4th Sep 2017 15:42
London, UK, 4 September 2017
Edison issues review on Foreign & Colonial Investment Trust (FRCL)
Foreign & Colonial Investment Trust (FRCL) is the world's oldest investment fund, heading towards its 150th birthday. Since 2014, it has been managed by Paul Niven, aiming to generate long-term growth in capital and income from a very broad portfolio of primarily listed global equities, although c 7.5% is invested in private equity. The manager is benchmark aware, but takes active positions versus the index allocations. FRCL has a progressive dividend policy; the board has proposed another annual dividend increase for FY17, which will be the 47th consecutive year. The trust's NAV has outperformed its benchmark over one, three and 10 years, while performing broadly in line over five years.
FRCL's current 5.8% share price discount to cum-income NAV is narrower than the averages of the last one, three, five and 10 years (range of 8.1% to 9.4%). There is scope for the discount to narrow further if the manager continues to build on his positive investment track record. Meanwhile, the board actively manages the discount by repurchasing shares when the discount exceeds 7.5% in normal market conditions. FRCL has a distinguished dividend history; FY17 is on course to become the 47th consecutive year of higher annual dividends.
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Related Shares:
F&C Investment Trust