Interim Management Statement

RNS Number : 2094G

F&C U.S. Smaller Companies PLC

20 October 2008

 



F&C US Smaller Companies PLC

Interim Management Statement

For the three month period to 30 September 2008

Investment Objective

To achieve long-term capital growth by investing in a diversified portfolio of quoted US smaller and medium sized companies.

Performance summary

	30 September  2008	30 June  2008	Movement
Net assets	£63.76m	£55.98m	13.9%
Net asset value (NAV) per share	306.93p	269.32p	14.0%
Share price	266.00p	245.5p	8.4%
Russell 2000 Index    (sterling adjusted)	381.26	346.54	10.0%
Discount to NAV per share	13.3%	8.8%

Three month review

The NAV per share rose 14.0% in the three months to 30 September 2008.  The performance of the NAV per share was above that of the benchmark, the Russell 2000 Index (sterling adjusted), which rose by 10.0%.  The increases in the NAV and the benchmark index were helped by a rise in the dollar against sterling of 11.7%.

Performance was helped by a rally in our largest holding Crawford & Company, a claims adjuster, and good performance by housing related stocks, such as Beacon Roofing Supply. In addition, two portfolio companies received bids: Longs Drug Stores and Intervoice.

We sold five holdings, including four consumer discretionary stocks. We bought four new positions, two of which were in the producer durables sector. One is a manufacturer of road building equipment and the other produces precision components for aerospace and defence.

The Company is not currently geared.

Since 30 June 2008, 40,000 shares have been bought back for cancellation at a cost of £108,000 and an average discount of 13.6%.

Despite continuing volatility arising from the economic turmoil, the Board is not aware of any significant events or transactions which have occurred between 30 September 2008 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Ten Largest Holdings

30 Sep  2008	30 June  2008	Company Description	Percentage of  total investments
1	1	Crawford & Company Insurance and legal claims services	4.9
2	2	America's Car-Mart  Used car sales and finance	2.5
3	3	Cousins Properties   Real estate investment trust	2.4
4	4	Universal Truckload Services Non-asset based transportation services	2.1
5	8	Beacon Roofing Supply Roofing materials distribution	2.1
6	11	Alleghany  Insurance underwriter	2.0
7	5	Premiere Global Services  Outsourced communication services	2.0
8	22	Aaron Rents Rent to buy retailer	2.0
9	6	Amedisys Home nursing	2.0
10	30	Brown & Brown Insurance broker	2.0

Industrial Classification

	30 September 2008 Percentage of total investments	30 June  2008 Percentage of  total investments
Financial Services	25.0	20.3
Consumer Discretionary	17.2	20.4
Producer Durables	16.4	14.0
Materials & Processing	8.5	9.3
Technology	8.2	9.2
Autos & Transportation	6.3	6.6
Healthcare	6.0	6.5
Utilities	4.7	3.9
Other Energy	4.2	5.0
Consumer Staples	3.5	4.8

  Outlook

Economic growth has slowed to a halt as confidence has faded in the face of a deepening financial crisis. Effective action to provide additional capital for banks and reduce interest rates will help restore confidence and once this happens, economic growth in the United States should reaccelerate.

Daily and Key Information

Further information regarding the Company, including monthly factsheets and daily NAVs published since the end of the period are available on the internet at www.fandcussmallers.com

By order of the Board

F&C Management Limited, Secretary

20 October 2008

 

END

 

 

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