F&C’s 2025 scorecard: share price beats the benchmark, income at a record high
F&C Investment Trust has posted a strong set of audited results for the year to 31 December 2025. The share price total return came in at +14.6%, nudging past the FTSE All-World Index at +14.2%. Net asset value (NAV) total return – the cleaner read on underlying performance – was +11.6% with debt at market value.
The trust’s share price ended the year at 1,252p, an all-time high, helped by a 3.0 percentage point tailwind from discount narrowing. The board also flagged another year of record gross and net income, setting up a 55th consecutive dividend increase.
My take: this is a good year in difficult conditions. Currency was a headwind, Europe and some US sleeves under-delivered, and private equity lagged listed markets – yet F&C still delivered competitive outcomes and tightened the discount. That speaks to the strength of the diversified model and sensible use of gearing.
Key numbers investors should know
| Metric | 2025 |
|---|---|
| Share price total return | +14.6% |
| NAV total return (debt at market value) | +11.6% |
| Year-end share price | 1,252p |
| NAV per share (debt at market value) | 1,343.4p (from 1,219.6p) |
| Discount to NAV (year-end) | 6.8% (from 9.2%) |
| Total dividend for 2025 | 16.6p (+6.4% year-on-year) |
| Proposed final dividend | 5.2p (payable 6 May 2026, subject to approval) |
| Revenue return per share | 17.97p (+5.6%) |
| Gross income | £113.2m (+1.3%) |
| Revenue reserve | £125.5m (c. one year of dividends) |
| Borrowings | £581.2m; blended rate ~2.4% |
| Effective gearing (debt at par) | 8.0% (from 8.6%) |
| Ongoing charges | 0.45% |
Share split: making the shares more bite-sized
The board will put a 4-for-1 share split to a vote at the AGM. If approved, it will be effected on Monday 11 May 2026. For every one share you hold, you would receive four new shares. The value of your holding is unchanged – it just means a lower price per share, which can help affordability for regular savers and may improve liquidity.
Why it matters: with the share price at 1,252p at year-end – up from 449.2p in 2015 and 258.5p in 2005 – the split should make it easier to reinvest dividends and for new investors to build a position in smaller increments. Splits do not change fundamentals, but they can broaden the investor base.
Dividend up 6.4% and covered – the 55th year on the trot
F&C proposes a final dividend of 5.2p, taking the 2025 total to 16.6p, up 6.4% and ahead of CPI inflation at 3.4%. Revenue per share was 17.97p, so the dividend is fully covered. The revenue reserve sits at £125.5m, roughly a year of dividends, and the company also has £5.78bn of capital reserves – both are potentially distributable.
Why it matters: dependable, growing income is one of the trust’s hallmarks. In a world where cash rates move around and inflation bites, 55 years of consecutive increases, and growth of +72.9% over the past decade, are powerful proof of the compounding model. Of course, past performance is not a guide to the future.
What drove performance – and what dragged
Broader markets helped, but stock selection was mixed
- Underweights to most of the “Magnificent Seven” US tech stocks added relative value as leadership broadened.
- Emerging markets allocation performed well, with strategy performance of 27.6% versus the index at 24.4%.
- European portfolios and some US components disappointed on a relative basis, and Japan also slightly lagged its index.
- Private equity delivered positive absolute returns but significantly trailed the listed global equity benchmark.
- A weaker US dollar against sterling (-6.9%) detracted, given F&C’s large US exposure.
Gearing – borrowing to invest – added value in a rising market. The trust kept borrowings steady at £581.2m, with long-dated, low-cost loans averaging around 2.4% out to 2061. That’s cheap capital, which can be a structural advantage when asset returns exceed funding costs.
Discount control, buybacks and fees
The discount narrowed from 9.2% to 6.8% during 2025, contributing 3.0 percentage points to the share price total return. The discount ranged between 3.6% and 13.8%, averaging 7.9%. F&C repurchased 8.1 million shares (1.7% of issued capital), less than the prior year, but still accretive to ongoing holders.
Costs remain competitive with an ongoing charges figure of 0.45%. The management fee tiering was improved from 1 January 2025 and again from 1 January 2026, with lower thresholds and a new 0.2% tier above £6bn. In plain English: as the trust gets bigger, the marginal fee rate falls – a welcome scale benefit for investors.
Long-term compounding still the headline story
Over ten years to December 2025, the share price total return was +12.6% per annum. Over twenty years, the NAV return was +567.7% (+10.0% per annum) and the shareholder total return was +619.1% (+10.4% per annum). Put another way, £1,000 invested on 1 January 2016, with dividends reinvested, would have grown to £3,283 by year-end 2025.
Why it matters: the trust’s mandate is global, multi-manager and diversified across public and private equity. The evidence suggests it has delivered consistent long-term results with limited down years, which is exactly what many ISA and SIPP savers want from a core holding.
Risks and the 2026 backdrop to watch
The board flags higher geopolitical risk, including 2026 volatility from US trade policy shifts and the oil price shock related to the US and Israeli war with Iran. Currency remains a two-way risk for UK investors, particularly a weaker US dollar reducing translated returns and income. The portfolio’s carbon intensity fell in 2025 but remains above the benchmark, and failure to transition to Net Zero by 2050 is listed as a principal risk.
On the operational side, cyber risk and service delivery remain areas of focus, with compliance and controls described in detail. The trust’s long-term viability assessment stress tested severe scenarios; even in the worst case, the board expects the trust could continue operating and paying dividends by drawing on reserves, though these are hypothetical tests rather than forecasts.
My verdict: a solid year, with two clear near-term catalysts
Overall, I view these results positively. The share price outpaced the benchmark, income hit a record, the dividend rose well ahead of inflation and remains covered, the discount narrowed and fees are trending lower as the trust scales. The negatives are manageable: NAV underperformance versus the index, lagging sleeves in Europe and parts of the US, and private equity not keeping pace with buoyant listed markets.
The two near-term catalysts are straightforward. First, the proposed 4-for-1 share split on 11 May 2026, which should aid liquidity and accessibility. Second, the 5.2p final dividend payable on 6 May 2026, which locks in that 55th annual increase. For long-term investors, F&C continues to look like a dependable core global equity allocation with sensible gearing and a clear focus on delivering real dividend growth over time.
What I’m watching next
- AGM approvals for the final dividend and the 4-for-1 share split.
- Progress in the European and US sleeves after a mixed 2025.
- Discount behaviour versus peers – can it be kept consistently tight.
- Currency moves, given the impact of a weaker US dollar on returns and income.
- Execution on the Net Zero pathway, given carbon intensity still above the benchmark.
Past performance should not be seen as an indication of future performance. The value of investments and income can go down as well as up and you may not get back the original amount invested.
