Unaudited Statement of Results – Half Year ended 30.06.2022

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



F&C INVESTMENT TRUST PLC
Unaudited Results for the half-year ended 30 June 2022

Legal Entity Identifier: 213800W6B18ZHTNG7371
Information disclosed in accordance with Disclosure Guidance and Transparency Rule 4.2.2

25 July 2022

F&C Investment Trust PLC ('FCIT' /the 'Company') today announces its results for the six months
ended 30 June 2022.

• The Net Asset Value (‘NAV’) total return was -9.6%; ahead of the -10.7% return from the
benchmark, the FTSE All-World Index.

• The share price total return was -11.8%, in part due to a widening of the discount during the period.

• Our private equity exposure, which is a strong differentiator for FCIT, posted a gain of 4.7%; ahead
of the returns from listed markets.

• Adjustments to the fair value of the Company’s debt added 2.5% to the performance from the
investment portfolio, whilst gearing detracted 1.0%. Gearing was 6.5% at the end of the period.

• Making use of our investment trust structure and the ability to borrow to enhance returns, we have
taken advantage again of low interest rates to draw £140m of borrowings through long-term private
placement loans.

• Over one year’s worth of dividends is held in the revenue reserve and the Board aims to increase
the total dividend again this year. The first interim dividend of 3.2 pence for 2022 will be paid on 1
August.

The Chairman, Beatrice Hollond, said:

“We continue to focus on long term capital and income growth for our shareholders. Our
diversified portfolio, investment trust structure, modest gearing, strong cash position and careful
management of risk position the Company well against an extraordinarily demanding market
backdrop.


The Board intends to increase dividends in real terms for shareholders over the long-term and our
current aim is to raise our dividend again this year. If we do so, this will be the 52nd consecutive
rise.

While we expect that the immediate outlook will continue to present a challenge, our portfolio
is sufficiently diversified to provide protection from over-exposure to any one theme
that is
driving markets.
”

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

“
The current backdrop is challenging for the global economy and for financial markets. Investors
are increasingly concerned that recession will hit major developed economies later this year and
into 2023 as central bankers increase interest rates and rein in excess liquidity. In addition,
inflation is proving more problematic than many had originally envisaged, raising questions over
the level that interest rates will reach and how deep the
growth downturn will be.

Nonetheless, and
despite a period which is likely to continue to see further volatility in returns,
opportunities are emerging. Valuations have corrected and are more attractive for long-term
investors. While margins are at risk, equities will provide some hedge to inflation as corporates
pass on price rises to consumers. With a relatively high holding of cash and diversified exposure
across a range of different equity strategies we believe that the Company is appropriately
positioned for the difficult market conditions that we expect. Given our longer-term perspective,
we expect to be in a strong position to take advantage of investment opportunities as they
emerge and to benefit from a recovery in equity
markets in due course.”

The full results statement is attached.

Past performance should not be seen as an indication of future performance. The value of investments
and income derived from them can go down as well as up as a result of market or currency movements
and investors may not get back the original amount invested.

Contacts

Paul Niven – Fund Manager
0207 011 4385

Campbell Hood
c
ampbell.hood@columbiathreadneedle.com

Tel: +44 (0)20 7011 4243

FTI Consulting
columbiathreadneedleuk@fticonsulting.com

Tel: +44 (0) 20 3727 1888


About FCIT:
• Founded in 1868 – the oldest collective investment trust
• A diversified portfolio provides exposure to most of the world's stock markets, with exposure to
over 400 individual companies across the globe
• Its aim is to generate long-term growth in capital and income by investing primarily in an
international portfolio of listed equities

Chairman’s Statement

Markets and performance
A substantial rise in inflation, caused by sharply rising energy prices after Russia’s invasion of Ukraine,
coupled with post-Covid supply chain issues led to expectations for a tightening of monetary policy by
central banks globally, a consequent decrease in risk appetite and sharp falls in equity markets worldwide.
Rising commodity prices more generally added impetus to the surge in inflation which, contrary to the
consensus, has not been transitory and has remained at stubbornly high levels. With equities declining
into a ‘bear market’, defined as a fall from the peak of over 20%, the Company delivered a Net Asset Value
(‘NAV’) total return of -9.6%, whilst our benchmark, the FTSE All-World Index, fell by 10.7%. However, a
widening in the Company’s discount from 7.3% to 9.6%, meant that the shareholder total return was -
11.8%.

The NAV per share closed at 892.8 pence compared with 998.7 pence at the end of 2021. The return from
our underlying investment portfolio was marginally behind the return of the benchmark. Despite holding a
geared position, which detracted 1.0% from returns, a rise in longer-dated market interest rates reduced
the fair value of our debt, and this added 2.5% to our NAV return.

We started the year with a gearing level of 9.4% and ended the first half with 6.5% gearing. During the
period
we drew £140m of additional long dated borrowings through long-term private placement loans.

Valuations in the private equity part of the portfolio have so far held up well and delivered a return of 4.7%
over the first six months, however we are expecting downwards revisions here as the year progresses to
reflect what has happened in the public markets. We have continued to make selective investments in this
area and agreed a new programme of exposure in leading growth and venture managers which will be
managed by Pantheon. These commitments are long-term in nature and our experience in terms of
unlisted private equity exposure has, historically, been positive.

Income and Dividends
We paid a third interim dividend of 3.0 pence per share for the year ended 31 December 2021 in February
2022 and a final dividend of 3.8 pence in May. We drew down 1.7 pence per share from our revenue
reserve to help fund the full year dividend of 12.8 pence. This represented an increase of 5.8% on the
previous year, ahead of the 5.4% rise in inflation for the year to 31 December 2021.

We continued to see good progress in our net revenue return over the first six months of the year, which
rose by 27.6% to 7.48p in comparison to 5.86p over the same period last year. The decline in sterling had
a positive impact, increasing returns by £1.1m (in the 2021 half year there was a negative impact of
£2.2m). Special dividends totalled £1.0m, up slightly from £0.6m in the first half of 2021. We have declared
a first interim dividend for the current year of 3.2 pence per share payable on 1 August 2022.

Despite a strong recovery from the pandemic, there remains significant uncertainty with respect to our full
year income but, at this point, it is unlikely that our earnings will cover the full year dividend payment to
shareholders. Therefore, as was the case in 2021, we expect to fund a proportion of the annual payment
from our Revenue Reserve, which continues to represent over one year’s worth of annual dividends. The
Board intends to increase dividends in real terms for shareholders over the long-term and our current aim
is to raise our dividend again this year. If we do so, this will be the 52nd consecutive rise.

The Board
Jeff Hewitt retired from the Board at the conclusion of the AGM in May this year, after 11 years’ service
as a Director and 10 years as Chairman of our Audit Committee. I am delighted that Julie Tankard will
replace Jeff and she joins the Board with effect from 1 August 2022. Julie is the Chief Financial Officer
and a Board member of the Port of London,
where she is also responsible for risk. She is a fellow of the
Chartered Institute of Management Accountants. Julie sits on the Industrial Development Advisory Board

and previously chaired the audit committee of an NHS Foundation Trust, prior to which she held various
senior positions at BT plc.

Outlook
The rise in inflation seen thus far and fears that we may be entering a period where price pressures will
remain elevated is causing substantial concern for both individuals and market participants. Interest rate
expectations have risen and valuations in equity markets have fallen as investors grow increasingly
nervous that a recession may be imminent.

The balance of risks suggests that investors are right to position for a fundamentally different, and
potentially more challenging, backdrop. Markets have, however, already reflected changed expectations
and much of the speculative froth has been removed from market pricing. A more reasonable valuation
backdrop presents opportunities for investors with a longer time horizon and a patient approach to
investing. While we expect that the immediate outlook will continue to present a challenge, our portfolio is
sufficiently diversified to provide protection from over-exposure to any one theme that is driving markets.
As noted earlier, our gearing levels have been reduced and our Manager has tilted the portfolio towards
areas more likely to benefit from a change in the investment landscape.

Beatrice Hollond
Chairman
22 July 2022

Fund Manager’s Review

It has been a difficult period for financial markets so far in 2022 with a substantial rise in market interest
rates, reflecting concerns over the outlook for inflation, a widening in credit spreads, due to concerns over
an economic slowdown and increased risk of corporate defaults, and sharp falls in equity markets.

Inflation and growth concerns, exacerbated by the conflict in Ukraine, were key themes over the first half
of the year. Inflation continued to accelerate across many different regions, reaching the highest levels
seen in the US for 40 years. With the exception of Japan, most major developed market central banks
have now begun increasing interest rates or indicated their intention to do so. This pivot from central banks
has led to a marked rotation away from highly rated growth stocks towards the value segments of the
market. Despite the steps taken so far, pressure remains to curb persistent inflation. Indeed, inflation has
proven less transient than many initially thought, as markets continue to price in further monetary
tightening and are now increasingly contemplating a recession in the US and other developed market
economies.

Currency markets also saw significant volatility. Sterling fell sharply against the US dollar, from 1.35 to
1.22, while the yen declined to a greater than twenty-year low against the US dollar, driven by ongoing
loose monetary policy against a backdrop of rising global interest rates.

Our investment portfolio delivered a return of -10.8% compared to the market benchmark return of -10.7%.
In terms of exposure, all listed equity regions lost value, with our North American equity holdings, our
largest regional allocation, falling 12.1%. ‘Growth’ stocks had a torrid time and substantially
underperformed cheaper ‘value’ exposure. As investors priced in the prospect of higher inflation and
interest rates and grew concerned over large scale withdrawal of liquidity by central banks, the valuation
premium on more expensive segments of the market, including disruptive technology stocks, diminished.
More speculative equity investments, trading on high valuations and with little or no profits, were hit
particularly hard and investors sought safety in more lowly valued stocks with greater visibility in near term
earnings.

Contributors to total returns in first half of 2022
%
Portfolio return (10.8)
Management fees (0.2)
Interest and other expenses (0.2)
Buybacks 0.1
Change in value of debt 2.5
Gearing/other (1.0)
Net asset value total return* (9.6)
Change in rating (2.2)
Share price total return (11.8)
FTSE All-World total return (10.7)
*Debt at market value
Source: Columbia Threadneedle/State Street
We have made substantial reductions in terms of our exposure to more expensive parts of the equity
market, predominantly through the sale of US large cap growth stocks, starting in the second half of 2020
and through the course of 2021. During the first half of this year we made further sales in expectation of
underperformance in this area. In addition, we made the decision to divest entirely from our exposure to

Global Small Cap stocks, having initially reduced our holdings last year. In our view, small cap stocks are
less likely to perform well in an environment of rising inflation and we decided to focus our exposure on
the large cap space. Small cap holdings modestly underperformed over the first half.


We increased our allocation to higher yielding stocks, expecting better performance to be driven by relative
valuations from this area but the primary destination for the proceeds of our sales was cash. Indeed, we
raised cash levels by almost £300m, from £53m at the start of the year to £352m at the end of June. Some
of this increase reflects the funding of our £140m private placement notes and we will use some of the
proceeds to pay down a seven-year euro denominated loan of €72m in July. Nonetheless, the effect of
our allocation changes was to reduce our net gearing levels to 6.5% with debt at par and 4.3% when we
adjust for the fair value of our debt.

As well as reducing our gearing levels and making further re-allocations away from US large cap growth
stocks, we reduced the outstanding value of our sterling hedge from around £200m to under £30m, with
a view to benefitting from sterling weakness. While rates rose in the UK and inflation here reached the
highest amongst G7 nations, we saw limited upside potential for the domestic currency.

Within our US holdings it was our value manager Barrow Hanley (-0.6% return) which provided the best
returns, while the strategy managed by our US growth manager T Rowe Price posted a loss of -25.8%.
Energy and commodity related stocks such as Hess
(+60.8%), Pioneer Natural Resources (+42.7%) and
Phillips 66 (+28.9%) were amongst the top performers in the US while a number of our large holdings,
such as Meta (-46%) and Amazon (-28.9%), detracted from returns.

Within our Global Strategies (-11.9% return) there was a wide dispersion of peformance. Strongest returns
came from our Quality Income strategy (-1.4%) where Woodside Petroleum (+61.4%) and Computershare
(+31.3%) helped relative returns. Despite delivering a loss of 6.1%, our higher yielding Global Income
strategy, where we invest in companies which have attractive yield characteristics and which tend to trade
at a valuation discount, produced strong relative returns against a weak overall market backdrop.
Elsewhere, our exposure to Sustainable Opportunities performed poorly, delivering a return of -19.6%. As
was the case elsewhere, the weighting in energy and commodity related stocks, along with more defensive
areas of the market such as consumer staples and utilities, played a role in relative returns. Indeed, oil
and gas stocks were the strongest performing area over the six months, delivering a gain of 28.0% as, in
response to the war in Ukraine and concerns over disruption to global supply as well as an improved
demand picture, crude oil gained up to $45 a barrel, having started the year at around $75 a barrel.

In Europe inc. UK (-13.8%) our biggest positive contribution came from pharmaceuticals where an
overweight stance to AstraZeneca (+26.6%), GlaxoSmithKline (+12.4%) and Novo
Nordisk (+10.9%)
benefited returns. Each produced good results and confident outlooks at a time when investors are
increasingly concerned about weakening profitability. An underweight stance on oil and gas stocks and
poor returns from both Delivery Hero (-62.6%) and JustEat (-68.3%), however, detracted from returns.
Holdings in lowcost airlines, including Wizz Air (-58.1%), also impacted negatively despite clear evidence
of rising fares, as fuel costs continued to rise (though airports have cancelled many flights).

Japanese holdings underperformed both the local benchmark and the global index. The strategy suffered
headwinds, with quality growth stocks on relatively high multiples underperforming materially relative to
value stocks, as expectations for higher global interest rates picked up. Lockdown thematic winners like
Keyence (-39.2%) and
Hoya (-35.7%) underperformed and, as was the case with some of our other
managers, lack of exposure to energy and utility stocks was detrimental to returns.

Our private equity holdings had a strong first half, posting overall gains of 4.7%. Our recent commitments,
where we hold 8.3% of the portfolio assets, posted strong returns of 7.9%, as did our older holdings
overseen by Pantheon and HarbourVest which delivered a gain of 6.6%. Both returns were substantially
ahead of listed markets. Elsewhere, we saw good progress on our Pantheon Future Growth allocation,
which became fully committed and which invests into leading growth and venture managers. We have
made a further $180m commitment to a new and similar programme also managed by Pantheon. These,
and other private equity holdings, are long-term in nature and, historically, we have enjoyed good returns

against public market equivalents from such positions. More disappointing returns were delivered from our
holdings in life sciences investor Syncona (-3.8%), and the Baillie Gifford managed Schiehallion fund (-
43.4%) which fell from a premium to a discount over the period.

A substantial rise in market interest rates led to a reduction in the fair value of our debt over the period.
Indeed, with ten-year gilt yields rising from less than 1% at the start of the year to over 2.2% by the end of
June, this shift in pricing added 2.5% to our NAV return over the six months. The impact of gearing in a
declining market was -1.0%.

Current Market Perspective
The current backdrop is challenging for the global economy and for financial markets. Investors are
increasingly concerned that recession will hit major developed economies later this year and into 2023 as
central bankers increase interest rates and rein in excess liquidity. In addition, inflation is proving more
problematic than many had originally envisaged, raising questions over the level that interest rates will
reach and how deep the growth downturn will be.

Having seen a substantial reduction in valuations in equities, led by more expensive parts of the market,
and a significant change in expectations over interest rates, there is likely to be greater investor focus on
margins, cashflows and overall corporate earnings in the coming months. Here, consensus still seems
reasonably optimistic. This presents some further near-term risk to equity markets. Nonetheless, and
despite a period which is likely to continue to see further volatility in returns, opportunities are emerging.
Valuations have corrected and are more attractive for long-term investors. While margins are at risk,
equities will provide some hedge to inflation as corporates pass on price rises to consumers. With a
relatively high holding of cash and diversified exposure across a range of different equity strategies we
believe that the Company is appropriately positioned for the difficult market conditions that we expect.
Given our longer-term perspective, however, we expect to be in a strong position to take advantage of
investment opportunities as they emerge and to benefit from a recovery in equity markets in due course.


Paul Niven
Fund Manager
22 July 2022

Weightings, stock selection and performance in each investment portfolio strategy
and underlying geographic exposure versus index as at 30 June 2022
Investment
portfolio
strategy

Our portfolio
strategy
weighting
%
Underlying
geographic
exposure*
%
Benchmark
weighting
%
Our strategy
performance in
sterling
%
Index
performance in
sterling
%

North America 39.6 57.1 61.8 (12.1) (11.6)

Europe inc UK 10.8 23.8 16.0 (13.8) (12.2)

Japan 4.6 6.9 6.3 (16.8) (10.2)

Emerging
Markets 7.2 8.4 11.0 (12.5) (8.1)

Developed
Pacific - 3.8 4.9 - (6.1)

Global
Strategies 24.8 - - (11.9) (10.7)

Private Equity 13.0 - - 4.7 -
Source: Columbia Threadneedle/State Street
*Represents the geographic exposure of the portfolio, including underlying exposures in private equity and fund
holdings

UNAUDITED CONDENSED INCOME STATEMENT


6 months to 30 June 2022 6 months to 30 June 2021
Notes

Revenue
£’000s
Capital
£’000s
Total
£’000s
Revenue
£’000s
Capital
£’000s
Total
£’000s

(Losses)/gains on investments and
derivatives
- (649,585) (649,585) - 487,969 487,969
Exchange gains/(losses) 335 (7,158) (6,823) (216) 7,922 7,706
3 Income 50,833 - 50,833 40,396 - 40,396
4 Fees and other expenses (4,848) (6,784) (11,632) (3,975) (7,206) (11,181)

Net return before finance costs
and taxation
46,320 (663,527) (617,207) 36,205 488,685 524,890
4
Interest payable and similar
charges
(1,751) (5,255) (7,006) (1,221) (3,663) (4,884)

Net return on ordinary activities
before taxation
44,569
(668,782) (624,213)
34,984
485,022 520,006
5 Taxation on ordinary activities
(5,373) (551) (5,924) (3,630) (138) (3,768)
6
Net return attributable to
shareholders
39,196
(669,333) (630,137)
31,354
484,884 516,238
6
Net return per share - basic
(pence)

7.48

(127.67)

(120.19)

5.86

90.69

96.55


The total column is the profit and loss account of the Company.
All revenue and capital items in the above statement derive from continuing operations.

UNAUDITED CONDENSED STATEMENT OF CHANGES IN EQUITY


Capital Total
Share redemption Capital Revenue shareholders
’
capital reserve reserves reserve funds
Notes
Half-year ended 30 June 2022 £’000s £’000s £’000s £’000s £’000s
Balance brought forward
31 December 2021
140,45
5 122,307 4,924,320 93,852 5,280,934
Movements during the half-year
ended 30 June 2022

11 Shares repurchased by the Company
and held in treasury

-

-

(54,352)

-

(54,352)
7 Dividends paid - - - (52,382) (52,382)
Return attributable to shareholders - - (669,333) 39,196 (630,137)
Balance carried forward
30 June 2022
140,45
5 122,307 4,200,635 80,666 4,544,063


Capital Total
Share redemption Capital Revenue shareholders’
capital reserve reserves reserve funds
Notes
Half-year ended 30 June 2021 £’000s £’000s £’000s £’000s £’000s
Balance brought forward
31 December 2020
Movements during the half-year
ended 30 June 2021

140,455

122,307

4,147,868

100,930

4,511,560
Shares repurchased by the
Company and held in treasury

-

-

(34,059)

-

(34,059)
7 Dividends paid - - - (33,709) (33,709)
Return attributable to shareholders - - 484,884 31,354 516,238
Balance carried forward
30 June 2021 140,455 122,307 4,598,693 98,575 4,960,030





Notes



Year ended 31 December 2021

Share
capital
£’000s
Capital
redemption
reserve
£’000s

Capital
reserves
£’000s

Revenue
reserve
£’000s
Total
shareholders
’ funds
£’000s
Balance brought forward
31 December 2020

140,455

122,307

4,147,868

100,930

4,511,560
Movements during the year
ended 31 December 2021
Shares repurchased by the
Company and held in treasury - - (84,326) - (84,326)
7
Dividends paid - - - (65,578) (65,578)
Return attributable to shareholders
- - 860,778 58,500 919,278
Balance carried forward
31 December 2021 140,455 122,307 4,924,320 93,852 5,280,934

UNAUDITED CONDENSED BALANCE SHEET

Notes

30 June 2022
£’000s

30 June 2021
£’000s
31 December
2021
£’000s
Fixed assets
8 Investments 4,850,660 5,397,368 5,779,123
Current assets
Debtors 15,589 55,875 8,267
14 Cash and cash equivalents 352,290 54,903 53,111
Total current assets 367,879 110,778 61,378
Creditors: amounts falling due within one
year
9, 14 Loans (61,981) - (110,452)
10 Other (31,765) (45,678) (9,277)
Total current liabilities (93,746) (45,678) (119,729)
Net current assets/(liabilities) 274,133 65,100 (58,351)
Total assets less current liabilities 5,124,793 5,462,468 5,720,772
Creditors: amounts falling due after more
than one year
9, 14 Loans (580,155) (501,863) (439,263)
9, 14 Debenture (575) (575) (575)
(580,730) (502,438) (439,838)
Net assets 4,544,063 4,960,030 5,280,934

Capital and reserves
11 Share capital 140,455 140,455 140,455
Capital redemption reserve 122,307 122,307 122,307
Capital reserves 4,200,635 4,598,693 4,924,320
Revenue reserve 80,666 98,575 93,852
12 Total shareholders’ funds 4,544,063 4,960,030 5,280,934
12 Net asset value per ordinary share
– prior charges at nominal value (pence) 873.36 931.59 1,002.49

UNAUDITED CONDENSED STATEMENT OF CASH FLOWS




Half-year
ended
30 June
2022
Half-year
ended
30 June
2021

Year ended
31 December
2021
Notes £’000s £’000s £’000s
13 Cash flows from operating activities before
dividends received and interest paid (18,723) (11,756) (27,576)
Dividends received 49,033 39,477 77,652
Interest paid (6,108) (4,843) (11,037)
Cash flows from operating activities 24,202 22,878 39,039
Investing activities
Purchases of Investments (1,236,993) (1,322,861) (2,527,995)
Sales of Investments 1,519,188 1,259,446 2,483,392
Other capital charges and credits (24) (26) (56)
Cash flows from investing activities 282,171 (63,441) (44,659)
Cash flows before financing activities 306,373 (40,563) (5,620)
Financing activities
Equity dividends paid (35,733) (33,709) (65,578)
14 Repayment of loans (50,000) (100,000) (120,000)
14 Drawdown of loans 140,000 200,000 270,000
Cash flows from share buybacks for treasury
shares (53,812) (31,273) (83,961)
Cash flows from financing activities 455 35,018 461
14 Net increase/(decrease) in cash and cash
equivalents 306,828 (5,545) (5,159)
Cash and cash equivalents at the beginning of
the period 53,111 46,654 46,654
14 Effect of movement in foreign exchange (7,649) 13,794 11,616
Cash and cash equivalents at the end of
the
period 352,290 54,903 53,111



Represented by:

Cash at bank 219,657 24,711 27,798
Short term deposits 132,633 30,192 25,313
Cash and cash equivalents at the end of
the
period 352,290 54,903 53,111

UNAUDITED NOTES ON THE CONDENSED ACCOUNTS

1 Results
The results for the six months to 30 June 2022 and 30 June 2021 constitute non-statutory accounts within the
meaning of Section 434 of the Companies Act 2006. The latest published accounts which have been delivered to
the Registrar of Companies are for the year ended 31 December 2021; the report of the Auditors thereon was
unqualified and did not contain a statement under Section 498 of the Companies Act 2006. The condensed financial
statements shown for the year ended 31 December 2021 are an extract from those accounts.

2 Accounting policies
(a) Basis of preparation
These condensed financial statements have been prepared on a going concern basis in accordance with the
Companies Act 2006, Interim Financial Reporting (FRS 104) and the revised Statement of Recommended Practice
‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ (SORP), issued by the AIC in April
2021.

The accounting policies applied for the condensed set of financial statements are set out in the Company’s annual
report for the year ended 31 December 2021.

(b) Use of judgements, estimates and assumptions
The presentation of the financial statements in accordance with accounting standards requires the Board to make
judgements, estimates and assumptions that affect the accounting policies and reported amounts of assets, liabilities,
income and expenses. Estimates and judgements are continually evaluated and are based on perceived risks,
historical experience, expectations of plausible future events and other factors. Actual results may differ from these
estimates.

The area requiring the most significant judgement and estimation in the preparation of the financial statements is
accounting for the value of unquoted investments.

The policy for valuation of unquoted securities is set out in note 8 of the accounts and further information on Board
procedures is contained in the Report of the Audit Committee and note 26(d) of the Report and Accounts as at 31
December 2021. The choice to only apply cash flows in the roll forward is a judgment made each year for the indirect
investments. Material judgements were applied to the valuation of the Company’s direct investment, Inflexion
Strategic Partners. This investment was valued using the earnings method multipled by a comparable quoted
company multiple (where the judgement of which comparable companies to select and what discounts to apply are
subjective). The fair value of unquoted (Level 3) investments, as disclosed in note 8, represented 12.2% of total
investments at 30 June 2022. Under foreseeable market conditions the collective value of such investments may
rise or fall in the short term by more than 25%, in the opinion of the Directors. A fall of 25% in the value of the unlisted
(Level 3) portfolio at the half-year would equate to £148m or 3.3% of net assets and a similar percentage rise should
be construed accordingly.

3 Income




Half-year ended
30 June 2022
£’000s
Half-year ended
30 June 2021
£’000s
Income comprises:
UK dividends 4,649 4,135
Overseas dividends 45,988 36,119
Interest on short-term deposits and other
income 196 142
Income 50,833 40,396

Included within income is £1.0m (30 June 2021: £ 0.6m; 31 December 2021: £ 1.4m) of special dividends classified
as revenue in nature.
The value of special dividends treated as capital in nature is £0.1m (30 June 2021: £ 0.0m; 31 December 2021:
£1.5m).

4 Fees and other expenses and interest payable and similar charges


Half-year ended
30 June 2022
£’000s
Half-year ended
30 June 2021
£’000s
Fees and other expenses 11,632 11,181
Interest payable and similar charges 7,006 4,884
Total 18,638 16,065

Fees and other expenses comprise:
Allocated to Revenue Account

- Management fees payable directly to the Manager* 2,252 2,391
- Other expenses 2,596 1,584
4,848 3,975
Allocated to Capital Account
- Management fees payable directly to the Manager* 6,755 7,172
- Other expenses 29 34
6,784 7,206
Interest payable and similar charges comprise:
Allocated to Revenue Account 1,751 1,221
Allocated to Capital Account 5,255 3,663
* Including reimbursement in respect of services provided by sub-managers

The Manager’s remuneration is based on a fee of 0.325% (0.35% up to 31 December 2021) 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
calculated at each month end date on a pro-rata basis. The fee is adjusted for fees earned by the Manager in respect
of investment holdings managed or advised by the Manager. Variable fees payable in respect of third party sub-
managers are also reimbursed. The services provided by the Manager remain unchanged from those disclosed
within the accounts for the year ended 31 December 2021. The level of variable fees payable in respect of third party
sub-managers and private equity managers remain unchanged since the year end.

5 Taxation
The taxation charge of £5,924,000 (30 June 2021: £3,768,000) relates to irrecoverable overseas taxation and
Indian tax on capital gains.

6 Net return per share
Net return per ordinary share attributable to ordinary shareholders reflects the overall performance of the Company
in the period. Net revenue recognised in the first six months is not indicative of the total likely to be received in the
full accounting year.

Half-year
ended
30 June
2022
pence
Half-year
ended
30 June
2022
£’000s
Half-year
ended
30 June
2021
pence
Half-year
ended
30 June
2021
£’000s
Revenue return 7.48 39,196 5.86 31,354
Capital return (127.67) (669,333) 90.69 484,884
Total return (120.19) (630,137) 96.55 516,238
Weighted average ordinary shares in issue
excluding treasury shares (see note 11) 524,268,795 534,639,847

7 Dividends



Dividends paid and payable
on ordinary shares




Register date




Payment date
Half-year
ended
30 June
2022
£’000s
Half-year
ended
30 June
2021
£’000s
Year
ended 31
December
2021
£’000s
2020 Third interim of 2.90p 3-Jan-2021 01-Feb-2021 – 15,563 15,563
2020 Final of 3.40p 16-Apr-2021 13-May-2021 – 18,146 18,146
2021 First interim of 3.00p 16-Jul-2021 2-Aug-2021 – – 15,967
2021 Second interim of 3.00p 8-Oct-2021 1-Nov-2021 – – 15,902
2021 Third interim of 3.00p 7-Jan-2022 1-Feb-2022 15,804 – –
2021 Final of 3.80p 8-Apr-2022 10-May-2022 19,929 – –
2022 First interim of 3.20p 1-Jul-2022 1-Aug-2022 16,649 – –
52,382 33,709 65,578

The Directors have declared a first interim dividend in respect of the year ending 31 December 2022 of 3.20p per
share, payable on 1 August 2022 to all shareholders on the register at close of business on 1 July 2022. The
amount of this dividend will be £16,649,000 based on 520,294,833 shares in issue at 30 June 2022. This amount
has been accrued in the results for the half-year ended 30 June 2022 as the ex-dividend date was 30 June 2022.

8 Investments
Fair value hierarchy
The Company’s Investments as disclosed in the balance sheet are valued at fair value.
The fair value as at the reporting date has been estimated using the following fair value hierarchy:

Level 1 includes investments and derivatives listed on any recognised stock exchange or quoted on the AIM market
in the UK and quoted open-ended funds.

Level 2 includes investments for which the quoted price has been suspended, forward exchange contracts and other
derivative instruments.

Level 3 includes investments in private companies or securities, whether invested in directly or through pooled
Private Equity vehicles, for which observable market data is not specifically available.

The analysis of the valuation basis for financial instruments based on the hierarchy is as follows:


As at 30 June 2022
£’000s

As at 30 June 2021
£’000s

As at 31 December 2021
£’000s
Level 1 4,259,149 4,951,479 5,259,951
Level 3 591,511 445,889 519,172
Total valuation of
investments 5,850,660 5,397,368

5,779,123

With respect specifically to investments in Private Equity, whether through funds or partnerships, the Directors rely
on the latest available unaudited quarterly valuations of the underlying unlisted investments as supplied by the
investment advisers or managers of those funds or partnerships. The Directors regularly review the principles applied
by the managers to those valuations to ensure they are in compliance with the principal accounting policies as stated
in the year end report and accounts.

No investments held at 30 June 2022, 30 June 2021 or 31 December 2021 were valued in accordance with level 2.

Derivative instruments
Derivative instruments included forward exchange contracts with a net unrealised capital loss of £1.6m as at 30 June
2022 (30 June 2021: unrealised capital loss of £1.2m and 31 December 2021: unrealised capital loss of £4.8m).

9 Loans and Debenture


30 June 2022
£’000s


30 June 2021
£’000s

31 December
2021
£’000s
Loans falling due within one year 61,981 - 110,452
Loans falling due after more than one year 580,155 501,863 439,263
Debenture falling due after more than one year 575 575 575
Comprising:
Sterling denominated loan, falling due within one year - - £50m
Euro denominated loan, falling due within one year €72m - €72m
Sterling denominated loan, falling due after more one
year £544m £404m £404m
Euro denominated loan, falling due after more than one
year €42m

€114m €42m
4.25% perpetual debenture stock £0.575m £0.575m £0.575m

In March 2022 the Company issued fixed rate senior unsecured notes in tranches of £50 million, £45 million and £45
million expiring in March 2037, March 2056 and March 2061 respectively. Interest rates applying to the notes are
commercially competitive and fixed until the expiry dates.

10 Other creditors falling due within one year
30 June 2022
£’000s
30 June 2021
£’000s
31 December 2021
£’000s
Cost of ordinary shares repurchased 1,325 3,205 784
Investment creditors 8,346 37,955 42
Management fee payable to the Manager 1,726 2,173 2,241
Foreign exchange contracts 1,559 1,205 4,806
Dividend payable 16,649 - -
Other accrued expenses 2,160 1,140 1,404
31,765 45,678 9,277

11 Share capital




Equity share capital


Shares held in
treasury
Number

Shares
entitled to
dividend
Number


Total shares
in issue
Number
Total
shares in
issue
nominal
£’000s
Ordinary shares of 25p each
Balance at 31 December 2020 35,035,876 526,783,140 561,819,016 140,455
Shares repurchased by the Company and
held in treasury 6,488,307 (6,488,307) - -
Balance at 30 June 2021 41,524,183 520,294,833 561,819,016 140,455

6,488,307 shares were repurchased during the period at a cost of £54,352,000. Shares held in treasury have
no voting rights and no right to dividend distributions and are excluded from the calculations of earnings per
share and net asset value per share.

12 Net asset value per ordinary share
30 June 2021 30 June 2021 31 December 2021

Net asset value per share -pence

873.36

931,59

1,002.49
Net assets attributable at end of period - £’000s 4,544,063 4,960,030 5,280,934
Ordinary shares of 25p in issue at end of period
excluding shares held in treasury - number 520,294,833 532,428,251

526,783,140

Net asset value per share (with the debenture stock and long-term loans at market value) at 30 June 2022 was
892.77p (30 June 2021: 927.41p and 31 December 2021: 998.72p). The market value of debenture stocks at 30
June 2022 was £429,000 (30 June 2021 and 31 December 2021: £429,000). The market value of the long-term
loans at 30 June 2022 was £479,338,000 (30 June 2021: £524,243,000 and 31 December 2021: £458,896,000)
based on the equivalent benchmark gilts or relevant commercially available current debt.

13 Reconciliation of net return before taxation to cash flows from operating activities

Half-year
ended
30 June 2022
£’000s
Half-year
ended
30 June 2021
£’000s

Year ended
31 December 2021
£’000s
Net return on ordinary activities before taxation
(624,213) 520,006 927,156
Adjust for non-cash flow items, dividend income and
interest expense:
Losses/(gains) on investments 649,585 (487,969) (879,862)
Exchange losses/(gains) 6,823 (7,706) (4,075)
Non-operating expense of a capital nature 29 34 57
(Increase)/decrease in other debtors (112) 24 60
Decrease in creditors (635) (341) (61)
Dividends receivable (50,637) (40,254) (77,618)
Interest payable 7,006 4,884 11,113
Tax on overseas income and Indian Capital Gains Tax (6,569) (434) (4,346)
605,490 (531,762) (954,732)
Cash flows from operating activities (before dividends
received and interest paid)

(18,723)

(11,756)

(27,576)


14 Analysis of changes in net debt




Cash
£’000s


Short
term
loans
£’000s

Long
term
loans
£’000s



Debenture
£’000s


Forward
FX
£’000s



Total
£’000s
Opening net debt as at 31
December 2021 53,111

(110,452)

(439,263) (575)

(4,806) (501,985)






Cash-flows:





Drawdown of loans - - (140,000) - - (140,000)
Repayment of bank loans - 50,000 - - - 50,000

Net movement in cash and
cash equivalents

306,828

-

-

-

-

306,828

Non-cash:
Effect of foreign exchange
movements

(7,649)

(1,529)

(892)

-

3,247

(6,823)

Closing net debt as at 30
June 2022
352,290 (61,981) (580,155) (575) (1,559) (291,980)

15 Going concern
In assessing the going concern basis of accounting the Directors have had regard to the guidance issued by the
Financial Reporting Council. They have also considered the Company’s objective, strategy and policy; current cash
position; the availability of loan finance; compliance with all financial loan and private placement covenants; and the
operational resilience of the Company and its service providers. It is recognised that the Company is mainly invested
in readily realisable, globally listed securities that can be sold, if necessary, to repay indebtedness.

Based on this information and their knowledge and experience of the Company’s portfolio and stockmarkets, the
Directors believe that the Company has the ability to meet its financial obligations as they fall due for a period of at
least twelve months from the date of approval of these financial statements. Accordingly, these financial
statements have been prepared on a going concern basis.

Statement of Principal and Emerging Risks and Uncertainties

The Company’s principal risks and uncertainties are described in detail under the heading ‘Principal risks and future
prospects’ within the strategic report in the Company’s annual report for the year ended 31 December 2021. They
include: failure to access the targeted market or meet investor needs or expectations; inappropriate asset allocation,
sector and stock selection, currency exposure and use of gearing and derivatives may lead to investment
underperformance; failure of the management company to continue to operate effectively resulting from inadequate
systems or resources or through loss of key staff; COVID-19 and the implementation of hybrid working arrangements
and increased sophistication of cyber threats have heightened the risk of loss through errors, fraud or control failures
at service providers or loss of data through business continuity failure.

In the view of the Board, there have not been any material changes to the fundamental nature of these risks and
they are applicable to the remainder of the financial year.


Statement of Responsibilities in Respect of the Half-Yearly Financial Report


In accordance with Chapter 4 of the Disclosure Guidance and Transparency Rules, the Directors confirm that to
the best of their knowledge:

• the condensed set of financial statements has been prepared in accordance with applicable UK Accounting
Standards on a going concern basis and gives a true and fair view of the assets, liabilities, financial position
and net return of the Company;

• the half-yearly report includes a fair review of the important events that have occurred during the first six
months of the financial year and their impact on the financial statements;

• the Statement of Principal and Emerging Risks and Uncertainties shown above is a fair review of the principal
risks and uncertainties for the remainder of the financial year; and

• the half-yearly report includes a fair review of the related party transactions that have taken place in the first
six months of the financial year.




On behalf of the Board
Beatrice Hollond
Chairman
22 July 2022


Neither the contents of the Company's website nor the contents of any website accessible from hyperlinks on the
Company's website (or any other website) is incorporated into, or forms part of, this announcement.
Columbia Threadneedle Investment Business Limited,
Company Secretary

ENDS
A copy of the half report will shortly be submitted to the National Storage Mechanism and will be available for
inspection at www.fca.org.uk


The half-year report will be posted to shareholders and made available on the internet at www.fandc.com
shortly.
Copies may be obtained during normal business hours from the Company’s Registered Office, Exchange House,
Primrose Street, London EC2A 2NY.

Columbia Threadneedle Investment Business Limited