Edison reviews Foreign & Colonial Investment Trust

RNS Number : 7483Z

Foreign & Col Invest Trust PLC

04 September 2018

 

London, UK, 4 September 2018

Edison issues review on Foreign & Colonial Investment Trust (FRCL)

Foreign & Colonial Investment Trust (FRCL) is the world's oldest investment trust and has a distinguished dividend history. The fund is on course for its 48th consecutive year of dividend increases and an annual distribution has been paid in each of the 150 years since FRCL was launched in 1868. Paul Niven has managed the trust since 2014 and has continued to build on FRCL's long-term record of outperformance versus its benchmark. Helped by another period of good relative performance in H118, the trust's share price total return has now outperformed the FTSE All-World index total return over the last one, three, five and 10 years. Although equities have performed well in recent years, the manager believes there is potential for further upside, supported by corporate earnings growth.

FRCL's discount has narrowed meaningfully since mid-2016 and as a result the board no longer employs a hard discount control mechanism, which previously aimed to keep the discount below 7.5%. The trust's current 1.4% share price premium to cum-income NAV compares with the average discounts of the last one, three, five and 10 years of 3.0%, 6.7%, 7.7% and 8.8% respectively. FRCL has a progressive dividend policy, having increased the annual distribution in each of the last 47 consecutive years. Its current dividend yield is 1.4%. 

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