F&C Investment Trust gives investors a broad portfolio base, spreading exposure across markets to reduce risk and seek growth beyond any single uncertain market.
Creating a portfolio that can withstand today's financial conditions is not easy. Recent stock-market swings have brought an old investing lesson back into focus: genuine diversification matters.
Many investors moved into broad global index funds, assuming they would spread risk automatically. That assumption now deserves a closer look: US stocks represent more than 72% of the MSCI All Country World Index1, while a small group of technology giants accounts for nearly one-third of the benchmark's total value.
Many portfolios marketed as global are, in practice, heavily exposed to one sector in one country. That is concentration, not real diversification.
Investors seeking protection from sudden market moves need a more balanced base. F&C Investment Trust could provide that missing piece.
Diversification
Since its founding in 1868, diversification has shaped F&C's investment approach. The trust was the world's first collective investment scheme. For more than 150 years, it has weathered economic cycles, two world wars, and financial crises while pursuing its mandate of steady capital growth and income.
Fund Manager Paul Niven, who has run the trust since 2014, takes a deliberate, active approach to managing risk at F&C. As he puts it: "Diversification isn't just an investing principle - it's a risk management tool. And in times like these, that matters more than ever."
Academic research finds that, over long periods, about half of all listed stocks fail to beat cash. Since 1926, only the top 4% of US-listed companies have generated the market's entire net wealth creation. Meanwhile, roughly 57% of individual stocks - four out of seven - have produced lifetime buy-and-hold returns below the interest earned on short-term US bonds.2
F&C's strategy is designed to improve its chances of backing tomorrow's successful companies. Its investments span the US, Europe, and emerging markets, giving investors access to growth beyond any one country and reducing their exposure to a single political or economic setting.
Diversification here goes beyond spreading investments across countries. Rather than committing to a single style, such as growth, value, or quality, F&C combines all three under Paul Nivens direction. It invests in innovative companies, established businesses priced below their intrinsic worth, and financially strong firms with solid balance sheets. That mix gives the portfolio a better chance of holding up through different stages of the economic cycle.
Beyond public markets
F&C Investment Trust also stands apart through its deliberate investment in private equity. High-growth companies with new ideas are staying private for longer, which means much of the wealth created by businesses now accumulates away from public markets and remains difficult for individual investors to access.
F&C plans to place 5% to 15% of its portfolio in private equity, giving investors limited exposure to fast-growing unlisted companies while adding holdings that face less day-to-day market volatility.
Dividend record
F&C belongs to the FTSE 100 index and manages over 7 billion in assets. With one holding, investors gain access to a broadly diversified global portfolio. The trust is also recognised by the Association of Investment Companies (AIC) as a Dividend Hero, having raised its annual dividend payout for 55 consecutive years.
For an ISA, a SIPP, or a General Investment Account, F&C Investment Trust provides a straightforward, globally diversified foundation built for long-term growth.
For details about F&C Investment Trust and the ways it may fit your portfolio, visit fandc.com.
Capital at risk.
ISA eligibility and tax treatment depend on your individual circumstances. Tax rules may change in the future.
There is no guarantee that dividends will continue to increase.
Issued by Columbia Threadneedle Management Limited, registered in England and Wales under No. 517895 and authorised and regulated in the UK by the Financial Conduct Authority. Approved by Columbia Threadneedle Management Ltd. in September 2026.
1 Bessembinder, Hendrik (2018), "Do Stocks Outperform Treasury Bills?", Journal of Financial Economics, 129(3), pp. 440457.
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