Interim Management Statement

RNS Number : 0422D

F&C U.S. Smaller Companies PLC

23 April 2013

 



F&C US Smaller Companies PLC

Interim Management Statement

For the three months ended 31 March 2013

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  2013	31 December  2012	Movement
Net asset value ("NAV") per      share	623.87p	510.57p	22.2%
Russell 2000 Index      (sterling adjusted)	626.65	522.52	19.9%
Share price	655.00p	524.50p	24.9%
Net assets	£149.01m	£113.54m	31.2%
Premium to NAV per share	5.0%	2.7%

Three month review

The NAV per share rose by 22.2% in the three months to 31 March 2013.  This compares to a gain of 19.9% in the benchmark, the Russell 2000 Index (sterling adjusted), during the same period.

In the three month period, the market's advance was helped by signs of improved US economic performance.

The best performing stocks that had the most impact on the performance were the provider of contract services to the oil and gas industry, Willbros Group, which is in the process of turning around; WMS Industries (gaming equipment), which received a bid from Scientific Games; and Allscripts Healthcare Solutions (clinical software) where new management is expected to do well. Disappointing performance came from Allied Nevada Gold (mining) which fell on disappointing production and Spectrum Pharmaceuticals which had a sales warning.

New investments included Munro Muffler Brake (automotive repair) and sales included  Quanta Services (utility contractor), SBA Communications (mobile phone towers) and WMS Industries.

The Company is not currently geared.

There have been no share buybacks during the period but the Company issued 1,647,000 shares. Shares have been issued at an average premium of 1.5% to the published NAV on the day of issue.

Ten Largest Holdings

31 Mar  2013	31 Dec 2012	Company Description	Percentage of  total investments
1	19	Alere Diagnostic and patient monitoring equipment.	2.5
2	8	Rex Energy Oil and gas exploration and production.	2.5
3	22	Atlantic Tele-Network Telecommunication holding company.	2.4
4	12	The Andersons Corn-based agribusiness.	2.4
5	13	ViaSat Provider of satellite communications equipment and services.	2.3
6	6	America's Car-Mart Used car retailer.	2.3
7	54	Allscripts Healthcare Solutions Provider of clinical software.	2.3
8	7	Premiere Global Services Outsourced conference calling services.	2.2
9	3	Airgas Distributor of bottled gases.	2.2
10	9	Cardinal Financial Regional bank.	2.2

Industrial Classification

	31 March 2013 Percentage of total investments	31 December 2012 Percentage of total investments
Producer Durables	25.9	27.0
Financial Services	17.2	18.0
Consumer Discretionary	16.9	17.9
Healthcare	10.6	8.3
Technology	8.3	10.2
Consumer Staples	6.9	4.7
Materials & Processing	5.3	6.4
Utilities	4.6	4.2
Energy	4.3	3.3

Outlook

The most recent Institute of Supply Management's manufacturing report suggests that growth in the United States may be slowing again. The global economic backdrop remains a concern although more reflationary policies in Japan are encouraging.

The Board is not aware of any significant events or transactions which have occurred between 31 March 2013 and the date of publication of this statement which would have a material impact on the financial position of the Company.

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

23 April 2013

 

END

 

 

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