The report, published on Thursday, showed a dividend increase of 3.3% to 9.3p per share in the 12 months to 31 December.
The figure brings the company’s 10-year dividend growth to 121.4%, or 8.3% compound, against inflation of 35.6%.
Simon Fraser, chairman of F&C Investment Trust, outlined a further dividend rise prior to the 2015 annual general meeting – to be held 28 April – in order to keep growth in advance of inflation.
He said: “We recognise the importance of a rising income stream in real terms for our shareholders and it is a clear focus of the board that we maintain our record of long-term growth ahead of the rate of inflation.
“In this regard, ongoing cash realisations from our private equity portfolio and substantially lower interest payments resulting from the repayment of our costly debenture at the end of 2014 help enormously. The board is planning another dividend increase ahead of inflation for 2015.”
Net asset value per share also increased, hitting 458.4p in the same period – up 7.9% from 426.1p – and yielding a total return of 10.3%, the third yearly rise in a row.
In addition, the trust’s share price total return went up 13.5%, stemming from a share price increase of 11.4% to reach 421.2p across 562,292,016 shares, and equating to an average return of 10.6% per year in the past decade.
Net assets hit £2.58bn, a 6.17% rise on the £2.43bn recorded at the end of 2013, with a net cash inflow from operating activities of £40.99m.
Fraser highlighted US equities as the biggest contributor to the trust’s 2014 performance, alongside the dollar, which strengthened significantly in the latter half of the year.
“The performance of stock markets proved less broad-based in 2014, with the US equity market leading gains globally,” he expanded.
“Currencies played an increasingly important role in shareholder returns and sterling-based investors had their returns enhanced by a rise in the dollar, which was buoyed by strong performance of the US economy.”
The company also saw the appointment of fund manager Paul Niven, who replaced Jeremy Tigue in July 2014 after the latter retired following 17 years in the role.
