Foreign & Colonial reports double digit growth in NAV per share

Net asset value per share rose 10.8 per cent to 357.60p while the net asset value total return was 13.3 per cent at Foreign & Colonial Investments (F&C) in the year ended December 31st.

The company's annual dividend per share rose 19.7% to 8.50p prompting the share price to rise more than 11%.

Simon Fraser, the Chairman of F&C, said: "All major stock markets rose in the year despite slower than expected economic growth, political uncertainty in many countries and sluggish earnings growth from many companies. Central banks continued to find new ways of injecting money into the financial system and none of the potential disasters investors were worried about occurred by the end of the year."

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

"The biggest positive influences on our performance in the year were strong stock selection overseas and our relatively high level of gearing in rising markets. Our private equity portfolio generated far more cash than in 2011 but did not rise as much as public markets."

He added: "Our performance in 2012 continued our record of long-term growth. Over the last ten years we have achieved a total return of 9.5% per annum compared with a benchmark return of 8.6% per annum. At the same time our NAV has been less volatile than the index benchmark. In short we have produced superior performance with lower risk."

F&C's share price was down 0.17% to 352.40p at 08:46 on Monday.

MF