Unaudited Statement of Results – half year ended 30.6.18

PLEASE SEE ATTACHMENT FOR FULL RESULTS Contact:Paul Niven - Fund Manager 0207 011 4385 F&C Investment Business Limited FOREIGN & COLONIAL INVESTMENT TRUST PLC Unaudited Statement of Results for the half-year ended 30 June 2018 SUMMARY OF UNAUDITED RESULTS FOR THE HALF-YEAR ENDED 30 JUNE 2018 o Our share price was 693.0 pence representing a total return of 8.0% o Our net asset value total return was 3.7% which compares with 2.1% from our benchmark, the FTSE All-World Index o Our share price discount to NAV narrowed to just 0.2%; the lowest discount level for over twenty years o The first interim dividend will be 2.7 pence per share while another above-inflation rise is planned for the 2018 total dividend. This will mark the 48th consecutive annual increase Chairman's Statement Markets and performance In our 150th year I am pleased to report further outperformance. Our shareholder and Net Asset Value ("NAV") returns exceeded the benchmark: total shareholder return was 8.0% and NAV return 3.1% versus 2.1% from the benchmark FTSE All-World Index. Our share price discount to NAV narrowed to just 0.2% over the first half, the lowest discount level for over twenty years. This starts to meet our long-held aspiration of seeing the Company's shares trading at or close to NAV. There were no buybacks in the period. Year on year, the share price total return was 20.3%. While positive corporate earnings and a generally robust global economy supported sentiment for much of the period, rising US inflation and worries over Federal Reserve rate tightening weighed on global equity markets as the period progressed. There were also increasing worries about the prospect of a full-blown trade war, especially after the Trump administration unveiled planned tariffs of a variety of foreign imports. The threat of retaliation from China and other nations prompted fears of escalation, with negative repercussions for the global economy and corporate earnings. With regard to earnings, the US again led globally, with upgrades to expectations helping to drive returns. Indeed, optimism over the outlook took equity markets markedly higher in the early part of the period with accelerating gains driving the US and UK indices to new record highs before a reappraisal of prospects led to a tempering of enthusiasm and, following a sharp setback, more modest returns. It was, once again, the so-called 'disruptors' which produced a large portion of market gains. Amazon, for example, posted spectacular gains of over 45% in the first six months of the year, closing the gap on Apple in the race to be the first US company to reach a value of $1 trillion. Gains in these growth stocks, the key drivers of this long bull market, were supplemented by strong returns from oil companies as the crude price rallied in response to renewed sanctions on Iran and concerns over a reduction in supply. By contrast, it was a poor period for performance of banks, with European exposure particularly weak as disappointing economic data, concerns relating to Italian politics and ongoing woes of Deutsche Bank (not held by the portfolio but down by over 40%) weighed on sentiment. Within our portfolio North American strategies produced the strongest returns in both absolute and relative terms. Gains from US growth stocks, of 14.9%, led to a return of 8.8% from this region. Only our private equity holdings, posting returns of 9.6% in the first half, exceeded this regional gain. Both these areas benefited from a modest decline in sterling versus the US dollar which, after early gains, fell back as sentiment on the ongoing Brexit negotiations continued to weigh. Other areas of the portfolio generally exceeded market comparators but produced more muted returns. Our European exposure eked out a gain of 0.3%, ahead of market losses there while our UK exposure produced a return of 3.2%, ahead of the 1.6% gain from the market. Elsewhere, our Global Strategies outperformed, buoyed by a 6.4% gain from Small Cap exposure while Emerging Markets lagged developed market returns, suffering from strength in the US dollar, rising US interest rates and concerns over trade. Our exposure here declined by 3.3%, falling by less than market comparators. Japan lagged market returns and also declined in value by 2.2% over the period. Globally, interest rates now appear to be on a rising path with the US Federal Reserve hiking to 2% and the European Central Bank indicating their intention to cap their bond-buying programme by year-end. Even in the UK, which has seen a marked slowdown in growth and some rise in inflation, the Bank appears more balanced with regards to their intentions on future rates rises. Against this backdrop, we took advantage of attractive borrowing rates to secure a 30 year private placement, borrowing ?75m at a rate of 2.92%. Our gearing level rose modestly to end the period at 6.8%. Contributors to total returns in first half of 2018 % Portfolio return 3.7 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* 3.7 Decrease in discount 4.3 Share price total return 8.0 FTSE All-World Total Return 2.1 *Debt at market value Source: F&C Income and Dividends Our net revenue return per share rose 7.5%, to 7.78p, in the first six months of the year on the equivalent period of 2017. We benefited from a rise in special dividends, which rose to ?3.9m, from ?2.1m in the comparative period of 2017. We paid a third interim dividend of 2.7p per share for the year ended 31 December 2017 in February 2018 and a final dividend of 2.7p in May. The first interim dividend of 2.7p for 2018 will be paid on 1 August. It is the intention of the Board to deliver another real rise in dividends for 2018. This will mark the forty-eighth consecutive rise in annual dividends from your Company. 150th Anniversary and beyond Your Company celebrated its 150th anniversary in March of this year. A key feature of its success over time has been its steadfast focus on the longer term. To ensure this milestone is celebrated in keeping with these values and in a meaningful way for all shareholders, we have taken the opportunity to undertake a wide range of activities designed to strengthen its position in the future financial landscape. These include financial education across schools and universities as we reach out to the next generation of investors. Change of Name and branding of the savings plans Following shareholder approval in April, the Directors will change the legal name of your Company to "F&C Investment Trust PLC" later in the year. In deciding on this change, and in keeping with our focus on the future, we took into consideration its identification and ease of access on platforms and other digital media. Our Fund Manager, F&C Asset Management, recently announced their intention to transition their remaining F&C branded products and funds to their parent company brand later in the year; that is to say, to the "BMO" (Bank of Montreal) brand that has appeared on much of their literature over the past three years. Their savings plans, through which many of our shareholders invest, will also align to the BMO brand. Outlook Our current assessment is that, while risks and concerns over issues such as trade and the impact of rising interest rates abound, the fundamental backdrop remains broadly supportive for equity investment. Selectivity within our strategies will again be needed and it will remain important to adopt a diversified approach as risks rise. Over the longer-term our strategies are typically focused on businesses with sustainable business franchises supported by strong cash flow generation and attractive valuations against growth prospects. This selective approach should continue to offer attractive returns against other assets, where valuations appear particularly extended. Your Company remains well positioned to withstand any short-term volatility and to continue to deliver long-term growth in capital and income. Simon Fraser Chairman 27 July 2018 End CA:00321498 For:FCT Type:HALFYR Time:2018-07-31 08:31:32