F&C Capital and Income continues record of outperformance – F&C Capital and Income announces, for the year ended 30 September 2017:
- Share price total return for the year was 15.8%, with an average premium to Net Asset Value of 1.6%.
- Total ordinary dividends of 10.65 pence per share – an increase of 3.4% over the previous year and the 24(th) consecutive annual increase.
- Net Asset Value total return for the year was 16.6%, outperforming the benchmark All-Share Index return of 11.9%.
Steve Bates, the chairman, said “An investor would probably be unwise to rely on the results of any given year as this can lead to a bumpy ride. To this end, we spend time focusing on longer term numbers and I am very pleased to say that these too are excellent. Over three years the Net Asset Value per share total return was 40.9%, with the benchmark up 27.8%; over five years it was 72.7% vs. 61.2%; over 10 years the return was 82.7% vs 75.2%; and over 20 years, it was 265.6% vs 216.3%.”
There is no manager’s statement from Julian Cane in the announcement which is disappointing. however the chairman’s statement does make reference to the drivers of returns for the portfolio: “The biggest positive contributors to performance were in the Financial Services sector, especially OneSavings Bank (+64%), Intermediate Capital (+64%) and Arrow Global (+49%). All have strong niche operations, high returns and good growth. They are preferred to the larger “me-too” financials, which may have higher yields, but less attractive long-term prospects.
The biggest detractors from performance were our underweight positions in some of the largest sectors – Banks, Mining and Oil & Gas Producers. Stock selection within these sectors was in line with the sector performance, but the relative lack of exposure had costs in relative terms because of their strong performance (Banks +29%, Mining +40%, Oil & Gas Producers +19%).”
FCI : F&C Capital and Income continues record of outperformance