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 £293.6 million (as at 31.08.2016)
    Currency Sterling
    ISIN GB0003463287
    SEDOL 346328
    Key dates
    Annual general meeting Tuesday 9 February 2016, 11.30 am, Exchange house
    Year end 30 September
    Dividend payment date(s) March, June, September, December
    Ex-dividend date(s) February, June, September & December
    Announcement dates Interim results: Monday 23 May 2016
    Annual results: Thursday 24 November 2016
  • Fund manager commentary

    August, of course, is traditionally a relatively quiet month with most companies having already announced their half-year figures, allowing time for either introspection or holiday relaxation. Equity markets, however, had different plans and rather than taking it easy, the FTSE All-Share Index made yet further progress with a total gain of 1.9% for the month. This was the seventh consecutive month of positive returns.

    The trigger for the strength of the equity market was largely due to further monetary policy stimulus from the Monetary Policy Committee as it announced a cut in interest rates from 0.5% to 0.25% and an increase in quantitative easing (QE) of £70bn. Quite how much the cut in rates will stimulate the economy is debatable, probably minimal at best, with the greater impetus to markets coming from the extension of QE to drive the purchase of £60bn gilts over six months and £10bn of corporate bonds over 18 months. In response, gilt yields fell to all-time lows, with 10 year gilt yields at one point trading only very narrowly above 0.5%. Not quite into the territory of negative yields some countries are experiencing, but nonetheless a level that surely makes equity yields look interesting.

    In the UK, there was no revision to the initial estimate for GDP growth in the second quarter of 0.6% quarter on quarter while retail sales in July were firm, increasing by 5.9% year on year. Food retail clearly though remains highly competitive with Asda reporting its worst quarterly sales drop (-7.5%). This is an area to which we have currently have no direct exposure.

    Within the portfolio, a couple of our holdings in the financial sector announced particularly strong results most notably OneSavings Bank and Arrow Global both producing earnings growth of well above 20% for the half year.

    There were no major changes to the portfolio during the month.

    As at 31 August 2016

  • 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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