17th Mar 2025 09:13
(Alliance News) - F&C Investment Trust PLC on Monday increased its dividend, as its net asset value total return outperformed its benchmark in 2024.
London-based F&C Investment Trust, founded in 1868, invests in an international portfolio of listed equities for long-term capital growth and dividend income.
NAV total return was 21.0% in 2024, with debt at market value, just ahead of 19.3% for its benchmark, FTSE All-World Index.
F&C Investment declared a final dividend of 4.8 pence per share. The total dividend for the year was 15.6p, up 6.1% from 14.7p in 2023.
The trust noted that its share price discount to NAV widened in 2024 to 9.2% from 5.9%. NAV increased 19% to 1,219.6p from 1,022.1p, while the share price rose 15% to 1,108p during 2024 from 962p.
"We remain committed towards our objective of achieving a sustainably low deviation between our share price and NAV, as well as reducing the volatility of the discount," the firm said.
F&C Investment Trust said performance was particularly strong in North America and Japan, while being "relatively underweight" compared to the benchmark index on some of the 'Magnificent Seven' technology stocks.
Looking ahead, Chair Beatrice Hollond said the forecast for economic growth remains mixed in 2025, with "little room for disappointment" in equity markets, particularly the US.
Hollond said: "Whilst there is investor enthusiasm for an expansionary policy mix that includes tax cuts and extra fiscal spending from the new US administration, investors continue to be concerned over potential tariffs and the route the new US administration will pursue regarding foreign policy. These could act as headwinds for global growth and investor sentiment in 2025.
"Furthermore, the current dominance of a small cohort of leading companies may face challenges from a number of areas including increased competition or regulatory challenges."
Hollond said there were "many reasons for caution" but said the backdrop for financial markets "does appear positive for the coming years".
"Regardless of potential short-term volatility, we remain resolutely focused on long-term opportunities," Hollond said.
Shares in F&C Investment Trust were down 0.5% to 1,100.00 pence in London on Monday morning.
By Michael Hennessey, Alliance News reporter
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