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

    Share prices made further gains in August despite relatively disappointing news on the corporate earnings front. Sterling stabilised on the currency exchanges, with some relatively positive data emerging from the retail and manufacturing sectors, implying that Brexit has not led to an immediate slump in business. The NAV rose a little faster than the benchmark in the month and the share price beat both, moving back to a premium.

    We outperformed in the UK, helped by a weakening of most metals prices, which drove down the share prices of the miners, an area to which we are underweight. A number of our holdings announced good results, notably infrastructure investor John Laing Group, property company CLS Holdings and carpet business Victoria. Interserve also did well as its half yearly results release indicated that recently identified losses in completing waste to energy contracts were not escalating.

    The European portfolio traded broadly in-line with the local market. On the upside a number of our holdings reported good figures with both truck equipment supplier, Interpump and floorings supplier Forbo doing well, while a number of stocks which had fallen significantly after the Brexit vote, such as insurer Storebrand and media company Atresmedia, staged a strong recovery. Portuguese postal operator CTT was the largest faller as earnings forecasts were cut in the face of falling mail volumes and some cost pressures.

    The US portfolio had a more difficult month. Shares of Geo Group, an owner and operator of private prisons, fell after the Department of Justice revealed plans to gradually end its use of private facilities. The Chefs’ Warehouse announced disappointing results as it struggled to integrate a recent acquisition. More positively, American Vanguard, an agricultural chemicals supplier, delivered better than expected earnings and Carrizo Oil & Gas was lifted by a higher oil price.

    Our Japanese and Rest of World portfolios performed strongly in August. In Japan, Eastspring’s fund did well as the bias to more internationally orientated stocks worked in its favour, while in Asia; the Manulife Asian Smaller Companies fund was the best contributor to overall outperformance across our fund holdings. Asian markets as a whole have seen greater interest, with investors increasingly looking to allocate more funds towards the region, after a protracted period of underperformance compared to the main Western markets. We continued to add to our own exposure to the region during the month.

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     Global Smaller Companies - performance chart

     Source: Lipper and F&C. Basis: share price, 31.08.2016

    Performance (%) as at 31.08.16

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 2.2 13.9 18.3 45.8 118.3
     Share price 5.2 13.7 17.9 44.2 124.7
     Benchmark 1.9 17.4 21.1 42.7 97.3
    Discrete annual performance  2016 2015 2014 2013 2012
     NAV (diluted) 18.3 9.5 12.6 32.7 12.8
    Share price 17.9 9.5 11.8 37.4 13.4
     Benchmark 21.1 4.5 12.8 27.9 8.1

     

    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

    1145.00p12.00p

    27 September 2016

  • 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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