F&C Investment Trust reports strong returns, proposes share split

(Sharecast News) - F&C Investment Trust reported a year of strong shareholder returns for 2025 on Monday, with its share price total return slightly outperforming its global benchmark as equity markets rallied despite periods of volatility. The FTSE 100 investment trust said its share price rose to 1,252p at the end of 2025, delivering a total return of 14.6% for the year, compared with a 14.2% return from the FTSE All-World Index.

Its net asset value per share, with debt at market value, increased from 1,219.6p to 1,343.4p, producing an NAV total return of 11.6%.

The share price discount to NAV narrowed to 6.8% from 9.2% at the start of the year, helping lift shareholder returns.

Chair Beatrice Hollond said the company had delivered strong long-term performance, noting:

"Over the 10 years to the end of 2025 your company delivered a share price total return equivalent to 12.6% per annum."

Over a longer horizon, the trust generated a shareholder total return of 619.1% over the 20 years to the end of 2025, equivalent to 10.4% per year.

The firm added that £1,000 invested in the trust at the start of 2016, with dividends reinvested, would have grown to £3,283 by the end of 2025.

Equity markets experienced sharp swings during the year, with a downturn early in the second quarter triggered by aggressive tariff announcements from the US administration and concerns over a potential trade war before a strong rebound later in the year.

Hollond said that while the company's share price total return exceeded the benchmark, the NAV total return slightly lagged it, though both measures still outperformed the median of its peer group.

Income generation also strengthened, with gross income rising 1.3% to £113.2m and net revenue increasing 2.0% to £86.2m.

Net revenue return per share climbed 5.6% to 17.97p.

The board proposed a final dividend of 5.2p per share, which would bring the total dividend for 2025 to 16.6p, a 6.4% increase on the previous year and the trust's 55th consecutive annual dividend increase, subject to shareholder approval at the annual general meeting.

Fund manager Paul Niven said the broader environment remained supportive for global equities.

"Stronger earnings foundations, more opportunities within global equity markets and a more even distribution of market leadership support a favourable environment for diversified global equity investors," he said.

During the year the company bought back 8.1 million shares, equivalent to 1.7% of its issued capital, and maintained borrowings of £581.2m.

Effective gearing declined to 8% from 8.6% a year earlier.

The trust's loans carried a blended interest rate of about 2.4%, with maturities extending to 2061.

The board also proposed a four-for-one share split, which would reduce the absolute share price without altering shareholders' total holdings.

The move followed strong long-term performance that had lifted the share price from 258.5p at the end of 2005 and 449.2p at the end of 2015 to 1,252p at the end of 2025.

If approved by shareholders, the split would take effect on 11 May.

At 0958 GMT, shares in F&C Investment Trust were up 0.09% at 1,219.06p.

Reporting by Josh White for Sharecast.com.

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