Audited Statement of Results for the year ended 31.12.2020

PLEASE SEE ATTACHMENT FOR THE FULL STATEMENT OF RESULTS F&C INVESTMENT TRUST PLC Audited Statement of Results for the year ended 31 December 2020. LEI: 213800W6B18ZHTNG7371 10 March 2021 F&C Investment Trust PLC ('FCIT'/'Company') today announces its results for the year ended 31 December 2020. o FCIT's share price was 787.0 pence representing a total return of 4.6%. o FCIT's Net Asset Value ("NAV") total return of 12.3%, with debt at market value, was marginally behind the 12.4% from its benchmark, the FTSE All-World Index. o The difference between the strong gains as reflected in FCIT's NAV total return and the share price total return was the result of the shares moving from a premium rating at the beginning of the year to a 5.4% discount by its end. o The listed and private equity holdings posted strong gains with those from the North American, Japanese and European holdings offsetting underperformance from the Global Strategies and Emerging Markets. This and a rise in the fair value of outstanding debt contributed to the in-line benchmark performance. o FCIT expects its borrowings to add value to shareholders until maturity many years into the future but, with market interest rates falling, 'marking to market' of the debt to reflect its current fair value detracted from its NAV total return in 2020. o The final dividend will be 3.4 pence per share, subject to shareholder approval, and will bring the total dividend for the year to 12.1 pence per share. This will be a 4.3% increase, the 50th consecutive annual increase, and well ahead of the Consumer Price Index of 0.6%. o FCIT is committing to transition its portfolio to net zero carbon emissions by 2050 at the latest. Commenting on the markets, Paul Niven, Fund Manager of FCIT, said: "2020 may come to be regarded as the year in which sustainable investing came of age. We see great opportunity for shareholder returns to be enhanced through a focus on companies engaging in sustainable business practices." The Chairman, Beatrice Hollond, said: "FCIT has been resilient, responsible and prosperous for over 150 years and we are pleased to announce our commitment to transition the portfolio to net zero carbon emissions by 2050 at the latest. Our focus has always been on delivering sustainable growth in capital and income over the longer term. Shareholders can be assured that it will remain so." 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 0207 011 4385 Campbell Hood campbell.hood@bmogam.com Tel: +44 (0)20 7011 4243 FTI Consulting bmo@fticonsulting.com Tel: +44 (0) 20 3727 1888 About FCIT: o Founded in 1868 - the oldest collective investment trust o A diversified portfolio provides exposure to most of the world's stock markets, with exposure to over 400 individual companies across the globe o Its aim is to generate long-term growth in capital and income by investing primarily in an international portfolio of listed equities The Chairman's Statement Dear Shareholder, 2020 was a tumultuous year, with the impact of Covid-19 leading to a sharp downturn in the global economy, an abrupt end to the longest equity bull market in history, and extreme levels of volatility in financial markets. Nevertheless, our share price total return was 4.6% for the year and our Net Asset Value (NAV) total return, taking debt at market value, was 12.3%, just slightly behind the 12.4% total return from the Company's benchmark index. The shares had started the year trading on a premium rating but by the year end had moved to a discount of 5.4%, which is reflected in the difference between the strong NAV total return and relatively lower share price total return. Our NAV per share with debt at market value rose from 753.90p to 831.78p and our share price rose from 765.0p to 787.0p, ending the year close to a record high. Our portfolio of investments delivered returns in line with the benchmark. Our listed equity market holdings posted good absolute gains and our private equity holdings performed better still. We enjoyed favourable returns from our listed North American holdings, where our exposure to growth and technology stocks delivered exceptional returns. Our Japanese and European strategies also provided good absolute and relative levels of return. Elsewhere, there was underperformance from several of our listed Global Strategies and our Emerging Markets holdings which, together with a rise in the fair value of our outstanding debt, contributed to the overall in-line NAV return. Purpose and resilience Our purpose has remained relevant and essentially unchanged throughout our long history, while our structure and ethos as an investment trust is once again showing resilience in the face of global turmoil. During 2020, and into 2021, the Covid-19 global pandemic has led to multiple lockdowns across the globe causing disruption to business operations and restricting domestic and international travel. The Board now holds its meetings online and our management company has proven it can continue to operate effectively under its contingency work-from-home arrangements, as do our other third-party service providers. The investment, support and compliance monitoring teams all continue to perform their roles effectively. It is best practice for boards of directors to test the magnitude of events that could potentially force their companies to cease operating. As part of our annual robust review of risks and controls, we have carried out this test and further tests that help assess the Company's short to medium-term resilience and its longer term viability. I am very pleased to report that the results confirm that the Company continues to be well positioned to withstand further impacts from events such as significant market shocks, potential short-term liquidity issues and substantial falls in dividend income. Meeting longer term investment needs While short-term results are important, our aim is to meet the longer term needs of shareholders with the overriding objective of delivering long-term growth in capital and income. Despite periodic volatility, and indeed the market shock triggered by Covid-19, investors in equities have enjoyed a period of extraordinary returns over recent decades. Our results continue to show the importance of taking a long-term perspective and how compounding of returns leads to wealth creation for investors. Over the ten-year period to the end of 2020 your Company delivered a total shareholder return of 213.0%, equivalent to a total return of 12.1% per annum. Over the past twenty years, our total shareholder return was 350.3%, equivalent to a total return of 7.8% per annum. These figures highlight the significance of dividend reinvestment and the effect of compounding over time. Our capital returns over the past twenty years amounted to 194.2%, which with dividends reinvested resulted in the twenty year total return of 350.3%. Dividends paid to shareholders have risen by 6.0% per annum over the past decade and by 7.0% per annum over the past twenty years. As ever, we remain resolutely focused on meeting our purpose and extending our strong record of delivering long-term growth in both capital and income for shareholders. Fiftieth consecutive annual dividend increase Our net revenue fell in the year to ?52.5m which included special dividends of ?1.2m (2019: ?3.7m). The impact of currency movements was estimated to be modestly detrimental, detracting ?0.4m (2019: positive effect of ?2.3m). Our net revenue return per share fell to 9.71 pence per share from 13.06 pence per share in 2019, which was the largest annual decline since 2009. Nevertheless, and subject to approval at the forthcoming Annual General Meeting (AGM), shareholders will receive a final dividend of 3.4 pence per share on 13 May 2021, bringing the total dividend for the year to 12.1 pence. This rise of 4.3% compares with the 0.6% rise in inflation, as measured by the Consumer Price Index. Furthermore, it adds to our long record of rises in real terms and we are delighted to pay our fiftieth consecutive increased annual dividend. It will also be our one hundred and fifty third annual dividend payment. In years where our income exceeds dividend payments, we are able to take advantage of our structure as an investment trust and be prudent by transferring some of that income to our Revenue Reserve. This in turn gives us the ability to draw on our Revenue Reserve to help fund this year's dividend payment; it will continue to exceed one year's worth of annual dividends after that payment. Furthermore, our capital reserves, which stood at over ?4.0 billion at year end, provide considerable flexibility for us to continue to deliver future rises in dividends. It remains our aspiration to continue to deliver real rises in dividends to shareholders over the long-term. Company rating and efficiency Your Company issued shares in both 2018 and 2019 and started the year at a premium rating of 1.5%. Our rating deteriorated in the first half of the year in the face of the pandemic and we moved to a discount as demand for our shares diminished and equity markets dropped sharply. We bought back a total of 6m shares into treasury during the year as part of our commitment towards a sustainably low deviation between the share price and NAV. The discount averaged 6.1% over 2020 and ended the year at 5.4%. We regard costs as critical and have always taken a very conservative view of both how we manage and report on them as they can have a significant impact on long-term returns to investors. Our Ongoing Charges figure reduced from 0.63% to 0.59%, continuing the desired downward trend of recent years. This measure takes account of costs expected to be regularly incurred and does not include those incurred in buying and selling investments. Our transaction costs rose as a result of a higher level of portfolio activity in the year and therefore our Total Costs ratio, which does include transaction costs, moved from 1.05% to 1.19%. Our Ten-Year Record shows the extent to which we have kept costs under control, which has made a considerable difference to our results over multiple years. The Board remains focused on delivering value for money for shareholders as part of its performance objectives. Contributors to total return in 2020 % Portfolio return 12.5 Management fees (0.4) Interest and other Expenses (0.3) Buy-backs 0.1 Change of value of debt (0.8) Gearing/other 1.2 NAV total return 12.3 Change in rating (7.7) Share price total return 4.6 FTSE All-World total return 12.4 Source: BMO GAM Impact of borrowings Over recent years we have taken the opportunity to take out long-term borrowings at historically low interest rates. Of our ?407m borrowings as at the end of 2020, ?366m were structural and mostly in the form of private placement loan notes at interest rates ranging from 0.93% to 3.16% with repayment dates falling between 2026 and 2059. Our blended borrowing rate of around 2.3% is very low by historic standards and the borrowings that we have taken out will therefore enhance NAV returns, provided our assets can deliver returns above that level over the terms of the loans. Interest rates have generally fallen even further since we took out these longer dated loans and, although we do not anticipate their early redemption, we are required to make an adjustment to our NAV that reflects such an eventuality. This adjustment, or 'marking to market', of the fair value of our debt involves a calculation based on prevailing interest rates in government bond markets and, as at the end of 2020, amounted to a ?47.9m 'fair value' reduction in our NAV. As market interest rates fell, the impact on our NAV increased over the course of the year, detracting ?29.7m from our NAV total return. We do not anticipate the early redemption of these long-dated loans and indeed it is our expectation that our investment returns will exceed our current borrowing rates and that these loans will add value for shareholders in the long term as a consequence. Currency exposure At the end of 2012, your Company adopted a global equity benchmark for performance comparison purposes. At that time, the Board took the decision that shareholders' best interests would be served by a move away from an approach which strategically favoured UK assets against global equities. This decision was well timed and, while UK equity investments have provided strong returns, non-UK equity market returns have been significantly higher. A consistent feature of the global equity market in recent years has been the significant outperformance of US equities led, in large part, by 'growth' and technology stocks. Your Company has been a significant beneficiary of these trends and, as at the end of 2020, we held over 50% of our assets in listed US equities and only 5% in UK listed assets. While the impact of currency exposure on our returns is complex given the international operations of multi-national companies which we hold, the Board is mindful of the fact that we have issued sterling debt which may be regarded as funding overseas investments, effectively reducing our limited sterling exposure further still. Recognising the extent of US dollar exposure on our investment portfolio and the fact that we are funding a portion of this through sterling borrowings, we considered it prudent to hedge a portion of our US dollar exposure during the year and have therefore purchased a series of forward currency contracts to the value of ?300m. As at the end of 2020, this position showed an unrealised capital gain of ?9.1m. Environmental social and governance factors ("ESG") We take a responsible investment approach and through BMO Global Asset Management have a manager that has been at the forefront in developing and applying the highest standards of ESG practice for many years. We have therefore been able to build a leading position in terms of voting and engagement and have substantially improved and expanded our ESG-related disclosures, as can be seen in the Report and Accounts. In delivering on our objective it is increasingly important to consider and manage the wider social and environmental impact of our investments. Many of our investee companies are already engaged in activities which are positively aligned to the United Nations Sustainable Development Goals ("SDGs") and we are engaging with laggards to deliver better outcomes. Through our voting and engagement programme, and the wider activities of our manager, we are committed to influencing positive change. We believe that this is in the best interests of our shareholders and we will be giving greater attention to companies that are not sufficiently progressive in their consideration of key stakeholders. Now, more than ever, your Board is focused on ensuring that ESG is integrated and embedded within all aspects of our investment process. Crucially, the issue of climate change is the defining challenge of modern times and we are pleased to announce our commitment to transition our portfolio to net zero carbon emissions by 2050 at the latest. We will closely monitor and report to you on our progress and move forward more quickly if we can. Board composition In addition to the appointment of Quintin Price in March 2020, Tom Joy joined the Board on 1 January 2021. Their appointments are part of our planned sequence of Board changes and reflect our continuing focus on maintaining the highest level of investment skills and knowledge on the Board. Nicholas Moakes retired on 31 December 2020 and Sir Roger Bone will retire immediately following the forthcoming AGM, when Quintin Price will succeed him as Senior Independent Director. I would like to thank both Nicholas and Roger for their wise counsel, hard work and significant contribution throughout their time as Directors. Online Shareholder Meeting and Annual General Meeting ("AGM") Under normal circumstances we like to see and talk to as many shareholders as possible in person at the AGM. Sadly, it is likely that under the government's roadmap of steps out of lockdown no indoor public gathering will be permitted by the time of the meeting and that travel will still be minimised. The Company's Articles of Association currently do not allow the formalities of the AGM to be held online and, regrettably, the meeting will again be functional in format, with access restricted. However, the less formal aspects can be held online, and we are therefore inviting you to an online event on 26 April 2021 at which there will be a presentation by the Fund Manager. This will be followed by a question and answer session with the Board and the Fund Manager. To help the event run smoothly, we request that questions are sent in advance to fcitagm@bmogam.com. The formal AGM will be held two weeks later on 10 May 2021. By holding the separate online event in advance of this there will be time for you to lodge your proxy votes having had the opportunity to engage with the Board and hear the Fund Manager's presentation. As currently permitted we are proposing to hold the AGM with three members only present in person, sufficient to form a quorum, and voting will be conducted by way of a poll. It is strongly recommended that shareholders do not attend. Nevertheless, shareholders can be represented by the chairman of the meeting acting as their proxy. We therefore urge you to lodge your votes to arrive by the deadline stated in the notice of meeting, appointing the chairman of the meeting as your proxy. Any updates to the AGM arrangements will be announced via a regulatory announcement and will be included on the Company's website. One of the resolutions will be for shareholder approval of new Articles of Association which, along with other best practice updates, will allow us to hold formal shareholder meetings in person while at the same time enable attendance and participation online for those who prefer. These "hybrid meetings" will allow us to reach out to many more of our shareholders in future, which we very much look forward to. Outlook Coming years are likely to provide further challenges. Covid-19 remains a significant threat to near-term growth prospects and while the news on vaccine effectiveness and deployment presents the prospect of a return to normality, risks to the outlook are numerous. While we do expect better growth as this year progresses, and a consequent improvement in corporate earnings, equity markets have already discounted much of the good news. Valuations are being buoyed by unprecedented monetary and fiscal stimulus and, while we should expect support for some time to come, disappointment on earnings delivery or, critically, on inflation, could give rise to volatility and even a sharp setback in equity markets. Despite near-term risks to navigate, we remain focused on the longer term. Your Company has once again proven robust to the extremities of market stress and volatility. It has been resilient, responsible and prosperous for over 150 years. Looking forward, there will indeed be risks but also tremendous opportunities. Our focus has always been on delivering sustainable growth in capital and income over the longer term. Shareholders can be assured that it will remain so. Beatrice Hollond Chairman 9 March 2021 End CA:00368939 For:FCT Type:FLLYR Time:2021-03-11 08:30:34