F&C Global Smaller Companies Underperforms Benchmark

LONDON (Alliance News) - F&C Global Smaller Companies PLC said Wednesday that it had underperformed its benchmark in the quarter to end July.

The trust saw a total return on net asset value per share of 0.3%, lagging its benchmark that saw a total return in sterling terms of 0.5%. Its benchmark is a blended index of the returns of 30% Numis UK Smaller Companies, excluding investment companies Index, and 70% MSCI All Country World excluding UK Small Cap Index.

The company said that stock selection was generally positive in the three months, notably in the UK and Japan. The worst returns came from its European small cap portfolio, it said.

It added to its fund holdings targeting Japanese and Asian small cap stocks to increase its exposure to those markets. It also reduced its European and UK weightings.

"The relative valuation argument towards Asian and emerging markets in general looks more appealing now compared to some of the main developed markets and this is leading to more interest from global investors once again after a long period of underperformance," the trust said in a statement.

Shares in F&C Global Smaller Companies were trading down 0.3% at 870.27 pence Wednesday afternoon.

By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews

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