F&C Investment Trust

This was our first introduction to the strategy and it was difficult to really understand how the strategy actually works, and the benefit to investors. It has outperformed the index over the medium to long term and it does pay a dividend to investors.

It has had 49 consecutive dividend rises and a dividend has been paid in every year since 1868. They have cash to pay the equivalent of 1.75 years’ worth of dividends held in reserve. There is the intention to make a rising dividend payment this year, but this will likely come down next year. There must be a question mark about holding cash to provide a dividend rather than paying for the dividend via a natural income stream.

In terms of how they invest, this is a global strategy and the manager does not directly invest the money. They use segregated mandates, for example T Rowe manage the US Growth part of the portfolio. The management therefore comes at a strategic level rather than a company level. So, because of market events they have reduced exposure to Europe, Value, Japan and High Yield. They have added exposure to sustainable and global growth…read more

Fund Facts Morningstar

Notes

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