F&C Investment Trust PLC

National Storage Mechanism | Additional information

RNS Number : 4778T

01 August 2025

F&C INVESTMENT TRUST PLC

Unaudited Results for the half-year ended 30 June 2025

Legal Entity Identifier : 213800W6B18ZHTNG7371

Information disclosed in accordance with Disclosure Guidance and Transparency Rule 4.2.2

1 August 2025

F&C Investment Trust PLC (the 'Company' or 'F&C') today announces its results for the six months ended 30 June 2025.

· The Net Asset Value ('NAV') total return was 0.0%. This was behind the return from the benchmark, the FTSE All-World Index, which returned +0.8%.

The NAV decreased to 1,210.8p from 1,219.6p at 31 December 2024.

· The share price total return was +0.8%.

The share price was 1,108.0p (31 December 2024: 1,108.0p).

· The Board aims to increase the total dividend again this year. The first interim dividend of 3.8 pence for 2025 to be paid today, 1 August.

T he Chairman, Beatrice Hollond, said:

"We continue to believe that our diversified approach creates more resilience in terms of outcomes for shareholders."

Commenting on the markets, Paul Niven, Fund Manager of F&C, said:

"The opportunity set for investors within global equity markets should widen beyond the recent stand-out performers. A broadening in market returns should benefit our investment approach and we remain confident that we can continue to deliver our investment objectives, to grow both capital and income for our shareholders over the long term."

The full results statement is attached.

Past performance should not be seen as an indication of future performance. The value of investments and income derived from them can go down as well as up as a result of market or currency movements and investors may not get back the original amount invested.

Contacts

Paul Niven - Fund Manager

020 3530 6396

Campbell Hood

[email protected]

07860 911 622

Lansons

Tom Straker

[email protected]

07505 425 961

About F&C:

· Founded in 1868 - the oldest collective investment trust

· A diversified portfolio provides exposure to most of the world's stock markets, with exposure to over 400 individual companies across the globe

· Its aim is to generate long-term growth in capital and income by investing primarily in an international portfolio of listed equities

CHAIRMAN'S STATEMENT

Global equity markets posted a modest increase in sterling terms over the first half of the year. Despite facing headwinds in the form of global tariffs and escalating geopolitical tensions, the resilience of financial markets in the face of such uncertainty has been notable. The Company produced a Net Asset Value ('NAV') total return of 0.0%, a little below the return of +0.8% from our benchmark, the FTSE All-World Index, while our share price total return was +0.8%. Weakness in the US dollar negatively impacted the sterling-based returns of our portfolio over the first six months of the year.

Our NAV per share ended the period at 1,210.8 pence compared with 1,219.6 pence at the end of 2024. The return from our investment portfolio over the first half of the year, before costs and other effects, was 0.0%. The Company's gearing (with debt at fair value) rose from 5.0% at the start of the year to 5.2% at the end of the period. The Company's discount narrowed slightly over the six months, from 9.2% to 8.5%.

As our share price discount to NAV remained relatively wide, we have continued to buy back shares, albeit less than last year, with 1.35 million shares bought back over the first half of 2025. This was modestly accretive to our NAV total return. The Board remains committed to the use of share buybacks both to enhance net asset value and to dampen discount volatility. We regard the recent discount levels as unreflective of the strength of our investment proposition. We have continued to pursue an active marketing programme which aims to communicate the benefits of our offering for current and prospective shareholders. The Board remains focused on good governance and long-term sustainability.

The first half of 2025 has been characterised by significant geopolitical uncertainty, with President Trump's April announcement, on 'Liberation Day', of widespread tariffs on US trading partners representing a shock for markets. The breadth and scale of proposed tariffs caught investors by surprise, as they had begun the year with expectations of market-friendly deregulation and tax cuts designed to stimulate US economic growth. While market conditions stabilised following the announcement of a 90-day pause for those countries that avoided retaliation, persistent uncertainty remained throughout the second quarter, further heightened by conflict in the Middle East. Economic and geopolitical uncertainty led to a substantial rise in equity market volatility and contributed to weakness in the US dollar, which suffered its worst first-half of the year since 1973, declining by 9.7% against sterling.

US equities materially lagged returns from non-US markets, with Europe a standout performer, led by strong returns in the first quarter. Indeed, the underperformance of the US equity market, relative to the rest of the world, over the six-month period was one of the widest for decades. Divergence in interest rate policy helped non-US markets, as the US Federal Reserve held interest rates steady across four consecutive meetings, adopting a data-dependent approach to assess the economic impact of the administration's trade policies. Meanwhile, the Bank of England cut rates by 0.5% and the European Central Bank by 1.0%.

Sentiment towards Europe also benefited from a significant shift in fiscal policy orientation, particularly following the German election in February. The incoming coalition's proposals to reform the constitutional debt brake to accommodate higher defence spending, coupled with the European Commission's initiative to exempt such expenditures from deficit calculations, represent a notable evolution in the European fiscal framework with potentially far-reaching implications for markets.

INCOME AND DIVIDENDS

We paid a third interim dividend of 3.60 pence per share for the year ended 31 December 2024 in February 2025 and a final dividend of 4.80 pence in May, bringing a full year dividend of 15.60 pence. This was fully covered by earnings of 17.01 pence per share and represented an increase of 6.1% on the previous year.

Our net revenue return per share over the first six months of the year rose by 8.6% to 10.47 pence, compared to 9.64 pence over the corresponding period last year. Sterling was gained against both the US Dollar in the first six months of 2025 and was trading at a higher average level than in the first half of 2024 but the overall impact of currency movements detracted £1.3m from the return. Special dividends totalled £1.1m, down from £1.2m in the first half of 2024.

It remains the aspiration of the Board to continue the Company's track record of delivering rises in dividends which exceed inflation over the long-term and we retain a substantial revenue reserve to help meet this objective if required. We have declared a first interim dividend for the current year of 3.8 pence per share to be paid on 1 August 2025. The Board plans to deliver another rise in our total dividend for this year, which will be the 55th consecutive annual rise.

THE BOARD

As explained in the last annual report, Edward Knapp has served as a Director for nine years and therefore stepped down from the Board at the end of July. We shall miss Edward's outstanding combination of investment, operational and general management experience. His contributions to the Board's discussions on strategy and risk have been particularly valuable.

Edward is replaced by Josh Bottomley, who will join the Board on 1 September. Josh is Chief Executive Officer of dunnhumby, a global AI and analytics business. He was previously an Operating Partner at CVC Capital Partners and has held senior positions at HSBC Holdings plc (Global Head of Digital, Data and Development), Google Inc. (Global Head, Display) and LexisNexis (Managing Director).

OUTLOOK

Despite recent volatility and uncertainty introduced through tariff policy and military conflict, the fundamental outlook for the global economy remains relatively sound. While earnings expectations for developed markets have seen downgrades, there are now signs that markets are expecting improving growth in 2026. This, coupled with expected cuts in interest rates, provides a constructive backdrop for global equity markets.

Actions of the new US administration, coupled with relatively rich valuations in US equities and the currency, have led to increasing discussion amongst market participants over whether US outperformance, in economic and market terms, will persist. Our portfolio holds a majority of its exposure in US assets and so has a substantial weighting to both the US equity market and the US dollar. Our Manager has, at the margin, been reducing US exposure in recent months and we remain vigilant around the risk of further underperformance from this region. Despite this, our Manager continues to see attractive opportunities in terms of individual stocks within the US and other markets. Indeed, our approach, which blends exposure across a range of stocks across various regions which display positive growth, valuation, and/or quality attributes creates a wider opportunity set for our portfolio than one which is narrowly focused from a stylistic perspective. In addition, as demonstrated by the consistency which has been delivered in our long-term returns, we continue to believe that our diversified approach creates more resilience in terms of outcomes for shareholders. Regardless of near-term risks and uncertainty, the Board remains resolutely focused on long-term opportunities for the benefit of our shareholders.

Beatrice Hollond

Chairman

31 July 2025

FUND MANAGER'S REVIEW

Global equity markets delivered modest gains overall in sterling terms during the first half of the year, with weakness in the US dollar detracting from returns on our US holdings. Global equity benchmarks gained +0.8%, though regional performance diverged markedly. European markets and emerging markets outperformed the US.

US underperformance contrasted with consensus expectations of ongoing US 'exceptionalism' under President Trump's administration. The tariff policies of the new US administration created tremendous uncertainty with concern over the potential impact on both growth and inflation. In addition, escalating Middle Eastern tensions, culminating in strikes by Israel and the United States against Iran, increased market volatility further, though these hostilities subsequently experienced rapid de-escalation.


Contributors to total returns in first half of 2025 %
Portfolio return	0.0
Management fees	(0.2)
Interest and other expenses	(0.1)
Buybacks	0.0
Change in value of debt	0.0
Gearing/other	0.3
Net asset value total return*	0.0
Change in share price discount	0.8
Share price total return	0.8
FTSE All-World total return	0.8

*Debt at market value

Source: Columbia Threadneedle/State Street

While the threat of tariffs was a dominant theme, the sustainability of government debt levels and the Moody's downgrade of US sovereign debt amplified concerns over high US deficit levels just as the Trump administration pushed for Congressional approval for legislation to extend first-term tax reductions. Consequently, long-dated interest rates drifted higher and, within the currency market, sterling appreciated against the US dollar throughout the first half of the year, advancing from 1.25 to 1.37. This dollar weakness was evident across other major currency pairs, as the world's reserve currency retreated against both the Japanese Yen and the Euro.

Persistent above-target inflation in both the US and UK has necessitated a more measured approach to monetary policy by central banks than investors had hoped for. US Federal Reserve Chair Jerome Powell, despite pressure from the President, has emphasised that the institution "can afford to be patient," noting the potential inflationary implications of proposed tariff policies. Interestingly, immediate tariff-driven inflation pressure has yet to materialise but remains a point of focus for investors.

Within equity markets, the "Magnificent Seven," in aggregate, delivered losses (in sterling terms) over the first six months of the year but there was marked dispersion in returns. Artificial Intelligence ('AI') was again a significant driver of returns with the January launch of a model from Deepseek, a small Chinese company with relatively limited resources, raising significant concerns over whether recent expenditure by large technology firms would prove unprofitable. In addition, with the prospect of a paradigm shift in terms of the cost of AI production, those companies reliant on projects with high capital expenditure were considered at risk of stalling momentum in product demand. After a brief rout in technology stocks which saw Nvidia lose almost $600 billion of market value in a single day, the stock ended up rising by over 7% in sterling terms over the first half of the year as demand for its chips remained robust. Meta also gained over the period, rising by over a quarter in dollar terms, while Microsoft rose 8.1%. All the other Magnificent Seven stocks posted losses for investors, with Amazon (-8.7%), Alphabet (-14.8%) and Apple (-25.0%) all disappointing. Tesla produced a loss of over 28% for the six months, with Elon Musk's foray into politics being viewed as an unwelcome diversion at a time when the company suffered from falling sales, increasing competition and the potential reduction and withdrawal of government subsidies.

Returns from our exposure in North America (-3.3%) lagged those of the benchmark (-2.5%) over the first half. Our US large cap growth strategy managed by JPMorgan Asset Management demonstrated relative resilience during the first half of the year, returning -2.9% compared to the Russell 1000 Growth Index's -3.2% return. Overweight positions in select streaming companies delivered positive performance, particularly Netflix (+37.2%) and Spotify (+56.6%). Netflix's performance was underpinned by robust revenue growth, driven by successful pricing adjustments and sustained subscriber acquisition. Spotify achieved a notable milestone in January, recording its first annual profit. Additionally, the underweight position in Apple (-25.0%) proved advantageous as the company faced headwinds related to its substantial iPhone manufacturing presence in China amid ongoing tariff uncertainties.

Within our value-oriented strategies, where market indices delivered returns in line with growth benchmarks, we saw divergence in relative performance. Our longstanding US value manager, Barrow Hanley, returned -6.7%, while the value strategy managed by Columbia Threadneedle Investments fared better, posting a -1.4% return against their benchmark Russell 1000 Value Index (-3.2%) during the period. Barrow Hanley's position in Vertiv, a provider of data centre cooling equipment, power solutions and technological infrastructure, contributed positively to portfolio performance. These gains were, however, offset by some significant stock detractors, notably UnitedHealth Group (-43.1%). UnitedHealth's performance deteriorated following the company's withdrawal of annual earnings guidance that coincided with reports of a criminal investigation concerning potential Medicare fraud allegations. In the portfolio managed by Columbia Threadneedle Investments, healthcare was, however, a positive contributor with active positions in CVS Health (+43.5%) and Tenet Healthcare (+27.3%) benefitting, although the position in Pacific Gas & Electric (-36.7%) detracted from relative performance.

Our Global Income (+3.3%) and Global Enhanced (+4.0%) strategies both delivered strong performance against the FTSE All-World Index benchmark (+0.8%). Global Income, which delivers a portfolio with an above market dividend, held a position in NRG Energy (+63.8%) which benefitted from the increased electricity demand from data centres to fuel AI usage. The company further strengthened its position by announcing the acquisition of eighteen gas-fired power plants. Our Global Focus (-0.1%) strategy was modestly behind its benchmark over the period. Howmet Aerospace (+55.6%), the US listed manufacturer of engineered metal products, was a standout performer after delivering strong financial returns and with robust demand from end markets.

Our European (including the UK) strategy was the strongest absolute performer over the first half of the year, returning +9.2%, although the strategy did lag its benchmark return of +12.3%. The main contributors to positive performance were in the financials sector, with stocks such as National Bank of Greece (+53.1%) and Bank of Ireland (+46.3%) contributing positively. The position in Pearson (-15.3%) detracted from returns, with the education provider citing tighter immigration enforcement in its key markets as a driver for lower test volumes.

Our focused Japanese strategy (+4.7%) outperformed its benchmark (+2.6%). Nintendo (+50.5%) emerged as a standout contributor, achieving record sales with its new Switch 2 console, the company's first new console release in eight years. Conversely, our position in Recruit Holdings (-23.6%), a human resources technology company, detracted from performance after the company's first quarter earnings fell short of expectations.

Emerging markets outperformed developed equities over the first half and, in the early part of the year, we divested in entirety from assets managed by Columbia Threadneedle Investments and transferred our exposure to Invesco, who are now managing a dedicated emerging markets strategy for us. We chose Invesco as manager for these assets after an extensive and thorough selection process. Our emerging markets holdings produced a strong performance, returning +6.1% in the first half of the year and outperforming the benchmark's +2.7% gain. Telefonica Brasil (+43.0%) performed particularly well within the strategy, as the telecommunications group continues to expand its 5G services across Brazil.

Our private equity exposure (-3.8%) lagged listed equities during the period and these remain challenging conditions for exits. While underperforming listed holdings in the first half of the year, we maintain conviction in these long-term investments. Our private equity holdings are well-diversified across regions, sectors, and company lifecycle stages. The commitments sourced and selected by Columbia Threadneedle Investments, focused on middle-market buyout opportunities, demonstrated resilience amid geopolitical headwinds, returning +2.4% over the quarter. Outside of our core holdings in mid-market funds and co-investments, the Pantheon Future Growth programme, which focuses on venture capital and growth equity, declined by 7.8%, largely due to the weakening US dollar.

CURRENT MARKET PERSPECTIVE

Despite discussions on the end of American exceptionalism, the US is still forecast to outpace all other G7 economies in growth terms this year and next. While US equities continue to trade at higher valuation multiples than international peers, their superior earnings growth has historically served to justify this premium rating and, in the near term, US earnings will likely outpace most other developed markets. Nonetheless, we have been expecting a broadening in market returns within equities. Further cuts in interest rates are anticipated in both the UK and Europe and there is the prospect of structurally higher fiscal expenditure in the Eurozone, which may boost growth prospects there.

While we have been reducing, at the margin, some of our US weighting through sales of both equities and the dollar, reports of the demise of US are likely exaggerated. Many of the large US corporates continue to demonstrate impressive competitive positions within segments of the market, such as AI, which will continue to see structural growth. At the margin, however, the opportunity set for investors within global equity markets should widen beyond the recent stand-out performers.

For emerging markets, the weaker US dollar has provided a strong tailwind in the first half of 2025 and the prospect of interest rate cuts in the US provides further optimism for prospective returns. Indeed, despite the risks surrounding tariffs, after an extended period of underperformance and stagnant domestic earnings it may be that emerging markets equities offer attractive relative returns, supported by potential further Chinese stimulus measures, global interest rate cuts and attractive valuations.

As always, the risks remain numerous. Tariff policy remains uncertain, and a multitude of different events could cause a flight from risk assets and equities. Despite this, we remain optimistic over prospective returns over the longer-term. AI should deliver improvements in productivity which will accrue to owners of capital and benefit the global growth outlook. The risk of a US recession in the near-term is currently low and interest rates look set to be cut further. A broadening in market returns should benefit our investment approach and we remain confident that we can continue to deliver our investment objectives, to grow both capital and income for our shareholders over the long term.

Paul Niven

Fund Manager

31 July 2025


	Weightings, stock selection and performance in each investment portfolio strategy and underlying geographic exposure versus index as at 30 June 2025
Investment portfolio strategy	Our portfolio strategy weighting %	Underlying geographic exposure(1) %	Benchmark weighting %	Our strategy performance in sterling six months to 30 June 2025 %	Net index performance in sterling six months to 30 June 2025 %
North America	39.8	63.1	65.6	-3.3	-2.5
Europe inc. UK	9.0	19.8	14.9	9.2	12.3
Japan	4.3	4.3	5.7	4.7	2.6
Emerging Markets	4.8	9.3	10.1	6.1	2.7
Developed Pacific	-	3.5	3.7	-	9.6
Global Strategies(2)	30.9	-	-	2.3	0.8
Private Equity(3)	11.2	-	-	-3.8	-

Source: Columbia Threadneedle/State Street

(1) Represents the geographic exposure of the portfolio, including underlying exposures in private equity and fund holdings

(2) The Global Strategies allocation consists of Global Income, Global Enhanced and Global Focus.

(3) Includes the holdings in Schiehallion and Syncona.

UNAUDITED CONDENSED INCOME STATEMENT


		Half year ended 30 June 2025			Half year ended 30 June 2024
Notes		Revenue £'000s	Capital £'000s	Total £'000s		Revenue £'000s	Capital £'000s	Total £'000s
	(Losses)/gains on investments and derivatives	-	(31,641)	(31,641)		-	611,228	611,228
	Exchange (losses)/gains	(235)	(8,179)	(8,414)		(322)	1,174	852
3	Income	64,685	-	64,685		64,061	-	64,061
4	Fees and other expenses	(4,945)	(7,155)	(12,100)		(5,682)	(6,768)	(12,450)
	Net return before finance costs and taxation	59,505	46,975	12,530		58,057	605,634	663,691
4	Interest payable and similar charges	(1,725)	(5,175)	(6,900)		(1,710)	(5,131)	(6,841)
	Net return on ordinary activities before taxation	57,780	(52,150)	5,630		56,347	600,503	656,850
5	Taxation on ordinary activities	(7,294)	(109)	(7,403)		(7,704)	(460)	(8,164)
6	Net return attributable to shareholders	50,486	(52,259)	(1,773)		48,643	600,043	648,686
6	Net return per share - basic (pence)	10.47	(10.84)	(0.37)		9.64	118.85	128.49

The total column is the profit and loss account of the Company.

All revenue and capital items in the above statement derive from continuing operations.

UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY


			Capital			Total
		Share	redemption	Capital	Revenue	shareholders'
		capital	reserve	reserves	reserve	funds
Notes	Half year ended 30 June 2025	£'000s	£'000s	£'000s	£'000s	£'000s
	Balance brought forward 31 December 2024	140,455	122,307	5,299,520	116,240	5,678,522
	Movements during the half year ended 30 June 2025
11	Shares repurchased by the Company and held in treasury	-	-	(14,999)	-	(14,999)
7	Dividends paid	-	-	-	(40,508)	(40,508)
	Return attributable to shareholders	-	-	(52,259)	50,486	(1,773)
	Balance carried forward 30 June 2025	140,455	122,307	5,232,262	126,218	5,621,242


			Capital			Total
		Share	redemption	Capital	Revenue	shareholders '
		capital	reserve	reserves	reserve	funds
Notes	Half year ended 30 June 2024	£'000s	£'000s	£'000s	£'000s	£'000s
	Balance brought forward 31 December 2023 Movements during the half year ended 30 June 2024	140,455	122,307	4,664,438	107,287	5,034,487
	Shares repurchased by the Company and held in treasury	-	-	(101,160)	-	(101,160)
7	Dividends paid	-	-	-	(58,010)	(58,010)
	Return attributable to shareholders	-	-	600,043	48,643	648,686
	Balance carried forward 30 June 2024	140,455	122,307	5,163,321	97,920	5,524,003


Notes	Year ended 31 December 2024	Share capital £'000s	Capital redemption reserve £'000s	Capital reserves £'000s	Revenue reserve £'000s	Total shareholders' funds £'000s
	Balance brought forward 31 December 2023	140,455	122,307	4,664,438	107,287	5,034,487
	Movements during the year ended 31 December 2024
	Shares repurchased by the Company and held in treasury	-	-	(280,120)	-	(280,120)
7	Dividends paid	-	-	-	(75,604)	(75,604)
	Return attributable to shareholders	-	-	915,202	84,557	999,759
	Balance carried forward 31 December 2024	140,455	122,307	5,299,520	116,240	5,678,522

UNAUDITED CONDENSED BALANCE SHEET


Notes		30 June 2025 £'000s	30 June 2024 £'000s	31 December 2024 £'000s
	Fixed assets
8	Investments	6,111,869	5,995,998	6,164,525
	Current assets
	Debtors	27,968	58,643	15,060
14	Cash and cash equivalents	82,670	109,274	91,147
	Total current assets	110,638	167,917	106,207
	Creditors: amounts falling due within one year
10	Other	(20,713)	(59,728)	(12,909)
	Total current liabilities	(20,713)	(59,728)	(12,909)
	Net current assets	89,925	108,189	93,298
	Total assets less current liabilities	6,201,794	6,104,187	6,257,823
	Creditors: amounts falling due after more than one year
9, 14	Loans	(579,977)	(579,609)	(578,726)
9, 14	Debenture	(575)	(575)	(575)
		(580,552)	(580,184)	(579,301)
	Net assets	5,621,242	5,524,003	5,678,522

	Capital and reserves
11	Share capital	140,455	140,455	140,455
	Capital redemption reserve	122,307	122,307	122,307
	Capital reserves	5,232,262	5,163,321	5,299,520
	Revenue reserve	126,218	97,920	116,240
12	Total shareholders' funds	5,621.242	5,524,003	5,678,522
12	Net asset value per ordinary share - prior charges at nominal value (pence)	1,168.20	1,105.66	1,176.82

UNAUDITED CONDENSED STATEMENT OF CASH FLOWS


		Half year ended 30 June 2025	Half year ended 30 June 2024	Year ended 31 December 2024
Notes		£'000s	£'000s	£'000s
13	Cash flows from operating activities before dividends received and interest paid	(20,187)	(17,350)	(36,166)
	Dividends received	61,732	59,825	108,543
	Interest paid	(6,925)	(6,866)	(13,731)
	Cash flows from operating activities	34,620	35,609	58,646
	Investing activities
	Purchases of Investments	(2,360,264)	(1,541,642)	(3,604,576)
	Sales of Investments	2,380,347	1,666,308	3,904,506
	Other capital charges and credits	(41)	(41)	(78)
	Cash flows from investing activities	20,042	124,625	299,852
	Cash flows before financing activities	54,662	160,234	358,498
	Financing activities
	Equity dividends paid	(40,508)	(40,007)	(75,604)
	Cash flows from share buybacks for treasury shares	(14,167)	(98,190)	(281,473)
	Cash flows from financing activities	(54,675)	(138,197)	(357,077)
14	Net (decrease)/increase in cash and cash equivalents	(13)	22,037	1,421
	Cash and cash equivalents at the beginning of the period	91,147	87,170	87,170
14	Effect of movement in foreign exchange	(8,464)	67	2,556
	Cash and cash equivalents at the end of the period	82,670	109,274	91,147



	Represented by:

	Cash at bank	67,504	86,095	73,488
	Short term deposits	15,166	23,179	17,659
	Cash and cash equivalents at the end of the period	82,670	109,274	91,147

UNAUDITED NOTES ON THE CONDENSED ACCOUNTS

1 RESULTS

The results for the six months to 30 June 2025 and 30 June 2024 constitute non-statutory accounts within the meaning of Section 434 of the Companies Act 2006. The latest published accounts which have been delivered to the Registrar of Companies are for the year ended 31 December 2024; the report of the Auditors thereon was unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The condensed financial statements shown for the year ended 31 December 2024 are an extract from those accounts.

2 ACCOUNTING POLICIES

(a) Basis of preparation

These condensed financial statements have been prepared on a going concern basis in accordance with the Companies Act 2006, Interim Financial Reporting (FRS 104) and the Statement of Recommended Practice 'Financial Statements of Investment Trust Companies and Venture Capital Trusts' (SORP), issued in July 2022.

The accounting policies applied for the condensed set of financial statements are set out in the Company's annual report for the year ended 31 December 2024.

(b) Use of judgements, estimates and assumptions

The presentation of the financial statements in accordance with accounting standards requires the Board to make judgements, estimates and assumptions that affect the accounting policies and reported amounts of assets, liabilities, income and expenses. Estimates and judgements are continually evaluated and are based on perceived risks, historical experience, expectations of plausible future events and other factors. Actual results may differ from these estimates.

The area requiring the most significant judgement and estimation in the preparation of the financial statements is accounting for the value of unquoted investments.

The policy for valuation of unquoted securities is set out in note 8 and further information on Board procedures is contained in the Report of the Audit Committee and note 25(d) of the Report and Accounts as at 31 December 2024. The choice to use the March quarter end valuations and apply a roll forward process to incorporate any known transactions and material events is a judgement made each year for the indirect investments. The valuations as at 30 June are not generally available before approval of the half year report. Material judgements were applied to the valuation of the Company's direct investment, Inflexion Strategic Partners. This investment was valued using an earnings method multiplied by an average of European listed comparable companies multiple (where the judgement of which comparable companies to select and what discounts to apply are subjective). The fair value of unquoted (Level 3) investments, as disclosed in note 8, represented 10.7% of total investments at 30 June 2025. Under foreseeable market conditions the collective value of such investments may rise or fall in the short term by more than 10%, in the opinion of the Directors. A fall of 10% in the value of the unlisted (Level 3) portfolio at the half year would equate to £65m or 1.2% of net assets and a similar percentage rise would equate to a similar increase in net assets.

3 INCOME


	Half year ended 30 June 2025 £'000s	Half year ended 30 June 2024 £'000s
Income comprises:
UK dividends	4,972	4,340
UK bond income	-	1,205
Overseas dividends	59,191	57,673
Interest on short-term deposits and other income	522	843
Income	64,685	64,061

Included within income is £1.1m (30 June 2024: £1.2m; 31 December 2024: £3.6m) of special dividends classified as revenue in nature.

The value of special dividends treated as capital in nature is £0.2m (30 June 2024: £0.2m; 31 December 2024: £0.2m).

4 FEES AND OTHER EXPENSES AND INTEREST PAYABLE


	Half year ended 30 June 2025 £'000s	Half year ended 30 June 2024 £'000s
Fees and other expenses	12,100	12,450
Interest payable and similar charges	6,900	6,841
Total	19,000	19,291
Fees and other expenses comprise: Allocated to Revenue Account
- Management fees payable directly to the Manager*	2,370	2,242
- Other expenses	2,575	3,440
	4,945	5,682
Allocated to Capital Account
- Management fees payable directly to the Manager*	7,114	6,725
- Other expenses	41	43
	7,155	6,768
Interest payable and similar charges comprise:
Allocated to Revenue Account	1,725	1,710
Allocated to Capital Account	5,175	5,131

* Including reimbursement in respect of services provided by sub-managers

Since 1 January 2025 the Manager's remuneration has been paid at the rate of 0.30% per annum of the market capitalisation of the Company up to £3.5 billion, 0.25% between £3.5 billion and £6.0 billion and 0.20% above £6.0 billion, calculated at each month end date on a pro-rata basis. Prior to this the Manager's remuneration was based on a fee of 0.30% per annum of the market capitalisation of the Company up to £4.0 billion and 0.25% above £4.0 billion calculated at each month end date on a prorata basis. The fee is adjusted for fees earned by the Manager in respect of investment holdings managed or advised by the Manager or other members of the Columbia Threadneedle Investments Group. Variable fees payable in respect of third party sub-managers are also reimbursed. The services provided by the Manager remain unchanged from those disclosed within the accounts for the year ended 31 December 2024. The level of variable fees payable in respect of third party sub-managers and private equity managers remain unchanged since the year end.

5 TAXATION

The taxation charge of £7,403,000 (30 June 2024: £8,164,000) relates to irrecoverable overseas taxation and Indian tax on capital gains.

6 NET RETURN PER SHARE

Net return per ordinary share attributable to ordinary shareholders reflects the overall performance of the Company in the period. Net revenue recognised in the first six months is not indicative of the total likely to be received in the full accounting year.


	Half year ended 30 June 2025 pence	Half year ended 30 June 2025 £'000s	Half year ended 30 June 2024 pence	Half year ended 30 June 2024 £'000s
Revenue return	10.47	50,486	9.64	48,643
Capital return	(10.84)	(52,259)	118.85	600,043
Total return	(0.37)	(1,773)	128.49	648,686
Weighted average ordinary shares in issue excluding treasury shares (see note 11)		481,981,060		504,853,464

7 DIVIDENDS


Dividends paid and payable on ordinary shares	Register date	Payment date	Half year ended 30 June 2025 £'000s	Half year ended 30 June 2024 £'000s	Year ended 31 December 2024 £'000s
2023 Third interim of 3.40p	4-Jan-2024	1-Feb-2024	-	17,325	17,325
2023 Final of 4.50p	12-Apr-2024	9-May-2024	-	22,682	22,682
2024 First interim of 3.60p	28-Jun-2024	1-Aug-2024	-	18,003	18,003
2024 Second interim of 3.60p	4-Oct-2024	1-Nov-2024	-	-	17,594
2024 Third interim of 3.60p	3-Jan-2025	3-Feb-2025	17,371	-	-
2024 Final of 4.80p	11-Apr-2025	7-May-2025	23,137	-	-
			40,508	58,010	75,604

The Directors have declared a first interim dividend in respect of the year ending 31 December 2025 of 3.80p per share, payable on 1 August 2025 to all shareholders on the register at close of business on 4 July 2025. The amount of this dividend will be £18,281,000 based on 481,085,404 shares in issue on the ex-dividend date of 3 July 2025.

8 INVESTMENTS

Fair value hierarchy

The Company's Investments as disclosed in the balance sheet are valued at fair value.

The fair value as at the reporting date has been estimated using the following fair value hierarchy:

Level 1 includes investments and derivatives listed on any recognised stock exchange or quoted on the AIM market in the UK and quoted open-ended funds.

Level 2 includes investments for which the quoted price has been suspended, forward exchange contracts and other derivative instruments.

Level 3 includes investments in private companies or securities, whether invested in directly or through pooled Private Equity vehicles, for which observable market data is not specifically available.

The analysis of the valuation basis for financial instruments based on the hierarchy is as follows:


	30 June 2025 £'000s	30 June 2024 £'000s	31 December 2024 £'000s
Level 1	5,459,080	5,392,972	5,527,934
Level 3	652,789	603,026	636,591
Total valuation of investments	6,111,869	5,995,998	6,164,525

With respect specifically to investments in Private Equity, whether through funds or partnerships, the Directors rely on the latest available unaudited quarterly valuations of the underlying unlisted investments as supplied by the investment advisers or managers of those funds or partnerships. The Directors regularly review the principles applied by the managers to those valuations to ensure they are in compliance with the principal accounting policies as stated in the year end report and accounts.

No investments held at 30 June 2025, 30 June 2024 or 31 December 2024 were valued in accordance with level 2.

9 LOANS AND DEBENTURE


	30 June 2025 £'000s	30 June 2024 £'000s	31 December 2024 £'000s
Loans falling due after more than one year	579,977	579,609	578,726
Debenture falling due after more than one year	575	575	575
Comprising:
Sterling denominated loan, falling due after more one year	£544m	£544m	£544m
Euro denominated loan, falling due after more than one year	€42m	€42m	€42m
4.25% perpetual debenture stock	£0.575m	£0.575m	£0.575m

10 OTHER CREDITORS FALLING DUE WITHIN ONE YEAR


	30 June 2025 £'000s	30 June 2024 £'000s	31 December 2024 £'000s
Cost of ordinary shares repurchased	2,180	5,670	1,348
Investment creditors	12,916	27,665	5,667
Management fee payable to the Manager	2,729	3,748	2,647
Provision for Capital Gains Taxation on Indian Investments	578	1,933	727
Dividend payable	-	18,003	-
Other accrued expenses	2,310	2,709	2,520
	20,713	59,728	12,909


11 SHARE CAPITAL
Equity share capital	Number of shares held in treasury	Number of shares entitled to dividend		Total number of shares in issue	Nominal value of shares in issue £'000s
Ordinary shares of 25p each
Balance at 31 December 2024	79,286,468		482,532,548	561,819,016	140,455
Shares repurchased by the Company and held in treasury	1,345,627		(1,345,627)	-	-
Balance at 30 June 2025	80,632,095		481,186,921	561,819,016	140,455

1,345,627 shares were repurchased during the six months to 30 June 2025 at a cost of £14,999,000. Shares held in treasury have no voting rights and no right to dividend distributions and are excluded from the calculations of earnings per share and net asset value per share.


12 NET ASSET VALUE PER ORDINARY SHARE	30 June 2025	30 June 2024	31 December 2024
Net asset value per share -pence	1,168.20	1,105.66	1,176.82
Net assets attributable at end of period - £'000s	5,621,242	5,524,003	5,678,522
Ordinary shares of 25p in issue at end of period excluding shares held in treasury - number	481,186,921	499,613,015	482,532,548

Net asset value per share (with the debenture stock and long-term loans at market value) as at 30 June 2025 was 1,210.79p (30 June 2024: 1,145.47p and 31 December 2024: 1,219.64p). The market value of debenture stocks as at 30 June 2024 was £429,000 (30 June 2024 and 31 December 2024: £429,000). The market value of the long-term loans as at 30 June 2025 was £375,199,000 (30 June 2024: £380,845,000 and 31 December 2024: £372,235,000) based on the equivalent benchmark gilts or relevant commercially available current debt.

13 RECONCILIATION OF NET RETURN BEFORE TAXATION TO CASH FLOWS FROM OPERATING ACTIVITIES


	Half year ended 30 June 2025 £'000s	Half year ended 30 June 2024 £'000s	Year ended 31 December 2024 £'000s
Net return on ordinary activities before taxation	5,630	656,850	1,013,676
Adjust for non-cash flow items, dividend income and interest expense:
Losses/(gains) on investments	31,641	(611,228)	(935,609)
Exchange losses/(gains)	8,414	(852)	(4,224)
Non-operating expense of a capital nature	41	43	79
(increase)/decrease in other debtors	(87)	129	169
(Decrease)/increase in creditors	(106)	1,268	(40)
Dividends receivable	(64,163)	(62,013)	(108,917)
Interest payable	6,901	6,841	13,731
Tax on overseas income and Indian Capital Gains Tax	(8,458)	(8,388)	(15,031)
	(25,817)	(674,200)	(1,049,842)
Cash flows from operating activities (before dividends received and interest paid)	(20,187)	(17,350)	(36,166)

14 ANALYSIS OF CHANGES IN NET DEBT


	Cash £'000s		Long term loans £'000s	Debenture £'000s	Forward Exchange Contracts £'000s	Total £'000s
Opening net debt as at 31 December 2024		91,147	(578,726)	(575)	-	(488,154)

Cash-flows:
Net movement in cash and cash equivalents		(13)	-	-	-	(13)

Non-cash:
Effect of foreign exchange movements		(8,464)	(1,251)	-	1,301	(8,414)

Closing net debt as at 30 June 2025		82,670	(579,977)	(575)	1,301	(496,581)

15 GOING CONCERN

In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the Financial Reporting Council. They have also considered the Company's objective, strategy and policy; current cash position; the availability of loan finance; compliance with all financial loan and private placement covenants; and the operational resilience of the Company and its service providers. It is recognised that the Company is mainly invested in readily realisable, globally listed securities that can be sold, if necessary, to repay indebtedness.

Based on this information and their knowledge and experience of the Company's portfolio and stockmarkets, the Directors believe that the Company has the ability to meet its financial obligations as they fall due for a period of at least twelve months from the date of approval of these financial statements. Accordingly, these financial statements have been prepared on a going concern basis.

STATEMENT OF PRINCIPAL AND EMERGING RISKS

The Company's principal and emerging risks are described in detail under the heading 'Principal and Emerging Risks' within the Strategic Report in the Company's annual report for the year ended 31 December 2024. They have been identified as: Unsatisfactory Investment Performance; Geopolitical Actions; Service Delivery Failure; Discount; Cybercrime; Loss of Key Person; Failure to Transition to Net Zero; Disruptive Technology and Responsible Investment Disclosure.

In the view of the Board, there have not been any material changes to the fundamental nature of these risks and they are applicable to the remainder of the financial year.

DIRECTORS' STATEMENT OF RESPONSIBILITIES IN RESPECT OF THE HALF YEAR FINANCIAL REPORT

In accordance with Chapter 4 of the Disclosure Guidance and Transparency Rules, the Directors confirm that to the best of their knowledge:

· the condensed set of financial statements has been prepared in accordance with applicable UK Accounting Standards on a going concern basis and gives a true and fair view of the assets, liabilities, financial position and net return of the Company;

· the half year report includes a fair review of the important events that have occurred during the first six months of the financial year and their impact on the financial statements;

· the Statement of Principal and Emerging Risks shown above is a fair review of the principal and emerging risks for the remainder of the financial year; and

· the half year report includes a fair review of the related party transactions that have taken place in the first six months of the financial year.

On behalf of the Board

Beatrice Hollond

Chairman

31 July 2025

Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the Company's website (or any other website) is incorporated into, or forms part of, this announcement.

Columbia Threadneedle Investment Business Limited,

Company Secretary

ENDS

A copy of the half report will shortly be submitted to the National Storage Mechanism and will be available f or inspection at www.fca.org.uk

The half year report will be posted to shareholders and made available on the internet at www.fandc.com shortly. Copies may be obtained during normal business hours from the Company's Registered Office, Cannon Place, 78 Cannon Street, London EC4N 6AG.

Columbia Threadneedle Investment Business Limited

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