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

    Most equity markets were slightly up in August despite ongoing geopolitical concern in relation to North Korea. Sterling was weak as Brexit negotiations continued, with the euro continuing to gain ground on the other main currencies on signs that momentum in Europe’s larger economies was being maintained. US small caps lagged the other markets as political uncertainty continued to weigh on sentiment, but the local economy is still looking to be in solid shape with jobs still being created. The net asset value (NAV) and share price rose in the month but the benchmark rose by more.

    The US portfolio underperformed in the month. Higher costs hurt results from PRA Group, which operates as a buyer and servicer of defaulted consumer receivables. Figures from software company Sabre and underwriter ProAssurance were also below expectations. More positively crop chemicals supplier American Vanguard did well with earnings forecasts increased, while sterilisation services business STERIS delivered encouraging organic growth numbers.

    We were also behind the local small cap index in Europe. Shares in Glanbia fell on concerns over margin pressure in the performance nutritional side of the business. Weaker advertising market data undermined two of our media holdings while Lenzing was also weak with some concern over capacity expansion in the company’s textile markets. The best return in the month came from Norwegian bank Sparebank, which reported good results, but specialist ingredients business Christian Hansen was also strong.

    In the UK, the portfolio was slightly ahead of the small cap market in the month, with stock selection in financials beneficial. Premier Asset Management shares did well, with the company continuing to see good inflows into its multi-asset funds, while there were good results from our largest real estate company CLS Holdings, where the NAV came in ahead of expectations. Shares in 4imprint and Computacenter were strong following good results, while Revolution Bars received a firm takeover offer with the potential for a rival bid also emerging. On the downside Ultra Electronics shares fell back as the market reacted to dull interim results and poor cash-flow in the first half of the company’s financial year.

    On the funds side, our Japanese fund holdings were behind the MSCI Japan Small Cap index. The Pinebridge and Manulife managed Asian small cap funds did well in the month, helped by relatively high exposure to the Chinese and Hong Kong markets. We added to the former fund to slightly lift exposure to the region, with earnings news here on an improving trend.

    As at 31 August 2017

  • Global Smaller Companies - performance chart 

     Source: Lipper and F&C. Basis: share price, 31.08.2017

    Performance (%) as at 31.08.2017

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 1.4 9.4 20.0 55.5 132.3
     Share price 1.7 8.3 19.7 54.5 137.3
     Benchmark 2.1 9.9 20.0 51.8 119.0
    Discrete annual performance  2017/2016 2016/2015 2015/2014 2014/2013 2013/2012
     NAV (diluted) 20.0 18.3 9.5 12.6 32.7
    Share price 19.7 17.9 9.5 11.8 37.4
     Benchmark 20.0 21.1 4.5 12.8 27.9

     

    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.

     

  • 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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