REG - F&C Investment Trust - Half-year Report
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RNS Number : 4778T F&C Investment Trust PLC 01 August 2025
F&C INVESTMENT TRUST PLC
Unaudited Results for the half-year ended 30 June 2025
Legal Entity Identifier: 213800W6B18ZHTNG7371
Information disclosed in accordance with Disclosure Guidance and Transparency
Rule 4.2.2
1 August 2025
F&C Investment Trust PLC (the 'Company' or 'F&C') today announces its
results for the six months ended 30 June 2025.
· The Net Asset Value ('NAV') total return was 0.0%. This was behind
the return from the benchmark, the FTSE All-World Index, which returned +0.8%.
The NAV decreased to 1,210.8p from 1,219.6p at 31 December 2024.
· The share price total return was +0.8%.
The share price was 1,108.0p (31 December 2024: 1,108.0p).
· The Board aims to increase the total dividend again this year. The
first interim dividend of 3.8 pence for 2025 to be paid today, 1 August.
The Chairman, Beatrice Hollond, said:
"We continue to believe that our diversified approach creates more resilience
in terms of outcomes for shareholders."
Commenting on the markets, Paul Niven, Fund Manager of F&C, said:
"The opportunity set for investors within global equity markets should widen
beyond the recent stand-out performers. A broadening in market returns should
benefit our investment approach and we remain confident that we can continue
to deliver our investment objectives, to grow both capital and income for our
shareholders over the long term."
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 over 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
CHAIRMAN'S STATEMENT
Global equity markets posted a modest increase in sterling terms over the
first half of the year. Despite facing headwinds in the form of global tariffs
and escalating geopolitical tensions, the resilience of financial markets in
the face of such uncertainty has been notable. The Company produced a Net
Asset Value ('NAV') total return of 0.0%, a little below the return of +0.8%
from our benchmark, the FTSE All-World Index, while our share price total
return was +0.8%. Weakness in the US dollar negatively impacted the
sterling-based returns of our portfolio over the first six months of the year.
Our NAV per share ended the period at 1,210.8 pence compared with 1,219.6
pence at the end of 2024. The return from our investment portfolio over the
first half of the year, before costs and other effects, was 0.0%. The
Company's gearing (with debt at fair value) rose from 5.0% at the start of the
year to 5.2% at the end of the period. The Company's discount narrowed
slightly over the six months, from 9.2% to 8.5%.
As our share price discount to NAV remained relatively wide, we have continued
to buy back shares, albeit less than last year, with 1.35 million shares
bought back over the first half of 2025. This was modestly accretive to our
NAV total return. The Board remains committed to the use of share buybacks
both to enhance net asset value and to dampen discount volatility. We regard
the recent discount levels as unreflective of the strength of our investment
proposition. We have continued to pursue an active marketing programme which
aims to communicate the benefits of our offering for current and prospective
shareholders. The Board remains focused on good governance and long-term
sustainability.
The first half of 2025 has been characterised by significant geopolitical
uncertainty, with President Trump's April announcement, on 'Liberation Day',
of widespread tariffs on US trading partners representing a shock for markets.
The breadth and scale of proposed tariffs caught investors by surprise, as
they had begun the year with expectations of market-friendly deregulation and
tax cuts designed to stimulate US economic growth. While market conditions
stabilised following the announcement of a 90-day pause for those countries
that avoided retaliation, persistent uncertainty remained throughout the
second quarter, further heightened by conflict in the Middle East. Economic
and geopolitical uncertainty led to a substantial rise in equity market
volatility and contributed to weakness in the US dollar, which suffered its
worst first-half of the year since 1973, declining by 9.7% against sterling.
US equities materially lagged returns from non-US markets, with Europe a
standout performer, led by strong returns in the first quarter. Indeed, the
underperformance of the US equity market, relative to the rest of the world,
over the six-month period was one of the widest for decades. Divergence in
interest rate policy helped non-US markets, as the US Federal Reserve held
interest rates steady across four consecutive meetings, adopting a
data-dependent approach to assess the economic impact of the administration's
trade policies. Meanwhile, the Bank of England cut rates by 0.5% and the
European Central Bank by 1.0%.
Sentiment towards Europe also benefited from a significant shift in fiscal
policy orientation, particularly following the German election in February.
The incoming coalition's proposals to reform the constitutional debt brake to
accommodate higher defence spending, coupled with the European Commission's
initiative to exempt such expenditures from deficit calculations, represent a
notable evolution in the European fiscal framework with potentially
far-reaching implications for markets.
INCOME AND DIVIDENDS
We paid a third interim dividend of 3.60 pence per share for the year ended 31
December 2024 in February 2025 and a final dividend of 4.80 pence in May,
bringing a full year dividend of 15.60 pence. This was fully covered by
earnings of 17.01 pence per share and represented an increase of 6.1% on the
previous year.
Our net revenue return per share over the first six months of the year rose by
8.6% to 10.47 pence, compared to 9.64 pence over the corresponding period last
year. Sterling was gained against both the US Dollar in the first six months
of 2025 and was trading at a higher average level than in the first half of
2024 but the overall impact of currency movements detracted £1.3m from the
return. Special dividends totalled £1.1m, down from £1.2m in the first half
of 2024.
It remains the aspiration of the Board to continue the Company's track record
of delivering rises in dividends which exceed inflation over the long-term and
we retain a substantial revenue reserve to help meet this objective if
required. We have declared a first interim dividend for the current year of
3.8 pence per share to be paid on 1 August 2025. The Board plans to deliver
another rise in our total dividend for this year, which will be the 55th
consecutive annual rise.
THE BOARD
As explained in the last annual report, Edward Knapp has served as a Director
for nine years and therefore stepped down from the Board at the end of July.
We shall miss Edward's outstanding combination of investment, operational and
general management experience. His contributions to the Board's discussions on
strategy and risk have been particularly valuable.
Edward is replaced by Josh Bottomley, who will join the Board on 1 September.
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 (Global Head of Digital, Data
and Development), Google Inc. (Global Head, Display) and LexisNexis (Managing
Director).
OUTLOOK
Despite recent volatility and uncertainty introduced through tariff policy and
military conflict, the fundamental outlook for the global economy remains
relatively sound. While earnings expectations for developed markets have seen
downgrades, there are now signs that markets are expecting improving growth in
2026. This, coupled with expected cuts in interest rates, provides a
constructive backdrop for global equity markets.
Actions of the new US administration, coupled with relatively rich valuations
in US equities and the currency, have led to increasing discussion amongst
market participants over whether US outperformance, in economic and market
terms, will persist. Our portfolio holds a majority of its exposure in US
assets and so has a substantial weighting to both the US equity market and the
US dollar. Our Manager has, at the margin, been reducing US exposure in recent
months and we remain vigilant around the risk of further underperformance from
this region. Despite this, our Manager continues to see attractive
opportunities in terms of individual stocks within the US and other markets.
Indeed, our approach, which blends exposure across a range of stocks across
various regions which display positive growth, valuation, and/or quality
attributes creates a wider opportunity set for our portfolio than one which is
narrowly focused from a stylistic perspective. In addition, as demonstrated by
the consistency which has been delivered in our long-term returns, we continue
to believe that our diversified approach creates more resilience in terms of
outcomes for shareholders. Regardless of near-term risks and uncertainty, the
Board remains resolutely focused on long-term opportunities for the benefit of
our shareholders.
Beatrice Hollond
Chairman
31 July 2025
FUND MANAGER'S REVIEW
Global equity markets delivered modest gains overall in sterling terms during
the first half of the year, with weakness in the US dollar detracting from
returns on our US holdings. Global equity benchmarks gained +0.8%, though
regional performance diverged markedly. European markets and emerging markets
outperformed the US.
US underperformance contrasted with consensus expectations of ongoing US
'exceptionalism' under President Trump's administration. The tariff policies
of the new US administration created tremendous uncertainty with concern over
the potential impact on both growth and inflation. In addition, escalating
Middle Eastern tensions, culminating in strikes by Israel and the United
States against Iran, increased market volatility further, though these
hostilities subsequently experienced rapid de-escalation.
Contributors to total returns in first half of 2025 %
Portfolio return 0.0
Management fees (0.2)
Interest and other expenses (0.1)
Buybacks 0.0
Change in value of debt 0.0
Gearing/other 0.3
Net asset value total return* 0.0
Change in share price discount 0.8
Share price total return 0.8
FTSE All-World total return 0.8
*Debt at market value
Source: Columbia Threadneedle/State Street
While the threat of tariffs was a dominant theme, the sustainability of
government debt levels and the Moody's downgrade of US sovereign debt
amplified concerns over high US deficit levels just as the Trump
administration pushed for Congressional approval for legislation to extend
first-term tax reductions. Consequently, long-dated interest rates drifted
higher and, within the currency market, sterling appreciated against the US
dollar throughout the first half of the year, advancing from 1.25 to 1.37.
This dollar weakness was evident across other major currency pairs, as the
world's reserve currency retreated against both the Japanese Yen and the Euro.
Persistent above-target inflation in both the US and UK has necessitated a
more measured approach to monetary policy by central banks than investors had
hoped for. US Federal Reserve Chair Jerome Powell, despite pressure from the
President, has emphasised that the institution "can afford to be patient,"
noting the potential inflationary implications of proposed tariff policies.
Interestingly, immediate tariff-driven inflation pressure has yet to
materialise but remains a point of focus for investors.
Within equity markets, the "Magnificent Seven," in aggregate, delivered losses
(in sterling terms) over the first six months of the year but there was marked
dispersion in returns. Artificial Intelligence ('AI') was again a significant
driver of returns with the January launch of a model from Deepseek, a small
Chinese company with relatively limited resources, raising significant
concerns over whether recent expenditure by large technology firms would prove
unprofitable. In addition, with the prospect of a paradigm shift in terms of
the cost of AI production, those companies reliant on projects with high
capital expenditure were considered at risk of stalling momentum in product
demand. After a brief rout in technology stocks which saw Nvidia lose almost
$600 billion of market value in a single day, the stock ended up rising by
over 7% in sterling terms over the first half of the year as demand for its
chips remained robust. Meta also gained over the period, rising by over a
quarter in dollar terms, while Microsoft rose 8.1%. All the other Magnificent
Seven stocks posted losses for investors, with Amazon (-8.7%), Alphabet
(-14.8%) and Apple (-25.0%) all disappointing. Tesla produced a loss of over
28% for the six months, with Elon Musk's foray into politics being viewed as
an unwelcome diversion at a time when the company suffered from falling sales,
increasing competition and the potential reduction and withdrawal of
government subsidies.
Returns from our exposure in North America (-3.3%) lagged those of the
benchmark (-2.5%) over the first half. Our US large cap growth strategy
managed by JPMorgan Asset Management demonstrated relative resilience during
the first half of the year, returning -2.9% compared to the Russell 1000
Growth Index's -3.2% return. Overweight positions in select streaming
companies delivered positive performance, particularly Netflix (+37.2%) and
Spotify (+56.6%). Netflix's performance was underpinned by robust revenue
growth, driven by successful pricing adjustments and sustained subscriber
acquisition. Spotify achieved a notable milestone in January, recording its
first annual profit. Additionally, the underweight position in Apple (-25.0%)
proved advantageous as the company faced headwinds related to its substantial
iPhone manufacturing presence in China amid ongoing tariff uncertainties.
Within our value-oriented strategies, where market indices delivered returns
in line with growth benchmarks, we saw divergence in relative performance. Our
longstanding US value manager, Barrow Hanley, returned -6.7%, while the value
strategy managed by Columbia Threadneedle Investments fared better, posting a
-1.4% return against their benchmark Russell 1000 Value Index (-3.2%) during
the period. Barrow Hanley's position in Vertiv, a provider of data centre
cooling equipment, power solutions and technological infrastructure,
contributed positively to portfolio performance. These gains were, however,
offset by some significant stock detractors, notably UnitedHealth Group
(-43.1%). UnitedHealth's performance deteriorated following the company's
withdrawal of annual earnings guidance that coincided with reports of a
criminal investigation concerning potential Medicare fraud allegations. In the
portfolio managed by Columbia Threadneedle Investments, healthcare was,
however, a positive contributor with active positions in CVS Health (+43.5%)
and Tenet Healthcare (+27.3%) benefitting, although the position in Pacific
Gas & Electric (-36.7%) detracted from relative performance.
Our Global Income (+3.3%) and Global Enhanced (+4.0%) strategies both
delivered strong performance against the FTSE All-World Index benchmark
(+0.8%). Global Income, which delivers a portfolio with an above market
dividend, held a position in NRG Energy (+63.8%) which benefitted from the
increased electricity demand from data centres to fuel AI usage. The company
further strengthened its position by announcing the acquisition of eighteen
gas-fired power plants. Our Global Focus (-0.1%) strategy was modestly behind
its benchmark over the period. Howmet Aerospace (+55.6%), the US listed
manufacturer of engineered metal products, was a standout performer after
delivering strong financial returns and with robust demand from end markets.
Our European (including the UK) strategy was the strongest absolute performer
over the first half of the year, returning +9.2%, although the strategy did
lag its benchmark return of +12.3%. The main contributors to positive
performance were in the financials sector, with stocks such as National Bank
of Greece (+53.1%) and Bank of Ireland (+46.3%) contributing positively. The
position in Pearson (-15.3%) detracted from returns, with the education
provider citing tighter immigration enforcement in its key markets as a driver
for lower test volumes.
Our focused Japanese strategy (+4.7%) outperformed its benchmark (+2.6%).
Nintendo (+50.5%) emerged as a standout contributor, achieving record sales
with its new Switch 2 console, the company's first new console release in
eight years. Conversely, our position in Recruit Holdings (-23.6%), a human
resources technology company, detracted from performance after the company's
first quarter earnings fell short of expectations.
Emerging markets outperformed developed equities over the first half and, in
the early part of the year, we divested in entirety from assets managed by
Columbia Threadneedle Investments and transferred our exposure to Invesco, who
are now managing a dedicated emerging markets strategy for us. We chose
Invesco as manager for these assets after an extensive and thorough selection
process. Our emerging markets holdings produced a strong performance,
returning +6.1% in the first half of the year and outperforming the
benchmark's +2.7% gain. Telefonica Brasil (+43.0%) performed particularly well
within the strategy, as the telecommunications group continues to expand its
5G services across Brazil.
Our private equity exposure (-3.8%) lagged listed equities during the period
and these remain challenging conditions for exits. While underperforming
listed holdings in the first half of the year, we maintain conviction in these
long-term investments. Our private equity holdings are well-diversified across
regions, sectors, and company lifecycle stages. The commitments sourced and
selected by Columbia Threadneedle Investments, focused on middle-market buyout
opportunities, demonstrated resilience amid geopolitical headwinds, returning
+2.4% over the quarter. Outside of our core holdings in mid-market funds and
co-investments, the Pantheon Future Growth programme, which focuses on venture
capital and growth equity, declined by 7.8%, largely due to the weakening US
dollar.
CURRENT MARKET PERSPECTIVE
Despite discussions on the end of American exceptionalism, the US is still
forecast to outpace all other G7 economies in growth terms this year and next.
While US equities continue to trade at higher valuation multiples than
international peers, their superior earnings growth has historically served to
justify this premium rating and, in the near term, US earnings will likely
outpace most other developed markets. Nonetheless, we have been expecting a
broadening in market returns within equities. Further cuts in interest rates
are anticipated in both the UK and Europe and there is the prospect of
structurally higher fiscal expenditure in the Eurozone, which may boost growth
prospects there.
While we have been reducing, at the margin, some of our US weighting through
sales of both equities and the dollar, reports of the demise of US are likely
exaggerated. Many of the large US corporates continue to demonstrate
impressive competitive positions within segments of the market, such as AI,
which will continue to see structural growth. At the margin, however, the
opportunity set for investors within global equity markets should widen beyond
the recent stand-out performers.
For emerging markets, the weaker US dollar has provided a strong tailwind in
the first half of 2025 and the prospect of interest rate cuts in the US
provides further optimism for prospective returns. Indeed, despite the risks
surrounding tariffs, after an extended period of underperformance and stagnant
domestic earnings it may be that emerging markets equities offer attractive
relative returns, supported by potential further Chinese stimulus measures,
global interest rate cuts and attractive valuations.
As always, the risks remain numerous. Tariff policy remains uncertain, and a
multitude of different events could cause a flight from risk assets and
equities. Despite this, we remain optimistic over prospective returns over the
longer-term. AI should deliver improvements in productivity which will accrue
to owners of capital and benefit the global growth outlook. The risk of a US
recession in the near-term is currently low and interest rates look set to be
cut further. A broadening in market returns should benefit our investment
approach and we remain confident that we can continue to deliver our
investment objectives, to grow both capital and income for our shareholders
over the long term.
Paul Niven
Fund Manager
31 July 2025
Weightings, stock selection and performance in each investment portfolio
strategy and underlying geographic exposure versus index as at 30 June 2025
Investment portfolio strategy Our portfolio strategy weighting Underlying geographic exposure((1)) Benchmark weighting Our strategy performance in sterling Net index performance in sterling
% % % six months to 30 June 2025 six months to 30 June 2025
% %
39.8 63.1 65.6 -3.3 -2.5
North America
9.0 19.8 14.9 9.2 12.3
Europe inc. UK
4.3 4.3 5.7 4.7 2.6
Japan
4.8 9.3 10.1 6.1 2.7
Emerging Markets
- 3.5 3.7 - 9.6
Developed Pacific
30.9 - - 2.3 0.8
Global Strategies((2))
11.2 - - -3.8 -
Private Equity((3))
Source: Columbia Threadneedle/State Street
((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
Enhanced and Global Focus.
((3)) Includes the holdings in Schiehallion and Syncona.
UNAUDITED CONDENSED INCOME STATEMENT
Half year ended 30 June 2025 Half year ended 30 June 2024
Notes Revenue Capital Total Revenue Capital Total
£'000s £'000s £'000s £'000s £'000s £'000s
(Losses)/gains on investments and derivatives - (31,641) (31,641) - 611,228 611,228
Exchange (losses)/gains (235) (8,179) (8,414) (322) 1,174 852
3 Income 64,685 - 64,685 64,061 - 64,061
4 Fees and other expenses (4,945) (7,155) (12,100) (5,682) (6,768) (12,450)
Net return before finance costs and taxation 59,505 46,975 12,530 58,057 605,634 663,691
4 Interest payable and similar charges (1,725) (5,175) (6,900) (1,710) (5,131) (6,841)
Net return on ordinary activities before taxation 57,780 (52,150) 5,630 56,347 600,503 656,850
5 Taxation on ordinary activities (7,294) (109) (7,403) (7,704) (460) (8,164)
6 Net return attributable to shareholders 50,486 (52,259) (1,773) 48,643 600,043 648,686
6 Net return per share - basic (pence) 10.47 (10.84) (0.37) 9.64 118.85 128.49
The total column is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing
operations.
UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY
Capital Total
Share redemption Capital Revenue shareholders'
capital reserve reserves reserve funds
Notes Half year ended 30 June 2025 £'000s £'000s £'000s £'000s £'000s
Balance brought forward 140,455 122,307 5,299,520 116,240 5,678,522
31 December 2024
Movements during the half year ended 30 June 2025
11 Shares repurchased by the Company and held in treasury
- - (14,999) - (14,999)
7 Dividends paid - - - (40,508) (40,508)
Return attributable to shareholders - - (52,259) 50,486 (1,773)
Balance carried forward 140,455 122,307 5,232,262 126,218 5,621,242
30 June 2025
Capital Total
Share redemption Capital Revenue shareholders'
capital reserve reserves reserve funds
Notes Half year ended 30 June 2024 £'000s £'000s £'000s £'000s £'000s
Balance brought forward
31 December 2023 140,455 122,307 4,664,438 107,287 5,034,487
Movements during the half year ended 30 June 2024
Shares repurchased by the Company and held in treasury
- - (101,160) - (101,160)
7 Dividends paid - - - (58,010) (58,010)
Return attributable to shareholders - - 600,043 48,643 648,686
Balance carried forward 140,455 122,307 5,163,321 97,920 5,524,003
30 June 2024
Capital redemption reserve £'000s Total shareholders' funds
Share capital Capital reserves Revenue reserve £'000s
£'000s £'000s £'000s
Notes Year ended 31 December 2024
Balance brought forward
31 December 2023 140,455 122,307 4,664,438 107,287 5,034,487
Movements during the year ended 31 December 2024
Shares repurchased by the Company and held in treasury - - (280,120) - (280,120)
7 Dividends paid - - - (75,604) (75,604)
Return attributable to shareholders - - 915,202 84,557 999,759
Balance carried forward 140,455 122,307 5,299,520 116,240 5,678,522
31 December 2024
UNAUDITED CONDENSED BALANCE SHEET
31 December 2024
Notes 30 June 2025 30 June 2024 £'000s
£'000s £'000s
Fixed assets
8 Investments 6,111,869 5,995,998 6,164,525
Current assets
Debtors 27,968 58,643 15,060
14 Cash and cash equivalents 82,670 109,274 91,147
Total current assets 110,638 167,917 106,207
Creditors: amounts falling due within one year
10 Other (20,713) (59,728) (12,909)
Total current liabilities (20,713) (59,728) (12,909)
Net current assets 89,925 108,189 93,298
Total assets less current liabilities 6,201,794 6,104,187 6,257,823
Creditors: amounts falling due after more than one year
9, 14 Loans (579,977) (579,609) (578,726)
9, 14 Debenture (575) (575) (575)
(580,552) (580,184) (579,301)
Net assets 5,621,242 5,524,003 5,678,522
Capital and reserves
11 Share capital 140,455 140,455 140,455
Capital redemption reserve 122,307 122,307 122,307
Capital reserves 5,232,262 5,163,321 5,299,520
Revenue reserve 126,218 97,920 116,240
12 Total shareholders' funds 5,621.242 5,524,003 5,678,522
12 Net asset value per ordinary share 1,168.20 1,105.66 1,176.82
- prior charges at nominal value (pence)
UNAUDITED CONDENSED STATEMENT OF CASH FLOWS
Half year ended Half year ended
30 June 30 June Year ended
2025 2024 31 December
2024
Notes £'000s £'000s £'000s
13 Cash flows from operating activities before dividends received and interest (20,187) (17,350) (36,166)
paid
Dividends received 61,732 59,825 108,543
Interest paid (6,925) (6,866) (13,731)
Cash flows from operating activities 34,620 35,609 58,646
Investing activities
Purchases of Investments (2,360,264) (1,541,642) (3,604,576)
Sales of Investments 2,380,347 1,666,308 3,904,506
Other capital charges and credits (41) (41) (78)
Cash flows from investing activities 20,042 124,625 299,852
Cash flows before financing activities 54,662 160,234 358,498
Financing activities
Equity dividends paid (40,508) (40,007) (75,604)
Cash flows from share buybacks for treasury shares (14,167) (98,190) (281,473)
Cash flows from financing activities (54,675) (138,197) (357,077)
14 Net (decrease)/increase in cash and cash equivalents (13) 22,037 1,421
Cash and cash equivalents at the beginning of the period 91,147 87,170 87,170
14 Effect of movement in foreign exchange (8,464) 67 2,556
Cash and cash equivalents at the end of the 82,670 109,274 91,147
period
Represented by:
Cash at bank 67,504 86,095 73,488
Short term deposits 15,166 23,179 17,659
Cash and cash equivalents at the end of the 82,670 109,274 91,147
period
UNAUDITED NOTES ON THE CONDENSED ACCOUNTS
1 RESULTS
The results for the six months to 30 June 2025 and 30 June 2024 constitute
non-statutory accounts within the meaning of Section 434 of the Companies Act
2006. The latest published accounts which have been delivered to the Registrar
of Companies are for the year ended 31 December 2024; the report of the
Auditors thereon was unqualified and did not contain a statement under Section
498 of the Companies Act 2006. The condensed financial statements shown for
the year ended 31 December 2024 are an extract from those accounts.
2 ACCOUNTING POLICIES
(a) Basis of preparation
These condensed financial statements have been prepared on a going concern
basis in accordance with the Companies Act 2006, Interim Financial Reporting
(FRS 104) and the Statement of Recommended Practice 'Financial Statements of
Investment Trust Companies and Venture Capital Trusts' (SORP), issued in July
2022.
The accounting policies applied for the condensed set of financial statements
are set out in the Company's annual report for the year ended 31 December
2024.
(b) Use of judgements, estimates and assumptions
The presentation of the financial statements in accordance with accounting
standards requires the Board to make judgements, estimates and assumptions
that affect the accounting policies and reported amounts of assets,
liabilities, income and expenses. Estimates and judgements are continually
evaluated and are based on perceived risks, historical experience,
expectations of plausible future events and other factors. Actual results may
differ from these estimates.
The area requiring the most significant judgement and estimation in the
preparation of the financial statements is accounting for the value of
unquoted investments.
The policy for valuation of unquoted securities is set out in note 8 and
further information on Board procedures is contained in the Report of the
Audit Committee and note 25(d) of the Report and Accounts as at 31 December
2024. The choice to use the March quarter end valuations and apply a roll
forward process to incorporate any known transactions and material events is a
judgement made each year for the indirect investments. The valuations as at 30
June are not generally available before approval of the half year report.
Material judgements were applied to the valuation of the Company's direct
investment, Inflexion Strategic Partners. This investment was valued using an
earnings method multiplied by an average of European listed comparable
companies multiple (where the judgement of which comparable companies to
select and what discounts to apply are subjective). The fair value of unquoted
(Level 3) investments, as disclosed in note 8, represented 10.7% of total
investments at 30 June 2025. Under foreseeable market conditions the
collective value of such investments may rise or fall in the short term by
more than 10%, in the opinion of the Directors. A fall of 10% in the value of
the unlisted (Level 3) portfolio at the half year would equate to £65m or
1.2% of net assets and a similar percentage rise would equate to a similar
increase in net assets.
3 INCOME
Half year ended Half year ended
30 June 2025 30 June 2024
£'000s £'000s
Income comprises:
UK dividends 4,972 4,340
UK bond income - 1,205
Overseas dividends 59,191 57,673
Interest on short-term deposits and other income 522 843
Income 64,685 64,061
Included within income is £1.1m (30 June 2024: £1.2m; 31 December 2024:
£3.6m) of special dividends classified as revenue in nature.
The value of special dividends treated as capital in nature is £0.2m (30 June
2024: £0.2m; 31 December 2024: £0.2m).
4 FEES AND OTHER EXPENSES AND INTEREST PAYABLE
Half year ended Half year ended
30 June 2025 30 June 2024
£'000s £'000s
Fees and other expenses 12,100 12,450
Interest payable and similar charges 6,900 6,841
Total 19,000 19,291
Fees and other expenses comprise:
Allocated to Revenue Account
- Management fees payable directly to the Manager* 2,370 2,242
- Other expenses 2,575 3,440
4,945 5,682
Allocated to Capital Account
- Management fees payable directly to the Manager* 7,114 6,725
- Other expenses 41 43
7,155 6,768
Interest payable and similar charges comprise:
Allocated to Revenue Account 1,725 1,710
Allocated to Capital Account 5,175 5,131
* Including reimbursement in respect of services provided by sub-managers
Since 1 January 2025 the Manager's remuneration has been paid at the rate of
0.30% per annum of the market capitalisation of the Company up to £3.5
billion, 0.25% between £3.5 billion and £6.0 billion and 0.20% above £6.0
billion, calculated at each month end date on a pro-rata basis. Prior to this
the Manager's remuneration was based on a fee of 0.30% per annum of the market
capitalisation of the Company up to £4.0 billion and 0.25% above £4.0
billion calculated at each month end date on a prorata basis. The fee is
adjusted for fees earned by the Manager in respect of investment holdings
managed or advised by the Manager or other members of the Columbia
Threadneedle Investments Group. Variable fees payable in respect of third
party sub-managers are also reimbursed. The services provided by the Manager
remain unchanged from those disclosed within the accounts for the year ended
31 December 2024. The level of variable fees payable in respect of third party
sub-managers and private equity managers remain unchanged since the year end.
5 TAXATION
The taxation charge of £7,403,000 (30 June 2024: £8,164,000) relates to
irrecoverable overseas taxation and Indian tax on capital gains.
6 NET RETURN PER SHARE
Net return per ordinary share attributable to ordinary shareholders reflects
the overall performance of the Company in the period. Net revenue recognised
in the first six months is not indicative of the total likely to be received
in the full accounting year.
Half year ended Half year ended Half year ended Half year ended
30 June 2025 30 June 2025 30 June 30 June
pence £'000s 2024 2024
pence £'000s
Revenue return 10.47 50,486 9.64 48,643
Capital return (10.84) (52,259) 118.85 600,043
Total return (0.37) (1,773) 128.49 648,686
Weighted average ordinary shares in issue excluding treasury shares (see note 481,981,060 504,853,464
11)
7 DIVIDENDS
Half year ended 30 June 2025 Half year ended 30 June 2024 Year ended 31 December 2024
£'000s £'000s £'000s
Dividends paid and payable on ordinary shares
Register date Payment date
2023 Third interim of 3.40p 4-Jan-2024 1-Feb-2024 - 17,325 17,325
2023 Final of 4.50p 12-Apr-2024 9-May-2024 - 22,682 22,682
2024 First interim of 3.60p 28-Jun-2024 1-Aug-2024 - 18,003 18,003
2024 Second interim of 3.60p 4-Oct-2024 1-Nov-2024 - - 17,594
2024 Third interim of 3.60p 3-Jan-2025 3-Feb-2025 17,371 - -
2024 Final of 4.80p 11-Apr-2025 7-May-2025 23,137 - -
40,508 58,010 75,604
The Directors have declared a first interim dividend in respect of the year
ending 31 December 2025 of 3.80p per share, payable on 1 August 2025 to all
shareholders on the register at close of business on 4 July 2025. The amount
of this dividend will be £18,281,000 based on 481,085,404 shares in issue on
the ex-dividend date of 3 July 2025.
8 INVESTMENTS
Fair value hierarchy
The Company's Investments as disclosed in the balance sheet are valued at fair
value.
The fair value as at the reporting date has been estimated using the following
fair value hierarchy:
Level 1 includes investments and derivatives listed on any recognised stock
exchange or quoted on the AIM market in the UK and quoted open-ended funds.
Level 2 includes investments for which the quoted price has been suspended,
forward exchange contracts and other derivative instruments.
Level 3 includes investments in private companies or securities, whether
invested in directly or through pooled Private Equity vehicles, for which
observable market data is not specifically available.
The analysis of the valuation basis for financial instruments based on the
hierarchy is as follows:
30 June 2025 30 June 2024 31 December 2024
£'000s £'000s £'000s
Level 1 5,459,080 5,392,972 5,527,934
Level 3 652,789 603,026 636,591
Total valuation of investments 6,111,869 5,995,998
6,164,525
With respect specifically to investments in Private Equity, whether through
funds or partnerships, the Directors rely on the latest available unaudited
quarterly valuations of the underlying unlisted investments as supplied by the
investment advisers or managers of those funds or partnerships. The Directors
regularly review the principles applied by the managers to those valuations to
ensure they are in compliance with the principal accounting policies as stated
in the year end report and accounts.
No investments held at 30 June 2025, 30 June 2024 or 31 December 2024 were
valued in accordance with level 2.
9 LOANS AND DEBENTURE
31 December 2024
30 June 2025 30 June 2024 £'000s
£'000s £'000s
Loans falling due after more than one year 579,977 579,609 578,726
Debenture falling due after more than one year 575 575 575
Comprising:
£544m £544m £544m
Sterling denominated loan, falling due after more one year
Euro denominated loan, falling due after more than one year €42m €42m €42m
4.25% perpetual debenture stock £0.575m £0.575m £0.575m
10 OTHER CREDITORS FALLING DUE WITHIN ONE YEAR
30 June 2025 30 June 2024 31 December 2024
£'000s £'000s £'000s
Cost of ordinary shares repurchased 2,180 5,670 1,348
Investment creditors 12,916 27,665 5,667
Management fee payable to the Manager 2,729 3,748 2,647
Provision for Capital Gains Taxation on Indian Investments
578 1,933 727
Dividend payable - 18,003 -
Other accrued expenses 2,310 2,709 2,520
20,713 59,728 12,909
11 SHARE CAPITAL
Nominal value of shares in issue
Number Number of shares entitled to dividend Total £'000s
of shares number of shares in issue
held in
Equity share capital treasury
Ordinary shares of 25p each
Balance at 31 December 2024 79,286,468 482,532,548 561,819,016 140,455
Shares repurchased by the Company and held in treasury 1,345,627 (1,345,627) - -
Balance at 30 June 2025 80,632,095 481,186,921 561,819,016 140,455
1,345,627 shares were repurchased during the six months to 30 June 2025 at a
cost of £14,999,000. Shares held in treasury have no voting rights and no
right to dividend distributions and are excluded from the calculations of
earnings per share and net asset value per share.
12 NET ASSET VALUE PER ORDINARY SHARE 30 June 2025 30 June 2024 31 December 2024
Net asset value per share -pence 1,168.20 1,105.66 1,176.82
Net assets attributable at end of period - £'000s 5,621,242 5,524,003 5,678,522
Ordinary shares of 25p in issue at end of period excluding shares held in 481,186,921 499,613,015
treasury - number
482,532,548
Net asset value per share (with the debenture stock and long-term loans at
market value) as at 30 June 2025 was 1,210.79p (30 June 2024: 1,145.47p and
31 December 2024: 1,219.64p). The market value of debenture stocks as at 30
June 2024 was £429,000 (30 June 2024 and 31 December 2024: £429,000). The
market value of the long-term loans as at 30 June 2025 was £375,199,000 (30
June 2024: £380,845,000 and 31 December 2024: £372,235,000) based on the
equivalent benchmark gilts or relevant commercially available current debt.
13 RECONCILIATION OF NET RETURN BEFORE TAXATION TO CASH FLOWS FROM OPERATING
ACTIVITIES
Half year ended Half year ended
30 June 2025 30 June 2024 Year ended
£'000s £'000s 31 December 2024
£'000s
Net return on ordinary activities before taxation 5,630 656,850 1,013,676
Adjust for non-cash flow items, dividend income and interest expense:
Losses/(gains) on investments 31,641 (611,228) (935,609)
Exchange losses/(gains) 8,414 (852) (4,224)
Non-operating expense of a capital nature 41 43 79
(increase)/decrease in other debtors (87) 129 169
(Decrease)/increase in creditors (106) 1,268 (40)
Dividends receivable (64,163) (62,013) (108,917)
Interest payable 6,901 6,841 13,731
Tax on overseas income and Indian Capital Gains Tax (8,458) (8,388) (15,031)
(25,817) (674,200) (1,049,842)
Cash flows from operating activities (before dividends received and interest
paid)
(20,187) (17,350) (36,166)
14 ANALYSIS OF CHANGES IN NET DEBT
Forward Exchange Contracts
£'000s
Cash Long term loans Debenture Total
£'000s £'000s £'000s £'000s
91,147 (575) (488,154)
Opening net debt as at 31 December 2024
(578,726) -
Cash-flows:
Net movement in cash and cash equivalents
(13) - - - (13)
Non-cash:
Effect of foreign exchange movements (8,464) (1,251) - 1,301 (8,414)
Closing net debt as at 30 June 2025
82,670 (579,977) (575) 1,301 (496,581)
15 GOING CONCERN
In assessing the going concern basis of accounting the Directors have had
regard to the guidance issued by the Financial Reporting Council. They have
also considered the Company's objective, strategy and policy; current cash
position; the availability of loan finance; compliance with all financial loan
and private placement covenants; and the operational resilience of the Company
and its service providers. It is recognised that the Company is mainly
invested in readily realisable, globally listed securities that can be sold,
if necessary, to repay indebtedness.
Based on this information and their knowledge and experience of the Company's
portfolio and stockmarkets, the Directors believe that the Company has the
ability to meet its financial obligations as they fall due for a period of at
least twelve months from the date of approval of these financial statements.
Accordingly, these financial statements have been prepared on a going concern
basis.
STATEMENT OF PRINCIPAL AND EMERGING RISKS
The Company's principal and emerging risks are described in detail under the
heading 'Principal and Emerging Risks' within the Strategic Report in the
Company's annual report for the year ended 31 December 2024. They have been
identified as: Unsatisfactory Investment Performance; Geopolitical Actions;
Service Delivery Failure; Discount; Cybercrime; Loss of Key Person; Failure to
Transition to Net Zero; Disruptive Technology and Responsible Investment
Disclosure.
In the view of the Board, there have not been any material changes to the
fundamental nature of these risks and they are applicable to the remainder of
the financial year.
DIRECTORS' STATEMENT OF RESPONSIBILITIES IN RESPECT OF THE HALF YEAR FINANCIAL
REPORT
In accordance with Chapter 4 of the Disclosure Guidance and Transparency
Rules, the Directors confirm that to the best of their knowledge:
· the condensed set of financial statements has been prepared in
accordance with applicable UK Accounting Standards on a going concern basis
and gives a true and fair view of the assets, liabilities, financial position
and net return of the Company;
· the half year report includes a fair review of the important
events that have occurred during the first six months of the financial year
and their impact on the financial statements;
· the Statement of Principal and Emerging Risks shown above is a
fair review of the principal and emerging risks for the remainder of the
financial year; and
· the half year report includes a fair review of the related party
transactions that have taken place in the first six months of the financial
year.
On behalf of the Board
Beatrice Hollond
Chairman
31 July 2025
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,
Company Secretary
ENDS
A copy of the half report will shortly be submitted to the National Storage
Mechanism and will be available for inspection at www.fca.org.uk
The half year report will be posted to shareholders and made available on the
internet at www.fandc.com (http://www.fandc.com) shortly. Copies may be
obtained during normal business hours from the Company's Registered Office,
Cannon Place, 78 Cannon Street, London EC4N 6AG.
Columbia Threadneedle Investment Business Limited
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