F & C Investments

F&C Global Smaller Companies

  • Reaching for high growth globally

  • How to Invest

    Open an F&C Savings Plan

    Call: 0800 136 420

    Invest online now

    The value of your investments can go down as well as up, and you may not get back what you originally invested.

  • Key Information Documents (KIDs)

    ISIN Trust name Currency English
    GB0000175058 F&C Global Smaller Companies PLC GBP KID
    GB00BNH7RK38 F&C Global Smaller Companies 3.5% Convertible Unsecured Loan Stock 2019 ("CULS") GBP KID

    Key facts

    The Trust seeks to exploit the investment potential of smaller companies listed on the world’s stock markets. Many smaller companies are not widely researched, opening up the potential for our detailed fundamental analysis to identify valuation anomalies. The inherent ability of smaller enterprises to grow faster than more mature, larger companies, is also positive for the long-term outlook.

    Highlights:

    • The largest specialist global smaller companies investment trust
    • An attractive investible universe of stocks to choose from
    • Strong track record in both absolute and relative to Benchmark terms
    • Low ongoing Charges in comparison to other funds

    Suitability for retail distribution

    The Company is an investment trust and conducts its affairs so that its Ordinary Shares can be recommended by Financial Advisers to ordinary retail investors in accordance with the Financial Conduct Authority's rules relating to non-mainstream investment products and intends to continue to do so.

  • Fund manager commentary

    The year 2017 ended solidly for most stock markets, with data continuing to suggest that the pace of global economic growth is increasing. Asian, European and UK smaller company shares were particularly strong. Progress to take the Brexit negotiations onto trade matters was eventually made, removing one near-term headwind to sentiment. US small caps lost ground despite the enactment of tax reform by the Trump administration, with interest rates rising in the month and further increases looking increasingly likely during 2018. The Company’s net asset value rose in December, albeit at a more gradual pace than compared with the benchmark.

    We underperformed in the UK, with a sudden unexpected profit warning from LED lighting supplier Luceco the main reason for this. The company has seen a squeeze on margins as a result of mismanaging the impact of recent currency movements. Shares in ingredients supplier Treatt lost some ground after a strong run. More positively, specialist foam supplier Zotefoams rose after it confirmed new investment in its facilities to increase capacity and a new agreement to supply Nike. Premier Asset Management was strong as the shares continued to be supported by news of inflows into its fund range. Convenience foods producer Greencore recovered ground after confirming the renewal of a key US contract and indicating that trading had started its new financial year solidly.

    The European portfolio performed broadly in line with the local small-cap market. Swiss conglomerate Metall Zug was up as it announced the acquisition of a majority stake in a business that gives it access to the ophthalmology, pulmonology and optics markets. Swedish recreational vehicles appliance supplier Dometic was also strong, as were financial services company IFG Group and machinery business TOMRA. Weaker performers included agronomy business Origin Enterprises, ticketing company CTS Eventim and Coor Service Management in facilities management.

    Our US portfolio was well ahead of the local market in the month. GTT Communications in the telecommunications sector was up after a broker upgraded its share-price target for the company, while waste business Covanta rose on news relating to an international joint venture. The Michaels Cos, an arts and crafts retail business, was also up as earnings forecasts rose. Weaker stocks included Safeguard Scientifics and The Ensign Group. The latter was impacted by uncertainty over fee rates. We believe many of our US holdings should be beneficiaries of lower corporate tax rates, although few companies have thus far communicated the scale of the anticipated impact.

    Our Japanese small-cap funds performed in line with the MSCI Japan Small Cap Index in December. On the wider Asian front, the Scottish Oriental Smaller Companies trust performed well, while the PineBridge Asia ex Japan Fund lagged. We continued to modestly increase exposure to Asia during the month by adding to a number of our existing holdings.

    As at 31 December 2017

  • Fund facts
    Investment manager F&C Investment Business Limited
    Benchmark 30% Numis UK Smaller Companies (excluding investment companies) Index / 70% MSCI all country World ex UK Small Cap Index
    AIC sector Global Growth
    Launch date 1889
    Total assets £865.0 million (as at 29.12.2017)
    Currency Sterling
    ISIN GB0000175058
    SEDOL 0017505 
    Key dates
    Annual general meeting July
    Year end 30 April
    Dividends paid August and January
    Results announced  June (final)
    December (half yearly)
  • Share price

    1,325.00p +0.00p

      

  • Peter Ewins

    Peter Ewins

    Fund Manager

Past performance is not a guide to future results. The value of investments can go down as well as up.

The shares of the Company are listed on the London Stock Exchange. Information in this section of the website concerning the Company is directed solely at persons who are located in the UK. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Potential investors must read our full terms and conditions, and the relevant Key Information Documents (KID), before proceeding further with any investment product referred to on this website. The information on this website may not be suitable for everyone, and retail investors unsure whether an investment product referenced on this website will meet their individual needs should seek advice before proceeding further with such product.

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