F&C has made a number of changes to Jeremy Tigue’s £2.4bn Foreign & Colonial investment trust, including a new benchmark and the creation of two sub-portfolios.
The asset manager says the moves are designed to let the trust exploit new investment opportunities, increase global exposure and diversify its sources of income.
The trust was previously benchmarked against a composite of 40 per cent FTSE All Share and 60 per cent FTSE World ex UK. From 1 January it is benchmarked against the FTSE All World Index to “better reflect the global nature of the company’s overall investment portfolio”.
A new global income sub-portfolio has been created, valued at £150m and made up of 200 stocks, with a dividend yield of 4.7 per cent.
Ten of the trust’s existing holdings have been moved into a global funds sub-portfolio, which is valued at £110m. It will be used to invest in specialist areas across the globe.
F&C chairman Simon Fraser says: “These changes will ensure we continue to deliver growth in income and capital.”