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

    Or contact your usual investment broker

  • 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 majority of the Company's assets are invested in an equities portfolio comprising large and mid-size UK companies.
    • The trust has two classes of share - A shares and B shares - which pay the same level of quarterly cash distributions. The cash distributions on the A 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 A shares and one B share.
  • Fund manager commentary

    Over the month, the Company’s net asset value total return was -1.3% and this compares with the return from the FTSE All-Share 5% Capped Index of -0.2%.

    During the final quarter of 2016, there was a substantial reduction in assets allocated to the higher yield portfolio in light of the low level of yields available on corporate bonds, particularly on higher quality, investment grade corporate bonds. As at the end of January corporate bonds accounted for just 2.2% of the Company’s total assets. With global economic growth expectations improving and inflation expectations rising we expect to see upwards pressure on both government bond yields and to a lesser extent investment grade credit yields. The proceeds raised from the reduction in the Company’s corporate bond exposure was reinvested across a wide range of existing holdings in the equities portfolio.

    The UK market has benefitted significantly from the effect of the devaluation of sterling on its predominantly international earnings base following last year’s EU referendum in the UK. In the US, markets have been buoyed by the general improvement in the macroeconomic backdrop and the expansionary pro-business rhetoric from the new US administration.

    On 31 January 2017, the Company announced that it has changed its name to F&C UK High Income Trust plc with immediate effect. The Company’s shares began trading under the new name on the London Stock Exchange from 08.00 a.m. London time on 1 February 2017. The Company’s trading instrument display mnemonic (TIDM) will change to FHI for the A shares, FHIB for the B shares and FHIU for Units. The ISIN and SEDOL numbers will remain unchanged.

    The Company’s website address will be amended to reflect the change of name and will be available at www.fandcukhit.co.uk from 1 February 2017.

    Shareholders are unaffected by the change of name and existing share certificates should be retained and will remain valid. Any new share certificates issued will bear the name F&C UK High Income Trust plc.

    As at 31 January 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 £142.8 million (as at 31.01.17)
    Currency Sterling
    ISIN (Units) GB00B1N4H933
    (A Shares) GB00B1N4G299
    (B Shares) GB00B1N4H594
    SEDOL (Units) B1N4H93
    (A 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
  • Share price (A Shares)

    104.00p0.00p

    closed

  • Share price (B Shares)

    104.50p0.25p

    closed

  • Rodger McNair

    Rodger McNair

    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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