Audited Statement of Results for the year ended 31.12.2021

F&C Investment Trust PLC

Exchange House, Primrose Street, London EC2A 2NY
Telephone +44 (0)20 7628 8000 Facsimile +44 (0)20 7628 8188
fandcit.com
An investment company within the meaning of Section 833 of the Companies Act 2006
Registered in England and Wales, Company Registration No. 12901
Registered Office: Exchange House, Primrose Street, London EC2A 2NY



F&C INVESTMENT TRUST PLC
Audited Statement of Results for the year ended 31 December 2021.

LEI: 213800W6B18ZHTNG7371

10 March 2022

F&C Investment Trust PLC ('FCIT'/'Company') today announces its results for the year ended
31 December 2021.

• FCIT’s share price at the year end was 926.0 pence. The share price total return was 19.4%,
in line with the return of 19.5% from the benchmark, the FTSE All-World Index.

• FCIT’s Net Asset Value (‘NAV’) total return of 21.7%, with debt at market value, was ahead of
the benchmark.

• The difference between the strong gains reflected in FCIT’s NAV total return and the share
price total return was the effect of the discount widening over the year, from 5.4% to 7.3%.

• Our private equity holdings outperformed against listed market equivalents, with both our recent
commitments and our older holdings producing strong gains.

• Our portfolios of listed investments delivered strong absolute returns, led by North American
equities.

• The Company has delivered a total shareholder return of 291.9% over the ten-year period to
the end of 2021, equivalent to 14.6% per annum.

• The final dividend will be 3.8 pence per share, subject to shareholder approval, and will bring
the total dividend for the year to 12.8 pence per share. This will be a 5.8% increase, the 51
st


consecutive annual increase, and ahead of the Consumer Price Index of 5.4% for the 12
months to 31 December 2021.

• The Company holds very limited exposure to two Russian securities which was approximately
0.3% of total assets as at the end of the year. They have been written down and, once liquidity
permits, we will seek to divest all direct exposure to Russian equities.

• FCIT is committed to transition its portfolio to net zero carbon emissions by 2050, at the latest.

The Chairman, Beatrice Hollond, said:

“2021 was a good year for our shareholders, despite a very uncertain backdrop, and our
objective remains firmly focused on the delivery of growth in both capital and income for
shareholders over the long-term.”

Commenting on the markets, Paul Niven, Fund Manager of FCIT, said:

“The Russian invasion of Ukraine is an historically significant event which is exerting a terrible
toll on the Ukrainian people. Events are fast moving and causing significant volatility in markets
and creating challenges to the fundamental outlook for the global economy.”

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:
• 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

The Chairman’s Statement

Dear Shareholder,

While Covid-19 continued to dominate the political, economic and market backdrop during 2021, a sharp recovery
in global growth and continued monetary and fiscal support led to strong gains. The Company’s share price total
return for the year was 19.4%. Our Net Asset Value (‘NAV’) total return, taking debt at market value, of 21.7%
exceeded the gains from our benchmark of 19.5%.

Our NAV per share, with debt at market value, rose from 831.8p per share to 998.7p per share and our share
price rose from 787.0p to 926.0p, ending the year close to record highs. The discount on which our shares traded
relative to NAV widened, from 5.4% at the start of year, to 7.3% at the year end.

It was a year of outperformance from our private equity holdings where both our recent and our older investments
produced strong gains. Our portfolios of listed investments delivered strong absolute returns led by North
American equities, notably with the value component outperforming the growth portfolio. In aggregate, the listed
portfolios slightly lagged the return from the benchmark while gearing enhanced our overall returns in the strong
market environment. This was helped further by global interest rate rises having the effect of reducing the fair
value of our outstanding debt. Further information on investment performance can be found in the Fund
Manager’s Review on page 14 of the Report and Accounts.

Our long-term focus
2021 was a good year for our shareholders, despite a very uncertain backdrop, and our objective remains firmly
focused on the delivery of growth in both capital and income for shareholders over the long-term. The past decade
has seen exceptional returns for investors in global equities and your Company has delivered a total shareholder
return of 291.9% over the ten-year period to the end of 2021, equivalent to 14.6% per annum. Indeed, shareholder
returns have been positive in nine of the past ten calendar years, with only 2018 seeing a small loss in value.

Reflecting further on longer-term returns and the power of compounding, over the twenty-year period to 31
December 2021 the Company’s share price total return was 536.1%, equivalent to 9.7% per annum. Our capital-
only returns over the past twenty years were 318.1%. Dividends paid to shareholders have risen by 80.3% over
the past decade and by 287.9% over the past twenty years. Such results continue to demonstrate the importance
of compounding income and capital gains over long periods of time in the process of value creation for
shareholders, together with effective risk management and taking a long-term view through market volatility.

Increased returns and dividend
Following the most challenging year for our revenue for over a decade, we enjoyed a robust recovery in 2021.
Our income rose on the year to £58.5m (after tax) while special dividends increased slightly to £1.4m (2020:
£1.2m). The impact of currency movements is estimated to have detracted £4.0m from our income (2020: £0.4m).
Our Net Revenue Return per share rose to 10.99 pence per share from 9.71 pence per share in 2020.

Throughout the pandemic the Board has carefully considered the revenue position of your Company and the
increasing significance of rising inflationary pressures. While our revenue increased during 2021, it remains below
pre-pandemic levels and below the level of our recent annual dividend payments. However, one of our strengths
as an investment trust company is to be able to utilise the revenue reserve to make up such shortfalls in annual
revenue and continue to increase dividend payments for shareholders.

I am therefore delighted to report another rise in the proposed annual dividend, which will in part be funded by
our revenue reserve. Subject to approval at the Annual General Meeting (‘AGM’), shareholders will receive a
final dividend of 3.8 pence per share on 10 May 2022, bringing the total dividend for 2021 to 12.8 pence: an
increase of 5.8% over that of 2020. The increase is ahead of the 5.4% rise in inflation as measured by the
Consumer Price Index for the 12 months to 31 December 2021 and therefore represents a real rise in the dividend
for the calendar year. In addition, as well as being our fifty first consecutive rise in annual dividends, it is our one
hundred and fifty fourth annual dividend payment.

Shareholders can also take comfort that, in addition to our substantial revenue reserve, we have the authority to
utilise our capital reserves, which stood at £4.9bn at the year end, to support dividend payments should we need
to. We therefore remain in a very strong position to continue our track record of increasing annual dividends in
the future. It also remains the hope and aspiration of the Board to continue to deliver real rises in these dividends
over the long-term.

Discount/Premium
For several years your Company’s share price moved closer to parity with the NAV per share and, at times in
2018 and 2019, traded at a premium, enabling us to reissue shares from treasury. At the onset of the pandemic
in 2020, however, our share price returned to a discount in the face of the sharp fall in equity markets and the
consequent fall in retail demand. Our shares continued to trade at a discount throughout 2021 and we bought
back a total of 9.9m shares into treasury as part of our ongoing commitment towards achieving a sustainably low
deviation between the share price and NAV. The discount moved from 5.4% to 7.3% over the year, averaging
7.2%, compared with 6.1% in 2020.

Cost efficiency and Management fee reduction
Our Ongoing Charges figure fell again this year from 0.59% to 0.54%, representing a further improvement in this
measure of cost efficiency and continuing the trend of recent years. This partly reflects the management fee
structure which is designed to bring down our cost ratios as the Company grows and to pass the benefits of scale
on to shareholders. The Board remains focused on delivering value for money for shareholders as part of its
performance objectives.

I am also very pleased to report that, following constructive discussions with our Manager, the Company’s
management fee rate has been reduced and with effect from 1 January 2022 it will be charged at a rate of 0.325%
per annum of the market capitalisation of the Company up to £3.0 billion, then at 0.3% up to £4.0 billion and
0.25% beyond that level. With effect from 1 January 2023, the rate of 0.3% will be applied to a revised first tier
of up to £4.0 billion and of 0.25% thereafter. These reductions will help to bring down our cost ratio further as the
Company continues to grow.

Contributors to total return in 2021 %
Portfolio return 19.2
Management fees (0.4)
Interest and other Expenses (0.3)
Buy backs 0.1
Change of value of debt 0.6
Gearing/other 2.5
NAV total return 21.7
Increase in discount (2.3)
Share price total return 19.4
FTSE All-World total return 19.5
Source: BMO GAM
Borrowings
Interest rates remain at historically low levels despite recent rises in inflation. The Board continues to view this
as an attractive environment in which to lock in low rates on long-dated borrowings that should enhance our
NAV returns from the investments made over their lifetime. During the year we therefore issued, and drew
down, long-dated private placement loan notes totalling £140m. In December, we agreed to issue a further
£140m which have also now been drawn down.

Currency Hedge
As reported last year, in late 2020 we bought £300m of sterling as a strategic, partial hedge on our overseas
currency exposure. Towards the end of 2021, we reduced the size of the hedge to £200m. During the year, this
position realised a capital gain of £9.1m. At the end of the year, we carried forward an unrealised capital loss of
£4.8m.

Responsible Investment and our commitment to Net Zero
Last year we announced our commitment to transition the Company’s portfolio to net zero carbon emissions by
2050, at the latest. During the year the Board has considered how it will implement that transition and how our
progress towards achieving it is measured. We recognise the importance of reporting our progress in a clear
and consistent way and therefore detailed information is provided in the report on Our Approach to Responsible
Investment on pages 20 to 27 of the Report and Accounts. In the Fund Manager’s report you will find
information on our very limited holdings in Russian securities. In summary, while the current regime exists in
Russia, our approach will be to sell the very small holdings in the portfolio as soon as is practical.

F&C Investment Trust Lecture
Following the success of the lectures that the Company sponsored in 2018 and 2020, I am pleased to advise
that the Company will again be sponsoring a lecture this year. Providing Covid-19 related restrictions do not
prevent us from doing so, the lecture will be held at The Guildhall, London on Wednesday 13 July. The theme of
our lecture this summer is ‘Smart choices for a smarter future’, emphasising the positive impact that our financial,
social and environmental choices can have. The lecture will feature thought-provoking sessions from some
renowned speakers and will include information on the Company’s investment approach.

As tickets will be limited, they will be made available to shareholders and the public via a ballot, with successful
applicants selected at random. Video clips will be made available to everyone on the Company’s website
following the event.

The Company is also refreshing its brand, ensuring that it stays relevant for new and existing investors. We are
updating how we communicate and these changes will be introduced at this year’s lecture.

The Manager
I reported at the half year stage that the Bank of Montreal had announced its intention to sell its asset
management business covering Europe, the Middle East and Africa to Ameriprise Financial, Inc. ('Ameriprise'),
the parent company of Columbia Threadneedle Investments ('Columbia Threadneedle'). The sale transaction,
which included your Company’s Manager, BMO Investment Business Limited, was completed on 8 November
2021. Your Board looks favourably on this development and has welcomed an assurance that there will be little
change for your Company. Nevertheless, it recognises that any move of this nature will inevitably create a degree
of risk. It is therefore closely monitoring the integration of the two businesses as it progresses.

Simon Fraser
It was with great shock and sadness that we learned of the untimely death of Simon Fraser in August last year.
Simon was Chairman of your Company for nine years, from 2010 until 2019, during which time the Company
flourished under his inspiring leadership. He held dear the heritage and values of the Company. He gave a great
deal to the wider investment trust sector and is sorely missed by those who had the privilege of knowing him.

Board composition
In addition to the appointment of Rain Newton-Smith in May 2021, Stephen Russell joined the Board on 1
February 2022. Both Rain and Stephen’s appointments continue our planned sequence of Board changes and
reflect our focus on maintaining the highest level of investment skills and economic and political insight on the
Board. They replace Sir Roger Bone, who retired at the conclusion of the 2021 AGM, and Sarah Arkle, who
retired on 31 January 2022. I would like to thank both Roger and Sarah for their hard work and significant
contributions to the Board and its committees throughout their time as Directors of the Company.

Jeffrey Hewitt will retire from the Board at the conclusion of the forthcoming AGM and the process to appoint his
successor is underway. He will be a hard act to follow as Jeffrey has been an outstanding Chairman of the Audit
Committee for the past 10 years, a role in which he has been a driving force for change and continual
improvement in disclosure in our annual report. On behalf of the Board and shareholders, we thank him for his
service to the Company and wish him well for the future.

AGM
It has been a great disappointment not to be able to meet shareholders in person at the last two AGMs as a result
of the Covid-19 pandemic and consequent Government restrictions. Thankfully, the situation has eased
somewhat and therefore we are proposing to hold an in-person AGM on Tuesday 3 May 2022. Last year
shareholders approved the adoption of new Articles of Association which allow the Company to hold shareholder
meetings in person and at the same time allow attendance and participation online for those who are unable, or
who prefer not, to attend in person. This year we are utilising that new power to hold a “hybrid” meeting, which
will allow many more of our shareholders to view the AGM and participate by asking questions and voting online.
Full details of how to do so are set out in the letter that accompanies your Form of Proxy or Form of Direction.
Therefore, voting at this year’s AGM will be conducted by way of a poll and you are requested to lodge your votes
ahead of the meeting by completing your Form of Proxy or Form of Direction in accordance with the instructions.
Their completion and return will not preclude you from attending the meeting and voting in person. If you are
unable to attend the AGM, you are requested to submit any questions you may have with regard to the resolutions
proposed at the AGM or the performance of the Company, in advance of the meeting to fcitagm@bmogam.com.
Following the AGM, the Fund Manager’s presentation will be available on the Company’s website
www.fandcit.com
.

Outlook
Geopolitical risks have risen markedly in recent weeks with the Russian invasion of Ukraine. Indeed, it has been
shocking on a humanitarian level and raised significant concerns over President Putin’s future ambitions on a
regional and global level. While direct linkages to major Western economies from Russia tend to be small, the
impact of sanctions will be significant and the rise in commodity prices are likely to be the main transmission
mechanism to markets. Rising commodity prices and further disruption to supply chains will exacerbate
inflationary pressure and it will also create a negative impact on global growth, with Europe at particular risk. In
recent decades, most conflicts have been short term in nature and the wider impacts have been relatively
contained. It remains too early to assess the long-term impact of Russia’s actions but it will remain at least a near
term concern for investors.

Recent decades have seen both equity and fixed income markets buoyed by a long-term decline in inflation.
Lower interest rates, abundant liquidity and, in response to the pandemic, fiscal largesse, have all helped to
propel global equity markets to record highs. Valuation levels in equities provide limited scope for disappointment
in either earnings or in interest rates and the recent rise in inflation, which has been broad based and which will
be exacerbated by the Ukrainian conflict, is troubling.

Despite there being grounds for optimism initially that much of the recent spike in inflation would prove to be
transitory as supply chain disruption diminished and economies re-opened more fully, this does not seem to be
the case. As Covid-19 appears to be becoming endemic in many countries, it still poses significant risks and new
variants may yet cause further disruption. Investors should be prepared for slowing growth, higher but moderating
inflation and abundant but diminishing liquidity and fiscal support. The resultant combination of moderating growth
in earnings and rises in interest rates is likely to present a challenge to equity markets in 2022 and beyond.

Global equity markets have been led by US exceptionalism in recent years and, within the US and globally, a
small cohort of stocks have dominated returns. Companies such as Microsoft and Alphabet feature amongst our
largest listed holdings and represent exceptional businesses which have been able to deliver tremendous growth
in earnings, high margins and an enviable competitive position versus their peers. Although these businesses
are likely to continue to thrive, we do expect, as was the case in 2021, a more balanced market and greater
sensitivity of investors to valuations. For this reason, we have been moving away from some of these highly
performing, but highly valued, businesses in favour of companies which also have a strong competitive position,
but which have better valuation support. More detail can be found in the Fund Manager’s Report.

Our flexible and pragmatic approach to capital allocation has served your Company well over many decades
and, as the economic and market environment shifts, perhaps in a significant change, we will continue to adapt
and seek profitable opportunities within the listed and private markets. We remain confident in the prospects for
your Company and continue to focus on the long-term delivery of growth in both capital and income for our
shareholders.


Beatrice Hollond
Chairman
9 March 2022

Forward-looking statements
This document may contain forward-looking statements with respect to the financial condition, results of operations and
business of the Company. Such statements involve risk and uncertainty because they relate to future events and
circumstances that could cause actual results to differ materially from those expressed or implied by forward-looking
statements. The forward looking statements are based on the Directors’ current view and on information known to them at
the date of this document. Nothing should be construed as a profit forecast.

Weighting, stock selection and performance over one year in each investment portfolio strategy and
underlying geographic exposure versus Index at 31 December 2021
Investment
Portfolio
Strategy
Our portfolio
strategy
weighting %
Underlying
geographic
exposure* %

Benchmark
weighting %
Our strategy
performance in
Sterling %
Gross index
performance in
Sterling %
North America 40.6 57.8 62.4 23.7 27.6
Europe inc UK 10.0 23.5 16.7 13.9 17.0
Japan 4.6 6.9 6.3 2.6 2.1
Emerging
Markets
7.2 9.3 10.1 3.8 (1.6)

Developed
Pacific
- 2.5 4.5 - -
Global
Strategies**
27.6 - - 19.0 19.5
Private Equity*** 10.0 - - 30.1 -
Source: BMO GAM
*Represents the geographic exposure of the portfolio, including underlying exposures in private equity and fund holdings.
**The Global Strategies allocation consisted of Global Income, Global Smaller Companies, Global Value and Global
Sustainable Opportunities.
***Includes the holdings in Schiehallion and Syncona.

Principal Risks and Future Prospects
The Board’s processes for monitoring the principal risks and identifying emerging risks are set out in note 26 to
the Report and Accounts. Economic and market shocks in one form or another, and their consequences, are
risks that have long been on the Board’s risk assessment. The effects of the Covid-19 pandemic appear to be
easing somewhat but its duration and future impact remain unknown and there can be no complacency.
Nevertheless, the Company’s purpose, strategy, investment policy and innate characteristics, most notably
portfolio diversification and an embedded long-term outlook, have again demonstrated its strong resilience in the
face of a global crisis. Our risk evaluation forms an inherent part of our strategy determination, described on page
9 of the Report and Accounts, which looks to mitigate risks and to pursue the opportunities that arise not least at
times of great turmoil. Last year we highlighted, as emerging risks, the extent and impact of the eventual response
from governments to meet the costs of Covid-19 and the potential for the imposition of controls and taxes that
could be detrimental to the savings industry and investors themselves. Although these risks remain, the impact
of the Covid-19 pandemic and the resulting actions have been articulated in each of the principal risks rather
than as a separate risk.

As reported on page 6 of the Report and Accounts, BMO GAM has been acquired by Ameriprise and its business
is to be merged with Columbia Threadneedle. The Board looks favourably upon this acquisition and expects
there to be little change for your Company. Nevertheless, any acquisition of such magnitude will introduce some
uncertainty until integration of systems and personnel is fully implemented. Therefore the Board is treating this
aspect as an emerging risk that it will monitor closely.

Risk description:

Investment proposition and its promotion – Failure to access the targeted market or meet
investor needs or expectations, including Responsible Investment policies not resulting in demonstratable
progress towards our net zero commitment, leading to significant pressure on the share price.
Unchanged throughout the year.
Mitigation by strategy:
Our investment and business strategies aim to position us as a clear and core investment
choice through all available channels.
Our discount is a KPI measured by the Board on a continual basis and is reported on page 13 of the Report and
Accounts.

Risk description:
Investment performance -

Inappropriate asset allocation, sector and stock selection, currency
exposure and use of gearing and derivatives may give rise to under-performance and impact dividend paying
capacity. Political risk factors, including the potential emergence of restrictive government controls, could also impact
performance as could market shocks such as those experienced as a result of Covid-19 and geo political factors.
Increased during the year.
Mitigation by strategy:
Under our Business Model, a manager is appointed with the capability and resources to
manage the Company’s assets, asset allocation, gearing, stock and sector selection and risk and can delegate
the management of investment portfolios externally. The individual global and regional investment portfolios are
managed as a whole to provide diversification, lower volatility and risk.
The performance of FCIT relative to its benchmark, its peers and inflation is a KPI measured by the Board on a
continual basis and is reported on page 13 of the Report and Accounts.

Risk description:
Appointed Manager - Failure of BMO GAM to continue to operate effectively resulting from
inadequate systems or resources or through the loss of key staff..
Increased during the year.
Mitigation by strategy:
The Business Model is based on the premise of an effective and strong working
relationship with the appointed Manager while an important responsibility of the Board is the robust annual
evaluation of its performance, capabilities and resources, leading to the decision on whether to reappoint it.

Succession planning concerning any potential significant management changes is shared with the Board.
Internal performance KPIs and Manager errors are monitored by the Board for indications of continuity or other
Manager issues.

Risk description:
Service providers and systems security – Covid-19 and the implementation of working from
home and increased sophistication of cyber threats have heightened risks of loss through errors, fraud or control
failures at service providers or loss of data through business continuity failure.
Unchanged throughout the year.
Mitigation by strategy:
The ancillary functions of administration, company secretarial, accounting and marketing
services are all carried out by the Manager.
The Board monitors effectiveness and efficiency of service providers’ processes through internal efficiency KPIs.

Ten Year Horizon
Through a series of connected stress tests ranging from moderate to extreme scenarios including the impact of
market shocks and based on historical information, but forward-looking over the ten years commencing 1 January
2022, the Board assessed the effects of:

• falls in the value of the publicly listed investments;
• widening discount and increased buyback levels;
• illiquidity and early calls on private equity commitments;
• adverse fluctuations in exchange rates; and
• adverse fluctuations in annual revenue.

The assumptions used for these tests purposefully did not take into account that under such severe conditions
the Board and Manager would have taken action to mitigate the risks and offset the impact. Furthermore, the
tests were a theoretical and illustrative scenario exercise, the assumptions for which are extreme and highly
unlikely. Their purpose was to help inform the Directors of the Company’s resilience under conditions so severe
that they would impact global economies, markets, companies and businesses alike. The tests help to support
the Board’s assessment of the Company’s long-term viability. The results do not represent its views or give an
indication of the likely outcome.

The Company has proved resilient and prosperous for more than 150 years. There will inevitably be risks, but
we believe that the future will continue to present tremendous opportunities for investors and for shareholder
returns to be enhanced through a focus on companies that engage in sustainable business practices.
Shareholders can be assured that our focus on delivering sustainable growth in capital and income over the
longer term will be maintained. Having considered its current position and the principal and emerging risks that
the Company faces and having applied stress tests under worst-case scenarios that would severely impact global
economies and markets alike, the Board confirms that it has assessed the Company’s prospects, to the extent
that it is able to do so, over the next ten years. In concluding that ten years is an appropriate period for this
assessment, the Board considers that this approximates to:

• a suitable period over which its longer term investment performance is measurable and comparable;
• the periods over which it would typically commit to and benefit from its private equity investments; and
• the tenure of the Directors from a corporate governance perspective.

The Board also took into consideration the long-term duration of the Company's debt, the perceived viability of
the Company’s principal service providers, the potential effects of expected regulatory changes and the potential
threat from competition. The Company’s business model, strategy and the embedded characteristics shown
opposite have helped define and maintain its stability over many decades. The Board expects this to continue
over many more years to come.

The Directors confirm therefore, that they have a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities in full over the coming ten years to 31 December 2031.

Statement of Directors’ Responsibilities in Respect of the Financial Statements

In accordance with Chapter 4.1.12 of the Disclosure Guidance and Transparency Rules the Directors confirm,
that to the best of their knowledge:

• the financial statements, prepared in accordance with applicable accounting standards, give a true and
fair view of the assets, liabilities, financial position and profit of the Company;
• the Strategic Report includes a fair review of the development and performance of the business and the
position of the Company, together with a description of the principal risks and uncertainties that it faces;
and
• in the opinion of the Directors the annual report and financial statements, taken as a whole, are fair,
balanced and understandable and provide the information necessary for shareholders to assess the
Company’s position and performance, business model and strategy.
.




On behalf of the Board
Beatrice Hollond
Chairman
9 March 2022

Income Statement



For the year ended 31 December 2021 2020
Revenue Capital Total Revenue Capital Total
£’000s £’000s £’000s £’000s £’000s £’000s

Gains on investments - 879,862 879,862 - 475,886 475,886
Exchange movements on foreign
currency loans, cash balances and
derivatives

(176)

4,251

4,075

(167)

(1,249)

(1,416)
Income 77,629 - 77,629 70,178 - 70,178
Management fees (4,935) (14,805) (19,740) (4,297) (12,892) (17,189)
Other expenses (3,500) (57) (3,557) (3,416) (70) (3,486)
Net return before finance costs and
taxation
69,018 869,251 938,269 62,298 461,675 523,973
Finance costs (2,778) (8,335) (11,113) (2,349) (7,049) (9,398)
Net return on ordinary activities before
taxation

66,240

860,916

927,156

59,949

454,626

514,575
Taxation on ordinary activities (7,740) (138) (7,878) (7,469) - (7,469)
Net return attributable to
shareholders
58,500 860,778 919,278 52,480 454,626 507,106

Net return per share – basic (pence) 10.99 161.74 172.73 9.71 84.09 93.80

The total column of this statement is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.
The net return attributable to Shareholders is also the total comprehensive income.

Statement of Changes in Equity

Share Capital Capital Revenue Total
Capital Redemption Reserves Reserve Shareholders’
Reserve Funds
For the year ended 31 December 2021 £’000s £’000s £’000s £’000s £’000s
Balance brought forward 31 December
2020
140,455 122,307 4,147,868 100,930 4,511,560
Dividends paid - - - (65,578) (65,578)
Shares repurchased by the Company
and held in treasury

-

-

(84,326)

-

(84,326)
Net return attributable to shareholders - - 860,778 58,500 919,278
Balance carried forward 31 December
2021
140,455 122,307 4,924,320 93,852 5,280,934




Share Capital Capital Revenue Total
Capital Redemption Reserves Reserve Shareholders’
Reserve Funds
For the year ended 31 December 2020 £’000s £’000s £’000s £’000s £’000s
Balance brought forward 31 December
2019
140,455 122,307 3,735,063 111,224 4,109,049
Dividends paid - - - (62,774) (62,774)
Shares repurchased by the Company
and held in treasury

-

-

(41,821)

-

(41,821)
Net return attributable to shareholders - - 454,626 52,480 507,106
Balance carried forward 31 December
2020
140,455 122,307 4,147,868 100,930 4,511,560

Balance Sheet

At 31 December 2021 2020
£’000s £’000s £’000s £’000s
Fixed assets
Investments 5,779,123 4,856,368
Current assets
Debtors 8,267 23,675
Cash at Bank and short-term deposits 53,111 46,654
61,378 70,329
Creditors: amounts falling due within one year
Loans (110,452) (40,000)
Other (9,277) (8,521)
(119,729) (48,521)
Net current (liabilities)/assets (58,351) 21,808
Total assets less current liabilities 5,720,772 4,878,176
Creditors: amounts falling due after more than one
year

Loans (439,263) (366,041)
Debenture (575) (575)
(439,838) (366,616)
Net assets 5,280,934 4,511,560

Capital and Reserves
Share capital 140,455 140,455
Capital redemption reserve 122,307 122,307
Capital reserves 4,924,320 4,147,868
Revenue reserve 93,852 100,930
Total shareholders’ funds 5,280,934 4,511,560
Net asset value per share – prior charges at
nominal value (pence)

1,002.49

840.69

Statement of Cash Flows

for the year ended 31 December 2021 2020
£’000s £’000s
Cash flows from operating activities before
dividends received and interest paid
Dividends received
Interest paid

(27,576)
77,652
(11,037)

(32,127)
70,055
(9,429)
Cash flows from operating activities 39,039 28,499
Investing activities
Purchases of investments (2,527,995) (2,548,873)
Sales of investments 2,483,392 2,681,183
Other capital charges and credits (56) (76)
Cash flows from investing activities (44,659) 132,234
Cash flows before financing activities (5,620) 160,733
Financing activities
Equity dividends paid (65,578) (62,774)
Repayment of loans
Drawdown of loans
(120,000)
270,000
(75,000)
40,000
Cash flows from share issues - 1,931
Cash flows from share buybacks for treasury shares (83,961) (41,401)
Cash flows from financing activities 461 (137,244)
Net (decrease)/increase in cash and cash
equivalents
(5,159) 23,489
Cash and cash equivalents at the beginning of the year 46,654 28,196
Effect of movement in foreign exchange 11,616 (5,031)
Cash and cash equivalents at the end of the year 53,111 46,654

Represented by:
Cash at bank 27,798 16,177
Short-term deposits 25,313 30,477
Cash and cash equivalents at the end of the year 53,111 46,654

Notes

1 NET RETURN PER SHARE

2021 2021 2020 2020
pence £’000s pence £’000s
Total return 172.73 919,278 93.80 507,106
Revenue return 10.99 58,500 9.71 52,480
Capital return 161.74 860,778 84.09 454,626
Weighted average ordinary shares in issue,
excluding shares held in treasury - number

532,196,543

540,641,336


2 DIVIDENDS
The Directors have proposed a final dividend in respect of the year ended 31 December 2021 of 3.80p per
share payable on 10 May 2022 to all shareholders on the register at close of business on 8 April 2022.


3 FINANCIAL RISK MANAGEMENT
The Company is an investment company, listed on the London Stock Exchange, and conducts its affairs so as
to qualify in the United Kingdom (UK) as an investment trust under the provisions of Section 1158 of the
Corporation Tax Act 2010. In so qualifying, the Company is exempted in the UK from corporation tax on capital
gains on its portfolio of investments.

The Company’s investment objective is to secure long-term growth in capital and income through a policy of
investing primarily in an internationally diversified portfolio of public listed equities, as well as unlisted securities
and private equity, with the use of gearing. In pursuing the objective, the Company is exposed to financial risks
which could result in a reduction of either or both of the value of the net assets and the profits available for
distribution by way of dividend. These financial risks are principally related to the market (currency movements,
interest rate changes and security price movements), liquidity and credit. The Board of Directors, together with
the Manager, is responsible for the Company’s risk management.

The full details of financial risks are contained in note 26 of the Report and Accounts.


4 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 investment policy,
the current cash position of the Company, the availability of the loan facility and compliance with its covenants
and the operational resilience of the Company and its service providers. More information on the Board's
assessment is provided on pages 34 and 35 of the Report and Accounts.


5 ANNUAL GENERAL MEETING
The annual general meeting will be held on 3 May 2022 at 12 noon.


6 REPORT AND ACCOUNTS
This statement was approved by the Board on 9 March 2022. It is not the Company's statutory accounts. The
statutory accounts for the financial year ended 31 December 2021 have been approved and audited, and
received an audit report which was unqualified and did not include a reference to any matters to which the auditors
drew attention by way of emphasis without qualifying the report. The statutory accounts for the financial year
ended 31 December 2020 received an audit report which was unqualified and did not include a reference to any
matters to which the auditors drew attention by way of emphasis without qualifying the report.


The Report and Accounts for the financial year ended 31 December 2021 will be posted to shareholders on or
around 29 March 2022 and copies may be obtained thereafter during normal business hours from the
Company’s Registered Office, Exchange House, Primrose Street, London EC2A 2NY.

Information disclosed in accordance with Disclosure Guidance and Transparency Rule 4.1

By order of the Board
BMO Investment Business Li mited
Company Secretary,
9 March 2022

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.
ENDS
A copy of the Report and Accounts will be submitted to the National Storage Mechanism and will shortly be
available for inspection at www.fca.org.uk
The Report and Accounts will also be available on the Company's website at fandcit.com from 10 March
2022, where up to date information on the Company, including daily NAV and share prices, factsheets and
portfolio information can also be found.