F&C Investment Trust plc - FCIT

Founded in 1879, the F&C trust is one of the earliest modern funds, originally investing in government bonds. It now invests in public companies across the globe, as well as some private equity.

FCIT is now part of Freetrade’s universe! :slight_smile:

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Looks like FCIT now managed by Columbia Threadneedle is heading back into the FTSE100. It was the world’s first investment trust - founded in 1868 and has had 51 years of consecutive dividend rises (and so is a AIC “dividend hero”).

Share snapshot over 5 years from Google Finance:

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https://www.theaic.co.uk/aic/find-compare-investment-companies?sec=GG&sortid=Name&desc=false

In the aic global sector.
I have never thought much of this investment trust but in reality its the sector that sucks. There 17 investment trusts in this sector.
Using total returns
1 year second place
5 years second place
10 years third place
Total returns
1 year 0.62
5 years 52.62
10 years 242.64
Not that bad specially the 10 years

Dividend 1.94%
Good dividend increases averaging around 5.2% a year.
Good dividend cover apart from the last 2 years but thats what dividend reserves are for.
5 year Share price gain (ie not total returns) 42% nothing to right home about but far from terrible.
Discount only 4.2% if you consider the discounts available not that good. In fact i would look at as a nill discount ie dont expect to go par or a premium.
Ignoring covid crash you would have to go back 5 years to find 10% discount.

Size does matter. This is big enough to attract the “wealth managers”

There investments go from small companies to large companies.
Unlisted supposedly 30% in private equity.
Any where in the world.
50% US
large amount in the tech giants. Normally i would class this as no no but they have fallen significantly so could be reason to buy (could).
I will consider this in the future as a boring not that good, not that bad, no need to keep an eye on investment trust.

NOTE
Scottish mortgage is also in this sector and has a 1 year total return of -52% and a 14% discount.
Total returns are better than F&C over 5 and 10 years. So question has the tech/growth sector bottomed out. AND do you want that sort of volatility?

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This trust dropped ‘Foreign and Colonial’ from its name in 2018 so it could do with amending in app.

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An interesting comment by @rehpot elsewhere (I think! And I have forgotten where!) is that he considers this to be a ‘pseudo tracker’. I bring it up because that is also something people should consider. If you look at the 5yr performance you will see this (though FCIT over this period does edge out VWRL). However, in market situations like the one we have at the moment there is a case for active funds. I am not recommending either just adding a couple of points for people to consider.

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I would never consider this a “pseudo tracker” mainly because its not. The private equity alone would rule that out.
I do agree this is a time for active management. They had started a move away from growth to value before the crash in growth.
It is also worth noting that size can make it difficult to sell out of positions. And near impossible with the private equity part of the portfolio.

As an aside "The great Terry Smith " is always fond of telling people to buy growth in total returns it beats value.
“If you want dividends then just sell some shares”
He’s right at least in the medium and the long term.
Something like Scottish mortgage?
How about the short term? 1 year for instance
Scottish mortgage -52% dividend 0.50
Foreign and Colonial +0.62% dividend 1.94%
If i was to follow Terry Smith advice on selling shares for dividends then foreign and colonial would be far better prospect a specially on freetrade with the nill fees.
It would be struggle just to bring yourself to sell shares in Scottish mortgage shares after they fallen 50%

I disagree with this – and so do the numbers. It’s all very well saying SMT’s down 50% in a year, but what about the long term?

Here’s the share price total return of some trusts in the AIC global sector over 30 years to 2022:

SMT 5,985%
AGT 3,091%
MNKS 2,163%
BNKR 1,966%
FCIT 1,632%
WTAN 1,427%
ATST 1,397%

That’s a sector that sucks? :thinking:

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I am so surprised that you contradicted me :thinking: :shushing_face: :shushing_face:
I would never advice anyone to look at the returns over 30 year and neither would any investment managers.
Also what sector are you comparing it to or doesn’t that matter?

Arhh i forgot the main reason i was going to do a bit of a write up was foreign and colonial have issued £300 million worth of 40 year bonds at 1.87%. Thats as about as good as it gets.

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Was just about to buy some foreign and colonial with a couple of dividend payments, when I remembered I am trying to reduce my portfolio. I have 20 investments I think should reduce it to 10 (12 with a couple of dogs!)
I will have to do a complete sell out of something.

Foreign and Colonial
“foreign and colonial have issued £300 million worth of 40 year bonds at 1.87%.”
Now that’s cheap!