Peter Ewins, manager of F&C Global Smaller Companies, boasts his team can provide a one-stop-shop for global small caps. “I don’t make decisions across the entire portfolio, just the British part of it, which makes up about 30%. I am the lead manager of the fund, but there are people who deal with America and others on Europe,” Ewins told Fund Strategy.
The strategy appears to be working: the fund has returned 39% over five years, and 10.5% over one year, comfortably outperforming its benchmark. Direct investments in equities make up 80% of the fund (Ewins also invests in other funds), with top holdings including Rex Energy, consumer group Car-Mart, Atlantic Tele-Network and US food group Flowers. Of the fund, 40% is invested in the US, 30% in Britain and 8% in Japan.
F&C Global Smaller Companies has a competitive total expense ratio of 0.84%. This, says Investors Chronicle, is due to its fund investments being mostly in low-cost investment trusts and exchange-traded funds. It also trades at a tight 1%-2% discount to net asset value.
While aiming for growth, the fund has raised its dividend every year over the past 40 years. Its history goes all the way back to 1889, with manager Ewins’ tenure commencing in 2005. He told Investors Chronicle: “For now, we still believe that having a high exposure to the US remains justified on the basis that the economy there is likely to continue to head in the right direction and due to the large range of small-cap investment opportunities.”
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F&C Global Smaller Companies Fund
| Name of holding | % of assets |
|---|---|
| iShare MSCI Japan Smaller Companies | 4.1% |
| Aberdeen Global Asian Small Cap | 2.3% |
| Allianz Little Dragons | 2.3% |
| Utilico Emerging Markets | 2.2% |
| Scottish Oriental Smaller Companies | 2.2% |
| M&G Japan Smaller Companies | 1.8% |
| AXA Framlington Japan Smaller Companies | 1.8% |
| Australian New Horizons | 1.3% |
| Sanderson Farm | 1.2% |
| Airgas | 1.1% |