F & C Investments

F&C Global Smaller Companies

  • Aiming for attractive long-term returns with low volatility

  • 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.

  • Performance

    The F&C Global Smaller Companies trust aims to deliver a high total return, with a focus on capital growth. By investing a global spread of shares, the fund manager seeks to reduce the higher levels of volatility associated with smaller companies. Over five years, the trust has outperformed its benchmark (30% Numis UK Smaller Companies (ex investment companies) Index / 70% MSCI all country World ex UK Small Cap Index.

    What is Net Asset Value (NAV)?

    Each investment trust calculates the net asset value of a share by adding up the value of all the securities owned by the trust divided by the number of outstanding shares. The NAV can be viewed as the amount of money investors would receive per share if all of the securities owned by a trust were sold and distributed to the shareholders.

    Share price

    The share price of the Trust is determined by demand and supply in the stock market and does not always reflect the underlying value of the share portfolio.

  • Fund manager commentary

    Stock markets rallied in April after the previous month’s weakness and volatility. The pound fell back after rising in March, and this lifted share prices in the UK, particularly for those companies with overseas earnings. The diluted net asset value (NAV) was up but not by as much as the benchmark, while the company’s share price rose by more than both, moving back to a premium to the diluted NAV. The diluted NAV takes account of the dilution relating to the convertible loan stock in issue, and we believe it is the fairest measure to use because it shows the real effective value per share to an ordinary shareholder, taking account of the fact that the convertible will convert at some stage into ordinary at a discounted price, thereby diluting the NAV.

    We underperformed in the US and European markets during April. In the former, several holdings, including LKQ, Spectrum Brands and Magellan Health released disappointing updates, while our largest holding in the insurance business, Alleghany, lagged. With energy a strong area as the oil price rose, we benefited from good increases in the share prices of two companies exposed to the sector: NOW and Kirby. Shares in Commvault Systems were also up significantly as an activist investor increased its stake in the business.

    In Europe, a key reason for our underperformance was the absence of exposure to some of the strongest-performing sectors, such as energy and utilities. IFG Group fell as the company announced an unexpected change of management. ASM International was also weak as the market started to get more cautious around the semiconductor market, while swimming pools supplier Fluidra and bottle-maker Vidrala lost ground as investors took profits.

    In the UK, we managed to slightly beat the strong local small cap index, with several companies announcing positive trading statements – among them Clipper Logistics, which continued to win new retail customers for its services. In the oil sector, most share prices were strong as the oil price rose; our holding in SDX Energy was up as the company announced positive drilling news in Morocco and Egypt, while shares in Faroe Petroleum jumped following a positive well result and news that an industry peer had taken a large stake in the company. In real estate, U and I Group shares were strong following a good set of results and news of a bumper special dividend payment.

    On the collectives side, our Japanese portfolio outperformed strongly as a consequence of a shift towards value stocks in the market, with this benefiting Eastspring’s small cap fund which is the company’s largest individual investment. In Asia, performance across our holdings was mixed, but the Scottish Oriental Smaller Companies Fund had a better month after recent underperformance.

    As at 30 April 2018

  • Global Smaller Companies - performance chart 

     Source: Lipper and F&C. Basis: share price, 30.04.2018

    Performance (%) as at 30.04.2018

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 2.99 -0.31 9.27 45.27 89.71
     Share price 5.77 0.73 9.04 44.55 88.64
     Benchmark 3.46 -1.44 7.93 42.57 83.48
    Discrete annual performance  2018/2017 2017/2016 2016/2015 2015/2014 2014/2013
     NAV (diluted) 9.27 28.39 3.55 16.29 12.30
    Share price 9.04 28.51 3.16 17.76 10.82
     Benchmark 7.93 30.44 1.27 14.50 12.40

     

    Source: Lipper and F&C. Basis: Percentage growth, total return, bid to bid price with net income reinvested in sterling. Basis in accordance with the regulations of the Financial Conduct Authority. Past performance is not a guide to future performance. Values may fall as well as rise and investors may not get back the full amount invested. Income from investments may fluctuate. Income payments may constitute a return of capital in whole or in part. Income may be achieved by foregoing future capital growth. Changes in rates of exchange may have an adverse effect on the value, price or income of investments.

    Note: The performance figures shown here will differ to those shown in the Key Information Document (KID) as they are based on actual past performance data. The performance information in the KID is presented on a forward-looking basis using economic models based on historical prices and volatility of the product (as prescribed by regulations).

  • Share price

    1,395.00p +5.00p

      

  • Peter Ewins

    Peter Ewins

    Fund Manager

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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