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

Executive summary

• NAV total return for the half year 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.

• 54th consecutive annual dividend increase announced, supported by strong revenue growth and a substantial revenue reserve.

• Share buybacks increased, with 10.2 million shares repurchased, narrowing the discount and adding 0.2% to NAV.

• Portfolio remains globally diversified, with significant exposure to technology and private equity.

Financial highlights

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

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

• Total income for the half year was £64.1m, up from £58.4m in the prior year period.

• US large-cap growth manager returned 25.7%, value manager 10.9%, both beating respective indices.

• Private equity delivered a 6% absolute return, lagging listed equities but showing progress in realizations.

Outlook and guidance

• US equity valuations remain elevated, with market concentration and optimistic AI-driven earnings expectations posing risks.

• Political uncertainty in the US and Europe, and moderating US growth, present near-term risks for equities.

• Improving prospects and earlier rate cuts may benefit European and UK equities; Japan remains attractive long-term.

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

• Board remains committed to further dividend increases.