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 was a solid start to the new financial year in May, with the UK small cap market performing strongly as investors took a relaxed view ahead of the general election. In overseas markets, it was more of the same, with European small caps continuing their better recent form, while US stocks lagged again. The net asset value outperformed the benchmark in the month.

     

    The main reason for the overall outperformance was a strong showing from the US portfolio. Shares in Molina Healthcare (a managed care provider) jumped after the company’s management team resigned leading to speculation there could be a takeover. VWR, a distributor of life sciences equipment, actually received a bid at a decent premium, while Performance Foods delivered encouraging results. On the negative side, The Michaels Companies, a retailer of craft products fell along with the sector against a weak US retail trading backdrop, while healthcare and technology company Safeguard Scientifics dropped despite an absence of news.

     

    The UK portfolio was also ahead in the month. Flavour and fragrances business Treatt was up by more than 20% after a strong set of results, while Countryside Properties also pleased the market with its figures. Eco Animal Health and Huntsworth both released positive profit warnings, and Sophos was boosted following news of the global cyber-attack. The fall in the oil price led to weakness in our oil investments including SDX Energy and Faroe Petroleum, while there was bad news from bars business Revolution which fell heavily after releasing a downbeat statement.

     

    There were widespread gains across our European holdings, with CTT, the Portuguese mail business bouncing back after recent weakness, and other double digit gainers included Interpump, Rational, CTS Eventim, Vidrala, Lectra, Metall Zug and Dometic. Shares in agronomy business Origin Enterprises pulled back, as an in line Q3 trading statement was taken as being underwhelming.

     

    On the fund holdings, our Japanese portfolio was slightly behind the rise in the MSCI Japan Small Cap index, with the value orientated Eastspring fund giving back some of its recent relative gains. There was a good performance from the HSBC Asian small cap fund and the Scottish Oriental Smaller Companies Trust in the month. Latin American markets were weak as a result of the renewed political scandal in Brazil.

    As at 31 May 2017

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     Global Smaller Companies - performance chart

     Source: Lipper and F&C. Basis: share price, 30.04.2017

    Performance (%) as at 31.05.2017

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 2.1 6.1 29.5 55.9 137.0
     Share price 1.2 4.3 28.2 54.6 140.5
     Benchmark 1.4 6.3 30.7 50.9 121.4
    Discrete annual performance  2017/2016 2016/2015 2015/2014 2014/2013 2013/2012
     NAV (diluted) 29.5 1.6 18.5 10.0 38.2
    Share price 28.2 1.6 18.7 10.0 41.5
     Benchmark 30.7 -1.2 15.7 10.3 33.1

     

    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

    1316.00p-8.00p

    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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