Interim Management Statement

RNS Number : 2908F

F&C U.S. Smaller Companies PLC

20 April 2011

 



F&C US Smaller Companies PLC

Interim Management Statement

For the three month period ended 31 March 2011

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 March  2011	31 December  2010	Movement
Net assets	£96.36m	£91.04m	5.8%
Net asset value (NAV) per share	465.32p	439.66p	5.8%
Share price	454.25p	425.50p	6.8%
Russell 2000 Index      (sterling adjusted)	526.25	500.53	5.1%
Discount to NAV per share	2.4%	3.3%

Three month review

The NAV per share rose 5.8% in the three months to 31 March 2011.  This compares to a rise of 5.1% in the benchmark, the Russell 2000 Index (sterling adjusted) during the same period. Shareholders suffered from a 2.3% fall in the US dollar compared to sterling.

Performance was helped by an overweight in energy as well as a number of stocks including Global Industries, Helix Energy Solutions Group and Harvard Bioscience but hindered by weakness in Horizon Lines and ICF International.

We bought four new holdings, Airgas (bottled gas distribution), FTI Consulting, Pool (swimming pool supplies distribution) and Rex Energy (oil and gas exploration and production) and sold three, namely Alpha Natural Resources, AMERIGROUP and Curtiss Wright. The first two had performed very strongly; the last was sold because of its exposure to commercial nuclear power.

The Company is not currently geared.

There have been no share buybacks during the period.

The Board is not aware of any significant events or transactions which have occurred between 31 March 2011 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  2011	31 December 2010	Company Description	Percentage of  total investments
1	36	Sanderson Farms Chicken producer	2.4
2	14	Mohawk Industries Manufacturer of floor coverings.	2.2
3	19	CRA International Management consultant specialising in litigation.	2.1
4	24	FLIR Systems Manufacturer of infra red vision systems.	2.1
5	-	Airgas Bottled gas distributor	2.0
6	4	Amedisys Provider of home nursing services.	2.0
7	20	DeVry Provider of post-secondary education.	2.0
8	1	American Railcar Industries Manufacturer of railcars.	2.0
9	46	Flowers Foods Baked goods producer	2.0
10	12	Career Education Provider of post-secondary education.	2.0

Industrial Classification

	31 March 2011 Percentage of total investments	31 December 2010 Percentage of total investments
Producer Durables	31.0	32.2
Financial Services	14.0	13.5
Consumer Discretionary	11.1	9.0
Other Energy	10.9	13.4
Materials & Processing	7.8	7.0
Technology	7.5	7.2
Consumer Staples	5.4	4.5
Healthcare	5.3	6.1
Utilities	5.2	5.2
Net current assets	1.8	1.9

Outlook

The US economy is performing well and employment is beginning to improve. However, there is continuing concern about the level of government and public debt. The low level of the dollar will continue to help US exports. The Fed is likely to have to keep interest rates low for the foreseeable future given the inability of many small banks to fully recognize credit losses. The main risk appears to be from a spike in oil prices as a result of MENA unrest. 

.

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 2011

 

END

 

 

IMSLLFEVSAIIFIL