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

    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

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     Global Smaller Companies - performance chart

     Source: Lipper and F&C. Basis: share price, 28.02.2017

    Performance (%) as at 28.02.2017

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 2.5 2.5 32.3 51.1 119.2
     Share price 3.0 1.9 38.0 51.0 124.5
     Benchmark 3.3 4.0 37.1 45.5 104.0
    Discrete annual performance  2017/2016 2016/2015 2015/2014 2014/2013 2013/2012
     NAV (diluted) 32.3 1.7 12.3 15.4 25.7
    Share price 38.0 -2.7 12.5 15.1 29.2
     Benchmark 37.1 -2.0 8.2 18.1 18.7

     

    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

    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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