Annual Financial Report

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




10 March 2022


F&C INVESTMENT TRUST PLC

LEI: 213800W6B18ZHTNG7371


Report and Accounts for the year ended 31 December 2021 (including the Notice of Meeting)


A copy of the above document has been submitted to the National Storage Mechanism and will
shortly be available for inspection at https://data.fca.org.uk/#/nsm/nationalstoragemechanism


The report and accounts can also be downloaded from the website www.fandcit.com





Name of contact and telephone number for enquiries:
Jonathan Latter
For and on behalf of BMO Investment Business Limited, Secretary
Telephone: 020 7628 8000

---

F&C Investment
Trust PLC
Report and Accounts
31 December 2021
The foundation for your savings and investments

Report and Accounts 2021 | 1
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Overview
Company Overview 2
Financial Highlights 3
Chairman’s Statement 4
Strategic Report
Purpose, Strategy and Business Model 8
Section 172 Statement 10
Key Performance Indicators 12
Fund Manager’s Review 14
Our Approach to Responsible Investment 20
Ten Year Record 28
Twenty Largest Listed Equity Holdings 30
Principal Risks and Future Prospects 32
Principal policies 37
Governance Report
Directors 39
Chairman’s statement on corporate governance 41
Applying the principles of the UK Code 42
Directors’ Report 44
Report of the Management Engagement Committee 49
Report of the Nomination Committee 51
Remuneration Report 52
Report of the Audit Committee 55
Statement of Directors’ Responsibilities 60
Independent Auditor’s Report 61
THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are
recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other independent
financial adviser authorised under the Financial Services and Markets Act 2000 if you are in the United Kingdom or, if not, from another
appropriately authorised financial adviser. If you have sold or otherwise transferred all your ordinary shares in F&C Investment Trust PLC please
forward this document, together with the accompanying documents, immediately to the purchaser or transferee or to the stockbroker, bank or
agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. If you have sold or otherwise transferred
only part of your holding of shares, you should retain these documents.
Contents
Financial Report
Income Statement 68
Statement of Changes in Equity 69
Balance Sheet 70
Statement of Cash Flows 71
Notes to the Accounts 72
Notice of Annual General Meeting 94
Other Information
Management and Advisers 99
Additional Information for Shareholders 100
How to Invest 101
Alternative Performance Measures 102
Glossary of Terms 105
2022-23 Financial year events
Annual General Meeting 3 May 2022
Final dividend payable for 202110 May 2022
Interim Results for 2022 announced end July 2022
First interim dividend for 2022August 2022
Second interim dividend for 2022November 2022
Third interim dividend for 2022February 2023
Final Results for 2022 announcedMarch 2023
Final dividend for 2022May 2023

2 | F&C Investment Trust PLC
F&C Investment Trust PLC (the ‘Company’ or ‘FCIT’) was founded in 1868 as the first investment trust with
the purpose of providing the investor of more moderate means access to the same opportunities and
advantages as the very largest investors.
This purpose continues today, providing a foundation for the long-term investment needs of large and small
investors through a diversified, convenient and cost effective global investment choice.
Our objective is to achieve long-term growth in capital and income through a policy of investing primarily
in an internationally diversified portfolio of publicly listed equities, as well as unlisted securities and private
equity, combined with the use of gearing.
Our approach is designed to obtain the investment performance benefits from a range of individually
concentrated global and regional portfolios alongside the diversification benefits of lower risk and lower
volatility achieved by managing these portfolios in combination. Offering a globally diversified portfolio of
growth assets, the Company aims to be a core investment choice through all available channels.
The Company continues to evolve, allowing it to keep pace with new investment opportunities and
maintain its relevance in today’s world. A commitment has been made to transition the Company's portfolio
to net zero carbon emissions by 2050, at the latest. The Company is suitable for retail investors in the UK,
professionally advised private clients and institutional investors who seek growth in capital and income
from investment in global markets and who understand and are willing to accept the risks, as well as the
rewards, of exposure to equities.
Visit our website at fandcit.com
The Company is registered in England and Wales with company registration number 12901
Legal Entity Identifier: 213800W6B18ZHTNG7371
Company Overview
DIVIDEND
HERO
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 up to date as at the date of this report and are based on
the Directors’ current view and on information available to them as at that date. There is no obligation to update the statements and nothing should be
construed as a profit forecast.

Report and Accounts 2021 | 3
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Annual dividend
†
*
per share up by 5.8%
to 12.8p, our 51st
consecutive annual
increase
51st
Our discount* to NAV,
moved from 5.4% to
end the year at 7.3%
-7. 3 %
Net Asset Value total return*
of 21.7%, with debt at market
value which was ahead of the
return from our benchmark,
the FTSE All-World Index,
of 19.5%
21.7%
19.4% share price total
return*
19.4%
Delivering long-term growth in capital and income
Potential investors are reminded that the value of investments and the income from dividends may go down
as well as up and investors may not receive back the full amount invested. Tax benefits may vary as a result of
statutory changes and their value will depend on individual circumstances.
* See Alternative Performance Measures on pages 102 to 104.
†
The final dividend for 2021 is subject to shareholder approval at the forthcoming Annual General Meeting.
Dividends
†
* per share – pence
Share price discount/premium* to net asset value*

at
31 December – %
A dividend has been paid every year since inception and has increased every year for the past 51 years and
over the last ten years is up 80.3% (6.1% compound per annum), compared with inflation of 21.0% (1.9%
compound per annum).
Overview
Source: BMO GAM
Net asset value* per share with debt at market value at
31 December – pence
0p
100p
200p
300p
400p
500p
600p
700p
800p
900p
1,000p
2021202020192018201720162015201420132012
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
2021202020192018201720162015201420132012
0p
2p
4p
6p
8p
10p
12p
14p
2021202020192018201720162015201420132012
Mid-market price per share at 31 December – pence
0p
100p
200p
300p
400p
500p
600p
700p
800p
900p
1,000p
2021202020192018201720162015201420132012
Source: BMO GAM
Source: BMO GAMSource: BMO GAM
Financial Highlights
In the last ten years the Company has grown a £1,000 investment, with dividends reinvested, to £3,919.

4 | F&C Investment Trust PLC
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.
100
110
120
130
140
150
160
170
180
190
201420192011201220152016201720182013
Consumer Price Index
FCIT annual dividend per share
20202021
FCIT NAV and share price performance vs Market Benchmark
(1)
over 10 years
FCIT annual dividend per share vs Consumer Price Index
over 10 years
Source: BMO GAM & Refinitiv EikonSource: BMO GAM & Refinitiv Eikon
100
150
200
250
300
350
400
201420192011201220152016201720182013
FCIT - NAV total return
FCIT - Share price total return
2020
Market Benchmark
2021
It was a year of outperformance from our private equity holdings,
against listed market equivalents, 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.
Beatrice Hollond, Chairman
“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.”
Chairman’s Statement
(1)
See Glossary of terms on page 105 for explanation of “benchmark”

Report and Accounts 2021 | 5
Chairman’s Statement
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
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.
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-
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 when this is appropriate.
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 (‘A G M ’), 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

6 | F&C Investment Trust PLC
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. 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

Report and Accounts 2021 | 7
Chairman’s Statement
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
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
9 March 2022

8 | F&C Investment Trust PLC
Purpose and values
Our purpose is essentially unchanged since inception in 1868. At the
outset our purpose was to provide the investor of relatively moderate
means access to the same opportunities and advantages as the very
largest investors and to diminish risk by investing broadly. We now invest
in global equities, both listed and private, and continue to provide a
diversified, convenient and cost-effective global investment choice that
meets the longer term investment needs of large and small investors. Our
values centre around integrity, innovation, adaptation and diversification
and are integral to and inherent in our long-term strategy. More recently,
we have incorporated a commitment to transitioning the portfolio to
net zero carbon emissions by 2050, at the latest, with a greater focus on
investing responsibly.
Investment and business strategy
Our overriding strategic objective is to secure long-term growth in capital
and income for our shareholders. Our investment strategy is therefore
designed to produce outperformance and real rises in dividends over the
longer term as reported on page 12. We do this by investing mainly in
public and private equity markets, using borrowings to enhance returns
and by managing costs carefully. Our investments are held in a number of
portfolios that are individually concentrated but are managed as a whole
to provide global diversification, lower volatility and lower risk. In an ever
changing environment in which there is a greater need for individuals to
take control of their future financial wellbeing, our wider business strategy
aims to position us as a core investment choice through all available
channels.
Business model
As an investment trust company with no employees, we believe that
the best way to achieve our objective is to have an effective and strong
working relationship with our appointed manager, BMO Investment
Business Limited (the ‘Manager’). Within policies set and overseen by
the Board of Directors, our Manager has been given overall responsibility
for the management of the Company's assets, including asset allocation,
gearing, stock and sector selection as well as risk management. The
Manager has the flexibility to use other fund managers by delegating the
management of some investment portfolios externally. These currently
include the North American listed equity portfolios and a proportion of the
Private Equity holdings. Engagement on Responsible Investment matters
is undertaken through BMO Global Asset Management Limited. Both BMO
entities (together ‘BMO GAM’), are now owned by Ameriprise. The Board
remains responsible for the matters listed on page 42.
To provide a breadth of sources of return, the individual investment
portfolios are managed on a global or regional basis. While we invest
primarily in listed equities, we retain complete investment flexibility
to invest in other types of securities or assets depending on the return
prospects and in consideration of the implications for the broader portfolio.
Furthermore, as a closed-ended, listed investment trust company we are
not constrained by asset sales to meet redemptions. Our share capital
structure gives us the flexibility to take a longer term view and stay
invested, while taking advantage of illiquidity throughout normal and
volatile market conditions. Having the ability to borrow to invest gives us a
significant advantage over a number of other investment fund structures.
These features combine to form a resilient and adaptable business model
that has helped us to weather the impact of the Covid-19 pandemic, as it
did during many a world crisis before.
Alignment of values and culture
In addition to strong investment performance from our Manager,
we expect it to adhere to the very highest standards of Responsible
Investment and that its values, culture, expectations and aspirations align
with our own. As an original signatory to the United Nations Principles
for Responsible Investment (‘UNPRI’), BMO GAM has achieved the
maximum rating of A+ for key areas of their Responsible Investment
approach and active ownership in listed equities. For us, therefore, a
key aspect of the change of ownership of BMO GAM is the cultural fit
Our purpose is to provide a diversified, convenient and cost effective global investment choice to meet
the longer term investment needs of investors large and small. Our objective is to secure long-term
growth in capital and income for our shareholders. Our long-term strategy incorporates a commitment to
achieving net zero carbon emissions by 2050, at the latest.
Strategic Report*
* Further to the provisions of the Companies Act 2006 relating to the preparation of a Strategic Report and concerning non-financial and diversity information, we have integrated the information required for a
Non-Financial Information Statement (‘NFIS’) into this Strategic Report with a view to cohesive reporting. The NFIS requirements are explained on page 107, together with a guide to the location of the embedded
information.

Report and Accounts 2021 | 9
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Strategic Report
with Columbia Threadneedle. The Board has considered the Manager’s
culture and values as part of the annual assessment of its performance
and in determining whether its reappointment is in the interests of
shareholders. With Columbia Threadneedle, and as part of Ameriprise,
BMO GAM can be expected to continue its long-established culture of
diversity, collaboration and inclusion, all of which are anchored by shared
values and industry-leading employee engagement in keeping with the
Board’s own expectations and beliefs. The Board will continue to monitor
these attributes and achievements within the combined organisations,
recognising their importance and contribution towards the wider aspirations
of establishing a more sustainable financial system. In alignment with
that culture and our shared values, we aim to pursue our strategy and
objectives through the consistent application of the very highest standards
of transparency, corporate governance and business ethics.
Responsible Investment impact
Our environmental, social and governance principles are key elements
of our Responsible Investment approach and are central to our objective
to deliver sustainable investment performance over the long-term. We
continue to innovate, review and challenge our approach to Responsible
Investment, recognising our globally diversified strategy. As we continue to
evolve our approach, our Responsible Investment principles will remain at
the core of our strategy and governance.
The direct impact of the Company’s activities is minimal as it has no
employees, premises, physical assets or operations, either as a producer
or a provider of goods or services and it does not have customers in the
traditional sense. It is therefore exempt from reporting on its energy and
carbon emissions under the Streamlined Energy and Carbon Reporting
requirements.
Manager evaluation and alignment of shareholder interests
An important responsibility of our wholly independent non-executive Board
of Directors is the robust annual evaluation of our Manager’s performance
and its capabilities and resources, given that investment performance and
Responsible Investment are fundamental to delivering sustainable long-
term growth in capital and income for our shareholders. This evaluation is
an essential element in the strong governance and mitigation of risk, as
outlined under the Principal Risks identified on page 32. The process for
the evaluation of our Manager for the year under review and the basis on
which the reappointment decision was made are set out on page 49. The
management fee is based on the Company’s market capitalisation, thus
aligning the Manager’s interests with shareholders’ interests through share
price performance. Details of the new management fee arrangements,
effective 1 January 2022, are set out in the Chairman's Statement and in
the Report of the Management Engagement Committee.
Managing risks and opportunities
We seek to make effective use of our corporate structure and the
investment opportunities that lead to long-term growth in capital and
income for our shareholders. These opportunities do not come without
risks and therefore the performance of our Manager is monitored at
each Board meeting on a number of levels. In addition to managing the
investments, the ancillary functions of administration, company secretarial,
accounting and marketing services are all carried out by the Manager.
It reports on the Company's investment portfolios; the wider portfolio
structure; risks; compliance with borrowing covenants; income, dividend
and expense forecasts; errors; internal control procedures; marketing;
shareholder and other stakeholder issues, including the Company’s share
price discount or premium to NAV; and accounting and regulatory updates.
The performance of each individual investment portfolio is reviewed
through a series of presentations given by each specialist investment
management team throughout the year.
Shareholders can assess the Company’s financial performance from the
Key Performance Indicators that are set out on page 13 and, on page 32,
can see what the Directors consider to be the principal and emerging
risks that it faces. The risk of not achieving the Company’s objective of
delivering long-term growth in capital and income, or of consistently
under-performing its benchmark or competitors, may arise from any or
all of inappropriate asset allocation and/or stock selection, poor market
conditions, expensive or ineffective use of gearing, poor cost control
and service provider governance issues. In addition to monitoring our
Manager’s performance, commitment, available resources and its systems
and controls, the Directors also review the services provided by other
principal suppliers. These include the Custodian and Depositary in their
duties towards the safeguarding of the Company's assets.
The principal policies that support our investment and business strategy
are set out on page 37, whilst the Fund Manager’s review of activity
in the year can be found on pages 14 to 19. In light of the Company’s
strategy, investment processes and control environment (relating to both
the oversight of its service providers and the effectiveness of the risk
mitigation activities), we have set out in our long-term viability statement
on pages 35 and 36 our reasonable expectation that the Company will
continue in operation for at least the next ten years.
On page 32 we show how we employ our strategies to mitigate the principal risks associated with our:
• Investment proposition and its promotion
• Investment performance
• Appointed Manager including the integration of BMO
GAM's business with that of Columbia Threadneedle
• Service providers and systems security

10 | F&C Investment Trust PLC
Fund Manager and management of the assets
As Fund Manager on behalf of our Manager, Paul Niven is responsible for
developing and implementing the investment strategy with the Board
and for the day to day management of the total portfolio, covering the
entire range of individual investment portfolio strategies. His role covers
tactical decisions over the allocation of assets between the different
investment portfolios as well as determining the level and timing of
gearing within the range prescribed by the Board. He has responsibility
for overall portfolio composition but delegates stock selection decisions.
The underlying specialist portfolio management teams are responsible
and accountable to him and ultimately to the Board for their investment
performance.
Marketing
The routes and access to stock markets have changed beyond all
recognition since the Company first set out to provide investment
opportunities to investors of more moderate means but, with the majority
of the shares now in the hands of tens of thousands of retail investors, the
Company continues to serve its purpose well. Reflecting changes in the
market in more recent years, an increasing proportion of the Company’s
shareholders hold their investments via third-party platforms, as well as
through the BMO Savings Plans which remain a cost effective and flexible
way to invest. Recognising the changes in how our key target market is
choosing to invest, as well as the benefits of the Company continuing to
maintain and grow a well-diversified underlying shareholder base, a key
focus of our marketing activities is to maintain, and ideally increase, the
proportion of shares held via third-party platforms and the BMO Savings
Plans. This has been on an upward trend in recent years, as shown in the
Key Performance Indicator on page 13.
Section 172 statement
Section 172(1) of the Companies Act 2006 ('Section 172') requires that
a Director must act in the way they consider, in good faith, would be
most likely to promote the success of the Company for the benefit of its
members (i.e. shareholders) as a whole and in doing so, have regard
(amongst other matters) to the likely consequences of any decision in the
long term; the need to foster the Company’s business relationships with
suppliers, customers and others; the impact of the Company’s operations
on the community and the environment; the desirability of the Company
maintaining a reputation for high standards of business conduct; and the
need to act fairly as between members of the Company.
Against the backdrop of the ongoing Covid-19 pandemic, the Directors have
had regard to the matters set out in Section 172 and have continued to act
to promote the success of the Company for the benefit of its shareholders
as a whole. This included the likely consequences of their decisions in
the longer term and how they have taken wider stakeholders’ needs into
account. Details of the Company's key stakeholders and the engagement
undertaken in 2021 are set out below.
As a long-term investor we always look to the future and to the success of
the Company from that perspective. We believe that the Company provides
a clear investment choice, not only for investors large and small, but also
for those starting their investment journey. As reported above, we continue
therefore to promote the Company through marketing and public relations
initiatives and, at a wider social level, by supporting broader financial
education across schools and universities as explained below. Despite the
constraints imposed by Covid-19 restrictions, we have continued to work
on these initiatives and towards the optimal delivery of the Company’s
investment proposition and to promote the success of the Company for the
benefit of all shareholders, stakeholders and the community at large.
Key stakeholder and shareholder engagement
Stakeholders Engagement and Outcomes in 2021
The Manager
The Board's main working
relationship is with our Manager
with the aim of achieving the
Company’s investment objective
in an effective, responsible and
sustainable way in the interests
of shareholders, future investors
and society at large.
Engagement with our Manager is continuous through regular Board meetings and discussion. Emphasis was on investment
performance and our progress towards transitioning the Company’s investment portfolio to net zero carbon emissions by 2050,
at the latest. Our approach towards Responsible Investment and aspects concerning environmental, social and governance
('ESG') issues are set out on pages 20 to 27. We also show, for the first time, the key performance indicators that are now in
place to measure our progress in meeting this objective. The portfolio activities undertaken by our Manager and the impact of
decisions affecting investment performance are set out in the Fund Manager’s Review on pages 14 to 19.
With BMO GAM we are well placed to encourage awareness and dialogue on responsible investment issues amongst the wider
community. As in 2018 and 2020, we have therefore decided to sponsor a lecture at The Guildhall, London, this time under
the theme "Smart choices for a smarter future". It 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.

Report and Accounts 2021 | 11
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Strategic Report
Key stakeholder and shareholder engagement
Stakeholders Engagement and Outcomes in 2021
Lenders
Our lenders are key stakeholders
as we use borrowings to enhance
returns to shareholders over the
longer term.
We keep our lenders informed through monthly covenant compliance reporting. During the year we sought consent to issue
a total of £280m of new fixed rate senior unsecured private placement notes as reported on page 19. The pricing levels were
highly attractive by historic comparisons and improve further the maturity profile of the Company’s borrowings.
Child Trust Fund, Junior ISA and other young investors
Many of our underlying
shareholders are young and hold
their shares through their parents
in BMO’s Child Trust Funds and
Junior ISAs. We hope to retain
these investors for the longer
term and also foster education
among young people more
generally.
Now that many Child Trust Fund accounts have reached maturity, our focus is on keeping as many of these young investors
with us as possible. Ahead of account maturity, BMO GAM writes to their parents setting out their options. Time will tell how
successful this has been in keeping these young investors, but retention rates are currently ahead of expectations.
We continue, albeit in a small way, our financial education programme designed to help people understand better the
opportunities and significance of not just of saving, but how their savings can work much harder through investment over the
long-term. In the later part of the year, we delivered three schools workshops (one virtually, two in person) and we have more
planned in 2022, Covid-19 permitting.
We also ran the “F&C Investment Trust Prize”, a competition designed to inspire financial thinking among students and
showcase their financial knowledge. Entrants were invited to answer questions on how young people provide for their future;
how sustainability and ethical principles affect their choices; and how diversity and inclusion might continue to impact society.
Shareholders
Albeit not in the traditional sense,
we see our shareholders as
customers who we hope will stay
with us and reap the benefits of
investing over the long-term.
The Chairman and Senior Independent Director are always available to engage with shareholders. Access to the daily
publication of our NAV and monthly factsheet is available from our website.
We also publish our detailed half year and annual results for main register shareholders and BMO Savings Plan investors. As an
alternative, we provide the option of a short notification summary with the main highlights and access details to where the full
information can be found. In addition to main register shareholders, savings plan investors are encouraged to participate fully
at shareholder meetings.
In 2021, we held an online event at which shareholders and savings plan investors were invited to participate by asking
questions to the Board after hearing a presentation by the Fund Manager. This took place two weeks ahead of the formal
annual general meeting which, due to the pandemic, was limited to the minimum number of shareholders permitted by the
articles of association. The later date of the annual general meeting was to allow sufficient time for shareholders and plan
holders to submit their votes on the resolutions after engagement with the Board at the online event. Voting at the annual
general meeting was taken on a poll and the results on each resolution, which were all strongly in favour, were published on
the website.
The Company has very few institutional shareholders and instances of engagement are therefore very rare but will always be
reported to the Board.
Wealth managers and independent financial advisers
BMO GAM has a team dedicated
to fostering good relations
with wealth managers and
independent financial advisers
and keeping underlying
investors informed, with the
aim to promote the Company’s
investment proposition and
improve the share price.
This team organises meetings with wealth managers and independent financial advisers as well as preparing webinars,
interviews, newsletters and videos shared via several media channels. The team gathers feedback and answers questions in
relation to the Company and its investment strategy. Feedback from these activities is reported regularly to the Board. Any
contact with the Company’s institutional shareholders is also reported.

12 | F&C Investment Trust PLC
products in the financial services industry are not required to disclose the
Total Costs measure and like-for-like comparisons against investment
trust companies are therefore not possible. Our Ten Year Record on page
28 shows the extent to which we have kept costs under control, which
has made a considerable contribution to our results over multiple years.
We promote and market the Company in a number of ways. One of our
KPIs is a marketing performance measure that tracks the percentage of
the Company’s shares held on retail platforms as we recognise that these
can provide investors with convenient and relatively low cost access to
the shares and the creation of an important source of demand. A healthy
level of demand will show the extent to which we are continuing to
meet our purpose and should help to support the share price. In turn, a
well-supported share price should help the Board towards achieving its
aspiration of a consistently narrow share price discount. The percentage
of shares held on platforms resumed its upward trend in 2021 having
been set back slightly in 2020 following the market shock and uncertainty
around Covid-19.
In 2021, the Board added KPIs to measure progress towards transitioning
the Company’s portfolio to net zero carbon emissions by 2050, at the
latest. Those KPIs are shown within the Responsible Investment report on
pages 20 to 27.
We assess the efficacy of our strategy by comparing the Company’s long-term performance against the
following five key measures: Performance, Dividend, Discount, Efficiency and Marketing. Detailed commentary
on these measures can be found in the Chairman’s Statement and in the Fund Manager’s Review.
Key Performance Indicators
“2021 marked the 51st
consecutive increased annual
dividend and the one hundred
and fifty fourth annual dividend
payment”
(1) See Alternative Performance Measures on pages 103 and 104
Our Key Performance Indicators ('KPIs') have been set to help us achieve
our overriding strategic objective of delivering long-term growth in
capital and income for our shareholders. Whilst the NAV per share is
an important indicator of our portfolio performance, we recognise that
the share price total return, which combines a measure of the two,
is ultimately what shareholders look to. Income is important and we
aspire to a rising dividend in real terms over the long run, but this is not
achieved at the expense of risking capital growth potential. A balance is
struck between income and capital needs, which may result in periods
when the dividend is uncovered in pursuit of superior total returns.
Nevertheless, with our substantial revenue reserve and the flexibility
to use capital reserves, we are in the enviable position of being able to
continue our long track record of dividend increases, even over the last
two years when many companies passed or cut their dividend payments.
2021 marked the 51st consecutive increased annual dividend and the one
hundred and fifty fourth annual dividend payment.
Volatility in the share price discount to the NAV per share can be regarded
by many as an investment opportunity but can be very unsettling for
shareholders. We therefore show this disparity between the price and
the NAV per share as a KPI and have set a policy aspiration to see the
Company’s shares trading steadily at, or close to, the NAV per share.
Whilst not a panacea for controlling the discount, the application of a
consistent buyback policy over many years has seen the disparity narrow
significantly. The share price moved to a small premium at the end of
2019 but has since moved back to a discount. The Board remains resolute
in applying the necessary measures towards achieving this important
policy aspiration.
We are also very focused on costs. The recognised method of cost
measurement within the investment trust industry is Ongoing Charges
(1)

and this has continued on a downward trend. Our Total Costs
(1)
ratio,
which includes transaction costs, was also lower. Many competing

Report and Accounts 2021 | 13
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
(1) See Alternative Performance Measures on pages 102 to 104 for explanation.
(2) See Glossary of terms on page 105 for explanation of “benchmark”.
(3) These are considered by the Board to be the most relevant and reliable industry-standard peer group performance measures.
Efficiency: Costs
Year to:
2021
%
2020
%
2019
%
2018
%
2017
%
Our policy is to control the costs of running the Company
Ongoing charges
(1)
0.54
0.590.630.650.79
This data measures the running costs as a percentage of the average net assets
in the year. Total Costs are inclusive of interest expense and transaction charges.
Total costs
(1)
1.161.191.051.011.06
Source: BMO GAM
(Discount)/premium: Share price (discount)/premium to NAV
2021
%
2020
%
2019
%
2018
%
2017
%
We aspire to seeing the shares trading at or close to NAV per share
(Discount)/premium at 31 December
(1)
(7.3)
(5.4)1.5(1.5)(4.3)
This is the difference between the Company's share price and the NAV per
share. It is an indicator of excess supply over demand for the Company's
shares in the case of a discount and the excess demand over supply in the
case of a premium.
Average discount in year
(7.2)
(6.1)(2.2)(1.3)(6.7)
Source: BMO GAM
Dividend: Dividend Growth per annum (Annualised)
1 Year
%
3 Years
%
5 Years
%
10 Years
%
We aim to deliver a rising dividend stream in real terms over the longer
term
FCIT dividend
(1)
5.85.25.46.1
This shows the Company’s compound annual dividend growth rate and
compares it to the Consumer Price Index.
Consumer Price Index 5.42.42.51.9
Source: BMO GAM and Refinitiv Eikon
Performance: Total returns (Cumulative)
1 Year
%
3 Years
%
5 Years
%
10 Years
%
We aim to secure long-term growth in capital and income
FCIT share price
(1)
19.453.584.7291.9
This compares the Company's share price and NAV total return against those
produced by the constituents of the benchmark and our peer group, and
against inflation.
The ten year figures for the benchmark take into account the change in January
2013 from a composite benchmark (40% FTSE All-Share/60% FTSE WI World
Index ex UK) to the FTSE All-World Index.
FCIT NAV (with debt at market value)
(1)
21.762.783.8271.6
Benchmark
(2)
19.563.477.7254.1
AIC Global Sector Median share price
(investment companies)
(3)
13.658.484.7266.6
AIC Global Sector Median NAV
(investment companies)
(3)
15.361.582.7240.2
IA Global Sector Median
(open-ended funds)
(3)
18.163.473.0226.9
Consumer Price Index
5.47.412.921.0
Source: BMO GAM, Morningstar UK Limited and Refinitiv Eikon
Strategic Report
Marketing: Platforms
Year ended 31 Dec:
2021
%
2020
%
2019
%
2018
%
2017
%
We promote access to the Company's shares through all available distribution
channels with the aspiration of being on as many platforms as possible.
Platforms 65.5264.8664.9764.9463.23
This shows how the percentage of shares held through platforms, including the
BMO Savings Plans, has been increasing.
Other individuals, advisers and institutions34.4835.1435.0335.0636.77
Source: BMO GAM

14 | F&C Investment Trust PLC
Market backdrop
While Covid-19 continued to disrupt economic and corporate activity,
2021 was an excellent year for equity markets and a good one for our
shareholders. The US, where we invested most of our assets, was once
again the leading region globally, with a gain of almost 29%, meaning
that the S&P500 has delivered a positive annual return in every single year
except one since the Global Financial Crisis over a decade ago. Indeed, such
has been the strength of the recent recovery that the US equity market has
more than doubled from the pandemic lows of March 2020.
The year started with many countries in lockdown but the nascent roll out
of vaccines led most market commentators to conclude that, as the year
progressed, economic and corporate activity would recover quickly, with the
global population and the world economy freeing itself from the restrictive
impacts of Covid-19. At the start of 2021 stock markets, and our share price,
were driven by strongly rising economic momentum, buoyed by record
low interest rates and abundant monetary and fiscal stimulus. Despite
general optimism that the impact of the pandemic would recede there was,
unsurprisingly, significant volatility in investor expectations during the year
as several new variants emerged which appeared both more transmissible
and, in the case of Omicron, more resistant to vaccines. Hope that the
world would quickly move beyond Covid-19 diminished as fresh restrictions
were implemented, although news of each new variant had a diminishing
negative impact on markets.
Beyond growth concerns arising from the pandemic, inflation was a key
focus. Global inflationary pressures broadened across both goods and
services, accelerating towards the end of the year, reaching the highest
levels seen for decades. Initial hopes that the increases in inflation rates
would prove transitory and would be swiftly resolved through a reduction in
pent up demand and alleviation of supply constraints diminished as the year
progressed. Energy and commodity prices strengthened, with oil posting a
50% rise; its largest annual rise since 2009, and a sharp rise in natural gas
prices was of notable concern in Europe. In response to the rise in inflation,
central banks became increasingly hawkish as the year progressed, pulling
forward expectations of interest rate rises from historically low levels
and the scaling back of unprecedented levels of asset purchases. Indeed,
towards the end of the year, the Bank of England raised rates for the first
time since 2018 and the US Federal Reserve moved to double the pace of
the tapering of asset purchases and signalled that both rate rises and the
withdrawal of liquidity though quantitative tightening were likely in the
year ahead.
Swings in expectations over the economic backdrop led to several
leadership changes within the market during the year, between lowly
rated ‘value’ stocks and the ‘growth’ segment of the market. This was
induced by growing optimism in the fight against Covid-19 as the first
vaccines began to be rolled out and investors began to sell many of the
‘stay at home stocks’ that had performed so well in 2020. While growth
stocks have been significant outperformers, financials, technology, energy
and cyclical areas of the market all performed well in 2021, leading to a
more balanced outturn than has been the case in recent years. We rotated
our exposure away from the highly valued growth segment of the market
through the year as explained later in this report.
“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.”
Fund Manager’s Review
Paul Niven, Fund Manager
Source: BMO GAM
745
765
785
805
825
845
865
885
905
925
945
Dec 2021June 2021Mar 2021Sept 2021Dec 2020
pence per share
FCIT share price 2021

Report and Accounts 2021 | 15
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Contributors to total returns in 2021
%
Portfolio return
(1)
19.2
Management fees(0.4)
Interest and other expenses(0.3)
Buy backs0.1
Change of value of debt0.6
Gearing/other2.5
NAV total return21.7
Increase in discount(2.3)
Share price total return19.4
FTSE All-World total return19.5
Source: BMO GAM
(1) See Glossary of terms on page 108 for explanation of "Portfolio return".
Strategic Report
Investment Performance
As explained on page 8, our investment strategy remains one of managing
the Company’s assets across a range of diversified investment portfolios,
each adopting their own individual investment approach. Each individual
portfolio invests on a global or a regional basis using a wide range of skills
and resources available from the Manager or, in the case of the majority
of our US exposure, from external third-party managers. We invest in both
public and private equity opportunities across the world and adopt this
diversified approach to smooth returns for investors with the objective of
delivering growth in both capital and income over the long-term.
Our portfolio of investments delivered a return of 19.2% for the year, just
below the benchmark return of 19.5%. A breakdown of the contributors to
the NAV total return is given in the table below. Tables covering year-end
allocations and underlying geographic exposures are also shown.
Underlying Classification of Listed Investment Portfolio as at
31 December 2021
Technology24.1
Consumer Discretionary16.8
Industrials14.9
Financials13.8
Healthcare11.7
Consumer Staples6.0
Basic Materials3.8
Telecommunications3.5
Energy2.7
Real Estate1.7
Utilities1.0
100.0
Source: BMO GAM
Unlike the US and Europe which posted high levels of absolute returns,
equity market performance was generally more lacklustre in Japan and
Emerging Markets. In common with other equity regions, earnings during
the year grew substantially more than prices but, in contrast to the US,
both areas suffered a substantial de-rating in valuations. Concern over a
slower rollout of vaccines amongst the population in these regions dented
investor sentiment and, within Emerging Markets, China, where we had
limited direct exposure, was a notable area of weakness, declining by 20%
on the year. A regulatory crackdown also affected several sectors in China
and there was substantial concern over property markets, with Evergrande
Group under pressure as it struggled to meet scheduled debt payments.
In contrast to much of the past decade, the UK equity market posted
much better returns in 2021 relative to global markets, gaining by over
18%. The market was buoyed by exposure to commodity and financial
services companies and, as elsewhere, a robust recovery in corporate
earnings. In currencies, over the year, sterling fell by 1.0% against the US
dollar but rose by 6.3% against the euro.
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
(1)
%
Benchmark
weighting %
Our strategy performance
in sterling %
Net index performance
in sterling %
North America40.657.862.423.727.6
Europe inc UK10.023.516.713.917.0
Japan4.66.96.32.62.1
Emerging Markets7.29.310.13.8(1.6)
Developed Pacific–2.54.5––
Global Strategies
(2)
27.6––19.019.5
Private Equity
(3)
10.0––30.1–
(1) Represents the geographic exposure of the portfolio, including underlying exposures in private equity and fund holdings.
(2) The Global Strategies allocation consists of Global Income, Global Smaller Companies, Global Value and Global Sustainable Opportunities.
(3) Includes the holdings in Schiehallion and Syncona.
Source: BMO GAM

16 | F&C Investment Trust PLC
Listed Equities
There was a wide dispersion of returns between our listed strategies,
all of which delivered positive absolute gains. With a return of 23.7%,
North America was highest once again. Europe’s gain of 13.9% was below
those of global indices but significantly ahead of the 3.8% from Emerging
Markets and 2.6% from Japan.
Our North American exposure lagged strong benchmark returns despite
outperformance from our value manager, Barrow Hanley. The 26.5% return
from the value portfolio exceeded the 20.9% from our growth portfolio,
managed by T Rowe Price, even though the comparator growth index led
the corresponding value index over the year. A rise in inflation and interest
rate expectations, along with a favourable recovery in the global economy
and corporate earnings, led to a more balanced outturn within markets
and significant uplifts in both energy stocks and financials as well as long-
term market leaders in disruptive technology.
The US value portfolio benefited from holdings in financials, including
Goldman Sachs, AIG and Wells Fargo which all gained between 50% and
65%. There was disappointment from Altice, the telecoms company, which
suffered from poor net subscribers resulting in a decline of over 50%. Our
holding in Las Vegas Sands suffered largely due to concerns over travel
restrictions impacting the performance of its business interests in Macau
and fears over tightening of Chinese regulatory policies. International
Flavors & Fragrances, a leading producer of flavours and fragrances used in
food and household products was added in our value strategy during the
year. It continues to trade at a discount to historic ratings despite having
steady organic growth, strong cashflows and high barriers to entry.
The US growth portfolio was helped by significant positions in Microsoft
and Alphabet which gained over 50% and 60% respectively. In contrast,
one of our largest holdings, Amazon, had a relatively disappointing year
with only a small positive return. A position in Tesla was added during
the year, but limited exposure to this highly performing stock detracted
from relative returns as the world’s most highly valued car manufacturer
delivered another year of excellent returns, gaining by over 50%,
propelling the market value of the company to over $1 trillion. A continued
underweight stance in Apple, the most valuable company in the world,
was also detrimental to returns as the stock gained by over 35% during
the year and the company became the first in history to exceed $3 trillion
in market value.
After a very positive 2020, our European portfolio again delivered good
levels of return although its overall gain of 13.9% trailed the benchmark’s
17.0%. Semiconductor equipment company ASML again fared well,
producing a return of over 65% in becoming the largest company in
Europe, by market capitalisation. It holds a dominant market position
globally and looks set to benefit not only from a secular increase in
demand for semiconductors in general terms, but also from a drive to
onshore production and increased security of supply. Novo Nordisk, the
world’s largest diabetes pharmaceutical company performed equally well. Its
rise of 65% reflected solid results throughout the year as well as the launch
of obesity drug, Wegovy, for which demand substantially exceeds current
levels of supply. Rotation in leadership within the market led to the winners
of 2020 rapidly becoming the laggards, which was largely characterised by
under-performance of some of the higher growth names, especially online
businesses. Just Eat halved in value while Delivery Hero fell by over a quarter.
Their performance had been boosted earlier in the pandemic and, while they
have faced increased competition and fee caps, the acquisition of GrubHub
by Just Eat was taken negatively by investors.
Japan was a disappointing area in terms of absolute returns although our
portfolio eked out a marginal relative gain, returning 2.6% versus 2.1% from
the benchmark. While the portfolio held an underweight stance in some of
the higher performing areas, such as energy, banks and resources, positive
stock selection offset these headwinds. Zozo, Japan’s leading online fashion
company, was up by around 30% as it found its position structurally
strengthened by economic lockdowns, helping it to grow its user base and
cementing its market dominance. Keyence achieved consecutive record
revenue and operating profit during the year as it continued to benefit
from an acceleration in global automation investment, as companies seek
to make their supply chains more resilient.
While our Emerging Markets portfolio produced positive gains of only
3.8%, this was against the background of a 1.6% decline in broad market
indices for that asset class. China performed poorly, as a regulatory
clampdown on the internet, education and gaming sectors amongst
others created uncertainty over the operating environment for investors.
Limited exposure to index heavyweight Alibaba, which fell by almost
50%, was beneficial although our holding in Tencent was a relative
detractor with a fall of 20%. Elsewhere, our allocation to the Indian equity
market benefited relative returns materially, with Infosys gaining by over
50% and Tata Consultancy Services amongst our best performers, with
both benefiting from the ramp-up of the digitisation of the corporate
landscape. Our holdings in Mexico, including long-term holding Walmart
de Mexico, which controls around 50% of Mexican formal retail and 70%
of profits in that segment, also contributed positively. On the downside,
the largest detractor to relative performance in the Emerging Markets
portfolio despite our holdings in TSMC and Win Semiconductors, both of
which performed well, was the lower than benchmark exposure to Taiwan,
which continued to perform well in 2021. AIA was not directly impacted in
the regulatory clampdown that took place during the year but insurers, more
generally, were shunned on the back of worries of their exposures to the
property sector, which is under pressure concerning missing bond payments
at companies such as Evergrande.
In terms of style exposure, our Global Strategies include components
covering Global Income, Global Smaller Companies, Global Sustainable
Opportunities and Global Quality Value. Together, as Global Strategies, they
delivered an aggregate return of 19.0%. As was the case elsewhere in the

Report and Accounts 2021 | 17
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Investment portfolio strategies attribution in Sterling
1 year %3 years %5 years %
RegionReturn Index return Return Index return Return Index return
North America
23.727.676.185.8111.7108.3
Europe inc UK
(1)
13.917.053.443.555.551.5
Japan
2.62.138.029.343.736.8
Emerging Markets
3.8(1.6)22.828.446.145.9
Global Strategies
(2)
19.019.554.963.4
72.2
79.6
Private Equity
30.1
–
47.9
–
87.5
–
The Company’s benchmark is the FTSE All-World Index whereas for the purposes of this table the relevant regional sub-indices are used for comparison, except in the case of
Emerging Markets where the MSCI Emerging Markets Index is used.
(1) Performance prior to 30 June 2018 represents Europe ex UK.
(2) The Global Strategies allocation consisted of Global Income, Global Smaller Companies, Global Quality Value and Global Sustainable Opportunities as at 31 December but
performance also includes the historic allocation to Global Multi-Manager.
Source: BMO GAM
Private Equity portfolio

Commitment
outstanding
31 December
2021
£’000s
Value of
holding
31 December
2021
£’000s

Total Private Equity portfolio
(1)
Brought forward256,829374,430
Committed in 2021
(2)
15,000–
Cash drawn in 2021
(2)
(85,979)85,979
Cash returned in 2021
(2)
–(75,170)
Valuation movements
(3)
–136,493
Exchange movements
(3)
1,233(2,865)
Total Private Equity portfolio
(3)
Carried forward187,083518,867

(1) Exchange rates ruling at 31 December 2020
(2) At actual exchange rates in 2021
(3) Exchange rates ruling at 31 December 2021
Source: BMO GAM
Strategic Report
portfolio, there was an extremely wide dispersion between the returns
from these components in both absolute and relative terms. Our allocation
to higher yielding stocks in Global Income delivered a total return of 30.7%
on the year, and while the Global Smaller Companies component produced
a respectable return of 11.7%, this was well behind large cap equivalents.
Within the small cap universe market returns were dominated by the
sharp recovery in more volatile, lower quality areas that have consistently
underperformed over the long-run and therefore the focus on higher
quality, profitable companies by the Global Smaller Companies component
negatively impacted performance. Our Global Quality Value allocation
modestly lagged with a 17.5% return, due in part to an overweight position
in Asian stocks where performance fell short of global market returns. Poor
stock selection in Europe was an added feature, which included positions
in consumer goods company, Unilever, and lubricant manufacturer, Fuchs
Petrolub, both of which declined in value.
Despite our Global Sustainable Opportunities portfolio producing an
absolute return of 16.8%, its returns trailed the market. In terms of what
went well, there was a positive contribution within Industrials with Acuity
Brands gaining by over 70% and Schneider Electric by almost 40%. Both
are seeing supportive industry fundamentals and ongoing profitability
trends. Within Healthcare, Mettler-Toledo International and Thermo Fisher
Scientific rose by 45-50%, with both enjoying continued strength of
execution driven by their reputable brand portfolios. These positive drivers
were offset by negative stock selection in Information Technology with
Everbridge, who saw guidance downgraded following the departure of its
CEO, and PayPal, which was a major winner of 2020 through e-commerce
growth. Both suffered from profit taking during the ‘re-open’ trade of 2021.
In utilities, Orsted saw rising competitive pressures driving subdued
performance following a very creditable 2020.

18 | F&C Investment Trust PLC
Private Equity
Your Company has a long history of investing in private market assets and
throughout that time has typically enjoyed excellent returns from these
holdings. This was extended further in 2021 with a very positive 30.1% return
on our Private Equity portfolio, which was well ahead of the returns from
listed market equivalents.
It was a very good year for our investments, managed by BMO Global
Asset Management, where holdings gained by 39.2% on the year. Our
commitment programme has produced investments over recent years and
we are now beginning to see a very healthy level of value creation as well
as our first exit in the co-investment space. We realised a 4.2x return from
the €29.4m sale of Pet Network, a pet supply retailer which operates in
South Eastern Europe, having invested in 2018. Elsewhere in this programme
we enjoyed further progress in our holding in Inflexion Strategic Partners,
which provides us with an interest in one of Europe’s leading mid-market
Private Equity firms. The value was written up to £78.6m, from £53.2m at
the start of the year reflecting strong operational performance.
As previously reported, we have made relatively new commitments in a
bespoke Pantheon Future Growth programme which invests in leading
growth and venture private equity managers on a global basis. It will
be some years before these commitments are fully drawn, but we
have already seen an early realisation from an underlying investment
in Gyroscope Therapeutics, a leading gene therapy firm which Novartis
agreed to purchase in a deal worth up to $1.5bn. Gyroscope was founded
by Syncona, the life sciences investor which is another of our holdings. As
the largest holding in its portfolio, Syncona also benefited from this deal
but nevertheless had a disappointing year, falling by 18.8% as its premium
rating declined.
The historic fund of fund holdings which we hold with HarbourVest and
Pantheon had a very good year, delivering returns of 23.1%. We continue to
work with the managers to realise value from these holdings as they head
towards their end of life. They represented 2.1% of total portfolio value as at
end of 2021.
Portfolio Activity
Our most significant investment activity over the course of the year was
to reduce further our exposure to highly rated US large cap growth stocks,
managed by T Rowe Price. These sales totalled approximately $425m
and followed the complete sale of an internally managed US growth
stock portfolio in 2020. Having started 2021 with around two thirds of our
US strategy exposure held in growth stocks, by the end of the year this
weighting had been levelled up to a broadly equal allocation. These moves
were intended to create more balance in our portfolio allocations with the
sales proceeds from highly valued areas of the equity market being largely
re-invested into more lowly rated US value stocks, managed by Barrow,
Hanley, and into our Global Income strategy which targets higher yielding
stocks on a global basis.
Aside from rotation away from US growth stocks, we made several other
more modest changes in the portfolio during the year. Our weighting in
Emerging Markets was reduced during the first half of the year partly due
to concerns over the Chinese regulatory crackdown and the impact on the
market there.
Outside the listed markets, we continued to make progress in our Private
Equity allocation, which ended the year at 10% of our total portfolio. It still
remains early in the life of many of our recent commitments but, as noted
above, 2021 was an excellent year from our newer programme of Private
Equity investments with our first realisation being delivered. Most new
commitments were made to the Pantheon Future Growth programme,
where we ended the year with an allocation to sixteen high conviction
venture and growth private equity funds and 90% committed from our
intended allocation of $180m. During the year, we also made a small
number of selective direct investments, including a £12m allocation to
Jersey Telecom’s Internet of Things business, co-investments and a new
investment into Schiehallion C shares. This closed-ended fund holding
takes positions in late-stage private businesses, typically in disruptive
technology, and with limited capital commitments investor demand
moved the shares to a substantial premium producing a gain of 30.0% on
the year.
As explained in the 2020 Annual Report, during the latter part of 2020,
we bought £300m of sterling as a strategic, and partial hedge, on our
overseas currency exposure. Towards the end of 2021, we reduced the
size of this hedge to £200m. This position realised a capital gain of £9.1m
on the year. At the financial year end, the position was showing an
unrealised capital loss of £4.8m.
Revenue Returns
While our revenue posted a healthy increase in 2021, underlying
dividend payments from companies materially lagged the rise in
corporate earnings. Timing did play a role and it is likely that companies
chose to preserve cashflow, adopting a relatively cautious policy on
dividend payments in the face of ongoing uncertainty emanating from
the pandemic. Looking forward, provided that the economic backdrop
remains robust and as we move, hopefully, beyond economic restrictions,
we should expect further gains in our revenue in 2022. Nonetheless, our
revenue in 2021 is below that of our planned dividend payment and,
therefore, we will draw down from our revenue reserve in order to part
fund the dividend payment for this year. Our substantial revenue reserve
means that we will be able to continue to support dividend increases in
the coming years.
Gearing
Our gearing stood at 9.4% at the end of the year, above our starting
year level of 8.0%. Gearing added approximately 2.5% to our NAV total
return on the year, whilst the effect of rising government bond yields in
decreasing the fair value of our debt added a further 0.6%.

Report and Accounts 2021 | 19
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Despite rises on the year, interest rates globally remained at amongst
the lowest levels in history. In March, we took advantage of these low
borrowing rates to agree £140m of long-term loans extending out to
between 15 and 35 years. In December, we agreed to borrow a further
£140m for terms of between 16 and 40 years at an average interest rate of
less than 2%. These more recent loans have now been drawn and will be
used to refinance short-dated debt and maturing bank loans.
At year end, our total borrowings were £550m in aggregate. The blended
average interest rate on our outstanding loans was 2.2%, which remains
exceptionally low by historic standards. Over the long run, we expect the
returns from the investments made from these borrowings to exceed the
cost of our debt and therefore to be accretive to NAV returns.
Current Market Perspective
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. As a result of concerns over
supply disruptions and sanctions, commodity prices have risen sharply
and this will place further pressure on inflation rates globally. Expectations
for global growth have also been cut, with Europe particularly exposed
and there is now some greater uncertainty with respect to the near-term
outlook for central bank policy. It may well be that interest rate rises are
more modest than had previously been assumed as policymakers weigh
risks to growth.
The longer-term ramifications of the Russian action are subject to great
uncertainty but we should expect a lasting impact in several areas as a
result of President Putin’s actions to reshape the European security order.
Amongst other areas, the conflict will likely accelerate a re-orientation of
political and economic links and lead to some fragmentation of the global
economy and financial system. Such moves would further push against
globalisation – one of the factors which had reduced inflation in recent
decades. Control of energy supplies and expansion of alternative supply
sources in the West will likely be given greater prominence and defence
spending will rise, while there will be a greater focus on onshoring of some
productive capacity from the corporate sector.
The Company holds very limited exposure to two Russian securities.
The combined weight of these two holdings was approximately 0.3% of
total assets as at the end of the year and our holding in these stocks was
reduced after the conflict began. The local market exchange has, however,
been closed and trading in Russian securities has been suspended. The
Board has made the decision to write down the value of these holdings
for the time being and, once liquidity permits, to seek to divest all direct
exposure to Russian equities.
The immediate impact of Ukraine is to dent an economic recovery that was
underway as the impact of the Omicron variant receded. It will also raise
Strategic Report
inflation in the near-term via the direct impact on food and energy prices
and by exacerbating supply shortages.
Within labour markets in developed markets there are shortages in
specific sectors, a large number of unfilled vacancies and clear evidence
of accelerating wages but what is less clear is whether there has been
a permanent shift in the bargaining power of labour. This is a critical
question, not just for employee income but for corporate margins, for
wider inflationary trends and for global monetary policy. It appears likely
however, that central banks will begin to rein in monetary stimulus,
with several interest rate increases expected in the US and UK in coming
quarters.
One of the lasting impacts of the pandemic is that of structurally higher
levels of global debt. While governments have more tools at their disposal
than households to deal with indebtedness, higher levels of inflation can
be useful in alleviating this burden. This combined with a changed political
environment globally, greater coordination between fiscal and monetary
policy tools, the prospect of de-globalisation and the impact of the
transition to renewable energy globally, suggests that we should prepare
for structurally higher inflation than that which existed pre-pandemic.
Despite this, it is too early to conclude that there is an enduring wage-
price spiral and many prevailing disinflationary trends do remain intact.
The past forty years have been an environment of secularly declining
inflation and interest rates along with high corporate earnings growth
and generally rising equity market valuations. Indeed, equity investors
have enjoyed consistently strong returns in recent years led by the US.
The US equity market has dominated global returns and, within this, a
small cohort of dominant, disruptive technology companies have led the
way. There is little debate on the quality of the franchises which many of
these companies have built but, given outsized performance relative to
cash flow and earnings delivery, there remains little cushion to protect
against any future disappointment in results. Rising interest rates and a
repricing in bond markets do present a risk to valuations in this segment
of the market and, during 2021, we began to see investors take a more
discriminating approach to value within the market. If this persists, then
US market dominance will diminish and geographic and sectoral laggards
will begin to catch up. This backdrop presents a challenge, particularly for
investors who have relied on this narrow, but highly profitable segment of
the market, for portfolio returns. For F&C Investment Trust, the flexibility
and pragmatism which we have in our approach to sourcing and selection
of investment strategies in constructing a diversified portfolio of listed and
unlisted opportunities for shareholders makes us well placed to meet this,
and numerous other challenges.
Paul Niven
Fund Manager
9 March 2022

20 | F&C Investment Trust PLC
Our approach
Responsible Investment issues can present both opportunities and threats
to the long-term investment performance we aim to deliver to our
shareholders. We believe in the power of engaged, long-term ownership
as a force for positive change. We have a manager that applies high
standards of Responsible Investment in managing the investments on
behalf of our shareholders.
Our approach covers our own governance responsibilities on matters
such as the composition of the Board. Most importantly, our portfolio of
investments represents the greatest impact we can have. As Responsible
Investment and sustainability are integral to the longer-term delivery
of growth in capital and income, we believe that our disclosures
should go beyond minimum standards. In setting and reporting on
our Responsible Investment policies, we have considered relevant
regulatory guidance including the Companies Act 2006 (the 'Act') and UK
Corporate Governance Code ('UK Code'). We are also aware of important
emerging standards and legislation, including on climate reporting with
the introduction of mandatory reporting in line with the Task Force on
Climate-related Financial Disclosures ('TCFD'); and work underway on
International Sustainability Standards Setting.
The primary purpose of this report is to provide shareholders with a clear
understanding of our approach to Responsible Investment and how that
is integrated into the Manager’s investment process. It also outlines how
we are implementing our commitment to achieving a net zero carbon
portfolio by 2050, at the latest. We also explain our stewardship in terms
of engagement with portfolio companies and our voting practice; how we
will measure our progress; and how we have performed against those
measures. We recognise the importance of disclosing information that
is relevant, reliable and, as far as possible, ensuring that it is presented
in a consistent way from year to year in order that our progress can be
assessed.
As an investment trust company, the Company is not required to report
against the recommendations of TCFD, unlike other premium listed
“trading” companies. This is a field that is evolving rapidly, however
many of the disclosures within this report overlap with the TCFD
recommendations. There are some TCFD recommendations that are
relevant to trading companies rather than investment companies, but
we recognise that we have a “look-through” responsibility and assessing
portfolio companies’ application of TCFD is an important element of the
investment process.
The Financial Conduct Authority ('FCA') has now published regulations
that require the Company’s Manager, as its Alternative Investment Fund
Manager (‘AIFM’), to report against TCFD at both the AIFM and product
level by June 2024. This means that there will be a TCFD disclosure specific
to the Company’s portfolio available in the future. We may choose
to publish that disclosure in full in the Company’s annual report or to
include a link to the Manager’s website. In the meantime, the Manager
has produced a short document on its climate change approach, which
is structured using the TCFD categories, and is available on its website
(bmogam.com).

The impact of climate change on the value of the Company's investments
has been considered and more information is given in note 2(c)(xiii) to
the Accounts on page 76.
Stewardship
We and our Manager believe that companies with strong management
focus on these areas have the potential to reduce risks facing their
business and deliver sustainable performance over the longer-term.
Investee company boards are expected to disclose to their shareholders
that they are applying appropriate oversight on material issues such as
labour standards, environmental management and tax policies.
If we have concerns, we also believe that engaging with companies is
usually best in the first instance rather than simply divesting or excluding
investment opportunities. However, the Board believes that there are
some business activities which are incompatible with a responsible
approach to investment and where divestment is the only option:
namely, tobacco production, cluster bombs and landmines and thermal
coal. We exclude companies with exposure to these activities exceeding
certain revenue thresholds.
Our Approach to Responsible Investment
As stewards of over £5.8 billion of assets, we take a responsible approach to ESG and have a duty through our
Manager to influence and support positive change.

Report and Accounts 2021 | 21
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Strategic Report
Climate change and our net zero commitment
Over the past 12 months, we have been working with our Manager to
turn this commitment into a robust implementation plan.
Background
The imperative for action became even clearer over the course of 2021.
November saw the long-awaited COP26 meeting. As well as driving some
important progress for government actions, including tighter emissions
targets in many countries, including the UK, the meeting also proved a
catalyst for private sector action. The Glasgow Financial Alliance for Net
Zero brought together financial institutions representing $130 trillion of
assets under management willing to commit to a transition to net zero.
This included our own Manager, as a founder supporter of the Net Zero
Asset Managers Initiative ('NZAMI').
At the same time, regulators and industry bodies have been working to
introduce more standardised reporting of climate risk. In the UK, the FCA
published final regulations on how asset managers and other financial
institutions should disclose climate risk in line with the recommendations
of TCFD. Our investee companies are also facing growing requirements on
climate disclosure, such as forthcoming disclosure requirements from the
Securities and Exchange Commission in the US.
Performance in 2021
For the past three years, we have disclosed the weighted-average carbon
intensity of the Company’s listed investments, in line with the TCFD
recommendations.
The weighted-average carbon intensity of the Company’s equities
portfolio rose in 2021. We believe the primary cause to be the decline in
global economic activity in 2020 during the Covid-19 lockdown, which was
then followed by a partial bounce-back in 2021. We are pleased, however,
that the portfolio carbon intensity remains well below the benchmark
and we will continue to monitor this metric closely. As companies in
our portfolio take steps to implement their emissions reductions goals,
we expect to see this number fall further, in line with our net zero
commitment.
Active use of our voting rights is also an important component of our
stewardship approach. In the absence of explicit instructions from the
Board, our Manager has been empowered to exercise discretion in the
use of the Company's voting rights, in accordance with its own corporate
governance policies. These policies take a robust line on key governance
issues such as executive pay and integrate sustainability issues into the
voting process, particularly climate change and board level gender diversity.
The Manager is a signatory of the UK Stewardship Code. Its statement of
compliance can be found on the Managers’ website at bmogam.com.
Climate change
In last year’s Annual Report, the Board announced a commitment to a
target of net zero emissions by 2050 or earlier for the Company. Over
the past year, our Manager has been working on an implementation
methodology, the initial results of which are included in this report. Our
approach reflects our belief in the power of investor engagement and
wherever possible we aspire to achieve emissions reductions through
encouraging our investee companies to take on and implement ambitious
targets. However, engagement will not be open-ended and we will
ultimately divest from companies that are unresponsive and fail to meet
our expectations.
Private equity
Many aspects of our Responsible Investment activities and reporting
focus on our listed equity investments. However, sustainability issues
are equally significant in private markets. Whilst consistent data and
metrics are a challenge, we believe that there are approaches that can
be effective in identifying Responsible Investment risks and opportunities
and include in this report an example of how our managers are
implementing this.
2019
0
50
100
150
200
250
FCIT
Benchmark
(1)
Tons CO₂e / sales $m
185
125
2020
158
72
Source: MSCI ESG
2021
155
96
(1)
See Glossary of terms on page 105 for explanation of 'benchmark'
Weighted-average carbon intensity

22 | F&C Investment Trust PLC
Our net zero approach
Significant work has been carried out to develop standards for assessing
the net zero alignment of investment portfolios, resulting in the
development of several industry methodologies. Our Manager is using the
Net Zero Investment Framework
(1)
('NZIF') as a basis for its approach. This
is a widely-accepted methodology, being used by 23 of the 43 managers
included in the initial Progress Report of the NZAMI. Our Manager has
published details of how it is implementing this methodology, for equities
and corporate credit
(2)
.
The primary focus of our approach is to assess the climate change
strategies of each of the companies in the Company's portfolio – and
to use our weight as an investor to engage those which fall short of
alignment to a net zero emissions future. The methodology has three key
components:
• Using a range of data sources, we assess companies’ performance
on a range of criteria relating to their emissions management and
strategy and use this to assign an alignment rating. These ratings
range from ‘Aligned’ for the strongest performers, to ‘Aligning’ for
those meeting core expectations, ‘Committed’ for those with net
zero targets but lacking implementation and ‘Not Aligned’ for those
lacking adequate policies. We seek to increase the proportion of
‘Aligned’ companies and to ensure that at least 70% of portfolio
emissions are from companies that are either Aligned or are under
active engagement.
• We calculate portfolio-level emissions intensity
(3)
and seek to
reduce this in line with a net zero trajectory.
• We monitor our investment in firms providing low-carbon
solutions.
The charts here show the Company's current performance on these
metrics, as well as the targets that we have set. At present, only a
small proportion of investee companies are classified as 'Aligned'.
(1)
See www.parisalignedinvestment.org/ for further details.
(2)
See www.bmogam.com and then search 'net zero'.

(3)
The main metric we consider is financed emissions intensity, in line with PCAF and the Net Zero Investment Framework. However we also monitor and report weighted average carbon intensity.
Company-level alignment status, as a % of total portfolio financed emissions
Aligned 1%
Aligning 49%
Committed 6%
Not Aligned 42%
Not Assessed 2%
0
20
40
60
80
100
20212030
Net zero aligned benchmark trajectory
Financed emissions intensity, tonnes CO2e/$m invested
20222023202420252026202720282029
FCIT
This is because the methodology sets a high standard for full net zero
alignment, requiring companies not only to have a net zero target, but
also measures to implement this including ambitious interim targets,
strategy and governance. We expect this proportion to grow over time as
engagement takes effect.
Of the companies that fall short of our expectations for net zero
alignment, the Manager is engaging with 62% (as a proportion of
total financed emissions). In 2022 the Manager will expand further its
engagement, in line with the objective of at least 70% of financed
emissions being represented by companies that are either Aligned or
under engagement.
Financed emissions intensity
The blue line represents a net zero-aligned benchmark trajectory. It is
based on taking the financed emissions intensity of the FTSE All-World
Total Return Index, which is the market benchmark for the Company,
as at the end of 2019, and reducing this by 50% by 2030. The blue bar
represents emissions intensity for the Company as at the end of 2021.
Our aim is, at a minimum, to keep this within the net zero trajectory for
the benchmark – however, given that the Company's starting point was
already below the benchmark, we will strive to significantly outperform
this target. Having said that, we may choose to retain our investments
in certain higher-emissions companies and sectors if we feel those
companies are strongly aligned to net zero or that our engagement is
making good progress.
Where companies are not yet net zero aligned, we will make active use
of our stewardship influence to move them in this direction. This will
include continued active engagement through our Manager, as well as
the use of our AGM voting power. We will focus initially on companies
which are not yet aligned and are high contributors to portfolio emissions.
Over time we will seek to expand this, noting that the NZIF calls for 100%
of investee companies in material sectors to be either already net zero, or
aligned, by 2040.

Report and Accounts 2021 | 23
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Strategic Report
Net zero and Private Equity
Implementing a net zero commitment in private equity investments
presents some unique challenges. Fortunately, there has been significant
progress in the past twelve months in the development of industry
standards. Over 100 UK and European-based private equity/venture
capital firms, representing more than $700m AUM, have joined the UN
PRI-backed Initiative Climat International, including one of our third-party
managers HarbourVest Partners LLC; the Science-based Targets initiative
released guidance for the private equity sector on setting net zero targets
in November 2021; and the Institutional Investors Group on Climate
Change published a net zero methodology for private equity in early
2022, drawing on input from managers including BMO GAM, one of the
managers of our private equity allocation. Pantheon were an early mover
in analysing climate change risk, having worked since 2018 on a climate
mapping tool with consultancy ERM.
BMO GAM included questions on net zero alignment in its annual ESG
survey of our private equity fund managers and co-investments. In the
2021 survey, 21% of managers reported that they track and monitor
greenhouse gas emissions and 16% have net zero targets, of which
86% use carbon offsetting to help achieve these. BMO GAM will seek to
leverage its position to influence private equity managers and drive the
development of reporting on financed emissions and encourage net zero
targets. Filling the emissions data gap is likely to be a key objective in
2022, with potential to then develop a net zero methodology in 2023.
Exercising the right to vote is a key part of our stewardship responsibilities
and an opportunity to influence change. The Manager applies its voting
policy to all listed portfolio holdings. During 2021, the Manager voted
against at least one management proposal at 19% of shareholder
meetings. This compared to 21% of meetings in 2020. One of the most
contentious voting issues remained remuneration. Either by voting
against or abstaining, the Manager did not support 42% (2020: 43%)
of all management resolutions relating to pay, often due to either poor
disclosure or a misalignment of pay with long-term performance. In the
case of concerns relating to decision-making on company boards, lack of
genuinely independent directors or directors overcommitted through other
Voting
19
%

Votes against
management
81
%

Votes with
management
meetings voted
FCIT
364
directorships, the Manager cast votes against 17% (2020: 18%) of those
standing for re-election.
The Manager’s approach to voting is reviewed and developed each year.
For 2022, it will formally implement biodiversity and human and labour
rights criteria into the voting policy. These are topics that the Manager
has engaged with companies on for many years and, in some cases,
already voted against management resolutions or supported shareholder
resolutions. Formally defining expectations in these areas is a significant
step forward.
Engagement will have clear objectives and be time-limited. If companies
fail to respond and continue to fall short of our minimum expectations,
we will divest our holding.
This approach applies to our listed equity holdings. Different
considerations apply in private equity, where data is not available in the
same way and net zero methodologies are more nascent. The case study
below gives an example of how we are approaching net zero in the
Company's private equity holdings.

24 | F&C Investment Trust PLC
During 2021, the Manager engaged with 168 listed companies in our
portfolio to encourage stronger policies and disclosure on a range of
Responsible Investment issues. Company responses to the Covid-19
pandemic continued to be an area of particular focus. The engagement
sought to ensure that staff were supported through measures such as
sick pay, in countries where this was not a mandatory requirement; the
provision of personal protective equipment; and supporting employees
with caring responsibilities. Climate change was also a high priority,
accounting for 22% of total engagement undertaken. Through both one-to-
one dialogue and collaborative work – particularly with the Climate Action
100+ initiative – the Manager called on companies to align their businesses
with a global goal of net zero emissions by 2050 and to put in place robust
implementation strategies to achieve this, including shorter-term targets,
capital expenditure plans and aligning executive pay to climate goals.
Engagement
11
%

Environmental
Standards
4
%

Business Conduct
6
%

Human Rights
23
%

Labour Standards
12
%

Public Health
22
%

Climate
Change
22
%

Corporate
Governance
issues raised with
168 listed companies
across 27 countries
FCIT
765
9
%

Environmental
Standards
5
%

Business Conduct
4
%

Human Rights
29
%

Labour Standards
10
%

Public Health
16
%

Climate
Change
27
%

Corporate
Governance
issues raised with
148 listed companies
across 29 countries
FCIT
638
2021
2020

Report and Accounts 2021 | 25
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Auditor’s Report
We continued our engagement programme with Amazon during 2021
on various topics focused on labour management and its influence on
society in various forms. Since 2019 we have had 27 touchpoints with
the company, varying in nature from one-to-one meetings with senior
management to joining collective investor initiatives on a particular
topic.
Target: SDGs 8, 10, 12, 16
Issue: Human Rights, Climate Change
Amazon (1.88% of the Company's portfolio)
Human rights in the supply chain, Amazon’s work on facial recognition
technology and worker rights were all areas discussed. We continued
to see progress also on prior engagements, with significant
improvements noted in its approach to waste management and
improved disclosure on how it plans to achieve implementation of its
Climate Pledge in its latest sustainability report. Amazon committed
to 100% renewable energy by 2025, 50% of shipments being net-zero
by 2030, deploying 100,000 custom electric vehicles by 2030 and
investing $100 million in nature-based solutions among others. We
have pushed for greater clarity on the implementation of its Climate
Pledge. We will continue to monitor and push for disclosure on
progress against these commitments.
Engagement case studies
Strategic Report
In 2021, Shell was one of the first companies in the energy sector
to allow shareholders a vote on its strategy that explains how the
company intends to transition in line with the goals of the Paris
Agreement, the international treaty on climate change. We had many
interactions with Shell, both collaboratively through Climate Action
100+ and Eumedion, as well as individually.
We determined that the trajectory (interim targets), as well as the
instruments used to achieve the required emissions reductions, did
Target: SDG 13
Issue: Climate Transition
Shell plc (0.24% of the Company's portfolio)
not provide sufficient certainty about alignment of the strategy with
the ultimate goal of the Paris Agreement to limit global temperature
rise to well below 2°C. As a result, we did not support the resolution
to approve its climate strategy.
Our experience of engaging with Shell remains positive given the
company’s openness to dialogue and its tangible improvements. We
fully recognise Shell’s leadership in the energy sector and welcome
the commitment to an annual say-on-climate vote at the AGM. We
also acknowledge the direction of Shell’s transition towards net zero
emissions by 2050 for the complete value chain. However, there
remains significant room for improvement in the way management
is tackling decarbonisation. We will therefore continue our active
engagement with the company to drive the required changes.
2021 was a year during which the company underwent significant
change. We believe that the strategic shift towards the taste and
nutrition space is an encouraging step and welcomed the divestment
of some of its food business. Our constructive engagement continued
in several areas, including climate change and environmental
impact. While the company has set science-based targets, we set
Target: SDGs 12, 13
Issue: Waste and Biodiversity
Kerry Group (0.51% of the Company's portfolio)
out our expectations for identification and management of climate-
related physical risks. The year saw the company achieving several
milestones, including improvements in waste management and
packaging, where 92% of waste volumes were diverted from
landfill, and the commitment to make all plastic packaging reusable,
recyclable, or compostable by 2025. We encouraged the assessment
of biodiversity impacts and dependencies along the value chain and
related engagement with suppliers. We also engaged the company on
executive compensation, urging restraint and that pay outcomes fully
reflect stakeholders’ experience of the Covid-19 pandemic.

26 | F&C Investment Trust PLC
Taiwan Semiconductor Manufacturing Co , which support Target 8.2 calling
for boosting economic productivity through technological upgrading and
innovation; and in financial companies including Indian bank HDFC, which
we map to Target 8.10, focusing on access to financial services.
There was an increase in the alignment to SDG 9 - Industry, Innovation
and Infrastructure, from 9% last year to 11%. A diverse range of activities
are linked to this goal, including the production of industrial gases and
chemicals by firms such as Linde and Air Liquide. Whilst both have high
greenhouse gas emissions as a result of their production processes, both
are involved in solutions which are essential to the energy transition,
particularly the development of clean hydrogen.
Also similar to last year, our analysis identified an 11% negative
mapping, representing business activities that could be detrimental to
sustainable development. These mostly relate to climate change (SDG 7
on clean energy and SDG 13 on climate change) and health (SDG 3). On
climate change, while below benchmark weight, we have holdings in
several companies in the oil & gas and mining sectors. Many of these
are subject to engagement, with the aim of mitigating environmental
risks. In healthcare, the negative linkage comes through holdings in
firms involved in alcohol production. In previous years, there was also a
negative linkage to tobacco firms, but these positions have now been
exited following the implementation of our exclusions policy.
Supporting sustainable development
The Board views Responsible Investment issues not just as a source
of risk, but also of opportunity. Considering the alignment of our
investments to global sustainability trends can help us benefit from
growth in solution provider companies, as well as to understand the
positive social and environmental impact we can make through investing.
The framework we use to understand our impact – both positive and
negative – is that of the UN Sustainable Development Goals ('SDGs').
These 17 goals, adopted by all United Nations Member States in 2015,
provide a shared blueprint for peace and prosperity for people and the
planet, now and into the future.
The accompanying SDG Alignment chart shows how the listed companies
that we hold support the achievement of the SDGs through their products
and services. This has been analysed by looking at the revenues that
companies generate from their different product lines and assessing how
these relate to the 169 individual SDG targets that underlie the goals. We
also show negative links where some of the activities of our investee
companies potentially conflict with the SDGs.
The overall pattern is similar to what was reported in last year’s annual
report – with 55% of investee company revenues having a positive link to
the SDGs. Again, the goal most represented was SDG 8 – Decent Work and
Economic Growth. This reflects holdings in technology companies such as
“If working apart, we are a force powerful enough to
destabilise our planet, surely, working together, we are
powerful enough to save it.” – Sir David Attenborough,
speaking at the COP26 Climate Conference, 2021

Report and Accounts 2021 | 27
Strategic Report
Governance Report
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Chairman’s Statement
Overview
Auditor’s Report
Strategic Report
55
%

positive alignment
with the SDGs
Strategy alignment with the sustainable development goals ('SDGs')
Based on an analysis of the sources of revenue for each portfolio holding
REVENUE ALIGNMENT BREAKDOWN:
POSITIVE 55.2%, NEUTRAL 24.3%, NEGATIVE 10.6%, CASH 0.8%
Source: BMO Global Asset Management, as at 31 December 2021, designed for illustrative purposes, subject to change.
Other: SDGs less than 1%
OTHER (POSITIVE LINK)
NEUTRAL
UNMAPPED
OTHER (NEGATIVE LINK)
CASH
SDG Alignment Chart as at 31 December 2021

28 | F&C Investment Trust PLC
All Company data are based on assets, liabilities, earnings and expenses as reported in accordance with the Company’s accounting policies and is
unaudited but derived from the audited Accounts or specified third-party data providers.
Assets
at 31 December
£m20112012201320142015201620172018201920202021
Total assets less current liabilities (excl loans)2,2142,4012,6572,8383,0013,4613,9603,8174,5454,9195,831
Loans and debentures286322227261299248292325436407550
Available for ordinary shares1,9282,0792,4302,5772,7023,2133,6683,4924,1094,5125,281
Number of ordinary shares (million)
(1)
590577570562559547542542543537527

Net Asset Value (NAV)
at 31 December
pence20112012201320142015201620172018201920202021
NAV per share – with debt at par326.6360.2426.1458.4483.4587.9676.5643.9757.3840.71,002.5
NAV per share – with debt at market value322.9357.6424.8458.4483.4587.2675.8642.9753.9831.8998.7
NAV total return % – 5 years
(2)
83.8
NAV total return % – 10 years
(2)
271.6

Share Price
at 31 December
pence
20112012201320142015201620172018201920202021
Middle market price per share 288.5320.5378.0421.2449.2544.0647.0633.0765.07 8 7.0926.0
(Discount)/premium to NAV with debt at
market value %(10.6)(10.4)(11.0)(8.1)(7.0)(7.4)(4.3)(1.5)1.5(5.4)(7.3)
Share price High 327.9321.6383.0425.9465.0544.0649.0741.0778.08 0 7.0941.0
Share price Low 261.5282.5320.5363.0401.6391.2542.0612.0636.0478.0750.0
Share price total return % – 5 years
(2)
84.7
Share price total return % – 10 years
(2)
291.9

Revenue
for the year ended 31 December
20112012201320142015201620172018201920202021
Available for ordinary shares – £’000s 40,27040,84144,03737,85747,262
(3)
58,393
(3)
63,486
(3)
69,438
(3)
70,937
(3)
52,480
(3)
58,500
(3)
Net revenue return per share – pence6.747.027.696.698.4210.5711.6712.8113.069.7110.99
Dividends per share – pence7.108.509.009.309.609.8510.4011.0011.6012.1012.80
(1) Shares entitled to dividends.
(2) Source: Morningstar UK Limited.
(3) Management fees and finance costs allocated 25% to revenue account (previously 50%).
Ten Year Record (unaudited)

Report and Accounts 2021 | 29
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Cost of running the Company
for the year ended 31 December
%20112012201320142015201620172018201920202021
Expressed as a percentage of average net assets:
Total Expense Ratio
(4)
0.570.550.50.530.530.530.520.560.530.510.47
Ongoing Charges
(4)
0.920.900.860.870.800.790.790.650.630.590.54
Total Costs
(4)(5)
––––––1.061.011.051.191.16
Gearing
(4)

at 31 December %20112012201320142015201620172018201920202021
Net gearing 15.814.38.08.98.66.97.26.69.98.09.4
(4) See Alternative Performance Measures on pages 102 to 104 for explanation.
(5) Not calculated for years prior to 2017.

30 | F&C Investment Trust PLC
1. Microsoft (2)
US listed technology company focused on software products
and cloud computing. The company also designs and sells
hardware devices.
2.59% Total investments
£149.9m Value
6. UnitedHealth (8)
US listed company offering healthcare products and
insurance services. One of the largest healthcare companies
in the world by revenue.
1.26% Total investments
£72.9m Value
2. Alphabet (3)
US listed parent company of Google. Google’s primary
business is focused on internet related services and
products, including its internet search engine and its Android
smartphone operating system.
2.09% Total investments
£120.7m Value
7. Taiwan Semiconductor Manufacturing
(TSMC) (7)
Taiwanese listed manufacturer and designer of
semiconductors.
0.90% Total investments
£51.8m Value
3. Amazon.com (1)
US listed e-commerce and cloud computing company.
Largest listed internet retailer in the world based on market
capitalisation.
1.88% Total investments
£108.9m Value
8. Broadcom (12)
US designer and supplier of semiconductor and infrastructure
software solutions.
0.82% Total investments
£47.5m Value
The value of the twenty largest listed equity holdings represents 20.79% (2020: 21.62%) of the Company’s total investments.
The figures in brackets denote the position within the portfolio at the previous year end.
There were no convertible securities in the total portfolio at 31 December 2021 (2020: nil).
These are the largest listed equity holdings excluding collective investment schemes. If the whole portfolio was considered then PE Investment Holdings 2018 LP
(£184.3m), Inflexion Strategic Partners (£78.6m), Pantheon Access SICAV (£50.3m) and The Schiehallion Fund (£35.9m) would have been included in the list.
The Company’s full list of investments exceeds 400 and is published monthly on the website at fandcit.com. Copies are also available on request from the Company Secretary.
Twenty Largest Listed Equity Holdings
4. Apple (5)
US listed technology company predominantly involved in
design, development and sale of consumer electronics and
software worldwide.
1.84% Total investments
£106.1m Value
9. Dollar General (43)
US listed operator of discount retail stores across primarily
the southern, southwestern, midwestern and eastern
US. It offers a broad range of merchandise including both
consumables and non-consumables.
0.79% Total investments
£45.7m Value
5. Meta (4)
US listed operator of social media sites and social
networking services.
1.31% Total investments
£75.5m Value
10. International Flavors & Fragrances (203)
US listed manufacturer of flavours and fragrances for food,
beverage and household product industries.
0.78%
Total investments
£44.9m
Value

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11. Anthem (40)
US listed health benefits and insurance company providing
health, dental, vision and pharmacy services across
employer, individual and Medicaid/Medicare markets in the
US.
0.75%
Total investments
£43.4m Value
16. Goldman Sachs (23)
US listed investment bank and financial services company.
0.66%
Total investments
£38.4m Value
12. Tesla (–)
US listed designer and manufacturer of electric vehicles and
batteries.
0.72%
Total investments
£41.8m Value
17. Keyence (17)
Japanese listed manufacturer of factory automation
equipment.
0.60%
Total investments
£34.8m Value
13. Schneider Electric (16)
French listed manufacturer of electrical power products.
0.69%
Total investments
£40.0m Value
18. Merck (–)
US listed healthcare company primarily focused on
pharmaceuticals.
0.59%
Total investments
£34.1m
Value
Strategic Report
14. Mastercard (9)
US listed financial services company providing financial
transaction procession services worldwide as well as offering
credit and debit cards and internet payment systems.
0.68%
Total investments
£39.5m Value
19. Nvidia (53)
US listed designer and manufacturer of graphic processing
units.
0.59%
Total investments
£33.9m Value
15. Comcast (51)
US listed provider of media and television broadcasting
services. The company also offers video streaming,
television programming, internet and communication
services to customers worldwide.
0.67%
Total investments
£38.6m
Value
20. CVS (38)
US listed pharmacy healthcare provider offering pharmacy
services as well as operating retail and specialty drugstores
predominantly across the US.
0.58%
Total investments
£33.7m Value

32 | F&C Investment Trust PLC
The Board has carried out a robust review and assessment of the Company’s principal and emerging risks and
the uncertainties that could threaten its future success. This includes risks posed by the change of ownership
of the Manager and the ongoing Covid-19 pandemic in the near-term and longer-term risks, such as climate
change. The consequences for its strategy, business model, liquidity, future prospects, long-term viability and its
commitment to transition the Company’s portfolio to net zero carbon emissions by 2050, at the latest, form an
integral part of this review.
Principal RisksMitigation by strategyMitigating activities
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.
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.
The Manager has been retained and continues to deliver on the
Company’s objective and operates within a Responsible Investment
culture under a corporate commitment to four key Sustainability
Principles: Social Change, Financial Resilience, Community Building and
Environmental Impact. With BMO GAM, the Company has the flexibility
to innovate, adapt and evolve as Responsible Investment necessities
and expectations change. Marketing and investor relations campaigns
continued throughout the year. BMO GAM continued to enhance its
savings platform and its ability to communicate directly and more
effectively with investors, reinforcing its direct to consumer approach
rather than following the trend of other investment trust houses which
have relinquished their savings plans to generic platforms. Ameriprise,
through Columbia Threadneedle, has confirmed its full support for the
savings plans. As such, this risk is categorised as unchanged.
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, 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, 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 is fully
implemented. Therefore the Board is treating this aspect as an emerging
risk that it will monitor closely.
Unchanged throughout
the year.
Principal Risks and Future Prospects

Report and Accounts 2021 | 33
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Increased during
the year.
Increased during
the year.
Unchanged throughout
the year.
Principal RisksMitigation by strategyMitigating activities
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.
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 the Company
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.
The Company’s portfolio remains diversified while its structure enables
it to continue to take a long-term view. Detailed reports provided
by the Fund Manager are reviewed by the Board at each of its
meetings. BMO GAM’s Performance and Risk Oversight team provide
independent oversight on investment risk management for the
directly managed portfolios. As outlined in the Fund Manager’s Review
starting on page 14 and reported in the Key Performance Indicators on
page 13, long-term performance remains in line with expectations. In
2020 the Company purchased a series of forward currency contracts to
the value of £300m as a partial hedge against the US dollar. This was
reduced by £100m in late 2021 and, following the capital gain of £9.1m
in the year, it showed a net unrealised capital loss as at 31 December
2021. Prudent management of the Company’s Revenue Reserve
means that, although the dividend for 2021 is not fully covered by the
net revenue returns in the year, its dividend capacity remains strong.
Russia’s invasion of Ukraine and continuing economic and market
uncertainty indicates that this risk has increased.
Appointed Manager – Failure
of BMO GAM to continue to
operate effectively resulting
from inadequate systems or
resources, or through the loss
of key staff.
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.
The Board has considered the acquisition of BMO GAM during the year
and has met with Columbia Threadneedle’s senior management to
discuss it and as part of the annual reappointment process described
on page 49. Comfort was taken as to Columbia Threadneedle’s long-
term financial strength and resources and its policies and commitment
towards BMO GAM’s investment trust business.
The assessment of BMO GAM’s overall viability, systems and staffing
capabilities throughout 2021 included its contingency arrangements in
the face of the ongoing Covid-19 constraints. All operated satisfactorily,
as reported on page 56. Thorough review and challenge were made
through the Audit Committee, Management Engagement Committee
and the Board. Whilst the Board has reappointed the Manager, the
eventual integration with Columbia Threadneedle's systems will
inevitably introduce a degree of uncertainty. This risk is therefore
categorised as increased.
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.
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.
The Audit Committee and the Board have regularly reviewed the
Company’s risk management framework with the assistance of the
Manager. Regular control reports from the Manager covering risk,
compliance and oversight of its own third-party service providers,
including IT security and cyber-threats, have also been reviewed.
The Manager has maintained regular contact with its key outsourced
service providers throughout the Covid-19 pandemic and received
assurances regarding the continuity of their operations. Service levels
are monitored by the Manager with any deviations from the service
level agreements escalated immediately, both internally and with
the relevant third party. The Board has reviewed reports from the
Depositary, which is liable for loss of any of the Company’s securities
and cash held in custody unless resulting from an external event
beyond its reasonable control. Vigilance remains heightened with this
risk categorised as unchanged.

34 | F&C Investment Trust PLC
The Board has continued to work with the Manager in managing our
risks. A risk summary is produced by the Manager in consultation with the
Board to identify the risks to which the Company is exposed, the controls
in place and the actions being taken to mitigate them. The Board, through
the Audit Committee, has a robust process for considering the resulting
risk control assessment at regular meetings and on an ongoing basis
reviews the significance of the risks and the reasons for any changes.
The Board carried out its annual exercise in December 2021 in which
each Director, the Fund Manager, BMO GAM’s Head of Investment Trusts
and the Company Secretary independently listed what they consider to
be the greatest risks that could impact the sustainable success of the
Company, without reference to the Board’s existing risk assessment. The
purpose of the exercise was to reassess the principal risks and identify
any new, emerging risks and to take any necessary action to mitigate
their potential impact. The greatest risks listed by the participants in the
exercise were collated and then reconciled with those in the Board’s
existing risk control assessment and reviewed as part of the robust
assessment of the Company’s risks and controls. The majority of risks
had already been identified and were broadly consistent with previous
exercises, however the exercise highlighted the risk associated with the
integration of BMO GAM and Columbia Threadneedle, as explained above,
and that reputational risk is inherent in all risks. The implications of
Responsible Investment issues and climate change were uppermost once
again and had been a major topic of discussion at the Board’s strategy
meeting held in July.
This assessment is described on page 56 and there is further information
in note 26 to the Accounts. Since the exercise in December 2021, Russia
has invaded Ukraine and we recognise that the Covid-19 pandemic has
yet to run its course with many uncertainties remaining. We continue
to review and challenge the risks that we face, including whether those
more directly associated with the Covid-19 pandemic should continue to
be managed as an integral part of that framework.
We are conscious of the various reviews covering UK corporate
governance and audit reforms and that the Department for Business,
Energy & Industrial Strategy (‘BEIS’) is due to publish new regulations.
Following publication of its initial view this year, there will be further
discussion of BEIS' proposals before the regulations are finalised. The
Financial Reporting Council will be replaced by The Audit, Reporting
and Governance Authority, expected to be in April 2023, before the
new regulations come into force. The changes will take forward the
independent reviews and regulatory recommendations for the purpose of
determining which will work best together to drive positive change. We
note in particular Sir Donald Brydon’s independent report (the ‘Brydon
Report’), published in 2019, into the quality and effectiveness of audit
and a key recommendation that companies provide more information
and assurance about the resilience of a company. A clear framework is yet
to be issued for users in preparing such a statement and we will develop
our disclosures in line with the requirements when they are published.
We welcome the recommendations of the Brydon Report and its message
that companies need to go beyond the existing level of disclosures in
order to provide more information about their ability to withstand risks
arising over different periods of time. In the spirit of that report, and to
provide some reassurance given the ongoing Covid-19 pandemic, we
again provide more information below on the basis of our confirmation
on going concern and on the Company’s long-term viability.
Going concern
The Directors confirm their reasonable expectation that the Company has
adequate resources to continue in operational existence for the twelve
month period from the date of approval of the financial statements,
being the period to 31 March 2023. This confirmation is based on a
review of assumptions that took into account the outlook for global stock
markets and economies; the diversified portfolio of readily realisable
securities which can be used to meet short-term funding commitments;
and the ability of the Company to meet all of its liabilities and ongoing
expenses. The Directors also took account of the Company’s resilience in
withstanding the impact of the substantial fall in stock markets in March
2020 triggered by the Covid-19 pandemic and carried out stress tests
covering the period from 9 March 2022 to 31 March 2023 that enabled
them to assess the impact of varying degrees 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.
In addition to the stress tests, a reverse stress test was carried out to
establish the extent to which markets and revenue would need to fall
and exchange rates move such that the Company would breach its most
onerous financial loan covenants. These covenants stipulate that the net
assets of the Company must not fall below £750m and that gearing must
not exceed 35% of the adjusted portfolio value
(1)
. The results of the test
illustrated that a 66% fall in the values of the public and private equity
portfolios alongside a 60% fall in revenue and adverse exchange rate
movements of 20% would take the gearing position to over 35% of the
adjusted portfolio value
(1)
and would therefore be in breach. The test was
illustrative only and undertaken without any assumptions of intervention
that would mitigate their effect. Such an event is therefore highly
unlikely. Under any scenario of prolonged severe market falls that could
threaten the Company’s ability to continue as a going concern, the Board
would work with the Manager to take mitigating action that could include
portfolio restructuring, reduced dividend payments and cost cutting.
(1)
See Glossary of terms on page 105 for an explanation of adjusted portfolio value.

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Overview
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Resilient, responsible and prosperous for over 150 years
• We have set a target to transition our portfolio to net
zero carbon emissions by 2050, at the latest.
• We have a strong record of taking advantage of
investment opportunities that arise from market shocks
and volatility.
• We have substantial headroom under our bank
borrowing financial covenants which is rigidly
monitored.
• We have a long-term investment strategy under which
we invest mainly in readily realisable, publicly listed
securities and which restricts the level of borrowings.
• We are able to take advantage of our closed-ended
investment trust structure to deliver on our objective
over the long-term and have secured borrowings well in
excess of ten years at historically low interest rates.
• Our business model and strategy are not time limited
and, as a global investment trust, we are unlikely to be
adversely impacted materially as a direct result of geo-
political events over the longer-term.
• We can hold a proportion of our long-term less liquid
private equity investments over very many years
without pressure to realise them ahead of time.
• Our revenue and expenditure forecasts are subject to
regular and robust review throughout the year against a
backdrop of large revenue and capital reserves.
• We retain title to all assets held by the Custodian
which are subject to further safeguards imposed on the
Depositary.
The Company’s €72m loan is repayable in July 2022. In September
2021, the Company renewed, and increased from £100m to £150m, its
unsecured revolving credit facility. Based on its ability to renew and
increase that loan facility and the agreement to issue a total of £280m of
additional fixed rate senior unsecured notes during the year, the Board
does not expect to encounter any difficulty in refinancing the Company’s
€72m loan, should it wish to do so. In the unlikely event it is unable to do
so, the impact will be immaterial.
Based on their assessment of the magnitude of the events that would
cause the Company to breach of its financial loan covenants, or fail to
meet its liabilities as they fall due, and their knowledge and experience
of the Company’s portfolio and stock markets, the Directors continue
to adopt the going concern basis in preparing the accounts for the year
ended 31 December 2021. See also note 25 to the Accounts.
Future prospects and long-term viability
The Directors carried out scenario testing in order to consider the
Company’s long term viability over a period of ten years to 31 December
2031. The tests commenced with a base case scenario that covered a
range of assumptions to which sensitivity analysis was then applied in
order to assess the impact of more extreme scenarios. A key assumption
in each scenario included no change to the Company’s dividend policy.
The worst-case scenario tested by the Directors addressed the potential
impact of falls of 40% in the value of the listed investments; 35% for
the private equity investments; 35% in income; and adverse exchange
rate movements of 25% all occurring in 2022 with further significant falls
compounding the impact in the short term and less volatile listed equity
market movements thereafter. The fall in value of investments may occur
for a variety of reasons, including climate change. Under this scenario
the early payment of the private equity commitments would increase
the proportion of that portfolio as a percentage of the total value of the
investments as a whole. All loans were assumed to have been repaid
at the beginning of the year. Private equity valuations were assumed to
make a modest recovery in later years, while exchange rate movements
would fluctuate from year to year.
The results from the worst-case scenario showed that under such highly
adverse conditions the net assets would fall to no lower than £1.4 billion
and would be back to around the £1.9 billion level by 31 December 2031.
Dividend payments to shareholders could continue to be paid through the
support of Capital Reserves.
Under a scenario based on the movements in income, inflation and
valuations over the ten-year period that followed the financial crisis of
2008, net assets would rise to £10.2 billion at 31 December 2031.

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

36 | F&C Investment Trust PLC
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.

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Investment
Our publicly stated Investment Policy is designed to help shareholders,
prospective investors and stakeholders understand the scope of our
investment remit and the constraints imposed under it. Any material
changes to the stated policy can only be made with shareholder approval.
No immediate changes are necessary as a result of the decision to
transition our investments to net zero carbon emissions by 2050, at the
latest.
Our remit is global. Risk diversification is achieved through geographic
asset allocation and industry sector and stock selection across a wide
range of markets. Within the general policy of maintaining a diversified
portfolio, there are no specific geographic or industry sector exposure
limits for the publicly listed equities. A limit of 5% of the value of the total
portfolio has been placed on unlisted securities at the time of acquisition
and excluding private equity investments. Any unlisted investment
requires specific Board approval with the exception of new private equity
investments, responsibility for which has been delegated to our Manager.
Shareholder approval would be sought in the event that it is considered
that the long-term exposure to Private Equity investments could exceed
20% of the value of the total portfolio.
Under the Company's Articles of Association, with limited exceptions, no
single investment may be made which exceeds 10% of the value of the
total portfolio at the time of acquisition. Under the Listing Rules, no more
than 10% of the total assets may be invested in other listed closed-
ended investment companies, unless such investment companies have
themselves published investment policies to invest no more than 15% of
their total assets in other closed-ended investment companies, in which
case the limit is 15%. A limit of 5% of the value of the total portfolio has
been placed on investment funds managed by the Manager at the time
of acquisition and any such investment requires specific Board approval.
We will typically remain fully invested in equities, but are not prohibited
from investing in other types of securities or assets. Derivatives may be
used for the purposes of income enhancement and efficient portfolio
management, covering tactical asset allocation and risk mitigation,
including protection against currency risks within strict limits.
Due diligence with regard to the Investment Policy and underlying
policies is carried out at each Board meeting, with regular reporting
from the Fund Manager. Confirmation of adherence to the investment
restrictions and limitations set by the Board is required, and given, at
each meeting. The Fund Manager’s Review on pages 14 to 19 provides an
overview of the outcome from the application of the Investment Policy
and the underlying policies during the course of the year.
Borrowing
Using our closed-ended investment company structure, we have a long
record of successfully using gearing to enhance shareholder returns and
this was accretive to returns in 2021. Our policy is to borrow in sterling or
foreign currency over short, medium or long-term periods and normally
within a range of 0 – 20% of shareholders’ funds. Borrowing levels and
covenant headroom are monitored at each Board meeting. We explain
the impact and longer term performance potential for our returns as a
result of our borrowings under Gearing on page 19.
Dividend
Our revenue account is managed with a view to delivering a rising
income stream in real terms for shareholders. Prudent use of our
Revenue Reserve established over many decades is made whenever
necessary to help meet any revenue shortfall and to weather periods of
crisis. Worldwide economic and financial instability continues and the
developments in Ukraine are of great concern, but the Revenue Reserve
means that we have the capacity to pay an increased dividend for 2021.
Dividends can also be paid from Capital Reserves, although we have no
current need, or intention, to do so.
The Board applies due diligence and determines dividend payments by
taking account of timely income forecasts, brought forward distributable
reserves, prevailing inflation rates, the Company’s dividend payment
record and Corporation Tax rules governing investment trust status. Risks
to the dividend have been considered as part of the Principal Risks and
Future Prospects reviews noted on page 33. They include worldwide
economic, financial and political instability leading to significant
deterioration in the level of income we receive and unforeseen and
significant changes to our regulatory environment. We have sufficient
liquid resources to fund envisaged levels of dividend payment.
Information on the dividend for 2021 is reported on page 5.
Principal policies
The Board has overall responsibility for the Company’s principal policies, which support its investment and
business strategies towards the attainment of long-term sustainable growth for our shareholders.

38 | F&C Investment Trust PLC
Discount/Premium
Over many years we have consistently applied a share “buyback” policy.
Under this policy we buy back the Company’s shares in the market for
the benefit of shareholders where we see value and, importantly, in
pursuit of a sustainably low deviation between the share price and NAV
per share and to dampen discount volatility, in normal market conditions.
The policy and the levels within which it has operated are continually
reviewed, with the aim of achieving the long-held aspiration of the
shares trading at or close to NAV per share. Shares bought back may be
cancelled or held in treasury. Those held in treasury can be sold, or new
shares issued, in order to satisfy shareholder demand and, conversely, to
moderate the premium to which the share price can rise in relation to the
NAV per share. The Board reviews the discount or premium levels at each
meeting. Information on the outcome from this policy can be found on
page 5.
Responsible Investment
The Board has committed to transition the Company’s portfolio to net zero
carbon emissions by 2050, at the latest. Over the past year, our Manager
has been working on an implementation methodology. Our approach
reflects our belief in the power of investor engagement rather than
simply divesting or excluding stocks or sectors. However, the activities
of some companies are incompatible with our Responsible Investment
approach; namely tobacco, cluster bombs and landmines, and thermal
coal. We exclude companies with exposure to these activities exceeding
certain revenue thresholds.
Board diversity
Our policy towards the appointment of non-executive directors to the
Board is based on our belief in the benefits of having a diverse range of
experience, skills, length of service and backgrounds, including gender,
ethnicity and contributions from an international perspective. The policy is
always to appoint the best person for the role and, by way of this policy
statement, we confirm that there is not and will not be any discrimination
on the grounds of gender, race, ethnicity, religion, sexual orientation, age
or disabilities.
The overriding aim of the policy is to ensure that the Board is composed
of the best combination of people for ensuring the delivery of investment
performance for shareholders over the longer term in the form of
sustainable growth in both capital and income. We apply the policy for
the purpose of appointing individuals that, together as a board, will
continue to achieve that aim as well as ensuring optimal promotion of
our investment proposition in the marketplace. In terms of progress in
achieving diversity, the gender balance of five men and three women
Directors meets the target of 33% of women on FTSE 350 company boards
set under The Hampton-Alexander Review.
(1)
We also aim to meet the
proposal of the Parker Review Committee
(1)
, that each FTSE 250 board has
as least one director from an ethnic minority background by 2024.
Taxation
As an investment trust company, it is essential that we retain our tax
status by complying at all times with Section 1158 of the Corporation Tax
Act 2010 (‘Section 1158’) such that UK Corporation Tax is not suffered
on our capital gains. Taxation returns are submitted annually and any
taxation due is settled promptly. Where possible, all taxes suffered in
excess of taxation treaty rates on non-UK dividend receipts are claimed
back in a timely manner. The Board’s policy towards taxation is one of
full commitment to complying with applicable legislation and statutory
guidelines. In applying due diligence towards the retention of Section
1158 status and adhering to our tax policies, the Board receives regular
reports from the Manager. We have received approval from HMRC as an
investment trust under Section 1158 and have since continued to comply
with the eligibility conditions.
Modern Slavery Act 2015
The values that we hold, our culture and the rationale for the appointment
of the Manager are explained on page 9. The management company
is an organisation committed to respecting human rights and stands
against all forms of slavery and human trafficking. It is recognised as a
leading pioneer in responsible investment and works with policymakers
worldwide to deliver market-wide improvements in standards and
regulations. In 2021 approximately 41% of its engagement across the
companies in which the Manager invests for its clients was on social
themes, with extensive work on labour practices. The Manager is an
investor signatory to the Workforce Disclosure Initiative (‘WDI’) which
aims at enhancing relevant and material workforce-related disclosure on a
wide range of workforce issues, covering companies’ direct operations and
supply chains. As part of its commitment to the WDI in 2021, the Manager
held 105 engagements with 91 companies seeking improved transparency
of workforce management. We are very supportive of the Manager's
approach and whose formal statement can be found on its website at
bmogam.com.
Our own supply chain consists predominately of professional advisers
and service providers in the financial services industry, which is highly
regulated. We believe therefore that the potential for acts of modern
slavery or human trafficking in our own environment is extremely low.
Integrity and business ethics
We apply a strict anti-bribery and anti-corruption policy insofar as it
applies to the Directors and any directors or employees of the Manager
or of any other organisation with which we conduct business. The Board
ensures that adequate procedures are in place and followed in respect of
third-party appointments, acceptance of gifts and hospitality and similar
matters.
On behalf of the Board
Beatrice Hollond
Chairman
9 March 2022
(1)
See Glossary on pages 107 and 108

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Directors
Beatrice Hollond
(2)

Chairman
Appointed to the Board on 1 September 2017 and as
Chairman of the Board and the Management Engagement
Committee on 1 January 2020. She was appointed Chairman
of the Nomination Committee on 1 September 2019.
Experience and contribution:
Beatrice brings to the Board investment knowledge and
expertise in regard to both equities and global fixed
income. She also brings leadership skills from her time as a
Managing Director of Credit Suisse Asset Management, LLC
where she spent 16 years in global fixed income.
Other appointments:
Beatrice is a member of the Board of Brown Advisory in the
United States and chairs its international advisory board.
She also holds non-executive directorships at Telecom Plus
PLC and Templeton Emerging Markets Investment Trust PLC.
Francesca Ecsery
(2)

Appointed to the Board on 1 August 2013.
Experience and contribution:
Francesca brings special expertise in omnichannel
consumer marketing, branding and commercial strategies
and provides guidance for the effective promotion of
the Company's investment proposition and access to
its shares. Francesca previously held the role of Global
Business Development Director at Cheapflights Media and
held senior executive roles with STA travel, the Thomas
Cook Group and Thorn EMI plc.
Other appointments:
Francesca is currently a non-executive director of the
Association of Investment Companies (the ‘AIC’), Marshall
Motors Holding plc, Air France and CT Automotive Group plc.
Jeffrey Hewitt
(1)

Chairman of the Audit Committee
Appointed on 15 September 2010 and as Chairman of the
Audit Committee in November 2011.
Experience and contribution:
A chartered accountant and MBA, Jeff has a strong financial
background. He held a number of senior roles and is an
advocate of continuous improvement in the quality of
corporate reporting. Until 2020 he was Acting Chairman of
Cenkos Securities plc. He was the Group Finance Director
of Electrocomponents plc (1996 to 2005), Deputy Chairman
(2000 to 2005) and Chair of the Pension Scheme (1996 to
2020). Prior to that, he was the Finance Director of Unitech
plc (1991 to 1996). He has also chaired the Audit Committees
of several listed and private companies including Vesuvius
plc (previously Cookson Group plc) and John Lewis
Partnership plc.
Other appointments:
None.
Edward Knapp
(1)

Appointed to the Board on 25 July 2016.
Experience and contribution:
Edward brings a combination of investment, operational and
general management experience worldwide, with expertise
in the digital transformation of large-scale organisations,
portfolio management, risk, strategy and technology. Edward
was previously a Managing Director and Global Head of
Business Management within the Technology function at
HSBC, and prior to that he was a Chief Operating Officer at
Barclays Bank. Until 2012 he was at McKinsey & Company,
providing board and advisory services to clients worldwide,
focusing on financial services, strategy, risk management
and technology.
Other appointments:
Edward is a Member of the Board of Trustees of Asia House,
a centre of expertise on trade, investment and public policy.
He is also Chairman of the Board Risk and Compliance
Committee of Mattioli Woods PLC, where he serves as a
non-Executive Director. His wide ranging advisory experience
includes being a former senior advisor to Revolut Limited.
(1) Member of the Audit Committee
(2) Member of the Nomination Committee
All the Directors are members of the Management Engagement Committee. No Director has a shared directorship elsewhere with other Directors.

40 | F&C Investment Trust PLC
Stephen Russell
(1)

Appointed to the Board on 1 February 2022.
Experience and contribution:
Stephen brings the highest level of investment skills and
knowledge to the Board. He is Investment Director and
a member of the multi asset investment committee at
Ruffer LLP, where he helps direct its investment strategy.
He joined Ruffer in 2003 and has managed its flagship
pooled funds and developed its institutional pension
fund offering into one of the largest multi asset/absolute
return fund managers in the UK. Stephen previously
managed segregated pension funds at Sun Life of Canada
and advised pension fund managers as a strategist at
HSBC.
Other appointments:
None.
(1) Member of the Audit Committee
(2) Member of the Nomination Committee
All the Directors are members of the Management Engagement Committee. No Director has a shared directorship elsewhere with other Directors.
Tom Joy
(2)

Appointed to the Board on 1 January 2021.
Experience and contribution:
Tom has extensive investment knowledge, expertise
and experience in global equity markets. He is Chief
Investment Officer of the Church Commissioners
for England which is responsible for managing the
endowment portfolio of the Church of England. He began
his career at Royal Sun Alliance Investment Management
and later joined Schroders holding a variety of different
roles ultimately becoming Head of Investment – Multi-
Manager. He then joined RMB Asset Management where
he was Chief Investment Officer until his appointment at
the Church Commissioners for England in October 2009.
Other appointments:
Tom is a non-executive director of Guy’s and St Thomas’
Charity and chairs its Investment Committee.
Quintin Price
(1)

Senior Independent Director
Appointed to the Board on 10 March 2020.
Experience and contribution:
Quintin brings investment banking and investment
management knowledge and expertise to the Board from
a 30 year career working at a senior level for a number
of leading companies. From 2005 to 2015 he was at
BlackRock where he was Global Head of Alpha Strategies
and a member of the Global Executive Committee.
Other appointments:
Quintin is a Senior Advisor at Capital Generation
Partners, a member of the Investment Committee of the
Leverhulme Trust and a non-executive director of Aperture
Investors and Liontrust plc.
Rain Newton-Smith
Appointed to the Board on 11 May 2021.
Experience and contribution:
Rain has considerable economic and political insight as
well as expertise in sustainability, governance on reducing
carbon emissions and in developing environmental,
social and governance (‘ESG’) reporting. She is Chief
Economist at the Confederation of British Industry, where
she provides business leaders with advice on the UK
economic outlook and global risks. Rain was previously
Head of Emerging Markets at Oxford Economics, where
she was the lead expert on China. Prior to that, Rain was
a research advisor to the Bank of England’s Monetary
Policy Committee.
Other appointments:
Rain is a Director of Eynsham Partnership Academy, where
she is trustee for six primary schools and two secondary
schools and is chair of the finance committee.

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Composition of the committees
Committee membership is noted in each Director’s biography on the
previous two pages, while the respective terms of reference can be
found on the Company’s website at fandcit.com. Further detail is given in
respect of the composition of the Audit Committee on page 56.
Compliance with the UK Code
We have considered and support the principles and provisions of the
UK Corporate Governance Code published in 2018 (the ‘UK Code’) and
believe that we have applied the principles and complied with its
provisions during the year under review and up to the date of this report
in so far as they apply to the Company’s business. As the Company is
an externally managed investment trust company with no executive
directors or employees, it has not reported in respect of the provisions
relating to:
• the role of the Chief Executive;
• remuneration committee;
• executive directors’ remuneration; and
• workforce engagement.
The need for an internal audit function is addressed on page 57.
None of the Directors standing for re-election at the forthcoming AGM has
served in excess of nine years. However, in August this year, Francesca
Ecsery will have served nine years as a Director. We explain our tenure
policy on page 51 and why we consider Francesca to be independent on
page 46.
We also adhere to the principles and recommendations of the AIC Code
of Corporate Governance (the ‘AIC Code’). Copies of the UK Code and AIC
Code can be found on their respective websites: www.frc.org.uk and
www.theaic.co.uk.
Beatrice Hollond
Chairman
9 March 2022
Dear Shareholder,
On the previous two pages you will find brief details of the Directors
responsible for the governance of your Company, including mine as
Chairman. Details are also available at fandcit.com. The Company invests
in a wide range of companies and, as a Board, we believe that good
governance creates value and expect the companies in which we invest
to apply high standards. In maintaining the confidence and trust of our
own investors, we set out to adhere to the very highest standards of
corporate governance, business and ethics transparency. We remain
committed to doing so.
Governance overview
The Board has established an Audit Committee, Management
Engagement Committee and Nomination Committee. The roles and
responsibilities of those committees are set out in their respective
reports, which follow. As the Board has no executive directors and no
employees and is composed solely of non-executives, it does not have
a Remuneration Committee. Detailed information on the remuneration
arrangements for the Company’s Directors can be found in the
Remuneration Report on pages 52 to 54 and in note 5 to the Accounts.
The Company has appointed the Manager to manage the investment
portfolios as well as to carry out the day to day management and
administrative functions. An explanation of the reporting arrangements
from the Manager is set out in the Strategic Report on page 10 and in the
Report of the Audit Committee in respect of internal controls on page 57.
Explanations regarding the Board’s appointment of the Manager, including
reference to the strength and depth of its resources, measurement of
performance and alignment with the values of the Board can be found on
page 8.
The Board has direct access to the company secretarial advice and
services of the Manager which, through the Company Secretary, is
responsible for ensuring that Board and committee procedures are
followed and applicable laws and regulations are complied with. The
proceedings at all Board and committee meetings are fully recorded
through a process that allows any Director’s concerns to be recorded
by the Company Secretary in the minutes. The Board has the power to
appoint or remove the Company Secretary in accordance with the terms
of the investment management agreement.
Chairman’s statement
on corporate governance

42 | F&C Investment Trust PLC
Company purpose
Information relating to the Company’s purpose, values and culture can
be found on pages 8 and 9.
Board leadership
The Board, led by the chairman, is responsible for the effective
stewardship of the Company’s affairs and has in place a schedule
of matters that it has reserved for its decision, which are reviewed
annually. These are categorised and reviewed under strategy, policy,
finance, risk, investment restrictions, performance, marketing,
appointments, the Board and public documents. It has responsibility
for all corporate strategic issues, principal policies (set out on pages
20, 37 and 38) and corporate governance matters which are all
reviewed regularly.
At each meeting the Board reviews the Company’s investment
performance and considers financial analyses and other reports
of an operational nature. The Board monitors compliance with the
Company’s objectives and is responsible for setting investment and
gearing limits within which the Fund Manager has discretion to act
and thus supervises the management of the investment portfolio
which is contractually delegated to the Manager. The Board has the
right of veto over the appointment of sub-managers recommended
by the Fund Manager. It has responsibility for the approval of all
investments in in-house funds managed or advised by the Manager
and any unlisted investments with the exception of new private
equity investments, responsibility for which has been delegated to the
Manager.
Division of Board responsibilities
As an externally managed investment company, there are no
executive directors; all the Directors are non-executive. The Chairman
is responsible for the leadership and management of the Board
and promotes a culture of openness, challenge and debate. The
Chairman sets the agenda for all Board meetings under a regular
programme of items in conjunction with the Company Secretary.
Building on the strong working relationship with the Manager, the
Fund Manager and other management company personnel attend
the meetings throughout the year and report to the Board. These
meetings were held by video conference during the periods when
various Government restrictions were in place, from March 2020 until
July 2021. Discussions at all levels were held in a constructive and
supportive manner with appropriate challenge and strategic guidance
and advice from the Board whenever necessary consistent with the
culture and values.
Quintin Price succeeded Sir Roger Bone as Senior Independent Director
in May 2021. He acts as an experienced sounding board for the
Chairman and an intermediary for other Directors and shareholders
and he recently led the annual evaluation of the Chairman.
In order to enable them to discharge their responsibilities, all Directors
have full and timely access to relevant information. Directors are able
to seek independent professional advice at the Company’s expense in
relation to their duties. No such advice was taken during 2021.
Composition and succession
The Report of the Nomination Committee sets out on page 51 the
process undertaken in respect of the appointments of Rain Newton-
Smith and Stephen Russell. Rain replaced Sir Roger Bone following his
retirement at the conclusion of the 2021 AGM while, more recently,
Stephen replaced Sarah Arkle who retired on 31 January 2022. As
reported on page 40, Rain brings considerable economic and political
insight while Stephen’s appointment ensures we maintain the highest
level of investment skills and knowledge on the Board. The succession
plan is now focused on replacing Jeffrey Hewitt, who will retire from
the Board at the conclusion of the 2022 AGM. We will also look to
appoint a successor to Francesca Ecsery in 2023. The composition of
the Board and Committee members is set out in the Directors’ details
on pages 39 and 40. The Company’s diversity policy is set out on
page 38.
Board evaluation and effectiveness
The 2021 annual evaluation of the Board, its committees and the
individual Directors has been carried out by the Chairman. The process
included the completion of a tailored questionnaire by each Director
followed up by confidential unattributable one-to-one interviews with
the Chairman. Progress in achieving the 2021 objectives was reviewed
as part of the process as was feedback on upholding the culture and
values of the Board. As noted above, the appraisal of the Chairman
was covered as part of the process and led separately by the Senior
Independent Director. The Chairman’s report on progress in 2021 was
Applying the principles of the UK code

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considered by the Board in March 2022 and the objectives proposed
for the current year were considered. The appraisal concluded that the
Board oversees the management of the Company effectively and has
the requisite skills and expertise to safeguard shareholders’ interests.
Its Directors offer a wealth of diverse, yet complementary skills and
experience gained in the UK and overseas and challenge the Manager
constructively. All Directors make an effective contribution to the
Board commensurate with their experience and skills. The appraisal
did not highlight any material weaknesses or concerns, but identified
areas of focus in the future, which have been incorporated into the
objectives for the year ahead. As well as the primary, over-arching
objective of delivering long-term growth in capital and income, these
include refreshment of the Company's brand to ensure it remains
relevant for new and existing investors, maximising the impact of our
marketing activities and continuing to develop our plans to ensure
the Company achieves its commitment to transition the investment
portfolio to net zero carbon emissions by 2050, at the latest.
The activities of the Management Engagement, Nomination and Audit
Committees were considered as part of the Board appraisal process.
The conclusion from the process was that the committees continue
to operate effectively, with an appropriate balance of membership,
experience and skills.
Audit, risk management and internal control
The Board has a well established and effective Audit Committee,
whose report is set out on pages 55 to 59. The report includes an
explanation of the assessment of the Company’s going concern status
and how the Board oversees the risk management and internal
control framework and the procedures under which risk is managed.
It also covers long-term viability and the nature and extent of the
principal risks the Company is willing to take in order to achieve
its long-term strategic objectives as well as identifying emerging
risks. The rationale for the Company not having established its own
internal audit function is explained, while further information on the
Company’s risk management and internal control framework can
be found on page 57. The Committee has noted the recent reviews
covering UK corporate governance and audit reforms and the BEIS
consultation and it continues to monitor the results of the consultation
process as they emerge.
The report of the Audit Committee provides an overview of how the
Board satisfies itself on the integrity of financial statements and
how the independence and effectiveness of the external auditor is
assessed. An explanation is also given on the process under which the
Board satisfied itself that the Report and Accounts, taken as a whole,
presents a fair, balanced and understandable assessment of the
Company’s position and prospects.
Relations with shareholders and stakeholders
The Company’s key stakeholders are the shareholders as explained
on pages 10 and 11, together with information on its role in the
community.
Remuneration
The remuneration policy is explained on page 52. As non-executive
Directors, fees are set at a level commensurate with the skills and
experience necessary for the effective stewardship of the Company
and the contribution towards the delivery of the investment
objective. While there are no executive directors and no employees,
shareholders should expect that the fees paid to the Manager are
aligned with the Company’s purpose, values and the successful
delivery of its long-term strategy. This is achieved, as described on
page 49, by charging the management fee on the Company’s market
capitalisation on a tiered basis. This helps to bring down the cost
ratios as the Company grows, with the benefits of scale being passed
on to shareholders.

By order of the Board
BMO Investment Business Limited
Company Secretary
9 March 2022

44 | F&C Investment Trust PLC
Taxation
As set out on page 38 and in note 7 to the Accounts, the Company is
exempt from UK Corporation Tax on its worldwide dividend income and
from UK Corporation Tax on any capital gains arising from the portfolio
of investments, provided it complies at all times with Section 1158 of the
Corporation Tax Act 2010. Dividends received from investee companies
domiciled outside the UK are subject to taxation in those countries in
accordance with relevant double taxation treaties.
Prevention of the facilitation of tax evasion
The Board is committed to compliance with the Criminal Finances Act
2017, designed to prevent tax evasion in the jurisdictions in which the
Company operates. The policy is based on a risk assessment undertaken
by the Board and professional advice is sought as and when deemed
necessary.
Accounting and going concern
The Financial Statements, starting on page 68, comply with current
UK Financial Reporting Standards (FRS) 102, supplemented by the
Statement of Recommended Practice ‘Financial Statements of Investment
Trust Companies and Venture Capital Trusts’ (‘SORP’) published by the
Association of Investment Companies (‘AIC’). The significant accounting
policies of the Company are set out in note 2 to the Accounts. The
unqualified auditors’ opinion on the Financial Statements appears on
page 61. Shareholders will be asked to approve the adoption of the
Report and Accounts at the forthcoming AGM (Resolution 1).
As discussed on page 34 and in note 25 to the Accounts, the Directors
believe that, in light of the controls and monitoring processes that are in
place, the Company has adequate resources to continue in operational
existence for at least twelve months from the date of approval of these
financial statements. In considering this, the Directors took into account
the outlook for global stock markets and economies; the diversified
Statement regarding Report and Accounts
The Directors consider that, following advice from the Audit Committee, the
Report and Accounts of the Company for the year ended 31 December 2021,
taken as a whole, is fair, balanced and understandable and provides the
information necessary for shareholders to assess the Company’s position
and performance, business model and strategy. The Audit Committee
reviewed the draft Report and Accounts for the purpose of this assessment
having also put in place, as explained on page 58, an independent process
to provide additional comfort to the Directors in making this statement. The
Outlook for the Company can be found on page 7. The Board’s assessment
of the Company’s Principal and Emerging Risks can be found on page 32
with further information in note 26 to the Accounts. The Directors have
evaluated the period since the financial year end and have not identified
any subsequent events to be disclosed. There are no instances where the
Company is required to make disclosures in respect of Listing Rule 9.8.4R.
Results and dividends
The results for the year are set out in the attached Accounts. The three
interim dividends totalling 9.0 pence per share, together with the final
dividend of 3.8 pence per share, which will be paid on 10 May 2022 to
shareholders registered on 8 April 2022 subject to approval at the AGM
(Resolution 3), will bring the total dividend for the year to 12.8 pence per
share. This represents an increase of 5.8% over the comparable 12.1 pence
per share paid in respect of the previous year.
Company status
The Company is a public limited company and an investment company as
defined by section 833 of the Act. The Company is registered in England
and Wales with company registration number 12901 and is subject to the
FCA Listing Rules, Disclosure Guidance and Transparency Rules (‘DTRs’)
and other applicable legislation and regulations including company
law, financial reporting standards, taxation law and its own Articles of
Association.
The Directors submit the Report and Accounts of the Company for the year ended 31 December 2021.
The Chairman’s Statement on Corporate Governance, Directors’ biographies, Applying the Principles of
the UK Code, the Reports of the Management Engagement, Nomination and Audit Committees, and the
Remuneration Report all form part of this Directors’ Report.
Directors’ Report

Report and Accounts 2021 | 45
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Governance Report
portfolio of readily realisable securities which can be used to meet short-
term funding commitments; and the ability of the Company to meet all
of its liabilities and ongoing expenses. The Directors carried out a number
of stress tests, including a reverse stress test. Accordingly, the Directors
believe that it is reasonable for the financial statements to continue to be
prepared on a going concern basis. The Company’s long-term viability is
considered on pages 35 and 36.
Statement as to disclosure of information to the auditors
Each Director confirms that, to the best of his or her knowledge and
belief, there is no information relevant to the preparation of the Report
and Accounts of which Ernst & Young LLP (‘EY’ or the ‘auditors’) is
unaware and that he or she has taken all the steps a Director might
reasonably be expected to have taken to be aware of relevant audit
information and to establish that EY is aware of that information.
Reappointment of auditors
EY have indicated their willingness to continue in office as auditors to the
Company and a resolution proposing their reappointment and authorising
the Audit Committee to determine their remuneration for the ensuing
year will be put to shareholders at the AGM (Resolutions 11 and 12).
Further information in relation to their reappointment can be found on
page 58.
Capital structure
As at 31 December 2021 there were 561,819,016 ordinary shares of 25
pence each (‘ordinary shares’) in issue, of which 35,035,876 were held
in treasury. Therefore, the total number of voting rights in the Company
at that date was 526,783,140. As at 4 March 2022 (being the latest
practicable date before publication of this report) the number of shares
in issue remained as 561,819,016 and the number held in treasury was
35,881,719.
All ordinary shares rank equally for dividends and distributions and
carry one vote each. There are no restrictions concerning the transfer
of securities in the Company, no special rights with regard to control
attached to securities, no agreements between holders of securities
regarding their transfer known to the Company and no agreement which
the Company is party to that affects its control following a takeover bid.
Details of the capital structure can be found in note 17 to the Accounts.
The revenue profits of the Company (including accumulated Revenue
Reserves), together with the realised capital profits of the Company,
are available for distribution by way of dividends to the holders of the
ordinary shares. Upon a winding-up, after meeting the liabilities of the
Company, the surplus assets would be distributed to shareholders pro
rata to their holdings of ordinary shares. Full details are set out in the
Company’s Articles of Association.
The Company may adopt new Articles of Association by special resolution
passed by shareholders at a general meeting.
Buyback and issue of shares
At the annual general meeting held on 10 May 2021, shareholders
renewed the Board’s authority to purchase up to 14.99% of its own issued
ordinary shares, (excluding any shares held in treasury) at a discount to
NAV per share. The shares bought back can either be cancelled or held
in treasury, to be sold as and when the share price is at a premium.
Shareholders also authorised the Board to issue new ordinary shares or
sell shares from treasury up to 5% of the number then in issue.
A total of 9,863,496 ordinary shares were bought back during the year,
all of which were placed in treasury. The shares bought back represented
1.8% of the shares in issue (calculated exclusive of any shares held in
treasury) at 31 December 2020. The purchases were made at prices
ranging between 751.5 pence and 940.7 pence and the aggregate
consideration paid for the shares, including stamp duty and commissions,
was £84.3m. A further 845,843 ordinary shares have been bought back
into treasury between 31 December 2021 and 4 March 2022.
Voting rights and proportional voting
At 4 March 2022 the Company’s 561,819,016 ordinary shares in issue less
the 35,881,719 shares held in treasury represented a total of 525,937,297
voting rights. As at 31 December 2021 and since that date no notifications
of significant voting rights have been received under the DTRs.
Approximately 45% of the Company’s share capital is held on behalf of
non-discretionary clients through the Manager's Savings Plans. For those
planholders who do not return their voting directions for the forthcoming
AGM, the nominee company will vote their shares in proportion to those
who do (‘proportional voting’). Implementation of this arrangement is
subject to a minimum threshold of 5% of the shares held in these plans
being voted. A maximum limit of 586,000 shares that any one individual
investor can vote, being approximately 5% of the minimum threshold,
also applies. Any shares voted by an investor in excess of the maximum
limit remain valid, but do not form part of the proportional voting basis.
Planholders have the right to exclude their shares from the proportional
voting arrangement.
Borrowings
The Company has a revolving credit facility and has issued various
fixed rate senior unsecured private placement notes (the ‘Notes’). The
Company also has a perpetual debenture stock. Further information is
given on page 19 and in notes 13, 15 and 16 to the Accounts.
Remuneration report
At the annual general meeting held on 7 May 2020, shareholders
approved the Directors’ remuneration policy. It is intended that this
policy will continue for the three-year period ending at the AGM in 2023,
when shareholders will next be asked for their approval. The Directors’
Remuneration Report, which includes the policy and can be found on
pages 52 to 54, provides detailed information on the remuneration

46 | F&C Investment Trust PLC
arrangements for Directors of the Company. Shareholders will be asked to
approve the report at the AGM (Resolution 2).
Appointments to the Board
Under the Articles of Association of the Company, the number of Directors
on the Board may be no less than three and no more than fifteen.
Directors may be appointed by the Company by ordinary resolution or
by the Board. All new appointments require prior Board approval and
are subject to re-election by shareholders at the next annual general
meeting. An induction process is in place for new appointees and
all Directors are encouraged to attend relevant training courses and
seminars. In view of the various restrictions that have been in place as a
result of the Covid-19 pandemic, induction programmes that have taken
place since March 2020 have been held virtually by video conference.
Removal of Directors
The Company may by special resolution remove any Director and may
by ordinary resolution appoint another person who is willing to act to
be a Director in their place. The provisions under which a Director would
automatically cease to be a Director are set out in the Company’s Articles
of Association.
Contribution and independence of Directors
The Board is composed solely of independent non-executive Directors.
The Nomination Committee has considered each Director's performance
and the Board has concurred with its assessment that each Director
continues to make a valuable and effective contribution and remains
committed in their role. Furthermore, no Director has a past or current
connection with the Manager and each remains independent in character
and judgement with no relationships or circumstances relating to
the Company that are likely to affect their judgement. The Board has
therefore concurred with the Nomination Committee’s assessment that all
the Directors are independent of the Manager and of the Company itself.
For these reasons and those set out on page 51, the tenure of Francesca
Ecsery, who will have served on the Board for nine years in August 2022,
is not considered to compromise her independence. This is also the case
for Jeffrey Hewitt, who has served for more than 11 years and will retire at
the conclusion of the 2022 AGM.
The following table sets out the Directors’ meeting attendance record in
2021. The Board held a separate meeting in July 2021 to consider strategic
issues and also met regularly in private during the year, without any
representation from the Manager.
Directors’ attendance in 2021
Board
Audit
Committee
Nomination
Committee
Management
Engagement
Committee
No. of meetings
8331
Beatrice Hollond
1
8331
Sarah Arkle83n/a1
Sir Roger Bone
2
3111
Francesca Ecsery8
n/a
31
Jeffrey Hewitt83n/a1
Tom Joy
3
8n/a21
Edward Knapp83n/a1
Quintin Price83n/a1
Rain Newton-Smith
4
5n/an/an/a
(1) Attended but was not a member of the Audit Committee.
(2) Retired from the Board on 10 May 2021.
(3) Appointed to the Board on 1 January 2021 and to the Nomination Committee on
9 February 2021.
(4) Appointed to the Board on 11 May 2021.
Director re-elections
The biographies of the Directors are set out on pages 39 and 40 and are
incorporated into this report by reference. The skills and experience each
Director brings to the Board for the long-term sustainable success of the
Company are also set out there. Sir Roger Bone retired from the Board on
10 May 2021. Sarah Arkle retired on 31 January 2022. With the exception
of Rain Newton-Smith and Stephen Russell, who were appointed on
11 May 2021 and 1 February 2022 respectively, all of the other Directors
held office throughout the year under review. All Directors will stand
for re-election by shareholders at the forthcoming AGM in accordance
with the Company’s Articles of Association, with the exception of Jeffrey
Hewitt, who will retire from the Board at the conclusion of the meeting
(Resolutions 4 to 10).
Directors’ interests and indemnification
There were no contracts of significance to which the Company was a
party and in which a Director is, or was, materially interested during the
year. There are no agreements between the Company and its Directors
concerning compensation for loss of office.
The Company has granted a deed of indemnity to the Directors in respect
of liabilities that may attach to them in their capacity as Directors of the
Company. This covers any liabilities that may arise to a third party for
negligence, default or breach of trust or duty. This deed of indemnity is a
qualifying third-party provision (as defined by section 234 of the Act) and
has been in force throughout the year under review and remains in place
as at the date of this report. It is available for inspection at the Company’s
registered office during normal business hours and at the AGM. The
Company also maintains directors’ and officers’ liability insurance.

Report and Accounts 2021 | 47
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Conflicts of interest
A company director has a statutory obligation to avoid a situation in
which he or she has, or potentially could have, a direct or indirect interest
that conflicts with the interests of the company of which they are a
director (a ‘situational conflict’). The Board therefore has procedures in
place for the authorisation and review of potential conflicts relating to the
Directors. Limits can be imposed as appropriate.
Other than the formal authorisation of the Directors’ other directorships,
no authorisations have been sought. Those authorisations were reviewed
in February 2022 and each Director abstained from voting in respect of
their own directorships. Aside from situational conflicts, the Directors
must also comply with the statutory rules requiring company directors to
declare any interest in an actual or proposed transaction or arrangement
with the Company.
Safe custody of assets
The Company’s listed investments are held in safe custody by JPMorgan
Chase Bank (the ‘Custodian’). Operational matters with the Custodian are
carried out on the Company’s behalf by BMO GAM in accordance with the
provisions of the investment management agreement. The Custodian is
paid a variable fee dependent on the number of trades transacted and
location of the securities held.
Depositary
JPMorgan Europe Limited (the ‘Depositary’) acts as the Company’s
Depositary in accordance with the Alternative Investment Fund Managers
Directive (‘AIFMD’). The Depositary’s responsibilities, which are set out
in an Investor Disclosure Document on the Company’s website, include:
cash monitoring; ensuring the proper segregation and safe keeping of
the Company’s financial instruments that are held by the Custodian; and
monitoring the Company’s compliance with investment and leverage
limits requirements. The Depositary receives for its services a fee of one
basis point per annum on the first £1 billion of the Company’s net assets
and 0.25 basis points per annum on net assets in excess of that amount,
payable monthly in arrears.
Although the Depositary has delegated the safekeeping of all assets
held within the Company’s investment portfolio to the Custodian, in the
event of loss of those assets that constitute financial instruments under
the AIFMD, the Depositary will be obliged to return to the Company
financial instruments of an identical type, or the corresponding amount
of money, unless it can demonstrate that the loss has arisen as a result
of an external event beyond its reasonable control, the consequences of
which would have been unavoidable despite all reasonable efforts to the
contrary.
Management fees
Information on the management fees payable by the Company is set out
in the Report of the Management Engagement Committee on page 49.
AGM
The Company's AGM will be held at The Merchant Taylors’ Hall, 30
Threadneedle Street, London EC2R 8JB on Tuesday 3 May 2022 at 12.00
noon. The Notice of Meeting is set out on pages 94 to 95 and includes a
map of the venue location. The Fund Manager will give a presentation at
the meeting and there will be an opportunity to ask questions. 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 the following
email address: fcitagm@bmogam.com. The Fund Manager’s presentation
will be available to view on the Company’s website, www.fandcit.com,
following the meeting.

The AGM is currently proposed to be held in person. For the first time,
this year shareholders will also have the opportunity to view the AGM
online and to participate by asking questions and voting. Details of how
to do so are given in the letter that accompanies your Form of Proxy or
Form of Direction. Voting on all resolutions will be conducted by way of a
poll. You are therefore requested to lodge your votes either through the
online portal or by completing and returning your Form of Proxy or Form
of Direction in accordance with the guidance set out on page 48. The
results of each poll will be announced via a regulatory announcement and
posted on the Company’s website at fandcit.com after the meeting. Any
changes to the AGM arrangements will be announced via a regulatory
announcement and will be included on the Company’s website.
Authority to allot shares and sell shares from treasury
(Resolutions 13 and 14)

By law, directors are not permitted to allot new shares (or to grant rights
over shares) unless authorised to do so by shareholders. In addition,
directors require specific authority from shareholders before allotting new
shares (or granting rights over shares) for cash or selling shares out of
treasury, without first offering them to existing shareholders in proportion
to their holdings.
Resolution 13 gives the Directors the necessary authority to allot
securities up to an aggregate nominal amount of £6.6m, (26.3m ordinary
shares), being equivalent to approximately 5% of the Company’s issued
share capital (calculated exclusive of any shares held by the Company in
treasury) as at 4 March 2022, being the latest practicable date before the
publication of the notice of the AGM. The authority and power will expire at
the conclusion of the annual general meeting in 2023 or on 30 June 2023,
whichever is the earlier.
Resolution 14 empowers the Directors to allot such securities for cash, other
than to existing shareholders on a pro rata basis and also to sell treasury
shares without first offering them to existing shareholders in proportion to
their holdings, up to an aggregate nominal amount of £6.6m (representing
approximately 5% of the issued ordinary share capital of the Company at
4 March 2022, calculated exclusive of the shares held in treasury).
Governance Report

48 | F&C Investment Trust PLC
These authorities provide the Directors with a degree of flexibility to
increase the assets of the Company by issuing new shares or selling
shares from treasury, in accordance with the policies set out on page
38 or should any other favourable opportunities arise to the advantage
of shareholders. The Directors expect that they will use the authorities
mainly to satisfy demand from participants in the Manager's Savings
Plans when they believe it is advantageous to such participants and the
Company’s shareholders to do so. Under no circumstances would the
Directors issue shares or sell treasury shares at a price which would result
in a dilution of the NAV per ordinary share.
Authority for the Company to purchase its own shares
(Resolution 15)
At the annual general meeting held in 2021 the Company was authorised
to purchase approximately 14.99% of its own shares for cancellation
or to be held in treasury. The number of shares remaining under that
authority as at 31 December 2021 was 73,391,208 shares or 13.9% of the
issued share capital, exclusive of the number of shares held in treasury.
Resolution 15 will authorise the renewal of such authority enabling the
Company to purchase in the market up to a maximum of 78,838,000
ordinary shares (equivalent to approximately 14.99% of the issued share
capital, exclusive of treasury shares) and sets out the minimum and
maximum prices at which they may be bought exclusive of expenses,
reflecting requirements of the Act and the Listing Rules.
The Directors will continue to use this authority in accordance with the
policy set out on page 38. Under the Act, the Company is allowed to
hold its own shares in treasury following a buyback, instead of having
to cancel them. This gives the Company the ability to reissue shares
from treasury quickly and cost-effectively (including pursuant to the
authority under Resolution 14, see above) and provides the Company with
additional flexibility in the management of its capital base. Such shares
may be resold for cash but all rights attaching to them, including voting
rights and any right to receive dividends are suspended whilst they are
held in treasury. When the Board exercises the authority conferred by
Resolution 15, it has the option of the Company either holding in treasury
or of cancelling any of its shares purchased pursuant to this authority
and it will decide at the time of purchase which option to pursue.
Purchases of ordinary shares under the authority will be financed out of
realised revenue and/or capital reserves and funded from the Company’s
own cash resources or, if appropriate, from short-term borrowings. The
authority to purchase ordinary shares will continue until the annual
general meeting in 2023 or 30 June 2023, whichever is the earlier. The
Board intends to seek a renewal of such authority at subsequent annual
general meetings.
Form of Proxy for AGM voting
If you are a registered shareholder you will have received a Form of
Proxy for use at the AGM. You will also have the option of lodging your
proxy vote using the Internet. For shares held through CREST, proxy
appointments may be submitted via the CREST proxy voting system.
Please either complete, sign and return the Form of Proxy in the envelope
provided as soon as possible in accordance with the instructions or,
alternatively, lodge your proxy vote via the Internet or the CREST proxy
voting system, whether or not you intend to be present at the AGM.
All proxy appointments should in any event be returned or lodged so as
to be received not later than 12.00 noon on Thursday 28 April 2022.
Form of Direction
If you are an investor in any of the Manager's Savings Plans, you will have
received a Form of Direction for use at the AGM and you will also have
the option of lodging your voting directions using the Internet.
All voting directions should be made as soon as possible in accordance
with the instructions on the Form of Direction and, in any event, not later
than 12.00 noon on Monday 25 April 2022, so that the nominee company
can submit a Form of Proxy within the required period.
Voting recommendation
The Board considers that the resolutions to be proposed at the AGM are
in the best interests of shareholders as a whole. The Board therefore
recommends that shareholders vote in favour of each resolution, as the
Directors intend to do in respect of their own beneficial holdings.
By order of the Board
BMO Investment Business Limited
Company Secretary
9 March 2022

Report and Accounts 2021 | 49
Strategic Report
Governance Report
Financial Report
Notice of Meeting
Other Information
Chairman’s Statement
Overview
Auditor’s Report
Governance Report
with that of BMO GAM. They also presented to the Board on the
strength of its current business, the resources and opportunities that
can be expected as part of the enlarged business and their continued
support for the investment trust business. With regard to performance,
the Company’s share price and net asset value total returns have
comfortably outperformed the benchmark over both five and ten years
to 31 December 2021, meeting the Company’s objective of delivering
long-term growth in capital and income. The Committee met in closed
session following the presentations and concluded that, in its opinion,
the continuing appointment of the Manager on the terms agreed was
in the interests of shareholders as a whole. The Board ratified this
recommendation.
The Manager’s fee
In the year under review, the management fee was charged at the 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. The fee is calculated and paid monthly in arrears and is
subject to a reimbursement for amounts earned from investments in
other investment vehicles managed by the Manager. The amount paid
was £14.8m, an increase of 17.5% from £12.6m paid in 2020, reflecting
the higher average market capitalisation of the Company over the year.
Note 4 to the Accounts provides detailed information in relation to the
management fee.
The Manager delegates the management of the US portfolios to T. Rowe
Price International and Barrow, Hanley, Mewhinney & Strauss for which it
incurs fees. The Company reimburses the Manager for these fees, which
in 2021 amounted to £5.0m (2020: £4.6m) (see note 4 to the Accounts).
Review of the Manager’s fee
An important responsibility of the Committee is the regular review of the
Manager’s fee. The management fee is reviewed by the Committee every
three years and became due in December 2021. Whilst the Committee
considered that the existing fee structure was both sensible and aligned
with shareholders’ interests, it believed that there was scope for a
reduction in the ad valorem levels and requested that BMO GAM put
forward a proposal accordingly. A presentation was given by BMO GAM
and the Company’s broker, JPMorgan Cazenove, provided an in-depth
Role of the Committee
The primary role of the Management Engagement Committee is to review
the investment management agreement and monitor the performance
of the Manager for the investment, company secretarial, financial,
administration, marketing and support services that it provides under that
agreement. It also reviews the terms of the agreement, including the
level and structure of fees payable, the length of notice period and best
practice provisions generally. All of the Committee’s responsibilities have
been carried out over the course of 2021 and 2022 to date.
Manager evaluation process
The Committee met once during the year and again in February 2022
for the purpose of the formal evaluation of the Manager’s performance
(including the contribution from the Manager more widely). Its
performance is considered by the Board at every meeting, with a formal
evaluation by the Committee each year. For the purposes of its ongoing
monitoring, the Board receives detailed reports and views from the Fund
Manager on investment policy, asset allocation, stock selection, gearing
and risk, together with quarterly presentations on the BMO GAM managed
portfolio strategies. Quarterly updates are received from the US sub-
managers. The Board receives comprehensive performance measurement
schedules from the Manager and also from Morningstar UK Limited and
Refinitiv Eikon, which are leading data suppliers. These enable it to assess:
the success or failure of the management of the total portfolio against
the performance objectives set by the Board; the sources of positive
and negative contribution to portfolio returns in terms of gearing, asset
allocation and stock selection; and the performance of each investment
portfolio against its local index, where applicable, and the risk/return
characteristics. Portfolio performance information, which is relevant in
monitoring the Manager, the sub-managers and the Private Equity funds
of funds managers, is set out on pages 14 to 19.
Manager reappointment
The annual evaluation that took place in February 2022 included
presentations from the Fund Manager and the Manager's Head of
Investment Trusts. This focused primarily on the objectives set by the
Board and the Manager’s contribution towards achieving those objectives
particularly with regard to investment strategy and marketing. As part
of the evaluation, the CEO and Chief Investment Officer of Columbia
Threadneedle reported on progress of the integration of its business
Report of the Management
Engagement Committee