Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

F&C gives Tigue’s £2.6bn investment trust global makeover

F&C gives Tigue’s £2.6bn investment trust global makeover

F&C has created two global portfolios and a new performance benchmark for Jeremy Tigue’s £2.6 billion Foreign & Colonial Investment Trust.

The changes to the oldest investment trust, launched in 1868, are part of a strategy to increase global exposure and diversify the trust’s sources of income.

The new Global Income portfolio, valued at £150 million or 6% of the investment portfolio, consists of 200 stocks and has a dividend yield of 4.5%. The portfolio has been funded by sales of UK stocks.

Ten of the trust’s existing holdings have been transferred into a new Global Funds Portfolio, which is valued at £110 million or 4.3% of the portfolio. This sub-fund will be used for investing in specialist areas globally over time.

The changes to the trust mean the UK weighting has dropped from 33.7% at the end of last year to 22% at the end of January.

The FTSE All World index has been put in place to measure the performance of the new, more global mandate, instead of the previous benchmark which comprised 40% FTSE All Share and 60% FTSE World ex UK.

The trust’s chairman Simon Fraser said: ‘Through increasing our global exposure, the benchmark and portfolio changes will build on our record of long term income and capital growth.

‘Over the last 10 years our dividend has increased by 143% and the share price by 97%. In 2012 we outperformed both the old and new benchmarks and increased the dividend by 20%. We are confident these changes will ensure we continue to deliver growth in income and capital for our shareholders.’

The trust is up 39.39% in share price terms over three years, against the FTSE World’s 36.20% and is trading on a discount of 11%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Play Japan's slump, the umbrella revolution and the battle for Brazil

Japan's slump, the umbrella revolution and the battle for Brazil

With the arrows of Abenomics appearing to be missing their targets and political uncertainty rife in Hong Kong and Brazil we take a look at investor sentiment in this week's Investment Pulse

Your Business: Cover Star Club

Profile: The adviser that tempted Robin Minter-Kemp on board

Profile: The adviser that tempted Robin Minter-Kemp on board

It is rare to meet an impassioned individual who is willing to bang the drum for investment advisory right now

Wealth Manager on Twitter