The firm made the announcement via its annual report to shareholders, in which it announced that it was reducing its gearing to 12% from 15.8% at the end of December.
The trust, which traces its origins to 1868, now has a 22% allocation to the UK, down from 33.7% in 2012. It is also switching its benchmark to the FTSE All World Index, from 40% FTSE All Share and 60% FTSE World ex UK, citing increased simplicity as the motivation.
Total dividend, NAV and the share price all rose in 2012, while the NAV total return outperformed its benchmark by 1.2%, reaching 13.3%. F&C attribute strong performance to stock selection overseas and a high level of gearing in rising markets.
Shareholders will receive a dividend of 8.5p, an increase of 19.7%. Share NAV increased 10.8% to 357.60 pence, while the share price swelled 11.1% to 320.50 pence. F&C are amongst the trusts switching to quarterly dividends, with effect from 2013. Dividend payouts for February are forecast to be 2.0 pence, while total 2013 dividends are anticipated to increase 5.9% on 2012 levels.
Private equity holdings generated more cash than the previous year, but did not rise as much as public markets. The trust sources a significant proportion of dividend cash from its private equity portfolio.
