Why Is F&C Investment Trust Plc Up Today?

F&C Investment Trust Plc (LSE:FCIT) shares rose 0.29% to 340.2p today, a gentle gain for one of the UK's largest and longest-established global investment trusts.

The trust's latest half-year update, covering the six months to 30 June 2026, showed a net asset value total return of 12.4%, just behind the 12.6% return of its benchmark, the FTSE All-World Index. Net asset value per share rose from 335.84p at the end of 2025 to 375.18p, restated for the four-for-one share split completed in May.

Today's modest advance therefore reflects steady investor interest in a diversified global portfolio rather than a single company-specific event.

About F&C Investment Trust Plc

F&C Investment Trust Plc is a UK-listed investment trust that aims to provide Long-term Growth in both Capital and income by investing in a globally diversified portfolio.

It is managed by Columbia Threadneedle Investments, with Paul Niven as Fund Manager, and has a history stretching back well over a century.

The portfolio combines listed strategies across North America, Europe including the UK, Japan and emerging markets with a dedicated allocation to private company investments, giving shareholders access to a broad range of opportunities through a single holding.

As a London-listed investment company, LSE:FCIT issues a fixed number of shares that trade on the stock market, so the share price can sit above or below the underlying net asset value depending on investor demand.

Key Reasons Behind Today's Move

Today's 0.29% increase is small and consistent with the steady trading pattern often seen in large investment trusts.

The shares of an investment trust usually track the value of the underlying portfolio and the level of the discount or premium to net asset value. Movements in global markets, technology shares and currencies therefore have a direct bearing on sentiment towards LSE:FCIT.

Investors may also be reacting to the trust's continued progress on its Dividend and to the Leadership changes completed over the summer.

Half-Year 2026 Performance

In the first half of 2026, the trust delivered a net asset value total return of 12.4%, compared with 12.6% for the FTSE All-World Index. The prior-year first-half return was 0.0% against 0.8% for the benchmark.

The chair noted that positive returns were delivered from all of the trust's listed strategies, and that several of them outperformed their benchmarks.

Overall returns were held back by underweight positions in a small number of semiconductor and memory-related stocks. Their rising weights in the index added disproportionately to benchmark returns.

The trust also reported encouraging gains from its private company investments.

The prior-year comparison is worth noting. A flat first half in 2025 was followed by a full-year net asset value gain of 11.6%, and the 12.4% return in the first half of 2026 suggests the trust has carried that momentum forward.

Net asset value per share of 375.18p at 30 June 2026 compares with 335.84p at 31 December 2025, both restated for the four-for-one share split completed in May.

Full-Year 2025 Results Recap

For the year ended 31 December 2025, net asset value total return was 11.6%, while the share price total return was 14.6%, ahead of the 14.2% return of the FTSE All-World Index.

Net Assets were £6,171.0m at the year end. The discount to net asset value narrowed from 9.2% to 6.8% over the year, having ranged between 3.6% and 13.8%.

Ongoing charges were 0.45%, unchanged from 2024, which remains a competitive cost level for a trust of this scale.

During 2025 the trust bought back 8.1m shares, around 1.7% of its issued share capital, helping to support the share price relative to net asset value.

Portfolio Positioning

At the end of 2025, North America represented 39.1% of the portfolio strategy weighting, compared with a benchmark weighting of 65.2%. Europe including the UK was 8.6%, Japan 4.4% and emerging markets 6.1%.

A further 30.4% was allocated to global strategies and 11.4% to private company investments.

This deliberately diversified approach means returns can differ from the index, particularly when a narrow group of large US technology names leads the market.

The trust's approach is to combine a range of listed strategies with an allocation to private company investments, aiming to reduce reliance on any single style or region.

Because the benchmark is heavily weighted to North America, a lower allocation there is a conscious decision that can help when leadership broadens, but may lag when the largest US companies dominate returns.

Dividend Progress

The trust aims to grow its dividend over time. For 2025, the dividend was 16.6p per share before the share split, up 6.4%, including a final dividend of 5.2p.

For 2026, a first Interim Dividend of 0.99p per share has been declared on the post-split share count, and the board aims to increase the total dividend for the year.

Income is a secondary objective to capital growth, but a rising dividend remains an important part of the trust's appeal.

The dividend increase of 6.4% in 2025 reflects the board's focus on growing income for shareholders over time.

Understanding the Discount and Buybacks

Investment trusts can trade at a discount to net asset value, and managing that gap is an important part of board oversight.

In 2025 the discount averaged 7.9% and ended the year at 6.8%, a clear improvement from 9.2% at the start of the year. The 8.1m shares repurchased during the year were a supporting factor.

A narrower discount can add to Shareholder returns on top of the underlying portfolio performance, although it can also widen again if market sentiment weakens.

Leadership and Governance

Beatrice Hollond retired from the board on 31 July 2026. James Williams, previously an independent non-executive director, became chair on 1 August 2026.

Josh Bottomley joined the board in September 2025, adding to its mix of experience.

A smooth transition of the chair is helpful for continuity of strategy and shareholder communication.

Balance Sheet and Gearing

Effective gearing, measured with Debt at par, fell to 8.0% at the end of 2025 from 8.6% a year earlier. Total borrowings were £581.2m.

Gearing allows the trust to invest more than its net assets, which can amplify returns in rising markets and losses in falling markets.

The trust's net assets of £6,171.0m at the end of 2025 make it one of the largest investment trusts in the UK market, which supports Liquidity for shareholders and spreads fixed costs over a large asset base.

Growth Catalysts

The chair has pointed to a broadening opportunity set beyond past market leaders, which could benefit diversified strategies if market leadership widens.

Continued growth in artificial intelligence infrastructure spending may support parts of the portfolio, while private company investments offer exposure to businesses not available on public markets.

The May share split also made the shares more accessible to a wider range of investors, and continued Buybacks can help manage the discount.

Risks to Monitor

Global markets remain exposed to geopolitical shocks, including Volatility linked to the conflict involving Iran, which caused significant swings in the first half of 2026.

Returns have been concentrated in a narrow group of stocks linked to planned AI infrastructure spending. The trust's underweight stance in some of these names could weigh on relative performance if that trend persists.

Other risks include currency movements, Interest Rate changes, the valuation of private company holdings and the possibility of the discount widening.

Conclusion

F&C Investment Trust Plc shares rose 0.29% to 340.2p today.

The trust has delivered a 12.4% net asset value total return in the first half of 2026, maintained low ongoing charges of 0.45% and continued to pursue a rising dividend while diversifying across regions, strategies and private companies.

Future moves in LSE:FCIT are likely to depend on global market direction, the performance of its private company investments, the discount to net asset value and progress under its new chair.