Interim Management Statement

RNS Number : 8473Q

F&C U.S. Smaller Companies PLC

20 April 2009

 



F&C US Smaller Companies PLC

Interim Management Statement

For the three month period to 31 March 2009

Investment Objective

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

Performance summary

	31 March  2009	31 December  2008	Movement
Net assets	£52.03m	£60.60m	-14.1%
Net asset value (NAV) per share	250.95p	292.21p	-14.1%
Share price	219.00p	248.00p	-11.7%
Russell 2000 Index    (sterling adjusted)	294.94	347.38	-15.1%
Discount to NAV per share	12.7%	15.1%

Three month review

The NAV per share fell by 14.1% in the three months to 31 March 2009.  The performance of the NAV per share was better than that of the benchmark, the Russell 2000 Index (sterling adjusted), which fell by 15.1%.  There was little change in the exchange rate in the period, the dollar rose by just 0.3% against sterling.

Performance was helped by contributions from individual stocks such as Texas-based retailer, Conn's and cellular tower owner, SBA Communications, as well as the portfolio's overweight position in energy. Against this, performance was hurt by profit taking in our largest holding Crawford & Company, a claims adjuster.

We bought eleven new holdings, including four energy-related and four metals-related, two areas of the market which we believe were overly depressed. Other acquisitions were in manufacturing and transportation, including a return to the portfolio of inland tank barge operator, Kirby, which had been a long term holding until last year. There were four sales, including Centennial Communications, which had previously agreed a bid. We took profits in many of the biggest contributors to performance in the quarter.

The Company is not currently geared.

Since 31 December 2008, 5,000 shares have been bought back for cancellation at a cost of £12,200 and an average discount of 15.3%.

The Board is not aware of any significant events or transactions which have occurred between 31 March 2009 and the date of publication of this statement which would have a material impact on the financial position of the Company.

Ten Largest Holdings

31 March  2009	31 Dec  2008	Company Description	Percentage of  total investments
1	1	Crawford & Company Insurance and legal claims services	2.2
2	29	Universal Truckload Services Non-asset based transportation services	1.9
3	31	Mohawk Industries Flooring manufacturer	1.8
4	-	CommScope Cabling manufacturer	1.8
5	14	Baldor Electric Manufacturer of electric motors	1.8
6	-	GATX Rail car lessor	1.7
7	21	SRA International Government IT services	1.7
8	-	Kirby Inland tank barge operator	1.6
9	20	Premier Global Services Outsourced communications provider	1.6
10	45	Bottomline Technologies Payment automation software	1.6

Industrial Classification

	31 March 2009 Percentage of total investments	31 December  2008 Percentage of  total investments
Financial Services	17.6	20.9
Producer Durables	16.4	19.0
Consumer Discretionary	14.4	17.2
Materials & Processing	14.3	9.5
Other Energy	14.0	7.4
Healthcare	7.8	7.5
Autos & Transportation	6.4	5.4
Technology	6.0	6.1
Utilities	3.1	4.0
Consumer Staples	-	1.4
Other	-	1.6

  Outlook

Whilst the US economy remains in a deep recession, some encouraging signs are beginning to appear. 

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 April 2009

 

END

 

 

IMSILFFSSIIIFIA