Foreign & Colonial Investment Trust

Now with quarterly dividends

21 January 2013

Foreign & Colonial Investment Trust (FRCL) is one of the largest and most liquid global equity trusts in the UK, with assets of c £2.5bn. It is highly diversified, with investments in more than 500 companies, across 30 countries. It pursues long-term growth in capital and income. It has a 42-year record of uninterrupted dividend growth and income seems likely to play a larger part in overall returns going forward. In general this reflects the paucity of growth opportunities across markets, but specifically it reflects FRCL’s on-going shift from non-yielding private equity investments towards higher yielding listed equities, as well as the prospect of lower funding costs on structural borrowing. Strong income reserves have allowed it to anticipate these portfolio shifts and the interim dividend, paid in September 2012, was rebased upwards by 33%. From February 2013 dividends will be paid quarterly. MORE »

Dividend growth

29 May 2012

Launched in 1886, Foreign & Colonial Investment Trust (FRCL) was the first global equity trust. Today it is one of the largest and most liquid trusts in the UK, with assets of c £2.3bn and managed by Jeremy Tigue since 1997. FRCL’s focus is growth rather than income, but it can boast a 41-year record of uninterrupted dividend growth. For the year ended 31 December 2011, FRCL paid a total annual dividend of 7.10p, providing annual growth of 5.2% and growth over 10 years of 115%, both appreciably above the rate of inflation. FRCL has significant exposure (c 18%) to a maturing portfolio of listed private equity funds that have supported capital performance over the past five years and will provide flexibility to invest in higher yielding listed equities as realisations are made. MORE »