Interim Management Statement

RNS Number : 3375W

F&C U.S. Smaller Companies PLC

17 November 2010

 



F&C US Smaller Companies PLC

Interim Management Statement

For the four month period ended 31 October 2010

Investment Objective

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

Performance summary

	31 October  2010	30 June  2010	Movement
Net assets	£80.74m	£77.30m	4.4%
Net asset value (NAV) per share	389.89p	373.29p	4.4%
Share price	375.00p	354.50p	5.8%
Russell 2000 Index      (sterling adjusted)	439.92	407.39	8.0%
Discount to NAV per share	3.8%	5.0%

Four month review

The NAV per share rose 4.4% in the four months to 31 October 2010.  This compares to a rise of 8.0% in the benchmark, the Russell 2000 Index (sterling adjusted) during the same period.

Performance was held back by the impact on certain stocks of regulatory pressures and the lagged effects of the recession; examples were Amedisys, United Community Banks and Career Education. Technology stocks did well and we are intentionally underweight. The best contributions came from Intrepid Potash, Brush Engineered Materials and GT Solar International.

We bought two new holdings, DeVry (education) and Willbros Group (utility services) and sold three, GT Solar International, McDermott International and Babcock & Wilcox.

The Company is not currently geared.

There have been no share buybacks during the period.

Ten Largest Holdings

31 Oct  2010	30 June 2010	Company Description	Percentage of  total investments
1	49	Intrepid Potash Fertiliser producer	2.2
2	19	Mohawk Industries Floor coverings manufacturer	2.1
3	30	Premiere Global Services Conference calling services	2.1
4	4	CapitalSource Lender to small and medium-sized firms	2.1
5	-	DeVry Education	2.1
6	17	Brush Engineered Materials Specialised materials manufacturer	2.0
7	34	Helix Energy Solutions Group Offshore services contractor	2.0
8	39	Prestige Brands Consumer brands	2.0
9	11	Orbital Sciences Supplier of small space systems	2.0
10	13	ACI Worldwide Software for electronic funds transfer	2.0

Industrial Classification

	31 October 2010 Percentage of total investments	30 June 2010 Percentage of total investments
Producer Durables	31.2	34.7
Financial Services	14.2	16.4
Energy	12.5	11.8
Consumer Discretionary	8.8	6.3
Materials & Processing	7.7	6.5
Technology	7.5	6.9
Healthcare	6.8	6.9
Utilities	5.2	4.5
Consumer Staples	3.8	5.0
Net current assets	2.3	1.0

Outlook

Earlier market concerns about a double dip look overdone now, given signs of continued economic growth and the Fed's further quantitative easing programme. The results of the US mid term elections may result in greater cooperation in Washington.

The Board is not aware of any significant events or transactions which have occurred between 31 October 2010 and the date of publication of this statement which would have a material impact on the financial position of the Company.

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

17 November 2010

 

END

 

 

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