PRESS RELEASE

29 August 2014 F&C Private Equity Trust raises exposure to co-investments

F&C Private Equity Trust plc ('the Company') has today announced in its interim results, to 30 June 2014, that it has raised its exposure to co-investments from 11.8 per cent to 17.5 per cent. This is part of the Company's medium term plan to build the allocation up to 25 per cent.
The Company delivered a share price total return for the six months of 9.1 per cent for Ordinary Shares. A semi-annual dividend of 5.39p per Ordinary Share will be payable on 7 November 2014 to shareholders on the register on 10 October 2014, representing an annualised yield of 4.9 per cent based on the share price as at 30 June 2014. The Net Asset Value (NAV) total return for the six months was -0.3%, due in part to the effect of Sterling strengthening against other major currencies.
During the first half of the year total drawdowns and co-investments were £13.8 million. Two new co- investments were made during the first half of the year. £3.3 million was invested in Park Holidays, the country's fourth largest caravan holiday park operator, and £2 million was invested in Ticketscript, the Netherlands based provider of cloud based selfserve event ticketing, promotion and management software. One new commitment to a private equity fund was made in the first half of the year, with £3 million committed to UK lower mid-market fund Primary Capital IV. Since 30 June, two further commitments to private equity funds have been made. €2 million has been committed to Iberian mid-market manager Portobello for their Fund III and a commitment of $7 million was made to BluePoint Capital III. Following the period end the Company has invested £1.6 million into Fox International Group, a leading provider of fishing tackle including rods, reels, lures, clothing and camping equipment and accessories.
Distributions in the first half of the year totalled £18.7 million. In addition, the Company received £2.2 million of income. This brings the total of distributions, including income, to £20.9 million for the first half, approximately 10 per cent ahead of the total at the same stage last year. There have been no realisations from the co-investment portfolio but the flow of realisations from the fund holdings has been substantial. The exits were widespread by sector and geography.
Commenting on the outlook for the remainder of the year, fund manager Hamish Mair, said:
"The private equity market in Europe and further afield is typified by a healthy level of activity. The first half of the year saw signs of renewed exit activity in markets such as France and Spain. In the UK, exits were achieved not only to other private equity firms and to trade, but also through the stockmarket, signalling that the recovery is in general well established. Company profits continue to recover, nothwithstanding the generally sluggish economic growth and the continuing fiscal adjustments to government balance sheets. Private equity fund raising is progressing and whilst much of the capital is going to already well financed household names, there are signs that more emerging managers are also raising funds, albeit not always through conventional structures.
"In the European mid-market our investment partners remain able to acquire good companies at apparently sensible prices and we expect to commit to several more funds by the year end. The deal flow of co- investments and secondaries is strong, and we expect to add further to both categories as the year progresses."

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At the end of the period, the Company arranged a new five year loan facility of approximately £70 million with The Royal Bank of Scotland plc. It is the Board's intention to use some of this facility to at least partially fund the pending redemption of the Company's Zero Dividend Preference Shares ('ZDPs') on 15 December this year.
Highlights of F&C Private Equity Trust annual results, to 30 June 2014, include:

Ordinary Share price total return of 9.1 per cent

NAV total return of -0.3% for Ordinary Shares

Semi-annual dividend of 5.39p per Ordinary Share

Annualised dividend yield of 4.9% based at the period end

About F&C Private Equity Trust:

F&C Private Equity Trust aims to provide Ordinary Shareholders with long-term capital growth through investment in private equity assets, whilst providing shareholders with a predictable and above average level of dividend funded from a combination of the Company's revenue reserve and realised capital profits

The Company aims to pay semi-annual dividends with an annual yield equivalent to not less than 4 per cent of the average of the published net asset values per Ordinary Share as at the end of each of its last four financial quarters prior to the announcement of the relevant semi-annual dividend or, if higher, equal (in pence per share) to the highest semi-annual dividend previously paid.

The Company has a global remit but a UK and European bias

F&C Private Equity Trust is managed by Hamish Mair, Head of Private Equity Funds at F&C

Investments, who has over 20 years' experience in private equity
- ends - The full results statement is attached.

Press enquiries: fandc.sc@fticonsulting.comTel: +44 (0) 20 3727 1888 Richard Janes Director, Communications Richard.janes@fandc.comTel: +44 (0) 20 7011 4298 About F&C Investments

F&C is focused exclusively on managing money for its clients. It manages assets for a combination of insurance clients, institutional investors, intermediaries and private individuals. F&C invests across all major asset classes - equities, fixed income and property - and has specialist expertise in asset allocation, alternative investments, liability driven investments, multi-manager, private equity funds and Environmental Social and Governance (ESG) Investing. The F&C Group includes F&C REIT, a global real estate asset manager.
F&C has a strong footprint in the U.K. and the rest of Europe with assets under management of approximately £83 billion as at 30 June 2014. F&C has a rich heritage that dates back almost 150 years and can be traced back to the founding in 1868 of the Foreign & Colonial Investment Trust.
F&C is part of Bank of Montreal (BMO) Global Asset Management, a global investment manager with more than US$280 billion in assets under management as of 31 July 2014. BMO Global Asset Management is a part of BMO Financial Group (NYSE:BMO), a fully diversified financial services organisation with US$531 billion total assets and more than 45,000 employees as of April 30, 2014.

Disclaimer



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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. The information, opinions estimates or forecasts contained in this document were obtained from sources reasonably believed to be reliable and are subject to change at any time. F&C Group Companies may from time to time deal in investments mentioned herein on behalf of their clients. The source of information in all graphs is F&C unless otherwise stated. F&C Management Limited is authorised and regulated by the Financial Conduct Authority FRN: 119230 F&C Management Limited is a member of the F&C Group. The F&C Group is wholly owned by BMO Global Asset Management (Europe) Limited, which is itself a wholly owned subsidiary of the Bank of Montreal. F&C, the F&C logo, REO and the 'reo' logo are registered trademarks of F&C Asset Management plc. F&C Investments and the F&C Investments logo are trademarks of F&C Management Limited. © Copyright F&C Management Limited 2014. All Rights Reserved. Neither this document nor any part of it may be reproduced by any party whether by photocopying or storing in any medium by electronic means or otherwise without the prior approval of F&C Management Limited.
F&C Management Ltd accepts no liability in respect of the information or any views expressed herein which may be subject to change without notice at any time.

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