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.
See all Money Observer rated funds| Holding | % |
|---|---|
| Amazon.com Inc | 1.96 % |
| Microsoft Corp | 1.73 % |
| Pe Investment Holdings 2018 Lp Pe Invest | 1.67 % |
| Anthem Inc | 1.13 % |
| UnitedHealth Group Inc | 1.05 % |
| Boeing Co | 1.04 % |
| Facebook Inc A | 0.96 % |
| Alphabet Inc Class C | 0.93 % |
| Comcast Corp Class A | 0.80 % |
| Pfizer Inc | 0.80 % |
| Region | % |
|---|---|
| United States | 54.20 % |
| Eurozone | 10.96 % |
| Japan | 10.26 % |
| United Kingdom | 7.38 % |
| Asia - Emerging | 6.87 % |
| Sector | % |
|---|---|
| Financial Services | 17.84 % |
| Technology | 17.03 % |
| Consumer Cyclical | 16.01 % |
| Healthcare | 13.04 % |
| Industrials | 11.55 % |
| Consumer Defensive | 8.38 % |
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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