26th Jul 2021 10:52
(Alliance News) - F&C Investment Trust PLC on Monday said it will increase its dividend payout once again as the investor pipped the performance of its benchmark in the first half of 2021.
The FTSE 250-listed trust said net asset value per share was 931.59 pence on June 30, up 11% from 840.69p at the end of 2020.
NAV total return for the first half reached 12%, ahead of the 11% returned by its benchmark, the FTSE All-World Index.
At the half-year point, the investor's share price reached 846.00p for a total return of 8.3%, reflecting a widening of the discount of price to NAV from 5.4% to 8.8% during the period.
F&C Investment Trust shares were trading down 0.1% at 860.00 pence each in London on Monday morning.
The firm declared 2021's first interim dividend at 3.0p per share, due on August 2.
With revenue rising, F&C Investment Trust said it is committed to increasing its dividend payments for 51st consecutive year.
The investor said it does not expect income to cover its full year dividend and plans to draw on its revenue reserves - which contain one year's worth of dividends - to cover any outstanding amount.
For its previous payout, F&C Investment Trust drew down 2.4p per share from its revenue reserve to fund its 12.1p full-year dividend for 2020, up 4.3% from the 11.6p final dividend issued for 2019.
For the coming year, the company said its "flexible and diversified" approach left it was well-positioned to take advantage of economic recovery following the pandemic.
"Growth rates in the global economy and in corporate earnings are likely to exceed many of the most optimistic forecasts in 2021...Growth momentum is broadening globally and, while there remain risks, the backdrop should remain favourable. The recovery in earnings growth will result, with a lag, in an upturn in corporate dividends which should help our revenue account," noted the trust's fund manager, Paul Niven.
"Modest rises in inflation, slightly higher interest rates, but still good rates of growth, present a favourable backdrop for our portfolio," Niven added.
By Scarlett Butler; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
F&C Investment Trust