F & C Investments

F&C Capital and Income Investment Trust plc

  • An established generator of growth and income

  • How to Invest

    Open an F&C Savings Plan

    Call: 0800 136 420

    Invest online now

    The value of your investments can go down as well as up, and you may not get back what you originally invested.

  • Key Facts

    The manager looks to generate long-term capital and income growth from a portfolio consisting mainly of FTSE All-Share companies. The portfolio is biased heavily towards companies that are capable of paying a reliable and growing income to shareholders. Given this emphasis the fund manager focuses on attractively valued, well-established companies characterised by strong balance sheets and robust cash flow. We aim to grow the dividend consistently over time, dividends are paid at the end of each calendar quarter.

    Highlights

    • Dividends increased annually since launch in 1992, paid quarterly and grown significantly faster than inflation
    • Diversified portfolio focusing on well-established UK companies
    • Targets long-term capital and income growth.
  • Fund facts
    Investment manager F&C Management Limited
    Benchmark FTSE All-Share Index
    AIC sector UK Growth and Income
    Launch date 1992
    Total assets £335.9 million (as at 31.05.2017)
    Currency Sterling
    ISIN GB0003463287
    SEDOL 346328
    Key dates
    Annual general meeting February
    Year end 30 September
    Dividends paid March, June, September, December (Quarterly)
    Results announced May (half yearly)
    November (final)
  • Fund manager commentary

    The strength of the equity market in May led the FTSE 100 to start June close to its all-time high, but momentum was not maintained and the market retreated. During June, the FTSE All-Share recorded a negative total return of -2.5%.

    The main event in the UK was the general election. This, of course, did not produce the result the Conservative Party would have liked. The inevitable conclusion is the government’s position is weaker than it was previously, weaker than it would have liked and Brexit negotiations will be even more challenging. Clearly, this will have been a part of the cause of the loss of momentum in the equity market.

    Separately, government bond yields have been increasing and this will also have been unhelpful for the equity market. This move in yields was not just a UK specific phenomenon, but also obvious in many international markets. During June, the yield on 10 year government bonds in the UK increased from around 1.0% to around 1.25% while in Germany, yields almost doubled from about 0.25% to just under 0.5%. Part of the attraction of equities is the additional yield shares give investors over and above that to be gained from bonds, so as the yield on bonds increases, so at the margin, equities face a little more of a headwind.

    The British Retail Consortium figures reported during the month showed UK retail sales to be generally weaker and this was confirmed by profit warnings from AO World and DFS. The inflation report showed Consumer Price Inflation had increased to 2.9%, the highest level since June 2013. With productivity and income growth at meagre levels, disposable income is under some pressure leading to yet further pressure on retailers.

    As at 30 June 2017

  • Julian Cane

    Julian Cane

    Fund manager

Past performance is not a guide to future results. The value of investments can go down as well as up.

The shares of the Company are listed on the London Stock Exchange. Information in this section of the website concerning the Company is directed solely at persons who are located in the UK. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Potential investors must read our full terms and conditions before proceeding further with any investment product referred to on this website. The information on this website may not be suitable for everyone, and retail investors unsure whether an investment product referenced on this website will meet their individual needs should seek advice before proceeding further with such product.

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