F&C Investment Trust (FCIT) H1 2024 earnings summary

Executive summary

• NAV total return for H1 2024 was 13.2%, outperforming the FTSE All-World Index benchmark of 12%.

• Shareholder return was 6.4%, with the share price rising to 1,012.0p from 962.0p at year-end 2023.

• Outperformance in listed equities despite underweighting US tech stocks; private equity lagged but showed progress in realizations.

• Discount to NAV widened from 5.9% to 11.7%, prompting significant share buybacks totaling 10.2 million shares.

• Interim dividend of 3.6p per share announced, marking the 54th consecutive annual rise, supported by a strong revenue reserve.

Financial highlights

• NAV per share rose to 1,145.47p from 1,022.07p at 31 December 2023.

• Net revenue return per share increased by 10.9% year-over-year to 9.64p.

• Portfolio return was 12.2% in aggregate, with gearing adding 0.8% to returns.

• Net return attributable to shareholders was £648.7m, up from £204.6m in the prior year period.

• Ongoing charge (OCF) at 0.49%, competitive versus peers; management fees at 0.30% up to £4bn market cap, 0.25% above £4bn.

Outlook and guidance

• Rate cuts expected from major central banks in 2024; inflation declining in UK and Europe, but US inflation remains persistent.

• US growth expected to moderate, with improved prospects for Europe, UK, and emerging markets in 2025.

• Risks include US political uncertainty, Middle East geopolitics, market concentration, and cyber threats.

• Board committed to further dividend increases; revenue reserve and dividend cover remain strong.

• Private equity sector shows signs of improvement, with increased M&A activity and valuation uplifts.