F&C Investment Trust : – Annual Report and Accounts 2024

ANNUAL REPORT

FOR THE YEAR ENDED 31 DECEMBER 2024

CONTENTS

Strategic Report
Company Overview	2
Financial Highlights	3
Chairman's Statement	4
Fund Manager's Review	9
Our Approach to Responsible Investment	18
Twenty Largest Listed Equity Holdings	27
Ten Year Record	29
Business Review	31
Purpose, Values and Investment Objective	31
Principal Policies	33
Section 172 Statement	36
Key Stakeholder and Shareholder Engagement	37
Key Performance Indicators	39
Principal and Emerging Risks	41
Long-Term Viability	45
Governance Report
Board of Directors	47
Directors' Report	49
Corporate Governance Report	54
Report of the Management Engagement Committee	57
Report of the Audit Committee	59
Directors' Remuneration Report	65
Statement of Directors' Responsibilities	69
Independent Auditor's Report	70
Financial Report
Income Statement	78
Statement of Changes in Equity	79
Balance Sheet	80
Statement of Cash Flows	81
Notes to the Accounts	82
Notice of Annual General Meeting	104
Other Information
Management and Advisers	109
Additional Information for Shareholders	110
How to Invest	112
Alternative Performance Measures	113
Glossary of Terms	116

2025-26 Financial Calendar

Annual General Meeting	30 April 2025
Final dividend for 2024 payable	7 May 2025
Interim Results for 2025 announced	end July 2025
First interim dividend for 2025 payable	August 2025
Second interim dividend for 2025 payable	November 2025
Third interim dividend for 2025 payable	February 2026
Final Results for 2025 announced	March 2026
Final dividend for 2025 payable	May 2026

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in any doubt about the action you should take, you are recommended to seek your own independent financial advice from your stockbroker, bank manager, solicitor, accountant or other independent financial adviser authorised under the Financial Services and Markets Act 2000 if you are in the United Kingdom or, if not, from another appropriately authorised financial adviser. If you have sold or otherwise transferred all your ordinary shares in F&C Investment Trust plc please forward this document, together with the accompanying documents, immediately to the purchaser or transferee or to the stockbroker, bank or agent through whom the sale or transfer was effected for transmission to the purchaser or transferee. If you have sold or otherwise transferred only part of your holding of shares, you should retain these documents.

TRUE TO OUR GOAL FOR OVER 150 YEARS

Our focus has never wavered since the day we were founded in 1868. Our approach aims to deliver long- term growth in capital and income. To achieve this, we invest on the world's major and developing stock and private markets in the shares of established companies, strong newcomers and rising stars.

It's a diverse portfolio strategy that also gives investors exposure to a range of well managed private equity funds and co-investments. Whether you're new to investing or looking to add a firm foundation to your existing portfolio, F&C is the smart choice for investors.

COMPANY OVERVIEW

F&C Investment Trust PLC (the 'Company' or 'F&C') was founded in 1868 as the first investment trust with the purpose of providing the investor of more moderate means access to the same opportunities and advantages as the very largest investors.

This purpose continues today, providing a foundation for the long-term investment needs of large and small investors through a diversified, convenient and cost-effective global investment choice.

The Company's objective is to secure long-term growth in capital and income through a policy of investing primarily in an internationally diversified portfolio of publicly listed equities, as well as unlisted securities and private equity, combined with the use of gearing.

Our approach is designed to obtain the investment performance benefits from a range of individually concentrated global and regional portfolios alongside the diversification benefits of lower risk and lower volatility achieved by managing those portfolios in combination. Columbia Threadneedle Investments is a market leading asset manager with strong capabilities in a number of areas. The Company's portfolio is managed by Paul Niven, Columbia Threadneedle Investments' Head

of Multi-Asset Solutions for Europe, the Middle East and Africa. He is responsible for determining the Company's asset allocation and the overall composition of the investment portfolio. By blending the portfolio's exposure to investment strategies managed by Columbia Threadneedle Investments and other leading asset managers, the Company provides a cost-effective exposure to differentiated value-adding sources of return. Offering a globally diversified portfolio of growth assets, the Company aims to be a core investment choice through all available channels.

The Company continues to evolve, allowing it to keep pace with new investment opportunities and maintain its relevance in today's world. A commitment has been made to transition the Company's portfolio to net zero carbon emissions by 2050.

The Company is suitable for retail investors in the UK, professionally advised private clients and institutional investors who seek growth in capital and income from investment in global markets and who understand and are willing to accept the risks, as well as the rewards, of exposure to equities.

VISIT OUR WEBSITE AT fandc.com

The Company is registered in England and Wales with company registration number 12901

Legal Entity Identifier: 213800W6B18ZHTNG7371

DIVIDEND

HERO

FORWARD-LOOKING STATEMENTS

This document may contain forward-looking statements with respect to the financial condition, results of operations and business of the Company. Such statements involve risk and uncertainty because they relate to future events and circumstances that could cause actual results to differ materially from those expressed or implied by forward-looking statements. The forward-looking statements are up to date as at the date of this report and are based on the Directors' current view and on information available to them as at that date. There is no obligation to update the statements and nothing should be construed as a profit forecast.

2

FINANCIAL HIGHLIGHTS

+16.9%	return(1)	+21.0%	(with debt at market value) of
	+16.9% share price total		Net Asset Value total return(1)
			+21.0%, ahead of the return from
			our benchmark(3), the FTSE All-
			World Index, of +19.3%
54th	Annual dividend(2) per share	9.2%	The discount(1) to NAV moved
	up by 6.1% to 15.6p, our 54th		from 5.9% at the start of the
	consecutive annual increase		year, to end the year at 9.2%

DELIVERING LONG-TERM GROWTH IN CAPITAL AND INCOME

In the last ten years the Company has grown a £1,000 investment, with dividends reinvested, to £3,122.

Mid-market price per share at 31 December -	Net asset value(1) per share with debt at market
pence	value at 31 December - pence

Strategic Report

1,200										1,108.0
1,000
800
600
400
200
0	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024

Source: Columbia Threadneedle Investments

1,400										1,219.6
1,200
1,000
800
600
400
200
0	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024

Source: Columbia Threadneedle Investments

A dividend has been paid every year since inception and has increased every year for the past 54 years. Over the last ten years it has increased by 67.7% (5.3% compound per annum), compared with inflation of 35.4% (3.1% compound per annum).

Share price discount/premium(1) to net asset value(1) at 31 December - %

2
0
-2
-4
-6
-8
-10										-9.2
-12	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Source: Columbia Threadneedle Investments

Total dividends(2) per share - pence

18										15.6
16
14
12
10
8
6
4
2
0	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024

Source: Columbia Threadneedle Investments

Potential investors are reminded that the value of investments and the income from dividends may go down as well as up and investors may not receive back the full amount invested. Tax benefits may vary as a result of statutory changes and their value will depend on individual circumstances.

1. See Alternative Performance Measures on page 113.
2. The final dividend for 2024 is subject to shareholder approval at the forthcoming Annual General Meeting.
3. See Glossary of Terms on page 116.

Annual Report and Accounts 2024

3

CHAIRMAN'S STATEMENT

"F&C'S NAV TOTAL RETURN HAS BEATEN THE BENCHMARK AND ITS GLOBAL PEER GROUP OVER ONE, THREE, FIVE AND TEN YEARS. OVER TWENTY YEARS OUR RETURN IS EQUIVALENT TO 10.4% PER ANNUM. THE GROWTH IN OUR DIVIDENDS OVER THE PAST DECADE IS SIGNIFICANTLY HIGHER THAN UK INFLATION."

Dear Shareholder,

2024 was another strong year for global equity markets with US equities rising by more than 25%. This was the first time since the late 1990s that US investors have enjoyed successive annual gains of greater than 20%. As was the case in 2023, the US outperformed both analysts' expectations and other major equity markets. The so- called 'Magnificent Seven' US mega-cap technology stocks delivered returns well in excess of the broader market. Indeed, this collection of exceptional companies, which include Nvidia, Microsoft and Amazon, delivered

a 67% dollar-based gain on the year, pushing the market weight of these companies in the US index to new highs.

US equity market performance was driven by better-than- expected economic data and, as the year progressed, initial fears of recession gave way to robust US growth, while inflation fell to levels which enabled central

banks to begin cutting interest rates. While the scale of resultant interest rate cuts was below initial expectations, the combination of strong earnings growth in the US, declining inflation and interest rates, alongside ongoing optimism over the impact of Artificial Intelligence

('AI') propelled equity markets to new record highs. Furthermore, despite uncertainty over policy, the election of Donald Trump as US President for a second term, with promises of corporate tax cuts and deregulation, gave further impetus to investor risk appetite in the final part of the year.

The picture was more mixed outside of the US. While the global economy avoided a recession over the year, there was reasonable dispersion across regions. Sluggish economic data, along with lower inflation in Europe and

the UK, led to an easing of interest rate policy by the European Central Bank and the Bank of England.

Our Net Asset Value ('NAV') total return, taking debt at market value, of +21.0% outperformed the return from our benchmark index of +19.3%. Our share price and our NAV total returns exceeded those delivered from our closed- end peers in 2024. Indeed, both our returns exceed that of our open and closed-end peers over one, three, five and ten years. This outperformance, over all these periods is unique in our sector. As a diversified global investment trust, designed to provide consistency in terms of performance outcome, it is pleasing to report these strong and consistent returns for shareholders. Furthermore, as our NAV total return has also exceeded that of our market benchmark over one, three, five and ten years, we believe that this is a strong proof statement on the effectiveness of our investment approach.

Although our share price and NAV reached new record highs, in common with many of our peers in the investment trust sector we saw a widening in our share price discount to NAV in 2024. Our discount moved from 5.9% at the start of the year, to end the year at 9.2%. This detracted from shareholder returns, resulting in a share price total return of +16.9%, lower than our NAV total return of +21.0%. Our NAV, with debt at market value, rose from 1,022.1p to 1,219.6p per share and our share price rose from 962p to 1,108p. We bought back 5.3% of our issued share capital, a total of 27.3m shares. We remain committed towards our objective of achieving a sustainably low deviation between our share price and NAV, as well as reducing the volatility of the discount.

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Performance from our underlying listed strategies was strong over the year, with each component of our portfolio delivering a gain in absolute terms. Performance was particularly strong in North America, Japan and from our Global Focus strategy, which has exposure to quality growth stocks. While we were relatively underweight compared to the benchmark index to some of the Magnificent Seven stocks, overall our listed portfolio modestly outperformed its benchmark index. The decision by our Fund Manager to reduce our allocations to emerging markets and Europe in the first half of

2024 served us well as both regions underperformed the broader benchmark over the year. While our private equity portfolio produced respectable absolute returns over the year, performance lagged that of the listed global equity benchmark.

As our investment portfolio has significant investments in US assets the modest decline in sterling (of -1.8%) against the US dollar was beneficial to returns. In a year where markets rose strongly, our gearing added value over the year.

Following our re-admission to the FTSE100 index in 2022, I am pleased to report that we not only maintained this position, but we actually rose within the index, cementing our position as one of the UK's leading listed companies. As noted in our 2023 Annual Report, we have previously been a FTSE100 constituent, but this current period is the longest that we have remained in the index.

LONG-TERM RESULTS

We remain resolutely focused on our investment objective of securing growth in both capital and income for shareholders over the long term. Over the ten years to the end of 2024 your Company delivered a total shareholder return of +212.2%, equivalent to +12.1% per annum. Returns have remained remarkably consistent, with limited losses on an annual basis over the past decade.

Over the twenty year period to 31 December 2024 the Company's NAV return was +627.3%, equivalent to 10.4% per annum. Our capital-only return (i.e. without dividends reinvested) over the past twenty years was +469.7% (9.1% per annum) and our shareholder total return was +751.6% (11.3% per annum). Dividends paid to shareholders have risen by 5.3% per annum over the past decade and by 6.8% over the past twenty years. Such results continue to demonstrate the importance of compounding income and capital gains over the long term, in the process of value creation for shareholders.

Strategic Report

F&C NAV and share price performance vs Benchmark(1) over 10 years

350

300

250

200

150

100

50

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

F&C - Share price total return		F&C - NAV total return
Market Benchmark

Rebased to 100 at 31 December 2014

Source: Columbia Threadneedle Investments & Refinitiv Eikon

F&C annual dividend growth(2) vs Consumer Price Index over 10 years

170

160

150

140

130

120

110

100 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

F&C - annual dividend		Consumer Price index
per share

Rebased to 100 at 31 December 2014

Source: Columbia Threadneedle Investments & Refinitiv Eikon

1. See Glossary of Terms on page 116 for explanation of "benchmark".
2. See Alternative Performance Measures on page 113.

Annual Report and Accounts 2024

5

CHAIRMAN'S STATEMENT (CONTINUED)

FIFTY FOURTH CONSECUTIVE ANNUAL DIVIDEND INCREASE

Our gross and net income generated in 2024 represented a new record high. Gross income rose by 4.9% to £111.8m and our net revenue rose by 3.5% to £84.6m. Special dividends fell slightly to £3.6m (2023: £4.4m). The impact of currency movements reduced our income by £3.4m (2023: -£0.6m). Our Net Revenue Return per share rose by 7.5% on the year to 17.01 pence, from 15.83 pence.

The UK rate of inflation (as measured by CPI) declined during the year, falling from 4% to 2.5%. This represents a significant reduction in inflation from that seen during the inflationary spike post the Covid pandemic and the invasion of Ukraine, but inflation remains above the target of the Bank of England and slightly higher than levels seen in the years before Covid.

It remains the ambition of the Board to deliver real rises in dividends for shareholders over the long term that are sustainable. I am therefore delighted to report another rise in the proposed annual dividend, which will again be fully covered by our revenue earned in the year. Subject to approval at the Annual General Meeting ('AGM'), shareholders will receive a final dividend of 4.8 pence per share on 7 May 2025, bringing the total dividend for 2024 to 15.6 pence: an increase of 6.1% over that of 2023. The increase compares to the 2.5% rise in CPI and means that the growth in our dividends has exceeded UK inflation over one, three, five and ten years. Indeed, the growth in our dividends over the past decade, at 67.7%, is almost double that of UK inflation over the equivalent period (35.4%). Furthermore, our full year 2024 dividend, as well as being our fifty fourth consecutive rise in annual dividends, is our one hundred and fifty seventh annual dividend payment for shareholders.

We continue to benefit from a strong financial position with respect to both our revenue reserves (£116.2m), which represent approximately one year of dividend payments, and our capital reserves which stood at £5.3bn at the year end. As both are potentially distributable, we remain very well placed to continue our track record of increasing annual dividends well into the future.

EFFICIENCY

I am pleased to report that our 2024 Ongoing Charges figure fell to 0.45%, down from 0.49% in 2023. This reduction in charges was driven, in part, by the benefits of scale applying to our fee arrangement with our Manager and by greater efficiency in terms of our expenses, relative to an increased asset base.

The Board remains focused on delivering value for money for shareholders as part of its performance objectives and the Manager is also supportive of providing benefits of scale for their clients. Following constructive discussions with the Manager, I am pleased to advise that, from

1 January 2025, the Company's management fee will be paid at the rate of 0.3% on the first £3.5bn of the market value of the Company (down from £4bn at present) and at 0.25% on the value of the Company between £3.5bn and £6bn. A new tier has been introduced, with a fee of 0.2% on market value above £6bn applying. From

1 January 2026, the level at which the 0.25% fee will start to apply will fall further, to £3bn. These revised fee arrangements will ensure that your Company remains extremely competitively positioned relative to peers and the Board believes that, along with our delivered investment performance, this should position the Company to both attract and retain new shareholders over time.

BORROWINGS

We did not add to our total borrowings of £578.7m over the course of the year. Our cash and cash equivalents including short-dated Government bonds were reduced from £166.5m to £91.1m. There was no Government bond exposure at the year end. Our effective gearing level (with debt at par and considering Government bonds as part of our investment portfolio) fell to 8.6% from 9.9% at the start of the year.

With our substantial long-term borrowings and low fixed rates on our loans that extend to 2061, we remain very well positioned to add value through investment in assets which should be expected to deliver a superior return. Our loans have a blended interest rate of approximately 2.4%, which is far below current prospective rates which we would pay for short and long-dated loans.

6

REDUCING CARBON INTENSITY

The Board remains committed to transitioning the Company's portfolio to net zero carbon emissions by 2050 ('Net Zero'). The Manager's approach to Responsible Investment is set out on pages 18 to 26 and shareholders will note that the portfolio's carbon intensity has increased in the last two years as a result of changes within the portfolio. It is important to be aware that progress towards Net Zero will not be in the form of a straight-line trajectory and that there are several reasons for this. The Company has an investment objective to deliver growth in capital and income over time and the Board considers that this remains the primary objective for the Fund Manager. In the short term, delivering on the investment returns objective might periodically mean increases in the overall carbon intensity of the portfolio but, over time, we intend to reduce it both through investments in renewable energy and other decarbonisation technologies, as well as engaging with companies across our portfolio to ensure their activities are aligned or aligning to Net Zero. As a result of that engagement, companies are assessed as to whether they are aligned, aligning, committed, or not aligned to Net Zero and we also pay close attention to progress on this alignment. More detail is given in the Responsible Investment section of this report. The Board is also cognisant that there might be short term disruption and challenges in achieving its Net Zero target and it has identified the failure to transition to Net Zero as a principal risk.

BOARD COMPOSITION

Richard Robinson was appointed to the Board on 3 May 2024, replacing Tom Joy who stepped down from the Board on 31 March 2024. Richard has been the Investment Director of the Paul Hamlyn Foundation since 2009 and has considerable investment management experience.

Edward Knapp will have served as a Director for nine years in July this year. He will seek re-election at the forthcoming AGM but will step down from the Board in the second half of this year. We shall miss Edward's outstanding combination of investment, operational and general management experience. His contributions to the Board's discussions on strategy and risk have been particularly valuable. We will commence the process to recruit his successor shortly and an announcement will be made in due course.

Strategic Report

F&C LECTURE

In June 2024, we held our biennial lecture. As well as wanting to engage with our existing shareholders, we continue our efforts to attract young investors and the event was branded "F&C Live", with the theme "Smart choices: Navigating an Age of Social Change". We had some thought-provoking speakers who covered areas such as artificial intelligence, demographics, disruptive technology and geopolitics. It was very well received by those who attended and you can view a recording of the event, and interviews with the speakers, on our website at fandc.com.

ANNUAL GENERAL MEETING

This year's AGM will be a "hybrid" meeting, which will enable shareholders who cannot attend in person to view the AGM online and to participate by asking questions and voting if they wish. Full details of how to do so are set out in the letter that accompanies your Form of Proxy or Form of Direction.

Voting will be conducted by way of a poll, and you are requested to lodge your votes ahead of the meeting by completing your Form of Proxy or Form of Direction in accordance with the instructions. Its completion and return will not preclude you from attending the meeting and voting in person. If you are unable to attend the AGM, you are requested to submit any questions you may have with regard to the resolutions proposed at the AGM, or the performance of the Company, in advance of the meeting to [e-mail]. Following the AGM, the Fund Manager's presentation will be available on the Company's website at fandc.com.

OUTLOOK

2024 saw a continuation of many of the market themes from 2023. Performance from the Magnificent Seven sent US equities to record highs and to record levels of market concentration. It is noteworthy that recent equity market gains have been fuelled by such a small number of companies. However, there are expectations for a broadening out of returns across equity markets over the coming year.

The forecast for economic growth remains mixed for

2025. In the US, inflation is now expected to remain above target for longer, with jobs and underlying activity still showing strong readings. This is likely to leave only limited room for the Federal Reserve to cut interest rates from

Annual Report and Accounts 2024

7

CHAIRMAN'S STATEMENT (CONTINUED)

current levels. In Europe and the UK, signs of slowing economic growth means central banks are expected to cut rates over the coming year.

Equity markets, particularly the US, appear to be valued with little room for disappointment. Whilst there is investor enthusiasm for an expansionary policy mix that includes tax cuts and extra fiscal spending from the new US administration, investors continue to be concerned over potential tariffs and the route the new US administration will pursue regarding foreign policy. These could act as headwinds for global growth and investor sentiment in 2025. Furthermore, the current dominance of a small cohort of leading companies may face challenges from a number of areas including increased competition or regulatory challenges.

Our robust corporate structure and long-term perspective on investment opportunities is one of our great strengths. Our long-dated senior notes provide fixed, low-cost borrowings from which we can fund investments. Our dividend, rising for a fifty fourth consecutive year, is fully covered. We continue to hold significant revenue reserves, which should help us to continue to meet our objective of delivering above inflation increases in the dividend over the coming years. Our Private Equity portfolio, mainly focused on mid-market opportunities, remains well positioned, after a relatively fallow period, to benefit from future growth. Realisations in our portfolio managed by Columbia Threadneedle Investments increased in 2024 and we hope to see that continue into 2025. Our recent Growth and Venture Capital investments remain in the early stages of their investment programmes, but we remain optimistic over longer-term prospects there. There are many reasons for caution and indeed recent events relating to potential lower cost advances in AI illustrate the potential for both market volatility and shocks but, equally, the backdrop for financial markets does appear positive for the coming years. Regardless of potential short-term volatility, we remain resolutely focused on long-term opportunities.

Beatrice Hollond

14 March 2025

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