Complete your registration today for a chance to win £50 John Lewis vouchers in our weekly draw Enter now
Fund Profile


Disclosure – Non-Independent Marketing Communication

This is a non-independent marketing communication commissioned by F&C Investment Trust. 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.

A new version of this profile is available. View Latest

F&C Investment Trust (FCIT) aims to generate both capital and income growth from global equities, investing through delegated managers (both internal managers within BMO and external ones). FCIT is the oldest operating investment trust with over 150 years of history, and is currently run by Paul Niven, who also heads up multi-asset investment within BMO GAM (EMEA).

The strategies within the FCIT Portfolio are divided into regional and global sectors. While many strategies are run in-house, others such as the US equity allocation – the largest allocation – are run by two external managers. When deciding on the weighting each strategy is allocated, Paul uses a combination of top-down work and analysis of the diversification benefit each strategy provides. This diversification of FCIT is key for Paul, as he tries not to produce a portfolio that chases winners, but instead one that has a measured allocation to key global sectors and attractive investment styles.

FCIT is one of The AIC’s 'Dividend Heroes', with 49 years of consistent Dividend growth. The trust currently yields 1.6%, against the AIC Global sector’s 1.1% average. As discussed in the Performance section, despite having a focus on both capital and income Paul has generated an NAV total return of 103.8% since taking over management of FCIT in 2014, edging out its benchmark’s (the FTSE All World Index) 95.3% . While the fund has traded at a discount for most of the last five years, it has mostly tracked the AIC global equity peer group’s discount. After the emergence of COVID-19 FCIT has traded on an increasingly wider discount, detaching from the wider peer group. FCIT currently trades on a 9.5% discount.

Analyst's View

It is our view that FCIT offers investors a genuinely diversified way to access global equities, as unlike many of its peers it combines access to both listed equities and unlisted investments. The trust offers broad equity market exposure, and a 'one stop' asset allocation solution for those who are not interested in structuring a global equity portfolio using separate components.

We believe that Paul has impressively delivered on his objectives of growth in both total return and income since taking over. Strong total returns have been achieved while maintaining the tradition of dividend growth he inherited from past managers. While some AIC Global trusts have outperformed FCIT, this has generally been through them taking big factor or geographical bets. The danger of this less diversified approach is the potential for underperformance when trends change, or of the end investor having to try to time the market, which is notoriously difficult. COVID-19 has led to some wide market divergences, for example between the US and the rest of the world, between growth and value, and between technology and everything else. In our view maintaining balanced exposures to these trends is wise at this point in time, something which is ensured by FCIT’s process.

F&C's discount is wide versus its historical level. While trusts offering diversified global equity exposure may not be particularly in vogue at the moment, we believe this may be a symptom of the strong outperformance of US and tech-focussed funds, and this may change over the course of the cycle as and when that hegemony comes to an end.

bull bear
Increasing use of private equity improves diversification and differentiates offering Higher manager risk given the use of delegated fund managers
Committed and considered approach to long-term income growth May not be able to rotate positioning as quickly as peers in a fast-moving post-COVID market
Trading on a historically wide discount Use of gearing can accelerate losses in falling markets
Continue to Portfolio

Fund History

17 Apr 2024 Pretty, pretty, pretty good
Do investment trusts really protect capital and income against inflation? Let's take a look…
13 Nov 2023 Fund Analysis
FCIT’s discount may provide an attractive entry point…
12 Jul 2023 Many hands make light work
We break down how multi-managers have performed over the past five years and their positioning for the inevitable uncertainty that lies ahead…
12 Jun 2023 Fund Analysis
FCIT’s core global equity characteristics have offered steady growth in a volatile environment…
10 Mar 2023 The first course: week one of our ISA event in review
We look at the first four presentations of our ISA season event…
06 Mar 2023 Value and growth, and why both matter, with F&C's Paul Niven
Paul Niven
Rewatch this webinar from our month-long online series 'A feast of ideas for your ISA' hosted by the team at Kepler Trust Intelligence throughout March…
Watch Recording
26 Oct 2022 Money for nothing
Debt measured at fair value has had a positive impact on NAV returns for a number of investment trusts this year...
27 Sep 2022 Fund Analysis
FCIT has provided consistent performance in an uncertain market environment…
17 Aug 2022 The world for sale
While investment trusts are lagging their open-ended cousins in the global sector, their discounts may provide an attractive entry point...
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

Welcome to Kepler Trust Intelligence

Please enter a valid email address
Please enter a valid password
Please enter a valid email address
Please check your email. If an account exists you'll be sent instructions on how to reset your password.
To ensure that we are able to provide content which is appropriate for you, please tell us a little about yourself.
Please choose an option
Please enter a company name
Please enter a location name
Please choose an option
Please enter a platform
Please choose an option
Please enter a trust
The information contained herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). The investment funds referred to herein have not been registered in the United States under the Investment Company Act of 1940 and units or shares of such funds are not registered in the United States under the Securities Act of 1933.
Please confirm
Please select an option
See benefits
A free Kepler Trust Intelligence account allows you to access premium content including the ‘Kepler View’ – our verdict on the trusts we cover – and historical research so you can see how our view has changed over time. An account also unlocks useful facilities like the ‘follow’ button which lets you keep track of the trusts you’re interested in and as a logged in user you can also download PDFs of our research, and choose the layout of the page you’re reading to suit your preference. We will not share your details unless you give us permission to do so, and we won’t bombard you with emails – we only send one a week.
Please select an option
Please enter your first name
Please enter your last name
Please enter a valid email address
An account already exists with this email - have you forgotten your password?
Please enter a valid password
Please enter a valid password
How will this information be used? Your answers help us to tailor our content to relevant investment trusts, and to ensure that the asset allocation and portfolio strategy research we produce is appropriate to our userbase.
Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies, but parts of our site won’t work without them. By using our website you accept our use of cookies. For further information please refer to the Kepler Privacy Notice.
Need help?

One more thing...

Did you know, you can 'follow' individual trusts on Kepler Trust Intelligence? Use the functions below to set up alerts and we'll send you research and updates on your chosen trusts.

Suggested trusts to follow

Browse all funds
Need help?
Current Site Kepler Trust Intelligence is produced by the investment companies team at Kepler Partners and is the UK’s premier source of detailed qualitative research on investment trusts. Absolute Hedge is a market leading UCITS research database providing proprietary research on funds, themes and strategies in the UCITS space. Kepler Liquid Strategies is a Dublin domiciled UCITS fund platform featuring a number of best-of-breed fund managers. Kepler Partners is a corporate advisory and asset raising boutique specialising in the regulated funds market in Europe and investment trusts in the UK.