F & C Investments

Investors Capital Trust

  • 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

    • Investors Capital Trust 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

    The Company’s net asset value decreased 0.8% in total return terms during the month. This compares with the 0.4% increase in the FTSE All Share 5% Capped Index over the same period.

    New positions were initiated in Legal & General and Intermediate Capital Group. Legal & General provides savings, risk and investment management services through bank and building society relationships, independent financial advisers and directly to customers. As one of the market leaders Legal & General also enjoys economies of scale allowing it to generate better returns than its smaller competitors. The shares offer an attractive dividend yield with some scope for growth.

    Intermediate Capital Group deploys capital on behalf of investors through private debt, mezzanine, credit and minority equity funds specialising in mid-market transactions. The Company also invests its own capital alongside third party funds. The company is evolving from a lender to a fund manager. We expect this relatively new business model will ultimately lead to higher growth, improved profitability and better visibility of returns.

    The positions in National Grid and Severn Trent, both regulated utilities, were reduced after a period of exceptional performance. The utilities sector is vulnerable to any increase in bond yields from the current record low levels. There has been a further 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. At the end of the month, the Higher Yield portfolio accounted for 4.4% of the Company’s total assets.

    As at 31 October 2016

  • 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 £146.1 million (as at 30.09.16)
    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)

    95.03p-1.23p

    closed

  • Share price (B Shares)

    96.22p-0.03p

    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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