FCS.L Share News (FCS)

LONDON (Alliance News) - F&C Global Smaller Companies PLC Thursday said its net asset value total return on a diluted basis for the year ended April 30 was 16.2% and the share price total return 17.6%, ahead of the benchmark's 14.8% rise.

The benchmark is derived from the returns of the MSCI All Country World ex UK Small Cap Index and Numis UK Smaller Companies (excluding investment companies) Index in a 70%/30% proportion.

"It is clear that quantitative easing and ultra-low interest rates have lifted financial markets in the last few years and the risk is that this could be the year when the rates cycle turns in the US and potentially elsewhere including the UK. This could cause renewed volatility for both bonds and shares," Chairman Anthony Townsend said in a statement.

"However, most commentators expect only a slow and modest move up in rates given the ongoing low inflation on a global basis, so there may be less impact on equities than some fear. The board takes encouragement from the number of new holdings recently identified and remains of the belief that it will still be possible to add value through a successful approach to stock-picking in the small cap universe in the future," he added.

Shares in the trust were up 0.1% at 1,000.00 pence on Thursday afternoon.

By Samuel Agini; samagini@alliancenews.com; @samuelagini

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