Portfolio Update

F&C U.S. Smaller Companies PLC
04 January 2005


The Stock Exchange
RNS
Old Broad Street
London
EC2N 1HP
                                                                  4 January 2005

Dear Sir

F&C US Smaller Companies PLC

The top ten holdings and all holdings over 5% of gross assets as at 31 December
2004 were:


Stock                                                          % of gross assets

Bankunited Financial                                                    2.6
Freds                                                                   2.4
Republic Services                                                       2.4
Cousins Properties                                                      2.1
CapitalSource                                                           2.1
Community Health Services                                               2.1
Kirby                                                                   2.0
Pride International                                                     1.9
Lithia Motors                                                           1.9
SCP Pool                                                                1.9



                      This information is provided by RNS
            The company news service from the London Stock Exchange