F&C INVESTMENT TRUST PLC ANNUAL REPORT
FOR THE YEAR ENDED 31 DECEMBER 2022
CONTENTS
Strategic Report
Company Overview
Financial Highlights Chairman's Statement Fund Manager's Review
Our Approach to Responsible Investment Twenty Largest Listed Equity Holdings Ten Year Record
Business Review
Purpose, Values and Investment Objective Section 172 Statement
Key Stakeholder and Shareholder Engagement Principal Policies
Key Performance Indicators
Principal and Emerging Risks Long-Term Viability
Governance Report
2023-24 Financial Calendar | ||
2 | ||
Annual General Meeting | 27 April 2023 | |
3 | ||
4 | Final dividend for 2022 payable | 11 May 2023 |
8 | Interim Results for 2023 announced | end July 2023 |
16 | First interim dividend for 2023 payable | August 2023 |
26 | ||
Second interim dividend for 2023 payable | November 2023 | |
28 | ||
Third interim dividend for 2023 payable | February 2024 | |
30 | ||
30 | Final Results for 2023 announced | March 2024 |
32 | Final dividend for 2023 payable | May 2024 |
33 | ||
35 | ||
38 | ||
40 | ||
43 |
Board of Directors | 45 |
Directors' Report | 47 |
Corporate Governance Report | 53 |
Report of the Management Engagement | |
Committee | 56 |
Report of the Nomination Committee | 58 |
Report of the Audit Committee | 59 |
Directors' Remuneration Report | 65 |
Statement of Directors' Responsibilities | 69 |
Independent Auditor's Report | 70 |
Financial Report | |
Income Statement | 78 |
Statement of Changes in Equity | 79 |
Balance Sheet | 80 |
Statement of Cash Flows | 81 |
Notes to the Accounts | 82 |
Notice of Annual General Meeting | 107 |
Other Information | |
Management and Advisers | 112 |
Additional Information for Shareholders | 113 |
How to Invest | 114 |
Alternative Performance Measures | 115 |
Glossary of Terms | 118 |
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised under the Financial Services and Markets Act 2000 if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise transferred all your ordinary shares in F&C Investment Trust PLC please forward this document, together with the accompanying documents, immediately to the purchaser or transferee or to the stockbroker, bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. If you have sold or otherwise transferred only part of your holding of shares, you should retain these documents.
TRUE TO OUR GOAL FOR OVER 150 YEARS
Our focus has never wavered since the day we were founded in 1868. Our approach aims to deliver long- term growth in capital and income. To achieve this, we invest on the world's major and developing stock markets in the shares of established companies, strong newcomers and rising stars.
It's a diverse portfolio strategy that also gives investors exposure to a range of well managed private equity funds and co-investments. Whether you're new to investing or looking to add a firm foundation to your existing portfolio, our approach could be right for you.
COMPANY OVERVIEW
F&C Investment Trust PLC (the 'Company' or 'FCIT' or 'F&C') was founded in 1868 as the first investment trust with the purpose of providing the investor of more moderate means access to the same opportunities and advantages as the very largest investors.
This purpose continues today, providing a foundation for the long-term investment needs of large and small investors through a diversified, convenient and cost effective global investment choice.
Our objective is to achieve long-term growth in capital and income through a policy of investing primarily in an internationally diversified portfolio of publicly listed equities, as well as unlisted securities and private equity, combined with the use of gearing.
Our approach is designed to obtain the investment performance benefits from a range of individually concentrated global and regional portfolios alongside the diversification benefits of lower risk and lower volatility achieved by managing these portfolios in combination. Offering a globally diversified portfolio of growth assets, the Company aims to be a core investment choice through all available channels.
The Company continues to evolve, allowing it to keep pace with new investment opportunities and maintain its relevance in today's world. A commitment has been made to transition the Company's portfolio to net zero carbon emissions by 2050, at the latest. The Company is suitable for retail investors in the UK, professionally advised private clients and institutional investors who seek growth in capital and income from investment in global markets and who understand and are willing to accept the risks, as well as the rewards, of exposure to equities.
VISIT OUR WEBSITE AT FANDC.COM
The Company is registered in England and Wales with company registration number 12901
Legal Entity Identifier: 213800W6B18ZHTNG7371
DIVIDEND
HERO
FORWARD-LOOKING STATEMENTS
This document may contain forward-looking statements with respect to the financial condition, results of operations and business of the Company. Such statements involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ materially from those expressed or implied by forward-looking statements. The forward-looking statements are up to date as at the date of this report and are based on the Directors' current view and on information available to them as at that date. There is no obligation to update the statements and nothing should be construed as a profit forecast.
2
FINANCIAL HIGHLIGHTS
Strategic Report
-0.9%
52nd
-0.9% Share Price Total Return*
Annual dividend*† per share up by 5.5% to 13.5p, our 52nd consecutive annual increase
-5.3%
3.0%
Net Asset Value Total Return* (with debt at market value) of -5.3%, which was ahead of the return from our benchmark, the FTSE All-World Index, of -7.7%
Our Discount* to NAV, moved from 7.3% to end the year at 3.0%
DELIVERING LONG-TERM GROWTH IN CAPITAL AND INCOME
In the last ten years the Company has grown a £1,000 investment, with dividends reinvested, to £3,407.
Mid-market price per share at 31 December - | Net asset value* per share with debt at market |
pence | value at 31 December - pence |
1,000 | 1,000 | ||||||||||||||||||||
900 | 900 | ||||||||||||||||||||
800 | 800 | ||||||||||||||||||||
700 | 700 | ||||||||||||||||||||
600 | 600 | ||||||||||||||||||||
500 | 500 | ||||||||||||||||||||
400 | 400 | ||||||||||||||||||||
300 | 300 | ||||||||||||||||||||
200 | 200 | ||||||||||||||||||||
100 | 100 | ||||||||||||||||||||
0 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 0 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Source: Columbia Threadneedle Investments | Source: Columbia Threadneedle Investments |
A dividend has been paid every year since inception and has increased every year for the past 52 years. Over the last ten years it has increased by 58.8% (4.7% compound per annum), compared with inflation of 30.3% (2.7% compound per annum).
Share price discount/premium* to net asset value* at 31 December - %
2 | ||||||||||
0 | ||||||||||
-2 | ||||||||||
-4 | ||||||||||
-6 | ||||||||||
-8 | ||||||||||
-10 | ||||||||||
-12 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Source: Columbia Threadneedle Investments |
Total dividends*† per share - pence
14 | ||||||||||
12 | ||||||||||
10 | ||||||||||
8 | ||||||||||
6 | ||||||||||
4 | ||||||||||
2 | ||||||||||
0 | 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 |
Source: Columbia Threadneedle Investments
Potential investors are reminded that the value of investments and the income from dividends may go down as well as up and investors may not receive back the full amount invested. Tax benefits may vary as a result of statutory changes and their value will depend on individual circumstances.
* See Alternative Performance Measures on page 115.
† The final dividend for 2022 is subject to shareholder approval at the forthcoming Annual General Meeting.
Annual Report and Accounts 2022 | 3 |
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F&C Investment Trust plc published this content on 09 March 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 March 2023 09:11:11 UTC.
