Investment trust giant Foreign & Colonial (F&C) saw its net asset value per share (NAV) edge higher in the first quarter, but it underperformed its composite benchmark index.

NAV total return, with debt at market value, for the three months to 31 March was 1.3%, compared with a 1.8% return on the company's composite benchmark, which comprises a blend of the FTSE All Share (40%) and the FTSE WI World excluding UK (60%).

Owing to the worsening political climate in North Africa and increased taxation of North Sea oil the board decided to write down the value of its largest unlisted investment, Caithness Petroleum, to £19.5m during March 2011 from the end-2010 value of £34.3m.

In the quarter there were private equity draw-down payments of £20.9m and distributions received of £21.0m. The private equity portfolio was valued at £380.8m, compared with £382.3m at 31 December 2010.

Undrawn commitments decreased to £180m at 31 March 2011 from £204m at the end of 2010, with no new commitments made to private equity funds.

Effective gearing (with debt at par value) decreased in the three months since 31 December 2010 from 13.2% to 11.5%.

The net outflow from the F&C savings schemes during the period was £5.4m compared with a net inflow of £1.6m in the first three months of 2010. The number of shareholders is now over 111,000.

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