About us

Foreign & Colonial Investment Trust

Foreign & Colonial Investment Trust was established in 1868 and was the world's first investment trust. A major innovation of its time and a pioneer of collective investments, it was specifically designed to reduce investors' risk by spreading their investment between a number of stocks. Today, the Trust is one of the largest global growth investment trusts in the world.

Over the years the Trust has helped finance a diverse range of projects and industries such as, North Sea Oil, Cats (the musical), the Independent newspaper and the Channel Tunnel. In 2002, Foreign & Colonial committed £150 million to private equity, through HarbourVest Partners and Pantheon Ventures, for investment over the next 5 years. Further information about the private equity investments made by the Trust can be found in the latest Annual Report and Accounts.

Today, Foreign & Colonial is widely recognised as the grandfather of the investment trust industry. It now manages assets of over £1.7 billion, which are invested in over 650 different companies in 36 countries. Currently, the Trust has over 108,000 shareholders, of which 87,000 are investors through F&C savings plans.

The money is looked after by F&C Management Limited, a subsidiary of F&C Asset Management plc, one of the larger fund management companies in the UK and a listed company. With over £90 billion of assets under management , F&C has significant resources in terms of research, access to companies and support to financial advisers. F&C and Foreign and Colonial are totally independent of each other. 

For a more in-depth look at the history of Trusts history, you can read the book F&C a History of Foreign and Colonial Investment Trust by John Newlands and Neil McKendrick.

Why Foreign & Colonial Investment Trust?

Why Foreign & Colonial Investment Trust?

Objective

• To secure long-term growth in capital and income through a policy of investing primarily in an internationally diversified portfolio of publicly listed equities, as well as unlisted securities and private equity, with use of gearing

Heritage

• Founded in 1868 as the first ever investment trust
• Pioneered the concept of collective investment, by giving the small investor the same advantage as the large institution by reducing risk through a spread of investments

Today

• One of the largest global growth trusts with total assets of over £1.7 billion investing in over 650 companies in 36 countries
• Over 108,000 shareholders, including  87,000 investors through the F&C savings plans

Reputation

• Well-known and respected brand, with a reputation for delivering its long-term objectives in a responsible, prudent and effective way

Management

• Independent Board of Directors responsible for overall strategy and monitoring performance
• Management of the investments is carried out by F&C Management Limited under contract
• External third party sub-Managers are used to enhance performance
• Manager incentivised to produce superior performance
• No cross-directorships, no cross-holdings and no conflicts of interests between the Company and its Manager

Performance as at 31 December 2008

• Share price total return of -26.7% over one year
  – below the benchmark, but above the weighted
  average of the close peer group.
• Share price total return of 34.4% and 45.8% over five
  and 10 years respectively – above both the benchmark
  and the weighted average of the close peer group.
• Dividend up 133%, or 8.8% compound, over
  10 years.
• Increase in dividend every year for the past
  38 years.
• Over 20 years an investment of £1,000 has grown
  to £5,856 on a total return basis – or 10.1% per
  annum compound. This is 3.7% more than the
  weighted average of the close peer group, 18.7%
  more than the FTSE All-Share index and 126% more
  than a bank or building society deposit account.

To find out more about investment trusts, visit our introduction to investing section or alternatively, download a brochure and application form to your right.