Interim Management Statement

F&C Global Smaller Companies PLC
22 February 2008

Date:                21 February 2008

Contact:             Peter Ewins

                     F&C Management Limited
                     020 7628 8000

                     F&C Global Smaller Companies PLC
                     Interim Management Statement
                     for the quarter ended 31 January 2008



Objective



The objective of F&C Global Smaller Companies PLC is to secure a high total
return by investing in smaller companies worldwide.





Summary of Performance




Attributable to equity shareholders                              31 January 2008         31 October 2007       % Change

Share price                                                              349.00p                 445.75p          -21.7

Net asset value per share                                                409.09p                 491.35p          -16.7
(debenture at nominal value)

Net asset value per share                                                401.64p                 484.48p          -17.1
(debenture at market value)






Manager's Review



The three months under review have been difficult for smaller company shares on
a global basis, and the portfolio has underperformed over this period.



Net asset value (NAV) per share on a total return basis fell by 16.5% over the
period compared to a fall of 13.6% in the benchmark. For the nine months ended
31 January 2008 the NAV fell by 19.3% compared to a fall of 15.0% in the
benchmark.



Underperformance has mainly been driven by negative stock selection, notably in
the UK and European portfolios over the period. Some of the more cyclical stocks
held in these markets have been de-rated due to concerns about an overall
economic slowdown stemming from the weakness in the US economy. The portfolios
in Asia and Japan did however outperform their local benchmarks, with
performance in Japan helped by the bias towards domestic focused stocks which
did better than export orientated ones as the yen rose.



Over the period, we reduced exposure to the UK, where we are now underweight
against the benchmark. The UK economic outlook for 2008 looks less favourable,
especially given the weakness in financial markets and the slowdown in the
housing market. The US weighting rose, though we remain underweight.
Encouragingly we are now seeing signs of an improvement in sentiment towards the
value orientated stocks that we favour in this market. We are now overweight in
Asia and expect conditions in the regional economy here to remain buoyant
despite weakness elsewhere. The portfolio is also overweight in Europe and
Japan.



Effective gearing rose to 3.6% from 1.6% at 31 October 2007. Lower market
valuations have increased the attractiveness of employing gearing.



The discount has been volatile and ended the period at 12.7% (based on NAV ex
income with the debenture at market value). The Company has actively continued
to buy in shares, and during the three month period 710,887 shares were bought
in and cancelled at a cost of £2,702,000. The discount has subsequently narrowed
to 8.4% at 20 February 2008.



The Company paid an interim dividend of 1.58p per share on 30 January 2008 to
shareholders on the register at 4 January 2008.





Peter Ewins

February 2008




Ten largest equity holdings at 31 January 2008




31 January 2008    31 October                                                                  % of total
                      2007                                                                    investments
                                Company
                                Country

       1              (1)       Aveva Group                                                           1.6
                                United Kingdom

       2              (2)       Allianz Little Dragons                                                1.4
                                Asia Pacific ex Japan

       3              (3)       Axa Rosenberg Equity Alpha                                            1.3
                                Asia Pacific ex Japan

       4              (5)       Utilico Emerging Markets                                              1.1
                                United Kingdom

       5              (11)      Aberdeen GL Asia Small Cap                                            1.1
                                Asia Pacific ex Japan

       6              (12)      City of London Investment Group                                       1.1
                                United Kingdom

       7              (10)      Scottish Oriental Smaller Companies                                   1.1
                                Asia Pacific ex Japan

       8              (9)       Australian New Horizons Fund                                          1.0
                                Australia

       9              (4)       Omega International                                                   1.0
                                United Kingdom

       10             (13)      Connaught                                                             0.9
                                United Kingdom





Geographical distribution of the Investment portfolio at 31 January 2008


                                                    31 January 2008              31 October 2007
                                             % of total investments       % of total investments
UK                                                             39.0                         42.5
North America                                                  30.3                         28.5
Continental Europe                                             13.9                         12.8
Japan                                                          11.0                         10.4
Asia Pacific ex Japan                                           5.8                          5.8





Further Information

Further information, including monthly factsheets and daily net asset values
published since the end of the quarter, can be found on the www.fandc.com
website.



The Board is not aware of any significant events or transactions that have
occurred between 31 January 2008 and the date of publication of this statement
which would have a material impact on the financial position of the Company.





By order of the Board

F&C Management Limited

Secretary

21 February 2008


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