19th Mar 2018 09:42
London, UK, 19 March 2018
Edison issues review on Foreign & Colonial Investment Trust (FRCL)
Foreign & Colonial Investment Trust (FRCL) is the oldest investment trust and is celebrating its 150th anniversary. Dividends have been paid every year since the fund was launched and 2017 marked the 47th consecutive annual increase. The board has proposed a subtle change in the name of the trust to F&C Investment Trust and this will be voted on at the April 2018 AGM. FRCL offers investors a diversified 'one-stop-shop' for investment in both listed and unlisted global equities. The trust had a strong set of results in FY17, with most of its underlying strategies outperforming their respective benchmarks. In terms of NAV and share price total return, FRCL is outperforming its benchmark over one, three and five years (its share price is also outperforming over 10 years).
FRCL's share price discount to cum-income NAV has been in a narrowing trend since mid-2016, from c 14% to the current level of 3.3%. This compares with the average discounts of the last one, three, five and 10 years (range of 5.9% to 9.2%). The board has announced that it will no longer target a discount below 7.5%, but will continue to repurchase shares, in normal market conditions, if the discount widens significantly. Shares may be issued if FRCL trades at a consistent premium. The trust has a distinguished dividend history: annual distributions have increased over the last 47 consecutive years and its current dividend yield is 1.6%.
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Related Shares:
F&C Investment Trust