FCIT's fund manager, Paul Niven, detailed several key drivers of gains over the six months to the end of June.
F&C Investment Trust's chair Beatrice Hollond stepped down from the board on 31 July, the company said today (3 August) as it announced its half-year results.
James Williams succeeded him as chair on 1 August. He was appointed to the board on 1 May and is also non-executive chair of The European Smaller Companies trust and a non-executive director of NT Asian Discovery fund.
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Until early 2026, Williams was non-executive chair of Schroder AsiaPacific fund. He has more than 30 years' international business experience, including senior investment banking roles in Asia and Europe at ING Barings, ABN AMRO and Commerzbank.
"I have thoroughly enjoyed my time on the board and it has been an honour and a privilege to be the chair of your company, the oldest and still one of the very largest investment trust companies. I know I will be leaving your company in very capable hands," said Hollond.
Hollond had been chair of F&C Investment Trust since September 2017. She also chaired the company's management engagement committee and the nomination committee.
Her resignation from the board comes as she is set to become chair-elect of The Brunner Investment trust on 1 September, with the move announced by that fund's board on 1 July. She will replace Carolan Dobson, who is set to retire at the company's 2027 AGM.
F&C wins from Iran conflict trade, AI infrastructure exposure
In its half-year report, released separately but alongside the announcement of changes to its board, the trust's fund manager, Paul Niven, head of multi-asset at Columbia Threadneedle, detailed several key drivers of gains over the six months to the end of June.
This included a short-term tactical play in the wake of the outbreak of the conflict between the US, Israel and Iran in February.
The trust used futures to increase its listed equity market exposure amid the market downturn following the initial military strikes, in a move "that proved profitable" as markets recovered.
Niven noted that the ramifications of the conflict are likely to continue for the foreseeable future.
He said: "The geopolitical environment remains highly uncertain and it is not clear that president Trump has the ability to extricate himself from the current conflict in the Middle East without ceding some element of control over the Strait of Hormuz to Iran.
"Such an outcome would have a lasting impact on energy security and supply, but would also represent a source of future instability, with potential implications for other regions."
Niven added that it was "arguable" that recent events in the Middle East (as well as in US tariff policy) exemplify a "changed world order", with less clarity and consistency in the policies of key global actors, including the US.
"Investors are already adjusting to a world with greater volatility in the geopolitical backdrop," he added.
Another key source of future volatility could be the bursting of the AI bubble, in Niven's view. Yet there are opportunities here as well.
"From a market perspective, there is growing scrutiny over the likely returns which will accrue from capital expenditure spending by the 'hyperscalers'," the fund manager emphasised.
The trust benefitted significantly from its exposure to chipmakers and data centre companies over the period, while deliberately remaining underweight in hyperscalers such as Microsoft.
Its holdings in data storage provider Western Digital, which rose 276.7% in the reporting period, semiconductor maker Micron (up 310.8%), TSMC (56.6%) and chip designer Advanced Micro Devices (175.4%) were cited as helping to drive returns.
Baillie Gifford's private equity trust Schiehallion, in which the trust held a 2.13% stake as at 30 June, according to Morningstar, was another key contributor, up 39.9% over the period.
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This, in turn, was largely attributable to Schiehallion's allocation to SpaceX ahead of the latter's IPO on 12 June. The company accounted for around 14.5% of its assets as of the same month.
Niven added: "We have been modestly reducing exposure to US assets in recent years, particularly US large-cap growth stocks, while increasing our allocation elsewhere, notably to emerging markets.
"These changes reflect our view that market performance should broaden and we were pleased to see recent performance trends validating our perspective."
Over the six-month period, F&C Investment Trust returned 12.4% in net asset value terms, slightly behind the 12.6% return of its FTSE All-World Index benchmark. It returned 12.8% in share price terms, closing at 350.6p on 30 June.
Since the end of June, the trust's shares have fallen 4.8% to 333.6p, at the time of reporting. They have risen 0.8% since today's announcements, according to data from MarketWatch.
