F&C trust beats benchmark amid 'eventful' times

F&C trust beats benchmark amid 'eventful' times

F&C's Managed Portfolio trust has reported an increase in its net asset value against a backdrop of what it said has been a tumultuous time for UK investments.

The trust reported a 2 per cent increase in net asset value for the income shares and 6.3 per cent for the growth shares for the six months to the end of November 2017, against a benchmark of 0.2 per cent. 

Richard Martin, the trust's chairman, said that the past six months had been "eventful",  particularly in the context of the political environment in the UK.

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“Against this background it is encouraging that both portfolios were ahead of the FTSE All-Share Index over the period. This maintains their long term record of strong performance,” he said.

The trust said that its net revenue for the six months was £1.4m, equivalent to 3.36p per income share which compares favourably to 2.91p per income share for the corresponding period in 2016.

Income shares are entitled to all the dividends paid by the trust.  

The trust will pay a first and second interim dividend of 1.3p per income share in respect of the year to 31 May 2018, compared to 1.25p per share in the prior periods. 

In the absence of unforeseen circumstances the trust's board intends to pay three interim dividends, each of 1.3p per income share in the current financial year.

The trust said it would continue buying back shares when necessary, to maintain a discount of not more than five per cent to net asset value.

At present, the shares trade at a premium of 1.4 per cent for income shares and 1.3 per cent for growth shares.

Mr Martin said the outlook for equities remains postitive.

"Valuations in certain markets, especially the US are elevated, stretched even. However neither age nor valuation are, when viewed in isolation, reasons why further positive returns cannot be achieved,” he said. 

“There are risks, which warrant a cautious approach with regard to strategy and investment selections, where the focus will remain on the best quality investment companies for both portfolios,” he added.