Describing itself as cautiously managed, F&C is the UK’s oldest investment trust and was established in 1868. It aims to appeal to those looking for their first investment or a core option for their portfolio. The trust has £3.8 billion of assets under management with low annual running costs (0.65%) and well-diversified portfolio, holding more than 500 companies across 35 countries.

Paul Niven has been its manager since 2014, when BMO Asset Management bought the F&C funds business. Niven is responsible for the asset allocation and level of gearing. He divides the portfolio into a range of global and regional strategies. Some of these, notably US equities and private equity, are subcontracted to external managers. Niven is permitted to have up to 20% exposure to private equity. Around 60% of the trust is held in US shares.

Besides its long-term growth objective, the trust has a 49-year history of annual dividend increases. It yields around 2% and pays dividends quarterly.

October 2020