Audited Statement of Results for the year ended 31.12.18

PLEASE SEE ATTACMHMENT FOR FULL ANNOUNCEMENT Date: 12th March 2019 Contact: Paul Niven BMO Management Limited 020 7011 4385 F&C INVESTMENT TRUST PLC ("FCIT" or the "Company") Audited Statement of Results for the year ended 31 December 2018 Summary of Results In the most challenging year since the Global Financial Crisis, FCIT delivered a share price total return of -0.6%, better than the benchmark's -3.4% Net asset value (NAV) total return of -3.3% with debt at market value Annual dividend per share up 5.8% to 11.0p, well above the 2.1% rise in the Consumer Price Index; the 48th consecutive annual increase and now over 150 years of annual payments Discount narrowed to 1.5% at the year end and for much of the second half the shares traded at a premium resulting in the first issue of shares since 1959 Ongoing Charges declined from 0.79% to 0.65% helped by a switch out of Global Multi-Manager funds portfolio and a new tiered fee arrangement with its Manager 10-year share price total return of 247.5%, equivalent to 13.3% per annum The Chairman's Statement Dear Shareholder, After enjoying several years of double digit returns, our 150th anniversary year turned out to be the most challenging for equity markets since the Global Financial Crisis. Despite these headwinds our total shareholder return of -0.6% was better than the -3.4% from the FTSE All-World Index, which we use as our benchmark. Our Net Asset Value ("NAV") total return, with debt at market value, was -3.3%. Our NAV per share with debt at market value fell from 675.8 pence to 642.9 pence per share and our share price declined from 647 pence to 633 pence. These had both reached record highs during the year, but a change in sentiment led the US to joining other markets in ending down and resulted in a fall in the value of most of our investment portfolios. Despite the turn in sentiment our US investment portfolio performed relatively well. This, along with good relative returns from our Emerging Markets exposure and very strong absolute gains from our Private Equity portfolio, which is strategically positioned to provide higher returns than the listed equity portfolios over the longer term, helped in our modest outperformance of the benchmark. A focus on the longer term While our one-year performance numbers are important, our overriding investment objective centres on the delivery of longer term growth of capital and income rather than the short-term. I am pleased to say that over ten years the share price total return is 247.5% which is equivalent to 13.3% per annum. Over twenty years it is 406.9%, which equates to 8.4% per annum. Dividend growth has also been strong, with an annualised rise of 5.5% in payments over the past decade and 7.1% over the past twenty years. Earnings and Dividends It was another good year for our income. This rose to ?87.9m, helped in part by ?3.9m of special dividends, with Net Revenue Return per share up to 12.8 pence per share from 11.7 pence per share in 2017. Subject to shareholder approval at the Annual General Meeting ("AGM"), shareholders will receive a final dividend of 2.8 pence per share on 8 May 2019 bringing the total dividend for the year to 11.0 pence. This rise of 5.8% compares with the 2.1% rise in the Consumer Price Index. This adds to our long record of rises in real terms; will be our forty-eighth consecutive annual dividend increase; and, remarkably, will add to our record of paying a dividend in each year since 1868. The total dividend proposed for the year is fully covered by earnings, and we remain confident that your Company will continue to deliver sustainable real rises in dividend per share to shareholders. After payment of the final dividend our revenue reserve will continue to exceed one year's worth of dividends. Further improvement in the Company's rating Our 150th anniversary year saw our long-held aspiration of the Company's shares trading at or close to NAV per share being reached and our first issue of shares since 1959. We started the year on a discount of 4.3% but, due to improved investor demand, this narrowed to 1.5% by its end. Our average discount was 1.3% and for much of the second half of the year our share price traded at a premium to NAV. The share issue was made in November and took the form of a resale of shares that had been held in treasury as part of our progressive discount control strategy announced in May 2015. This issuance is believed to be the first that the Company has made at a premium to NAV in its 150-year history. Adherence to a discount control policy for nearly twenty years and the narrowing of the discount more recently has helped to enhance returns for continuing shareholders. For the first time since 2002, no shares were bought back. Nevertheless, we are firmly committed to the use of buybacks in normal market conditions for the benefit of shareholders in the event of a re-emergence of the discount. Contributors to total return in 2018 % Portfolio return (2.2) Management fees (0.4) Interest and other Expenses (0.2) Buy-backs 0.0 Change of value of debt (0.1) Gearing/other (0.4) Net Asset Value total return (3.3) Decrease in discount 2.7 Share price total return (0.6) FTSE All-World total return (3.4) Source: BMO GAM Name changes In considering our desire to continue to grow the Company and the optimal delivery of its investment proposition to future investors in a rapidly changing digital world, we have reviewed how the Company is best identified and recognised on investment platforms and in other forums. The review led us to change the Company's name by resolution of the Board on 9 November 2018 from Foreign & Colonial Investment Trust PLC to F&C Investment Trust PLC in accordance with approval given at last year's AGM. We believe prospective investors will now find it easier and quicker to find us. At the same time as our name change, BMO Financial Group changed the name of our management company from F&C Investment Business Limited to BMO Investment Business Limited (the "Manager") and rebranded the F&C Savings Plans to "BMO". Cost efficiency and Manager fee review One of our Key Performance Indicators is cost efficiency as cost control is an important factor in the delivery of long-term growth to shareholders. We therefore keep costs under scrutiny and review and report two measures to shareholders. Our Total Costs ratio fell from 1.06% to 1.01% for 2018 while our Ongoing Charges figure, which is more forward looking, declined from 0.79% to 0.65%. The reduction in these ratios reflect the benefits of scale obtained as a large investment trust and lower investee funds charges following a strategic switch out of the Global Multi-Manager funds portfolio in the latter part of the year. We have also put in place, with effect from 1 January 2019, a tiered fee structure under which our Manager's fee will now be based on a rate of 0.35% per annum of the market capitalisation of the Company up to ?3.0 billion, 0.30% between ?3.0 and ?4.0 billion, and 0.25% above ?4.0 billion. This will help bring down our cost ratios further as the Company grows with the benefits of scale being passed on to shareholders. Financial and corporate reporting As we explain in the Report and Accounts, we take our investment responsibilities very seriously and hold companies to the highest governance standards. It is therefore imperative that we take our own governance seriously and follow best practice requirements as closely as we can. We were pleased that a routine review of our Report and Accounts 2017 by the Conduct Committee of the Financial Reporting Council raised no questions or queries from a legal and accounting perspective. We were also very pleased to receive the AIC's Best Report and Accounts award in the Generalist category. We are adopting early key aspects of the revised UK Code of Corporate Governance published in 2018 and have, for the first time, included in our Strategic Report a separate statement as to how we, as Directors, have fulfilled our duties in taking into account the wider interests of stakeholders in promoting the success of the Company. As part of this we have provided more information on our approach towards environmental, social and governance issues and some insight into shareholder engagement activities carried out by our Manager. We will continue to aspire to the very highest standards of corporate reporting. AGM and succession planning The AGM will return to its usual venue this year, Merchant Taylors' Hall on Thursday 2 May 2019 at 12 noon. I will stand for re-election along with my colleagues on the Board but, as announced in October 2018, intend to retire as a Director during the course of the year. It has certainly been a great privilege to have been so closely involved with F&C Investment Trust during its 15th decade. The search for a new Chairman has commenced under the leadership of our Senior Independent Director, Sir Roger Bone. In terms of succession planning generally, and in accordance with the Board's tenure policy, the implementation of a sequence of other directorship changes can be expected to follow the appointment of the new Chairman and continue over the next few years. Past, present and future On the morning of our birthday in March last year we were given the honour of opening trading at the London Stock Exchange and were acknowledged as being not only the first investment trust, but also the company with its longest continuous listing. Throughout the year we were able to acknowlege the pioneering spirit and relentless focus of our Boards and Fund Managers over the last fifteen decades on our core purpose of providing the investor of moderate means access to an internationally diversified portfolio. The consistency of our approach has delivered amazing returns for our shareholders through the power of long-term compounding of returns. We have calculated that an original investment of ?100 with dividends reinvested compounding at 8.1% per annum has grown to around ?12m. While it is important to recognise and celebrate the Company's past and present successes there will be no complacency about the future. Be assured that your Board continues to work hard towards ensuring that the foundations, structure and resources for the continuing longer term sustainable success of the Company are in place, that the investment and marketing propositions are fit for purpose and our diversified portfolio provides great value. Building educational foundations We also recognise that we have our own part to play within the financial services industry in helping people to understand the benefits of using their savings to invest for the longer term. This is becoming increasingly important as today individuals must plan much better if they are to secure their own financial wellbeing. We are particularly focused on the younger generations by partnering with a number of financial and educational organisations. We are working with students of leading educational institutions who are about to enter the workforce, with a view to helping them appreciate and understand the value of investing for their long-term future. Through our schools roadshow, we are introducing primary-level children to the idea of saving; helping them understand basic concepts such as inflation and compound interest. We intend to build on these initiatives to create a lasting educational legacy from our 150th anniversary year. Outlook The future political and economic environment is perhaps even more uncertain than ever with only a few weeks until we are expected to leave the European Union but still no clarity as to how we are going to do so. Globally, as well, there are question marks on the major trading relationships between China and the US. Additionally the speed with which technology is disrupting traditional industries continues to accelerate. While this extraordinary uncertainty presents considerable risks, it also creates significant opportunities for new economic activity and new companies. While traditional global trade routes are under threat, new ones are developing. Through its diversified approach to investing around the world in both private and public companies both new and old, F&C Investment Trust is well positioned to take advantage of these opportunities while weathering the storms. For over 150 years the Company has endured rapid inflation as well as deflation, world wars as well as economic booms and busts but by taking a long-term approach to prudent risk taking across a well diversified portfolio of stocks and shares it has continued to deliver for its individual shareholders. I have great confidence that it will continue to do so in the years ahead. Simon Fraser Chairman 11 March 2019 End CA:00331867 For:FCT Type:FLLYR Time:2019-03-13 08:31:47