F&C Investment Trust PLC on Monday said it outperformed its benchmark in the first half of 2022, despite sharp falls for equity markets, and it increased its payout to shareholders.

The London-based investment trust’s net asset value per share was 892.8 pence on June 30, down 11% from 998.7p at the end of 2021.

NAV total return for the first half amounted to negative 9.6%, ahead of the negative 11% returned by its benchmark, the FTSE All-World Index.

The company recorded a negative share price total return of 11%. F&C Investment shares were trading 0.8% lower at 856.03 pence each in London on Monday morning. The wider FTSE 250 index was down 0.3%.

F&C cited inflationary pressures coupled with supply chain issues and the tightening of monetary policy by central banks globally, as reasons for its declining NAV.

The consequence of these challenges was a decrease in investor risk appetite and sharp falls in equity markets worldwide that caused a ‘bear market’, F&C explained.

The FTSE 250 firm declared an interim dividend of 3.2 pence, up 6.7% from 3.0 pence a year before.

Looking ahead, F&C said it intends to increase dividends for shareholders over the long-term.

Nonetheless, the investment trust warned of further challenges in the immediate future but noted that its portfolio ‘is sufficiently diversified to provide protection from over-exposure to any one theme that is driving markets.’

‘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,’ Chair Beatrice Hollond said.

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