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

    Or contact your usual investment broker

  • 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 £312.8million (as at 28.02.2017)
    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 stock market’s upward momentum recovered somewhat with another strong month for returns. In January, the FTSE All-Share Index had stalled a little with a negative return of -0.3%, but this was quickly swept away by a gain of 3.1% in February.

    During the month, there was the usual flood of results from companies with December financial year-ends. Although there has been a number of high profile profit warnings, most companies produced creditable results and this clearly helped the market to make progress.

    The market was also given a boost by the prospect of corporate merger and acquisition activity, the most notable of these being the unexpected bid from Kraft for Unilever. The Board of Unilever rejected the bid very rapidly, claiming it fundamentally undervalues the worth of the company. Kraft, not wanting to make the bid hostile then walked away. The approach does help to remind investors that although the headline valuation for some companies may not appear cheap in an absolute sense, they can still be attractive in a wider context, relative to other international markets and relative to the cost of borrowing.

    We have very little exposure to the motor insurers, but the reduction in the interest rate used in the Ogden tables is worthy of comment. The interest rate is used to discount the cost of future losses from personal injury and fatal accident cases, so the change in rate by the Lord Chancellor from 2.5% to -0.75% has led to a steep rise in the discounted cost of major motor accidents. This is first, bad news for the motor insurers, and secondly bad news for motorists as premiums will inevitably increase. Whilst throughout the rest of known financial history interest rates have been positive, the imposition of negative rates is a further step through the looking glass. The implication, if extended to consumers, to be paid to borrow money, is extraordinary.

    All this is at a time when the UK economy appears robust with inflation (CPI at 1.8%) at the highest for 2½ years, the fourth consecutive month of increase, and UK unemployment (4.8%) at an 11-year low with average earnings growth of 2.6% year-on-year.

    As at 28 February 2017

  • Share price

    298.00p-2.00p

    24 March 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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