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

    Aside from the ongoing confrontational run-up to the US presidential election, the main feature of October in the financial markets was the renewed weakness of sterling. This reacted negatively to news that the UK government would be formally triggering exit discussions from the European Union by the end of March 2017, and indications that the so called “Hard Brexit” option of the UK leaving the single market was looking more likely.

    In terms of the equity markets, there was a mixed performance driven to a large extent by currency movements. For the fund, the best returns in sterling terms came from the Japanese portfolio, which was up by nearly 10%, while the UK portfolio was unsurprisingly the laggard. Helped by our international holdings, the NAV rose and beat the benchmark in the month. We were helped by strong stock selection in the US and by the underweight overall exposure to sterling.

    Some of the better performers in the US included telecoms business Zayo Group and construction materials supplier Martin Marietta Materials, both of which were lifted by broker upgrades while payments processing business Total Systems Services delivered good results. On the downside, shares in golf and country club business Clubcorp fell, as the company announced a revised capital allocation strategy, while Carrizo Oil and Gas dropped as the oil price came under pressure late in the month.

    In both the UK and Europe, performance was behind the local small cap indices as a number of our holdings announced disappointing trading news. The largest hit in the UK came from Laird, where the company failed to secure the anticipated level of revenue and margin from its largest customer in the mobile handset market. We also suffered from the profit warning released by aerospace and industrial products supplier Senior. The company’s profits have been impacted by demand and pricing issues on some of the newer aerospace platforms that it serves and by ongoing weak demand in the truck market. There was better news from Hotel Chocolat, a recent IPO, which reported encouraging maiden results. In addition, our decision to buy North Sea development company Ithaca Energy in September was rewarded by a strong bounce in the share price. We decided to take profits here late in October after the share price rise.

    European performance has been weaker over recent months, and this continued into October. Updates from two Scandinavian based companies - building materials supplier Inwido and engineer Indutrade, disappointed the market, sausage skin company Viscofan also announced weak figures, while shares in dairy and nutritional products supplier Glanbia were down ahead of its third quarter update. It was not all bad news however, and a number of our financial stocks did well, helped by firmer equity markets and rising bond yields. Aareal Bank, Sparebank, Azimut and Storebrand were the most notable movers.

    Performance on the Japanese and Rest of World portfolios of collective funds was positive. In Japan, Eastspring’s smaller companies fund was again strong, while our holding in the Scottish Oriental Smaller Companies fund targeting Asian small caps, benefited from a narrowing of its discount.

    As at 31 October 2016

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     Global Smaller Companies - performance chart

     Source: Lipper and F&C. Basis: share price, 31.10.2016

    Performance (%) as at 31.10.2016

    Cumulative performance  1 month Year to date 1 Year 3 Years 5 Years
    NAV (diluted) 2.4 19.4 24.2 44.4 124.7
     Share price 1.4 18.5 22.2 43.8 133.7
     Benchmark 1.9 22.3 25.3 39.8 107.0
    Discrete annual performance  2016 2015 2014 2013 2012
     NAV (diluted) 24.1 9.0 6.7 34.5 15.7
    Share price 22.2 10.6 6.4 37.9 17.9
     Benchmark 25.3 6.7 4.6 32.3 12.0

     

    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

    1177.00p-5.00p

    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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