The F&C Investment Trust has been relegated from the FTSE 100 and has returned to the FTSE 250 index.
Jeremy Tigue’s £1.9 billion investment trust had spent six months among Britain’s 100 largest companies, but was demoted at the last quarterly rebalancing of the FTSE 100.
Tigue says he is “delighted” that the trust has moved to the FTSE 250, because it has happened as a result of huge advances in the share prices of many of the kinds of companies he invests in. He said in a statement: “I would far rather be outside the FTSE 100 when it is at 4900 than inside it at 3500.”
F&C says that when the last time the trust entered the FTSE 100, in March 2003, it signalled the start of a four-year bull run. “Our entry to the FTSE 100 has proved a classic buy signal. As we come out of the index at this month’s rebalancing, it means we’ve done our job—we’ve heralded a rally, and stuck to what we do best: providing a globally diversified spread of investments,” Tigue said.
The quarterly index rebalancing is based on closing prices on September 8, and will be implemented on September 20.