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

    Aside from the ongoing confrontational run-up to the US presidential election, the main feature of October in the financial markets was the renewed weakness of sterling. This reacted negatively to news that the UK government would be formally triggering exit discussions from the European Union by the end of March 2017, and indications that the so called “Hard Brexit” option of the UK leaving the single market was looking more likely.

    In terms of the equity markets, there was a mixed performance driven to a large extent by currency movements. For the fund, the best returns in sterling terms came from the Japanese portfolio, which was up by nearly 10%, while the UK portfolio was unsurprisingly the laggard. Helped by our international holdings, the NAV rose and beat the benchmark in the month. We were helped by strong stock selection in the US and by the underweight overall exposure to sterling.

    Some of the better performers in the US included telecoms business Zayo Group and construction materials supplier Martin Marietta Materials, both of which were lifted by broker upgrades while payments processing business Total Systems Services delivered good results. On the downside, shares in golf and country club business Clubcorp fell, as the company announced a revised capital allocation strategy, while Carrizo Oil and Gas dropped as the oil price came under pressure late in the month.

    In both the UK and Europe, performance was behind the local small cap indices as a number of our holdings announced disappointing trading news. The largest hit in the UK came from Laird, where the company failed to secure the anticipated level of revenue and margin from its largest customer in the mobile handset market. We also suffered from the profit warning released by aerospace and industrial products supplier Senior. The company’s profits have been impacted by demand and pricing issues on some of the newer aerospace platforms that it serves and by ongoing weak demand in the truck market. There was better news from Hotel Chocolat, a recent IPO, which reported encouraging maiden results. In addition, our decision to buy North Sea development company Ithaca Energy in September was rewarded by a strong bounce in the share price. We decided to take profits here late in October after the share price rise.

    European performance has been weaker over recent months, and this continued into October. Updates from two Scandinavian based companies - building materials supplier Inwido and engineer Indutrade, disappointed the market, sausage skin company Viscofan also announced weak figures, while shares in dairy and nutritional products supplier Glanbia were down ahead of its third quarter update. It was not all bad news however, and a number of our financial stocks did well, helped by firmer equity markets and rising bond yields. Aareal Bank, Sparebank, Azimut and Storebrand were the most notable movers.

    Performance on the Japanese and Rest of World portfolios of collective funds was positive. In Japan, Eastspring’s smaller companies fund was again strong, while our holding in the Scottish Oriental Smaller Companies fund targeting Asian small caps, benefited from a narrowing of its discount.

    As at 31 October 2016

  • 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 £698.6 million (as at 31.10.2016)
    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

    1177.00p-5.00p

    closed

  • 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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