F&C Investment Trust Reports Underperformance Yet Increases Dividend

Despite facing a challenging year in terms of total returns, F&C Investment Trust remains hopeful about future prospects. The London-based firm announced an underperformance over the past year compared to its benchmark. Its total returns did not match the positive movement illustrated by the FTSE All-World Index, which experienced a 15.1% return in contrast to F&C's 11.3%. This outcome marks a reversal from 2022 when F&C showcased the strongest shareholder return in its peer group.

Nevertheless, F&C Investment Trust displayed resilience by raising its per-share final dividend to 4.5p, up from 3.9p the year before. This increase contributes to a total dividend for 2023 that is 8.9% higher at 14.7p per share, compared to 13.5p in the previous year. Remarkably, this represents the fifty-third consecutive year of dividend growth for the trust.

At the close of the year, F&C's net asset value (NAV) per share stood at 987.56 pence, showing a climb from 896.94p. However, the company's performance was affected by various factors including its lower exposure to larger stocks and a loss in value of its private equity holdings. Furthermore, a 6.0% appreciation of the pound against the dollar had a negative impact since the majority of F&C's portfolio is invested in overseas assets.

Fund Manager Paul Niven expresses a longer-term optimism for the trust's holdings, despite the current uncertainties in economic growth, interest rates, political changes, and conflicts. F&C focuses on maintaining confidence in the value and potential of its broad international investments.

F&C, Investment, Dividend