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

    Or contact your usual investment broker

  • 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 notes the changes to the Financial Conduct Authority’s rules relating to the restrictions on the retail distribution of unregulated collective investment schemes and close substitutes, which came into effect on 1 January 2014. The Company is an investment trust and therefore its Ordinary Shares are not subject to these restrictions. The Company 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

    There were further gains across most equity markets in February, as optimism around the global growth picture gaining traction. Investors largely shrugged off the increasing chance of a March US rate rise and the impending European elections. Small cap shares have been performing well at the start of the year, and both the net asset value (NAV) and share price rose, albeit we lagged the benchmark for the month.

    Stock selection was mixed across the directly invested portfolio, with underperformance in the US and outperformance in the UK and Europe. In the former, we were impacted by weakness in several stocks. Telecommunication services company ATN International fell after announcing weak results and a delay to capital spending plans, while consultancy business ICF International dropped after flagging a slowdown in federal government related business. Travel software supplier Sabre also fell after costs rose unexpectedly. On the positive side, technology reseller CDW benefitted from good end market demand and in financials, Leucadia National announced strong results.

    The UK portfolio was lifted by strong rises for a number of stocks. Specialist ingredients supplier Treatt saw its shares jumped as the company announced that sales and profits were running ahead of expectations. Shares in estate agency business Purplebricks surged as the company announced a move into the US market funded by an over-subscribed share placing. Industrial stocks have generally been reporting better momentum, and heat treatment company Bodycote’s results pleased the market. Less positively there was a further downgrade to 2017 profit guidance from aerospace and general industrials company Senior. Margins are being impacted by the switch from old to newer plane models, while the truck, construction and oil equipment markets have remained weak.

    In Europe, our best performer was Glanbia, the Irish listed nutritions business. Solid 2016 results were announced alongside a well-received move to sell-down the company’s interest in its Irish dairy processing joint venture. French software and hardware business Lectra was also up as sales into the automotive sector came through strongly, while the company highlighted a number of future growth opportunities. The weakest contributor was sports equipment supplier Amer Sports, which released weaker than expected results and a slow start to sales of a new watches line.

    Our holdings in funds targeting Japanese small caps lagged in February after a strong prior month. We have however added slightly to our Japanese weighting on the back of positive news in relation to corporate earnings across the market. Our Asian facing funds rose but by less than the strong local markets. We initiated a holding in a fund managed by HSBC targeting Asian small caps, while trimming exposure to a couple of the existing regional holdings. We continue to await further clarity around US trade policy before taking a more positive stance for this part of the portfolio.

    As at 28 February 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 £752.1 million (as at 28.02.2017)
    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

    1256.70p0.70p

    24 March 2017

  • 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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