Unaudited Statement of Results - Half Year Ended 30.06.24

Cannon Place, 78 Cannon Street,
London, EC4N 6AG
Telephone +44 (0)20 7464 5000
fandc.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: Cannon Place, 78 Cannon Street, London EC4N 6AG



F&C INVESTMENT TRUST PLC
Unaudited Results for the half-year ended 30 June 2024

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

1 August 2024

F&C Investment Trust PLC (the 'Company' or ‘F&C’) today announces its results for the six months
ended 30 June 2024.

• The net asset value (‘NAV’) total return was +13.2%. This was ahead of the return from the
benchmark, the FTSE All-World Index’ which returned +12.0%.
The NAV rose to 1,145.47p from 1,022.07p at 31 December 2023.
• The share price total return was +6.4%.
The share price increased to 1,012.0p from 962.0p at 31 December 2023.
• The Board aims to increase the total dividend again this year. The first interim dividend of 3.6
pence for 2024 to be paid today, 1 August.

The Chairman, Beatrice Hollond, said:

“Equity markets delivered strong returns in the first half, led by technology stocks which were driven by
robust earnings growth and ongoing enthusiasm relating to Artificial Intelligence (‘AI’). I am pleased to
report that the Company produced a net asset value (‘NAV’) total return of +13.2%, outperforming the
return of +12.0% from our benchmark.”

Commenting on the markets, Paul Niven, Fund Manager of F&C, said:

“Equity markets have had an excellent start to 2024, building upon their strong returns delivered in late
2023. A number of the ‘Magnificent Seven’, all of which we hold in our portfolio, were again stand out
performers despite rich valuations, still high interest rates and signs of fading US economic
exceptionalism.

“Concentration of stocks within the S&P 500 has surged to the highest level since the turn of the century,
with the Magnificent Seven now accounting for over 30% of the index. However, recently, performance
within the group has been more mixed, with those geared to the AI theme leading.

“F&C remains underweight to the Magnificent Seven, gaining more diversified exposure to the AI theme
from holdings in Broadcom, Vertiv Holdings, and Qualcomm. We delivered relative outperformance on our
listed holdings despite underweight positions in many of the US stocks which drove the first half rally.

“Outside of the US, key market indices in Japan, Europe and the UK climbed to new record highs as the
rally broadened and global economic activity recovered. Emerging Markets were the notable laggard as
the Chinese economic recovery continued to disappoint.

“Looking forward, while we remain uncertain of the unfolding economic environment, we do expect that
performance within equities will broaden and that relative value will be an important consideration for
prospective returns.

“We have a relatively balanced approach within our portfolio between the cheaper, but more cyclically
exposed areas of the market, and the higher growth, more expensive segments which have exciting
prospects but appear fully priced.

“A narrow market presents both opportunities and risks and we believe that a diversified approach will, in
due course, provide better returns, with lower risk, for shareholders.”

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
020 3530 6396
Campbell Hood
campbell.hood@columbiathreadneedle.com

07860 911 622
FTI Consulting
columbiathreadneedleuk@fticonsulting.com

020 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

Equity markets delivered strong returns in the first half, led by technology stocks which were driven by
robust earnings growth and ongoing enthusiasm relating to Artificial Intelligence (‘AI’). I am pleased to
report that the Company produced a net asset value (‘NAV’) total return of +13.2%, outperforming the
return of +12.0% from our benchmark, the FTSE All-World Index. There was a general widening in the
discount level of investment trust companies across the sector and the Company’s discount moved out
from 5.9% to 11.7%. Consequently, the return to shareholders of +6.4% lagged the NAV return.

Our NAV per share ended the period at 1,145.47 pence compared with 1,022.07 pence at the end of 2023.
The return from our investment portfolio, i.e. before fees and other effects, of +12.2% exceeded the
benchmark return, while higher market interest rates reduced the fair value of our outstanding debt, adding
0.4% to our NAV return. The Company’s gearing (with debt at fair value) fell from 6.3% at the start of the
year to 4.9% at the end of the period.

In response to a widening in our discount we increased the scale of share buybacks and bought back
10.2m of shares over the first half of the year. This added approximately 0.2% to our NAV. The Board
believes that the relatively wide discount at which we ended the first half does not reflect the strength of
our investment proposition for shareholders and remains firmly committed to the use of share buybacks
where we see value. We note that our discount has narrowed since the end of June. In addition to the use
of share buybacks to aid the management of our discount, we continue to pursue an active marketing
programme with the aim of broadening our current shareholder base.

Both Europe and the UK saw an encouraging fall in inflation rates over the first half of the year. UK
consumer price inflation fell from 4.0% in December to 2.0% in May while, in June, the European Central
Bank cut interest rates for the first time since 2019. US inflation, however, has proved to be ‘stickier’ due
to more resilient economic growth, with the US Federal Reserve now expected to cut interest rates later
and by less than previously forecast. Sterling fell modestly, by 0.7%, against the US dollar in the first half
of 2024. The return from our private equity investments was +6.0%. While it was encouraging to see
progress, these returns lagged gains from listed equities. The near-term backdrop for private equity assets
remains challenging, particularly given rises in the cost of debt and a slow pace of deal flow. Nonetheless,
we have made good returns from our investments in this area over longer periods and there are tentative
signs that the environment for private equity is now improving.

INCOME AND DIVIDENDS
We paid a third interim dividend of 3.4 pence per share for the year ended 31 December 2023 in
February 2024 and a final dividend of 4.5 pence in May. Our full year 2023 dividend of 14.7 pence per
share was fully covered by earnings of 15.83 pence per share and represented an increase of 8.9% on
the previous year.

Our net revenue return per share over the first six months of the year rose by 10.9% to 9.64 pence,
compared to 8.69 pence over the corresponding period last year. Although sterling was little changed
against both the US Dollar and the Euro in the first six months of 2024, it was trading at a higher
average level than in the first half of 2023 and this detracted £1.9m from the return. Special dividends
totalled £1.2m, down from £2.2m in the first half of 2023.

We expect that our earnings will again cover our full year dividend in 2024. It remains the aspiration of
the Board to continue the Company’s track record of delivering rises in dividends which exceed inflation
over the long term and we retain a substantial revenue reserve to help meet this objective if required.
We have declared a first interim dividend for the current year of 3.6 pence per share to be paid on 1
August 2024. The Board plans to deliver another rise in our total dividend for this year, which will be the
54th consecutive annual rise. We are also continuing our marketing efforts to increase awareness of the
benefits of investing in the Company and to attract new investors.

THE BOARD
Tom Joy retired from the Board on 31 March this year after accepting an opportunity to take on a new
executive role which precluded him from continuing as a Director of the Company. Tom made a significant
contribution since joining the Board in 2021 and we shall miss his considerable investment knowledge and
experience in global equity markets. I am delighted that Richard Robinson joined the Board with effect
from 3 May 2024. Richard has been the Investment Director of the Paul Hamlyn Foundation since 2009
and was previously Head of Charities & Foundations at Schroders plc. He has held a number of senior
positions at Rothschild Asset Management and is a former director of JPMorgan Global Emerging Markets
Income Trust plc and Aurora Investment Trust plc.

OUTLOOK
While the fundamental backdrop is constructive and US recession has been avoided, global equity
markets, dominated by the US, continue to trade at historically elevated valuation levels. Strong growth in
earnings has propelled most of the so-called “Magnificent Seven” group of stocks to new highs but
elevated valuations and market concentration remain a concern, with optimistic earnings expectations
presenting an additional challenge if investment in AI fails to translate to sustained growth in earnings.
Politics will remain an area of focus for investors in 2024 and, while a Labour government with a significant
majority may present a more stable backdrop for UK assets, the US and Europe face a period of political
uncertainty in the months ahead. This, in conjunction with signs of moderating US growth after a strong
period, presents some near-term risk for equity markets.

There remain grounds for optimism, however, including for international equities that have struggled to
beat the technology-heavy US market for many years and which potentially stand to benefit from a
broadening out of the equity rally. Improving economic prospects and earlier interest rate cuts may provide
a near-term tailwind for European and UK equities, while corporate governance reform means that Japan
continues to look attractive from a longer-term structural perspective.

In addition, there are now signs of progress (in terms of valuation uplifts and increased pace in realisation
of investments) in the private equity sector, helped by a pickup in merger and acquisition activity, which
should provide further support. Against this background your Manager will continue to adopt a diversified
approach and remains focused on longer-term opportunities as they emerge.

Beatrice Hollond
Chairman
31 July 2024

FUND MANAGER’S REVIEW

Equity markets have had an excellent start to 2024, building upon their strong returns delivered in late
2023. A number of the ‘Magnificent Seven’ (comprising Alphabet +31.8%, Microsoft +20.4%, Amazon
+28.4%, Apple +10.7%, Nvidia +151.9%, Meta +44.1% and Tesla -20.4%), all of which we hold in our
portfolio, were again stand out performers despite rich valuations, still high interest rates and signs of
fading US economic exceptionalism. Outside of the US, key market indices in Japan, Europe and the UK
climbed to new record highs as the rally broadened and global economic activity recovered. Emerging
Markets were the notable laggard as the Chinese economic recovery continued to disappoint.

The first half of the year also served to remind investors that geopolitical events continue to present risks
to the relatively benign backdrop. Globally, more voters than ever will head to the polls this year and rising
geopolitical tensions, notably in the Middle East, led commodity prices higher over the period. US elections
are likely to be a focal point for investors later this year.

Contributors to total returns in first half of 2024 %
Portfolio return 12.2
Management fees (0.2)
Interest and other expenses (0.2)
Buybacks 0.2
Change in value of debt 0.4
Gearing/other 0.8
Net asset value total return* 13.2
Change in share price discount (6.8)
Share price total return 6.4
FTSE All-World total return 12.0
*Debt at market value
Source: Columbia Threadneedle/State Street

Concerns around inflation resurfaced and pushed government bond yields higher during the first half of
2024. Indeed, market expectations for interest rate cuts have been pushed out significantly since the end
of last year, reflecting a view that rates will need to be kept higher for longer following a series of upside
surprises to US inflation this year. Outside of the US, powerful disinflationary forces continue to supress
prices, prompting the first interest rate cut from the European Central Bank in early June. However, the
more hawkish outlook for US monetary policy has done little to dampen positive equity market sentiment,
with developed markets rising strongly in the first six months of the year.

With higher US yields over the period, sterling weakened modestly versus the US dollar from 1.27 to 1.26,
while the yen dropped to lows last seen in 1986, having depreciated by 12.3% versus the US Dollar year-
to-date despite market intervention by the Japanese authorities.

Concentration of stocks within the S&P 500 has surged to the highest level since the turn of the century,
with the Magnificent Seven now accounting for over 30% of the index. However, recently, performance
within the group has been more mixed. Those most geared towards the AI theme, including Nvidia and
Meta, have enjoyed the strongest performance year-to-date, whilst those most exposed to China, namely
Apple and Tesla, have suffered due to burgeoning local competition and weak domestic demand resulting
from China’s sluggish economic recovery and ongoing property crisis.

The Company maintains significant exposure to the AI theme via positions in stocks such as Broadcom
(+46.1%), Vertiv Holdings (+81.9%) and Qualcomm (+40.2%) and we delivered relative outperformance
on our listed holdings despite underweight positions in many of the US stocks which drove the first half
rally.

Our US large cap growth strategy produced excellent performance over the period, delivering a return of
+25.7% versus the Russell 1000 Growth Index return of +21.9%. Eli Lilly (+57.2%) contributed strongly to
relative returns as weight loss drugs Mounjaro and Zepbound continued to boost revenue and profits. The
strategy’s sizable underweight to Apple was also additive, given strong US market performance, following
growing scrutiny from European competition authorities and intensifying competition from local rivals in
China. Meta was another strong contributor, as the company delivered better than expected results for
the first quarter.

Within our US holdings the backdrop remained more challenging for lowly rated value stocks over the
period. While Barrow Hanley (+10.9%) and Columbia Threadneedle (+9.8%) each generated returns
which exceeded value indices, they lagged the broader market. Our long-standing US value manager
Barrow Hanley generated good outperformance versus the value index (with the Russell 1000 Value Index
gaining 7.6%), with positions in Vertiv Holdings and Broadcom each benefitting from continued bullish
sentiment surrounding AI stocks and positive financial results. Vertiv - a leading supplier of cooling
equipment, power solutions and technology to data centers - has gained by over 250% in the past year in
response to a surge in spending on the digital infrastructure necessary to support AI applications. The
Company’s US value mandate managed by Columbia Threadneedle Investments also delivered
outperformance against the value index, with Qualcomm – a global leader in the development of
semiconductors and wireless chips – performing strongly. It gained 40.3% over the first half.

Performance across our global strategies was mixed versus global comparators. Global Focus (+18.6%)
outperformed market indices, with Nvidia being a strong contributor to relative performance. Indeed,
Nvidia’s revenues were up by 262% year-on year in May, driven by huge growth in the demand for chips
manufactured specifically for the AI industry. The strategy also benefitted from lesser known companies
geared towards the AI theme, with potentially more attractive valuations, such as Applied Materials
(+54.6%), the largest US maker of chip-making machinery. Global Income (+10.3%) and Global Enhanced
(+10.8%), both of which have a focus on companies with an attractive dividend yield, performed broadly
in-line with the global benchmark, while Global Value, managed by Pyrford (+7.2%), disappointed. Here,
under-exposure to the Magnificent Seven group of stocks, notably Nvidia, Meta and Microsoft, and the US
market more broadly, detracted significantly. This negative impact more than offset the positive effects on
holdings in stocks such as KLA Corp (+43.6%) and American Express (+25.4%).

Our European (including the UK) exposure (+10.4%) was ahead of benchmark (which returned +6.5%).
Novo Nordisk (+41.9%) – our largest European holding in the strategy - emerged as one of the standout
performers among European mega cap stocks in the first half of this year, with excess returns attributed
to triple digit revenue growth from its weight-loss drug Wegovy in 2023. Our position in Ryanair (-15.4%)
detracted, as stocks in European airlines slumped after ticket fare prices rose less than previously forecast.
Despite reporting a 34% rise in full-year profit after tax, delayed Boeing aeroplane deliveries sent Ryanair’s
shares lower. Elsewhere, our Japanese holdings (+5.6%) produced returns in-line with the local
benchmark but behind the global index. In local currency terms, this region was amongst the strongest
performing areas globally during the first half, with the Nikkei up 19.3% year-to-date. However, weakness
in the yen, which declined by 11.7% relative to sterling, detracted from returns here. Disco Corp (+54.9%),
the Japanese precision tools maker for the semiconductor industry, was one of the strongest performing
holdings, while holdings in Tokio Marine (+52.4%) and NGK Spark Plug (+25.3%) also performed strongly.
Nonetheless, several holdings such as PAL Group (-33.5%) and Matsumotokiyoshi Holdings (-22.0%)
disappointed over the six month period.

Our emerging markets strategy (+4.6%) performed poorly over the period, lagging the emerging markets
index due to weak performance delivery across a small number of holdings. While there were strong
returns from Indian holdings such as Biocon (+41.5%), India’s largest biopharmaceutical company, and
Max Healthcare (+37.9%), the private hospital chain, gains were offset against weak performance from
larger positions in AIA Group (-19.9%) and Jeronimo Martins (-19.9%).

Our private equity exposure (+6.0%) lagged listed markets but showed positive incremental progress
despite persistently higher borrowing costs and a weak, albeit improving, environment for exits. This
modest performance from our unlisted portfolio detracted from our returns relative to our benchmark over
the period, with the Company’s listed portfolio, in aggregate, delivering solid outperformance versus the
broad market benchmark for the year thus far. As noted previously, our private equity investments are
long-term in nature and we have, historically, enjoyed robust returns from our private equity holdings
compared to listed market equivalents. Furthermore, our holdings in this area are, as with the rest of our
portfolio, highly diversified across a range of regions and sectors.

Our recent private equity commitments with Columbia Threadneedle Investments, where we hold 7.7% of
the total portfolio assets, rose in value by 3.6%, while our older holdings overseen by Pantheon and
HarbourVest rose by 7.1% following a pick-up in distributions. The two Pantheon Future Growth
programmes, with a combined $360m of commitments, also rose in value, by 10.4%.

A further rise in market interest rates led to another reduction in the fair value of our debt over the period.
The ten-year gilt yield rose from just more than 3.5% at the start of the year to just under 4.2% by the end
of June. The rise in market yields added 0.4% to our NAV return over the six months. Furthermore, strong
market performance meant gearing was additive, contributing 0.8%.

CURRENT MARKET PERSPECTIVE

Recent equity market performance has been robust – inflation is trending lower, cuts in interest rates are
on the horizon, growth has been more resilient than expected and earnings have surpassed expectations.
Market pricing now assigns a low probability to a recession and the industry consensus expects a healthy
growth in earnings for the S&P 500 in 2024. However, with the ten largest stocks in the S&P 500 now
accounting for more than 35% of the market’s total capitalisation, and almost 30% of its net income, equity
markets are vulnerable to slowing momentum in this segment of the market. It is notable that the major
winners of the broader AI theme, at least so far, are the infrastructure vendors, or ‘enablers.’ This includes
cloud platform providers like Google, Microsoft and Amazon and graphics processing unit (GPU)
producers like Nvidia and others. AI is still at an early stage of adoption overall and, while in the longer
term there are likely to be significant benefits, most companies today lack the foundational building blocks
that enable AI to generate value and productivity gains at scale. Moreover, signs of a weaker US
consumer, including a sharp drop in home sales and an uptick in consumer delinquencies, and a
potentially highly consequential US presidential election in November, present additional near-term risks
for equity markets. Furthermore, if a ‘soft’ landing has been achieved with interest rates at current levels,
then markets will need to reassess what constitutes a ‘normal’ policy rate going forward, which may well
be significantly higher than the pre-Covid period.

Looking forward, while a significant amount of positive news is already priced-in for equities, the Company
is well positioned to benefit from a broadening of the rally driven by improving economic momentum
outside of the US. Our balanced approach within our portfolio across recognised styles, including value,
growth/quality and momentum, provides our shareholders with a well-diversified, global equity investment
portfolio that places the Company in an excellent position to deliver on our performance objectives in the
future.

Paul Niven
Fund Manager
31 July 2024

Weightings, stock selection and performance in each investment portfolio strategy
and underlying geographic exposure versus index as at 30 June 2024
Investment
portfolio
strategy

Our portfolio
strategy
weighting
%
Underlying
geographic
exposure
(1)

%
Benchmark
weighting
%
Our strategy
performance in
sterling

six months to
30 June 2024
%
Index
performance in
sterling

six months to
30 June 2024
%

North America 41.2 63.2 65.3 17.1 15.1

Europe inc. UK 8.4 19.2 15.0 10.4 6.5

Japan 5.1 6.2 5.9 5.6 6.2

Emerging
Markets 5.4 7.9 9.9 4.6 9.1

Developed
Pacific - 3.5 3.9 - 1.1

Global
Strategies
(2)
29.3 - - 11.7 12.0

Private Equity
(3)
10.6 - - 6.0 -
Source: Columbia Threadneedle/State Street
(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 Value, Global Sustainable Opportunities and latterly
Global Focus.
(3)
Includes the holdings in Schiehallion and Syncona.

UNAUDITED CONDENSED INCOME STATEMENT



Half year ended 30 June
2024
Half year ended 30 June 2023
Notes

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

Gains on investments and
derivatives
- 611,228 611,228 - 176,352 176,352
Exchange (losses)/gains (322) 1,174 852 (506) (4,797) (5,303)
3 Income 64,061 - 64,061 58,420 - 58,420
4 Fees and other expenses (5,682) (6,768) (12,450) (5,086) (6,287) (11,373)

Net return before finance
costs and taxation
58,057 605,634 663,691 52,828 165,268 218,096
4
Interest payable and similar
charges
(1,710) (5,131) (6,841) (1,702) (5,106) (6,808)

Net return on ordinary
activities before taxation
56,347
600,503 656,850
51,126
160,162 211,288
5 Taxation on ordinary activities
(7,704) (460) (8,164) (6,116) (543) (6,659)
6
Net return attributable to
shareholders
48,643
600,043 648,686
45,010
159,619 204,629
6
Net return per share - basic
(pence)

9.64

118.85

128.49

8.69

30.80

39.49


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 redemptio
n
Capital Revenue shareholder
s’
capital reserve reserves reserve funds
Notes
Half year ended 30 June 2024 £’000s £’000s £’000s £’000s £’000s
Balance brought forward
31 December 2023
140,45
5 122,307
4,664,43
8 107,287 5,034,487
Movements during the half year
ended 30 June 2024

11 Shares repurchased by the
Company and held in treasury

-

-

(101,160)

-

(101,160)
7 Dividends paid - - - (58,010) (58,010)
Return attributable to
shareholders
- - 600,043 48,643 648,686
Balance carried forward
30 June 2024
140,45
5 122,307
5,136,32
1 97,920 5,524,003


Capital Total
Share redemptio
n
Capital Revenue shareholders’
capital reserve reserves reserve funds
Notes
Half year ended 30 June 2023 £’000s £’000s £’000s £’000s £’000s
Balance brought forward
31 December 2022
Movements during the half
year ended 30 June 2023

140,455

122,307

4,289,599

97,464

4,649,825
Shares repurchased by the
Company and held in treasury

-

-

(13,213)

-

(13,213)
7 Dividends paid - - - (54,382) (54,382)
Return attributable to
shareholders
- - 159,619 45,010 204,629
Balance carried forward
30 June 2023 140,455 122,307 4,436,005 88,092 4,786,859





Notes



Year ended 31 December 2023

Share
capital
£’000s
Capital
redemptio
n reserve
£’000s

Capital
reserves
£’000s

Revenue
reserve
£’000s
Total
shareholder
s’ funds
£’000s
Balance brought forward
31 December 2022

140,455

122,307

4,289,599

97,464

4,649,825
Movements during the year
ended 31 December 2023
Shares repurchased by the
Company and held in treasury - - (76,345) - (76,345)
7
Dividends paid - - - (71,837) (71,837)
Return attributable to
shareholders - - 451,184 81,660 532,844
Balance carried forward
31 December 2023 140,455 122,307 4,664,438 107,287 5,034,487

UNAUDITED CONDENSED BALANCE SHEET

Notes

30 June 2024
£’000s

30 June
2023
£’000s
31 December
2023
£’000s
Fixed assets
8 Investments 5,995,998 5,092,930 5,451,521
Current assets
8 Investments - 98,332 79,357
Debtors 58,643 22,246 11,244
14 Cash and cash equivalents 109,274 208,493 87,170
Total current assets 167,917 329,071 177,771
Creditors: amounts falling due within
one year
10 Other (59,728) (54,525) (13,836)
Total current liabilities (59,728) (54,525) (13,836)
Net current assets 108,189 274,546 163,935
Total assets less current liabilities 6,104,187 5,367,476 5,615,456
Creditors: amounts falling due after
more than one year
9, 14 Loans (579,609) (580,042) (580,394)
9, 14 Debenture (575) (575) (575)
(580,184) (580,617) (580,969)
Net assets 5,524,003 4,786,859 5,034,487

Capital and reserves
11 Share capital 140,455 140,455 140,455
Capital redemption reserve 122,307 122,307 122,307
Capital reserves 5,163,321 4,436,005 4,664,438
Revenue reserve 97,920 88,092 107,287
12 Total shareholders’ funds 5,524,003 4,786,859 5,034,487
12 Net asset value per ordinary share
– prior charges at nominal value
(pence) 1,105.66 926.04 987.56

UNAUDITED CONDENSED STATEMENT OF CASH FLOWS




Half year
ended
30 June
2024
Half year
ended
30 June
2023

Year ended
31
December
2023
Note
s
£’000s £’000s £’000s
13 Cash flows from operating activities
before dividends received and interest
paid (17,350) (15,031) (25,774)
Dividends received 59,825 54,895 98,937
Interest paid (6,866) (6,832) (13,842)
Cash flows from operating activities 35,609 33,032 59,321
Investing activities
Purchases of Investments (1,541,642) (2,226,716) (4,224,563)
Sales of Investments 1,666,308 2,212,566 4,155,297
Other capital charges and credits (41) (21) (63)
Cash flows from investing activities 124,625 (14,171) (69,329)
Cash flows before financing activities 160,234 18,861 (10,008)
Financing activities
Equity dividends paid (40,007) (36,807) (71,837)
Cash flows from share buybacks for
treasury shares (98,190) (11,280) (73,645)
Cash flows from financing activities (138,197) (48,087) (145,482)
14 Net increase/(decrease) in cash and cash
equivalents 22,037 (29,226) (155,490)
Cash and cash equivalents at the
beginning of the period 87,170 243,836 243,836
14 Effect of movement in foreign exchange 67 (6,117) (1,176)
Cash and cash equivalents at the end
of the
period 109,274 208,493 87,170



Represented by:

Cash at bank 86,095 108,453 39,827
Short term deposits 23,179 100,040 47,343
Cash and cash equivalents at the end
of the
period 109,274 208,493 87,170

UNAUDITED NOTES ON THE CONDENSED ACCOUNTS

1 RESULTS
The results for the six months to 30 June 2024 and 30 June 2023 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 2023; 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 2023 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 Statement of Recommended
Practice ‘Financial Statements of Investment Trust Companies and Venture Capital Trusts’ (SORP),
issued in July 2022.

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 2023.

(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 and further information on Board
procedures is contained in the Report of the Audit Committee and note 25(d) of the Report and Accounts
as at 31 December 2023. The choice to use the March quarter end valuations and apply a roll forward
process to incorporate any known transactions and material events is a judgement made each year for
the indirect investments. The valuations as at 30 June are not generally available before approval of the
half year report. Material judgements were applied to the valuation of the Company’s direct investment,
Inflexion Strategic Partners. This investment was valued using an earnings method multiplied by an
average of European listed comparable companies 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 10.1% of total investments at 30 June 2024. Under
foreseeable market conditions the collective value of such investments may rise or fall in the short term
by more than 10%, in the opinion of the Directors. A fall of 10% in the value of the unlisted (Level 3)
portfolio at the half year would equate to £60m or 1.1% of net assets and a similar percentage rise would
equate to a similar increase in net assets.

3 INCOME



Half year ended
30 June 2024
£’000s
Half year ended
30 June 2023
£’000s
Income comprises:
UK dividends 4,340 3,992
UK bond income 1,205 566
Overseas dividends 57,673 51,066
Interest on short-term deposits and other
income 843 2,796
Income 64,061 58,420

Included within income is £1.2m (30 June 2023: £2.2m; 31 December 2023: £4.4m) of special dividends
classified as revenue in nature.
The value of special dividends treated as capital in nature is £0.2m (30 June 2023: £0.0m; 31 December
2023: £0.1m).

4 FEES AND OTHER EXPENSES AND INTEREST PAYABLE



Half year ended
30 June 2024
£’000s
Half year ended
30 June 2023
£’000s
Fees and other expenses 12,450 11,373
Interest payable and similar charges 6,841 6,808
Total 19,291 18,181

Fees and other expenses comprise:
Allocated to Revenue Account

- Management fees payable directly to the
Manager*
2,242 2,085
- Other expenses 3,440 3,001
5,682 5,086
Allocated to Capital Account
- Management fees payable directly to the
Manager*
6,725 6,256
- Other expenses 43 31
6,768 6,287
Interest payable and similar charges
comprise:

Allocated to Revenue Account 1,710 1,702
Allocated to Capital Account 5,131 5,106
* Including reimbursement in respect of services provided by sub-managers

The Manager’s remuneration is based on a fee of 0.30% per annum of the market capitalisation of the
Company up to £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 2023. 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 £8,164,000 (30 June 2023: £6,659,000) 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
2024
pence
Half year
ended
30 June
2024
£’000s
Half year
ended
30 June
2023
pence
Half year
ended
30 June
2023
£’000s
Revenue return 9.64 48,643 8.69 45,010
Capital return 118.85 600,043 30.80 159,619
Total return 128.49 648,686 39.49 204,629
Weighted average ordinary shares in
issue excluding treasury shares (see
note 11) 504,853,464 518,236,585

7 DIVIDENDS



Dividends paid and
payable on ordinary shares




Register date




Payment date
Half
year
ended
30 June
2024
£’000s
Half
year
ended

30 June
2023
£’000s
Year
ended 31
December
2023
£’000s
2022 Third interim of 3.20p 6-Jan-2023 1-Feb-2023 – 16,589 16,589
2022 Final of 3.90p 11-Apr-2023 11-May-2023 – 20,218 20,214
2023 First interim of 3.40p 30-Jun-2023 1-Aug-2023 – 17,575 17,581
2023 Second interim of
3.40p
6-Oct-2023 1-Nov-2023
– – 17,453
2023 Third interim of 3.40p 4-Jan-2024 1-Feb-2024 17,325 – –
2023 Final of 4.50p 12-Apr-2024 9-May-2024 22,682 – –
2024 First interim of 3.60p 28-Jun-2024 1-Aug-2024 18,003 – –
58,010 54,382 68,983

The Directors have declared a first interim dividend in respect of the year ending 31 December 2024 of
3.60p per share, payable on 1 August 2024 to all shareholders on the register at close of business on 28
June 2024. The amount of this dividend will be £18,003,000 based on 500,098,015 shares in issue at 27
June 2024. This amount has been accrued in the results for the half-year ended 30 June 2024 as the
ex-dividend date was 27 June 2024.

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. These also include gilts of £nil as at 30 June 2024
(30 June 2023: £98m and 31 December 2023: £80m).

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:


30 June 2024
£’000s

30 June 2023
£’000s

31 December 2023
£’000s
Level 1 5,392,972 4,600,698 4,936,568
Level 3 603,026 590,564 594,310
Total valuation of
investments 5,995,998 5,191,262

5,530,878

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 2024, 30 June 2023 or 31 December 2023 were valued in accordance
with level 2.

9 LOANS AND DEBENTURE


30 June
2024
£’000s


30 June
2023
£’000s

31 December
2023
£’000s
Loans falling due after more than one year 579,609 580,042 580,394
Debenture falling due after more than one year 575 575 575

Comprising:

Sterling denominated loan, falling due after more
one year £544m £544m £544m
Euro denominated loan, falling due after more than
one year €42m €42m €42m
4.25% perpetual debenture stock £0.575m £0.575m £0.575m

10 OTHER CREDITORS FALLING DUE WITHIN ONE YEAR
30 June 2024
£’000s
30 June 2023
£’000s
31 December
2023
£’000s
Cost of ordinary shares repurchased 5,670 1,933 2,700
Investment creditors 27,665 30,766 3,670
Management fee payable to the
Manager
3,748 1,958 2,625
Provision for Capital Gains Taxation
on Indian Investments

1,933

-

2,258
Dividend payable 18,003 17,575 -
Other accrued expenses 2,709 2,293 2,583
59,728 54,525 13,836

11 SHARE CAPITAL




Equity share capital

Number
of shares
held in
treasury

Number of
shares
entitled to
dividend

Total
number of
shares in
issue
Nominal
value of
shares in
issue
£’000s
Ordinary shares of 25p each
Balance at 31 December 2023 52,025,962 509,793,054 561,819,016 140,455
Shares repurchased by the Company
and held in treasury 10,180,039 (10,180,039) - -
Balance at 30 June 2024 62,206,001 499,613,015 561,819,016 140,455

10,180,039 shares were repurchased during the period at a cost of £101,160,000. 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 2024
30 June
2023 31 December 2023

Net asset value per share -pence

1,105.66

926.04

987.56
Net assets attributable at end of period - £’000s 5,524,003 4,786,859 5,034,487
Ordinary shares of 25p in issue at end of period
excluding shares held in treasury - number 499,613,015 516,919,027

509,793,054

Net asset value per share (with the debenture stock and long-term loans at market value) at 30 June 2024
was 1,145.47p (30 June 2023: 964.73p and 31 December 2023: 1,022.07p). The market value of
debenture stocks at 30 June 2024 was £429,000 (30 June 2023 and 31 December 2023: £429,000). The
market value of the long-term loans at 30 June 2024 was £380,845,000 (30 June 2023: £380,170,000
and 31 December 2023: £404,572,000) 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
2024
£’000s
Half year
ended
30 June
2023
£’000s

Year ended
31 December
2023
£’000s
Net return on ordinary activities before taxation 656,850 211,288 547,029
Adjust for non-cash flow items, dividend income
and interest expense:
Gains on investments (611,228) (176,352) (477,671)
Exchange (gains)/losses (852) 5,303 1,043
Non-operating expense of a capital nature 43 31 68
Decrease in other debtors 129 24 81
Increase in creditors 1,268 28 964
Dividends receivable (62,013) (55,058) (98,524)
Interest payable 6,841 6,808 13,841
Tax on overseas income and Indian Capital
Gains Tax
(8,388) (7,103) (12,605)
(674,200) (226,319) (572,603)
Cash flows from operating activities (before
dividends received and interest paid)

(17,350)

(15,031)

(25,774)

14 ANALYSIS OF CHANGES IN NET DEBT


Cash
£’000s


Long term loans
£’000s


Debenture
£’000s


Total
£’000s

Opening net debt as at 31 December
2023 87,170

(580,394)
(575) (493,799)

Cash-flows:
Net movement in cash and cash
equivalents

22,037

-

-

22,037

Non-cash:
Effect of foreign exchange movements
67

785
- 852

Closing net debt as at 30 June 2024 109,274 (579,609) (575) (470,910)

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

The Company’s principal and emerging risks are described in detail under the heading ‘Principal and
Emerging Risks’ within the Strategic Report in the Company’s annual report for the year ended 31
December 2023. They have been identified as: Investment Performance; Effectiveness of Appointed
Manager; Cyber Threats and Data Protections; Loss of Key Person; and Transition to Net Zero.

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.

DIRECTORS’ STATEMENT OF RESPONSIBILITIES IN RESPECT OF THE HALF YEAR
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 year 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 shown above is a fair review of the principal and
emerging risks for the remainder of the financial year; and

• the half year 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
31 July 2024


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,
Cannon Place, 78 Cannon Street, London EC4N 6AG.

Columbia Threadneedle Investment Business Limited