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

    July was another positive month for small caps in most parts of the world. Although political uncertainty abounds in the UK, domestic small caps performed well in July as the first batch of half yearly results came through, on the whole, solidly. European small caps also did well in the month with economic data continuing to suggest that economic activity is expanding more rapidly. US small caps were up in local currency terms, but the dollar was weak as political issues and more cautious commentary about the likely pace of interest rates from the Federal Reserve drove it down. The net asset value rose by slightly more than the benchmark in the month due to generally positive stock selection.

    A number of our UK companies upgraded their profit expectations. Notable amongst these were tonics supplier Fevertree Drinks, media business Huntsworth and heat treatment company Bodycote. Revolution Bars, which had been a poor performer after a profit warning in May, rose sharply after reporting a bid approach.

    The US portfolio was also ahead in the month. Golf and country club owner Clubcorp Holdings received a bid from private equity firm Apollo, while there was speculation that Total Systems Services might also be acquired. In addition there were good results from waste to energy business Covanta. Less positively Franklin Financial Network lost ground as loan growth slowed and higher expenses hurt the bottom line, while telecoms and renewable energy services business ATN International fell as the company forecast a deterioration in its US wireless business.

    European performance was ahead of the local small cap index too. Scandinavian finance stocks Storebrand and Sparebank performed well, while results from industrials Norma, Rational and Tomra were also pleasing. Swedish windows business Inwido’s figures however were disappointing and the shares pulled back, while floorings business Forbo also slipped as the market reacted negatively to a cautious outlook statement.

    On the funds side, our Japanese portfolio slightly lagged in July, with the Aberdeen managed fund underperforming. Asian markets were relatively flat with our fund holdings marginally outperforming. The best performance here came from the Manulife Asian small cap fund.

    As at 31 July 2017

  • Global Smaller Companies - performance chart 

     Source: Lipper and F&C. Basis: share price, 31.07.2017

    Performance (%) as at 31.07.2017

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 1.7 7.9 21.0 60.2 134.2
     Share price 1.8 6.5 23.8 58.1 137.2
     Benchmark 1.4 7.7 19.9 54.6 119.5
    Discrete annual performance  2017/2016 2016/2015 2015/2014 2014/2013 2013/2012
     NAV (diluted) 21.0 12.6 17.6 5.0 39.2
    Share price 23.8 10.4 15.7 5.3 42.5
     Benchmark 19.9 14.3 12.8 5.5 34.6

     

    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

    1,315.11p +2.11p

      

  • 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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