The Trust aims to deliver an attractive return in the form of dividends and/or capital returns, together with the potential for capital growth. The portfolio is managed in two parts, an equities portfolio and a higher yield portfolio. The equities portfolio represents the majority of the Trust's assets and is invested in UK large and mid-sized companies while the higher yield portfolio is currently invested in predominantly investment grade corporate bonds.

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Key points

Investors Capital aims to provide shareholders with an attractive level of income together with the opportunity for capital growth. The majority of the Company's assets are invested in an equities portfolio comprising large and mid size UK companies.

The Company has two classes of share - A shares and B shares - which pay the same level of quarterly cash distributions. The cash distributions on the A share are paid as dividends while those on the B shares are paid by way of capital distributions and therefore taxed under capital gains tax (CGT) rules which can provide tax benefits to certain types of investors. Each unit consists of three A shares and one B share.

Fund facts
Investment manager F&C Investment Business Limited
Benchmark FTSE All-Share Capped 5% Index
AIC sector UK High Income
Launch date 1 March 2007
Total assets £145.1 million (as at 30.06.14)
Currency Sterling
ISIN (Units) GB00B1N4H933
(A Shares) GB00B1N4G299
(B Shares) GB00B1N4H594
SEDOL (Units) B1N4H93
(A Shares) B1N4G29
(B Shares) B1N4H59
Key dates
Annual general meeting June
Year end 31 March
Dividend payment date(s) February, May, August, November
Ex-dividend date(s) July, October, January and April

Fund manager commentary

The Company’s net asset value total return was -1.4% for the month of June, approximately in line with the FTSE All Share 5% Capped Total Return Index over the same period.

During the month the Board of Investors Capital Trust plc announced a first quarter dividend of 1.11 pence per share on the A shares of the Company. This dividend will be paid on 8 August 2014 to A shareholders on the register on 11 July 2014. A first quarter capital repayment of 1.11 pence per share will be paid on the B shares of the Company on 8 August 2014 to B shareholders on the register on 11 July 2014. Capital repayments on B shares are paid at the same time and in an amount equal to each dividend paid on an A share. This represents an increase of 2.5 per cent over the first quarter dividend capital repayment paid in the prior year. In the absence of unforeseen circumstances, the Company intends to increase each of the remaining three quarterly dividends for the year ended 31 March 2015 by a similar amount.

Following the completion of the sale of its Pharmaceutical Devices and Prescription Retail Packaging divisions, Rexam announced that it would return £450 million in cash to shareholders. This was completed during the month through the payment of a special dividend of 57 pence per share. Rexam is a leading global consumer packaging business and is now focused solely on the manufacture of beverage cans.

Following the rally and re-rating of equity markets, valuation levels now appear less compelling despite strong corporate sector fundamentals. However, against a background of stronger global growth, increasing business confidence and low borrowing costs, we expect the recent upturn in merger and acquisition activity to gather pace and remain supportive for equity markets.

As at 30 June 2014

Percentage growth, total return, bid to bid price with net income reinvested in sterling. Basis in accordance with the regulations of the Financial Conduct Authority. Past performance is not a guide to future performance. Stock market movements may cause the value of investments and the income from them to fall as well as rise and investors may not get back the amount originally invested. A fund investing in a specific country carries a greater risk than a fund diversified across a range of countries. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. If markets fall, gearing can magnify the negative impact on performance. The discrete annual performance table refers to 12 month periods, ending at the date shown.

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