• Global Smallers Companies -NEW BANNER
  • The Trust seeks to exploit the high investment potential of smaller companies listed on global equity markets. Many smaller companies are not widely researched, opening up the potential for our detailed fundamental analysis to identify valuation anomalies. 

    The greater inherent ability of smaller enterprises to grow faster than more mature, larger companies, is also positive for the long term outlook.

  • How to Invest

    Open an F&C Savings Plan

    Call: 0800 136 420

    Invest online now

  • Share price

    1292.50p19.50p

    25 April 2017

Key facts

  • NEW - Fund Manager update video


    Global Smaller Companies - Foundation video

     
  • Key points

    This trust remains the only investment trust to offer investor access to a broadly spread global smaller companies portfolio. The portfolio consists of individual smaller company investments within the US, UK and European markets, and fund holdings targeting smaller companies in Japan, Asia, Latin America and other smaller territories. The dividend of the Company has risen for 46 years in a row, benefiting from a growing income stream from the investment portfolio.

    Past performance is not a guide to future performance.

  • Fund facts
    Investment manager F&C Investment Business Limited
    Benchmark 30% Numis UK Smaller Companies (excluding investment companies) Index / 70% MSCI all country World ex UK Small Cap Index
    AIC sector Global Growth
    Launch date 1889
    Total assets £761.9 million (as at 31.03.2017)
    Currency Sterling
    ISIN GB0000175058
    SEDOL 0017505
    Key dates
    Annual general meeting July
    Year end 30 April
    Dividends paid August and January
    Results announced  June (final)
    December (half yearly)
  • Fund manager commentary

    Equity markets delivered mixed performances in March. Sentiment in the US was undermined by the failure of the Trump administration to get its healthcare reform bill passed, and small cap shares which had been very strong post the election, underperformed. There was also some weakness in the Japanese equity market with the strength of the yen impacting upon internationally orientated stocks, but small caps in most other markets continued to rise. Economic data releases continue to indicate that the Continental European economy is on an improving trend and small cap shares here were lifted by a better trend to corporate earnings revisions. Asian markets were also mainly up, with fears around US trade policy dissipating. The triggering of Article 50 by the UK government to formalise the exit from the EU failed to impact the markets significantly, and sterling was actually up a little over the month versus the US dollar. The Net Asset Value was up by just less than the benchmark, although the share price beat both, moving to a slightly wider premium.

    Stock selection was positive in the UK during March with a number of our holdings responding well to corporate newsflow. TLA Worldwide rose as it announced that it would be organising additional sporting events in the coming year, while in the construction area, both Polypipe and Tyman Group were up on the back of solid full year results. Treatt, the flavour and fragrance ingredients supplier raised its earnings guidance again on the back of positive sales momentum, while CLS Holdings year end NAV came in well above earlier expectations. Less positively, Go Ahead Group fell back after a weak trading statement, with the company suffering from the ongoing woes in relation to its rail operations.

    The US portfolio underperformed the Russell 2000 index, with car parts supplier LKQ falling as the company announced the upcoming retirement of its CEO. Carrizo Oil and Gas was weak as the oil price fell back, while insurer Alleghany dropped as investors took some profits following the strong start to 2016 for the shares. More encouragingly, recent purchase Murphy USA, which owns and operates petrol stations and convenience stores, benefited from political resistance to proposed changes in biofuel regulations.

    In Europe, our performance was close to the local small cap index return. We were helped by a strong rise in the shares of our largest European holding, flooring business Forbo, which was driven by good results, a better than expected dividend pay-out and confirmation that the company would be doing a share buyback. Cyclical stocks Interpump and SAF Holland rose, as sentiment towards general economic conditions remained supportive. A number of our Italian based holdings benefited from the introduction of tax-exempt savings plans in the country. Weaker performers included Norwegian based Sparebank which gave up some recent gains and Irish financials stock IFG Group, where increased costs on the platform side of the business and lower interest income is serving to hold back profitability.

    On the funds side, our Japanese portfolio outperformed with the Aberdeen managed small cap fund holding up better than the weak local market. Of our Asian facing funds, the best performance came from the Scottish Oriental Smaller Companies Trust but gains were fairly evenly spread across our other holdings.

    During the month, we put more money into the European and Japanese markets, taking some cash out of US stocks. Earnings momentum, as mentioned above, appears to be improving in Europe, although there are still risks on the political front with the imminent French elections. Japanese earnings data has also been more encouraging of late, and valuations look less stretched overall compared to those on the US market.

    As at 31 March 2017

  • The value of shares and the income from them is not guaranteed and can fall as well as rise due to stock market movements. Past performance is not a guide to future performance. When you sell your shares, you might get back less than you originally invested. If markets fall, gearing can magnify the negative impact on performance. Changes in rates of exchange may have an adverse effect on the value, price or income of investments. Emerging Markets, Unquoted Companies and Smaller companies carry a higher degree of risk and their value can be more sensitive to market movement; their shares may be less liquid and performance may be more volatile. The fund may invest in hedge funds or private equity funds which are not normally available to individual investors, exposing the fund to the performance, liquidity and valuation issues of these funds. Such funds typically have high minimum investment levels and may restrict or suspend redemptions or repayment to investors. The asset value of these shares and its prospects may be more difficult to assess.
  • Share price

    1292.50p19.50p

    25 April 2017

  • 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.

Information in this section of the Website is directed solely at persons who are located in the UK and can be categorised as retail clients. Nothing on this website is, or is intended to be, an offer, advice, or an invitation, to buy or sell any investments. Please read our full terms and conditions before proceeding further with any investment product referred to on this website. This website is not suitable for everyone, and if you are at all unsure whether an investment product referenced on this website will meet your individual needs, please seek advice before proceeding further with such product.

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