REG - F&C Investment Trust - Annual Financial Report
16/03/2026 07:00
For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260316:nRSP6744Wa&default-theme=true
RNS Number : 6744W F&C Investment Trust PLC 16 March 2026
F&C INVESTMENT TRUST PLC
Audited Statement of Results for the year ended 31 December 2025
LEI: 213800W6B18ZHTNG7371
Information disclosed in accordance with DTR 4.1.3
16 March 2026
F&C Investment Trust plc ('F&C'/the 'Company') today announces its
results for the year ended 31 December 2025.
· F&C's share price was 1,252 pence representing a share price
total return of +14.6%, against the return from its benchmark, the FTSE
All-World Index, of +14.2%.
· Over ten years £1,000 invested in F&C on 1 January 2016, assuming
dividends had been reinvested in the Company's shares, would be worth £3,283
as at 31 December 2025.
· The Company has delivered a total shareholder return of 619.1% over
the twenty-year period to the end of 2025, equivalent to 10.4% per annum.
· The final dividend will be 5.2 pence per share will, subject to
shareholder approval at the AGM, bring the total dividend for the year to 16.6
pence per share, a 6.4% increase and the 55th consecutive annual increase.
Commenting on the markets, Paul Niven, Fund Manager said:
"Stronger earnings foundations, more opportunities within global equity
markets and a more even distribution of market leadership support a favourable
environment for diversified global equity investors."
The Chairman, Beatrice Hollond, commented:
"Over the ten years to the end of 2025 your Company delivered a share price
total return equivalent to +12.6% per annum"
The full results statement is attached.
Past performance should not be seen as an indication of future performance.
The value of investments and income derived from them can go down as well as
up as a result of market or currency movements and investors may not get back
the original amount invested.
Contacts
Paul Niven - Fund Manager 020 3530 6396
Campbell Hood
campbell.hood@columbiathreadneedle.com
(mailto:campbell.hood@columbiathreadneedle.com) 07860 911 622
Lansons
Tom Straker
columbiathreadneedle@lansons.com (mailto:columbiathreadneedle@lansons.com)
07505 425 961
About F&C:
· Founded in 1868 - the oldest collective investment trust
· A diversified portfolio provides exposure to most of the world's
stock markets, with exposure to just under 400 individual companies across the
globe
· Its aim is to generate long-term growth in capital and income by
investing primarily in an international portfolio of listed equities
Visit our website: fandc.com (http://fandc.com)
Chairman's Statement
Dear Shareholder,
2025 was a good year for shareholder returns with our +14.6% share price total
return exceeding that of our benchmark index, which returned +14.2% over the
year. Despite this positive outturn there was significant volatility in equity
markets, and our share price, over the course of the year.
Early in the second quarter there was a sharp market downturn as markets
responded to aggressive tariff announcements from the US administration and
rising fears of a trade war. As tensions eased, equities rebounded strongly,
and our share price ended the year at an all-time high.
Weakness in the US dollar, which declined sharply against sterling during the
first half of the year, eroded returns from our US holdings. This coincided
with a change in the longstanding dominance of the US equity market.
International markets outperformed the US and there was also a broadening of
leadership within the equity markets beyond the large US technology stocks
which have been a main driver of US equity returns in recent years. Indeed,
while the Artificial Intelligence ('AI') theme remained important, there was
far greater discrimination from investors between perceived winners and
losers. In part, this trend reflected investors' response to significant
increases in capital expenditure plans related to the AI theme and concerns
over the future profitability of these companies.
As the year drew to a close, markets were buoyed by another year of strong
growth in corporate earnings and a supportive fundamental backdrop, with
economic growth relatively robust, modest rates of inflation, albeit above
central bank targets, and ongoing cuts in interest rates from most major
global central banks.
While our share price total return exceeded that of our benchmark, our net
asset value ('NAV') total return, taking debt at market value, of +11.6%
underperformed the benchmark. However, both our shareholder and NAV total
returns were better than the median of our closed and open-ended peers for the
year and it is very pleasing that we remain ahead of the peer group median
over one, three, five and ten years. Indeed, our NAV total returns are the
strongest of any peer over the five years to the end of 2025. The level of
consistency of our excess returns relative to the closed-end peer group of
global investment trusts is unique.
Our NAV, with debt at market value, rose from 1219.6p per share to 1343.4p per
share and our share price rose from 1,108p to 1,252p. Our share price discount
to NAV narrowed from 9.2% at the start of the year to 6.8% by the end. This
was accretive to shareholder returns over the year. We bought back 1.7% of our
issued capital, a total of 8.1m shares, significantly less than in 2024. We
remain committed towards our objective of achieving a sustainably low
deviation between our share price and NAV, as well as reducing the volatility
of the discount.
We enjoyed strong absolute returns from all components of our listed equity
strategies over the year but, while some of our US value holdings produced
high levels of excess returns and our emerging markets allocation performed
well, disappointing relative returns from our European portfolio and those of
some of our US components hampered our overall return relative to the
benchmark index. This was despite the decision to hold underweight positions
in most of the so-called "Magnificent Seven" stocks relative to the benchmark,
which did add relative value over the year.
Our private equity portfolio again produced respectable absolute returns over
the year, but performance was significantly behind that of the listed global
equity benchmark.
As our investment portfolio has significant investments in US assets, the
decline in the US dollar (of -6.9%) against sterling was detrimental to
returns but, in a year where markets rose strongly, our gearing added value
over the year.
I am delighted to report that we were awarded the Investment Week Investment
Company of the Year Global Award 2025. These awards highlight outstanding
managers who have delivered consistently strong performance for investors
across a variety of sectors, and who the judges believe can continue to
perform well in the future.
Contributors to total returns in 2025 (%)
Portfolio return((1)) 11.2
Management fees -0.4
Interest and other expenses -0.1
Share buybacks 0.1
Change of value of debt -0.1
Gearing/other 0.9
NAV total return 11.6
Change in share price discount 3.0
Share price total return 14.6
FTSE All-World (Total Return) Index 14.2
Source: Columbia Threadneedle Investments
LONG-TERM RESULTS
We remain resolutely focused on our investment objective of securing growth in
both capital and income for our shareholders over the long term. Over the ten
years to the end of 2025 your Company delivered a share price total return
equivalent to +12.6% per annum. Returns have remained remarkably consistent
with limited losses on an annual basis over the past decade.
Over the twenty-year period to 31 December 2025 the Company's NAV return was
+567.7%, equivalent to +10.0% per annum. Our capital-only return (i.e. without
dividends reinvested) over the past twenty years was +384.3% (+8.2% per annum)
and our shareholder total return was +619.1% (+10.4% per annum). Dividends
paid to shareholders have risen by +5.6% per annum over the past decade and by
6.5% over the past twenty years. Such results continue to demonstrate the
importance of compounding income and capital gains over the long term.
FIFTY FIFTH CONSECUTIVE ANNUAL DIVIDEND INCREASE
Our gross and net income generated in 2025 represented another record high.
Gross income rose by +1.3% to £113.2m and our net revenue rose by +2.0% to
£86.2m. Special dividends fell slightly to £2.8m (2024: £3.6m). The impact
of currency movements reduced our income by £2.2m (2024: -£3.4m). Our Net
Revenue Return per share rose by +5.6% on the year to 17.97 pence, from 17.01
pence.
It remains the ambition of the Board to deliver real rises in dividends for
shareholders over the long term that are sustainable. I am therefore delighted
to report another rise in the proposed annual dividend, which will again be
fully covered by our revenue earned in the year. Subject to approval at the
Annual General Meeting ('AGM'), shareholders will receive a final dividend of
5.2 pence per share on 6 May 2026, bringing the total dividend for 2025 to
16.6 pence: an increase of +6.4% over that of 2024. The increase compares to
inflation of +3.4%, as measured by CPI and means that the growth in our
dividends has exceeded UK inflation over one, three, five and ten years.
Indeed, the growth in our dividends over the past decade, at +72.9%, is almost
double that of UK inflation over the equivalent period (+39.7%). Furthermore,
our full year 2025 dividend, as well as being our fifty fifth consecutive rise
in annual dividends, is our one hundred and fifty eighth annual dividend
payment for shareholders.
We continue to benefit from a strong financial position with respect to both
our revenue reserves (£125.5m), which represent approximately one year of
dividend payments, and our capital reserves which stood at £5.78bn at the
year end. As both are potentially distributable, we remain very well placed to
continue our track record of increasing annual dividends well into the
future.
EFFICIENCY
Our 2025 Ongoing Charges figure remained at 0.45%, the same level as in 2024.
The Board continues to focus on delivering value for money for shareholders as
part of its performance objectives and the Manager is also supportive of
providing benefits of scale for its clients. With effect from 1 January 2025,
the Company's management fee has been paid at the rate of 0.3% on the first
£3.5bn of the market value of the Company (down from £4bn previously) and at
0.25% on the value of the Company between £3.5bn and £6bn. A new tier was
introduced, with a fee of 0.2% on market value above £6bn applying. From 1
January 2026, the level at which the 0.25% fee will start to apply has fallen
further, to £3bn. I would reiterate that the revised fee arrangements ensure
that your Company remains competitively positioned relative to its peers and
the Board believes that, along with our strong long-term investment
performance, this positions the Company to both attract and retain new
shareholders over time.
BORROWINGS
We did not add to our total borrowings of £581.2m over the course of the
year. Our cash and cash equivalent holdings were reduced from £91.1m to
£84.6m. Our effective gearing level (with debt at par) fell to 8.0% from 8.6%
at the start of the year.
With our substantial long-term borrowings and low fixed rates on our loans
that extend to 2061, we remain very well positioned to add value through
investment in assets which should be expected to deliver a superior return.
Our loans have a blended interest rate of approximately 2.4%, which is far
below current and prospective interest rates which we would pay for short and
long-dated loans.
SHARE SPLIT
The Board is recommending that shareholders approve at the forthcoming AGM the
proposal to agree a share split for the Company's shares, where shareholders
would be issued four shares for each share that they currently hold. Our share
price has risen from 258.5p per share at the end of 2005 and 449.2p per share
at the end of 2015 to 1,252p per share at the end of 2025. Strong performance
in our share price over many years has led to a high share price in absolute
terms and the Board has received feedback from shareholders that a share split
would be welcomed.
The effect of a four for one share split will be to reduce the absolute level
of our price per share, without altering the value of individual shareholders'
total holdings. A lower price per share will be of particular benefit to
shareholders who invest monthly or elect to re-invest their dividends and may
benefit the wider shareholder base through increasing the affordability and
liquidity of our shares. If agreed, the share split will be effected on Monday
11 May 2026.
REDUCING CARBON INTENSITY
The Board remains committed to transitioning the Company's portfolio to net
zero carbon emissions by 2050 ('Net Zero') and the Manager's approach to
Responsible Investment is set out in the annual report. It is pleasing to note
that the portfolio's carbon intensity decreased in 2025. However, it remains
above that of the benchmark and, as I have explained previously, it is
important to be aware that progress towards Net Zero will not be in the form
of a straight-line trajectory. The Company has an investment objective to
deliver growth in capital and income over time and the Board considers that
this remains the primary objective for the Fund Manager. In the short term,
delivering on the investment returns objective might periodically mean
increases in the overall carbon intensity of the portfolio but, over time, we
intend to reduce it both through investments in renewable energy and other
decarbonisation technologies, as well as engaging with companies across our
portfolio to ensure their activities are aligned or aligning to Net Zero. As a
result of that engagement, companies are assessed as to whether they are
aligned, aligning, committed, or not aligned to Net Zero and we also pay close
attention to progress on this alignment. More detail is given in the
Responsible Investment section of the annual report. The Board is also
cognisant that there might be short term disruption and challenges in
achieving its Net Zero target and it has identified the failure to transition
to Net Zero as a principal risk.
BOARD COMPOSITION
Josh Bottomley was appointed to the Board on 1 September 2025, replacing
Edward Knapp who stepped down from the Board on 31 July 2025. Josh is Chief
Executive Officer of Dunnhumby, a global AI and analytics business. He was
previously an Operating Partner at CVC Capital Partners and has held senior
positions at HSBC Holdings plc, Google Inc. and LexisNexis.
I will have served as a Director for nine years in September this year. I will
seek re-election at the forthcoming AGM but will step down from the Board
later this year. I shall miss working with the other Board members and with
the management team, but I know I will be leaving your Company in very capable
hands and that my fellow Directors will continue to act in shareholders' best
interests. The process to appoint my successor is underway and is being led by
Quintin Price, our Senior Independent Director. A further announcement will be
made in due course.
F&C LIVE
Following the success of the lectures that the Company has sponsored in
previous years, I am pleased to report that the Company again sponsored an
event this year. F&C Live was held at The Landmark London Hotel on Tuesday
3 March 2026, with the theme "The Long View: Resilience in an Age of Upheaval"
and featured thought-provoking presentations from two distinguished speakers
as well as our own Fund Manager, Paul Niven. Video clips will be made
available to everyone on the Company's website, fandc.com, shortly.
ANNUAL GENERAL MEETING
The forthcoming AGM will be a "hybrid" meeting, which will enable shareholders
who cannot attend in person to view the AGM online and to participate by
asking questions and voting if they wish. Full details of how to do so are set
out in the letter that accompanies your Form of Proxy or Form of Direction.
Voting will be conducted by way of a poll, and you are requested to lodge your
votes ahead of the meeting by completing your Form of Proxy or Form of
Direction in accordance with the instructions. Its completion and return will
not preclude you from attending the meeting and voting in person. If you are
unable to attend the AGM, you are requested to submit any questions you may
have with regard to the resolutions proposed at the AGM, or the performance of
the Company, in advance of the meeting to fcitagm@columbiathreadneedle.com.
Following the AGM, the Fund Manager's presentation will be available on the
Company's website at fandc.com.
OUTLOOK
As mentioned above, equity markets delivered strong returns over the past
year, even as geopolitical events and policy shifts created periods of
volatility. Encouragingly, this progress was accompanied by a widening of
market leadership across regions and sectors, with a broader set of companies
contributing to overall gains. 2026 has already seen significant volatility,
driven by developments in US trade policy, where the Supreme Court has
overturned the Liberation Day tariffs, and from the oil price shock which has
resulted from the US and Israeli war with Iran. We expect volatility to remain
a feature of markets during 2026.
The global environment is undergoing a period of significant transition.
Shifts in geopolitical relationships, supply chain structures and economic
policy frameworks are reshaping the backdrop for investors. At the same time,
the long standing dominance of the US equity market - powered by a remarkable
group of highly profitable, capital-light technology companies - is evolving.
While it is too early to call an end to US or technology leadership, despite
near term stress in global equity markets, the balance of drivers is changing
and we see a more diverse set of opportunities emerging across global markets.
A major catalyst for this shift is the scale and speed of the AI investment
cycle. The AI revolution is ushering in extraordinary levels of capital
expenditure, with companies and nations competing to build the data
infrastructure and energy capacity needed to support future applications.
There is justified optimism about the long term productivity benefits that
these technologies can unlock. However, such rapid investment inevitably
brings areas of over spend and pockets of unprofitable activity and we expect
investor returns to vary widely across the value chain.
This increasing differentiation between winners and losers - both among those
developing AI technologies and those deploying them - reinforces the
importance of disciplined stock selection and broad diversification.
Attractive opportunities extend well beyond today's technology leaders and
into areas that stand to benefit indirectly from innovation, including
industrials, energy infrastructure and parts of the services economy. We see
similarly broad opportunity across geographies, with regions outside the US
contributing more meaningfully to market leadership than in recent years.
It is a historic feature of equity markets that, the longer the holding
period, the greater the likelihood of positive returns. Despite periods of
volatility, however, the returns generated since the Global Financial Crisis,
over fifteen years ago, have been extraordinary. Indeed, more recently, the
recovery of equity markets after Covid, and growth in scale of leading
technology stocks, have propelled markets to new highs. Recent events remind
us that volatility, and periods of decline, are also a feature of equity
markets and we recognise that valuation levels are, in many areas,
unforgiving.
Against this backdrop, we believe that a diversified approach across both
public and private equity markets is well suited to the environment ahead. The
breadth of our global mandate, combined with our long term investment horizon,
positions the Company to capture opportunities created by structural change
while managing the associated risks arising from market volatility. As markets
continue to adjust to this evolving landscape, we remain confident that our
balanced and globally diversified portfolio will continue to serve
shareholders well over the long term.
Beatrice Hollond
13 March 2026
Forward-looking statements
This document may contain forward-looking statements with respect to the
financial condition, results of operations and business of the Company. Such
statements involve risk and uncertainty because they relate to future events
and circumstances that could cause actual results to differ materially from
those expressed or implied by forward-looking statements. The forward looking
statements are based on the Directors' current view and on information known
to them at the date of this document. Nothing should be construed as a profit
forecast.
Weighting, stock selection and performance over one year in each investment
portfolio strategy and underlying geographic exposure versus Index at 31
December 2025
Investment Our portfolio strategy Underlying geographic exposure((1)) % Benchmark Our strategy Net index
Portfolio
weighting %
weighting %
Strategy performance % performance
in sterling %
North America 39.1 62.7 65.2 8.2 10.0
Europe inc. UK 8.6 19.5 14.7 16.9 26.2
Japan 4.4 5.5 5.7 15.7 16.7
Emerging Markets 6.1 8.7 10.4 27.6 24.4
Developed Pacific - 3.6 4.0 - 31.3
Global Strategies((2)) 30.4 - - 13.6 14.2
Private Equity((3)) 11.4 - - 5.3 -
(1) Represents the geographic exposure of the portfolio, including underlying
exposures in private equity and fund holdings.
(2) The Global Strategies allocation consists of Global Income, Global Focus
and Global Enhanced.
(3) Includes the holdings in Schiehallion and Syncona.
Source: Columbia Threadneedle Investments
PRINCIPAL AND EMERGING RISKS
Risk monitoring
The Board has continued to work with the Manager in managing the Company's
risks. A risk summary is produced by the Manager in consultation with the
Board to identify the risks to which the Company is exposed, the controls in
place and the actions being taken to mitigate them. The Board, through the
Audit Committee, has a robust process for considering the resulting risk
control assessment at regular meetings and on an ongoing basis it reviews the
significance of the risks and the reasons for any changes.
To a great extent, the Company is reliant on the risk management and internal
control processes that are embedded in the Manager's day-to-day operations.
The Board is confident through regular review and scrutiny that the Manager
has the required systems, tools, governance and processes in place to
identify, assess, monitor, manage and mitigate all material risk and control
issues that might impact the Company. This includes the ability of the Manager
to leverage expert resource as required: for example, the Company benefits
from the Manager's global team of experts that focuses continuously on
cybersecurity. The Manager provides ongoing comprehensive risk management and
control across the whole of the Company's portfolio, including management and
oversight of the risks arising from the use of both internal resource and
third-party managers.
The Board confirms that it has carried out a robust review and assessment of
the Company's Principal and Emerging Risks that could threaten its future
success. This included near-term risks such as those posed by geopolitical
uncertainty and longer-term risks, such as climate change. The consequences
for the Company's strategy, business model, liquidity, future prospects, long
term viability and its commitment to transition the portfolio to net zero
carbon emissions by 2050 formed an integral part of the review. In 2024, the
Board identified Responsible Investment Disclosure as an emerging risk,
specifically the inaccurate collection and disclosure of relevant data. This
was as a result of an error that had occurred in the prior year. The Board is
satisfied that the Manager has implemented additional controls and therefore
this risk has receded.
Our risk evaluation forms an inherent part of our strategy determination,
which seeks to mitigate risks and to pursue the opportunities that arise. As a
result of the Board's assessment, the following risk disclosures reflect what
it believes to be the Principal and Emerging Risks that the Company faces at
present, the material controls in place to mitigate those risks and whether
the status of those risks has changed in the year under review.
PRINCIPAL RISKS
Risk Description Risk Mitigation/Controls Status
Unsatisfactory Investment Performance
Sub-optimal implementation of the investment strategy, for example poor asset Under our business model, a Manager is appointed with the capability and à
allocation, sector and stock selection, concentration risk, excessive resources to manage the Company's assets through asset allocation, sector and
diversification, inadequate in-house private equity capability, currency stock selection, risk management and the use of gearing. The Manager can
exposure and use of gearing and derivatives may give rise to under-performance delegate the management of investment portfolios externally to third-party
against the Company's benchmark and companies within its peer group. It may managers. The individual global and regional investment portfolios are managed
also impact the Company's dividend paying capacity. as a whole to provide diversification, lower volatility and lower risk.
The performance of the Company relative to its benchmark, its peers and
inflation is a KPI measured by the Board on an ongoing basis. The Company's
portfolio is well diversified and its closed-end structure enables it to
continue to take a long-term view. Detailed reports, including revenue
forecasts, provided by the Fund Manager are reviewed by the Board at each of
its meetings.
Long-term performance remains in line with the Company's objective and the
Board's expectations. Prudent management of the Company's Revenue Reserve
means that its dividend paying capacity remains strong. The key indicators of
risk remain within tolerance across the long-term, diversified portfolio.
Geopolitical Actions
Geopolitical risks may result in global financial and equity markets The Company has a clearly defined investment strategy. Assets are diversified á
instability. Geopolitical actions may result in the imposition of government to reduce concentration risk and investment processes incorporate
and/or regulatory controls, causing falls in equity markets and resulting in non-financial and risk considerations in the assessment of investment
long term bear markets, with inflation damaging real returns, thereby opportunities. Gearing limits are set by the Board and levels are reported
restricting growth opportunities. regularly.
A significant weakening of the US Dollar against sterling would impact The Manager has systems, staff and controls in place to enable ongoing
dividend income and absolute performance negatively and reduce the monitoring of, and quick reaction to, financial crises.
attractiveness of overseas assets to UK investors.
The results of forward-looking stress tests, ranging from moderate to extreme
scenarios, have provided the basis for the Board to confirm the Company's
long-term viability.
Recent events in the Middle East demonstrate clearly that this risk has
increased.
Service Delivery Failure
Service providers are unable to provide expected services. Delivery failure Legal agreements are in place with the Manager, sub-portfolio managers and à
may be due to various factors including systems failure, a data breach as a other third party service providers. These set out the agreed service levels
result of cybercrime, material error and fraud. which are monitored. All third parties provide reports on their internal
controls environment which are independently audited. These reports are
This includes functions delegated by the Manager, for example fund accounting, reviewed by the Board with follow up queries directed to the relevant parties
third party sub-portfolio managers and third party providers appointed where necessary.
directly by the Company, such as the Custodian, Registrar and Depositary.
The Manager produces a quarterly investment trust controls report, detailing
any breaches, errors and/or general updates relevant to the Company. Each year
the Board reviews the Manager's Assessment of Value for the Company, which is
submitted by the Manager to the FCA in compliance with the Consumer Duty
regulation.
The Company's Depositary is liable in the event of a loss of assets.
The performance of the Manager and the third party service providers are
evaluated formally by the Management Engagement Committee on an annual basis.
Discount
The absolute level and volatility of the discount/premium to NAV at which the The Board monitors the discount/premium at which the shares trade on an à
Company's shares trade moves to an extent that it disadvantages shareholders. absolute level and relative to its peer companies and the wider investment
For example, the discount may widen through lack of demand for the shares in trust sector.
the market as a result of significant underperformance. As a result, the
attractiveness of the Company's shares to investors is diminished. A wide It operates a share buyback programme, thereby enhancing the NAV per share for
discount may also attract activist shareholders. ongoing shareholders and with the aim of minimising the absolute level and
volatility of the discount at which the Company's shares trade.
During 2025, the discount on the Company's shares ranged between 3.6% and
13.8% and averaged 7.9% over the year.
Cybercrime
Disruption to the Manager's or third party suppliers' systems as a result of The Audit Committee receives an annual update from the Manager's Chief à
cybercrime, including with the use of Artificial Intelligence, could prevent Information Security Officer and the organisation ensures that it is compliant
the accurate monitoring and reporting of the Company's financial position and with the Digital Operational Resilience Act ('DORA')((1)), which came into
impact the confidentiality or integrity of company data. Cybercrime could also effect in January 2025. There are multiple layers of controls in place from
impact other service providers' ability to provide the agreed services and protecting data, applications, end points, servers and the network through to
could result in the theft of Company or client assets. people and processes and there are a number of proactive policies in place,
along with a 24/7 security operation centre to monitor threats. The Manager is
fully aware and acts upon new cyber information as and when it becomes
available.
Whilst the risk remains high, Board and management vigilance also remains
heightened.
Loss of Key Personnel
A key individual or team could depart from the Manager causing disruption to The Board meets with members of the wider Columbia Threadneedle Investments à
the management of the Company's assets and under-performance. management team to ensure that relationships are fully developed at all
levels. Succession planning concerning any potential significant management
The greatest key person risk is the Company's Fund Manager, Paul Niven, who is changes is shared with the Board.
Head of Multi-Asset Solutions (EMEA) at Columbia Threadneedle Investments and
who has been managing the Company's assets since 2014. The Manager's Multi-Asset Solutions team is more than 20 strong and senior
members of the team attend Board meetings regularly. The Board has received
assurance from senior management at Columbia Threadneedle Investments that it
has the necessary breadth and experience if it was required to manage without
Mr Niven and it is confident that the structure that supports him could manage
in the event that he was to become incapacitated or leave the firm. Having
considered who are the key people that could potentially pose a risk to the
Company should they leave Columbia Threadneedle Investments, the Board is
confident that they could be replaced appropriately through internal promotion
or external recruitment.
Failure to Transition to Net Zero
The Board has made a commitment to transition the Company's portfolio to net The Manager believes in the power of engaged, long-term ownership as a force á
zero carbon emissions by 2050. Responsible investment is a field that is for positive change. It applies high standards of responsible investment in
evolving rapidly and it can present both opportunities and threats to the managing the investments on behalf of our shareholders and takes seriously its
long-term investment performance that we aim to deliver to our shareholders. stewardship responsibilities, actively engaging with investee companies. The
Board meets with Columbia Threadneedle's responsible investment team on a
regular basis. We recognise the importance of disclosing information on
responsible investment that is relevant, reliable and, as far as possible,
ensuring that it is presented in a consistent way from year to year in order
that our progress can be assessed.
Continuing geopolitical uncertainty and policy changes may lead to increases
in carbon intensity globally.
Emerging Risks
Risk Description Risk Mitigation/Controls
Disruptive Technology
The emergence of new, disruptive technology, including the use of Artificial The Company's Fund Manager is supported by a team of experienced investment
Intelligence, presents both opportunities and threats. It could have a professionals who provide research, supplemented by third party firms.
negative impact on the valuation of investments within the portfolio and/or
the consequences of new disruptive technology are not understood fully and Assets are diversified to reduce concentration risk, in line with the agreed
therefore investment opportunities are missed. investment strategy. We believe that it will take some time for the impact of
Artificial Intelligence to flow through which, therefore, gives the Fund
Manager time to react and reposition the Company's portfolio accordingly.
LONG-TERM VIABILITY
The UK Corporate Governance Code and the AIC Code of Corporate Governance
require the Board to assess the prospects of the Company over a longer period
than the 12 months required by the Going Concern provision.
The Audit Committee carried out scenario testing in order to consider the
Company's long-term viability over a period of ten years to 31 December 2035.
The tests commenced with a base case scenario that covered a range of
assumptions that it considers to be the most relevant, to which sensitivity
analysis was then applied in order to assess the impact of more extreme
scenarios. A key assumption in each scenario included no change to the
Company's dividend policy.
The worst case scenario tested by the Audit Committee was based on what it
believed to be severe but realistic assumptions. It addressed the potential
impact of falls of 40% in the value of the listed investments and 35% for the
private equity investments in 2026; followed by a 20% fall in listed equities
in 2027 together with fluctuations in income receipts. The fall in value of
investments may occur for a variety of reasons. Under this scenario the early
funding of the private equity commitments would increase the proportion of
that portfolio as a percentage of the total value of the investments as a
whole. All loans were assumed to have been repaid at the beginning of 2026.
Private equity valuations were assumed to make a modest recovery in later
years, while exchange rate movements would fluctuate from year to year.
The results from the worst-case scenario showed that under such highly adverse
conditions the net assets would fall to no lower than £1.6 billion and would
be at £2.5 billion by 31 December 2035. Dividend payments to shareholders
could continue to be paid through the utilisation of Capital Reserves.
Under a scenario based on the movements in income, inflation and valuations
over the ten year period that followed the financial crisis of 2008, net
assets would rise to £11.9 billion at 31 December 2035. Whilst a scenario
that used the movements in income, inflation and valuations in the ten years
following the 1970's oil crisis showed that net assets would rise to £13.1
billion by 31 December 2035.
The assumptions used for these tests purposefully did not take into account
that under such severe conditions the Board and Manager would have taken
further action to mitigate the impact. Furthermore, the tests were a
theoretical and illustrative scenario exercise, the assumptions for which are
extreme and highly unlikely. Their purpose was to help inform the Directors of
the Company's resilience under conditions so severe that they would impact
global economies, markets, companies and businesses alike. The tests help to
support the Board's assessment of the Company's long-term viability. The
results do not represent its views or give an indication of the likely
outcome.
Having considered its current position and the principal and emerging risks
that the Company faces and having applied stress tests under worst-case
scenarios that would severely impact global economies and markets alike, the
Board confirms that it has assessed the Company's prospects, to the extent
that it is able to do so, over the next ten years.
In concluding that ten years is an appropriate period for this assessment, the
Board considers that this approximates to a suitable period over which its
longer-term investment performance should be judged and the periods over which
it would typically commit to and benefit from its private equity investments.
The Board also took into consideration the long-term duration of the Company's
debt, the perceived viability of the Company's principal service providers,
the potential effects of expected regulatory changes and the potential threat
from competition. The Company's business model, strategy and the embedded
characteristics have helped define and maintain its stability over many
decades. The Board expects this to continue over many more years to come.
The Directors confirm therefore, that they have a reasonable expectation that
the Company will be able to continue in operation and meet its liabilities in
full over the coming ten years to 31 December 2035.
On behalf of the Board
Beatrice Hollond
Chairman
13 March 2026
Statement of Directors' Responsibilities in Respect of the Financial
Statements
In accordance with Chapter 4.1.12 of the Disclosure Guidance and
Transparency Rules the Directors confirm, that to the best of their knowledge:
· the financial statements, prepared in accordance with applicable
accounting standards, give a true and fair view of the assets, liabilities,
financial position and profit of the Company;
· the Strategic Report includes a fair review of the development and
performance of the business and the position of the Company, together with a
description of the principal risks and uncertainties that it faces; and
· in the opinion of the Directors the annual report and financial
statements, taken as a whole, are fair, balanced and understandable and
provide the information necessary for shareholders to assess the Company's
position and performance, business model and strategy.
On behalf of the Board
Beatrice Hollond
Chairman, 13 March 2026
Income Statement
for the year ended 31 December
Revenue Capital 2025 Revenue Capital 2024
Total
Total
£'000s £'000s
£'000s £'000s
£'000s £'000s
Gains on investments - 618,318 618,318 - 935,609 935,609
Exchange movements on foreign currency loans, cash balances and derivatives (190) (13,747) (13,937) (779) 5,003 4,224
Income 113,205 - 113,205 111,806 - 111,806
Management fees (5,098) (15,295) (20,393) (4,603) (13,811) (18,414)
Other expenses (4,603) (70) (4,673) (5,739) (79) (5,818)
Net return before finance costs and taxation 103,314 589,206 692,520 100,685 926,722 1,027,407
Finance costs (3,459) (10,377) (13,836) (3,433) (10,298) (13,731)
Net return before taxation 99,855 578,829 678,684 97,252 916,424 1,013,676
Taxation (13,649) (175) (13,824) (12,695) (1,222) (13,917)
Net return attributable to shareholders 86,206 578,654 664,860 84,557 915,202 999,759
Net return per share - basic (pence) 17.97 120.59 138.56 17.01 184.10 201.11
The total column of this statement is the profit and loss account of the
Company.
All revenue and capital items in the above statement derive from continuing
operations.
The net return attributable to shareholders is also the total comprehensive
income.
Statement of Changes in Equity
for the year ended 31 December 2025
Share Capital redemption reserve Capital reserves Revenue reserve Total shareholders' funds
capital
£'000s £'000s £'000s £'000s
£'000s
Balance brought forward 31 December 2024 140,455 122,307 5,299,520 116,240 5,678,522
Dividends paid - - - (76,949) (76,949)
Shares repurchased by the Company and held in treasury - - (95,388) - (95,388)
Net return attributable to shareholders - - 578,654 86,206 664,860
Balance carried forward 31 December 2025 140,455 122,307 5,782,786 125,497 6,171,045
for the year ended 31 December 2024
Share Capital redemption reserve Capital reserves Revenue reserve Total shareholders' funds
capital
£'000s £'000s £'000s £'000s
£'000s
Balance brought forward 31 December 2023 140,455 122,307 4,664,438 107,287 5,034,487
Dividends paid - - - (75,604) (75,604)
Shares repurchased by the Company and held in treasury - - (280,120) - (280,120)
Net return attributable to shareholders - - 915,202 84,557 999,759
Balance carried forward 31 December 2024 140,455 122,307 5,299,520 116,240 5,678,522
Balance Sheet
at 31 December
£'000s 2025 £'000s 2024
£'000s £'000s
Fixed assets
Investments 6,662,302 6,164,525
Current assets
Debtors 13,046 15,060
Cash and cash equivalents 84,594 91,147
97,640 106,207
Creditors: amounts falling due within one year
Other (7,649) (12,909)
Loans (36,673) -
(44,322) (12,909)
Net current assets 53,318 93,298
Total assets less current liabilities 6,715,620 6,257,823
Creditors: amounts falling due after more than one year
Loans (544,000) (578,726)
Debenture (575) (575)
(544,575) (579,301)
Net assets 6,171,045 5,678,522
Capital and reserves
Share capital 140,455 140,455
Capital redemption reserve 122,307 122,307
Capital reserves 5,782,786 5,299,520
Revenue reserve 125,497 116,240
Total shareholders' funds 6,171,045 5,678,522
Net asset value per share - prior charges at nominal value (pence) 1,300.62 1,176.82
Statement of Cash Flows
for the year ended 31 December
2025 2024
£'000s
£'000s
Cash flows from operating activities before dividends received and interest (38,009) (36,166)
paid
Dividends received 110,868 108,543
Interest paid (13,836) (13,731)
Cash flows from operating activities 59,023 58,646
Investing activities
Purchases of investments (4,333,580) (3,604,576)
Sales of investments 4,453,721 3,904,506
Other capital charges and credits (72) (78)
Cash flows from investing activities 120,069 299,852
Cash flows before financing activities 179,092 358,498
Financing activities
Dividends paid (76,949) (75,604)
Cash paid on share buybacks into treasury (96,228) (281,473)
Cash flows from financing activities (173,177) (357,077)
Net increase in cash and cash equivalents 5,915 1,421
Cash and cash equivalents at the beginning of the year 91,147 87,170
Effect of movement in foreign exchange (12,468) 2,556
Cash and cash equivalents at the end of the year 84,594 91,147
Represented by:
Cash at bank 68,425 73,488
Short-term deposits 16,169 17,659
Cash and cash equivalents at the end of the year 84,594 91,147
Notes
1. Net return per share
2025 2025 2024 2024
pence
£'000s
pence
£'000s
Total return 138.56 664,860 201.11 999,759
Revenue return 17.97 86,206 17.01 84,557
Capital return 120.59 578,654 184.10 915,202
Weighted average ordinary shares in issue, 479,847,623 497,113,190
excluding shares held in treasury - number
2. Dividends
The Directors have proposed a final dividend in respect of the year ended 31
December 2025 of 5.2p payable on 6 May 2026 to all shareholders recorded on
the register at close of business on 10 April 2026. The total dividends paid
and payable in respect of the financial year for the purposes of the income
retention test for Section 1159 of the Corporation Tax Act 2010 are set out
below.
3. Financial Risk Management
The Company is an investment company, listed on the London Stock Exchange, and
conducts its affairs so as to qualify in the UK as an investment trust under
the provisions of Section 1158 of the Corporation Tax Act 2010. In so
qualifying, the Company is exempted in the UK from corporation tax on capital
gains on its portfolio of investments.
The Company's objective is to secure long-term growth in capital and income
through a policy of investing primarily in an internationally diversified
portfolio of publicly listed equities, as well as unlisted securities and
Private Equity, with the use of gearing. In pursuing the objective, the
Company is exposed to financial risks which could result in a reduction of
either or both of the value of the net assets and the profits available for
distribution by way of dividend. These financial risks are principally related
to the market (currency movements, interest rate changes and security price
movements), liquidity and credit. The Board of Directors, together with the
Manager, is responsible for the Company's risk management. The Directors'
policies and processes for managing the financial risks are set out in (a),
(b) and (c) on the following pages.
The full details of financial risks are contained in Note 25 of the Annual
Report.
4. Going Concern
In assessing the going concern basis of accounting, being the period at least
12 months from the date the financial statements are issued, the Directors
have had regard to the guidance issued by the Financial Reporting Council.
They have also considered the Company's objective, strategy and investment
policy, the current cash position of the Company, the availability of
borrowings and compliance with covenants and the operational resilience of the
Company and its service providers.
More information on the Directors' assessment is provided in the Annual
Report.
5. Annual General Meeting
The annual general meeting will be held on Wednesday 29 April 2026 at 12.00
noon.
6. Annual Report and Accounts
This statement was approved by the Board on 13 March 2026. It is not the
Company's statutory accounts. The statutory accounts for the financial year
ended 31 December 2025 have been approved and audited and received an audit
report which was unqualified and did not include a reference to any matters to
which the auditors drew attention by way of emphasis without qualifying the
report. The statutory accounts for the financial year ended 31 December 2024
received an audit report which was unqualified and did not include a reference
to any matters to which the auditors drew attention by way of emphasis without
qualifying the report.
The Annual Report and Accounts will be posted to shareholders on or around 25
March 2026.
Columbia Threadneedle Investment Business Limited,
Company Secretary, 13 March 2026
For further information, please contact:
Jonathan Latter
For and on behalf of
Columbia Threadneedle Investment Business Limited
020 3530 6283
Neither the contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other website) is
incorporated into, or forms part of, this announcement.
Columbia Threadneedle Investment Business Limited
ENDS
A copy of the Annual Report and Accounts has been submitted to the National
Storage Mechanism and will shortly be available for inspection
at https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) .
The Annual Report and Accounts will also shortly be available on the Company's
website at www.fandc.com (http://www.fandc.com) where up to date
information on the Company, including daily NAV and share prices, factsheets
and portfolio information can also be found.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
or visit
www.rns.com (http://www.rns.com/)
.
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
. END FR FLFEIVFISLIR
Copyright 2019 Regulatory News Service, all rights reservedRecent news on F&C Investment Trust
See all newsREG - F&C Investment Trust - Net Asset Value(s)
AnnouncementREG - F&C Investment Trust - Total Voting Rights
AnnouncementREG - CT Asset Management - Net Asset Value(s)
AnnouncementREG - F&C Investment Trust - Net Asset Value(s)
AnnouncementREG - F&C Investment Trust - Transaction in Own Shares
Announcement