F&C Investment Trust Update: Nevin Defends Global, AI-Linked Portfolio as Dollar Weakens

1 week ago 7

MarketBeat

Wed, January 28, 2026 astatine 5:33 AM CST 8 min read

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Paul Nevin defends a long-term, globally diversified maturation strategy that blends listed equities and backstage equity, uses some in‑house and third‑party managers, and benefits from low‑cost fixed‑rate borrowings (~£580m astatine ~2.4%).
The spot has outperformed implicit the agelong tally since “globalising” successful 2013 and is typically first‑quartile among planetary peers, though it has lagged caller UK worth rallies (9% vs MSCI UK Value ~30% implicit the past year).
Currency and thematic positioning matter: the U.S. dollar weakened done 2025–26 (GBP/USD ~1.25→1.38) and the spot presently has nary dollar hedge, portion AI-driven capex and concentrated U.S. tech vulnerability (NVIDIA is the largest holding) are cardinal drivers of portfolio performance.
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F&C Investment Trust (LON:FCIT) utilized a shareholder update to outline portfolio positioning, caller performance, and cardinal marketplace themes, with money manager Paul Nevin emphasizing a long-term, globally diversified attack spanning listed equities and backstage equity.

Nevin described the spot arsenic a growth-focused conveyance chiefly invested successful listed equity and backstage equity, with an nonsubjective to turn superior and income. He said the trust’s marketplace capitalization is astir £6 cardinal and framed it arsenic a “cost-effective solution” for diversified equity exposure.

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He highlighted the trust’s dividend history, noting it has paid a dividend each twelvemonth since motorboat successful 1868 and that the board’s aspiration remains to present dividend increases up of inflation. Nevin besides pointed to the trust’s low-cost, fixed-rate borrowing structure, stating it has a blended mean involvement complaint of astir 2.4% connected £580 cardinal of nominal indebtedness outstanding. He said this fixed-rate indebtedness has “immunized” the spot from the emergence successful marketplace rates and tin beryllium accretive to NAV returns if portfolio returns transcend the outgo of debt.

On implementation, Nevin said the spot uses some in-house capabilities astatine Columbia Threadneedle Investments and third-party managers. He cited J.P. Morgan for large-cap growth, Barrow Hanley for value, and noted that the spot moved its emerging markets allocation to Invesco astir a twelvemonth ago, describing a value-based attack with an accent connected concern prime and debased leverage. Nevin said Invesco had “got disconnected to a bully start” successful implicit and comparative presumption for that portfolio sleeve.

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