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£100 investment delivers £12m return

Had you a spare £100 back in 1868 and invested it with the F&C Investment Trust, it would be now worth over £12m.

On Monday the world’s oldest collective investment fund, the Foreign & Colonial Investment Trust, will celebrate its 150-year anniversary.

To mark the event, the F&C Board will open the market at the London Stock Exchange.

Established in 1868, the F&C Investment Trust was launched with the purpose of bringing investing to those of moderate means. That principle, it says, has stood the test of time for 15 decades, through world wars, recessions and financial crises. It represented a step-change in the way individuals could access the stock market, paving the way for the development of pooled savings vehicles like unit trusts and open-ended investment companies (OEICs).

It was also designed to take advantage of the benefits of pooled investment in the markets, whilst managing the risks. The portfolio originally consisted of 18 ‘Foreign & Colonial’ government bonds from Europe, Canada, South America, the Middle East, the USA and New Zealand.

Diversification has always been at the heart of the Trust, which introduced corporate bonds and mortgages into the portfolio in the 1890s before equities were added in the 1920s. The Trust’s first recorded purchase of an ordinary share was Shell Transport & Trading in 1925. Ninety-years later, this company is still represented in the portfolio as Royal Dutch Shell. As well as listed equities, investors are also able to access private equity exposure through the portfolio, which contains more than 450 holdings including funds.

In recent years, the F&C Investment Trust has reduced its UK weighting and begun investing more in overseas equities. It also moved to a global equity benchmark, the FTSE All-World Index in January 2013, to better reflect its global nature.

Since launch, the Trust has paid a dividend to shareholders for each of the last 150 years and increased its dividend every year for the last 47 consecutive years. An initial investment of £100 in F&C Investment Trust at launch would be worth more than £12m today.

The Chairman Simon Fraser said: “It is remarkable to think that the original purpose of F&C Investment Trust has remained relevant throughout its long history. Its principles were founded on long-termism, a pioneering approach and a desire to help investors provide for their future. The world may look very different today than it did 150 years ago, but these principles are as valid and relevant now as they were back then.

“Despite the growth in the industry, there is still much to be done to help people understand the benefits of saving and investing. Today there is a great need for individuals to plan and take control of their finances. More than ever before, the financial services industry needs to create simple to use, transparent savings products that help everybody in our society invest for the medium to long term, thus securing their financial futures.”

 

An investment in… £1 Invested in 1868 would now be worth *as at 31 December 2017 £100 invested in 1868 would now be worth *as at 31 December 2017 Rounded number for £100 invested in 1868 would now be worth *as at 31 December 2017
Foreign & Colonial Investment Trust £120,341.21 £12,034,121 £12 million
Representative basket of equities £75,709.40 £7,570,940 £7.5 million
Building Society accounts or equivalent £2,595.21 £259,521 £260 thousand
UK inflation £104.89 £10,489 £10.5 thousand
source – Newlands Fund Research

 

 

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