F&C Investment Trust

Global Growth

Rated Fund 2015-20. Perfect for investors with smaller portfolios    

Describing itself as cautiously managed, F&C – the UK’s oldest investment trust, established in 1868 – aims to appeal to those looking for their first investment or a core portfolio holding. Highly commended in the Best Global Growth category of Money Observer’s 2017 investment trust awards, it is a £4.3 billion trust with low annual running costs (0.65%) and a very well-diversified portfolio, holding more than 450 companies in 35 countries. “F&C provides excellent international diversified exposure for the smaller investor,” says IpsoFacto Investor director David Liddell.

Its recent performance has been impacted by its shares moving to a 6% discount from around par. That has since narrowed and could widen in volatile markets, Liddell says, but this should be mitigated by the board’s policy to repurchase shares if the discount widens meaningfully.

Paul Niven has been its manager since 2014, when BMO Asset Management bought the F&C funds business. Niven decides the asset allocation and level of gearing. He divides the portfolio into a range of global and regional strategies. Some of these, notably US equities and private equity, are subcontracted to external managers. Niven can have 20% in private equity (6.7% in June 2019) and, including this, the portfolio had 55% of assets in North America, 16% in Europe, 11% in emerging markets, 9% in Japan, 7% in the UK and 2% in the Asia Pacific at the end of 2019.

Besides its long-term growth objective, it has a 49-year history of annual dividend increases. It yields 1.5% and pays dividends quarterly.

Narrative and ratings content all as of January 2020.

See all Money Observer rated funds
Name
F&C Investment Trust
Manager
BMO Investment Business Ltd
Type
Closed Ended Investment Company
ISIN
GB0003466074
Sector
Global
Launched
19/03/1868
OCF
0.54 %
Risk Rating
4
3 Year Sharpe
0.39
3 Year Alpha
-1.45
Yield
1.6 %
Benchmark
FTSE All World TR GBP
Fund Size
£ 3.68 billion
NAV
731
Gearing
110
Discount Premium
-6
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 invest mainly in readily realisable, publicly listed securities and that the level of borrowings.
Holding %
Amazon.com Inc 3.15 %
Pe Investment Holdings 2018 Lp Pe Invest 2.97 %
Microsoft Corp 2.50 %
Facebook Inc A 1.82 %
Alphabet Inc Class C 1.58 %
Apple Inc 1.43 %
Mastercard Inc A 1.15 %
UnitedHealth Group Inc 1.07 %
Visa Inc Class A 1.02 %
Alibaba Group Holding Ltd ADR 1.01 %
Region %
United States 57.24 %
Eurozone 9.88 %
Asia - Emerging 7.71 %
Japan 7.21 %
United Kingdom 7.14 %
Sector %
Technology 18.29 %
Healthcare 16.33 %
Financial Services 15.95 %
Consumer Cyclical 13.61 %
Communication Services 10.52 %
Industrials 8.41 %
Consumer Defensive 7.42 %
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.

Data provided by Morningstar.

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