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

    Or contact your usual investment broker

  • 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

    Equity markets made a broadly positive start to 2017 in January, helped by generally upbeat economic data releases across the major markets. The better data has also been evident in improving corporate earnings momentum in some of the more cyclical stocks and within the financial sectors. Reversing the trend from last year, sterling rose against the dollar. Currency movements served to hold the NAV back and this lagged a small rise in the overall benchmark index during the month.

    At the stock selection level, this was a generally positive month. In the UK, our portfolio beat the local small cap market, with Sirius Real Estate, the German light industrial and office real estate company doing well as the company confirmed plans to move to a full listing. Other winners included emerging estate agent business Purplebricks and Fevertree Drinks. The former’s business appears to be growing strongly as it takes share from conventional agents, while the latter was strong as management once again upgraded sales and profits expectations. Pharmaceutical services business Clinigen was also strong following a good update and carpets business Victoria advanced as it made a further acquisition and hosted a visit for analysts.

    Our European portfolio also made a good start to 2017, with Italian industrial Interpump benefiting from broker upgrades. The company is hopefully well placed to benefit from increased US infrastructure spending as and when this materialises. Storebrand, the Norwegian life insurer rose as Scandinavian bond yields went higher, and Sparebank and Ringjoebing Landbobank were also both strong as sentiment towards banks continued to improve. CTT, the Portuguese postal operator was down however, as mail and parcel volumes disappointed the market.

    In the US, we slightly lagged the Russell 2000 index. Two of our holdings involved in the agricultural sector (The Andersons and American Vanguard) were undermined by concerns surrounding the new administration’s trade policies. Franklin Financial Network announced weak results, negatively impacting its share price. More positively, the board of Clubcorp Holdings, an owner of golf and country clubs, announced that it was considering its strategic options, leading to hopes of a takeover. GoPro shares rose as a large shareholder increased its holding in the consumer electronics company.

    Both of our Japanese fund holdings performed well compared to the local market in January, while our holdings in Asian funds managed by Manulife and Pinebridge were also strong in the month. Sentiment towards Asia appears to have stabilised for now ahead of further clarification on US trade policy and the outlook for US interest rates.

    As at 31 January 2017

  •  

     

     Global Smaller Companies - performance chart

     Source: Lipper and F&C. Basis: share price, 31.01.2017

    Performance (%) as at 31.01.2017

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 0.1 0.1 30.2 51.0 123.2
     Share price -1.0 -1.0 33.4 49.6 126.2
     Benchmark 0.7 0.7 35.2 45.8 106.4
    Discrete annual performance  2016 2015 2014 2013 2012
     NAV (diluted) 30.2 4.9 10.6 20.3 22.9
    Share price 33.4 2.1 9.9 20.6 25.4
     Benchmark 35.2 -0.4 8.3 20.0 17.9

     

    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.

     

  • Share price

    1264.70p-3.30p

    21 Feburary 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.

Top