peers.

FCIT’s most recent Dividend marks its 50th straight year of consecutive dividend increases – one of the longest records of any investment trust – and the board remains committed to its future growth. FCIT continues to trade on a Discount (which is currently 7.5%), a situation that has persisted since the COVID-19 crash in 2020.

Analyst's View

In our view, FCIT offers an attractive choice for investors looking for a ‘core’ equity product: that is to say, a strategy which can form the majority of a portfolio or offset more stylistically biased or concentrated strategies. Supporting our view is FCIT’s global remit, which captures all major regional economies and styles, as well as its attractive long-term historical return profile. In particular, we highlight FCIT’s consistent beta, meaning it has historically provided a good proxy for the risks and returns of global equities. Yet most importantly, FCIT preserves the attractions of active management, with the benefits of Paul’s active stewardship increasingly becoming apparent over the last 12 months given FCIT’s strong performance.

The future may continue to look bright for FCIT as the current market environment remains suited to stock-picking, rather than being driven by growth-stock momentum as it was previously. So long as global economies remain broadly positive, producing both strong earnings and inflationary pressures, then the environment will likely continue to be supportive. We believe FCIT may be particularly well placed to capitalise on this, thanks to Paul’s inclusion of top-down analysis and his willingness to actively position the portfolio around this. FCIT’s current discount remains an attractive entry point.

bull bear
Top-quintile performance over the last 12 months, combined with good long-term performance versus benchmark
Can underperform when markets are driven by a single style of investment
A well-diversified portfolio that also combines attractive private equity strategies
Gearing can enhance losses on the downside
One of the longest track records of dividend increases of any investment trust
Does not offer the same diversification potential to other global strategies as a concentrated equity strategy does
Continue to Portfolio

Fund History

20 May 2022 Is it time to ditch index funds?
Averaging out makes sense in a boom market but may be much riskier in the future…
30 Mar 2022 You say tomato…
Do it yourself or put it into a global fund and leave it to the experts - our analyst debate the merits of each approach...
02 Mar 2022 Spread 'em!
We explore how much dispersion in returns of stocks drive the differing fortunes of trusts…
13 Dec 2021 Fund Analysis
FCIT’s broad-based approach to global equity investing has let it capitalise on current markets, being one of the sector’s best performers recently…
03 Nov 2021 Don't fear the reaper
With market direction hard to call, we consider the case for taking a long-term view in the investment trust sector…
19 Aug 2021 Pandemic immunity
We ask which global equity trusts have outperformed through the different stages of the pandemic…
04 Aug 2021 60/40 and other dinosaurs
A simple practical step to take your portfolio from the 1990s into the 2020s...
10 Jun 2021 Green is good!
2021 will see billions dedicated to sustainable initiatives, which brings with it a host of possible investment opportunities...
21 May 2021 Fund Analysis
FCIT is celebrating its 50th year of consecutive dividend growth…
12 Mar 2021 Results analysis: F&C Investment Trust
We examine the full year results released by the board of FCIT, assessing what has driven the trust’s performance and how it continues to offer a unique proposition in the global equity space…
19 Nov 2020 Fund Analysis
FCIT offers a well-diversified global multi-strategy portfolio at an attractive discount…
23 Oct 2019 Fund Analysis
One of the world’s oldest investment trusts, F&C Investment Trust is on course for its 49th year of consecutive dividend increases...
13 Dec 2018 Fund Analysis
The world’s oldest investment trust is on course for its 48th consecutive year of dividend increases having paid a dividend every year since launch...
View all

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