F&C Investment Trust PLC on Thursday reported a strong annual performance in 2021, beating its benchmark, but its chair has warned that equity markets will be strained over 2022 and beyond.

F&C aims for long-term growth and income by investing in listed equities globally.

F&C’s net asset value per share at December 31 came in at 998.7 pence, rising 20% from 831.8p a year before.

Nav total return for 2021 was 21.7%, exceeding the gains from its benchmark, the FTSE All-World Index, of 19.5%.

‘It was a year of outperformance from our private equity holdings where both our recent and our older investments produced strong gains. Our portfolios of listed investments delivered strong absolute returns led by North American equities, notably with the value component outperforming the growth portfolio,’ Chair Beatrice Hollond said.

F&C declared a final dividend of 3.8 pence per share, up from the previous year’s 3.4p. This brought the total annual payout to 12.8p, beating the 12.1p per share in 2020 by 5.8%.

Looking ahead, Hollond said: ‘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.’

‘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,’ Hollond added.

F&C shares were down 1.5% to 793.00p each in London on Thursday morning.

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