F & C Investments

F&C UK High Income Trust plc

  • A relatively conservative investment profile

  • 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 Information Document (KID)

    ISIN Trust name Currency English
    GB00B1N4H933 F&C UK High Income Trust PLC - Units GBP KID
    GB00B1N4H594 F&C UK High Income Trust PLC - B Shares GBP KID
    GB00B1N4G299 F&C UK High Income Trust PLC - Ordinary Shares GBP KID

    Key facts

    • F&C UK High Income Trust plc aims to provide shareholders with an attractive level of income together with the opportunity for Trust growth.
    • The Trust invests predominantly in UK equities and equity-related securities of companies across the market capitalisation spectrum.
    • The trust has two classes of share - Ordinary shares and B shares - which pay the same level of quarterly cash distributions. The cash distributions on the Ordinary shares are paid as dividends while those on the B shares are paid by way of capital distributions and therefore taxed under capital gains tax (CGT) rules which can provide tax benefits to certain types of investors. The net asset value attributable to each class of shares is the same.
    • The shares may also be traded as units. Each unit consists of three Ordinary shares and one B share.
  • Fund manager commentary

    Having suffered a tough November with disappointing trading updates from three of our holdings we delivered a strong performance in December. In terms of the fund we saw some strong returns from Intermediate Capital, Asos, Cairn Homes and BBA Aviation. There was no recurrent theme with returns driven largely by positive news flow leading into earnings season. Cairn Homes has already updated on 2017 sales figures which came in around expectations with 418 units sold at an average selling price (ASP) of €314k. In terms of the investment proposition the forward sales were also very strong and they enter 2018 with 348 units sold versus the 850 expected in 2018. This provides a strong base visibility for us to anchor to as we await sales updates. In terms of profitability, this came in marginally behind expectations as they have increased the central costs slightly over the last year. Having spoken with management these costs are reflective of the ramp-up at their apartment blocks which need a much higher level of oversight to deliver. From my perspective I’m happier to trade 0.5-1% of margin to make sure these projects are managed appropriately.

    From a trading perspective there was no activity in the month after a number of changes through November. In terms of the bigger picture I still feel the portfolio needs more concentration and that a number of the positions remain below the 1.5% active (relative to the benchmark) weight I would normally like to hold. Reshaping a portfolio is evolution rather than revolution and this isn’t a process you can force as it takes time to get the right names and then to build weightings to the appropriate level. Managing this against a volatile backdrop, as I noted last month, is why I believe it is better to wait for value to appear rather than trying to chase businesses that have already rerated.

    As at 31 December 2017

  • Suitability for retail distribution

    The Company is an investment trust and therefore its shares are not subject to the Financial Conduct Authority's rules relating to the restrictions on the retail distribution of unregulated collective investment schemes and close substitutes which came into effect on 1 January 2014. The Company conducts its affairs so that its shares can be recommended by Financial Advisers to ordinary retail investors in accordance with the Financial Conduct Authority's rules relating to non-mainstream investment products and intends to continue to do so.

  • Fund facts
    Investment manager F&C Investment Business Limited
    Benchmark FTSE All-Share Capped 5% Index
    AIC sector UK Equity & Bond Income
    Launch date 1 March 2007
    Total assets £144.7 million (as at 31.12.17)
    Currency Sterling
    ISIN (Units) GB00B1N4H933
    (Ordinary Shares) GB00B1N4G299
    (B Shares) GB00B1N4H594
    SEDOL (Units) B1N4H93
    (Ordinary Shares) B1N4G29
    (B Shares) B1N4H59
    Key dates
    Annual general meeting June
    Year end 31 March
    Dividend payment date(s) August, November, February and May
    Ex-dividend date(s) July, October, January and April
  • 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, and relevant Key Information Documents (KID), 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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