F&C Investment Trust

Global Growth

Rated Fund 2015-19. Perfect for investors with smaller portfolios

Foreign & Colonial – the UK’s oldest investment trust, established in 1868 – abbreviated its name to F&C in 2018. ­The £4 billion trust was highly commended in the Best Global Growth category of Money Observer’s 2017 investment trust awards. Its annual running costs are relatively low, at 0.79%, and it is very well-diversified, as it holds more than 500 companies in 35 countries.

­The trust describes itself as conservatively managed and aims to be “at the centre of an investor’s portfolio”. David Liddell, a director at IpsoFacto Investor, an online investment advisory service, says: “Foreign & Colonial continues to do what it says on the tin and provides excellent internationally diversified exposure for the smaller investor.”

He points to the risk of the discount to net asset value – having narrowed from 4.5% at the start of last year to trade around par – widening out again in volatile markets. However, the board’s policy is to repurchase shares if the discount widens meaningfully in normal market conditions.

Paul Niven, who has run the trust since 2014, decides the asset allocation and level of gearing. He divides the portfolio into a range of global and regional strategy groupings. Some of these, notably US equities and private equity, are subcontracted to external managers, however.

Niven can have up to 20% in private equity (6.7% in June 2018) and, including this, the portfolio had 53% of assets in North America, 17% in Europe, 11% in emerging markets, 9.5% in Japan and less than 6% in the UK at the end of 2018. ­

The trust has a long-term growth objective and a 48-year history of annual dividend increases, paid quarterly. It yields 1.7%.

Narrative and ratings content all as of 01 January 2019.

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Name
F&C Investment Trust
Manager
BMO Investment Business Ltd
Type
Closed Ended Investment Company
ISIN
GB0003466074
Sector
Global
Launched
19/03/1868
OCF
0.52 %
Risk Rating
3
3 Year Sharpe
1.60
3 Year Alpha
4.39
Yield
1.6 %
Benchmark
FTSE All World TR GBP
Fund Size
£ 3.68 billion
NAV
663
Gearing
108
Discount Premium
1
To secure long-term growth in capital and income from an international diversified portfolio of listed equities, as well as unlisted securities and private equity with gearing. Company is restricted to invested mainly in readily realisable, publicly listed securities and that the level of borrowings.
Holding %
Amazon.com Inc 1.99 %
Microsoft Corp 1.60 %
UnitedHealth Group Inc 1.24 %
Anthem Inc 1.12 %
Pfizer Inc 0.91 %
JPMorgan Chase & Co 0.81 %
Alphabet Inc Class C 0.81 %
Boeing Co 0.72 %
Novo Nordisk A/S B 0.72 %
Lowe's Companies Inc 0.71 %
Region %
United States 53.46 %
Eurozone 11.00 %
Japan 10.59 %
Asia - Emerging 7.25 %
United Kingdom 7.08 %
Sector %
Financial Services 19.07 %
Consumer Cyclical 15.91 %
Technology 15.69 %
Healthcare 13.28 %
Industrials 11.60 %
Consumer Defensive 8.84 %
Name
BMO Investment Business Ltd
Address
EH2 3BU, Edinburgh, United Kingdom
UCITS
No
Legal Structure
Closed Ended Investment Company

Managers

Paul Niven
Joined 07/01/2014

Paul Niven is Managing Director and Head of Multi-Asset Portfolio Management. He is also Fund Manager for the F&C Investment Trust. Paul joined the firm in 1996 and has worked in Asset Allocation and Investment Strategy since 1999. Paul has had responsibility for the management of Multi-Asset mandates within the group since 2002 and is Chair of the Investment Policy Group. Paul graduated from the University of Strathclyde with a BA (Hons) in Accounting and Economics, obtained an MPhil in Finance, and is a member of the UK CFA Institute.

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