The board of F&C investment trust is recommending a four-for-one share split at its upcoming annual general meeting to make shares more affordable and improve liquidity following two decades of strong increases, it announced in the trust’s annual results.
At the end of 2025, the share price stood at £12.52, up from £2.58 in 2005 and £4.49 a decade ago.
Chair Beatrice Hollond said: “Strong performance in our share price over many years has led to a high share price in absolute terms and the board has received feedback from shareholders that a share split would be welcomed.”
If passed, shareholders will be issued four shares for each share that they currently hold. This should benefit shareholders who invest monthly or elect to re-invest their dividends, she said.
F&C Investment Trust will also increase its dividends for a 55th consecutive year after beating its benchmark in 2025, continuing its rich dividend history.
A final payment of 5.2p will be paid on 6 May, taking the total for the year to 16.6p, a 6.4% increase on last year and ahead of inflation. Dividend reserves cover the total payment, Hollond noted.
Managed by Paul Niven, the world’s oldest investment trust produced a share price total return of 14.6% last year versus the FTSE All World’s 14.2%, although its net asset value (NAV) returns were slightly below (11.6%).
Total return of trust vs sector and benchmark in 2025
Source: FE Analytics
Chair Beatrice Hollond said 2025 was a “good year for shareholder returns” but noted there were some areas that underperformed, including some of the trust’s European and US holdings.
The private-equity portfolio also trailed the benchmark in 2025. While the asset class has provided “extraordinary” returns since the global financial crisis, the chair noted that volatility and periods of poor performance are to be expected, particularly with valuations in some areas “unforgiving”.
Overall, Hollond said the trust performed well despite geopolitical events and policy shifts creating periods of volatility, with market leadership widening across regions and sectors and a broader set of companies contributing to overall gains.
She noted that 2026 has already started with “significant volatility, driven by developments in US trade policy, where the Supreme Court has overturned the ‘Liberation Day’ tariffs, and from the oil price shock which has resulted from the US and Israeli war with Iran”.
“We expect volatility to remain a feature of markets during 2026,” she added.
Diversification will therefore be needed, she said, as the global environment is undergoing a period of significant transition, with shifts in geopolitical relationships, supply chain structures and economic policy frameworks all reshaping markets.
“At the same time, the long-standing dominance of the US equity market – powered by a remarkable group of highly profitable, capital-light technology companies – is evolving, she added.
“While it is too early to call an end to US or technology leadership, despite near-term stress in global equity markets, the balance of drivers is changing and we see a more diverse set of opportunities emerging across global markets.”
Some of this is due to the AI investment cycle, which is characterised by “extraordinary levels of capital expenditure” as companies and countries race to build out infrastructure and energy capabilities.
While optimism is “justified”, she warned that overspending and “pockets of unprofitable activity” mean returns could vary wildly depending on stock selection.
“This increasing differentiation between winners and losers – both among those developing AI technologies and those deploying them – reinforces the importance of disciplined stock selection and broad diversification,” she said.
Hollond also announced she will seek re-election at the AGM but will step down later this year, having served on the trust’s board for nine years. A review is underway to appoint her successor.