Negative stock selection hits F&C Smaller Cos

22nd Feb 2010 16:00

F&C Global Smaller Companies saw its net asset value per share (NAV) rise 4.5% in the three months to the end of January, with investments in overseas companies generally outperforming the investment trust's UK investments.The NAV at the end of January stood at 443.96p, compared to 424.67p at the end of October 2009. The NAV total return of 4.9%, however, trailed the performance of the company's benchmark index, which is a 40/60 blend of the Hoare Govett UK Smaller Companies Index and the MSCI World excluding UK index. The investment manager said the underperformance was due to negative stock selection.In the nine months to 31 January the NAV total return was 24.8%, against a return of 26.0% for the benchmark index.Although company results are broadly on an improving trend, the investment manager has become 'somewhat more cautious' about the short term prospects for equity basis, and as a result of this the trust moved over the reporting period to a net cash position of 0.5% from a 1.8% geared position at the end of October 2009.