Profile: F&C Global Smaller Companies (FCS)

Managed by Peter Ewins since August 2005, the trust draws on other experience from around parent company BMO Global Asset Management (formerly F&C). Sam Cosh manages the European portfolio, for example, while Nish Patel manages the US portfolio. Mr Ewins manages the overall shape and allocation of the trust.

[The trust invests in in single companies and other investment funds. The largest weights in the portfolio are all other smaller company investment trusts – Eastspring Investments Japanese Smaller Companies, for example, or Manulife Global Asian Smaller Companies. For the most part, the trust sticks to mainstream markets, such as the US (at 42% of the portfolio), the UK (26%) and Continental Europe (11%).

Mr Ewins says: “Smaller companies generally offer stronger growth potential and are often run by dynamic individuals. Equally, they are not well researched. We invest in less well-known companies much lower down the size bracket. Large companies have lots of people looking at them and it’s more difficult to find bargains. We’re looking for the best companies around the world that can deliver growth in new and emerging segments of the economy.”

Unusually for a smaller companies trust, the trust has also paid a consistent and growing dividend. Although relatively low in absolute terms at just under 1%, the dividend has increased for 46 years in a row.