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

    The year 2017 ended solidly for most stock markets, with data continuing to suggest that the pace of global economic growth is increasing. Asian, European and UK smaller company shares were particularly strong. Progress to take the Brexit negotiations onto trade matters was eventually made, removing one near-term headwind to sentiment. US small caps lost ground despite the enactment of tax reform by the Trump administration, with interest rates rising in the month and further increases looking increasingly likely during 2018. The Company’s net asset value rose in December, albeit at a more gradual pace than compared with the benchmark.

    We underperformed in the UK, with a sudden unexpected profit warning from LED lighting supplier Luceco the main reason for this. The company has seen a squeeze on margins as a result of mismanaging the impact of recent currency movements. Shares in ingredients supplier Treatt lost some ground after a strong run. More positively, specialist foam supplier Zotefoams rose after it confirmed new investment in its facilities to increase capacity and a new agreement to supply Nike. Premier Asset Management was strong as the shares continued to be supported by news of inflows into its fund range. Convenience foods producer Greencore recovered ground after confirming the renewal of a key US contract and indicating that trading had started its new financial year solidly.

    The European portfolio performed broadly in line with the local small-cap market. Swiss conglomerate Metall Zug was up as it announced the acquisition of a majority stake in a business that gives it access to the ophthalmology, pulmonology and optics markets. Swedish recreational vehicles appliance supplier Dometic was also strong, as were financial services company IFG Group and machinery business TOMRA. Weaker performers included agronomy business Origin Enterprises, ticketing company CTS Eventim and Coor Service Management in facilities management.

    Our US portfolio was well ahead of the local market in the month. GTT Communications in the telecommunications sector was up after a broker upgraded its share-price target for the company, while waste business Covanta rose on news relating to an international joint venture. The Michaels Cos, an arts and crafts retail business, was also up as earnings forecasts rose. Weaker stocks included Safeguard Scientifics and The Ensign Group. The latter was impacted by uncertainty over fee rates. We believe many of our US holdings should be beneficiaries of lower corporate tax rates, although few companies have thus far communicated the scale of the anticipated impact.

    Our Japanese small-cap funds performed in line with the MSCI Japan Small Cap Index in December. On the wider Asian front, the Scottish Oriental Smaller Companies trust performed well, while the PineBridge Asia ex Japan Fund lagged. We continued to modestly increase exposure to Asia during the month by adding to a number of our existing holdings.

    As at 31 December 2017

  • Global Smaller Companies - performance chart 

     Source: Lipper and F&C. Basis: share price, 29.12.2017

    Performance (%) as at 29.12.2017

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 1.7 13.9 13.9 57.8 121.7
     Share price 1.7 13.1 13.1 57.6 122.8
     Benchmark 2.2 14.8 14.8 56.2 114.2
    Discrete annual performance  2017/2016 2016/2015 2015/2014 2014/2013 2013/2012
     NAV (diluted) 13.9 25.0 10.8 7.1 31.1
    Share price 13.1 25.8 10.9 7.8 31.1
     Benchmark 14.8 28.1 6.2 6.0 29.4

     

    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.

    Note: The performance figures shown here will differ to those shown in the Key Information Document (KID) as they are based on actual past performance data. The performance information in the KID is presented on a forward-looking basis using economic models based on historical prices and volatility of the product (as prescribed by regulations).

  • Share price

    1,325.00p +0.00p

      

  • 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, and the relevant Key Information Documents (KID), 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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