Audited Statement of Results for the year ended 31.12.2019

PLEASE SEE THE ATTACHMENT FOR THE FULL STATEMENT OF RESULTS F&C INVESTMENT TRUST PLC Audited Statement of Results for the year ended 31 December 2019. LEI: 213800W6B18ZHTNG7371 16 March 2020 F&C Investment Trust PLC ('FCIT'/'Company') today announces its results for the year ended 31 December 2019. o FCIT's share price was 765.0 pence representing a total return of 22.9%, ahead its benchmark, the FTSE All-World Index, of 22.3%. o FCIT's Net Asset Value ("NAV") total return gained 19.1%, with debt at market value. Private Equity performance and some underperformance from some listed portfolio strategies, held the NAV returns below benchmark. o Exposure to listed equity markets delivered strong gains, whereas the Private Equity holdings produced marginally positive returns due to declines in value of the residual mature funds of funds holdings and Syncona. o The newer commitments to Private Equity produced satisfactory returns. Private Equity has a strong record of delivering higher returns than listed equities in FCIT's portfolio and this is expected to continue. o The final dividend will be 2.9 pence per share, subject to shareholder approval, will bring the total dividend for the year to 11.6 pence per share. This will be a 5.5% increase, the 49th consecutive annual increase, and well ahead of the Consumer Price Index of 1.3%. o The shares ended the year at a premium of 1.5% having opened the year at a discount of 1.5% and averaging a 2.2% discount overall. The Chairman's Statement Dear Shareholder, In this, the first Report and Accounts for which I report to you as Chairman, we explain more about our purpose, values and culture. Much can be traced back to our foundation as the first investment trust in 1868 when FCIT was established to provide access to the capital markets for people wishing to invest, not least those with relatively modest means. Your Board recognises and values the contribution and benefits of that vision to this day, not only for shareholders but also for society at large. Global equity markets have fallen sharply in recent days, in stark contrast to 2019 when they delivered annual returns which ranked among the strongest in decades. Our share price total return was 22.9%, ahead of the 22.3% from the FTSE All-World Index against which we benchmark our performance. Our Net Asset Value ("NAV") with debt at market value gained 19.1%. There was further improvement in the rating of your Company (the level at which the share price trades relative to NAV), with the shares ending the year at a premium of 1.5%. Our NAV per share with debt at market value rose from 642.9 pence per share to 753.9 pence per share and our share price rose from 633.0 pence to 765.0 pence. In common with major equity market indices, our share price ended the year close to record highs. Our exposure to listed equity markets delivered strong gains but our Private Equity holdings, which by their nature as unlisted investments will always lag valuation changes reflected in listed markets, produced only marginally positive returns. Our newer commitments to unlisted exposure produced satisfactory returns but our holdings in Syncona and residual mature funds of funds declined in value. Underperformance of the Private Equity exposure as a whole was driven by the valuation declines of these particular funds. Private Equity and underperformance from some of our listed strategies, notably North America and Emerging Markets, left our NAV total return below benchmark. Private Equity has a strong record of delivering higher returns than listed equities in FCIT's portfolio and we expect this to continue to be the case over the longer term. We have historically referenced the total return of the FTSE All-World Index inclusive of withholding tax when reporting our performance and have done so again for 2019. In future we will report against the FTSE All-World Index net of withholding tax as this is a more realistic representation for comparing our performance given the negative effect of these taxes on returns as an investor in overseas equities. It is also consistent with most of our peers. The total return of the FTSE All- World Index net of withholding tax for 2019 was 21.6%. On page 11 we are showing the comparisons of the total returns on a gross and net basis as part of our Key Performance Indicators. The benefits of our long-term focus Our overriding objective is to provide sustainable long-term growth in capital and income and, in this regard, it is instructive to consider our historic performance as we begin a new decade. Ten years ago, the global economy was emerging from the Global Financial Crisis and the consequent severe bear market across the world. The ten-year period to the end of 2019 saw your Company deliver a total return of 248.7%, equivalent to an annual return of 13.3% per annum. Over the past twenty years, the total return was 367.3%, equivalent to 8.0% per annum. Thus, this past decade produced extraordinary returns for investors in equities. It also demonstrates the importance of income to investor returns and the power of compounding over time. Our capital returns over the past twenty years amounted to 209% which, with reinvested dividends, brought the total return up to the 367.3% figure that I have mentioned. Dividends paid to shareholders have risen by 5.7% per annum over the past ten years and by 7.2% over the past twenty years. Earnings and Dividends Earnings posted gains over the year, rising to ?70.9m, including the positive benefits of exchange rate movements estimated to be ?2.3m (2018: negative ?1.1m) and special dividends of ?3.7m (2018: ?3.9m). Our Net Revenue Return per share rose to 13.1 pence per share from 12.8 pence per share in 2018, boosted by an increase in dividends received and a slight reduction in expenses. Subject to shareholder approval at the Annual General Meeting ("AGM"), shareholders will receive a final dividend of 2.9 pence per share on 13 May 2020 bringing the total dividend for the year to 11.6 pence. This is a rise of 5.5%, which compares with the 1.3% rise in the Consumer Price Index. It adds to our long record of increases in real terms and is our forty ninth consecutive annual dividend increase and our one hundred and fifty second annual dividend. The total dividend proposed for the year is, once again, fully covered by earnings and we remain confident that the Company will continue to deliver sustainable rises in dividend payments for the foreseeable future. After payment of the final dividend our revenue reserve will continue to exceed one year's worth of dividends. Company rating After making our first issuance of shares for decades in 2018, we continued to make progress in our rating with modest net share issuance of 0.34m in 2019. The shares had started the year at a discount of 1.5% and continued to trade at or around NAV for much of the first half before it widened, temporarily, due to Brexit concerns which reduced demand from retail investors. As part of our commitment towards a sustainably low deviation between the share price and NAV, we bought back shares during this period. The discount averaged 2.2% over the year but had moved to a premium of 1.5% by its end, with a total of 1.65m shares reissued from treasury. Contributors to total return in 2019 % Portfolio return 18.4 Management fees (0.4) Interest and other Expenses (0.3) Buy-backs 0.0 Change of value of debt (0.5) Gearing/other 1.9 NAV total return 19.1 Change from discount to premium 3.8 Share price total return 22.9 FTSE All-World total return 22.3 Source: BMO GAM Cost efficiency The returns that we are reporting are net of the costs that we incur and we are pleased to report a further reduction in our Ongoing Charges figure, which fell slightly to 0.63% (2018: 0.65%). This reduction follows several years in which this measure of cost efficiency has improved considerably. The tiered management fee structure that took effect at the beginning of 2019 helped to contain costs. This is designed to bring down our cost ratios as the Company grows, with the benefits of scale being passed on to shareholders. Delivering value for money for shareholders remains one of our key performance objectives. Borrowings In recent years we have taken advantage of low interest rates to undertake new long-term borrowings. In 2019, we borrowed a further ?150m equivalent for terms ranging from seven to forty years. Rates on these loans ranged from 0.93% to 2.72%. These borrowings, combined with our other short-term and long-term loans, led to a blended overall rate on our borrowings of around 2.2%, which is extremely low by historic standards. Provided that our assets can deliver returns above this rate over the term of the borrowings then our gearing will be accretive for NAV returns. Fulfilling our purpose Companies that are subject to the UK Code of Corporate Governance (the "UK Code") now have to explain their purpose. Our purpose is essentially unchanged since inception as The Foreign & Colonial Government Trust back in 1868. The purpose then was to provide the investor of relatively moderate means access to the same opportunities and advantages as the very largest investors and diminish risk by investing across a wide area; then, for the very first time, the investor with ?100 had the same pro rata investment benefits and costs as other investors with as much as ?100,000. For the same fundamental purpose we now invest in global equities, both public and private, and continue to provide a diversified, convenient and cost-effective global investment choice that meets the longer term investment needs of investors large or small. This purpose, coupled with the long track record of investing well, should help our shareholders to plan for the future even in more uncertain times. We believe that with innovation, adaptation and diversification inherent in our long-term strategy we can continue to deliver sustainable returns and rises in dividends. In addition to strong investment performance from our Manager, we expect them to adhere to the very highest standards of environmental, social and governance practice given their diverse, collaborative and forward thinking organisational culture. In alignment with this culture and the values that we share with BMO Global Asset Management, we aim to pursue our strategy and objective through the consistent application of the very highest standards of transparency, corporate governance and business ethics. Financial education - a social need The Foreign & Colonial Government Trust was founded on strong values that centred around the democratisation of capital markets with contemporary newspaper commentary attesting to FCIT as being "universally recognised as meeting a public want." Those social values exist today as we develop, albeit in a small way, our financial education programme. This is designed to help people understand better the opportunities and significance of not just saving, but how their savings can work much harder through investment over the longer term. We are therefore focused on helping students to become financially aware and in 2019 partnered with four universities and colleges to run the "F&C Investment Trust Prize", a competition designed to inspire financial thinking among students and showcase their financial knowledge. At a more junior level and by working with a small but growing number of primary schools, we have been introducing basic savings concepts to much younger children. We plan to continue to build on these activities in coming years. Board composition My predecessor, Simon Fraser, retired from the Board on 31 December 2019. On behalf of the Board, I would like to register my sincere thanks to Simon for the outstanding role which he played as Chairman from May 2010. Simon demonstrated vision and leadership while holding true to the Company's great heritage and values and helped to steer FCIT through a number of challenges, including dealing with the aftermath of the 2008 financial crisis and ownership changes affecting the management company. The achievement of a premium rating and resultant share issuance is testament to the progress made and marked a fitting end to Simon's tenure. One of my responsibilities as Chairman is to lead the Nomination Committee and maintain a strong Board by replacing longer serving members with those of equally high calibre. Shareholders can therefore expect to see some new Directors over the next year or so. In this regard, I am pleased to report the appointment of Quintin Price on 10 March 2020 as a first step in a sequence of these planned changes. Quintin brings us senior level experience in both investment management and investment banking and we look forward to working with him. Outlook The rise and spread of COVID-19, coronavirus, has seen increased risks of widespread economic disruption with simultaneous demand and supply side shocks for global and corporate earnings. This is being reflected in substantial falls in equity markets worldwide. We expect that policymakers will attempt to contain both the economic and financial market impact through concerted monetary and fiscal easing. As at 12 March 2020, FCIT's NAV per share was 586.6 pence per share, a fall of 22.2% since 31 December 2019. The share price fell by 24.6% to 577.0 pence per share. FCIT has weathered many a crisis throughout its long history and even though there are likely to be economic and equity market challenges in the near-term, your Company has a diversified portfolio that is well placed to cope with market shocks and short-term volatility. There are risks and there will be opportunities. Shareholders can be assured that, at all times, we will retain our focus on delivering growth in both capital and income over the longer term. Beatrice Hollond Chairman 13 March 2020 End CA:00350035 For:FCT Type:FLLYR Time:2020-03-17 08:30:53