Interim Management Statement

RNS Number : 2343X

F&C Global Smaller Companies PLC

11 August 2009

 



Date:    11 August 2009

Contact:    Peter Ewins    

                     F&C Management Limited    

                     020 7628 8000    

F&C Global Smaller Companies PLC

Interim Management Statement

for the quarter ended 31 July 2009

Objective

F&C Global Smaller Companies PLC invests in smaller companies worldwide in order to secure a high total return.

Summary of results

Capital return

Attributable to equity shareholders	31 July 2009	30 April 2009	% Change
Share price	349.00p	325.00p	+7.4
Net asset value per share (debenture at nominal value)	388.41p	360.23p	+7.8
Net asset value per share (debenture at market value)	380.62p	351.06p	+8.4

Manager's review

Equity markets rallied significantly in July, after a relatively flat start to the period under review. Investors responded positively to data suggesting that the worst of the global economic downturn had passed and to signs that the economic stimulus packages and monetary policy measures adopted have started to feed through. Corporate results announcements have tended to exceed expectations with the effects of cost-cutting evident.

The net asset value ('NAV') per share total return (with the debenture at nominal value) for the three months was 8.8%, against the total return of 7.9% for the Company's Benchmark (40% Hoare Govett UK Smaller Companies Index and 60% MSCI World ex UK Small Cap Index). With the share price gaining 7.4%, the discount increased to 8.0% (based on NAV per share ex-income with the debenture at market value) from 6.3% at the end of April.

Smaller company shares generally performed well in most global markets and they were particularly strong in Asia, aided by signs that the Chinese economy is picking up. The UK small cap market also performed strongly in the period, and did better than the majority of other markets in sterling terms, as the pound strengthened.

Outperformance against the Benchmark was helped by good stock selection in the US and Europe, combined with the benefit of being overweight in Asia. Gearing had a modest beneficial effect in the period. Net gearing ended the period at 3.3%, slightly lower than the 4.1% level at the end of April. 

Over the period, we increased exposure to the UK to closer to a neutral level versus the Benchmark, and reduced the exposure to the US. While the UK economy remains in recession, rising financial markets and a somewhat more stable domestic banking environment are helping sentiment towards UK equities and sterling.

A total of 125,000 of the Company's shares (0.3% of share capital) were bought back for cancellation over the quarter at a cost of £414,000.

Ten largest equity holdings at 31 July 2009 

31 July 2009	30 April 2009	Company Country	% of total investments
1	1	iShares MSCI Japanese Small Cap Exchange Traded Fund Japan	3.7
2	2	Axa Rosenberg Japan Small Cap Alpha Fund Japan	2.7
3	3	The Scottish Oriental Smaller Companies Trust Asia Pacific ex Japan	2.1
4	4	Aberdeen Global-Asian Smaller Companies Fund Asia Pacific ex Japan	2.1
5	5	Allianz GIS RCM Little Dragons Fund Asia Pacific ex Japan	1.9
6	8	Axa Rosenberg Pacific ex Japan Small Cap Alpha Fund Asia Pacific ex Japan	1.1
7	6	Utilico Emerging Markets Asia Pacific ex Japan	1.1
8	7	Pace United Kingdom	1.0
9	32	Amedisys United States	1.0
10	16	Australian New Horizons Fund Australia	1.0

Geographical distribution of the investment portfolio at 31 July 2009

	31 July 2009 % of total investments	30 April 2009 % of total investments
North America	40.2	43.9
United Kingdom	35.2	34.1
Continental Europe	8.9	7.1
Japan	6.4	6.3
Rest of World	9.3	8.6

  Further information

Further information, including monthly factsheets and NAV's published since the end of the quarter, can be found on the www.fandcglobalsmallers.com website.

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

This interim management statement has been prepared solely to provide information to meet the requirements of the UK Listing Authority's Disclosure and Transparency Rules.

By order of the Board

F&C Management Limited, Secretary

Exchange House, Primrose Street, London EC2A 2NY

11 August 2009

 

END

 

 

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