F&C Investment Trust (FCIT) aims to offer a ‘one-stop shop’ for investors looking for diversified equity exposure to both listed and unlisted markets. Over the last 10 years, the trust has delivered annual NAV and share price total returns of 13.6% and 14.4% respectively from a range of both internally and third-party managed strategies. While there has been a prolonged equity bull market for more than a decade since the end of the global financial crisis, FCIT’s manager Paul Niven believes the current environment of easy monetary policy and economic growth is supportive of further share price upside. The trust’s annual dividend has increased for the last 48 consecutive years (current yield of 1.6%).
Stock market volatility has increased so far in 2019, as market participants grapple with macro issues such as changing monetary policy, slowing economic growth and the potential for a no-deal Brexit. However, over the long term investors have enjoyed higher total returns from equities versus other asset classes such as bonds or cash.
Broad global equity exposure, both listed and private companies.
Distribution paid every year since FCIT’s launch in 1868.
Dividend growth in each of the last 48 consecutive years.
Long-term record of double-digit NAV and share price total returns.
Oldest investment trust, established over 150 years ago
FCIT’s shareholders have enjoyed 48 consecutive years of higher dividend payments and the board has committed to another increase (above the rate of UK inflation) for FY19; the trust currently offers a 1.6% dividend yield. FCIT’s board actively manages the discount, by both issuing shares when they regularly trade at a premium and repurchasing them when regularly trading at a discount. Its current 3.7% discount to cum-income NAV compares with the 1.0% to 8.2% range of average discounts over the last one, three, five and 10 years.