Time to go green, says world’s oldest investment fund

F&C, the oldest investment trust in the world, raised its dividend for the 50^thyear running today and pledged to boost its green credentials.

Paul Niven, who has managed the fund since 2014, reckons this is the year in which “sustainable investing came of age”.

“We see great opportunity for shareholder returns to be enhanced through a focus on companies engaging in sustainable business practices,” he added.

The divi is up 4.3% to 12.1p – it has paid out every year since it was founded in 1868 to allow small shareholders access to big investments.

It has tens of thousands of customers, many saving via an ISA.

The focus of the trust changed a few years back to allow it to reduce exposure to UK equities, which as Niven notes have been “laggards in recent years”.

The trust is moving towards being net zero, but admits this will take time.

Niven says the trust is able to keep increasing the divi due to the cash it has on hand, and because it yields less than 2% in the first place.

“We are not a high yielding stock, so that gives me flexibility, he says.

The trust doesn’t have more than 3% of its assets in anything. Amazon is the closest at 2.7%,followed by Microsoft at 2.4%.

It has chunks of Apple and Facebook also.

F&C did use to own Tesla, but sold out a few years ago, fearful of its valuation and indeed the profitability of the cars.

Trust chairman Beatrice Hollond said: “FCIT has been resilient, responsible and prosperous for over 150 years and we are pleased to announce our commitment to transition the portfolio to net zero carbon emissions by 2050 at the latest. Our focus has always been on delivering sustainable growth in capital and income over the longer term. Shareholders can be assured that it will remain so."

The shares rose 1p to 776p at which price the trust is valued at £4.1 billion.