F & C Investments

F&C Global Smaller Companies

  • Reaching or 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 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

    Most equity markets were slightly up in August despite ongoing geopolitical concern in relation to North Korea. Sterling was weak as Brexit negotiations continued, with the euro continuing to gain ground on the other main currencies on signs that momentum in Europe’s larger economies was being maintained. US small caps lagged the other markets as political uncertainty continued to weigh on sentiment, but the local economy is still looking to be in solid shape with jobs still being created. The net asset value (NAV) and share price rose in the month but the benchmark rose by more.

    The US portfolio underperformed in the month. Higher costs hurt results from PRA Group, which operates as a buyer and servicer of defaulted consumer receivables. Figures from software company Sabre and underwriter ProAssurance were also below expectations. More positively crop chemicals supplier American Vanguard did well with earnings forecasts increased, while sterilisation services business STERIS delivered encouraging organic growth numbers.

    We were also behind the local small cap index in Europe. Shares in Glanbia fell on concerns over margin pressure in the performance nutritional side of the business. Weaker advertising market data undermined two of our media holdings while Lenzing was also weak with some concern over capacity expansion in the company’s textile markets. The best return in the month came from Norwegian bank Sparebank, which reported good results, but specialist ingredients business Christian Hansen was also strong.

    In the UK, the portfolio was slightly ahead of the small cap market in the month, with stock selection in financials beneficial. Premier Asset Management shares did well, with the company continuing to see good inflows into its multi-asset funds, while there were good results from our largest real estate company CLS Holdings, where the NAV came in ahead of expectations. Shares in 4imprint and Computacenter were strong following good results, while Revolution Bars received a firm takeover offer with the potential for a rival bid also emerging. On the downside Ultra Electronics shares fell back as the market reacted to dull interim results and poor cash-flow in the first half of the company’s financial year.

    On the funds side, our Japanese fund holdings were behind the MSCI Japan Small Cap index. The Pinebridge and Manulife managed Asian small cap funds did well in the month, helped by relatively high exposure to the Chinese and Hong Kong markets. We added to the former fund to slightly lift exposure to the region, with earnings news here on an improving trend.

    As at 31 August 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 £812.2 million (as at 31.08.2017)
    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)
  • 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 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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