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 fell 0.4% which was broadly in line with the 0.2% decline in the FTSE All-Share 5% Capped Index.

    We exited a number of positions over the month including Land Securities, Aviva and Royal Bank of Scotland. Land Securities has had a decent bounce post Brexit and given our concerns over the outlook for the retail sector and the sub-market yield we took the opportunity to allocate this capital to other names in the Trust. We exited Aviva, post payment of the final dividend, to consolidate our insurance allocation. Finally, the exit of Royal Bank of Scotland was a function of the small absolute weight in a name we didn’t feel warranted additional capital.

    Having made a number of new mid-cap additions to the fund over the last few months we continued to add to these through the month. These included Intermediate Capital and Origin Enterprises with the additional funds allocated to our preferred name in the insurance space, Phoenix Group. We are attracted to the strong cash flow Phoenix delivers from the core business which was supplemented by the deals they completed in 2016. With a robust solvency ratio the business is well placed to fund future deals from their own balance sheet whilst also paying an attractive 6.2% yield.

    As at 30 April 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 £149.6 million (as at 31.03.17)
    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
  • 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.

Top