F&C ASSET MANAGEMENT
Investors Capital Trust ('the Company'), which is managed by F&C Investment Business, has today announced in its interim results for the six months to 30 September 2014, an increase in its expected distribution yield.
The yield on the Equities Portfolio for the six months was 3.5 per cent, compared to the yield on the FTSE All-Share Index, of 3.3 per cent. The income from the Equities Portfolio increased compared with the same six month period last year, due to the higher level of one-off special dividends received during the period. The most notable of these were from Compass Group, Intercontinental Hotels and Booker.
The Company has recorded strong income from both the Equities Portfolio and Higher Yield Portfolio and, barring unforeseen circumstances, is expected to provide a dividend for the year of 4.48p per share, a 2.5 per cent increase on the previous year. B Shareholders will receive capital repayments of the same amount. The expected annual distribution yield is 4.7 per cent, based on the share price as at 30 September 2014.
The first three quarterly dividends will be paid in equal instalments of 1.11p per share and a fourth quarterly dividend of approximately 1.15p is expected to be paid to A shareholders. B Shareholders will receive capital repayments of the same amount per share at the same time as dividends are received by A shareholders, which will be paid in August, November, February and May.
The Company's Equities Portfolio produced a total return of 1.1 per cent during the six months, matching the FTSE All-Share Capped 5% Index return, while the Higher Yield Portfolio returned 2.4 per cent. Returns from the Equities Portfolio and the Higher Yield Portfolio, combined with the effect of gearing, resulted in a net asset value (NAV) total return for the A and B shares of 0.7 per cent.
Since the Company's launch in March 2007, the net asset value total return for the A and B shares has been
57.9 per cent, which exceeds the 48.6 per cent return from the benchmark index and reflects strong outperformance from the Equities Portfolio.
Commenting on the past six months and the investment outlook, fund manager Rodger McNair, said:
"Since the financial crisis of 2008, global liquidity has been a key driver of the re-rating of equity markets and it remains an important influence today. Against a background of subdued global growth expectations and continuing low inflation, both equity and credit markets have taken comfort from the accommodative stance adopted by policymakers. While the economic backdrop is muted, interest rates remain close to record low levels and corporate sector fundamentals reasonably healthy, suggesting the recent upturn in merger and acquisition activity will continue to be supportive for equity markets."
Expected distribution yield of 4.7 per cent on A and B shares, based on indicative dividends for the year ended 31 March 2015, compared to the yield on the FTSE All-Share Index, of 3.3 per cent
Total distributions for the year expected to be 4.48p per share, a 2.5 per cent increase on the previous year
Net asset value per share total return for the six months of 0.7 per cent
Net asset value total return per share since launch on 1 March 2007 of 57.9 per cent, compared to the FTSE All-Share Capped 5% Index total return of 48.6 per cent
About Investors Capital Trust: Investors Capital Trust aims to provide an attractive return to shareholders each year in the form of dividends and/or capital distributions, together with prospects for capital growth
The Company has two classes of shares: A shares and B shares. The NAV attributable to each is the same and the rights are identical, save that only the A shares are entitled to receive dividends
while the B shares instead receive a capital repayment at the same time as, and in equal amount to,
each dividend
The Company's portfolio is managed in two parts. The first part comprises investments in UK equities and equity-related securities of large and mid-sized companies (the Equities portfolio) and the second part comprises investments in fixed interest and other higher yielding stocks and securities (the Higher Yielding Portfolio)
At 30 September 2014, 82.6 per cent of total assets was allocated to the Equities Portfolio and 13.1 per cent to the Higher Yield Portfolio. The remaining 4.3 per cent was held as cash and cash equivalents.
ENDSThe full results statement is attached.
Press enquiries: Richard Janes Director, Communications Richard.janes@fandc.comTel: +44 (0) 20 7011 4298 FTI Consulting fandc.sc@fticonsulting.comTel: +44 (0) 20 3727 1888 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
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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