F&C Investment Trust (FCIT) H2 2024 earnings summary

Executive summary

• Achieved a 21% NAV total return and 16.9% shareholder total return for 2024, outperforming the FTSE All-World Net Index benchmark of 19.3% and maintaining strong long-term performance over 1, 3, 5, 10, and 20 years.

• Proposed a 6.1% increase in the annual dividend, marking the 54th consecutive annual rise, with dividends consistently outpacing inflation over multiple periods.

• Ongoing charges reduced to 0.45%, with further reductions expected due to renegotiated management fees and increased scale.

• Board changes include the appointment of Richard Robinson and the upcoming departure of Edward Knapp.

Financial highlights

• Net revenue return per share rose 7.5% to a new high, supporting the increased dividend.

• Revenue reserves reached GBP 116.2 million, equating to 24.2 pence per share, providing strong dividend cover.

• Buybacks of 27.3 million shares were accretive to NAV, helping to narrow the discount post year-end.

• Gearing fell from just under 10% to about 9% (par) and closer to 5% (fair value), with GBP 580 million in long-dated debt at a blended fixed rate of 2.4%.

Outlook and guidance

• Outlook for equities is constructive, with expectations of reasonable growth and earnings in the U.S., Europe, Japan, and emerging markets, and likely declines in interest rates.

• Risks include geopolitical and political uncertainty, tariffs, and potential trade wars, particularly involving the U.S.

• Anticipates a broadening of market performance beyond the U.S. and the Magnificent Seven, with better prospects for Europe and private equity exits.